R2009-111 - 2009-07-13RESOLUTION NO. R2009-111
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY
MUNICIPAL UTILITY DISTRICT N0.6 AUTHORIZING THE ISSUANCE OF
$3,140,000 UNLIMITED TAX REFUNDING BONDS, SERIES 2009.
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 issuance of such
bonds; and
WHEREAS, the City Council has considered the District's proposed $3,140,000
Unlimited Tax Refunding Bonds, Series 2009, and has found it to be acceptable; now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. All of the matters and facts set forth in the preamble hereof are true
and correct.
Section 2. The bond order of the board of directors of Brazoria County Municipal
Utility District No. 6, authorizing the issuance of its $3,140,000 Unlimited Tax Refunding
Bonds, Series 2009, is hereby approved.
Section 3. 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 13th day of July, A. D., 2009.
RESOLUTION NO. R2009-111
PASSED, APPROVED and ADOPTED this the 13th day of July, A. D., 2009.
TOM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
2
SOURCES AND USES OF FUNDS
Brazoria MUD No.6
Unlimted Tax Refunding Bonds,Series 2009
Market Prices as of May 28,2009
Insured with'A'underlying Rating
***Preliminary-For Discussion Purposes Only***
Dated Date 09/01/2009
Delivery Date 09/01/2009
Sources:
Bond Proceeds:
Par Amount 2,910,000.00
Premium 192,652.65
3,102,652.65
Uses:
Refunding Escrow Deposits:
Cash Deposit 2,910,000.00
Delivery Date Expenses:
Cost of Issuance 123,210.00
Underwriter's Discount 29,100.00
Bond Insurance(1.0%) 37,202.00
189,512.00
Other Uses of Funds:
Additional Proceeds 3,140.65
3,102,652.65
Jun 3,2009 5:06 pm Prepared by RBC Capital Markets(kca) (Finance 6.011 Brazoria MUD 6:BMUD6-2009,2009) Page 1
SUMMARY OF REFUNDING RESULTS
Brazoria MUD No.6
Unlimted Tax Refunding Bonds,Series 2009
Market Prices as of May 28,2009
Insured with'A'underlying Rating
***Preliminary-For Discussion Purposes Only***
Dated Date 09/01/2009
Delivery Date 09/01/2009
Arbitrage yield 3.422634%
Escrow yield -
Bond Par Amount 2,910,000.00
True Interest Cost 3.596883%
Average Life 6.369
Par amount of refunded bonds 2,910,000.00
Average coupon of refunded bonds 5.070632%
Average life of refunded bonds 6.412
PV of prior debt to 09/01/2009 @ 3.422634% 3,180,749.88
Net PV Savings 118,439.88
Percentage savings of refunded bonds 4.070099%
Percentage savings of refunding bonds 4.070099%
•
Jun 3,2009 5:06 pm Prepared by RBC Capital Markets(kca) (Finance 6.011 Brazoria MUD 6:BMUD6-2009,2009) Page 2
SAVINGS
Brazoria MUD No.6
Unlimted Tax Refunding Bonds,Series 2009
Market Prices as of May 28,2009
Insured with'A'underlying Rating
***Preliminary-For Discussion Purposes Only***
Present Value
Prior Refunding Annual to 09/01/2009
Date Debt Service Debt Service Savings Savings @ 3.4226344%
03/01/2010 75,780.00 48,900.00 26,880.00 - 26,427.74
09/01/2010 75,780.00 88,900.00 -13,120.00 13,760.00 -12,682.22
03/01/2011 75,780.00 48,100.00 27,680.00 - 26,306.21
09/01/2011 325,780.00 338,100.00 -12,320.00 15,360.00 -11,511.54
03/01/2012 67,030.00 48,100.00 18,930.00 - 17,390.19
09/01/2012 332,030.00 338,100.00 -6,070.00 12,860.00 -5,482.43
03/01/2013 59,875.00 48,100.00 11,775.00 - 10,456.25
09/01/2013 339,875.00 338,100.00 1,775.00 13,550.00 1,549.69
03/01/2014 52,875.00 42,300.00 10,575.00 - 9,077.30
09/01/2014 352,875.00 352,300.00 575.00 11,150.00 485.26
03/01/2015 45,375.00 36,100.00 9,275.00 - 7,695.77
09/01/2015 365,375.00 361,100.00 4,275.00 13,550.00 3,487.42
03/01/2016 37,375.00 29,600.00 7,775.00 - 6,235.91
09/01/2016 377,375.00 369,600.00 7,775.00 15,550.00 6,130.99
03/01/2017 28,875.00 22,800.00 6,075.00 - 4,709.85
09/01/2017 388,875.00 382,800.00 6,075.00 12,150.00 4,630.61
03/01/2018 19,875.00 15,600.00 4,275.00 - 3,203.75
09/01/2018 404,875.00 395,600.00 9,275.00 13,550.00 6,833.87
03/01/2019 10,250.00 8,000.00 2,250.00 - 1,629.92
09/01/2019 420,250.00 408,000.00 12,250.00 14,500.00 8,724.70
3,856,180.00 3,720,200.00 135,980.00 135,980.00 115,299.23
Savings Summary
PV of savings from cash flow 115,299.23
Plus:Refunding funds on hand 3,140.65
Net PV Savings 118,439.88
Jun 3,2009 5:06 pm Prepared by RBC Capital Markets(kca) (Finance 6.011 Brazoria MUD 6:BMUD6-2009,2009) Page 3
BOND PRICING
Brazoria MUD No.6
Unlimted Tax Refunding Bonds,Series 2009
