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HomeMy WebLinkAboutItem 20 - Revenue Bonds CC ITEM #20 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO ® CITY MANAGER MEETING DATE: APRIL 16, 2013 SUBJECT: RESOLUTION CALLING THE CITY'S WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 2002, FOR REDEMPTION RECOMMENDATION: Consider a resolution calling the City's Water and Sewer System Revenue Bonds, Series 2002, for redemption. BACKGROUND: This resolution authorizes the cash defeasance of the City's remaining 2002 Water and Sewer Bonds. The available funds for the redemption are coming from the Water and Sewer Systems Bond Reserve Fund. Staff recommends approval. April 10,2013(10:3 AM) C, ? PRIOR BOND DEBT SERVICE City of Grapvine,Texas Cash Defeasance of WW&5S Rev Ref Bds,5er 2002 As of 06/04/2013 $6.070.000 Waterworks and Sewer System Revenue Refunding Bonds,Series 2002{2002) Period Annual Ending Principal Interest Debt Service Debt Service 09/01/2013 255,000 15,775.63 270,775.63 09/30/2013 270,775.63 03/01/2014 10,835.00 10,835.00 09/01/2014 265,000 10,835.00 275,835. 09/30/2014 286,670.00 03/01/2015 5,535.00 5,535.00 09/01/2015 270,000 5,535.00 275,535.00 09/30/2015 281,070. 790,000 48,515.63 838,515.63 838,515.63 Note: Preliminary,for illustrative purposes only. Apr S,2013 4:06 pm prepared by FirstSouth st(am]) (Finance 7.0D4 G RAPEVI N EMORKI NG- EFU D02,REFU D02] ° - ESCROW STATISTICS City of Gravine,Texas Cash Defeasance of WW&SS Rev Ref Bds,Ser 2002 As of 06/04/2013 Modified Yield to Yield to Perfect Value of Total Duration Receipt Disbursement Escrow Negative Cost of Escrow Cost (years) Date Date Cost Arbitrage Dead Time Global Proceeds Escrow: 798,150.74 798,150.74 798,150.74 798,150.74 0.00 0.00 Delivery date 06/04/2013 Note: Preliminary,for illustrative purposes only. Apr 5,2013 4:06 prn prepared by FirstSouth est(arcmll (Finance 7.004 GRAPEVINE:WORKING-REFUNDOZ,REFUNDOZ) F1Ml5*9fM&A4*- 1�-j T F R-A g9n ESCROW REQUIREMENTS City of Gravine,Texas Cash Defeasance of WW&SS Rev Ref Bds,Ser 2002 As of 06/04/2013 $6,070,000 Waterworks and Sewer System Revenue Refunding Bonds,Series 2002(2002) Period Principal Ending Interest Redeemed Total 06/04/2013 8,150.74 790,000.00 798,150.74 8,150.74 790,000.00 798,150.74 Note: Preliminary,for illustrative purposes only. Apr 5,2013 4:06 pm Prepared by FirstSouthwest(arni) (Finance 7.004 GRAPEVINE:WORKING-REFUNDGZREFUNDOZ) Firs5milthwM46 SUMMARY OF BONDS REFUNDED City of Gravine,Texas Cash Defeasance of WW&SS Rev of Bds,Ser 2002 As of 06/04/2013 Maturity Interest Par call Call and Date Rate Amount Date Price –-—----------- $6,070,000 Waterworks and Sewer System Revenue Refunding Bonds,Series 2002,2002: SERIAL 09/01/2013 3.875% 255,000.00 06/04/2013 100-000 09/01/2014 4.000% 265,000.00 06/04/2013 100.000 09/01/2015 4.100% 270,000.00 06/04/2013 100.000 790,000.00 Note- Preliminary,for illustrative purposes only. Apr 5,2013 4.06 pin Prepared by FirstScuthwest(aml) (Finance 7.004 GRAPEVINEMORKI NG-REFUND02,REFUND02) SOURCES AND USES OF FUNDS City of GrapvIne,Texas Cash Defeasance of WW&SS Rev Ref Bds,Ser 2002 As of 06/04/2013 Dated Date 06/04/2013 Delivery Date 06/04/2013 Sources: Other Sources of Funds: Equity Contribution 798,150.74 798,150.74 Uses: Refunding Escrow Deposits: Cash Deposit 798,150.74 798,150.74 Dote: Preliminary,for illustrative purposes only. Apr 5,2013 4:06 prey prepared by FirstSouth st garni' (Finance 7.004 GRAPEVINEWORKING-REFUND02,REFUND02) CC ITEM RESOLUTION r 0 RESOLUTION OF THE CITY IL OF THE CITY GRAPEVINE, TEXAS, CALLING !N OUTSTANDI BONDS FOR REDEMPTION RESOLVING T RELATED MATTERS THERETO AND PROVIDING EFFECTIVE WHEREAS, the City of Grapevine, Texas (the "City") previously issued its Waterworks r System Revenue Refunding Bonds, Series 2002 (t s"); and WHEREAS, the Bonds r presently st i in re a principal punt of 7 , WHEREAS, the Bonds are subject to optional redemption n r September 19 2012, as set forth in the ordinance au orizin the issuance of the bonds (the "Ordinance"); and the i Council of the i of r vin , Texas (the "City Council") has found in that it is in t interests of the i to call all outstanding Bonds for redemption on June 4, 2013 and to redeem such Bonds from lawfully available it . NOW, THEREFORE, BE IT RESOLVED BY THE CITY I F T CITY OF GRAPEVINE, T . Section 1. That the findings n d determinations set forth in rep l hereto are hereby incorporated by reference for all purposes. Section . That all outstanding maturities of the Bonds in the r principal amount , r hereby called for redemption on June 9 139 at redemption ri equal to the rind I amount thereof plus interest oor d thereon and unpaid, and shall be redeemed from lawfully available funds of the City such date. Section 3. That on or before 2013,June the City shall deposit with the Paying n is r r for the s the roxi to sum of $798,150.74, which u is sufficient to redeem all of the outstanding such . The final amount the funds to be applied to the redemption f the Bonds may be adjusted shall be r !ned jointly by the ity's Director of inis r tiro i City's Financial Advisor. Section 4. That the i Secretary is or authorized n directed o cause notice of redemption to be given yin g Agent/Registrar for the Bonds ( "Paying Agent"), at the time in the manner required r in n . The Paying CC ITEM #20 Agent is hereby authorized and directed to give notice of deposit and redemption with respect to the Bonds, as required under the Ordinance. Section 5. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 16th day of April, 2013. APPROVED: ATTEST, APPROVED AST FORM: RES. NO. 2