R2004-090 06-14-04 RESOLUTION NO. R2004-90
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY
MUNICIPAL UTILITY DISTRICT NO. 2 AUTHORIZING THE ISSUANCE OF
$2,040,000 WATERWORKS AND SEWER SYSTEM COMBINATION
UNLIMITED TAX AND REVENUE BONDS, SERIES 2004.
WHEREAS, the Brazoria County Municipal Utility District No. 2 (the "District") is
located within the extraterritorial jurisdiction of the City of Pearland, Texas (the "City"); and
WHEREAS, by Resolution 81-2, dated January 26, 1981, the City consented to the
creation of the District, and placed certain conditions on the issuance of bonds by the
District, including the approval by the City Council of the District's resolution authorizing the
issuance of such bonds; and
WHEREAS, the City Council has considered such a bond resolution in connection
with the issuance of the District's proposed $2,040,000 Waterworks and Sewer System
Combination Unlimited Tax and Revenue Bonds, Series 2004, and has found it to be
acceptable; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
All of the matters and facts set forth in the preamble hereof are true
Section 1.
and correct.
Section 2.
The bond order of the board of directors of Brazoria County Municipal
Utility District No. 2 authorizing the issuance of its $2,040,000 Waterworks and Sewer
System Combination Unlimited Tax and Revenue Bonds, Series 2004, is hereby approved.
Section 3. The Mayor of the City of Pearland is hereby authorized to execute
such letters or other documents required to be provided to the Attorney General of Texas in
connection with the issuance of such bonds by the District.
RESOLUTION NO. R2004-90
Section 4. This Resolution shall take effect immediately from and after its
passage in accordance with the provisions of the Charter of the City of Pearland and it is
accordingly so resolved.
PASSED, APPROVED and ADOPTED this the 14th day of June
A. D., 2004.
MAYOR
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
Debt Service Requirements
The following schedule sets forth the debt service requirements of the Outstanding Bonds and the principal of and
estimated interest on the Bonds.
Year Ending Current Total The Bonds -- Total New
December 31 Debt Service ~ Interest *_ Debt Service
- 2004 $1,462,688 $ 95,000 $ 20,400 $1,578,088
2005 1,467,025 105,000 116,700 1,688,725
2006 1,470,765 110,000 110,400 1,691,165
2007 1,471,730 115,000 103,800 1,690,530
2008 1,472,720 120,000 96,900 1,689,620
2009 1,472,298 130,000 89,700 1,691,998
2010 1,474,343 140,000 81,900 1,696,243
2011 1,473,503 145,000 73,500 1,692,003
2012 1,474,405 155,000 64,800 1,694,205
2013 1,482,106 165,000 55,500 1,702,606
2014 1,486,291 175,000 45,600 1,706,891
2015 1,482,124 185,000 35,100 1,702,224
2016 1,488,360 195,000 24,000 1,707,360
12.30~0 1 705 713
2017 ~ ~ $930,600 $23,637,371
$20,666,771 $2,040,000
$1,688,384
Average Annual Requirements - (2004-2017) .......................................... $1,707,360
Maximum Annual Requirement - (2016) ..............................................
* Estimated at 6.00% per annum.
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FUTURE DEVELOPMENT
tpproximately 10.0 acres of the land located within the District which is available for development
complete. Such development includes an aggregate of 1,115 single-family residential lots on approximately 372.8 acres,
plus approximately 10.2 acres that have been developed for commercial purposes on which above-ground improvements
including two shopping centers totaling approximately 93,579 square feet of building area have been constructed including
the construction of underground water distribution, wastewater collection and storm drainage facilities and street paving as
is described under the captions "DEVELOPMENT AND HOME CONSTRUCTION" and "THE SYSTEM." An additional
approximate 134.7 acres located in the District are contained in the Southwyck Golf Course, and approximately 108.9 acres
of land located in the District are contained within street and drainage ditch rights-of-way, various easements, Lake Silverlake,
parks and open space, or are otherwise not available for future development. The District also contains approximately 10.0
acres of land which are currently being developed into 57 townhome lots as is described above under the caption
"DEVELOPMENT AND HOME CONSTRUCTION."
