Item 6FM E M O R A N D U M
April 30, 2019
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Ordinance No. 1218, Authorizing issuance of General Obligation
Refunding Bonds, Series 2019
Action
Requested: Approval of Ordinance No. 1218, authorizes the issuance
and sale of General Obligation Refunding Bonds, Series
2019.
Background
Information: City staff and our financial advisor have continued to monitor
the market to ensure that we capitalize on any refunding
opportunities. Based on the current market, it would be
advantageous for the city to refund three outstanding bonds.
•Tax and W&S System C.O. Series 2009 - $10,465,000
•Tax and W&S System C.O. Series 2010 - $520,000
•G.O Refunding Bonds, Series 2010 - $8,345,000
The refunding will result in estimated savings of
approximately $2,500,000 in debt service payments and
further provide estimated present value savings of
approximately $1,600,000. The bonds are issued and
approved by adoption of an ordinance. Approval of
Ordinance No. 1218 will set in motion the legal requirements
to obtain the proceeds to refund the bonds. After approval,
the legal documents must be reviewed by the Texas
Attorney General’s Office. The outstanding bonds would be
redeemed in early June.
Financial
Considerations: The bonds will be repaid through the City’s utility fund,
SPDC and debt service of the City’s property tax rate.
Strategic Link: F1 Adhere to financial management principles & budget;
F3 Achieve fiscal wellness standards
Item 6F
Page 2 of 2
Citizen Input/
Board Review: The Public Hearing is scheduled for May 7, 2019.
Legal Review: The law firm Fulbright and Jaworski serves as the City’s
bond counsel, and as such has prepared the Ordinance.
Alternatives: Deny ordinance and forgo the bond refunding savings.
Supporting
Documents: Ordinance No. 1218
Staff
Recommendation: Approval of Ordinance No. 1218
74388264.2/1001066940
ORDINANCE NO. 1218
AN ORDINANCE authorizing the issuance of “CITY OF SOUTHLAKE, TEXAS,
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2019”;
specifying the terms and features of said bonds; levying a continuing direct
annual ad valorem tax for the payment of said bonds; providing for the
redemption of certain outstanding obligations of the City; and resolving
other matters incident and related to the issuance, sale, payment and
delivery of said bonds, including the approval and execution of a Paying
Agent/Registrar Agreement and a Special Escrow Agreement and the
approval and distribution of a Preliminary Official Statement and an Official
Statement; and providing an effective date.
WHEREAS, the City Council (the “Council”) of the City of Southlake, Texas (the “City”)
has heretofore issued, sold, and delivered, and there is currently outstanding obligations of the
following issues or series (collectively, the “Refunded Obligations”), to wit:
(1) “City of Southlake, Texas Tax and Waterworks and Sewer System (Limited
Pledge) Revenue Certificates of Obligation, Series 2009,“ dated May 1, 2009, scheduled
to mature on February 15 in each of the years 2020 through 2029, inclusive, and
aggregating in the principal amount of $10,465,000;
(2) “City of Southlake, Texas Tax and Waterworks and Sewer System (Limited
Pledge) Revenue Certificates of Obligation, Series 2010”, dated May 1, 2010, scheduled
to mature on February 15 in each of the years 2020 through 2030, inclusive and
aggregating in the principal amount of $8,345,000; and
(3) “City of Southlake, Texas General Obligation Refunding Bonds, Series 2010”,
dated May 1, 2010, scheduled to mature on February 15 in each of the years 2020 through
2023, inclusive and aggregating in the principal amount of $520,000 (the “Refunded
Obligations”);
WHEREAS, pursuant to the provisions of Texas Government Code, Chapter 1207, as
amended, the Council is authorized to issue refunding bonds and deposit the proceeds of sale
directly with the place of payment for the Refunded Obligations, or other authorized depository,
and such deposit, when made in accordance with said statute, shall constitute the making of firm
banking and financial arrangements for the discharge and final payment of the Refunded
Obligations; and
WHEREAS, the Council hereby finds and determines that the Refunded Obligations
should be refunded at this time, and such refunding will result in the City saving approximately
$___________ in debt service payments on such indebtedness and further provide a net present
value savings of approximately $_____________; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS:
SECTION 1: Authorization - Designation - Principal Amount - Purpose. General
obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate
principal amount of $__________ to be designated and bear the title “CITY OF SOUTHLAKE,
TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2019” (hereinafter referred to
as the “Bonds”), for the purpose of providing funds for the discharge and final payment of certain
outstanding obligations of the City (identified in the preamble hereof and referred to as the
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“Refunded Obligations”) and to pay costs of issuance, in accordance with the Constitution and
laws of the State of Texas, including Texas Government Code, Chapter 1207, as amended.
SECTION 2: Fully Registered Obligations - Bond Date - Authorized Denominations-
Stated Maturities - Interest Rates. The Bonds shall be issued as fully registered obligations only,
shall be dated May 1, 2019 (the “Bond Date”), shall be in denominations of $5,000 or any integral
multiple (within a Stated Maturity) thereof, and shall become due and payable on February 15 in
each of the years and in the principal amounts (the “Stated Maturities”) and bear interest at the
rate(s) per annum in accordance with the following schedule:
Year of
Stated Maturity
Principal
Amount ($)
Interest
Rate(s) (%)
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
The Bonds shall bear interest on the unpaid principal amounts from the date of initial
delivery of the Bonds at the rate(s) per annum shown above in this Section (calculated on the
basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on
August 15 and February 15 in each year, commencing August 15, 2019, until maturity or prior
redemption.
SECTION 3: Terms of Payment - Paying Agent/Registrar. The principal of, premium, if
any, and the interest on the Bonds, due and payable by reason of maturity or otherwise, shall be
payable only to the registered owners or holders of the Bonds (hereinafter called the “Holders”)
appearing on the registration and transfer books maintained by the Paying Agent/Registrar and
the payment thereof shall be in any coin or currency of the United States of America which at the
time of payment is legal tender for the payment of public and private debts, and shall be without
exchange or collection charges to the Holders.
The selection and appointment of The Bank of New York Mellon Trust Company, N.A.,
Dallas, Texas to serve as Paying Agent/Registrar for the Bonds is hereby approved and
confirmed. Books and records relating to the registration, payment, transfer and exchange of the
Bonds (the “Security Register”) shall at all times be kept and maintained on behalf of the City by
the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions
of a “Paying Agent/Registrar Agreement,” substantially in the form attached hereto as Exhibit A,
and such reasonable rules and regulations as the Paying Agent/Registrar and the City may
prescribe. The Mayor or Mayor Pro Tem and City Secretary are authorized to execute and deliver
such Paying Agent/Registrar Agreement in connection with the delivery of the Bonds. The City
covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid
and discharged, and any successor Paying Agent/Registrar shall be a commercial bank, trust
company, financial institution or other entity qualified and authorized to serve in such capacity
and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying
74388264.2/1001066940 3
Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be
sent to each Holder by first class United States mail, postage prepaid, which notice shall also give
the address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Bonds, shall be payable at the Stated Maturities
thereof only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its
designated offices, initially in East Syracuse, New York, or, with respect to a successor Paying
Agent/Registrar, at the designated offices of such successor (the “Designated Payment/Transfer
Office”). Interest on the Bonds shall be paid to the Holders whose names appear in the Security
Register at the close of business on the Record Date (the last business day of the month next
preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by
check sent by first class United States mail, postage prepaid, to the address of the Holder
recorded in the Security Register or (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the
payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday,
or a day when banking institutions in the city where the Designated Payment/Transfer Office of
the Paying Agent/Registrar is located are authorized by law or executive order to close, then the
date for such payment shall be the next succeeding day which is not such a Saturday, Sunday,
legal holiday, or day when banking institutions are authorized to close; and payment on such date
shall have the same force and effect as if made on the original date payment was due.
