HomeMy WebLinkAboutR2004-024A RESOLUTION BY THE CITY OF DENTON, TEXAS, APPROVING THE
ISSUANCE OF BONDS BY THE COLORADO HEALTH FACILITIES AUTHORITY
ON BEHALF OF THE EVANGELICAL LUTHERAN GOOD SAMARITAN SOCIETY;
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton, Texas (the "City") is a duly organized and
validly existing municipal corporation under the laws and Constitution of the State of
Texas; and
WHEREAS, The Evangelical Lutheran Good Samaritan Society (the "Society"), a
North Dakota nonprofit corporation, owns and operates two long-term healthcare
facilities, including related senior housing facilities, within the boundaries of the City;
and
WHEREAS, the Society wishes to refund the remaining maturity of bonds issued
on its behalf in 1993 and 1994 by the Denton Health Facilities Development
Corporation, the original proceeds of which funded certain capital expenditures at the
Lake Forest Good Samaritan Village and the Denton Good Samaritan Village facilities
in the City, from the issuance of new Bonds (collectively the "Project"); and
WHEREAS, the Society has proposed that the moneys to fund the Project come
from the proceeds of Bonds to be issued by the Colorado Health Facilities Authority (the
Bonds") in a multi-state offering authorized by Colorado state law; and
WHEREAS, such multi-state offering is economically efficient and cost-saving
for the Society, thereby reducing operating costs for the Society and therefore tending to
reduce the necessity for increases of charges at its Denton facilities, thereby benefiting
the residents of the City; and
WHEREAS, the Bonds will be payable solely from revenues of the Society, and
the City will have no obligation whatsoever for payment of the Bonds; and
WHEREAS, as a prerequisite for the issuance of the Bonds by the Colorado
Health Facilities Authority, a public hearing was held within the City at the Denton City
Hall on May 17, 2004 after publication in the Denton Record-Chronicle of a Notice of
Public Hearing, and a report on the hearing has been presented to the City Council,
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set forth in the preamble of this Resolution are incorporated
by reference into the body of this Resolution as if fully set forth herein.
SECTION 2. The City of Denton hereby approves the issuance of the aforesaid Bonds by
the Colorado Health Facilities Authority in the maximum aggregate principal mount of
6,950,000 for The Evangelical Lutheran Good Samaritan Society, and further approves the
Project as described in the Notice relating to the public heating for the Bonds, and such approval
shall be solely for the purposes of Section 147(0 of the Internal Revenue Code of 1986 and the
City shall have no liabilities for the payment of the Bonds nor shall any of its assets be pledged to
payment of the Bonds.
SECTION 3. Further, it is recognized by the City that the instruments which authorize
the issuance of bonds, notes or obligations by the Colorado Health Facilities Authority will
specifically state that the City is not obligated to pay the principal of or interest on the bonds,
notes or obligations proposed to be issued by the Authority. Nothing in this resolution shall be
construed as an indication by the City that it will pay or provide for the payment of any
obligations of the said Authority whether theretofore or hereafter incurred; and in this
connection, attention is called to the Constitution of the State of Texas, wherein it is provided
that a City may incur no indebtedness without having made provisions for its payment, and the
City Council of the City hereby specifically refuses to set aside any present or future funds, assets
or money for the payment of any indebtedness or obligation ofthe Authority.
SECTION 4.
passage.
PASSED AND APPROVED this the /~¢~. day of ~
This Resolution shall become effective immediately, upon its
EULINE BROCK, MAYOR
2004.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:
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