The instigation of any new home construction beyond that described in this Official Statement will be dependent on several
factors including, to a great extent, the general and other economic conditions which would affect any party's ability to
develop and sell lots and/or other property and of any home builder to sell completed homes described in this Official
Statement under the caption"INVESTMENT CONSIDERATIONS." The District's Engineer estimates that the construction
of the facilities that are being financed with the proceeds of the sale of the Bonds will be adequate to finance the facilities
to complete the development of the District. In the event that the remaining authorized but unissued bonds are insufficient
to complete the development of the District, the voters of the District would have to approve additional bonds at an election
held for such purpose for the District to be able to issue such bonds. See 'WI-IE BONDS - Legal Ability to Issue Additional
Debt." No party, including Trendmaker, the developer of the approximately 10.0 acres located in the District that are
currently being developed into 57 townhome lots, is under any obligation to undertake the development thereof, and any party
initiating any future development thereon could modify or discontinue such plans in its sole discretion. Moreover, no party
has any obligation to the District to construct taxable irnprovements, including townhomes, thereon. Accordingly, the District
makes no representation that future development or coustmction of additional taxable improvements other than the
development and construction &taxable improvements accomplished to date will occur in the District. See "INVESTMENT
CONSIDERATIONS - Factors Affecting Taxable Values and Tax Payments."
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A
r' USE AND DISTRIBUTION OF BOND PROCEEDS cost of acquisition or
portion of
_` finance the District's p S the ook at Silverlake,
; the District to(i)
drainage facilities to serve(a) p
Proceeds of theo sale of theBonds will be used bya finance the District's
•on of water distribution,wastewater collection and stormome tract,both of which sections have been developed
and(b)a 57-lot townh Road 90 which
( )
construction(86 single-family residential lots),aiimprovements for County engineering fees related hDi tor the
Section 2 e inlets and drainage imp and Well Rework; (iii)pay erg of land
in the of Water,plus drainage
(iv)pay of interest behalf by developersv the Bonds;and
projects; interest on funds advanced on the District's by
(v
cost Water Plant No. anddater Plant No. 2 Recoating t equal to six months 'scion on Environmental
aforementioned facilities v apitalize and escrow an amour q DISTRIBUTION OF BOND
located within the District;( ) legal fees,fiscal agent's fees,a fee to the Texas Comma
Quality,
pay for administrative and issuance costs,
in financing costs related to the issuance of the Bonds. See"USE P`
Quality, and certain
PROCEEDS."
Construction Costs
$ 725,813
13,446
A. Developer Contribution Items(a) 2,018
1. S tun ooa Section 2 e Facilities
Road 90 at Silverlake Drainage
390,000
2. County Road 90 at Silverlake Paving(Inlets) 39,000
3. County 1�9p1
4. Townngen Tract
6.5. Engineering
Engineering
Total Developer Contribution Items $1,325,178$ 119,196
62,400
B. District Items(b)
Improvements 70,764
1. County Road at Silverlake Drainagen l Rework 13,316
3.2. Water Plant No. 1 Recoating and Well Rework 0,7 41,842
3• Water Plant No.2 Recoating �1 6
4• Contingencies
5. Engineering
6. Silverlake Detention Update(Engineering) $ 340,676
Total District Items
TOTAL CONSTRUCTION COSTS $1340 6
4
$ 72,200
Non-Constriction Costs 00
1• Legal Fees 61 00
78,542
61,200
30,104
25,000
2. Fiscal Agent Fees
3. Interest Costs months)
a. Capitalized Interest(6
b• Developer Interest(c)
4. Bond Discount Expenses
Application
pp
5. Bond lic ti n Report
6, Bond App
44 40,8
7. TCEQ Bond Issuance Fee
