HomeMy WebLinkAboutMinutes - City Council - Special - 6/23/1995CITY OF LUBBOCK
SPECIAL CITY COUNCIL MEETING
June 23, 1995
8:30 A.M.
The City Council of the City of Lubbock, Texas, met in special session on the 23rd
day of June 1995 in the City Council Chambers, first floor, City Hall, 1625 13th
Street, Lubbock, Texas, at 8:30 A.M.
Present: Mayor David R. Langston, Mayor Pro Tern Randy Neugebauer,
Councilmember Max L. Ince, Councilmember Alex Cooke, City Manager Bob
Cass, City Attorney John C. Ross, Jr., and City Secretary Betty M. Johnson.
Absent: Councilmember Victor Hernandez, Councilmember T. J. Patterson, and
Councilmember Windy Sitton.
Mayor Langston called the meeting to order at 8:35 A.M.
( 1.) The Invocation was given by J. Robert Massengale, Director
of Electric Utilities.
( 2.) Pledge of Allegiance was given in unison by those in the
Council Chambers.
( 3,) ORDINANCE 49815--Authorizing the issuance of $13,505,000
"City of Lubbock Texas, Electric Light and Power System
Revenue Refunding Bonds, Series 1995."
ORDINANCE #9815
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $13,505,000 "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
REFUNDING BONDS, SERIES 1995"; PRESCRIBING THE FORMS, TERMS, AND
PROVISIONS OF SAID BONDS; PLEDGING THE NET REVENUES OF THE
CITY'S ELECTRIC LIGHT AND POWER SYSTEM TO THE PAYMENT OF THE
PRINCIPAL OF AN INTEREST ON SAID BONDS; ENACTING PROVISIONS
INCIDENT AND RELATED TO THE ISSUANCE, PAYMENT, SECURITY, SALE
AND DELIVERY OF SAID BONDS, INCLUDING THE APPROVAL AND
DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING THERETO, THE
APPROVAL OF A PAYING AGENT/REGISTRAR AGREEMENT, THE APPROVAL
OF A PURCHASE CONTRACT, THE APPROVAL OF A SPECIAL ESCROW
AGREEMENT, EXERCISING THE CITY'S RIGHT TO OPTIONALLY REDEEM ITS
OUTSTANDING SERIES 1976, SERIES 1987, AND SERIES 1988 ELECTRIC LIGHT
AND POWER SYSTEM REVENUE BONDS, AND PROVIDING AN EFFECTIVE
DATE.
Mark Hindman, Director of Support Services, and Mark
Westergard, Bond Counsel from Fulbright & Jaworski, presented
comments. Of the $28,029,964.55 current principal outstanding of
Electric Light and Power System Revenue Bonds, $12,440,000 has
been identified as favorable for debt service savings in an advance
refunding.
Specific series identified include:
Principal Series Current Interest Rate
$440,000 Series 1976 6.25%
3,500,000 Series 1987 7.0% and 8.0%
8,500,000 Series 1988 7.0%%
$12,440,000 Total
Special City Council Meeting
June 23, 1995
Page 456
This issue is a negotiated sale. Prudential Securities Incorporated
is acting as lead underwriter, and Athena Capital Corporation and
Estrada Hinojosa & Company are acting as underwriters.
First Southwest Company's financial advisors for the City of
Lubbock project a current market interest rate of 5.33 percent. A
principal amount of $13,505,000 is necessary to make the required
deposit of $13,184,735.25 to the escrow account to refund the debt
on the call date and to pay all costs related to issuance. The
average annual cash savings on debt service is $61,500.
Issuing bonds to advance refund specific LP&L Revenue Bonds
would result in an annual debt service savings. As it is in the best
financial interest of the organization, staff recommended approval.
Motion was made by Councilmember Cooke, seconded by
Councilmember Ince to pass on second and final reading
Ordinance #9815 as recommended by staff. Motion carried: 4
Yeas; 0 Nays.
There being no further business to come before Council, motion was made by
Councilmember Cooke, seconded by Mayor Pro Tem Neugebauer to adjourn the
meeting at 8:39 a.m. Motion carried: 4 eas, 0 a
ATTEST:
Betty . Johnson, ity Secretary
Read and approved this the 13th day of J
ATTEST:
&, . 2,�O,
_ etty A Johnson, gity Secretary
AVID R. LANGSTON, MAYOR
456