R2003-0092 07-14-03 R,ESOLUTION NO. R2003-92
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEAR, LAND,
TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY
MUNICIPAL UTILITY DISTRICT NO. 3 AUTHORIZING THE ISSUANCE OF
$4,155,000 UNLIMITED TAX AND REVENUE REFUNDING BONDS,
SERIES 2003.
WHEREAS, Brazoria County Municipal Utility District No. 3 (the "District")is located
within the extraterritorial jurisdiction of the City of Pearland, Texas (the "City"); and
WHEREAS, by Resolution No. R 80-5, dated January 28, 1980, 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 $4,155,000 Unlimited Tax and Revenue
Refunding Bonds, Series 2003, and has found it to be acceptable; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEAR`LAND, 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. 3, authorizing the issuance of its $4,155,000 Unlimited Tax and Revenue
Refunding Bonds, Series 2003, is hereby approved.
Section 3. The Mayor of the City of Pearland is hereby authorized to execute
such letters or other documents required to be provided to the Attorney General of Texas in
connection with the issuance of such bonds by the District.
Section 4. This Resolution shall take effect immediately from and after its
passage in accordance with the provisions of the Charter of the City of Pearland and it is
accordingly so resolved.
RESOLUTION NO. R2003-92
PASSED, APPROVED and ADOPTED this the 14th day of July
A. D., 2003.
TOM REID
MAYOR
ATTEST:
Y~NG I.~~~,-T,~.,~
.,SEC, P, ETARY ~,' --
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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PRELIMINARY OFFICIAL STATEMENT DATED JULY 10, 2003
This Preliminary Official Statement is subject to completion and amendment and is intended solely for thc sol;citation of initial bids
to purchase the Bonds. Upon the sale of the Bonds, the Official Statement ~'ili bc completed and delivered to the Underwrkcr.
THE D£L/Y£RY OF TH5 BONI)S IS SUBJECT TO THE OPhVIONS OF BOND COUNSEL 45' TO THE V~LIDITY OF THE BONDS 4ND
OF SFECIAL T~ COUNr~L TO TIlE EFFECT THrlT iNTEREST ON THE BONDS' I$ EKCLUDABL~' FROM GROr'~ INCOME FOR
FEDE~L INCOME 7~X PURPOSES UNDE~ E,YI~ING L4W ~ND TH~' INTER,ET ON THE BONDS 1S NOT I.NCLUD4B~' IN
DETERMINING THE ALTERNATIVE MINIMUM T/~'AB~ INCOME OF ,4N INDIVIDUAL. SEE "~GAL ,t~TrERE" AND "TAX
MAT~ERS" HEREI~ FO~ a DISCU~ION OF THE OPh~IO~S OF BOND COU~SEL AND 5~CI~L TAX COUNSEL. INCLUDING A
DESCRI~ION OF ALTERNATIKE MINIMUM T/tX CONSEqUENtS FOR CORPORATIONS.
T~e Dl~telct ha~ d~'ignated the Bon~ as "Qualified Ta~:-Exgmpt Obligutions "for financlal in,ttitutio~. S~ "TAX ~ERS - ~ud~ed Tax-
Exempt Obligation,t" herein,
NEW ISSUE Standard & PooCs Ratings Seoices ( ) -- (AAA)
(S~ "MUNICIPAL BOND INSURANCE" and "~TINGS" heroin)
$4,155,000
BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 3
(A Political Subdivision of the State of Texas, located within Brazoria County, Texas)
WATERWORKS AND SEWER SYSTEM COMBINATION
UNLIMITED TAX AND REVENUE REFUNDING BONDS, SERIES 2003
Dated: August 1, 2003 Due: September 1, as ~hown below
Bonds in the denomination of $5.000 or integral multiples thcreor. 'D~e Bonds .~ch~dulc~l to matur~ on and 'deer Scptcmbcr 1. 2013. am subject
to redemption prior to their scheduled maturities, in whole or in part, on September I. 20I 2, or on any date thereafter, at thc option of Brazoria
County Municipal Utility District No. 3 (the "District"). Upon redemption, thc Bond* will bc payable at a price ,qual to thc principal amount
of thc Bonds or portions thereof ~o ~allcd for r~dpmption, plu~ accrued inter;st to thc dam of r~dcmption. If fewer than all thc Bdt, ds are
redeemed at any tlme, thc Bond,~ to bc r~:l,¢m~;d shall be ~elccxcd by thc District, and within a nialufity, by lot or other customary method.
