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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