R2004-182 11-08-04 Section 1.
true and correct.
Section 2.
RESOLUTION NO. R2004-182
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY
MUNICIPAL UTILITY DISTRICT NO. 6 AUTHORIZING THE ISSUANCE OF
$4,440,000 UNLIMITED TAX BONDS, SERIES 2004.
WHEREAS, the Brazoria County Municipal Utility District No. 6 (the "District") is
located within the extraterritorial jurisdiction of the City of Pearland, Texas
(the "City"); and
WHEREAS, by Resolution No. R 86-7, dated February 10, 1986, 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 $4,440,000 Unlimited Tax
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
The bond order of the board of directors of Brazoria County
Municipal Utility District No. 6, authorizing the issuance of its $4,440,000 Unlimited
Tax 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. R2004-182
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 8th day of November ,
A. D., 2004.
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
y;= First City Tower,Suite 400
R C 1001 Fannin
1 .w DaDainRausr.1.1Pr Houston,TX 77002
® (713)651-3347 Fax
(800) 727-7391 Toll Free
RECEIVED
October 26, 2004
OCT 27 2004
CITY ATTORNEY
Mr Damn Coker
City of Pearland
3519 Liberty Drive
Pearland, TX 77581
Re Brazona Co MUD No 6
$4,440,000 Series 2004-A Bonds
Dear Damn.
I have enclosed a debt service schedule relating to the sale of the Series
2004-A Bonds which we discussed on the telephone The Board of
Directors of the District at the regular meeting on October 25, 2004,
approved the sale of Bonds for November 16, 2004, subject to approval by
your Council on November 8, 2004
A draft of the Preliminary Official Statement will be delivered to you as
soon as it is in substantially completed order for your review prior to the
Council meeting on November 8, 2004
Sincerely yours,
Eugene B Shepherd
Managing Director
EB S/rr
Enclosure
cc Peter Harding
Schwartz, Page & Harding, L.L.P
Member NYSE•SIPC
Brazoria County MUD No.6 i
Dated Date=12/01/2004 Unlimited Tax Bonds,Series 2004-A Delivery Date=12/15/2004
Term Bond Bond Coupon Interest Total Fiscal Year Debt Service
Dates Maturities Redemptions Proceeds Rate Yield Price Amount Debt Service Debt Service to Call
03/01/2005 - - - - - - 61,050.00 61,050.00 - 61,050.00
09/01/2005 - 130,000.00 130,000.00 5.500 5.500000 100.000000 122,100.00 252,100.00 313,150.00 252,100.00
03/01/2006 - - - - - - 118,525.00 118,525.00 - 118,525.00
09/01/2006 - 135,000.00 135,000.00 5.500 5.500000 100.000000 118,525.00 253,525.00 372,050.00 253,525.00
03/01/2007 - - - - - - 114,812.50 114,812.50 - 114,812.50
09/01/2007 - 140,000.00 140,000.00 5.500 5.500000 100.000000 114,812.50 254,812.50 369,625.00 254,812.50
03/01/2008 - - - - - - 110,962.50 110,962.50 - 110,962.50
09/01/2008 - 150,000.00 150,000.00 5.500 5.500000 100.000000 110,962.50 260,962.50 371,925.00 260,962.50 i
03/01/2009 - - - - - - 106,837.50 106,837.50 - 106,837.50
09/01/2009 - 160,000.00 160,000.00 5.500 5.500000 100.000000 106,837.50 266,837.50 373,675.00 266,837.50
03/01/2010 - - - - - - 102,437.50 102,437.50 - 102,437.50
09/01/2010 - 165,000.00 165,000.00 5.500 5.500000 100.000000 102,437.50 267,437.50 369,875.00 267,437.50
03/01/2011 - - - - - - 97,900.00 97,900.00 - 97,900.00 J
09/01/2011 - 175,000.00 175,000.00 5.500 5.500000 100.000000 97,900.00 272,900.00 370,800.00 272,900.00