Market Prices as of May 28,2009
Insured with'A'underlying Rating
***Preliminary-For Discussion Purposes Only***
Principal Offer Price
Maturity per$5,000 per$5,000 CAB Value Premium
Bond Component Date Amount Rate Yield Price at Maturity at Maturity at Maturity (-Discount)
Serial Bond:
09/01/2010 40,000 4.00000000% 1.150% 102.82500000 - - - 1,130.00
09/01/2013 290,000 4.00000000% 2.550% 105.48000000 - - . - 15,892.00
09/01/2014 310,000 4.00000000% 2.750% 105.80200000 - - - 17,986.20
09/01/2015 325,000 4.00000000% 3.000% 105.45300000 - - - 17,722.25
09/01/2016 340,000 4.00000000% 3.150% 105.30200000 - - - 18,026.80
09/01/2017 360,000 4.00000000% 3.300% 104.88600000 - - - 17,589.60
09/01/2018 380,000 4.00000000% 3.500% 103.83100000 - - - 14,557.80
09/01/2019 400,000 4.00000000% 3.750% 102.06800000 - - - 8,272.00
2,445,000 - 111,176.65
PCAB Bond:
09/01/2011 240,000 9.68926004% 2.250% 115.54445833 4,137.931 4,781.15 290,000 37,306.70
09/01/2012 225,000 8.64044600% 2.500% 119.63080000 3,879.310 4,640.85 290,000 44,169.30
465,000 580,000 81,476.00
2,910,000 580,000 192,652.65
Dated Date 09/01/2009
Delivery Date 09/01/2009
First Coupon 03/01/2010
Par Amount 2,910,000.00
Premium 192,652.65
Production 3,102,652.65 106.620366%
Underwriter's Discount -29,100.00 -1.000000%
Purchase Price 3,073,552.65 105.620366%
Accrued Interest -
Net Proceeds 3,073,552.65
/
Jun 3,2009 5:06 pm Prepared by RBC Capital Markets(kca) (Finance 6.011 Brazoria MUD 6:BMUD6-2009,2009) Page 4
SUMMARY OF BONDS REFUNDED
Brazoria MUD No.6
Unlimted Tax Refunding Bonds,Series 2009
Market Prices as of May 28,2009
Insured with'A'underlying Rating
***Preliminary-For Discussion Purposes Only***
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Unlimited Tax Bonds,Series 1999,1999:
SERIAL 09/01/2011 7.000% 250,000.00 09/01/2009 100.000
09/01/2012 5.400% 265,000.00 09/01/2009 100.000
09/01/2013 5.000% 280,000.00 09/01/2009 100.000
09/01/2014 5.000% 300,000.00 09/01/2009 100.000
09/01/2015 5.000% 320,000.00 09/01/2009 100.000
09/01/2016 5.000% 340,000.00 09/01/2009 100.000
09/01/2017 5.000% 360,000.00 09/01/2009 100.000
09/01/2018 5.000% 385,000.00 09/01/2009 100.000
09/01/2019 5.000% 410,000.00 09/01/2009 100.000
2,910,000.00
Jun 3,2009 5:06 pm Prepared by RBC Capital Markets(kca) (Finance 6.011 Brazoria MUD 6:BMUD6-2009,2009) Page 5
o ,
ESCROW STATISTICS
Brazoria MUD No.6
Unlimted Tax Refunding Bonds,Series 2009
Market Prices as of May 28,2009
Insured with'A'underlying Rating
***Preliminary-For Discussion Purposes Only***
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
2,910,000.00 - - - 2,910,000.00 - -
2,910,000.00 2,910,000.00 0.00 0.00
Delivery date 09/01/2009
Arbitrage yield 3.422634%
Jun 3,2009 5:06 pm Prepared by RBC Capital Markets(kca) (Finance 6.011 Brazoria MUD 6:BMUD6-2009,2009) Page 6
i4t RBC Capital Markets@ Eugene B.Shepherd
Ten•z Managing Director
.,, Fixed Income Banking
Ra ]001 Fannin Street,Suite 1200
•Houston,Texas 77002
•
Phone:(713)651-3338
Fax:(713)651-3347
Eugene.Shepherd@rbccm.com
June 18, 2009
RICEIVED
Mr. Darrin.M. Coker • JUG 2 3 2009
City Attorney
City of Pearland
Y
3519 Liberty Drive •
Pearland,TX 77581 •
•
Re: $3,140,000 Brazoria County Municipal Utility District No. 6
Unlimited Tax Refunding Bonds, Series 2009
Dear Mr. Coker:
•
At the regular Board of Directors Meeting of the Brazoria County Municipal Utility District No.
6 (the "District"), the Board authorized our firm and Bond Counsel, Schwartz, Page &Harding,
L.L.P. to proceed with the details relating to a current refunding for the District's Series 1999
Bonds. The purpose of the refunding would be to lower the District's annual debt service
payments.
•
The District respectfully requests Council's review and approval of the request to issue Series
2009 Refunding Bonds. The sale of Bonds must occur on or before August 3, 2009, so that
funds are available prior to the District's next debt service payment, September 1, 2009. Review
and approval by the Council at the earliest Council meeting would be greatly appreciated.
Thank you very much for your consideration of our request. If you have any questions, please
do not hesitate in telephoning me at 713/651-333.8.
Sincerely yours, •
Eugene B. Shepherd
Managing Director
EBS/rr •
cc: Peter Harding, Schwartz, Page&Harding,L.L£P.