R-93-03-25-9D - 3/25/1993RESOLUTION NO.. /` 93 9r)
RESOLUTION 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 GENERAL OBLIGATION BONDS, SERIES 1979, 1981A,
1981B AND 1987; CERTIFICATES OF OBLIGATION, SERIES 1979,
1987, 1988, AND 1990; AND GENERAL OBLIGATION
REFUNDING BONDS, SERIES 1987
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
1. THAT, 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,
2. WHEREAS, it has been deemed to be in the public interest that the City consider
refinancing the following issues of bonds /certificates:
ATTEST:
a. General Obligation Bonds, Series 1979;
b. General Obligation Bonds, Series 1981A;
c. General Obligation Bonds, Series 1981B;
d. General Obligation Bonds, Series 1987;
e. Certificates of Obligation, Series 1979;
f. Certificates of Obligation, Series 1987;
g. Certificates of Obligation, Series 1988;
h. Certificates of Obligation, Series 1990;
i. General Obligation Refunding Bonds, Series 1987;
for the purpose of reducing debt service payments; NOW THEREFORE, PREMISES
CONSIDERED,
3. IT IS HEREBY RESOLVED that First Southwest Company is directed to
proceed with all matters related to the negotiated sale of the City of Round Rock's
bonds /certificates, as set out in paragraph 2. above, for the purpose of reducing the City's
existing debt service requirements on the City's bonds /certificates, as set out in paragraph 2.
above.
PASSED, APPROVED AND ADOPTED, this, the o(J day of V • 1
1993.
APPROVED
MIKE ROBINSON, Mayor
City of Round Rock, Texas
CITY OF ROUND ROCK
Tentative Timetable for
General Obligation Refunding Bonds, Series 1993
• Underwriters are appointed.
March 18, 1993
Thursday, March 25, 1993* • Round Rock City Council authorizes First
Southwest Company to proceed with refunding.
Friday, March 26, 1993 • First Southwest Company begins Offering
Document preparation.
Thursday, April 8, 1993 • First Southwest Company secures agreements for
Paying Agent, Escrow Agent, Document Printing.
Monday, April 12, 1993 • Initial draft of Offering Document distributed to
participants for review and changes.
Monday, April 19, 1993 • First Southwest Company applies for bond
insurance and ratings.
Monday, April 26, 1993 • All comments and changes to Offering Document
are returned to First Southwest Company.
Wednesday, May 5, 1993 • First Southwest Company directs printing of
Preliminary Offering Statement (POS).
Wednesday, May 12, 1993 • POS is distributed to underwriters.
Thursday, May 20, 1993* • Bonds are priced.
Tuesday, June 22, 1993 • Closing Date; Delivery.
* Regular Council Meeting
• Board and City Council approves Bond Purchase
Agreement and awards the bonds.
DATE: March 23, 1993
SUBJECT: City Council Meeting, March 25, 1993
ITEM: 9.D. Consider a resolution authorizing First Southwest Company to proceed with
the advance refunding of certain outstanding Certificates of Obligation and
General Obligation bonds.
STAFF RESOURCE PERSON: David Kautz
STAFF RECOMMENDATION:
The current bond market, with its low long —term interest rates, is providing the City
with an opportunity to again refinance its outstanding general obligation debt.
If the current market conditions prevail at the time of offering, the following
refinancing scenario would occur:
( *1) Net of accrued interest at delivery
I emphasize that the above figures are based upon current market conditions and are subject
to change.
A complete presentation will be made at the meeting.
Old
Outstanding
Debt
New
Refinaning
Debt
Principal Amount
$22,185,000
$24,460,000
Final Maturities (Bonds paid off)
2010
2010
Yield (expressed as average interest rate)
6.96%
4.83%
Average Annual Debt Service to Maturity
$3,195,004
$3,105,149
Average Annual Savings ( *1)
$86,111
Total Savings
$1,549,992
Present Value of total savings
$1,067,466
DATE: March 23, 1993
SUBJECT: City Council Meeting, March 25, 1993
ITEM: 9.D. Consider a resolution authorizing First Southwest Company to proceed with
the advance refunding of certain outstanding Certificates of Obligation and
General Obligation bonds.
STAFF RESOURCE PERSON: David Kautz
STAFF RECOMMENDATION:
The current bond market, with its low long —term interest rates, is providing the City
with an opportunity to again refinance its outstanding general obligation debt.
If the current market conditions prevail at the time of offering, the following
refinancing scenario would occur:
( *1) Net of accrued interest at delivery
I emphasize that the above figures are based upon current market conditions and are subject
to change.
A complete presentation will be made at the meeting.
0 NEW ISSUE
L 2
$21,520,000*
GENERAL OBLIGATION REFUNDING BONDS,
SERIES 1993
* Preliminary, subject to change.