Thc Bond.~ will bc mgi~t;rpd in tho name of Cede & Co., as nominee for The Depository Trust Cumpany, New York, New York
"DTC"/ which will act as securities depository for the Bonds Beneficial owncr~ of thc Bond, will n,t rc,clvc physical ¢cnificate~ rzpr¢~cnting
the Bonds, but will receive a credit balanc~ on the boo~ of th~ nommco= of ouch b;acfictal owners. So long as Ccdc& Co. ts thc tpgtstcrcd
owner of the BondS. the principal of and interest on thc Bonds will be paid by the Paying Agent directly to DIC, which will, in turn, remit ,such
principal and interest to i~s participants for subsequent disbursement to the beneficial owners of the Bonds us de.~cribcd herein. $cc "THE
BONDS -- Book-Entry-Only System."
Paymcm of the principal of and inteze-~t on the Bonds when duc will be in,stud by an insuruno; policy ~o bc i=~ucd by
simultaneously with th~ deliv~ of thc Bonds.
PRINCIPAL AMOUNTS, MATURITIES, INTEREST RAT~ AND INITIAL REOFFERING YIE~S
Initial Initial
Principal Maturity Integer Reoffeting Principal Matufit~ Interest R~ffcring
Amount (September 1) Rate Yield(ay Amount (September l) Rat~ Yield(a)
% 5 $~0,000 2013 [b) % %
295.000
$ 25,000 200a
60,000 2005
60.000 2006 310,000 20l~(b)
60,000 200~ 320.000 20~6(b)
245,0g0 2008 335,000 201~(bl
2~0,000 2009 ~45,000 2018(b)
255.000 2010 ~65,000 2019(b)
265.000 2011 385,000 2020(b)
2~0,000 2012
(a) Information with r:~;pcet to thc initial reoFf, ring ylclds of thc Bond~ h~s b;cn provided by the Underwriters (her;inafter defncd), hfitial rcofl'cring
yields representing thc initial offering pdc~ to the public of a substantial atnount of thc Bonds f~>r ;,ach maturity, which may bc changed rot
~ubscqu;n~ purchasers.
(b) Subject to option;d rcdcrnptioa ~ described above.
Thc prooe~c~ of the Bonds, together with certain lawfully a~,ailabl¢ funds of the District, will bc applied to advance refund ¢~rt~in
outstanding bonds o1' the District and to pay ce. re-in cost~ incurred in Cermet'lion w. ith the ia:aan~c of linc Bonds, $cc "PLAN OF
FINANCING ~ Us~ ~ Bond Pro~d_,¢." Th~ Bond,~, when issued, will coa:;tit,,te valid and binding obligation~ of the District and will
payable from thc proceeds of a continuing, direct annual ad valorem tax, without lctral limitation aa to rat; or amount, [eviud against all taxable
property located within the District, and arc further payable from and a;~ured by a pl,dge of and lien on ceftin Net R~v,nu~; (; defined
herein), if any, of the District's wate~orP~ and ~wer system (the "System"), to ibc extent and upon th; conditions described ~rei~,~
$yslzm i~ not ;xpzct;d to produ~ ~uffi;q~nt N;t R;v;nu;~ to mak¢ Significant conlfibulions, if any, to future debt sc~;¢ paym;nt;. 0;; l~;.
BON DS ~ S~ume ot' Payroll.' Neither the Sial< of Texa:, Bmzoria Courtly, Texa~. the City of P,arland, T~xas, nor any political ;ubdMfion
oth~ than thc Distfim s~[xll bc obligated to pay thc principal & and int¢ro~t on the goads, Neither the fMth and ~mdit nor th; l~ing power of
the Sta~e of Texas, Bmzoria Coumy, Texas, nor thc City of Pentland, Texas. is pledg~ to the paym,nt of the pfin~p~ of and iatem~t on
Bonds.
