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R-10-01-28-10F3 - 1/28/2010RESOLUTION NO. R -10-01-28-10F3 WHEREAS, the City of Round Rock (the "City") and Fern Bluff Municipal Utility District (the "District") have entered into that certain "Wastewater Services Agreement" effective as of December 8, 2009 (the "Wastewater Services Agreement") setting forth the terms and conditions pursuant to which the City has agreed to provide wastewater treatment and disposal services to the District; WHEREAS, under the Wastewater Services Agreement, the District agreed to pay the "District Capital Charge", which represents the portion of the City's debt necessary to serve the District for which the District is responsible under the terms of the Wastewater Services Agreement; WHEREAS, Exhibit "A" to the Wastewater Services Agreement sets forth an estimate of the debt service payments to be made by the District to the City for purposes of the District Capital Charge, and Section 1.01 of the Wastewater Services Agreement specifically provides that Exhibit "A" would be amended based upon the final amount of the debt and true interest cost of the bonds issued by the City to purchase the Brushy Creek Regional Wastewater System (the "Regional Wastewater System") from LCRA; WHEREAS, the City, along with the Cities of Austin and Cedar Park, have now closed on the purchase of the Regional Wastewater System from LCRA and in connection therewith, the City has issued its bonds for payment of a pro rata share of the purchase price of the Regional Wastewater System; WHEREAS, a revised debt service payment scheduled has been prepared by the City to reflect the District's share of the City's debt for which the District is responsible under the Wastewater 0:\wdox\SCClnt$\0112\1005\MUNICIPAL\00180791.DOC/xmc Services Agreement; and WHEREAS, the City Council desires to adopt this Resolution to evidence its approval of the revised debt service schedule, and to authorize the schedule to be attached as the final Exhibit "A" to the Wastewater Services Agreement; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, THAT: Section 1. The facts and recitations in the preamble of this Resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 2. The City Council hereby approves the debt service schedule attached hereto, and further authorizes such debt service schedule to be attached to, and serve as the final Exhibit "A" of, the Wastewater Services Agreement. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 28th day of January, 2010. ATTEST: SARA L. WHITE, City Secretary 2 ALAN MCGRAW, Mayor City of Round Rock, Texas City of Round Rock, Texas Utility System Revenue Bonds, Series 2009 Fern Bluff MUD Portion Project Fund Deposit = $2,088,056.99 Debt Service Schedule EXHIBIT Part 1 of 3 Date Principal Coupon Interest Total P+I Fiscal Total 12/08/2009 - - - 08/01/2010 60,000.00 4.078% 60,608.14 120,608.14 - 09/30/2010 - - - 120,608.14 02/01/2011 - - 41,391.70 41,391.70 - 08/01/2011 40,000.00 4.078% 41,391.70 81,391.70 - 09/30/2011 122,783.40 02/01/2012 - - 40,576.10 40,576.10 - 08/01/2012 40,000.00 4.078% 40,576.10 80,576.10 - 09/30/2012 - - 121,152.20 02/01/2013 - - 39,760.50 39,760.50 08/01/2013 40,000.00 4.078% 39,760.50 79,760.50 09/30/2013 - - 119,521.00 02/01/2014 - - 38,944.90 38,944.90 08/01/2014 45,000.00 4.078% 38,944.90 83,944.90 09/30/2014 - - - 122,889.80 02/01/2015 - - 38,027.35 