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HomeMy WebLinkAboutO-1688ORDINANCE NO. AN ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY'S NOT TO EXCEED $11,935,000 PRINCIPAL AMOUNT OF UTILITIES REVENUE WARRANTS, SERIES 2020, DATED SEPTEMBER 30, 2020 BE IT ORDAINED by the City Council (herein called the "Council") of the City of Fairhope (herein called the "City"), in the State of Alabama, as follows: Section 1. Findings. After investigation duly made by it and based upon the information obtained fi^om such investigation, the Council hereby makes the following findings and declares the following statements to be true: (a) in order to achieve a savings in debt service payments, it is necessary and desirable to refund, on a current basis, the City's Utilities Revenue Warrants, Series 2011, dated October 13, 2011 (herein called the "2011 Warrants"), the proceeds of which were used to make improvements to its water works and sanitary sewer system (which system, together with the City's natural gas distribution system and its electric distribution system, are herein together called the "Systems") and to refund warrants issued for such purpose; and (b) to provide for the said refunding, to provide for a debt service reserve and to pay issuance expenses, it will be necessary that the Series 2020 Warrants be issued as authorized in this ordinance and pursuant to the applicable provisions contained in the Ninth Supplemental Indenture authorized in Section 6 of this ordinance. Section 2. Authorization of the Warrants. Pursuant to the applicable provisions of the constitution and laws of Alabama, including particularly Section 11-47-2, as amended, and for the purpose of providing funds for the purposes referred to in Section 1 of this ordinance, there are hereby authorized to be issued by the City not more than $11,935,000 aggregate principal amount of its Utilities Revenue Warrants, Series 2020 (herein called the "Warrants"), under the terms, conditions and provisions set out in the Ninth Supplemental Indenture (herein called the "Nin± Supplemental Indenture") authorized in Section 6 of this ordinance. All of the provisions thereof respecting the Warrants are hereby adopted as a part of this ordinance. Section 3. Source of Payment of the Warrants and Pledge Therefor. The obligation evidenced and ordered paid by the Warrants shall be a limited obligation of the City payable solely out of the revenues from the operation of the Systems as specified in the Trust Indenture hereinafter referred to, and shall not constitute a general obligation of the City or be subject to any charge on or against its general funds, its taxing powers, or its constitutional debt limit. None of the agreements, representations or warranties made or implied in this ordinance, or in the issuance of the Warrants, shall ever impose any personal or pecuniary liability or charge upon the City, whether before or after any breach by the City of any such agreement, representation or warranty, except with the moneys herein provided. Nothing contained in this section, however, shall relieve the City from the performance of the several covenants and representations on its part herein contained.