R-98-04-23-10B1 - 4/23/1998WHEREAS, the City Council of the City of Round Rock, Texas
desires to negotiate the sale of its $2,550,000 Combination Tax and
Revenue Certificates of Obligation, Series 1998 and $8,910,000
General Obligation Bonds, Series 1998, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That First Southwest Company, Austin, Texas, is authorized and
requested to prepare a Preliminary Official Statement containing
financial, economic and other data necessary and desirable to
facilitate the sale of said Certificates and Bonds and to
distribute said Preliminary Official Statement to the prospective
underwriters of the Certificates and Bonds.
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.
RESOLVED this 23rd day of April, 198.
ATTEST:
LAND, City Secretary
1;\ WPOOCS \RBSOLITTI \RB0923B1.MPn /scg
RESOLUTION NO. R- 98- 04- 23 -10B1
CHARLES CULMR, Mayor
City of Round Rock, Texas
DATE: April 17, 1998
SUBJECT: City Council Meeting, April 23, 1998
ITEM: 10. B. 1 Consider a resolution authorizing First Southwest Company to
proceed with the preparation of bond offering documents for
$8.91 million in General Obligation Bonds, Series 1998 and
$2.55 million in Certificates of Obligation, Series 1998.
The General Obligation Bonds were authorized by the voters in 1996 and
will fund improvements for fire services, parks and recreation, residential
streets and a public works maintenance facility. The Certificates of
Obligation will provide the balance of funding required for the $4.8 million
Recreation Center to be located on Gattis School Road. Staff Resource
Person: David Kautz, Finance Director
The City currently has $55 million in outstanding general obligation bonds, certificates of obligation
and capital leases. The underlying rating for the City's outstanding debt is A+ by Standard and
Poors and Al by Moody's.
The issuance of these obligations is not expected to adversely affect the City's excellent credit
rating because of the City's strong financial position and debt capacity. While the City's per capita
outstanding debt is relatively high, the City's favorable debt to assessed valuation ratio, an
important ratings guideline, further indicates the City's creditworthiness.
It is estimated that the obligations will affect the property tax rate by approximately 1/3 cent per
million dollars issued, for a total estimated effect of 3.4 cents on the tax rate. However, because of
continued growth in new property, the overall tax rate is expected to be in the 38 cent to 39 cent
range for next year (including these obligations).