38,027.35 08/01/2015 45,000.00 4.078% 38,027.35 83,027.35 09/30/2015 - - - - 121,054.70 02/01/2016 - - 37,109.80 37,109.80 08/01/2016 45,000.00 4.078% 37,109.80 82,109.80- 09/30/2016 - 119,219.60 02/01/2017 - - 36,192.25 36,192.25 08/01/2017 50,000.00 4.078% 36,192.25 86,192.25 09/30/2017 - - 122,384.50 02/01/2018 - - 35,172.75 35,172.75 08/01/2018 50,000.00 4.078% 35,172.75 85,172.75 09/30/2018 - - 120,345.50 02/01/2019 - - 34,153.25 34,153.25 08/01/2019 50,000.00 4.078% 34,153.25 84,153.25 09/30/2019 - - - 118,306.50 02/01/2020 - - 33,133.75 33,133.75 08/01/2020 55,000.00 4.078% 33,133.75 88,133.75 09/30/2020 - - 121,267.50 02/01/2021 - - 32,012.30 32,012.30 08/01/2021 55,000.00 4.078% 32,012.30 87,012.30 - 09/30/2021 119,024.60 02/01/2022 - - 30,890.85 30,890.85 08/01/2022 60,000.00 4.078% 30,890.85 90,890.85 09/30/2022 02/01/2023 29,667.45 29,667.45 121,781.70 09 RR util revs level MUD 1 FB MUD 1 1/ 6/2010 1 9:37 AM Specialized Public Finance Inc. Austin. Texas Page 1 City of Round Rock, Texas Utility System Revenue Bonds, Series 2009 Fern Bluff MUD Portion Project Fund Deposit = $2,088,056.99 Debt Service Schedule Part 2 of 3 Date Principal Coupon Interest Total P+I Fiscal Total 08/01/2023 60,000.00 4.078% 29,667.45 89,667.45 - 09/30/2023 - - 119,334.90 02/01/2024 - 28,444.05 28,444.05 - 08/01/2024 65,000.00 4.078% 28,444.05 93,444.05 - 09/30/2024 - - 121,888.10 02/01/2025 - 27,118.70 27,118.70 - 08/01/2025 65,000.00 4.078% 27,118.70 92,118.70 - 09/30/2025 - 119,237.40 02/01/2026 - 25,793.35 25,793.35 - 08/01/2026 70,000.00 4.078% 25,793.35 95,793.35 - 09/30/2026 121,586.70 02/01/2027 - 24,366.05 24,366.05 - 08/01/2027 70,000.00 4.078% 24,366.05 94,366.05 - 09/30/2027 - 118,732.10 02/01/2028 - - 22,938.75 22,938.75 - 08/01/2028 75,000.00 4.078% 22,938.75 97,938.75 - 09/30/2028 - 120,877.50 02/01/2029 - 21,409.50 21,409.50 - 08/01/2029 80,000.00 4.078% 21,409.50 101,409.50 - 09/30/2029 - - 122,819.00 02/01/2030 - 19,778.30 19,778.30 - 08/01/2030 80,000.00 4.078% 19,778.30 99,778.30 - 09/30/2030 - - 119,556.60 02/01/2031 - - 18,147.10 18,147.10 - 08/01/2031 85,000.00 4.078% 18,147.10 103,147.10 - 09/30/2031 - - - 121,294.20 02/01/2032 - - 16,413.95 16,413.95 - 08/01/2032 85,000.00 4.078% 16,413.95 101,413.95 - 09/30/2032 - - 117,827.90 02/01/2033 14,680.80 14,680.80 - 08/01/2033 90,000.00 4.078% 14,680.80 104,680.80 - 09/30/2033 - - 119,361.60 02/01/2034 - - 12,845.70 12,845.70 - 08/01/2034 95,000.00 4.078% 12,845.70 107,845.70 - 09/30/2034 - - - 120,691.40 02/01/2035 - - 10,908.65 10,908.65 - 08/01/2035 100,000.00 4.078% 10,908.65 110,908.65 - 09/30/2035 - - 121,817.30 02/01/2036 - - 8,869.65 8,869.65 08/01/2036 105,000.00 4.078% 8,869.65 113,869.65 09 RR util revs level MUD 1 FB MUD 1 1/ 6/2010 1 9:37 AM Specialized Public Finance Inc. Austin. Texas City of Round Rock, Texas Utility System Revenue Bonds, Series 2009 Fern Bluff MUD Portion Project Fund Deposit = $2,088,056.99 Debt Service Schedule Part3of3 Date Principal Coupon Interest Total P+I Fiscal Total 09/30/2036 - - 122,739.30 02/01/2037 6,728.70 6,728.70 - 08/01/2037 105,000.00 4.078% 6,728.70 111,728.70 - 09/30/2037 118,457.40 02/01/2038 - - 4,587.75 4,587.75 - 08/01/2038 110,000.00 4.078% 4,587.75 114,587.75 - 09/30/2038 - 119,175.50 02/01/2039 2,344.85 2,344.85 - 08/01/2039 115,000.00 4.078% 2,344.85 117,344.85 - 09/30/2039 119,689.70 Total $2,090,000.00 $1,525,425.74 $3,615,425.74 Yield