In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a “Special Record Date”) will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (which shall be 15 days after the Special Record Date) shall
be sent at least five (5) business days prior to the Special Record Date by first class United States
mail, postage prepaid, to the address of each Holder appearing on the Security Register at the
close of business on the last business day next preceding the date of mailing of such notice.
SECTION 4: Redemption.
(a) Optional Redemption. The City reserves the right and option to redeem the Bonds
maturing on February 15, 2030, in whole or in part, before their scheduled maturity date, on
February 15, 2029, or on any date thereafter at a price equal to the principal amount of the Bonds
so called for redemption plus accrued interest from the most recent interest payment date on
which interest has been paid or duly provided for to the date fixed for redemption.
At least forty-five (45) days prior to an optional redemption date for the Bonds (unless a
shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify
the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated
Maturity to be optionally redeemed, and the date of redemption therefor. The decision of the City
to exercise the right to optionally redeem Bonds shall be entered in the minutes of the governing
body of the City.
(b) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same
Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat
such Bonds as representing the number of Bonds Outstanding, which is obtained by dividing the
principal amount of such Bonds by $5,000, and shall select the Bonds to be redeemed within such
Stated Maturity by lot.
74388264.2/1001066940 4
(c) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for
the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid,
in the name of the City and at the City’s expense, to each Holder of a Bond to be redeemed in
whole or in part at the address of the Holder appearing on the Security Register at the close of
business on the business day next preceding the date of mailing such notice, and any notice of
redemption so mailed shall be conclusively presumed to have been duly given irrespective of
whether received by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify
the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed,
the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the
Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and
payable on the redemption date specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue from and after the redemption
date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount
thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying
Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject
by its terms to prior redemption and has been called for redemption and notice of redemption
thereof has been duly given as hereinabove provided, such Bond (or the principal amount thereof
to be redeemed) shall become due and payable and interest thereon shall cease to accrue from
and after the redemption date therefor; provided moneys sufficient for the payment of such Bond
(or of the principal amount thereof to be redeemed) at the then applicable redemption price are
held for the purpose of such payment by the Paying Agent/Registrar.
(d) Conditional Notice of Redemption. With respect to any optional redemption of the
Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the
Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving
of such notice of redemption, such notice may state that said redemption is conditional upon the
receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such
redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption;
and, if sufficient moneys are not received, such notice shall be of no force and effect, the City
shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in
which the notice of redemption was given, to the effect that the Bonds have not been redeemed.
SECTION 5: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. A
Security Register relating to the registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the Designated Payment/Transfer Office
of the Paying Agent/Registrar, as provided herein and in accordance with the provisions of an
agreement with the Paying Agent/Registrar and such rules and regulations as the Paying
Agent/Registrar and the City may prescribe. The Paying Agent/Registrar shall obtain, record, and
maintain in the Security Register the name and address of each Holder of the Bonds issued under
and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond
may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds
of other authorized denominations upon the Security Register by the Holder, in person or by his
duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer or request for exchange duly
executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar.
Upon surrender of any Bond (other than the Initial Bond(s) referenced in Section 8 hereof)
for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees,
74388264.2/1001066940 5
one or more new Bonds of authorized denominations and having the same Stated Maturity and
of a like aggregate principal amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds (other than the Initial Bond(s) referenced in Section 8
hereof) may be exchanged for other Bonds of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the
Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the
Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Bonds are
surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Bonds to the
Holder requesting the exchange.
All Bonds issued in any transfer or exchange of Bonds shall be delivered to the Holders
at the Designated Payment/Transfer Office of the Paying Agent/Registrar or sent by United States
Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof,
the same shall be the valid obligations of the City, evidencing the same obligation to pay, and
entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or
exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or
exchange of any tax or other governmental charges required to be paid with respect to such
transfer or exchange.
Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof
are hereby defined to be “Predecessor Bonds,” evidencing all or a portion, as the case may be,
of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in
the exchange or transfer therefor. Additionally, the term “Predecessor Bonds” shall include any
mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued,
registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such
new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost,
destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to an
assignee of a Holder any Bond called for redemption, in whole or in part, within 45 days of the
date fixed for the redemption of such Bond; provided, however, such limitation on transferability
shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called
for redemption in part.
SECTION 6: Book-Entry-Only Transfers and Transactions. Notwithstanding the
provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange
of the Bonds, the City hereby approves and authorizes the use of “Book-Entry-Only” securities
clearance, settlement and transfer system provided by The Depository Trust Company, a limited
purpose trust company organized under the laws of the State of New York (“DTC”), in accordance
with the operational arrangements referenced in the Blanket Issuer Letter of Representations, by
and between the City and DTC (the “Depository Agreement”).
Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited
with DTC who shall hold said Bonds for its participants (the “DTC Participants”). While the Bonds
are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security
Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of
74388264.2/1001066940 6
DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the
“Beneficial Owners”) being recorded in the records of DTC and DTC Participants.
In the event DTC determines to discontinue serving as securities depository for the Bonds
or otherwise ceases to provide book-entry clearance and settlement of securities transactions in
general or the City determines that DTC is incapable of properly discharging its duties as
securities depository for the Bonds, the City covenants and agrees with the Holders of the Bonds
to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued
and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the
Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register
maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in
accordance with the provisions of Sections 3, 4 and 5 hereof.
SECTION 7: Execution - Registration. The Bonds shall be executed on behalf of the
City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City
Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds
bearing the manual or facsimile signatures of individuals who are or were the proper officers of
the City on the Bond Date shall be deemed to be duly executed on behalf of the City,
notwithstanding that one or more of the individuals shall cease to hold such offices at the time of
delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in Texas Government Code, Chapter
1201, as amended.
No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Bond either a certificate of registration
substantially in the form provided in Section 9(c), manually executed by the Comptroller of Public
Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration
substantially in the form provided in Section 9(d), manually executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and either such certificate duly signed
upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been
duly certified, registered, and delivered.
SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued either
(i) as a single fully registered bond in the aggregate principal amount stated in Section 1 hereof
with principal installments to become due and payable as provided in Section 2 hereof and
numbered T-1, or (ii) as multiple fully registered bonds, being one bond for each year of maturity
in the applicable principal amount and denomination and to be numbered consecutively from T-1
and upward (hereinafter called the “Initial Bond(s)”) and, in either case, the Initial Bond(s) shall
be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond(s)
shall be the Bond(s) submitted to the Office of the Attorney General of the State of Texas for
approval, certified and registered by the Office of the Comptroller of Public Accounts of the State
of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Bond(s),
the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the
designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor
definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing
applicable interest rates for transfer and delivery to the Holders named at the addresses identified
therefor; all pursuant to and in accordance with such written instructions from the initial
purchaser(s), or the designee thereof, and such other information and documentation as the
Paying Agent/Registrar may reasonably require.
SECTION 9: Forms.
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(a) Forms Generally. The Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and
the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set
forth in this Section with such appropriate insertions, omissions, substitutions, and other variations
as are permitted or required by this Ordinance and may have such letters, numbers, or other
marks of identification (including identifying numbers and letters of the Committee on Uniform
Securities Identification Procedures of the American Bankers Association) and such legends and
endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are
purchased with insurance and any reproduction of an opinion of counsel) thereon as may,
consistently herewith, be established by the City or determined by the officers executing such
Bonds as evidenced by their execution. Any portion of the text of any Bonds may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the Bond.
The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, engraved,
typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined
by the officers executing such Bonds as evidenced by their execution thereof.
(b) Form of Definitive Bond.
REGISTERED
NO. ___
REGISTERED
$___________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF SOUTHLAKE, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 2019
Bond Date:
May 1, 2019
Interest Rate:
_______%
Stated Maturity:
February 15, 20__
CUSIP No.:
__________
Registered Owner:
Principal Amount:
The City of Southlake (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the Counties of Tarrant and Denton, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the registered owner named
above, or the registered assigns thereof (the “Registered Owner”), on the Stated Maturity date
specified above the Principal Amount hereinabove stated (or so much thereof as shall not have
been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from
the interest payment date next preceding the “Registration Date” of this Bond appearing below
(unless this Bond bears a “Registration Date” as of an interest payment date, in which case it shall
bear interest from such date, or unless the “Registration Date” of this Bond is prior to the initial
interest payment date in which case it shall bear interest from the date of initial delivery of the
Bonds) at the per annum rate of interest specified above computed on the basis of a 360-day year
of twelve 30-day months; such interest being payable on February 15 and August 15 in each year,
commencing August 15, 2019, until maturity or prior redemption. Principal of this Bond shall be
payable at its Stated Maturity to the Registered Owner hereof upon presentation and surrender
at the designated offices of the Paying Agent/Registrar executing the registration certificate
appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or
one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose
74388264.2/1001066940 8
name appears on the “Security Register” maintained by the Paying Agent/Registrar at the close
of business on the “Record Date”, which is the last business day of the month next preceding
each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check
sent by first class United States mail, postage prepaid, to the address of the registered owner
recorded in the Security Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date
for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal
holiday, or a day when banking institutions in the city where the Designated Payment/Transfer
Office of the Paying Agent/Registrar is located are authorized by law or executive order to close,
then the date for such payment shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on
such date shall have the same force and effect as if made on the original date payment was due.
All payments of principal of, premium, if any, and interest on this Bond shall be without exchange
or collection charges to the owner hereof and in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public and private debts.
This Bond is one of the series specified in its title issued in the aggregate principal amount
of $________ (herein referred to as the “Bonds”) for the purpose of providing funds for the
discharge and final payment of the Refunded Obligations (identified and defined in the Ordinance
hereinafter referenced), and to pay costs of issuance, under and in strict conformity with the
Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City
Council of the City (herein referred to as the “Ordinance”).
The Bonds maturing on February 15, 2030, may be redeemed prior to their Stated
Maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral
multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February
15, 2029, or on any date thereafter, at the redemption price of par, together with accrued interest
to the date of redemption.
At least thirty days prior to the date fixed for any redemption of Bonds, the City shall cause
a written notice of such redemption to be sent by United States Mail, first class postage prepaid,
to the registered owners of each Bond to be redeemed at the address shown on the Security
Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a
Bond (or any portion of its principal sum) shall have been duly called for redemption and notice
of such redemption duly given, then upon such redemption date such Bond (or the portion of its
principal sum to be redeemed) shall become due and payable, and interest thereon shall cease
to accrue from and after the redemption date therefor; provided moneys for the payment of the
redemption price and the interest on the principal amount to be redeemed to the date of
redemption are held for the purpose of such payment by the Paying Agent/Registrar.
In the event a portion of the principal amount of a Bond is to be redeemed and the
registered owner is someone other than Cede & Co., payment of the redemption price of such
principal amount shall be made to the registered owner only upon presentation and surrender of
such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new
Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the
Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the
registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the
City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of
the registered owner within 45 days of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an exchange by the registered owner of the
unredeemed balance of a Bond redeemed in part.
74388264.2/1001066940 9
With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the
principal of and premium, if any, and interest on the Bonds to be redeemed shall have been
received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such
notice may state that said redemption is conditional upon the receipt of such moneys by the
Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction
of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not
received, such notice shall be of no force and effect, the City shall not redeem such Bonds and
the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was
given, to the effect that the Bonds have not been redeemed.
The Bonds are payable from the proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to
the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying
Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or
supplemented with or without the consent of the Holders; the rights, duties, and obligations of the
City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be
discharged at its maturity, and deemed to be no longer Outstanding thereunder; and for other
terms and provisions contained therein. Capitalized terms used herein have the meanings
assigned in the Ordinance.
This Bond, subject to certain limitations contained in the Ordinance, may be transferred
on the Security Register only upon its presentation and surrender at the Designated
Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying
Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent.
When a transfer on the Security Register occurs, one or more new fully registered Bonds of the
same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the
same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered
owner whose name appears on the Security Register (i) on the Record Date as the owner entitled
to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to
payment of principal hereof at its Stated Maturity, and (iii) on any other date as the owner for all
other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall
be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled
payment date and for thirty (30) days thereafter, a new record date for such interest payment (a
“Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for
the payment of such interest have been received from the City. Notice of the Special Record
Date and of the scheduled payment date of the past due interest (which shall be 15 days after the
Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date
by first class United States mail, postage prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the last business day next preceding the date of
mailing of such notice.
It is hereby certified, recited, represented and declared that the City is a body corporate
and political subdivision duly organized and legally existing under and by virtue of the Constitution
and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all
acts, conditions and things required to exist and be done precedent to and in the issuance of the
Bonds to render the same lawful and valid obligations of the City have been properly done, have
74388264.2/1001066940 10
happened and have been performed in regular and due time, form and manner as required by
the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed
any Constitutional or statutory limitation; and that due provision has been made for the payment
of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any
provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
The terms and provisions of this Bond and the Ordinance shall be construed in accordance with
and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly
executed under the official seal of the City as of the Bond Date.
