R-01-04-12-14B1 - 4/12/2001RESOLUTION NO. /C - 0/ - 0 L / — /a2 — J
RESOLUTION APPROVING A RESOLUTION OF THE ROUND ROCK
TRANSPORTATION SYSTEM DEVELOPMENT CORPORATION AUTHORIZING
PROCEEDING WITH FINANCING OF TRANSPORTATION SYSTEM
IMPROVEMENTS THROUGH THE ISSUANCE OF SALES TAX REVENUE BONDS
WHEREAS, the Round Rock Transportation SystemDevelopment Corporation (the "RRTSDC ")
has approved a resolution to proceed with financing certain transportation system improvements included
within the Transportation Capital Improvement Plan to further the purposes of Section 4B of Article
5190.6, Vernon's Texas Civil Statutes, as amended; and
WHEREAS, the City Council of the City of Round Rock hereby finds and determines there is an
urgent need for the City to construct improvements to the City's transportation system; and
WHEREAS, the City Council wishes to approve the RRTSDC proceeding with the financing of
such transportation improvements, NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS:
Section 1, The City Council hereby approves the resolution of the RRTSDC attached hereto as
Exhibit "A" and further approves the RRTSDC proceeding with the issuance of sales tax revenue bonds
to finance certain improvements to the City's transportation system.
Section 2 The Mayor, City Manager, Director of Finance and City Secretary are authorized to
do all things proper and necessary to carry out the intent of this Resolution. The officers and employees
of the City are hereby authorized, empowered and directed to do and perform all such actions to assist the
Financial Advisor and Bond Counsel in preparing the offering documents and other legal documents
necessary to issue the bonds.
Section 4. 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, and the Act.
ATTEST:
nVI
RESOLVED this V o( day of April, 2001.
e Land, City Secretary
CITY OF ROUND ROCK, TEXAS
WHEREAS, the Board of Directors of the Round Rock Transportation System Development
Corporation ( "RRTSDC ") hereby finds and determines that there is an urgent need for the RRTSDC to
construct improvements to the City of Round Rock's transportation system to further the purposes of
Section 4B of Article 5190.6, Vernon's Texas Civil Statutes, as amended (the "Act ") including the
promotion of new and expanded business enterprises and the public purposes authorized in Section
4B(2XA) of the Act; and
and
RESOLUTION NO. 0/-12-R
RESOLUTION AUTHORIZING PROCEEDING WITH FINANCING OF
TRANSPORTATION SYSTEM IMPROVEMENTS THROUGH THE ISSUANCE OF
SALES TAX REVENUE BONDS
WHEREAS, such capital improvements cannot be reasonably financed unless bonds are issued;
WHEREAS, the transportation system improvements to be financed are included within the
Transportation Capital Improvement Plan and the Board of the RRTSDC now desires to recommend to
the Round Rock City Council that sales tax revenue bonds be issued, NOW, THEREFORE,
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ROUND ROCK
TRANSPORTATION SYSTEM DEVELOPMENT CORPORATION:
Section 1. A recommendation is hereby made to the Round Rock City Council that the Board
of Directors of the RRTSDC desires to proceed with the issuance of sales tax revenue bonds to finance
certain transportation system improvements included in the Transportation Capital Improvement Plan.
Section 2. Financial Advisor and Bond Counsel for the RRTSDC are hereby authorized to
proceed with preparing the offering documents and other legal documents necessary to issue sales tax
revenue bonds of the RRTSDC.
Section 3. The President or Vice President of the Board are authorized to do all things proper and
necessary to carry out the intent of this Resolution. On behalf of the RRTSDC, the officers and employees
of the City are hereby authorized, empowered and directed to do and perform all such actions to assist the
Financial Advisor and Bond Counsel in preparing the offering documents and other legal documents
necessary to issue the bonds.
Section 4. The Board of Directors 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,
RRTSDC: CityProceedFinancingRes
Chapter 551, Texas Government Code, as amended, and the Act.
ATTEST:
th
RESOLVED this /A -day of April, 2001.
()DelmAtv ,)&1444
RRTSDC: CityProceedFinancingRes
, Secretary
ROUND ROCK TRANSPORTATION SYSTEM
DEVELOPMENT CORPORATION
Robert t u President
DATE: April 6, 2001
SUBJECT: City Council Meeting — April 12, 2001
ITEM: 14.B.1. Consider a resolution authorizing First Southwest Company,
Financial Advisor, and McCall Parkhurst, Bond Counsel, to
proceed with planning and document preparation in connection
with a proposed sales tax revenue bond issuance for the Round
Rock Transportation System Development Corporation.
Resource: David Kautz, Finance Director
History:
Cost:
Outside Resources: N/A
Impact/Benefit:
Public Comment: N/A
Sponsor:
The Corporation is responsible for using revenue generated by a local
/2% sales tax rate for transportation improvements. As construction
project costs outpace available revenue, borrowing funds to meet
construction timetables is required. To date, the Corporation has
borrowed $16 million from the State Infrastructure Bank.
Funding: Sales tax revenue bonds issued by the Corporation are repaid by sales
taxes collected
To be determined; Costs are a function of issue size and complexity
and market conditions. Costs of issuance (bond rating costs, Attorney
General fees, bond printing fees, fmancial advisory fees, legal fees and
fiscal agent fees, etc.) are expected to be less than 1% of the bond
issue and are paid from proceeds of the bonds.
Source of Funds: Revenue collected from an existing '/2% Sales Tax rate for
transportation improvements
The Financial Advisor and Bond Counsel provide expert assistance to
the City and the Transportation Corporation in the complex area of
tax- exempt financing. Proper structure of bond transactions result in
lower borrowing costs and lower liability with respect to our debt
offerings in the financial markets.