R-2012-007-2012-01-09 RESOLUTION NO. R2012 -7
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
APPROXIMATELY $4,000,000 UNLIMITED TAX REFUNDING BONDS,
SERIES 2012.
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 $4,000,000
Unlimited Tax Refunding Bonds, Series 2012, 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 $4,000,000 Unlimited Tax Refunding
Bonds, Series 2012, 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 9 day of January, A. D., 2012.
RESOLUTION NO. R2012-7
TC1
MAYOR
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
Eugene B.She herd RAC Capital Markets® � p
„ate; Managing Director
Fixed Income Banking
1001 Fannin Street,Suite 1200
_ 4 Houston,Texas 77002
qq� Phone:(713)651-3338
tE4 2- ��tA Fax:(713)651-3347
`•FrAi gene.Shepherd@rbccm.com
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December 22,2011
Mr.Darrin M. Coker
City Attorney
City of Pearland
3519 Liberty Drive
Pearland,TX 77581
Re: $4,000,000 (approximate)Brazoria County Municipal Utility District No. 6
Unlimited Tax Refunding Bonds,Series 2012
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 of the District's Series 2001 and 2002 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 2012
Refunding Bonds. The Bonds should be sold during the month of January or February, 2012. 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 $239,000, which is 5.30% of the Bonds being refunded. The average maturity of the
refunding bonds is 5.7 years. The average life of the Bonds being refunded is 5.8 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.
S.David Smalling
•
Nov 11,2011 10:19 am Prepared by RBC Capital Markets,LLC (Finance 6,021 BrazoriaMUD6:BMUD6-REF 2012,REF 2012) Page 4
SAVINGS
Brazoria County Municipal Utility District H6
Proposed 2012 Refunding
PRELIMINARY
Market Rates as of November 10,2011
Present Value
Prior Refunding Refunding Refunding to 01/18/2012
Date Debt Service Debt Service Receipts Net Cash Flow Savings @ 3.4570873%
09/01/2012 301,788.75 291,100.00 6,098.75 285,001.25 16,787.50 17,779.15
09/01/2013 506,470.00 480,050.00 480,050.00 26,420.00 25,454.75
•
09/01/2014 516,545.00 492,950.00 492,950.00 23,595.00 21,952.82
• 09/01/2015 520,030.00 495,450.00 495,450.00 24,530.00 22,014.38
09/01/2016 522,337.50 498,900.00 498,900.00 23,437.50 20,252.10
09/01/2017 523,200.00 496,900.00 496,900.00 26,300.00 21,879.83
• 09/01/2018 533,075.00 509,600.00 509,600.00 23,475.00 18,837.14
09/01/2019 536,475.00 512,200.00 512,200.00 24,275.00 18,790.59
09/01/2020 538,650.00 514,000.00 514,000.00 24,650.00 18,406.78
09/01/2021 545,050.00 520,000.00 520,000.00 25,050.00 18,045.63
5,043,621.25 4,811,150.00 6,098.75 4,805,051.25 238,570.00 203,413.17
Savings Summary
PV of savings from cash flow 203,413.17
Plus:Refunding funds on hand 1,844.70
Net PV Savings 205,257.87
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