HomeMy WebLinkAboutRES 082625-5.F - 2014 GP Refunding & 0216 CO Tax-Supported Defeasance,zsoun W og2(o?-S 5. F
RESOLUTION AUTHORIZING THE DEFEASANCE AND
REDEMPTION OF CERTAIN OF THE CITY'S OUTSTANDING OBLIGATIONS AND
OTHER RELATED MATTERS
WHEREAS, the City of Georgetown, Texas (the "City") has duly issued and there is now
outstanding the following obligations:
City of Georgetown, Texas General Obligation Refunding Bonds, Series 2014,
dated May 15, 2014 (the "Series 2014 Bonds"); and
City of Georgetown, Texas Combination Tax and Revenue Certificates of
Obligation, Series 2016, dated April 15, 2016 (the "Series 2016 Certificates"); and
WHEREAS, the City Council (the "City Council") of the City deems it to be in the best
interest of the City to use lawfully available funds to defease and redeem the portions of the Series
2014 Bonds and the Series 2016 Certificates forth in Exhibit "A" hereto (collectively, the
"Defeased Obligations") on the first available redemption date after the giving of notice and
compliance with the provisions of the ordinance(s) authorizing the issuance of such obligations as
further set forth in this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GEORGETOWN, TEXAS THAT:
Section 1. The City hereby calls for redemption the Defeased Obligations. Attached
to this Resolution as Exhibit "A" and made a part hereof for all purposes, is a copy of the Notices
of Defeasance and Partial Redemption for the Defeased Obligations in substantially final form
with such changes and additions approved by the Chief Financial Officer or the City Manager
(each an "Authorized Official"), including such changes as may be made pursuant to Sections 5
and 6 hereof. Each Authorized Official, the City's Financial Advisor, the City's Bond Counsel
and/or any paying agent/registrar for the Defeased Obligations are hereby authorized to take all
actions necessary to effectuate and call for the redemption of such obligations, including finalizing
the notices of defeasance and redemption and sending all notices of such defeasance and
redemption required by the ordinance(s) authorizing the Defeased Obligations. Each Authorized
Official is further authorized to determine the timing of the defeasance of the Defeased Obligations
and the delivery of the notices once all requirements of this Resolution for such defeasance have
been satisfied; provided that such defeasance must occur prior to the end of calendar year 2026
and that such notices in all events is to be given by the time and in the manner required in the
ordinance(s) authorizing the issuance of the Defeased Obligations.
Section 2. Each Authorized Official is hereby authorized to select an eligible bank or
trust company to serve as escrow agent for the Defeased Obligations (the "Escrow Agent") and to
execute and deliver an escrow agreement between the City and the Escrow Agent (the "Escrow
Agreement") in substantially the form and substance approved by the City in conjunction with its
most recent issuance of refunding bonds. Each Authorized Official is hereby authorized to
complete, amend and modify the Escrow Agreement, as may be necessary to accomplish the
defeasance and redemption of the Defeased Obligations. The City hereby determines and
Georgetown I Defeasance & Redemption 2025 1 Resolution
RES 9:a26z5 - S.F &nALPI f 02J(e CO -rA*--Sv1r4,eA Ta4e4uuutce
authorizes that lawfully available funds sufficient to defease the Defeased Obligations shall be
deposited under the Escrow Agreement and used to redeem the Defeased Obligations.
Section 3. Each Authorized Official and the Escrow Agent are each hereby authorized
to subscribe for, agree to purchase, and purchase escrow securities that are permitted investments
for a defeasance escrow established to defease Defeased Obligations, and to execute any and all
subscriptions, purchase agreements, commitments, letters of authorization and other documents
necessary to effectuate the foregoing.
Section 4. Each Authorized Official is hereby authorized to transfer City funds as
necessary to defease and redeem the Defeased Obligations, including paying the costs of the
defeasance and redemption.
Section 5. In the event that an Authorized Official determines that it is more
economically advantageous for the defeasance and refunding of the Defeased Obligations to occur
in conjunction with an issuance of refunding bonds by the City, each Authorized Official is hereby
authorized and directed to revise the Notices of Defeasance and Partial Redemption attached hereto
as Exhibit "A" as may be needed to take into account all obligations of the City that are defeased
and refunded in such a transaction.
