R2010-034 - 2010-03-08 RESOLUTION NO. R2010 -34
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
$2,555,000 UNLIMITED TAX REFUNDING BONDS, SERIES 2010.
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 $2,555,000
Unlimited Tax Refunding Bonds, Series 2010, 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 $2,555,000 Unlimited Tax Refunding
Bonds, Series 2010, 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.
RESOLUTION NO. R2010 -34
PASSED, APPROVED and ADOPTED this the 8 day of March, A. D., 2010.
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T EID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
art"—
DARRIN M. COKER
CITY ATTORNEY
2
- - RBC Capital Markets® Eugene B. Shepherd
1:7 Managing Director
Fixed Income Banking
;RBC;® 1001 Fannin Street,Suite 1200
Houston,Texas 77002
Phone:(713)651-3338
Fax:(713)651-3347
Eugene.Shepherd@rbccm.com
February 12,2010 RECEIVED
FEB17 2009
Mr.Darrin M. Coker arif ATTORNEY
City Attorney
City of Pearland
3519 Liberty Drive
Pearland,TX 77581
Re: $2,555,000 (approximate) Brazoria County Municipal Utility District No. 6
Unlimited Tax Refunding Bonds, Series 2010
Dear Mr. Coker:
At the regular monthly 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 refunding for the District's Series
2000 Bonds. The purpose of the refunding would be to lower the District's total debt service
payments.
The District respectfully requests Council's review and approval of the request to issue Series
2010 Refunding Bonds. The Bonds should be sold during the month of'March, 2010. Review
and approval by the Council at the earliest Council meeting would be greatly appreciated.
I am enclosing a summary of the results of the refunding. The reduction in total debt service is
approximately $186,000, which is 6.68% of the Bonds being refunded. The average maturity of
the refunding bonds is 6.235 years. The average life of the Bonds being refunded is 6.42 years;
therefore,no extension of final maturity.
Thank you very much for your consideration of our request. If you have any questions, please
do not hesitate in telephoning me at 713/651-3338.
Sincerely yours,
Eugene B. Shepherd
Managing Director
EBS/rr
cc: Peter Harding, Schwartz, Page&Harding, L.L.P.
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 1
SUMMARY OF REFUNDING RESULTS
Brazorla County Municipal Utility District#6
Refund Case
------------------
A+BQScale plus 15 bps-01/25/2010
Dated Date 04/01/2010
Delivery Date 04/01/2010
Arbitrage yield 3.351765%
Escrow yield 0.11066B%
Bond Par Amount 2,555,000.00
True interest Cost 3.543739%
Net Interest Cost 3.559527%
Average Coupon 3.594776%
Average Life 6.235
Par amount of refunded bonds 2,425,000.00
Average coupon of refunded bonds 5.715915%
Average life of refunded bonds 6.417
PV of prior debt to 04/01/2010 @ 3.361766% 2,757,120.38
Net PV Savings 162,153.54
Percentage savings of refunded bonds 6.686744%
Percentage savings of.refunding bonds 6.346518%
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation
(Finance 6.OI5 BrazoriaMUD6;BMUD6-REF,REF) Page 2
SOURCES AND USES OF FUNDS
Brazoria County Municipal Utility District H6
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Sources:
Bond Proceeds:
Par Amount 2,555,000.00
Original Issue Discount -17,807.65 •
Premium 48,972.60
2,586,164.95
Other Sources of Funds:
Prior Debt Service Funds 11,486.04
2,597,650.99
Uses:
Refunding Escrow Deposits:
Cash Deposit 0.84
SLGS Purchases 2,492,766.00
2,492,766.84
Cost of Issuance:
Other Cost of Issuance 76,650.00
Underwriter's Discount:
Other Underwriter's Discount 25,550.00
Other Uses of Funds:
Additional Proceeds 2,684.15
2,597,650.99
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 3
SUMMARY OF BONDS REFUNDED
Brazoria County Municipal Utility District tt6
Refund Case
A+BQScale plus 15 bps-01/25/2010
Maturity Interest Par Call . Call
Bond Date Rate Amount Date Price
Unlimited Tax Bonds,Series 2000,2000:
SERIAL 09/01/2011 5.450% 180,000.00 09/01/2010 100.00D
09/01/2012 5.500% 195,000,00 09/01/2010 100.000
09/01/2013 5.600% 205,000.00 09/01/2010 100.000
09/01/2014 5.650% 220,000,00 09/01/2010 100.000
09/01/2015 5.700% 230,000.00 09/01/2010 100.000
09/01/2016 5.750% 245,000.00 09/01/2010 100.000
09/01/2017 5.800% 260,000.00 09/01/2010 100.000
09/01/2018 5.850% 280,000.00 09/01/2010 100.000
09/01/2019 5.900% 295,000.00 09/01/2010 100.000
09/01/2020 5.500% 315,000,00 09/01/2010 100.000
•
2,425,000.00
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:8MUD6-REF,REF) Page 4
SAVINGS
Brazoria County Municipal Utility District H6
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Present Value
Prior Prior Prior Refunding Annual to 04/01/2010
Date Debt Service Receipts Net Cash Flow Debt Service Savings Savings @ 3.3617661%
04/01/2010 11,486.04 -11,486.04 -11,486.04 -11,486.04
09/01/2010 68,916.25 68,916.25 36,695.31 32,220.94 20,734.90 31,776.45
03/01/2011 68,916.25 68,916.25 44,034.38 24,881.88 24,132.98
09/01/2011 248,916.25 248,916.25 259,034.38 -10,118.13 14,763.75 -9,651.36
03/01/2012 64,011.25 64,011.25 40,809.38 23,201.88 21,765.69
09/01/2012 259,011.25 259,011.25 265,809.38 -6,798.13 .16,403.75 -6,271.90
03/01/2013 58,648.75 58,648.75 37,434.38 21,214.38 19,248.68
09/01/2013 263,648.75 263,648.75 267,434.38 -3,785.63 17,428.75 -3,378.07
03/01/2014 52,908.75 52,908.75 33,984.38 18,924.38 16,607.86
09/01/2014 272,908.75 272,908.75 273,984.38 -1,075.63 17,848.75 •928.35
03/01/2015 46,693.75 46,693.75 30,384.38 16,309.38 13,843.66
09/01/2015 276,693.75 276,693.75 275,384.38 1,309.38 17,618.75 1,093.05
03/01/2016 40,138.75 40,138.75 26,096.88 14,041.88 11,528.16
09/01/2016 285,138.75 285,138.75 281,096.88 4,041.88 18,083.75 3,263.46
03/01/2017 33,095.00 33,095.00 21,634.38 11,460.63 9,100.48
09/01/2017 293,095.00 293,095.00 286,634.38 6,460.63 17,921.25 5,045.35
03/01/2018 25,555.00 25,555.00 16,334.38 9,220.63 7,081.71
09/01/2018 305,555.00 305,555.00 301,334.38 4,220.63 13,441.25 3,187.98
03/01/2019 17,365.00 17,365.00 11,346.88 6,018.13 4,470.54
09/01/2019 312,365.00 312,365.00 301,346.88 11,018.13 17,036.25 8,049.47
03/01/2020 8,662.50 8,662.50 5,909.38 2,753.13 1,978.09
09/01/2020 323,662.50 323,662.50 310,909.38 12,753.13 15,506.25 9,011.51
3,325,906.25 11,486.04 3,314,420.21 3,127,632.81 186,787.40 186,787.40 •159,469.39
Savings Summary
PV of savings from cash flow 159,469.39
Plus:Refunding funds on hand 2,684.15
Net PV Savings 162,153.54
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 5
BOND DEBT SERVICE
Brazoria County Municipal Utility District#6
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Period
Ending Principal Coupon Interest Debt Service
09/01/2010 36,695.31 36,695.31
03/01/2011 44,034.38 44,034.38
09/01/2011 215,000 3.000% 44,034.38 259,034.38
03/01/2012 40,809.38 40,809.38
09/01/2012 225,000 3.000% 40,809.38 265,809.38 .
