Item 7D MemoCity of Southlake, Texas
MEMORANDUM
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance Ext. 1713
SUBJECT: Ordinance No. 864, Approving and authorizing the issuance of "CITY OF
SOUTHLAKE, TEXAS, GENERAL OBLIGATION, SERIES 2004"
Action Requested: Approval of Ordinance No. 864 authorizes the issuance of bonds to refund the
following bonds:
• General Obligation Bonds, Series 2000
• Tax and Limited Pledge Revenue Certificates of Obligation, Series 200
• General Obligation Refunding Bonds, Series 2002
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 above.
The refunding will result in the City saving approximately $11,200,000 in
gross debt service payments and further provide present value savings of
approximately $2,100,000. The certificates are issued and approved by
adoption of an ordinance. Approval of Ordinance No. 864 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 May.
Financial
Considerations: The certificates of obligation will be repaid through the City's property tax.
Citizen Input/
Board Review: Public Hearing is scheduled for May 18, 2004.
Legal Review: Ed Esquivel with the law firm Fulbright and Jaworski serves as the City's bond
counsel, and as such has prepared the Ordinance.
Alternatives: None
Billy Campbell, City Manager
January 24, 2011
Page 2
Supporting
Documents: Ordinance No. 864
Staff
Recommendation: Approval of Ordinance No. 864