PRELIMINARY OFFICIAL STATEMENT
Dated May 28, 1993
and
See Maturity Schedules on Inside of Cover
E MASTERSON MORELAND SAUER WHISMAN, INC.
le s -
Ratings: Moody's: ""
S &P:
(See "Other Information -
Ratings" herein)
a ce
In the opinion of Bond Counsel, interest on the Bands and Certificates will be excludable from gross income for federal income tax purposes
c under statutes, regulations, published rulings and court decisions existing on the date thereof, subject to the matters described under "Tax
Matters' herein, including the alternative minimum tax on corporations
2
CITY OF ROUND ROCK, TEXAS
(Williamson and Travis Counties)
$3,000,000
COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1993
Dated: June 1, 1993 Due: August 15, as shown on inside cover
= ° o $3000,000 City o Rock, Combination Tax and Revenue Certificates of Obligation, Bonds, Series Series 1993 (h (the
e"Certificates"), will accrue
g 5 from the dated date as shown above and will be payable August 15 and February 15 of each year commencing February 15, 1994, and will
S S = be payable by check or draft mailed by the Paying Agent/Registrar on the interest payment date to the registered owners thereof as shown on
the records of the Paying Agent/Registrar at the close of business on the Record Date (herein defined) or by such other method acceptable
55 Q to the Paying Agent/Registrar, requested by, and at the risk and expense of the registered owner. Interest on the Bonds and Certificates will
° be calculated on the basis ofa 360 -day year consisting of twelve 30 -day months. The Bonds and Certificates are issued only as fully registered
• ` o obligations in the denomination of $5,000 or any integral multiple thereof within a maturity.
E The initial Paying Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (the "Paying Agent/Registrar ")(see "Bond
` ° m Information - Paying Agent/ Registrar" and "Certificate Information - Paying Agent/Registrar "). Payment, transfers and exchanges of Bonds
▪ 2 0 and Certificates shall be handled at the offices of the Paying Agent/Registrar in Dallas, Texas (the "Designated Payment/Transfer Office ").
E The principal of the Bonds and Certificates shall be payable upon presentation 0 the Designated Payment/Transfer Office of the Paying
_ n Agent /Registrar.
E ▪ n5
"g The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Article 717k, Vernon's Annotated
m c Texas Civil Statutes, as amended ( "VATCS "), and an ordinance (the "Bond Ordinance ") passed by the City Council of the City, and are
° general obligations of the City payable, both as to principal and interest, from the proceeds of a continuing, direct annual ad valorem tax
° g S levied, within the limits prescribed by law, on all taxable property located within the City, as provided in the Bond Ordinance (see "Bond
`°_ 222 Information - Security for Bonds ").
-' E° #
'
E a The Certificates are being issued pursuant to the provisions of Articles 1175 and 1111 -1118, VATCS, as amended, inclusive, Texas Local
Government Code, Section 271.041 through Section 271.065, as amended, inclusive (the "Certificate of Obligation Act of 1971 "), the City's
▪ - f Home Rule Charter, and an ordinance (the "Certificate Ordinance "), passed by the City Council of the City, and will constitute general
_ 'f obligations of the City, payable from ad valorem taxes levied against all taxable property located therein, within the limits prescribed by law
f+, t 2 and further secured by a lien on and limited pledge of not to exceed 51,000 in amount of surplus revenues of the City's waterworks and sewer
• 7 system, after deduction of maintenance and operation expenses and all debt service, reserve and other requirements in connection with all of
v c the City's revenue bonds or other obligations (now or hereafter outstanding) which are payable from all or part of the net revenues of the City's
waterworks and sewer system (see "Certificate Information - Authority for Issuance ").
2 E m
• o Proceeds from the sale of the Bonds will be used for the purpose of refunding a portion of the City's outstanding general obligation bonds
o c and certificates of obligation, in order to lower the overall debt service requirements of the City (sea "Schedule 1 - Schedule of Refunded
2 y Bonds "). Proceeds of the Bonds will also be used to pay the costs of issuance related to the Bonds.
° Proceeds from the sale of the Certificates will be used for the purpose of paying contractual obligations to be incurred by the City for (I)
3 construction of improvements to the street, bridge and road system of the City, including Gattis School Road and (2) the payment of fiscal,
E E engineering and legal fees incurred in connection therewith.
E o
' .° The Bonds and Certificates are offered for delivery when, as and if issued and received by the Underwriters and subject to the approving
= E opinions of the Attorney General of the State of Texas and of McCall, Parkhurst & Horton L L.P., Austin, Texas, Bond Counsel. The legal
• u opinion of Bond Counsel will be printed on or attached to the Bonds and Certificates (see Appendix C - "Form of Bond Counsel's Opinions ").
— - t Certain matters will be passed upon for the Underwriters by Vinson & Elkins L.L.P., Austin. Texas, Counsel for the Underwriters. It is
m $ expected that the Bonds and Certificates will be available for delivery on July 8, 1993
. N t MORGAN STANLEY & CO.
— INCORPORATED
E o , BANC ONE CAPITAL CORPORATION LEGG MASON WOOD WALKER
INCORPORATED