03/01/2013 37,434.38 37,434.38
09/01/2013 230,000 3.000% 37,434.38 267,434.38
03/01/2014 33,984.38 33,984.38
09/01/2014 240,000 1.000% 33,984.38 273,984.38
03/01/2015 30,384.38 30,384.38
09/01/2015 245,000 3.500% 30,384.38 275,384.38
03/01/2016 26,096.88 26,096.88
09/01/2016 255,000 3.500% 26,096.88 281,096.88
03/01/2017 21,634.38 21,634.38
09/01/2017 265,000 4.000% 21,634.38 286,634.38
03/01/2018 16,334.38 16,334.38
09/01/2018 285,000 3.500% 16,334.38 301,334.38
03/01/2019 11,346.88 11,346.88
09/01/2019 290,000 3.750% 11,346.88 301,346.88
03/01/2020 5,909.38 5,909.38 •
09/01/2020 305,000 3.875% 5,909.38 310,909.38
2,555,000 572,632.81 3,127,632.81
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 6
ESCROW REQUIREMENTS
Brazoria County Municipal Utility District 06
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Period Principal
Ending Interest Redeemed Total
09/01/2010 68,916.25 2,425,000.00 2,493,916.25
68,916.25 2,425,000.00 2,493,916.25
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazorlaMUD6:BMUD6-REF,REF) Page 7
ESCROW DESCRIPTIONS
Brazoria County Municipal Utility District#6
Refund Case
A+BQScale plus 15 bps-01/25/2010
Type of Type of Maturity First Int Par Max
Security SLGS Date Pmt Date Amount Rate Rate
Apr 1,2010:
SLGS Certificate 09/01/2010 09/01/2010 2,492,766 0.110% 0.110%
2,492,766
SLGS Summary
SLGS Rates File 25JAN10
Total Certificates of indebtedness 2,492,766.00
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 8
ESCROW COST
Brazoria County Municipal Utility District N6
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Type of Maturity Par Total
Security Date Amount Rate Cost
SLGS 09/01/2010 2,492,766 0.110% 2,492,766.00
2,492,766 2,492,766.00
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost
04/01/2010 2,492,766 0.84 2,492,766.84
2,492,766 0.84 2,492,766.84
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 9
ESCROW CASH FLOW
Brazorla County Municipal Utility District#6
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Net Escrow
Date Principal interest Receipts
09/01/2010 2,492,766.00 1,149.40 2,493,915.40
2,492,766.00 1,149.40 2,493,915.40
Escrow Cost Summary
Purchase date 04/01/2010
Purchase cost of securities 2,492,766.00
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 10
ESCROW SUFFICIENCY
Brazorla County Municipal Utility District 116
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
Escrow Net Escrow Excess Excess _
Date Requirement Receipts Receipts Balance
04/01/2010 0.84 0.84 0.84
09/01/2010 2,493,916.25 2,493,915.40 -0.85 -0.01
2,493,916.25 2,493,916.24 -0.01
9
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 11
ESCROW STATISTICS
Brazoria County Municipal Utility District#6
Refund Case
• A+BQ Scale plus 15 bps-01/25/2010
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of •
Escrow Escrow Cost (years) Date Date Cost Arbitrage Dead Time
Prior Debt(PRIOR):
l&S 11,486.04 0.416 0.110749% 0.110749% 11,332.82 153.22
Global Proceeds Escrow:
2,481,280.80 0.416 0.110668% 0.110668% 2,448,180.10 '33,100.69 . 0.01
2,492,766.84 2,459,512.92 33,253.91 0.01
Delivery date 04/01/2010
Arbitrage yield 3.361766%
Jan 25,2010 2:59 pm Prepared by RBC Capital Markets Corporation (Finance 6.015 BrazoriaMUD6:BMUD6-REF,REF) Page 12
PROOF OF COMPOSITE ESCROW YIELD
Brazoria County Municipal Utility District 06
Refund Case
A+BQ Scale plus 15 bps-01/25/2010
All restricted escrows funded by bond proceeds
Present Value
Security to 04/01/2010
Date Receipts @ 0.1106683%
09/01/2010 2,482,424.11 2,481,280.00
2,482,424.11 2,481,280.00
Escrow Cost Summary
Purchase date 04/01/2010
Purchase cost of securities 2,481,280.00
Target for yield calculation 2,481,280.00