R-2015-044 2015-03-23 RESOLUTION NO. R2015-44
A Resolution of the City Council of the City of Pearland, Texas,
approving a bond order of Brazoria County Municipal Utility District No.
16 authorizing the issuance of approximately $4,145,000 Unlimited Tax
Refunding Bonds, Series 2015.
WHEREAS, the Brazoria County Municipal Utility District No. 16 (the "District") is
located within the extraterritorial jurisdiction of the City of Pearland, Texas (the "City"); and
WHEREAS, by Resolution No. R 86-3, dated January 27, 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 $4,145,000
Unlimited Tax Refunding Bonds, Series 2015, 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. 16, authorizing the issuance of its $4,145,000 Unlimited Tax Refunding
Bonds, Series 2015, 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. R2015-44
PASSED, APPROVED and ADOPTED this the 23rd day of March, A. D., 2015.
TOM REID
MAYOR
ATTEST:
`„►III1,.
YINGLODITTG T141 C/
Y SE e ETARY `
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
RESOLUTION NO. R2015-44
Frs Southwe t
Brazoria County MUD No.16-Summary of Refunding Bonds Results
Refunding for Interest Cost Savings"
Refunding Bonds,Series 2015 ..
Principal Amount of Bonds to be Refunded $ 3,680,000
Principal Amount of Refunding Bonds $ 4,145,000
All-In True Interest Rate on Refunding Bonds 3.9153%
Average Coupon on Refunded Bonds 5.3456%
Average Life of Refunding Bonds 10.5419
Average Life of Refunded Bonds 11.3349
Total Debt Service Savings $293,364.68
Average Annual Savings $ 15,440.25
Net Present Value Savings S 201,897.29 (a)
Present Value Savings as a Percent of
Principal Amount of Bonds Being Refunded
(a)Net present value savings are net of transaction expenses. There is approximately$116,217 of
negative arbitrage in the refunding escrow.
•Preliminary,for discussion purposes only.
SOURCES AND USES OF FUNDS
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
Dated Date 04/01/2015
Delivery Date 04/28/2015
Sources:
Bond Proceeds:
Par Amount 4,145,000.00
Accrued Interest 9,768.38
Net Premium 1,119.15
4,155,887.53
Uses:
Refunding Escrow Deposits:
Cash Deposit 10.22
SLGS Purchases 3,965,887.00
3,965,897.22
Other Fund Deposits:
Accrued Interest 9,768.38
Delivery Date Expenses:
Cost of Issuance 28,505.00
Underwriter's Discount 62,175.00
Bond Counsel 45,595.00
Financial Advisor 41,450.00
177,725.00
Other Uses of Funds:
Additional Proceeds 2,496.93
4,155,887.53
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BC16-20I5REF,2015REF) Page 1
SUMMARY OF REFUNDING RESULTS
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
Dated Date 04/01/2015
Delivery Date 04/28/2015
Arbitrage yield 3.401631%
Escrow yield 0.953587%
Value of Negati ve Arbitrage 116,217.10
Bond Par Amount 4,145,000.00
True Interest Cost 3.577832%
Net Interest Cost 3.573992%
Average Coupon 3.435251%
Average Life 10.542
Par amount of refunded bonds 3,680,000.00
Average coupon of refunded bonds 5.345636%
Average life of refunded bonds 11.335
PV of prior debt to 04/28/2015 a 3.915335% 4,170,291.44
Net PV Savings 201,897.29
Percentage savings of refunded bonds 5.486339%
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BC16-2015REF,2015REF) Page 2
SAVINGS
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
Present Value
Prior Refunding Refunding Refunding Annual to 04/28/2015
Date Debt Service Debt Service Receipts Net Cash Flow Savings Savings @ 3.9153349%
04/28/2015 9,768.38 (9,768.38) 9,768.38 9,768.38