03/01/2012 - - - - - - 93,087.50 93,087.50 - 93,087.50
09/01/2012.,., - 185,000.00 185,000.00 5.500 5.500000 100.000000 93,087.50 278,087.50 371,175.00 278,087.50
03/01/2013 - - - - - - 88,000.00 88,000.00 - 88,000.00
09/01/2013 - 195,000.00 195,000.00 5.500 5.500000 100.000000 88,000.00 283,000.00 371,000.00 283,000.00
03/01/2014 - - - - - - 82,637.50 82,637.50 - 82,637.50
09/01/2014 - 205,000.00 205,000.00 5.500 5.500000 100.000000 82,637.50 287,637.50 370,275.00 3,087,637.50 '
03/01/2015 - - - - - - 77,000.00 77,000.00 - -
09/01/2015 - 220,000.00 ' 220,000.00 5.500 5.500000 100.000000 77,000.00 297,000.00 374,000.00 -
03/01/2016 - - - - - - 70,950.00 70,950.00 - - 1
09/01/2016 - 230,000.00 ' 230,000.00 5.500 5.500000 100.000000 70,950.00 300,950.00 371,900.00 -
03/01/2017 - - - - - - 64,625.00 64,625.00 - -
09/01/2017 - 240,000.00 ' 240,000.00 5.500 5.500000 100.000000 64,625.00 304,625.00 369,250.00 -
03/01/2018 - - - - - - 58,025.00 58,025.00 - -
09/01/2018 - 255,000.00 ' 255,000.00 5.500 5.500000 100.000000 58,025.00 313,025.00 371,050.00 -
03/01/2019 - - - - - - 51,012.50 . 51,012.50 - -
09/01/2019 - 270,000.00 ' 270,000.00 5.500 5.500000 100.000000 51,012.50 321,012.50 372,025.00 -
03/01/2020 - - - - - - 43,587.50 43,587.50 - -
09/01/2020 - 285,000.00 * 285,000.00 5.500 5.500000 100.000000 43,587.50 328,587.50 372,175.00 -
03/01/2021 - - - - - - 35,750.00 35,750.00 - -
09/01/2021 - 300,000.00 * 300,000.00 5.500 5.500000 100.000000 35,750.00 335,750.00 371,500.00 -
03/01/2022 - - - - - - 27,500.00 27,500.00 - -
09/01/2022 - 315,000.00 ' 315,000.00 5.500 5.500000 100.000000 27,500.00 342,500.00 370,000.00 -
03/01/2023 - - - - - - 18,837.50 18,837.50 - -
09/01/2023 - 335,000.00 * 335,000.00 5.500 5.500000 100.000000 18,837.50 353,837.50 372,675.00 -
03/01/2024 - - - - - - 9,625.00 9,625.00 - -
09/01/2024 - 350,000.00 ' 350,000.00 5.500 5.500000 100.000000 9,625.00 359,625.00 369,250.00 -
Total - 4,440,000.00 4,440,000.00 2,927,375.00 7,367,375.00 7,367,375.00 6,453,550.00
Acc Int - - -9,496.67 -9,496.67 - -
Grand Totals - 4,440,000.00 4,440,000.00 2,917,878.33 7,357,878.33 7,367,375.00 6,453,550.00
•-Bonds callable... 09/01/2014 @ 100.000
TIC(Incl.all expenses)....5.50079842% Average Coupon 5.50000000% Net Eff.Int.Rate(Texas Vernon's)= 5.957680%(with Adjstmnt of$243,600.00).
TIC(Arbitrage TIC) 5.50079842% Average Life(yrs)... 11.99 IRS Form 8038-G NIC =5.500000%(with Adjstmnt of$0.00).
Bond Years 53,225.00 WAM(yrs) 11.948724 NIC= 5.957680%(with Adjstmnt of$243,600.00).
Ii
BRAZOR/A6:NEW2004A 10/26/2004 0 09:15 v6.83
SCHWARTZ, PAGE & HARDING, L.L.P.
ATTORNEYS AT LAW
JOSEPH M.SCHWARTZ 1300 POST OAK BOULEVARD TELEPHONE (713) 623-4531
MICHAEL G. PAGE TELECOPIER (713) 623-6143
PETER T. HARDING SUITE 1400 •
ABRAHAM I.RUBINSKY
MARTHA T. BERSCH HOUSTON, TEXAS 77056
HOWARD M.COHEN
PATRICIA M. DANIELS
LAURA C. DAVIS
SPENCER W. CREED
CHRISTOPHER G.JORDAN
CHRISTOPHER T. SKINNER
STUART F. MILLER October 25, 2004
DANIEL S. RINGOLD
VIA FEDERAL EXPRESS
Mr. Darrin Coker
City Attorney
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Re: Brazoria County Municipal Utility District No. 6
Dear Darrin:
Enclosed please find a copy of the Texas Commission on
Environmental Quality staff memorandum and a draft Bond Order
relative to the District ' s proposed $4, 440, 000 Unlimited Tax
Bonds, Series 2004 .
