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Item 7DCity of Southlake, Texas MEMORANDUM TO: Shana Yelverton, City Manager FROM: Sharen Elam, Director of Finance Ext. 1713 SUBJECT: Ordinance No. 885, Consider all matters incident and related to the issuance and sale of "City of Southlake, Texas, General Obligation Refunding Bonds, Series 2005," including the adoption of an ordinance authorizing the issuance of such bonds and providing for the redemption of the obligations being Action Requested: Approval of Ordinance No. 885 authorizes the issuance and sale of General Obligation Refunding Bonds, Series 2005. 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 the bonds noted. The refunding will result in the City saving approximately $2,374,135 in debt service payments and further provide present value savings of approximately $1,678,963. The certificates are issued and approved by adoption of an ordinance. Approval of Ordinance No. 885 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 City would redeem the outstanding bonds in mid to late April. Financial Considerations: The certificates of obligation will be repaid through the City's utility fund and debt service of the City's property tax rate. Citizen Input/ Board Review: Public Hearing is scheduled for March 15, 2005. Legal Review: The law firm Fulbright and Jaworski serves as the City's bond counsel, and as such has prepared the Ordinance. Alternatives: None Supporting Documents: Ordinance will be forwarded under separate cover via e -mail later in the week. Staff Recommendation: Approval of Ordinance No. 885