CITY OF SOUTHLAKE, TEXAS
____________________________________
Mayor
COUNTERSIGNED:
___________________________________
City Secretary
(City Seal)
(c) Form of Registration Certificate of Comptroller of Public Accounts to appear on
Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER )
OF PUBLIC ACCOUNTS ) REGISTER NO. _____________
THE STATE OF TEXAS )
I HEREBY CERTIFY that this Bond has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this __________________________.
Comptroller of Public Accounts
of the State of Texas
(SEAL)
74388264.2/1001066940 11
(d) Form of Certificate of Paying Agent/Registrar to appear on Definitive Bonds only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered under the provisions of the within-
mentioned Ordinance; the bond or bonds of the above entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar.
The designated offices of the Paying Agent/Registrar in East Syracuse, New York is the
“Designated Payment/Transfer Office” for this Bond.
THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., Dallas, Texas,
as Paying Agent/Registrar
Registration date:
By:
Authorized Signature
(e) Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print
or typewrite name, address, and zip code of transferee):
(Social Security or other identifying number ____________________________) the within
Bond and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for registration thereof, with full power of
substitution in the premises.
DATED:
Signature guaranteed:
NOTICE: The signature on this
assignment must correspond with the
name of the registered owner as it
appears on the face of the within Bond
in every particular.
74388264.2/1001066940 12
(f) The Initial Bond(s) shall be in the form set forth in paragraph (b) of this Section,
except that the form of the single fully registered Initial Bond shall be modified as follows:
Heading and first paragraph shall read as follows:
REGISTERED
NO. T-1
REGISTERED
$_________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF SOUTHLAKE, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 2019
Bond Date: May 1, 2019
Registered Owner:
Principal Amount:
The City of Southlake (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the Counties of Tarrant and Denton, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the registered owner named
above, or the registered assigns thereof (the “Registered Owner”), the Principal Amount
hereinabove stated on February 15 in each of the years and in the principal installments in
accordance with the following schedule:
YEAR OF
STATED MATURITY
PRINCIPAL
INSTALLMENTS ($)
INTEREST
RATES (%)
(Information to be inserted from schedule in Section 2 hereof)
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amount hereof from the date of initial delivery of the Bonds at the per annum
rates of interest specified above computed on the basis of a 360-day year of twelve 30-day
months; such interest being payable on February 15 and August 15 in each year, commencing
August 15, 2019, until maturity or prior redemption. Principal installments of this Bond are payable
on the Stated Maturity dates to the registered owner hereof by The Bank of New York Mellon
Trust Company, N.A., Dallas, Texas (the “Paying Agent/Registrar”), upon its presentation and
surrender at its designated offices, initially in East Syracuse, New York, or, with respect to a
successor paying agent/registrar, at the designated office of such successor (the “Designated
Payment/Transfer Office”). Interest is payable to the registered owner of this Bond whose name
appears on the “Security Register” maintained by the Paying Agent/Registrar at the close of
business on the “Record Date,” which is the last business day of the month next preceding each
interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent by
first class United States mail, postage prepaid, to the address of the registered owner recorded
in the Security Register or by such other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the registered owner. If the date for the payment
of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day
when banking institutions in the city where the Designated Payment/Transfer Office of the Paying
Agent/Registrar is located are authorized by law or executive order to close, then the date for
such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to close; and payment on such date shall
have the same force and effect as if made on the original date payment was due. All payments
of principal of, premium, if any, and interest on this Bond shall be without exchange or collection
74388264.2/1001066940 13
charges to the owner hereof and in any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public and private debts.
SECTION 10: Levy of Taxes. To provide for the payment of the “Debt Service
Requirements” of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their
payment at maturity or redemption or a sinking fund of 2% (whichever amount is the greater),
there is hereby levied, and there shall be annually assessed and collected in due time, form, and
manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such
tax hereby levied on each one hundred dollars’ valuation of taxable property in the City for the
Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and
sufficient to provide funds each year to pay the principal of and interest on said Bonds while
Outstanding; full allowance being made for delinquencies and costs of collection; separate books
and records relating to the receipt and disbursement of taxes levied, assessed and collected for
and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds
are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on
the Bonds shall be deposited to the credit of a “Special 2017 Bond Account” (the “Interest and
Sinking Fund”) maintained on the records of the City and deposited in a special fund maintained
at an official depository of the City’s funds; and such tax hereby levied, and to be assessed and
collected annually, is hereby pledged to the payment of the Bonds.
The Mayor, Mayor Pro Tem, City Manager, City Secretary and Chief Financial Officer of
the City, individually or jointly, are hereby authorized and directed to cause to be transferred to
the Paying Agent/Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund,
amounts sufficient to fully pay and discharge promptly each installment of interest and principal
of the Bonds as the same accrues or matures; such transfers of funds to be made in such manner
as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each
principal and interest payment date for the Bonds.
The City has sufficient current funds available and such funds are hereby appropriated to
make the payments to become due on the Bonds on August 15, 2019, and the Mayor, Mayor Pro
Tem, City Manager, Chief Financial Officer and City Secretary of the City, individually or jointly,
are hereby authorized and directed to transfer and deposit in the Interest and Sinking Fund such
amount of current funds which will be sufficient to pay the amounts to become due on the Bonds
on August 15, 2019.
SECTION 11: Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall be
mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a
replacement Bond of like form and tenor, and in the same denomination and bearing a number
not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in
lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the
City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence
satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of
the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of
indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar
harmless. All expenses and charges associated with such indemnity and with the preparation,
execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated,
or destroyed, lost or stolen.
Every replacement Bond issued pursuant to this Section shall be a valid and binding
obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all
other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the
destroyed, lost, or stolen Bonds.
74388264.2/1001066940 14
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost or stolen Bonds.
SECTION 12: Satisfaction of Obligation of City. If the City shall pay or cause to be paid,
or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on
the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes
levied under this Ordinance and all covenants, agreements, and other obligations of the City to
the Holders shall thereupon cease, terminate, and be discharged and satisfied.
Bonds or any principal amount(s) thereof shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when (i) money sufficient to pay in
full such Bonds or the principal amount(s) thereof at maturity, together with all interest due
thereon, shall have been irrevocably deposited with and held in trust by the Paying
Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been
irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent,
which Government Securities have been certified by an independent accounting firm to mature
as to principal and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay
when due the principal of and interest on such Bonds. The City covenants that no deposit of
moneys or Government Securities will be made under this Section and no use made of any such
deposit which would cause the Bonds to be treated as “arbitrage bonds” within the meaning of
Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant
thereto.
Any moneys so deposited with the Paying Agent/Registrar, or an authorized escrow agent,
and all income from Government Securities held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, pursuant to this Section which is not required for the payment of the
Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys
have been so deposited shall be remitted to the City or deposited as directed by the City.
Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of
and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated
Maturity shall upon the request of the City be remitted to the City against a written receipt therefor.
Notwithstanding the above and foregoing, any remittance of funds from the Paying
Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State
of Texas.
