The following ordinance, having been previously introduced on November 14, 2022, and a public hearing held thereon on the date hereof, was offered for final adoption by Judy Cotten and seconded by Greg Terry.
ORDINANCE
An ordinance authorizing the incurring of debt and issuance of a Taxable Water Revenue Bond, Series 2023, in an amount not to exceed $440,000, by the Village of Harrisonburg, State of Louisiana; and providing for other matters in connection therewith.
BE IT ORDAINED by the Mayor and Board of Aldermen of the Village of Harrisonburg, State of Louisiana, acting as the governing authority of the Village of Harrisonburg, State of Louisiana:
SECTION 1. Authorization and Sale of Bond. Pursuant to Section 1430 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and other constitutional and statutory authority (collectively, the “Act”), and subject to the approval of the State Bond Commission, the Village of Harrisonburg, State of Louisiana (the “Issuer”) is hereby authorized to incur debt for the purpose of paying a portion of the costs of constructing and acquiring improvements, extensions, renovations and replacements to the waterworks system of the Issuer (the “System”), including equipment, fixtures and accessories therefor, both personal and real, a work of public improvement for the Issuer, and paying costs of issuance thereof, and to represent said indebtedness, the Issuer shall issue its Taxable Water Revenue Bond, Series 2023, in an amount not exceeding Four Hundred Forty Thousand Dollars ($440,000) (the “Bond”). The Bond shall be issued in the form of a single fully registered bond, dated the date of delivery thereof, and numbered R-1. The Bond shall be non-interest bearing and shall mature not later than ten (10) years from date thereof. The principal of the Bond will be subject to forgiveness as provided in Section 3 below. The mayor may approve a different series designation if the Bond is delivered after the end of calendar year 2022.
Pursuant to the Act, the Issuer has determined to sell the Bond at a private sale without the necessity of publishing any notice of sale. Accordingly, the Bond is hereby sold to the Louisiana Department of Health Drinking Water Revolving Loan Fund (the "Department"). The purchase price of the Bond shall be paid to the Issuer by the Department in installments on an "as-needed" basis, and the date and amount of each installment of the purchase price shall be noted on the Bond and the obligation of the Issuer to repay the principal of the Bond shall only accrue to the extent of the purchase price of the Bond theretofore paid by the Department. SECTION 2. Form and Execution of Bond. The Bond shall be in substantially the form attached hereto as Exhibit A, and the Mayor and Clerk of the Issuer are authorized and directed on behalf of the Issuer to execute, seal and deliver the Bond to the Department.
SECTION 3. Security for Bond; Principal Forgiveness. As provided by the Act, the Bond will be secured by and payable, equally with the Issuer’s Taxable Water Revenue Bond, Series 2022, solely from the income and revenues derived or to be derived by the Issuer from the operation of the System, subject to the prior payment of the reasonable and necessary expenses of operating and maintaining the System and after making all payments required with respect to the Issuer’s Water Revenue Bonds, Series 2021. The Issuer shall budget and set aside from time to time as necessary sufficient net revenues of the System to pay the principal of the Bond when due.
However, it is understood that the terms of the purchase of the Bond by the Department provide that the Issuer's obligation to repay the principal of the Bond will be forgiven simultaneously with the payment by the Department of each installment of the purchase price of the Bond. Accordingly, it is anticipated that no payments of principal, interest or administrative fees to the Department will ever be due and payable on the Bond. Notwithstanding any law or contractual provision to the contrary, the forgiveness at any time of any or all of the principal of the Bond theretofore advanced by the Department shall in no way extinguish the Bond or the obligation thereof with respect to the yet-to-be advanced portion of the principal thereof.SECTION 4. Recital of Regularity. This Governing Authority, having investigated the regularity of the proceedings had in connection with the Bond, and having determined the same to be regular, the Bond shall contain the following recital authorized by and having the effect set forth in R.S. 39:507, to wit:
"It is certified that this indebtedness is authorized by and is issued in conformity with the requirements of the Constitution and statutes of Louisiana."SECTION 5. Loan Documents. The Commitment Agreement and the Loan and Pledge Agreement, in substantially the forms on file in the records of the Issuer, are hereby approved. The Mayor and the Clerk of the Issuer are authorized to execute and deliver the Commitment Agreement and the Loan and Pledge Agreement on behalf of the Issuer, with such changes as may be deemed necessary, upon the advice of bond counsel, in connection with the Bond.
SECTION 6. Authorization of Officers. The Mayor and Clerk of the Issuer are hereby further authorized and directed, for and on behalf of the Issuer, to accept, receive, execute, seal, attest and deliver all such additional documents, certificates and other instruments as are required in connection with the authorization, issuance, sale and delivery of the Bond and to take such further action as may be appropriate or required by law or advised by bond counsel in connection with the authorization, issuance, sale and delivery of the Bond.
SECTION 7. Publication; Peremption. A copy of this ordinance shall be published immediately after its adoption in one issue of the official journal of the Issuer, provided that the exhibit to this ordinance (the form of Bond) need not be published but will instead be available for public inspection at the office of the Governing Authority during regular business hours on weekdays.
For thirty (30) days after the date of such publication any person in interest may contest the legality of this ordinance and of any provision herein made for the security and payment of the Bond. After that time, no one shall have any cause of action to test the regularity, formality, legality, or effectiveness of this ordinance, and provisions thereof for any cause whatsoever. Thereafter, it shall be conclusively presumed that every legal requirement for the issuance of the Bond, has been complied with. No court shall have authority to inquire into any of these matters after the thirty days.SECTION 8. No Recourse on the Bond. No recourse shall be had for the payment of the Bond or for any claim based thereon or on this ordinance against any member of the Governing Authority or officer of the Issuer or any person executing the Bond.
SECTION 9. Effective Date. This ordinance shall take effect immediately.
This ordinance having been submitted to a vote; the vote thereon was as follows:
YEAS: 3
NAYS: 0
ABSENT: 0
ABSTAIN: 0
And the ordinance was declared adopted on this, the 9th day of January, 2023.
/s/ Patricia Hefner /s/ Michael Tubre___
Clerk Mayor
(Exhibits herein are on file with the Issuer and can be viewed during normal business hours.) 