09/01/2015 96,506.25 124,268.75 124,268.75 (27,762.50) (27,397.12)
03/01/2016 96,506.25 64,422.50 64,422.50 32,083.75 14,089.63 31,053.58
09/01/2016 96,506.25 114,422.50 114,422.50 (17,916.25) (17,008.02)
03/01/2017 96,506.25 63,922.50 63,922.50 32,583.75 14,667.50 30,338.06
09/01/2017 201,506.25 218,922.50 218,922.50 (17,416.25) (15,904.55)
03/01/2018 94,209.38 62,372.50 62,372.50 31,836.88 14,420.63 28,515.27
09/01/2018 204,209.38 222,372.50 222,372.50 (18,163.12) (15,955.76)
03/01/2019 91,803.13 60,772.50 60,772.50 31,030.63 12,867.51 26,736.08
09/01/2019 206,803.13 220,772.50 220,772.50 (13,969.37) (11,804.95)
03/01/2020 89,287.50 59,172.50 59,172.50 30,115.00 16,145.63 24,960.31)
09/01/2020 284,287.50 294,172.50 294,172.50 (9,885.00)
03/01/2021 84,187.50 56,528.75 56,528.75 27,658.75 17,773.75 22,052.62
09/01/2021 289,187.50 296,528.75 296,528.75 (7,341.25) (5,740.87)
03/01/2022 78,793.75 53,528.75 53,528.75 25,265.00 17,923.75 19,377.92
09/01/2022 288,793.75 298,528.75 298,528.75 (9,735.00) (7,323.25)
03/01/2023 73,215.63 50,160.00 50,160.00 23,055.63 13,320.63 17,010.81
09/01/2023 293,215.63 300,160.00 300,160.00 (6,944.37) (5,025.29)
03/01/2024 67,418.75 46,410.00 46,410.00 21,008.75 14,064.38 14,911.06
09/01/2024 292,418.75 296,410.00 296,410.00 (3,991.25) (2,778.42)
03/01/2025 61,512.50 42,535.00 42,535.00 18,977.50 14,986.25 12,957.09
09/01/2025 296,512.50 297,535.00 297,535.00 (1,022.50) (684.72)
03/01/2026 55,340.63 38,391.25 38,391.25 16,949.38 15,926.88 11,232.24
09/01/2026 300,340.63 298,391.25 298,391.25 1,949.38
03/01/2027 48,950.00 33,971.25 33,971.25 14,978.75 16,928.13 9,463.78
09/01/2027 303,950.00 303,971.25 303,971.25 (21.25) (13.17)
03/01/2028 42,340.63 29,246.25 29,246.25 13,094.38 13,073.13 7,958.55
09/01/2028 307,340.63 304,246.25 304,246.25 3,094.38 1,844.60
03/01/2029 35,512.50 24,296.25 24,296.25 11,216.25 14,310.63 6,557.78
09/01/2029 310,512.50 304,296.25 304,296.25 6,216.25 3,564.66
03/01/2030 28,200.00 19,116.25 19,116.25 9,083.75 15,300.00 5,108.99
09/01/2030 313,200.00 304,116.25 304,116.25 9,083.75 5,010.89
03/01/2031 20,662.50 13,701.25 13,701.25 6,961.25 16,045.00 3,766.32
09/01/2031 320,662.50 308,701.25 308,701.25 11,961.25 6,347.26
03/01/2032 12,787.50 8,022.50 8,022.50 4,765.00 16,726.25 2,480.01
09/01/2032 322,787.50 308,022.50 308,022.50 14,765.00 7,537.09
03/01/2033 4,687.50 2,172.50 2,172.50 2,515.00 17,280.00 1,259.18
09/01/2033 129,687.50 112,172.50 112,172.50 17,515.00 17,515.00 8,600.83
5,940,350.05 5,656,753.75 9,768.38 5,646,985.37 293,364.68 293,364.68 201,897.29
Savings Summary
PV of savings from cash flow 201,897.29
Net PV Savings 201,897.29
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BC16-2015REF,2015REF) Page 3
BOND PRICING
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
Maturity Premium
Bond Component Date Amount Rate Yield Price (-Discount)
Serial Bond:
09/01/2015 70,000 2.000% 1.000% 100.339 237.30
09/01/2016 50,000 2.000% 1.250% 100.994 497.00
09/01/2017 155,000 2.000% 1.500% 101.145 1,774.75
09/01/2018 160,000 2.000% 1.750% 100.807 1,291.20
09/01/2019 160,000 2.000% 2.000% 100.000
09/01/2020 235,000 2.250% 2.250% 100.000
09/01/2021 240,000 2.500% 2.500% 100.000
09/01/2022 245,000 2.750% 2.750% 100.000
09/01/2023 250,000 3.000% 3.000% 100.000
09/01/2024 250,000 3.100% 3.100% 100.000
09/01/2025 255,000 3.250% 3.250% 100.000
09/01/2026 260,000 3.400% 3.400% 100.000
09/01/2027 270,000 3.500% 3.600% 99.007 (2,681.10)
09/01/2028 275,000 3.600% 3.600% 100.000