The term “Government Securities”, as used herein, shall mean (i) direct noncallable
obligations of the United States of America, including obligations the principal of and interest on
which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations
of an agency or instrumentality of the United States, including obligations unconditionally
guaranteed or insured by the agency or instrumentality and, on the date of their acquisition or
purchase by the City, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent, (iii) noncallable obligations of a state or an agency
or a county, municipality, or other political subdivision of a state that have been refunded and that,
on the date of their acquisition or purchase by the City, are rated as to investment quality by a
nationally recognized investment rating firm not less than AAA or its equivalent and (iv) any other
then authorized securities or obligations that may be used to defease obligations such as the
Bonds under the then applicable laws of the State of Texas.
SECTION 13: Ordinance a Contract - Amendments - Outstanding Bonds. This Ordinance
shall constitute a contract with the Holders from time to time, be binding on the City, and shall not
74388264.2/1001066940 15
be amended or repealed by the City so long as any Bond remains Outstanding except as
permitted in this Section and in Section 28 hereof. The City may, without the consent of or notice
to any Holders, from time to time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency,
or formal defect or omission herein. In addition, the City may, with the consent of Holders holding
a majority in aggregate principal amount of the Bonds then Outstanding, amend, add to, or rescind
any of the provisions of this Ordinance; provided that, without the consent of all Holders of
Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times
of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal
amount thereof, or the rate of interest thereon, or in any other way modify the terms of payment
of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond
over any other Bond, or (3) reduce the aggregate principal amount of Bonds required to be held
by Holders for consent to any such amendment, addition, or rescission.
The term “Outstanding” when used in this Ordinance with respect to Bonds means, as of
the date of determination, all Bonds theretofore issued and delivered under this Ordinance,
except:
(1) those Bonds cancelled by the Paying Agent/Registrar or delivered
to the Paying Agent/Registrar for cancellation;
(2) those Bonds deemed to be duly paid by the City in accordance with
the provisions of Section 12 hereof; and
(3) those mutilated, destroyed, lost, or stolen Bonds which have been
replaced with Bonds registered and delivered in lieu thereof as provided in
Section 11 hereof.
SECTION 14: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section, the following terms have the following
meanings:
“Closing Date” means the date on which the Bonds are first authenticated
and delivered to the initial purchasers against payment therefor.
“Code” means the Internal Revenue Code of 1986, as amended by all
legislation, if any, effective on or before the Closing Date.
“Computation Date” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of
the Regulations, and any replacement proceeds as defined in Section 1.148-1(c)
of the Regulations, of the Bonds.
“Investment” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Nonpurpose Investment” means any investment property, as defined in
Section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested
and which is not acquired to carry out the governmental purposes of the Bonds.
74388264.2/1001066940 16
“Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Regulations” means any proposed, temporary, or final Income Tax
Regulations issued pursuant to Sections 103 and 141 through 150 of the Code,
and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds.
Any reference to any specific Regulation shall also mean, as appropriate, any
proposed, temporary or final Income Tax Regulation designed to supplement,
amend or replace the specific Regulation referenced.
“Yield” of (1) any Investment has the meaning set forth in Section 1.148-5
of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-
4 of the Regulations.
(b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed directly or indirectly with Gross Proceeds)
in a manner which if made or omitted, respectively, would cause the interest on any Bond to
become includable in the gross income, as defined in Section 61 of the Code, of the owner thereof
for federal income tax purposes. Without limiting the generality of the foregoing, unless and until
the City receives a written opinion of counsel nationally recognized in the field of municipal bond
law to the effect that failure to comply with such covenant will not adversely affect the exemption
from federal income tax of the interest on any Bond, the City shall comply with each of the specific
covenants in this Section.
(c) No Private Use or Private Payments. Except as permitted by Section 141 of the
Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated
Maturity of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds (including property financed with
Gross Proceeds of the Refunded Obligations), and not use or permit the use of
such Gross Proceeds (including all contractual arrangements with terms different
than those applicable to the general public) or any property acquired, constructed
or improved with such Gross Proceeds in any activity carried on by any person or
entity (including the United States or any agency, department and instrumentality
thereof) other than a state or local government, unless such use is solely as a
member of the general public; and
(2) not directly or indirectly impose or accept any charge or other
payment by any person or entity who is treated as using Gross Proceeds of the
Bonds or any property the acquisition, construction or improvement of which is to
be financed or refinanced directly or indirectly with such Gross Proceeds (including
property financed with Gross Proceeds of the Refunded Obligations), other than
taxes of general application within the City or interest earned on investments
acquired with such Gross Proceeds pending application for their intended
purposes.
(d) No Private Loan. Except to the extent permitted by Section 141 of the Code and
the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to
make or finance loans to any person or entity other than a state or local government. For
74388264.2/1001066940 17
purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a
person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is
sold or leased to such person or entity in a transaction which creates a debt for federal income
tax purposes; (2) capacity in or service from such property is committed to such person or entity
under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens
and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or
improved with such Gross Proceeds are otherwise transferred in a transaction which is the
economic equivalent of a loan.
(e) Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of the
Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final
Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or
use Gross Proceeds to replace money so invested), if as a result of such investment the Yield
from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced
thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds.
(f) Not Federally Guaranteed. Except to the extent permitted by Section 149(b) of the
Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action
which would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of
the Code and the Regulations and rulings thereunder.
(g) Information Report. The City shall timely file the information required by Section
149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in
such place as the Secretary may prescribe.
(h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section
148(f) of the Code and the Regulations and rulings thereunder:
(1) The City shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and
apart from all other funds (and receipts, expenditures and investments thereof) and
shall retain all records of accounting for at least six years after the day on which
the last outstanding Bond is discharged. However, to the extent permitted by law,
the City may commingle Gross Proceeds of the Bonds with other money of the
City, provided that the City separately accounts for each receipt and expenditure
of Gross Proceeds and the obligations acquired therewith.
(2) Not less frequently than each Computation Date, the City shall
calculate the Rebate Amount in accordance with rules set forth in Section 148(f)
of the Code and the Regulations and rulings thereunder. The City shall maintain
such calculations with its official transcript of proceedings relating to the issuance
of the Bonds until six years after the final Computation Date.
(3) As additional consideration for the purchase of the Bonds by the
Purchasers and the loan of the money represented thereby and in order to induce
such purchase by measures designed to insure the excludability of the interest
thereon from the gross income of the owners thereof for federal income tax
purposes, the City shall pay to the United States out of its general fund, other
appropriate fund, or, if permitted by applicable Texas statute, regulation or opinion
of the Attorney General of the State of Texas, the Interest and Sinking Fund, the
amount that when added to the future value of previous rebate payments made for
the Bonds equals (i) in the case of a Final Computation Date as defined in Section
74388264.2/1001066940 18
1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate
Amount on such date; and (ii) in the case of any other Computation Date, ninety
percent (90%) of the Rebate Amount on such date. In all cases, the rebate
payments shall be made at the times, in the installments, to the place and in the
manner as is or may be required by Section 148(f) of the Code and the Regulations
and rulings thereunder, and shall be accompanied by Form 8038-T or such other
forms and information as is or may be required by Section 148(f) of the Code and
the Regulations and rulings thereunder.