If you need anything else, please do not hesitate to contact
me.
Very truly yours,
SCHWARTZ & HARDING, L.L.P.
By: ' -
Pet r T. Harding
At rneys for the District
Enclosures
cf:0006\Bonds2004/CokerCor
cc : Mr. Gene Shepherd
(via facsimile)
TCEQ Fax:512-239-6190 Oct 21 2004 13:03 P. 07
Texas Commission on Environmental Quality
• INTEROFFICE MEMORANDUM
•
•
•
To: • Glenn Shankle,Executive Director Date: October 15, 2004 .
•
• Texas_C.ommissib i on Environmental Quality
Thru: 1, Ear1 Lott,Manaier,.•Utilities and Districts Section
• Robert Cummins,P.E.,Leader,Districts Review Team
•
From: Districts Review Team
•
Subject: Brazoria County Municipal Utility District No. 6; Application for Approval of • •
• • $4;440,000 Unlimited Tax Bonds,Seventh Issue, 5.75%Net Effective Interest Rate,
.Series 2004; Pursuant to Texas Water Code, Section 49.181.
•
• . TCEQ Internal Control No. 08192004-DO1 (TC)
• CN: 600735724 RN: 101393064 •
•
A. GENERALJNFORMATION •
•
. The application regUests Commission:.pproval of the issuance of$4,440,000 in bonds to finance the
• District's share of costs associated with the following projects: •
•
• Land acquisition costs for the Silvercreek Lift Station,Water Plant No.4,and Remote Water
Well No. 5
• •Water,wastewater and drainage serving:
• . Type-of. Existing
• Section Development crew a ESFCs Ultimate ESFC_s
Silvercreek Single Family 39.44 • 103 103
=Section 5&6 •
•
• Silvercreek Single Family. 26.80 20 91
•
- Section 7 •
'Silvercreek Single Family: ' • 35.60 55 • 86 •
• Section 8 .
:Silvercreek Single Family 25.64 44 109
Section 9
• Silvercreek Single Family . 68.48 112
'- Section 10
•
?::�:• Tatal. 195.96. 252 501 '
Note: (1)Equivalent sitl'g1e family connections(ESFCs)as of June 2004 indicated in the engineering report.
TCEQ Fax:512-239-6190 Oct 21 2004 13:03 P. 08
•
Glenn Shankle, Executive Director,.Texas Commission on Environmental Quality
October 15, 2004
Page 2
•
The District's previous bond issues financed underground utilities for 1935 ESFCs on 439.34 acres.
:Including this bond issue the District will have funded underground facilities for 2,436 ESFCs on
635.3 acres. The District is projecting 2,867 ESFCs at build out on 672.37 net developable acres.
B. ECONOMIC ANALYSIS
•
Tax Rate Analysis •
The feasibility of this bond issue is based on the existing 1,901 ESFCs as of June, 2004 and no-
growth to the certified estimated assessed valuation(AV) of$383,562,740 as of July 1, 2004.
•
The District's January:1,2004 certified assessed valuation is$342,482,516. The annual debt service
requirements for the proposed bond amount'of$4,440,000 and existing debt averages $2,604,945
for the 20-year life of the District's bond debt. The District levied a $0.0525 maintenance tax in
2003,and the engineering report indicates that the District will levy the same maintenance tax in the
• future.
The District's financial advisor submitted cash flow schedules considering the requested$4,440,000
bond issue, no growth to the January 1, 2004 estimated taxable assessed valuation, 12 months of
capitalized interest,a bond interest rate of 6%,a 3%bond discount,and a projected tax rate of$0.83
per$100 assessed valuation_ The Utilities and Districts Section's financial analyst has reviewed the
financial information submitted and concluded that the following level debt service tax rates would
be sufficient.
Tax Rate
District
• : Debt Service $0.7500(i)
Maintenance
Total District Taxes • $0.8025
•
a>
Notes: (1) Based on a net effective interest rate of 5.75%, a 98% tax collection rate, no-growth to an
assessed valuation of$383,562,740 as of July 1,2004,and at least a 25%ending debt service
fund balance.
