R-91-1669 - 10/22/1991RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
AUTHORIZING FIRST SOUTHWEST COMPANY TO PURSUE AND DO ALL THINGS
NECESSARY FOR THE PURPOSE OF REFUNDING THE CITY'S WATERWORKS &
SEWER REVENUE BONDS, SERIES 1985
WHEREAS, First Southwest Company is employed as the City of
Round Rock's Financial Advisor for the purpose of advising the City
in all aspects of capital financing; and,
WHEREAS, it has been deemed to be in the public interest that
the City consider refinancing its Waterworks & Sewer System Revenue
Bonds, Series 1985, for the purpose of reducing debt service
payments, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That First Southwest Company is directed to proceed with all
matters related to the negotiated sale of the City of Round Rock,
Waterworks & Sewer System Revenue Refunding Bonds, Series 1991 for
the purpose of reducing the City's existing debt service
requirements on the City's Waterworks & Sewer System Revenue Bonds,
Series 1985.
RESOLVED this 22nd day of October, 1991.
ATTEST:
LAND, City Secretary
RESOLUTION NO. /(04
MIKE ROBINSON, Mayor
City of Round Rock, Texas
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FIRST SOUTHWEST COMPANY
10/04/1991 PAGE: 1 RECORD NAME - ROUND ROCK 91 REFUNDING
REFUNDING ISSUE
DATE PRINCIPAL RATE INTEREST BERT SERVICE OUTSTANDING SAVINGS
9/30/1992 145,000.00 4.500 173,580.00 318,580.00 309,617.50 12,651.58 #
9/30/1993 60,000.00 4.750 227,840.00 287,840.00 309,617.50 21,777.50
9/30/1994 65,000.00 4.900 224,822.50 259,822.50 309,617.50 19,795.00
9/30/1995 70,000.00 5.100 221,445.00 291,445.00 309,617.50 18,172.50
9/30/1996 70,000.00 5.250 217,822.50 287,822.50 309,617.50 21,795.00
9/30/1997 75,000.00 5.400 213,960.00 288,960.00 309,617.50 20,657.50
9/30/1998 610,000.00 5.600 194,855.00 804,855.00 825,722.50 20,867.50
9/30/1999 610,000.00 5.750 160,237.50 770,237.50 791,852.50 21,615.00
9/30/2000 680,000.00 5.900 122,640.00 802,640.00 822,757.50 20,117.50
9/30/2001 505,000.00 6.000 87,430.00 592,430.00 611,557.50 19,127.50
9/30/2002 535,000.00 6.100 55,962.50 590,962.50 610,196.25 19,233.75
9/30/2003 360,000.00 6.200 28,485.00 388,485.00 408,942.50 ' 20,457.50
9/30/2004 275,000.00 6.300 8,662.50 283,662.50 303,485.00 19,822.50
TOTALS 4,060,000.00
1,937,742.50 5,997,742.50
# - SAVINGS INCLUDES ACCRUED INTEREST OF 21,614.08
PRESENT VALUE OF PRIOR DEBT SERVICE AT
PRESENT VALUE OF NEW DEBT SERVICE AT
LESS ACCRUED INTEREST
PLUS CASH CONTRIBUTION
PRESENT VALUE SAVINGS
P. V. SAVINGS AS A % OF THE REFUNDED BONDS
6.033483594% 4,206,352.42
6.033483594%
6,232,218.75 256,090.33
4,056,613.94 -
21,614.08-
0.00 4,034,999.86
171,352.56
5.040 %
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FIRST 0CW/ ea' COMPANY
October 11, 1991
CITY OF ROUND ROCK, TEXAS
$4,060,000
Waterworks and Sewer System Refunding Revenue Bonds, Series 1991
Timeline of Events
Tuesday, October 22* The City Council will consider a resolution allowing
First Southwest Company to proceed with the
issuance of the Refunding Bonds.
Wednesday, October 23 The Financial Advisor will begin work on the
Offering Document and secure bids on all items
related to the issue.
Thursday, October 31 The Financial Advisor will circulate the draft
Offering Document to all partcipants for comments,
and will also apply for insurance qualification on the
Bonds.
Friday, November 8
Comments to be received on the Offering Document
from all participants. Comments will be sent to the
Financial Advisor and incorporated into the Offering
Document.
Thursday, November 14 Insurance qualification will be received on the
Bonds.
Tuesday, November 19 Financial Advisor will submit the Offering
Document to print.
Tuesday, November 26 Financial Advisor will distribute the Offering
Document per the Underwriter's instructions.
Tuesday, December 10 Pricing. The Bonds will be placed in the market,
and purchase orders will be received. The Financial
Advisor will negotiate with the Underwriter in order
to obtain the lowest possible financing cost to the
City.
Thursday, December 12* -- Award. The City Council will consider an Order
authorizing the issuance of the Bonds. The Council
will be briefed by the Financial Advisor on the
financial terms of the refunding issue.