(4) The City shall exercise reasonable diligence to assure that no errors
are made in the calculations and payments required by paragraphs (2) and (3),
and if an error is made, to discover and promptly correct such error within a
reasonable amount of time thereafter (and in all events within one hundred eighty
(180) days after discovery of the error), including payment to the United States of
any additional Rebate Amount owed to it, interest thereon, and any penalty
imposed under Section 1.148-3(h) of the Regulations.
(i) Not to Divert Arbitrage Profits. Except to the extent permitted by Section 148 of
the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the
earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces
the amount required to be paid to the United States pursuant to Subsection (h) of this Section
because such transaction results in a smaller profit or a larger loss than would have resulted if
the transaction had been at arm’s length and had the Yield of the Bonds not been relevant to
either party.
(j) Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, City
Manager and Chief Financial Officer, either or any combination of them, to make elections
permitted or required pursuant to the provisions of the Code or the Regulations, as they deem
necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or
similar or other appropriate certificate, form or document.
(k) Bonds Not Hedge Bonds. (1) At the time the original obligations being refunded
by the Bonds were issued, the City reasonably expected to spend at least 85% of the spendable
proceeds of such obligations within three years after such obligations were issued and (2) not
more than 50% of the proceeds of the original obligations being refunded by the Bonds were
invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4
years or more.
(l) Current Refunding of the Refunded Obligations. The Bonds are a current
refunding of the Refunded Obligations in that the Refunded Obligations are to be paid and
redeemed in full within 90 days of the delivery date of the Bonds.
SECTION 15: Sale of Bonds – Official Statement Approval. Pursuant to a public sale for
the Bonds, the bid submitted by _______________ (herein collectively referred to as the
“Purchaser”) is declared to be the best bid received producing the lowest true interest cost rate to
the City, and the sale of the Bonds to said Purchasers at the price of par plus a cash premium of
$_________ is hereby determined to be in the best interests of the City and is approved and
confirmed. Delivery of the Bonds to the Purchasers shall occur as soon as possible upon payment
being made therefor in accordance with the terms of sale. The Initial Bond shall be registered in
the name as provided in the winning bid.
74388264.2/1001066940 19
Furthermore, the use of the Preliminary Official Statement by the Purchasers in connection
with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all
respects. The final Official Statement, which reflects the terms of sale (together with such
changes approved by the Mayor, Mayor Pro Tem, City Manager, Chief Financial Officer or City
Secretary, any one or more of said officials), shall be and is hereby in all respects approved and
the Purchasers are hereby authorized to use and distribute said final Official Statement, dated
May 7, 2019, in the reoffering, sale and delivery of the Bonds to the public. The Mayor or Mayor
Pro Tem and City Secretary are further authorized and directed to cause to be delivered for and
on behalf of the City copies of said Official Statement in final form as may be required by the
Purchasers, and such final Official Statement shall be deemed to be approved by the Council and
constitute the Official Statement authorized for distribution and use by the Purchasers.
SECTION 16: Control and Custody of Bonds. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas, including the printing and supply of
definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the
approval thereof by the Attorney General, the registration thereof by the Comptroller of Public
Accounts and the delivery thereof to the Purchasers.
SECTION 17: Proceeds of Sale. Immediately following the delivery of the Bonds, the
proceeds of sale (less those proceeds of sale designated to pay costs of issuance and additional
proceeds being deposited to the Interest and Sinking Fund) shall be deposited with the Escrow
Agent (as defined in Section 18 hereof) for application and disbursement in accordance with the
provisions of the Escrow Agreement (as defined in Section 18 hereof). The proceeds of sale of
the Bonds not so deposited with the Escrow Agent for the refunding of the Refunded Bonds shall
be disbursed for payment of costs of issuance or deposited in the Interest and Sinking Fund for
the Bonds.
Additionally, on or immediately prior to the date of the delivery of the Bonds, the Chief
Financial Officer or other appropriate City official shall cause to be transferred in immediately
available funds to the Escrow Agent from moneys on deposit in the interest and sinking fund
maintained for the payment of the Refunded Obligations the sum of $________ to accomplish the
refunding.
SECTION 18: Escrow Agreement Approval and Execution; Redemption of Refunded
Obligations.
The Escrow Agreement (the “Escrow Agreement”) by and between the City and The Bank
of New York Mellon Trust Company, N.A. (the “Escrow Agent”), attached hereto as Exhibit B and
incorporated herein by reference as a part of this Ordinance for all purposes, is hereby approved
as to form and content, and such Escrow Agreement in substantially the form and substance
attached hereto, together with such changes or revisions as may be necessary to accomplish the
refunding or benefit the City, is hereby authorized to be executed by the Mayor and City Secretary
for and on behalf of the City and as the act and deed of this City Council; and such Escrow
Agreement as executed by said officials shall be deemed approved by the City Council and
constitute the Escrow Agreement herein approved.
Furthermore, appropriate officials of the City in cooperation with the Escrow Agent are
hereby authorized and directed to make the necessary arrangements on the day of delivery of
the Bonds to the Underwriters for the purchase of any federal securities referenced in the Escrow
Agreement and the delivery thereof to the Escrow Agent and for deposit of certain proceeds of
sale of the Bonds and any federal securities to the credit of the “SPECIAL 2019 CITY OF
74388264.2/1001066940 20
SOUTHLAKE, TEXAS, GENERAL OBLIGATION REFUNDING BOND ESCROW FUND” (the
“Escrow Fund”), including the execution of subscription forms for the purchase and issuance of
any “United States Treasury Securities State and Local Government Series”; all as contemplated
and provided in Texas Government Code, Chapter 1207, as amended, this Ordinance and the
Escrow Agreement.
The Refunded Obligations shall be redeemed and the same are hereby called for
redemption on July 8, 2019, at the price of par and accrued interest to the date of redemption.
The City Secretary is hereby authorized and directed to file a copy of this Ordinance, together
with a suggested form of notice of redemption to be sent to holders of the Refunded Obligations,
with The Bank of New York Mellon Trust Company, N.A. (successor to The Bank of New York
Trust Company, N.A.), in accordance with the redemption provisions applicable to such
obligations; such suggested form of notice of redemption being attached hereto as Exhibit C,
Exhibit D and Exhibit E and incorporated herein by reference as a part of this Ordinance for all
purposes.
The redemption of the Refunded Obligations described above being associated with the
refunding of such Refunded Obligations, the approval, authorization and arrangements herein
given and provided for the redemption of such Refunded Obligations on the redemption date
designated therefor and in the manner provided shall be irrevocable upon the issuance and
delivery of the Bonds; and the City Secretary is hereby authorized and directed to make all
arrangements necessary to notify the holders of such Refunded Obligations of the City’s decision
to redeem such Refunded Obligations on the date and in the manner herein provided and in
accordance with the ordinance authorizing the issuance of such Refunded Obligations and this
Ordinance.