• (2) Represents the combined projected and no-growth tax rate as defined by Commission Rule 30 ' •
• TAC Section 293.59(f)and(e). .
Additional Financial Comments •
. According to the rate order provided with the application,a single family resident's cost for 10,000
gallons of water and wastewater service per month is$27.00 ($17.00 water+$10 wastewater).
The District is exempt from the 75% and 25% build-out requirements of Commission Rules
293.59(1)(4) and 293.59(k)(7),respectively, based on its combined no-growth tax rate of$0.8025
being less than $1.50,pursuant to Commission Rules 293.59(1) and 293.59(k)(11)(C).
- TCEQ Fax:512-239-6190 Oct 21 2004 13:03 P. 09
•
Glenn Shankle, Executive Director,Texas Commission on Environmental Quality
October 15, 2004
• Page 3
C: KNGINEEEJNG ANC ' •
• Water Supply
The District receives groundwater from a jointly owned Water Plant No. 2.Brazoria County MUD
•No.2 operates WaterPlant No.2,which is located within Brazoria CountyMUD No.3.Water Well •
No.2 is jointly owned by Brazoria County MUDs 1, 2, 3, and the District with 32.4% ownership.
The current capacity from Water Plant No.2 is generated from a 1,250 gpm well and a remote 1,800
gpm well.
The District also.owns a pro rata share of Water Plant No, 3, located in Brazoria County MUD No.
3 and,operated by Brazoria County MUD No. 2. The current capacity for Water Plant No. 3 is
generated from a 2,100 gpm water well. Water Plant No. 3 is jointly owned by Brazoria County
MUDs 1, 2, 3, and the District with 49.5% ownership.
• No ground water or surface water facilities are proposed for funding in this bond issue.
The District also owns 100%of Water Plant No.4,with current capacity generated by a 1,000 gpm
remote well. .
The following table summarizes the District's water supply facilities along with the ESFC capacity
of each component based on TCEQ minimum criteria.
• •
•
•
. Facility Component ExisfttngCapacity Minimum$.equired •
• (ESFC Capacity)
• Water Plant Well Pumps 3,027gpm(') 0.6 gpm/ESFC
Nos.2,3, &4 (5,046 ESFCs). •
Booster Pump 7,761 gpm(a) 2.0gpm/ESFC
(3,880 ESFCs)
•
Ground Storage 1,430,600 gal(3) 200 gal/ESFC
• (7153 ESFCs) •
•
•
• Elevated Storage 281,820(4) 100 gal/ESFC
(2,818 ESFCs)
•
•
Pressure Tankt1l 27,145 gal(5) 20gal/ESFC
( 1,357 ESFCs)
• Note: (1)• The District owns well capacity as follows:32.4%of Water Plant No.2(1250 gpmand 1800
gpm wells).49.5%of Water Plant No.3 (2100gpm well),and 100%of Water Plant No.4(1000
•
gpm well).
TGEQ Fax:512-239-6190 Oct 21 2004 13:03 P. 10
•
Glenn Shankle, Executive Director, Texas Commission on Environmental Quality
October 15,2004 •
Page 4 • •
(2) The District owns Booster Pump capacity as follows: 32.4%of Water Plant No.2(7,000 gpm),
49.5% of Water Plant No.3 (6,250 gpm well),and 100%of Water Plant No.4(2,400 gpm well).
(3) The District owns Ground Storage capacity as follows:32.4%of Water Plant No.2 (1,200,000
gallons),49.5%of Water Plant No,3(1,240,000 gallons),and 100%of Water Plant No.4
(428,000 gallons).
(4) The District owns Elevated Storage capacity as follows: 40.26%of a 700,000 gallon regional
elevated storage tank
. (5) The District owns Pressure Tank.capacity as follows:32.4%of Water Plant No.2(30,000
gallons),49.5%of Water Plant No.3(15,000 gallons),and 100%of Water Plant No.4(10,000
gallons).
•
The District's water supply appears adequate for the 2,436 ESFCs upon which the feasibility of this
• bond issue is based.
Wastewater Treatment
•
The District owns 41.08%pro rata share(after expansion) of a 1.75 million gallon per day
(MGD)regional wastewater treatment plant operated by Brazoria County MUD No. 1 (TCEQ
Permit No. 12332-001). An expansion of the plant to 2.40 MGD is under construction and was
funded with proceeds from Bond Issue No. 5. The plant is jointly owned by Brazoria County
MUD Nos. 1, 2, 3, and the District.
