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R2002-0002 01-14-02 RESOLUTION NO. R2002-2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 2 AUTHORIZING THE ISSUANCE OF $1,640,000 WATERWORKS AND SEWER SYSTEM COMBINATION UNLIMITED TAX AND REVENUE BONDS, SERIES 2002. WHEREAS, the Brazoria County Municipal Utility District No. 2 (the "District") is located within the extraterritorial jurisdiction of the City of Pearland, Texas (the "City"); and WHEREAS, by Resolution 81-2, dated January 26, 1981,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 81,640,000 Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 2002, 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 Section 1. 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 $1,640,000 Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 2002, 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. PASSED, APPROVED and ADOPTED this the A. D., 2002. 14 day of January TOM REID MAYOR ATTEST: APPROVED AS TO FORM: D~:IBIIXl M. COKER CITY ATTORNEY 2 Debt Service Requirements The following schedule sets forth the debt service requirements of the Outstanding Bonds and the principal of and estimated interest on the Bonds. Year Ending Current Total The Bonds Total New December 31 Debt Service Principal Interest * Debt Service 2002 $ 1,328,048 $ 43,050 $ 1,371,098 2003 1,327,258 $ 80,000 86,100 1,493,358 2004 1,328,988 80,000 81,900 1,490,888 2005 1,327,725 90,000 77,700 1,495,425 2006 1,331,289 90,000 72,975 1,494,264 2007 1,332,205 95,000 68,250 1,495,455 2008 1,338,285 95,000 63,263 1,496,548 2009 1,337,735 100,000 58,275 1,496,010 2010 1,339,460 105,000 53,025 1,497,485 2011 1,338,512 110,000 47,513 1,496,025 2012 1,339,597 115,000 41,738 1,496,335 2013 1,342,312 120,000 35,700 1,498,012 2014 1,338,561 135,000 29,400 1,502,961 2015 1,342,731 135,000 22,313 1,500,044 2016 1,343,925 145,000 15,225 1,504,150 2017 1,348,850 145,000 7,613 1,501,463 $21,385,481 $1,640,000 $804,040 $23,829,521 Average Annual Requirements - (2002-2017) .............................. Maximum Annual Requirement - (2016) ................................. $1,489,345 $1,504,463 * Estimated at 5.25% per annum. 29 ON CITY LETTERHEAD Brazoria County Municipal Utility District No. 2 c/o Paul A. Phzlbin & Assoc., P.C. 6363 Woodway, Suite 725 Houston, TX 77057 RE: Brazoria County Municipal Utility District No. 2 $1,640,000 Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 2002 Dear Sirs: P ursuant to the authority vested in me by Section 30.102(c) of t he City of Pearland, Texas, Code of Ordinances, and the City Charter of the City of Pearland, Texas, I, Tom Reid, as Mayor of the said City of Pearland, Texas, do hereby state the following: 1. Brazoria County Municipal Utility District No. 2 is in compliance with Article 4 of Chapter 30 (Utilities) of the Code of Ordinances of the City o f Pearland, Texas, and with Ordinance Nos. 411, 411-1, 443, and 443-1 of the said City of Pearland, Texas; 2. I hereby, on behalf of the City Council of the City o f Pearland, Texas, approve issuance of the above - mentioned Municipal Utility District Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 2002; and 3. I further hereby approve the attached Bond Order in form and substance, which will be adopted by said Brazoria County Municipal Utility District No. 2, in authorizing the issuance of said bonds, a copy o f the final Bond Order will be attached hereto and made a part hereof for all purposes as Exhibit "A". Sincerely, Tom Reid, Mayor LETTER TO CITY OF PEARLAND--BOND SALE APPROVAL.wpd PAUL A. PHILBIN & ASSOC., P.C. PAUL A PHILBIN Attorneys at Law 6363 Woodway • Ste. 725 Houston, Texas 77057-1792 (713) 783-4120 • FAX (713) 783-8812 January 2, 2001 Mr. Darrin Coker, City Attorney City of Pearland 3519 Liberty P earland, TX 77581 Dear Mr. Coker: RE: Brazoria County Municipal Utility District No. 2 $1,640 000 Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 2002; Fifth Bond Issue Brazoria County Municipal Utility District No. 2 respectfully submits for review a copy of its proposed 'Bond Order" In accordance with the provisions of City of Pearland Ordinance No. 411 and 411.1, the Board requests a letter from the Mayor t o the effect that the District is in compliance with O rdinance No. 411 and 411.1. The District's Financial Advisor, Mr. Craig Rathmann, has provided you the Maturity S chedule under separate cover. The District is expected to receive the TNRCC approval of the Bonds for sale in the first part of next week. The District proposes to sell bonds in February of 2002 and we understand t hat the request for approval is scheduled for City Council consideration on the January 14, 2002 agenda. We are enclosing three (3) copies of this letter and the draft Bond Order for distribution to the appropriate City personnel. S hould you or any members of Council or Staff require any additional information please feel free to call. Also, Mr. Rathmann will be available to discuss the Maturity Schedule LETTER TO CITY OF PEARLAND--BOND SALE APPROVAL.wpd Mr. Darrin Coker, City Attorney P age 2 January 2, 2002 should you wish to do so which had been previously provided to t he City. As always, your timely assistance in processing t his matter is appreciated. Very truly yours, \\ / CWL, tV-LA\1)\\A Paul A. Philbin Attorney for District vjw encs. c Brazoria County MUD No. 2 Board of Directors Mr. Craig Rathmann, RBC Dain Rauscher Inc. Mr. Bryan Jordan, Jones & Carter Mr. Tom Wilcox, Silverlake Development VIA FEDEX LETTER TO CITY OF PEARLAND--BOND SALE APPROVAL.wpd