09/01/2029 280,000 3.700% 3.700% 100.000
09/01/2030 285,000 3.800% 3.800% 100.000
09/01/2031 295,000 3.850% 3.850% 100.000
09/01/2032 300,000 3.900% 3.900% 100.000
09/01/2033 110,000 3.950% 3.950% 100.000
4,145,000 1,119.15
Dated Date 04/01/2015
Delivery Date 04/28/2015
First Coupon 09/01/2015
Par Amount 4,145,000.00
Premium 1,119.15
Production 4,146,119.15 100.027000%
Underwriter's Discount (62,175.00) (1.500000%)
Purchase Price 4,083,944.15 98.527000%
Accrued Interest 9,768.38
Net Proceeds 4,093,712.53
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BC16-2015REF,20I5REF) Page 4
SUMMARY OF BONDS REFUNDED
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Unlimited Tax Bonds,Series 2007,2007:
TERM 09/01/2017 4.375% 105,000.00 09/01/2015 100.000
09/01/2018 4.375% 110,000.00 09/01/2015 100.000
TERM02 09/01/2019 4.375% 115,000.00 09/01/2015 100.000
09/01/2020 4.375% 120,000.00 09/01/2015 100.000
TERM03 09/01/2021 4.375% 130,000.00 09/01/2015 100.000
09/01/2022 4.375% 135,000.00 09/01/2015 100.000
TERM04 09/01/2023 4.375% 145,000.00 09/01/2015 100.000
09/01/2024 4.375% 150,000.00 09/01/2015 100.000
TERM05 09/01/2025 4.375% 160,000.00 09/01/2015 100.000
09/01/2026 4.375% 170,000.00 09/01/2015 100.000
TERM06 09/01/2027 4.375% 180,000.00 09/01/2015 100.000
09/01/2028 4.375% 190,000.00 09/01/2015 100.000
TERM07 09/01/2029 4.500% 200,000.00 09/01/2015 100.000
09/01/2030 4.500% 210,000.00 09/01/2015 100.000
09/01/2031 4.500% 225,000.00 09/01/2015 100.000
09/01/2032 4.500% 235,000.00 09/01/2015 100.000
2,580,000.00
Unlimited Tax Bonds,Series 2009,2009:
BOND 09/01/2020 6.600% 75,000.00 09/01/2018 100.000
09/01/2021 6.800% 75,000.00 09/01/2018 100.000
TERM 09/01/2022 7.000% 75,000.00 09/01/2018 100.000
09/01/2023 7.000% 75,000.00 09/01/2018 100.000
09/01/2024 7.000% 75,000.00 09/01/2018 100.000
TERM02 09/01/2025 7.125% 75,000.00 09/01/2018 100.000
09/01/2026 7.125% 75,000.00 09/01/2018 100.000
09/01/2027 7.125% 75,000.00 09/01/2018 100.000
09/01/2028 7.125% 75,000.00 09/01/2018 100.000
TERM03 09/01/2029 7.500% 75,000.00 09/01/2018 100.000
09/01/2030 7.500% 75,000.00 09/01/2018 100.000
09/0 1/2031 7.500% 75,000.00 09/01/2018 100.000
09/01/2032 7.500% 75,000.00 09/01/2018 100.000
09/01/2033 7.500% 125,000.00 09/01/2018 100.000
1,100,000.00
3,680,000.00
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BCI6-2015REF,2015REF) Page 5
,
II
COST OF ISSUANCE
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
Cost of Issuance $/1000 Amount
Attorney General Examination Fee 1.00000 4,145.00
Special Tax Counsel 2.41255 10,000.00
Printing and Preparation 0.60314 2,500.00
Electronic Distribution 0.18335 760.00
Paying Agent 0.18094 750.00
Escrow Agent 0.18094 750.00
Bond Call Fees 0.14475 600.00
Verification Agent 0.96502 4,000.00
Consultants 0.60314 2,500.00
Miscellaneous 0.60314 2,500.00
6.87696 28,505.00
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BCI6-20I5REF,2015REF) Page 6
ESCROW STATISTICS
Brazoria County MUD No. 16
Unlimited Tax Refunding Bonds,Series 2015
***PRELIMINARY-FOR DISCUSSION PURPOSES ONLY***
FSC NR BQ Scale as of 3.10.2015
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
3,965,897.22 1.244 0.953587% 0.953581% 3,849,679.00 116,217.10 1.12
3,965,897.22 3,849,679.00 116,217.10 1.12
Delivery date 04/28/2015
Arbitrage yield 3.401631%
Mar 10,2015 3:43 pm Prepared by FirstSouthwest(aa) (Finance 7.011 BC 16:BC16-2015REF,2015REF) Page 7
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