The engineering report requests use of a flow factor of 300 gpd,which appears reasonable based
on the average monthly flow rate within the last three years, 199 gpd. Based on the indicated
• design criteria of 300 gpd per ESFC, the District's post expansion capacity of 2,400,000 gpd can
serve 3,286 ESFCs (based on 41.08%pro rata share). The District's wastewater capacity appears
adequate for the 2,436 ESFCs upon which the feasibility of this bond issue is based.
Storm Drainage
The District's storm drainage facilities are part of a regional drainage system managed by
Brazoria County Drainage District No. 4,which includes underground piping, open ditches, •
detention ponds and lakes. The ultimate outfall of the regional drainage system is into Mary's
Creek, a tributary of Clear Creek. According to the most recent Federal Emergency Management
Agency(FEMA)Floodplain Maps,none of the proposed improvements are located within the
100-year flood plain.
TCEQ Fas::512-239-E190 Oct 21 2004 13:03 P. 11
Glenn Shankle, Executive Director, Texas Commission on Environmental.Quality
October 15, 2004
Page 5
Purchase of Feting Facilities/Assumption of Contract
% of
• Completion Final Pay District
Project Contractor fDatel Estimate Share
Silvercreek, Sections 5 & 6 JAHO,Inc. 100% $393,790 $393,1100)
W, WW &D (8/9/2002)
Silvercreek, Section 7 Clearwater 100% $829,999(2) $819,595(2)
=.W,WW&D Utilities, Inc. (9/23/2003)
Silvercreek, Section 8 Clearwater 100% $581,400 $602,361(3)
= W,WW&D Utilities,Inc. (6/4/2003) •
Silvercreek, Section 9 South Texas 100% $344,895 $355,167(4)
• o W, WW&D Utilities, (8/29/2003)
L.L.C. •
• Silvercreek, Section 10 Reddico 100% $704,828 $630,824(5) •
-W,WW&D Construction (1/29/2004)
• Co.,Inc.
•
•
•
Notes: (1) Original contract amount of$393,790 plus$799 for construction and warranty bond,plus$2,150
to expose an existing force main along Southfork Drive(change order number 3),$8,965.14 for
••
reinforced filter fabric fence and sod for storm water pollution prevention purposes(change
order No.4),minus S12,594 for an adjustment hi final quantities.
(2) Original contract amount of$829,999 plus$3,414 for installation of an air release valve on the
• • well collection line(change order No. 1),minus$13,818 for an adjustment in final quantities.
• (3) Original contract amount of$581,400 plus$21,964 for a waterline tie-in to Water Plant No.4
minus$3,200 for a 18"flap gate,a developer item(change order No.1),plus$14,997 for
reinforced filter fence,and sod for storm water pollution prevention(change order No.2),minus .
• $12,800 for an adjustment in final quantities.
(4) Original contract amount of$344,895 minus$9,728 for an adjustment in final quantities.
(5) Original contract amount of$744,828 minus$74,004 for an adjustment in final quantities.
Plans and specifications, plats, recorded easments and related construction documents were not
received with the application.
•
Facilities to be Constructed
None
TCEQ Fax:512-239-6190 Oct 21 2004 13:04 P. 12
Glenn Shankle, Executive Director, Texas Commission on Environmental Quality
October 15, 2004
Page 6
. Inspection
• The District was inspected by the Commission's Utilities and Districts Section staff on October 8,
2004. An active building program was observed and appeared consistent with the build-out
• projections. Utilities and streets appeared complete within those areas funded in previous bond
issues, funded in this bond issue, and used in the build-out projections. District name signs were
observed.
•
D. SUMMARY OF COSTS .
Construction Costs District' Sb re(1)
•
A.Developer Contribution Items
•
. Silvercreek Sections 5 &6 $393,110
Water, Wastewater &Drainage •
2. Silvercreek Section 7 819,595
- Water, Wastewater&Drainage .
3. Silvercreek Section 8 602,361
Water,Wastewater&Drainage
4. Silvercreek Section 9
•
- Clearing and Grubbing 335,167
•
5. Silvercreek Section 10 630,824
-Water,Wastewater &Drainage
•.6. Land Acquisition Costs 46,547
•
:7. Contingencies (2) N/A
:8. Engineering Fees (20.54% of Items Nos. 1-5) 571.248
Total Developer Contribution Items $3,398,852 . .