Thursday, January 16 Closing. The City will exchange the Bonds with the
Underwriter for the proceeds. At this time, the
escrow will be funded with the proceeds, thereby
def easing the Refunded Bonds.
*Requires official City Council meeting.
Mayor
Mike Robinson.
Mayor Pro -tem
Charles Culpepper
Council Members
Robert Stluka
Tish Oatman
Rick Stewart
Earl Palmer
Jimmy Joseph
City Manager
Robert L. Bennett, Jr.
City Attorney
Stephan L. Sheets
THE CITY OF ROUND ROCK
221 East Main Street
Round Rock, Texas 78664
512- 255 -3612
Fax 512- 255 -6676
MEMORANDUM
DATE: October 17, 1991
TO: Bob Bennett, City Manager
FROM: David Kautz, Director of Finance
SUBJECT: Refinancing of Outstanding Revenue Bonds
Cam
Due to the downward shift in the bond market interest rates, it has
become feasible for the City to reap substantial cost savings by
refinancing certain outstanding waterworks and sewer system revenue
bonds at lower interest rates.
Attached is a pro forma illustrating the actual and present value
cost savings estimated from a refinancing. Assuming a 6.1%
prevailing interest rate at the time of the refinancing, the City
could expect to save $256,000.00 over the life of the refinancing.
The discounted present value of the savings is $171,000.00. With
regard to the budget, the City could possibly save $12,000.00 in
the first year and approximately $20,000.00 annually in the future
years. The soft costs and financing costs are included in these
estimated savings.
It is my recommendation that we follow through on this refinancing
while rates are favorable.
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FIRST SOUTHWEST COMPANY
10/04/1991 PAGE: 1 RECORD NAME - ROUND ROCK 91 REFUNDING
REFUNDING ISSUE
DATE PRINCIPAL RATE INTEREST DEBT SERVICE OUTSTANDING SAVINGS
9/30/1992 145,000.00 4.500 173,580.00 318,580.00 309,617.50 12,651.58 6
9/30/1993 60,000.00 4.750 227,840.00 287,840.00 309,617,50 21,777.50
9/30/1994 65,000.00 4.900 224,822.50 289,822.50 309,617.50 19,795.00
9/30/1995 70,000.00 5.100 221,445.00 291,445.00 309,617.50 18,172.50
9/30/1996 70,000.00 5.250 217,822.50 287,822.50 309,617.50 21,795.00
9/30/1997 75,000.00 5.400 213,960.00 288,960.00 309,617.50 20,657.50
9/30/1998 610,000.00 5.600 194,855.00 804,855.00 825,722.50 20,867.50
9/30/1999 610,000.00 5.750 160,237.50 770,237.50 791.852.50 21,615.00
9/30/2000 680,000.00 5.900 122,640.00 802,640.00 822,757.50 20,117.50
9/30/2001 805,000.00 6.000 87,430.00 592,430.00 611,557.50 19,127.50
9/30/2002 535,000.00 6.100 55,962.50 590,962.50 610,196.25
9/30/2003 360,000.00 6.200 28,485.00 388,485.00 408,942.50
9/30/2004 275,000.00 6.300 8,662.50 283,662.50 303,485.00
TOTALS 4,060,000.00 1,937,742.50 5,997,742.50 6,232,218.75 256,090.33
A - SAVINGS INCLUDES ACCRUED INTEREST OF 21,614.08
PRESENT VALUE OF PRIOR DEBT SERVICE AT
PRESENT VALUE OF NEW DEBT SERVICE AT
LESS ACCRUED INTEREST
PLUS CASH CONTRIBUTION
PRESENT VALUE SAVINGS
P. V. SAVINGS AS A % OF THE REFUNDED BONDS
•J
6.033483594% 4,206,352.42
6.033483594%
4,056,613.94
21,614.08-
0,00 4,034,999.86
171,352.56
5.040 %
19,233.75
20,457.50
19,822.50
DATE: October 18, 1991
SUBJECT: City Council Meeting, October 22, 1991
ITEM: 10.E. Consider a resolution authorizing First Southwest
Company to proceed on refunding certain Waterworks and
Sewer System Revenue Bonds.
STAFF
RESOURCE PERSON: David Kautz
STAFF
REOQNIENIATION:
Due to the downward shift in the bond market interest rates, it
has become feasible for the City to reap substantial cost savings
by refinancing certain outstanding waterworks and sewer system
revenue bonds at lower interest rates.
Attached is a pro forma illustrating the actual and present value
cost savings estimated from a refinancing. Assuming a 6.1% pre-
vailing interest rate at the time of the refinancing, the City
could expect to save $256,000.00 over the life of the refinancing.
The discounted present value of the savings is $171,000.00. With
regard to the budget, the City could possibly save $12,000.00 in
the first year and approximately $20,000.00 annually in the future
years. The soft costs and financing costs are included in these
estimated savings.
Also attached is a schedule that would be followed once the City's
financial advisor has been authorized to proceed.