HomeMy WebLinkAboutResolution - 2196A - Redemption Of Certain Oustanting Series 1981, 1984 General Obligation Bonds - 11/21/1985Resolution #2196-A
November 21, 1985
Agenda Item #18
RESOLUTION #2196-A
A RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING BONDS OF
E CITY; AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE REDEMPTION OF
CH BONDS.
WHEREAS, pursuant to ordinances passed and adopted by the City Council of
;he City of Lubbock, Texas on April 24, 1981, May 28, 1982 and March 23, 1984,
-espectively, the following described bonds were duly authorized to be issued
ind are currently outstanding, to wit:
"City of Lubbock, Texas General Obligation Bonds, Series 1981", dated May
1, 1981, aggregating in principal amount $13,410,000, and scheduled to
mature on February 1 in each of the years 1986 through 2001;
"City of Lubbock, Texas, General Obligation Bonds, Series 1982" dated June
1, 1982, aggregating in principal amount $9,350,000, and scheduled to
mature on February 1 in each of the years 1986 through 2002;
"City of Lubbock, Texas, General Obligation Bonds, Series 1984" dated
April 15, 1984, aggregating in principal amount $13,100,000, and scheduled
to mature on February 15 in each of the years 1986 through 2004;
AND WHEREAS, the above identified bonds were authorized, issued, sold and
lelivered subject to the right and authority of the City to redeem the same
)rior to maturity, as provided in the ordinance authorizing the issuance of
;aid bonds and in said bonds; and
WHEREAS, in connection with the advance refunding of the above described
onds, the City Council hereby finds and determines that bonds of said series
hould be redeemed prior to their maturities, on the dates and in the manner
ereinafter provided and in accordance with the requirements prescribed
herefor and notice of redemption of such bonds should be approved and
uthorized to be given at this time by the Council; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS:
SECTION 1: THAT the bonds of that series known as "City of Lubbock,
exas, General Obligation Bonds, Series 1981" dated May 1, 1981, each in the
enomination of $5,000, maturing on February 1 in each of the years 1992
hrough 2001, being bond numbers 1671 through 3350, and aggregating in
rincipal amount $8,400,000, shall be redeemed on February 1,1991, at the
rice of par, together with accrued interest to the date of redemption. The
ity Secretary of the City is hereby authorized and directed to cause this
esolution to be filed with Citibank, N.A., New York, New York and Texas
ommerce Bank, National Association, Lubbock, Texas, and the "paying agents";
uch notice of redemption to read substantially as Exhibit A attached hereto
nd incorporated herein by reference as a part of this resolution for all
urposes.
SECTION 1: THAT the bonds of that series known as "City of Lubbock,
exas, General Obligation Bonds, Series 1982" dated June 1, 1982, each in the
ienomination of $5,000, maturing on February 1 in each of the years 1993
;hrough 2002, being bond numbers 1091 through 2190, and aggregating in
>rincipal, amount $5,500,000, shall be redeemed on February 1, 1992, at the
)rice of par, together with accrued interest to the date of redemption. The
;ity Secretary of the City is hereby authorized and directed to cause this
-esolution to be filed with Citibank, N.A., New York, New York and Texas
;ommerce Bank, National Association, Lubbock, Texas, the "Paying agents"; such
iotice of redemption to read substantially as Exhibit B attached hereto and
incorporated herein by reference as a part of this resolution for all purposes.
SECTION 3: THAT the bonds of that series known as "City of Lubbock,
Texas, General Obligation Bonds, Series 1984" dated April 15, 1984, maturing on
February 15 in each of the years 1995 through 2004 and aggregating in principal
amount $7,000,000, shall be redeemed on February 15, 1994, at the price of par,
together with accrued interest to the date of redemption. The City Secretary
of the City is hereby authorized and directed to cause this resolution to be
filed with Texas Commerce Bank, National Association, Lubbock, Texas, the
"paying agent" and make irrevocable arrangements for a notice of redemption to
be sent by United States Mail, first class, postage prepaid, at least 30 days
prior to the redemption date to each registered owner of the bonds to be
redeemed appearing on the registration books for said bonds; such notice of
redemption to read substantially as Exhibit C attached hereto and incorporated
herein by reference as a part of this resolution for all purposes.