B. District Items -None
TOTAL CONSTRUCTION COSTS (76.55% 3,398,852
of BIR)
Tonconsfuction Cow
TCEQ Fax: 512-239-6190 Oct 21 2004 13:04 P. 13
Glenn Shankle, Executive Director, Texas Commission on Environmental Quality
October 15, 2004 •
Page7
A. Legal Fees (2.75%)(3) $121,000
•
B. Fiscal Agent Fees (2.00%)(`) 88,800
• C. Interest Costs •
1. Capitalized Interest(12 mos. @ 5.50%) 244,200
2. Developer Interest(5 years at 5.50% )(5) 379,512 •
•
D. Bond Discount(3.0%) • 133,200
•
E. Bond Issuance Expenses • 33,336
F. Bond Engineering Report 30,000
G. TCEQ Fee(0.25% of BIR) 11QQ •
TOTAL NON-CONSTRUCTION COSTS S1,041,148
•
TOTAL BOND ISSUE REQUIREMENT S4,440,000•
.•
'
Notes:
1. The District is requesting a waiver of the 30%developer contribution rule.
2. All projects were 100% complete as of January 29,2004.
3. Legal fees are 3.5% of the par value of the bonds up to $1,000,000 plus 2.5%of the
remaining bond issue requirement over$1,000,000.
4. Fiscal agent fees are 2%of the par value of the bonds up to$5,000,000.
5. Estimated at 5.50%through 03/15/05 or a maximum of 2 years pursuant to Commission Rule
293.50(a).
E. SPECIAL CONSIDE TION
•
1. Waiver of 30%Developer Contribution a d Market Study Requirements
•
By resolution dated June 26,2004,the District has requested a waiver of the 30% developer
• contribution requirement pursuant to Commission Rule 293.47(a)(3)based on having a credit
enhanced rating. According io a letter dated July 26,2004 from the District's financial advisor,
the District expects to qualify for a credit enhanced rating for the proposed bond issue.A waiver
of the 30% developer contribution requirement should be granted pursuant to Commission Rule
293.47(a)(3).
•
By resolution dated July 26,2004, the District requested a waiver of a current market study
requirement pursuant to 30 TAC Section 293.59(1)(5)(13) and (C). Because the District has a
Combined no growth projected tax rate of$0.8025,which is less than$1.50, a market study is not
required pursuant to 30 TAC Sections 293.59(k)(11)(C) and 293.59(1)•and granting a waiver is
not necessary.
TCEQ Fax:512-239-6190 Oct 21 2004 13:04 P. 14
Glenn Shankle, Executive Director, Texas Commission on Environmental Quality
• October 1.5, 2004
Page 8
2. 95% Completion Requirement
Commission Rules 293.59(k)(6)(A) and(E) require that utilities and streets be 95% complete for
each section included in the funding or feasibility of the bond issue.
F. CONCLUSIONS •
1.• Based on$38,500,000 in unlimited tax bonds approved by voters and$31,460,000
• previously approved by the Commission and issued by the District,the District has
sufficient voter authorized bonds($7,040,000) for the proposed bond issue. .
•
2. Based on a review of the engineering report, and supporting information, the project is
. considered feasible and.meets the criteria established by the Commission's economic .
feasibility rules, 30 TAC Section 293.59.
G. RECOMMENDATIONS
1. Approve the bond issue in the requested amount of$4,440,000 in accordance with the •
recommended summary of costs, at a maximum net effective interest rate of 5.75 %.
Further, direct that the bonds are•to be•sold only upon the District receiving an acceptable
• credit rating on the bonds pursuant to Commission Rule 293.47.
2. Direct the District to levy an.initial debt service tax rate of not less than$0.75 per$100
valuation. •
•
3. Grant a waiver of the 30% developer contribution requirement pursuant to Commission
Rule 30 TAC 293.47(a)(3), if the District receives an acceptable credit rating on the bonds
pursuant to Commission Rule 293.47.
4.. Standard recommendations regarding inspection of facilities, developer interest, consultant •
fees, surplus proceeds, time of approval, and bond proceeds fee apply.
•
.4944S4Lc...
Karel Kozuh
Districts Review Team