Section 6. Notwithstanding any other provision of this Resolution to the contrary,
effectuating the defeasance and redemption contemplated by this Resolution is subject to a
determination by an Authorized Official that lawfully available funds of the City are or will be on
deposit in the applicable interest and sinking fund of the City sufficient to accomplish the
defeasance of the Defeased Obligations at the time such defeasance occurs. Additionally, the
amount of the Series 2014 Bonds and the Series 2016 Certificates to be defeased and redeemed
that comprise the Defeased Obligations may be adjusted as approved by an Authorized Official
based on available funds and final rates for any escrow securities.
Section 7. The Mayor of the City Council, each Authorized Official and all other
officers, employees and agents of the City, and each of them, shall be and they are hereby expressly
authorized, empowered and directed from time to time and at any time to do and perform all such
acts and things, including giving any notices as may be required by the City's continuing disclosure
obligations, if any, with respect to the Defeased Obligations and all other instruments, whether or
not herein mentioned, as may be necessary or desirable in order to carry out the terms and
provisions of this Resolution or the ordinance(s) authorizing the Defeased Obligations.
Section 8. If any provision of this Resolution or the application thereof to any
circumstance shall be held to be invalid, the remainder of this Resolution and the application
thereof to other circumstances shall nevertheless be valid, and this governing body hereby declares
that this Resolution would have been enacted without such invalid provision.
Section 9. This Resolution shall be in full force and effect immediately upon its
passage and approval.
2
Georgetown I Defeasance & Redemption 2025 1 Resolution
5 °8ZGZ5- 5.F
PASSED AND ADOPTED this the 26th day of August, 2025.
ATTEST: CITY OF 09)RGETOWN, TEXAS
Robyn nsmore, City Secretary Jost Sc roeder, Mayor
APPROVED AS TO FORM:
Skye assort, City Attorney
PCs a82�25 - 5,F
Georgetown I Defeasance & Redemption 1025 1 Resolution
EXHIBIT "A"
NOTICE OF DEFEASANCE AND PARTIAL REDEMPTION
NOTICE IS HEREBY GIVEN that the City of Georgetown, Texas (the "City") has called for
redemption on October 15, 2025 (the "Redemption Date") the outstanding obligations of the City described
below at a price of par plus accrued interest to such date of redemption, to -wit:
City of Georgetown, Texas General Obligation Bonds, Series 2014, dated May 15, 2014,
in the principal amount of $1,465,000 maturing on August 15 in the years 2026 and 2027
as further described below (collectively, the "Defeased Obligations")
Current Maturity Principal Principal Principal Amount New New CUSIP*
CUSIP Date Amount Amount Being Outstanding After Interest CUSIP* Non-Defeased
Number* (August 15) Outstanding Defeased Defeasance Rate Defeased Portion
Portion
3730284G1 2026 $970,000 $770,000 $200,000 4.00% 373028_ 373028_
3730284H9 2027 875,000 695,000 180,000 4.00 373028_ 373028_
* The CUSIP Numbers are provided for the convenience of the holders of the Defeased Obligations. The City and the
paying agent do not warrant the accuracy of the CUSIP Numbers, and neither shall be responsible for any error of any
nature relating to CUSIP Numbers.
The Defeased Obligations shall be redeemed upon presentation at a principal corporate offices of
The Bank of New York Mellon Trust Company, N.A., as paying agent/registrar for the Defeased
Obligations, at the addresses set forth below. Interest on the Defeased Obligations shall cease to accrue
from and after the Redemption Date.
First ClassgRewitered/CertiBed Mai/
By Overniuht or Courier
By Hand
The Bank of New York Mellon
The Bank of New York Mellon
The Bank of New York Mellon
Global Corporate Trust
Global Corporate Trust
Global Corporate Trust
P.O. Box 396
111 Sanders Creek Parkway
Corporate Trust Window
East Syracuse, New York 13057
East Syracuse, New York 13057
101 Barclay Street 1 st Floor East
New York, New York 10286
In compliance with section 3406 of the Internal Revenue Code of 1986, as amended, payors making
certain payments due on debt securities may be obligated to deduct and withhold a portion of such payment
from the remittance to any payee who has failed to provide such payor with a valid taxpayer identification
number. To avoid the imposition of this withholding tax, such payees should submit a certified taxpayer
identification number when surrendering obligations for redemption.
CITY OF GEORGETOWN, TEXAS
A-1
k; 5 , 6;bZG25 5-F.
