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R-86-905 - 8/28/1986THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK CERTIFICATE FOR RESOLUTION We, the undersigned officers of said City, hereby certify as follows: 1. The City Council of said City convened in REGULAR MEETING ON THE 28TH DAY OF AUGUST, 1986, at the City Hall, and the roll was called of the duly constituted officers and members of said City Council, to -wit: SEAL Mike Robinson, Mayor Pete Correa Mike Heiligenstein, Mayor Pro Tem Trudy L. Lee Joanne Land, City Secretary Charles Culpepper Glen T. King Ronnie Jean and all of said persons were present, except the following absentees: thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a written RESOLUTION DIRECTING ADVISORS AND CONSULTANTS TO THE CITY TO PREPARE GENERAL OBLIGATION REFUNDING BONDS was duly introduced for the consideration of said City Council and read in full. It was then duly moved and seconded that said Resolution be passed; and, after due discussion, said motion carrying with it the passage of said Resolution, pre- vailed and carried by the following vote: AYES: All members of said City Council shown present above voted "Aye ". NAYS: None. 2. That a true, full and correct copy of the aforesaid Resolution passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Certifi- cate; that said Resolution has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full and correct excerpt from said City Council's minutes of said Meeting pertaining to the passage of said Resolution; that the persons named in the above and fore- going paragraph are the duly chosen, qualified and acting officers and members of said City Council as indicated therein; that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of the aforesaid Meeting, and that said Resolution would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in advance, to the holding of said Meeting for such purpose, and that said Meeting was open to the public and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252 -17. 3. That the Mayor of said City has approved and hereby approves the aforesaid Resolution; that the Mayor and the City Secretary of said City have duly signed said Resolution; and that the Mayor and the City Secretary of said City hereby declare that their signing of this Certificate shall constitute the signing of the attached and following copy of said Resolu- tion for all purposes. SIGNED AND SEALED the 28th day of� -c August, Mayor o,, THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK 9 . S z RESOLUTION DIRECTING ADVISORS AND CONSULTANTS TO THE CITY TO PREPARE GENERAL OBLIGATION REFUNDING BONDS • • • • WHEREAS, the City deems it advisable to proceed with the refunding of all of the City's outstanding general obligation debt for which a refunding may be accomplished, in order to achieve an interest savings and other economies on behalf of the City; and WHEREAS, it is hereby officially found and determined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Resolution is adopted, such emergency or urgent public neces- 1 sity being that the proposed refunding of the City's general obligation debt be achieved as soon as possible and without delay; and that said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Texas Civ. St. Article 6252 -17. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK: 1. That the City does hereby instruct the City's bond counsel, McCall, Parkhurst & Horton, the City's financial advisors, First Southwest Company and the City's underwriters, Texas Capital Markets and Prudential Bache Securities, Inc., to proceed with the development of a refunding program for the City's general obligation indebtedness, in order to achieve an interest savings and other encomies for the City. 2. That the City does hereby authorize the above -named parties to proceed, on behalf of the City, to undertake the accomplishment of the refunding of the City's general obliga- tion indebtedness. 3. That the City's officers and employees are hereby directed and instructed to cooperate with such firms as necessary in order to assist in the preparation of this refunding program. 4. That the above named parties are hereby instructed to act on behalf of the City in reference to their respective duties as bond counsel, financial advisor and underwriter. DATE: August 26, 1986 SUBJECT: Council Agenda, August 28, 1986 ITEM: 13E - Consider a resolution authorizing th Mayor to enter into a bond refunding contract. This resolution allows Texas Capital Markets Group to proceed with setting up the process of refunding our outstanding G.O. Bonds. This will allow the City to move with the refunding when the market is "right ". The anticipated savings will be approximately $500,000 over teh life of the issue. LAW OFFICES McCALL, PARKHURST & HORTON 900 DIAMOND SHAMROCK TOWER PAUL B. HORTON PETER M. TART DALLAS, TEXAS 75201 - 6567 RICHARD C. PORTER G. CHARLES KoeoisH AREA Cope 2Ia Tae -Rsoi THOMAS L. POSCHARSKY KENNETH E TcLecopIDR: Pia 360 M. PAUL W ZAP MAILER. Dm 220 -39a1 JOHN JOHN U60T ALAN H. JEFFREY N.SPURGEON August 22, 1986 L.E. BRIZZOLARA, Ill HAROLD T DANNY S ? AN CULVER •Licemseo 1N NEW YORK ONLY Mr. Sam Huey Asst. Manager 214 East Main St. Round Rock, Texas 78664 Proposed Refunding for City of Round Rock General Obligation Bonds Dear Sam: wk enc. Sincgrely, 1J1 Peter M. Tart JOHN D MCCALL Enclosed herewith are seven copies of a resolution authorizing the City's consultants to proceed with the development of a plan of refunding for City's outstanding general obligation indebtedness. It is my understanding that the refunding will include all of the outstanding tax bonds for which the refund- ing could benefit the City by an interest savings and other economies. A brief summary of the proposed requirements for the issuance of refunding bonds, as provided in the general statement released by the Joint Conference Committee in reference to the Tax Reform Act, is as follows: 1. Refunding bonds must be redeemed on the first date on which the bonds may be called at a premium of 3% or less in order to produce a present value debt service savings. 2. The City cannot advance refunding the bonds more than twice. 3. Costs of issuance, other than insurance, may not be included in the yield calculations in reference to arbitrage investments. We might find that when the Tax Reform Bill is finally passed that there are other additional restrictions not apparent in the summary which has been furnished by the Committee. I will advise you of the final bill once we have received a copy. Please return to our office six copies of the execution resolution with the remaining copy to be filed in the City's permanent records.