Th; Bunds will b~ dellver¢d when, m~ and if i~sued and accepted by ~he Undem'fitcrs, subject ~o prior sal¢ and to the appmv~ of the
Attorney Gcn~ral of T¢xa~; Paul A. Philbin &Asso;., P.C., Houston. Toxas, Bond Court*el; and McC~I, P~khura & Ho~on L.L,P., Dallas,
Texa:. Sp~dal T~ Coan,el. Certain legal mailers will be pa~d upon for thc Und;mfit;ra by McCall, Parkhu~t & Honda L.L.P., Dallas,
T;~aa. D;liv;~ of th; Bonds ia ~x~ctod on or about August 28, 2~3.
RBC DAIN RAUSCHER INC.
FIRST SOUTHWEST COMPANY
Under Texas law ad valorem taxes levied by each taxing authority other than the District create a lien which is on a parity
with the lien in favor of the District on all taxable property within the District. In addition to the ad valorem taxes
requked to retire the foregoing direct and overlapping debt, the various taxing authorities mentioned above also are
authorized by Texas law to assess, levy and collect ad valorem taxes for operation, maintenance, administration and/or
general revenue purposes. Certain of the jurisdictions have in the past levied such taxes. The District has the power to
assess, levy and collect ad valorem taxes for operation and maintenance purposes in an amount not to exceed $0.20 per
$100 of Assessed Valuation, and such taxes have been authorized by the duly quarried voters of the District. The
District levied a total tax of $0.917 per $100 of Assessed Valuation in 2002, consisting of debt service and maintenance
tax components of $0.90 and $0.017 per $100 of Assessed Valuation, respectively. See "TAX DATA - Maintenance
Tax" and "Tax Rate Distribution."
Debt Service Requirements
The following schedule sets forth the debt service requirements on the Outstanding Bonds, less the debt service
requirements on the Refunded Bonds, plus the principal and estimated interest requirements of the Bonds.
Less: Debt
Current Service on Total
Year Ending Total Debt Refunded Plus: -- The Bonds -- New Debt
December 31 Service Bonds Principal Interest* Service
2003 $1,417,417 $ 106,558
2004 1,472,813 213,115 $ 35,000
2005 1,466,225 213,115 60,000
2006 1,474,925 213,115 60,000
2007 1,475,535 213,115 60,000
2008 1,481,970 398,115 245,000
2009 1,484,238 397,200 250,000
2010 1,495,415 395,500 255,000
2011 1,508,615 398,200 265,000
2012 1,518,453 400,000 280,000
2013 1,524,848 400,900 290,000
2014 1,533,095 400,900 295,000
2015 1,548,118 405,000 310,000
2016 1,558,990 402,900 320,000
2017 1,566,588 404,900 335,000
2018 1,585,953 405,700 345,000
2019 1,600,778 410,300 365,000
2020 1,612,670 413,400 385,000
$27,326,646 $6,192,033 $4,155,000
$ 163447
139 660
138 760
137 710
136 450
130 570
123 945
116,295
108,080
98,980
89,265
79,088
68,083
56,403
43,840
30,385
15,785
$1,676,746
$1,310,860
1,458,145
1,452,770
1,460,570
1,460,130
1,465,305
1,467,608
1,478,860
1,491,710
1,506,533
1,512,928
1,516,460
1,532,205
1,544,173
1,553,090
1,569,093
1,585,863
1,600,055
$26,966,358
Average Annual Requirements - Subsequent to Refunding (2004-2020) ..................
Maximum Annual Requirement - Subsequent to Refunding (2020) .....................
$1,509,147
$1,600,055
* Interest is estimated at various rates for the maturities of the Bonds.
See "TAX DATA - Tax Rate Calculations" and "INVESTMENT CONSIDERATIONS - Maximum Impact on District
Tax Rates" for a discussion of the District's projected tax rates and the effect of the Bonds thereon.
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