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