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RESOLUTION R-1415-86: A RESOLUTION OF THE NORMAN UTILITIES AUTHORITY (THE "AUTHORITY") AUTHORIZING THE AUTHORITY TO ISSUE ITS UTILITY SYSTEM REVENUE NOTE, SERIES 2015 (THE "NOTE") IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $17,600,000; WAIVING COMPETITIVE BIDDING AND AUTHORIZING THE NOTE TO BE SOLD ON A NEGOTIATED BASIS; APPROVING AND AUTHORIZING EXECUTION OF AN INDENTURE AUTHORIZING THE ISSUANCE AND SECURING THE PAYMENT OF THE NOTE; PROVIDING THAT THE ORGANIZATIONAL DOCUMENT CREATING THE AUTHORITY IS SUBJECT TO THE PROVISIONS OF THE INDENTURE; RATIFYING AND CONFIRMING A LEASE AGREEMENT BY AND BETWEEN THE AUTHORITY AND THE CITY OF NORMAN, OKLAHOMA (THE "CITY"), PERTAINING TO THE CITY'S WATER AND SEWER SYSTEMS; AUTHORIZING AND DIRECTING THE EXECUTION OF THE NOTE AND OTHER DOCUMENTS RELATING TO THE TRANSACTION, INCLUDING AN ESCROW DEPOSIT AGREEMENT AND A PARITY AGREEMENT; AND CONTAINING OTHER PROVISIONS RELATING THERETO.
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BACKGROUND: On November 18, 2003, the Trustees of the Norman Utilities Authority adopted Resolution 0304-51, approving its Revenue Refunding Bonds, Series 2003 (Wastewater Utility). On September 13, 2005, the Trustees of the Norman Utilities Authority adopted Resolution 0506-55, approving its Revenue Refunding Bonds, Series 2005 (Wastewater Utility). On November 28, 2006 the Trustees of the Norman Utilities Authority adopted Resolution 0304-51, approving its Utility Revenue Bonds, Series 2006 (Water Utility).
The average interest rate of these three outstanding NUA Revenue Bonds is 4.048%, and the remaining outstanding principal indebtedness on each issue is listed below:
Debt Issue
2003 Sewer Refunding Bonds - remaining principal, $1,600,000 with Maturity date of 11/1/2016
2005 Sewer Refunding Bonds - remaining principal, $1,315,000 with Maturity date of 11/1/2019
2006 Water Revenue Bonds - remaining principal, $14,390,000 with Maturity date of 12/1/2026
DISCUSSION: Municipal bond market rates have decline...
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