SECTION 4: THAT redemption of the bonds described above being
associated with the advance refunding of such obligations, the approval,
authorization and arrangements herein given and provided for the redemption of
such bonds on the redemption dates designated therefor and in the manner
provided shall be irrevocable; and the City Secretary of the City is hereby
authorized to notify the paying agent banks of such redemption and to notify
the Paying Agent/Registrar for the said Series 1984 Bonds of its obligation to
give notice to the registered owners of such Bonds of the City's decision to
'redeem such obligations on the date and in the manner herein provided and in
!accordance with the ordinances authorizing the issuance of said series of
!bonds.
°,Passed and adopted, this 21st day of November, 1985.
TTEST:
ty Secretary
ALAN HENRY, MAYOR
CERTIFICATE OF CITY SECRETARY
:ATE OF TEXAS §
OF LUBBOCK §
OF LUBBOCK
I, the undersigned, City Secretary of the City of
:;;ck, Texas, DO HEREBY CERTIFY as follows:
1. That on the 21st day of November, 1985, the City
...Cil of the City of Lubbock, Texas, convened in regular
.ion at the City Hall, Lubbock, Texas; the duly constituted
:;ers of the Council being as follows:
.LAN HENRY MAYOR
GEORGE W. CARPENTER ) MAYOR PRO TEM
"•LAGG I E TREJO )
T.J. PATTERSON ) COUNCILMEMBERS
BOB NASH )
-.JACK BROWN 1
JOAN BAKER )
of said persons were present at
lowing: NONE
iness considered at said meeting,
__tled .
said meeting, except the
Among other
the attached resolution
"A RESOLUTION providing for the redemption of 'City of
Lubbock, Texas, General Obligation. Bonds, Series
1981, Series 1982 and Series 1984'; and resolving
other matters incident and related to the
redemption of such bonds."
introduced and submitted to the Council for passage and
:option. After presentation and due consideration of the
esolution, and upon a motion being made by Baker and
-econded by Brown , the resolution was finally
sassed -and adopted by the Council to be effective immediately
zv the following vote:
7 voted "For"
0 voted "Against" 0 abstained
ill as shown in the official Minutes of the Council for the
7:eeting held on the aforesaid date.
0
2. That the attached resolution is a true and
-ect copy of the original on file in the official records of
ity; the duly qualified and acting members of the City
cil of the City on the date of the aforesaid meeting are
a persons shown above and, according to the records of my
e, advance notice of the time, place and purpose of the
was given to each member of the Council; and that said
and the deliberation of the aforesaid public business,
open to the public and written notice of said meeting,
:ding the subject of the entitled resolution, was posted
iven in advance thereof in compliance with the provisions
,.Iticle 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF,
:_:cially and affixed the
:-vember, 1985.
j Seal)
,-,
I have hereunto signed my name
seal of said City, this the 21st day
-2-
Cit Secretary, City f
Lubbock, Texas
CITY OF LUBBOCK
/ \
Office of
The City Manager
P.O. Box 2000
Lubbock, Tx. 79457
(806) 762-6411
Mr. Elbert M. Morrow
Dumas, Huguenin, Boothman and Morrow
2001 Bryan Tower, Suite 1400
Dallas, Texas 75201
Dear Elbert:
j 14e "://q4
December 13, 1985
Robert Massengale has signed the eight copies of the letter
of instruction and the eight copies of the certificate
called for in the purchase contract. These signed copies
are enclosed. l
As I mentioned to you, Robert is still in the hospital and
will be unable to attend the closing on Wednesday, December
18. Mayor Alan Henry will be in Dallas for the closing on
December 18. Rod Bouffard, Assistant Director of Finance,
will also accompany him. Please advise if we need to do
anything further.
Best wishes for a happy holiday season
Sincerely,
Larry J. Cunningham
City Manager
LJC:nb
(i) From the accrued interest received
f rom the Purchasers of the Bonds in the sum of
$378,449.29 and proceeds of sale of the Bonds
in the sum of $2,182.99 shall be deposited to
the credit of a special account of the City to
be maintained at Texas Commerce Bank for the
payment of the Bonds. Cash held in such
special account is to be applied to the first
interest payment on the Bonds on February 15,
$380,632.28
1986
(ii) Issue a cashier's check in the sum
of $249,125 to First Southwest Company for
payment of costs of issuance in relation to
the issuance of the Bonds $249,125.00
First Southwest Company is further instructed and requested to
account for the payment of all costs of issuance paid and remit the
balance, if any, of the $249,125 to the City after payment of the
costs of issuance to be paid from such amount.