SECTION 19: Notices to Holders - Waiver. Wherever this Ordinance provides for notice
to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and sent by first class United States mail, postage prepaid, to the address
of each Holder appearing in the Security Register at the close of business on the business day
next preceding the mailing of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such notice
to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of
such notice with respect to all other Bonds. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder entitled to receive such notice, either
before or after the event with respect to which such notice is given, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying
Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
SECTION 20: Cancellation. All Bonds surrendered for payment, transfer, exchange, or
replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and,
if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time
deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered
and delivered which the City may have acquired in any manner whatsoever, and all Bonds so
delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held
by the Paying Agent/Registrar shall be returned to the City.
SECTION 21: Legal Opinion. The obligation of the Purchasers to accept delivery of the
Bonds is subject to being furnished a final legal opinion of Norton Rose Fulbright US LLP, Bond
74388264.2/1001066940 21
Counsel to the City, approving such Bonds as to their validity, said opinion to be dated and
delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction
of said opinion is hereby authorized to be printed on the definitive Bonds or an executed
counterpart thereof shall accompany the global Bonds deposited with DTC.
SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof
and neither the City nor attorneys approving the Bonds as to legality are to be held responsible
for CUSIP numbers incorrectly printed or typed on the definitive Bonds.
SECTION 23: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is
intended or shall be construed to confer upon any person other than the City, the Paying
Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by
reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar
and the Holders.
SECTION 24: Inconsistent Provisions. All ordinances, orders or resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 25: Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 26: Effect of Headings. The Section headings herein are for convenience of
reference only and shall not affect the construction hereof.
SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural number
shall be considered to include the singular, and words of the masculine, feminine or neuter gender
shall be considered to include the other genders.
SECTION 28: Continuing Disclosure Undertaking.
(a) Definitions. As used in this Section, the following terms have the meanings
ascribed to such terms below:
“Financial Obligation” means a (a) debt obligation; (b) derivative instrument
entered into in connection with, or pledged as security or a source of payment for,
an existing or planned debt obligation; or (c) guarantee of a debt obligation or any
such derivative instrument; provided that “financial obligation” shall not include
municipal securities as to which a final official statement (as defined in the Rule)
has been provided to the MSRB consistent with the Rule.
“MSRB” means the Municipal Securities Rulemaking Board.
“Rule” means SEC Rule 15c2-12, as amended from time to time.
“SEC” means the United States Securities and Exchange Commission.
74388264.2/1001066940 22
(b) Annual Reports. The City shall provide annually to the MSRB (1) within six months
after the end of each fiscal year, beginning in or after 2019, financial information and operating
data with respect to the City of the general type included in Tables 1 through 6 and 8 through 15
in the Official Statement, and (2) within twelve months after the end of each fiscal year ending in
or after 2019, audited financial statements of the City. Any financial statements so provided shall
be prepared in accordance with the accounting principles described in Appendix B to the Official
Statement, or such other accounting principles as the City may be required to employ from time
to time pursuant to state law or regulation, and audited, if the City commissions an audit of such
statements and the audit is completed within the period during which they must be provided. If
audited financial statements are not available within 12 months after the end of any fiscal year,
the City will provide unaudited financial statements by the required time, and audited financial
statements when and if such audited financial statements become available.
If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of
the new fiscal year end) prior to the next date by which the City otherwise would be required to
provide financial information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may
be set forth in full in one or more documents or may be included by specific reference to any
document available to the public on the MSRB’s Internet Web site or filed with the SEC.
(c) Notice of Certain Events. The City shall provide notice of any of the following
events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business
days after occurrence of the event:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-
TEB), or other material notices or determinations with respect to the tax status of
the Bonds, or other material events affecting the tax status of the Bonds;
7. Modifications to rights of holders of the Bonds, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Bonds, if
material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur
as described below;
13. The consummation of a merger, consolidation, or acquisition involving the City or
the sale of all or substantially all of its assets, other than in the ordinary course of
business, the entry into of a definitive agreement to undertake such an action or
the termination of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a
trustee, if material;
15. Incurrence of a Financial Obligation of the City, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a
74388264.2/1001066940 23
Financial Obligation of the City, any of which affect security holders, if material;
and
16. Default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a Financial Obligation of the City, any of which
reflect financial difficulties.
For these purposes, (a) any event described in the immediately preceding paragraph 12
is considered to occur when any of the following occur: the appointment of a receiver, fiscal
agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or
in any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the City and (b) the City intends the words used in the immediately preceding
paragraphs 15 and 16 and the definition of Financial Obligation in this Section to have the
meanings ascribed to them in SEC Release No. 34-83885, dated August 20, 2018.
The City shall notify the MSRB, in a timely manner, of any failure by the City to provide
financial information or operating data in accordance with subsection (b) of this Section by the
time required by such Section.
(d) Filings with the MSRB. All financial information, operating data, financial
statements, notices and other documents provided to the MSRB in accordance with this Section
shall be provided in an electronic format prescribed by the MSRB and shall be accompanied by
identifying information as prescribed by the MSRB.
(e) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe
and perform the covenants specified in this Section while, but only while, the City remains an
“obligated person” with respect to the Bonds within the meaning of the Rule, except that the City
in any event will give the notice required by subsection (c) hereof of any Bond calls and
defeasance that cause the City to be no longer such an “obligated person.”
The provisions of this Section are for the sole benefit of the Holders and beneficial owners
of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal
or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide
only the financial information, operating data, financial statements, and notices which it has
expressly agreed to provide pursuant to this Section and does not hereby undertake to provide
any other information that may be relevant or material to a complete presentation of the City’s
financial results, condition, or prospects or hereby undertake to update any information provided
in accordance with this Section or otherwise, except as expressly provided herein. The City does
not make any representation or warranty concerning such information or its usefulness to a
decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR
BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT,
FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY,
WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON,
IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE
LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE.
74388264.2/1001066940 24
No default by the City in observing or performing its obligations under this Section shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
Notwithstanding anything to the contrary in this Ordinance, the provisions of this Section
may be amended by the City from time to time to adapt to changed circumstances resulting from
a change in legal requirements, a change in law, or a change in the identity, nature, status, or
type of operations of the City, but only if (1) the provisions of this Section, as so amended, would
have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in
compliance with the Rule, taking into account any amendments or interpretations of the Rule to
the date of such amendment, as well as such changed circumstances, and (2) either (a) the
Holders of a majority in aggregate principal amount (or any greater amount required by any other
provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds
consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally
recognized bond counsel) determines that such amendment will not materially impair the interests
of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be
amended from time to time or repealed by the City if the SEC amends or repeals the applicable
provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid,
but only if and to the extent that reservation of the City’s right to do so would not prevent an
underwriter of the initial public offering of the Bonds from lawfully purchasing or selling Bonds in
such offering. If the City so amends the provisions of this Section, it shall include with any
amended financial information or operating data next provided pursuant to subsection (b) of this
Section an explanation, in narrative form, of the reasons for the amendment and of the impact of
any change in the type of financial information or operating data so provided.
SECTION 29: Severability. If any provision of this Ordinance or the application thereof to
any circumstance shall be held to be invalid, the remainder of this Ordinance and the application
thereof to other circumstances shall nevertheless be valid, and this Council hereby declares that
this Ordinance would have been enacted without such invalid provision.