Statistics Accrued Interest from 11/15/2009 to 12/08/2009 Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS Form 8038 Net Interest Cost Weighted Average Maturity 5,445.26 $37,272.69 17.834 Years 4.0926092% 4.0926092% 4.0769818% 4.5358924% 4.0767831% 4.0780000% 17.834 Years 09 RR udl revs level MUD 1 FB MUD 1 1/ 6/2010 1 9:37 AM Specialized Public Finance Inc. Austin. Texas Page 3 City of Round Rock, Texas Utility System Revenue Bonds, Series 2009 Fern Bluff MUD Portion Project Fund Deposit = $2,088,056.99 Debt Service Schedule Date 09/30/2010 09/30/2011 09/30/2012 09/30/2013 09/30/2014 09/30/2015 09/30/2016 09/30/2017 09/30/2018 09/30/2019 09/30/2020 09/30/2021 09/30/2022 09/30/2023 09/30/2024 09/30/2025 09/30/2026 09/30/2027 09/30/2028 09/30/2029 09/30/2030 09/30/2031 09/30/2032 09/30/2033 09/30/2034 09/30/2035 09/30/2036 09/30/2037 09/30/2038 09/30/2039 Principal 60,000.00 40,000.00 40,000.00 40,000.00 45,000.00 45,000.00 45,000.00 50,000.00 50,000.00 50,000.00 55,000.00 55,000.00 60,000.00 60,000.00 65,000.00 65,000.00 70,000.00 70,000.00 75,000.00 80,000.00 80,000.00 85,000.00 85,000.00 90,000.00 95,000.00 100,000.00 105,000.00 105,000.00 110,000.00 115,000.00 Coupon Interest 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 4.078% 60,608.14 82,783.40 81,152.20 79,521.00 77,889.80 76,054.70 74,219.60 72,384.50 70,345.50 68,306.50 66,267.50 64,024.60 61,781.70 59,334.90 56,888.10 54,237.40 51,586.70 48,732.10 45,877.50 42,819.00 39,556.60 36,294.20 32,827.90 29,361.60 25,691.40 21,817.30 17,739.30 13,457.40 9,175.50 4,689.70 Total P+I 120,608.14 122,783.40 121,152.20 119,521.00 122,889.80 121,054.70 119,219.60 122,384.50 120,345.50 118,306.50 121,267.50 119,024.60 121,781.70 119,334.90 121,888.10 119,237.40 121,586.70 118,732.10 120,877.50 122,819.00 119,556.60 121,294.20 117,827.90 119,361.60 120,691.40 121,817.30 122,739.30 118,457.40 119,175.50 119,689.70 Total $2,090,000.00 $1,525,425.74 $3,615,425.74 Yield Statistics Accrued Interest from 11/15/2009 to 12/08/2009 Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS Form 8038 Net Interest Cost Weighted Average Maturity 09 RR uGl revs level MUD 1 FB MUD 1 1/ 6/2010 1 9:37 AM 5,445.26 $37,272.69 17.834 Years 4.0926092% 4.0926092% 4.0769818% 4.5358924% 4.0767831% 4.0780000% 17.834 Years Specialized Public Finance Inc. Austin. Texas Page 4 DATE: January 21, 2010 SUBJECT: City Council Meeting —January 28, 2010 ITEM: 10F3. Consider a resolution authorizing the amendment of Exhibit "A" of the Wastewater Service Agreement with Fern Bluff Municipal Utility District. Department: Staff Person: Justification: Finance Cheryl Delaney, Finance Director In September of 2009, Fern Bluff Municipal Utility District entered into an agreement with the City of Round Rock to provide wholesale wastewater treatment and disposal services. Contained in the agreement is a payment obligation for capital charges -Exhibit 'A'. Fern Bluff MUD requested that the Exhibit 'A' be amended to provide a level capital charge schedule. This amended Exhibit 'A' reflects this request. This amendment is subject to approval by the Fern Bluff MUD board. This will not affect the City's debt obligation. Strategic Plan Relevance: 8.0 — Maintain and enhance public confidence, satisfaction and trust in City Government. Funding: Cost: N/A Source of funds: N/A Outside Resources: Garry Kimball, Specialized Public Finance Inc. Public Comment: N/A