Your assistance and cooperation in the receipt, disbursement and
application of funds in accordance with the above and foregoing
instructions on behalf of the City is greatly appreciated and should
additional instructions be required please advise the undersigned.
very truly yours,
.
0 6 6 8 D
PROBERTMA SENGAL
Assistant City Manager for
Financial Services
City of Lubbock, Texas
r
qp
November 21,.1985
Texas Commerce Bank
National Association
P.O. Box 841
Lubbock, Texas 79408
Attention: Jeanelle Ward
Rauscher Pierce Refsnes
Plaza of the Americas
2400 North Tower
Dallas, Texas 75201
Attention: Dale Henderson
First Southwest Company
800 Dallas Building
1807 Commerce Street
Dallas, Texas 75201
Attention: Harold McInroe
Re: Closing Instructions With Respect to the "CITY OF LUBBOCK,
TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 1985",
dated November 15, 1985 (the "Bonds")
Ladies and Gentlemen:
The closing with respect to the above referenced Bonds is
scheduled to occur at 10:00 A.M. on December 18, 1985 (the "Closing
Date") at the offices of Dumas, Huguenin, Boothman & Morrow, and, in
regard thereto, the following transactions are to occur with respect
to the receipt and disbursement of moneys:
(A) On the Closing Date Texas Commerce Bank will receive the
amounts indicated from the following sources:
(1) Rauscher Pierce Refsnes is to wire fed
funds to Texas Commerce Bank National Association,
Corporate Trust Department, Attention: Jeanelle
Ward, ABA Number 111304365 for the account of the
City, in the following amount:
(a) Principal Amount of Bonds $60,614,070.00
(b) Accrued Interest 378,449.29
(c) Less: Purchaser's Discount 840,111.01
TOTAL AMOUNT RECEIVED FROM
RAUSCHER PIERCE REFSNES
$60,152,408.28
f
(2) The City of Lubbock, Texas (the "City"),
will cause to be transferred moneys in
the sum of $ 6,561,819.61
TOTAL FUNDS TO BE RECEIVED
$66,714,227.89
(B) On the Closing Date, the funds described in (A) above are
to be disbursed and expended by Texas Commerce Bank as follows:
(1) In accordance with the terms of the
Special Escrow Agreement (the "Agreement") by and
between the City and Texas Commerce Bank, as Escrow
Agent, make the following disbursements:
(i) From the proceeds of sale of the
Bonds, pay the Federal Reserve Bank, Dallas,
Texas, for the purchase of United States
Treasury Obligations - State and Local
Government Series (identified in Exhibit B to
the Agreement), the sum of $59,478,400.00
(ii) From the funds received f rom .__the ---.-- - - --
City, pay First Southwest Company for the
purchase of United States Treasury Securities
(the "Open Market Securities" identified in
Exhibit C to the Agreement), the sum of $6,561,819.61
(iii) From the proceeds of sale of the
Bonds, deposit to the credit of the "Special
City of Lubbock, Texas, Refunding Bond Escrow
Fund" for a beginning cash balance, the
sum of $ 100.00
(iv) From the proceeds of sale of the _
Bonds, retain in payment of services to be
rendered as Escrow Agent and in satisfaction
of paying agents' charges for the obligations
being refunded in accordance with the
Section 18 of the Agreement, the sum of $ 44,151.00
(2) The balance of the funds identified in
paragraph (A) above in the sum of $629,757.28 is
requested to be disbursed as follows:
-2-
CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
I, the undersigned, Assistant City Manager for
Financial Services of the City of Lubbock, Texas, DO HEREBY
CERTIFY that, on the basis of the facts, estimates and
circumstances in effect on the date hereof, it is not expected
that the proceeds of the "City of Lubbock, Texas, General
Obligation Refunding Bonds, Series 1985" dated November 15,
1985 (the "Bonds"), will be used in a manner that would cause
the Bonds to be arbitrage bonds within the meaning of Section
103(c) of the Internal Revenue Code of 1954, as amended.
TO CERTIFY WHICH, witness my hand and the seal of the
City, this
.,ROBERT MASSENGALE
Assistant City Manager for
Financial Services
City of Lubbock, Texas
(City Seal)