SECTION 30: Further Procedures. Any one or more of the Mayor, Mayor Pro Tem, City
Manager, Chief Financial Officer and City Secretary are hereby expressly authorized, empowered
and directed from time to time and at any time to do and perform all such acts and things and to
execute, acknowledge and deliver in the name and on behalf of the City all agreements,
instruments, certificates or other documents, whether mentioned herein or not, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance and the
issuance, sale and delivery of the Bonds. In addition, prior to the delivery of the Bonds, the Mayor,
Mayor Pro Tem, City Manager, Chief Financial Officer or Bond Counsel to the City are each
hereby authorized and directed to approve any changes or corrections to this Ordinance or to any
of the documents authorized and approved by this Ordinance: (i) in order to cure any ambiguity,
formal defect, or omission in this Ordinance or such other document, or (ii) as requested by the
Attorney General of the State of Texas or his representative to obtain the approval of the Bonds
by the Attorney General. In the event that any officer of the City whose signature shall appear on
any document shall cease to be such officer before the delivery of such document, such signature
nevertheless shall be valid and sufficient for all purposes the same as if such officer had remained
in office until such delivery.
SECTION 31: Incorporation of Findings and Determinations. The findings and
determinations of this Council contained in the preamble hereof are hereby incorporated by
74388264.2/1001066940 25
reference and made a part of this Ordinance for all purposes as if the same were restated in full
in this Section.
SECTION 32: Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Texas Government Code, Chapter 551, as amended.
SECTION 33: Effective Date. In accordance with the provisions of Texas Government
Code, Section 1201.028, as amended, this Ordinance shall be in force and effect from and after
its passage on the date shown below and it is so ordained.
[Remainder of page left blank intentionally]
74388264.2/1001066940 S-1
PASSED AND ADOPTED, May 7, 2019.
CITY OF SOUTHLAKE, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
APPROVED AS TO FORM:
___________________________________
City Attorney
74388264.2/1001066940 A-1
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
74388264.2/1001066940 B-1
EXHIBIT B
SPECIAL ESCROW AGREEMENT
74388264.2/1001066940 C-1
EXHIBIT C
NOTICE OF REDEMPTION
CITY OF SOUTHLAKE, TEXAS
TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION
SERIES 2009
Dated May 1, 2009
NOTICE IS HEREBY GIVEN that the certificates of obligation of the above series maturing
on and after February 15, 2020, and aggregating in the principal amount of $10,465,000, have
been called for redemption on July 8, 2019 at the redemption price of par and accrued interest to
the date of redemption, such certificates being identified as follows:
Year of
Maturity
Principal
Amount ($)
CUSIP
Number
2020 860,000
2021 900,000
2022 940,000
2023 980,000
2024 1,015,000
2025 1,055,000
2026 1,105,000
2027 1,155,000
2028 1,200,000
2029 1,255,000
ALL SUCH CERTIFICATES shall become due and payable on July 8, 2019, and interest
thereon shall cease to accrue from and after said redemption date and payment of the redemption
price of said certificates shall be paid to the registered owners of the certificates only upon
presentation and surrender thereof to The Bank of New York Mellon Trust Company, N.A. at its
designated offices at the following addresses:
First Class/
Registered/Certified: Express Delivery/Courier: By Hand Only:
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
P.O. Box 396
East Syracuse, NY 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
111 Sanders Creek Pkwy.
East Syracuse, NY 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
Corporate Trust Window
101 Barclay Street
1st Floor East
New York, NY 10286
THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the
redemption of said certificates and pursuant to an ordinance by the City Council of the City of
Southlake, Texas.
The Bank of New York Mellon Trust Company, N.A.
2001 Bryan Street, 10th Floor
Dallas, Texas 75201
74388264.2/1001066940 D-1
EXHIBIT D
NOTICE OF REDEMPTION
CITY OF SOUTHLAKE, TEXAS
TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION
SERIES 2010
Dated May 1, 2010
NOTICE IS HEREBY GIVEN that the certificates of obligation of the above series maturing
on and after February 15, 2020, and aggregating in the principal amount of $8,345,000, have
been called for redemption on July 8, 2019 at the redemption price of par and accrued interest to
the date of redemption, such certificates being identified as follows:
Year of
Maturity
Principal
Amount ($)
CUSIP
Number
2020 620,000
2021 640,000
2022 670,000
2023 695,000
2024 720,000
2025 755,000
2026 780,000
2027 815,000
2028 845,000
2029 885,000
2030 920,000
ALL SUCH CERTIFICATES shall become due and payable on July 8, 2019, and interest
thereon shall cease to accrue from and after said redemption date and payment of the redemption
price of said certificates shall be paid to the registered owners of the certificates only upon
presentation and surrender thereof to The Bank of New York Mellon Trust Company, N.A. at its
designated offices at the following addresses:
First Class/
Registered/Certified: Express Delivery/Courier: By Hand Only:
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
P.O. Box 396
East Syracuse, NY 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
111 Sanders Creek Pkwy.
East Syracuse, NY 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
Corporate Trust Window
101 Barclay Street
1st Floor East
New York, NY 10286
THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the
redemption of said certificates and pursuant to an ordinance by the City Council of the City of
Southlake, Texas.
The Bank of New York Mellon Trust Company, N.A.
2001 Bryan Street, 10th Floor
Dallas, Texas 75201
74388264.2/1001066940 E-1
EXHIBIT E
NOTICE OF REDEMPTION
CITY OF SOUTHLAKE, TEXAS
GENERAL OBLIGATION REFUNDING BONDS
SERIES 2010
Dated May 1, 2010
NOTICE IS HEREBY GIVEN that the bonds of the above series maturing on and after
February 15, 2020, and aggregating in the principal amount of $520,000, have been called for
redemption on July 8, 2019 at the redemption price of par and accrued interest to the date of
redemption, such bonds being identified as follows:
Year of
Maturity
Principal
Amount ($)
CUSIP
Number
2020 125,000
2021 125,000
2022 130,000
2023 140,000
ALL SUCH BONDS shall become due and payable on July 8, 2019, and interest thereon
shall cease to accrue from and after said redemption date and payment of the redemption price
of said bonds shall be paid to the registered owners of the bonds only upon presentation and
surrender thereof to The Bank of New York Mellon Trust Company, N.A. at its designated offices
at the following addresses:
First Class/
Registered/Certified: Express Delivery/Courier: By Hand Only:
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
P.O. Box 396
East Syracuse, NY 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
111 Sanders Creek Pkwy.
East Syracuse, NY 13057
The Bank of New York Mellon
Trust Company, N.A.
Global Corporate Trust
Corporate Trust Window
101 Barclay Street
1st Floor East
New York, NY 10286
THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the
redemption of said bonds and pursuant to an ordinance by the City Council of the City of
Southlake, Texas.
The Bank of New York Mellon Trust Company, N.A.
2001 Bryan Street, 10th Floor
Dallas, Texas 75201