8. Contingency (d)
Total Non_Construction Costs
5,100
0
$ 374,146
$2,040,000
TOTAL BOND IssUE REQUIREMENT
· . . . tsub.ecttothejurisdiction°fthe
.......... ecs that developers w~thin afits~C.t, o,,~ to thirty percent (30°/o.) of
~CEQ require m certain m~ _~_ ~c .... h district an amount ot mon.~.~, a'he District requestea an
(a) The rotes u~_,.,~ .... ,,, ,he construction program v- ~,~.~;,o,,~ facilities in that msmc~ .... TCEQ roles for
TCEQ conmuu,~ -~ ~j-_~ ~o,~ain water, sewer ann ta,,~,,,~, - under
the construction costs m ,~,~,, ~
exemption from such developer participation requirement on the basis of one of the criteria
such exemption. The TCEQ granted the request for such exemption in its Order authorizing the District to issue the
e funded 100% by the District.. ~ District's behalf bY
Bonds. _ ~,,-r~r~ roles, these items may b ~_._,4^., costs and engineenng ~ees made on the
(b) pursuant to ~,-~'< ..... ,~,,~nces of consu'uw~,,~, lesser of (i) the net effective interest
RePresents interest owen u, .... interest rate at which funds have been borrowed.
(c) the Developer. The actual amount of interest owed will be calculated at the
rate borne by the Bonds or (ii) the upon approval of the TCEQ.
estimated amounts exc.eed actual costs, the difference compns, e be required. The
In the instance that approved .... ~ the instance that actual costs exceed prevto Y PP
eXPended for uses approved by the TUES. m
amounts and contingencies, additional TCEQ approval and the issuance of additional bonds may
Engineer has advised the District that the proceeds of the sale of the Bonds sh°uld be sufficient to reimburse the
Developer for the costs of the above-described facilities. However, the District cannot and does not guarantee the
sufficiency of such funds for such purposes. THE sYSTEM
ulation . l~istrict (the "System") have been designed
Reg ..... -'-~ land within tine ~, mmental agencies having
Water and storm drainage facilitaes se~vm~ . certain overm~
~ water, waste '-~ ~ractices and the reqmrements of ...g . .
· the ~ ~nce with ~,ccepted engineerm~ v
in comornm .... . , · · e construction and operauon, o.f su~ch~[a~cflittes including, among others, the
'so uns&ctaonover th . · ' o 4 and tine tt~t/.
..d~.,,rvorsuperv~ fyi ~ ~. ~., fiaDramageD~strlctN
re~,*~ , _~ ~oria tzounty, ~.,,,~o · Agency
City ot veananu, ~,-~ these agencies have become effective only recently and are
Operation of the System is subj eot to regulation by, among others, the United States Environmental Protectton
regnlations promnlgatedby the total number of equivalent
and the TCEQ. In many cases, .
subject to further development and revision. According to the District's Engineer,
residential connections projected for the District at the full development of its approximate 636.6 acres is 1,328 with a
total estimated population of 3,916. A description of portions of the System follows, and is based upon informaUon
supplied by the District's Engineer.
above under the caption"DEVELOPMENT AND HOME cONSTKD ' . . .
Descripti°n ---'CTION," porhons of the proceeds
isifion of water supply and distribution,
As described . ere udto finance the constmcuon or a,c~qu~,~,~ elooed single-family res,denUal
drainage facflittes to serve 1,02~ ~,, ~J der _
of the sale of the Outstan~g~B,.~,°n~ .Wa~d st;~ at Silverlake, Section 2),
wastewater collection ann u~,~[ ....... , and
lots located in the District (all of the lots enumerated under such caption except Springbrook
and other facilities. The District will acquire the components of the System which have been constructed to setwe
Section 2, and other facilities, with the proceeds of the District's $2,040,000 Waterworks
Springbrook at Silverlake, and Revenue Bonds, Series 2003, which the District expects to sell in
Sewer System Combination Unlimited Tax
approximately the fourth calendar quarter of 2003.
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