HomeMy WebLinkAboutR2002-048S:\Our Documents\Resolutions\02\Good S amaritan Resolution.doc
RESOLUTION 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 mtmicipal corporation under the laws and Constitution off 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 has recently made material capital expenditures at its Lake
Forest facility within the City, which it desires to fund from the issuance of Bonds; and
WHEREAS, the Society has proposed that the moneys to fired 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 215 E. McKinney Street,
Denton, Texas 76201 on September 27, 2002 after publication in the Denton Record-Chronicle
of a Notice of Public Heating, 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 City of Denton hereby approves the issuance of the aforesaid Bonds
by the Colorado Health Facilities Authority in the maximum aggregate principal amount of
680,000 for The Evangelical Lutheran Good Samaritan Society, and further approves the
Project as described in the Notice relating to the public hearing 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 2: Further, it is recognized by the City that the instruments which authorize
that 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 obhgations 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 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 of the Authority.
SECTION 3. This Resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ ¢ day of ~ff~ , 2002.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
BY: ' "" ~ ~