Georgetown I Defeasance & Redemption 2025 1 Resolution
NOTICE OF DEFEASANCE AND PARTIAL REDEMPTION
NOTICE IS HEREBY GIVEN that the City of Georgetown, Texas (the "City") has called for
redemption on , 202_ (the "Redemption Date") the outstanding obligations of the City described
below at a price of par plus accrued interest to such date of redemption, to -wit:
City of Georgetown, Texas Combination Tax and Revenue Certificates of Obligation,
Series 2016, dated April 15, 2016, in the principal amount of $865,000 maturing on August
15 in the years 2030 through and including 2032, and in the years 2035 and 2036, as further
described below (collectively, the "Defeased Obligations")
Current Maturity
Principal
Principal
Principal Amount
New
New CUSIP*
CUSIP Date
Amount
Amount Being
Outstanding After
Interest
CUSIP*
Non-Defeased
Number* (August 15)
Outstanding
Defeased
Defeasance
Rate
Defeased
Portion
Portion
373029FE2 2030
$965,000
$ 85,000
$880,000
2.50%
373028
373028_
37302917179 2031
990,000
120,000
870,000
4.00
373028_
373028_
373029FG7 2032
1,030,000
125,000
905,000
4.00
373028_
373028
*** ***
***
***
***
***
***
***
373029FKB 2035
3,295,000
395,000
2,900,000
3.00
373028_
373028_
373029FL6 2036
1,170,000
140,000
1,030,000
3.00
373028_
373028_
* The CUSIP Numbers are provided for the convenience of the holders of the Defeased Obligations. The City
and the
paying agent do not warrant the accuracy of the CUSIP Numbers,
and neither shall be responsible
for any error of any
nature relating to CUSIP Numbers.
Additionally, the City has determined that the mandatory sinking fund installments related to the
certificates maturing in the year 2035 which remain outstanding will be as follows:
Term Certificates Maturing in 2035
Mandatory Redemption Date
August 15, 2033
August 15, 2034
August 15, 2035
Remaining Principal Amount
Subiect to Mandatory Redemption
$940,000
965,000
995,000
The Defeased Obligations shall be redeemed upon presentation at a principal corporate offices of
The Bank of New York Mellon Trust Company, N.A., as paying agent/registrar for the Defeased
Obligations, at the addresses set forth below. Interest on the Defeased Obligations shall cease to accrue
from and after the Redemption Date.
I-Irst Clas.VReeiwered/Cerlired Mail
The Bank of New York Mellon
Global Corporate Trust
P.O. Box 396
East Syracuse, New York 13057
Rt, Overnielrt or Courier
The Bank of New York Mellon
Global Corporate Trust
111 Sanders Creek Parkway
East Syracuse, New York 13057
A-2
RES 01au 25-5.F.
Georgetown I Dcfcauance & Redemption 2025 1 Resolution
B1, /burr!
The Bank of New York Mellon
Global Corporate Trust
Corporate Trust Window
101 Barclay Street 1 st Floor East
New York, New York 10286
In compliance with section 3406 of the Internal Revenue Code of 1986, as amended, payors making
certain payments due on debt securities may be obligated to deduct and withhold a portion of such payment
from the remittance to any payee who has failed to provide such payor with a valid taxpayer identification
number. To avoid the imposition of this withholding tax, such payees should submit a certified taxpayer
identification number when surrendering obligations for redemption.
CITY OF GEORGETOWN, TEXAS
A-3
K-s. ceu,25-5.F
Georgetown I Defeasance & Redemption 2025 1 Resolution
RES, ()g&z5 -5.F,
Preliminary
City of Georgetown, Texas
Defeasance of Series 2014 GO Refunding & Series 2016 CO (Tax Portions)
For Purposes of Illustration Only
Debt Service Comparison
Existing
Date
D/S
Net New D/S
Old Net D/S
Savings
09/30/2026
115,443.76
2,460,372.93
972,018.76
(1,488,354.17)
09/30/2027
113,343.76
113,343.76
864,118.76
750,775.00
09/30/2028
116,112.50
116,112.50
144,087.50
27,975.00
09/30/2029
113,500.00
113,500.00
141,475.00
27,975.00
09/30/2030
30,750.00
30,750.00
143,72_5.00
112,975.00
09/30/2031
-
-
145,850.00
145,850.00
09/30/2032
-
-
146,050.00
146,050.00
09/30/2033
-
-
146,050.00
146,050.00
09/30/2034
-
142,150.00
142,150.00
09/30/2035
143,250.00
143,250.00
09/30/2036
-
144,200.00
144,200.00
Total $489,150.02 $2,834,079.19 $3,132,975.02 $298,895.83
2025 Def of s14 GO Ref an i SINGLE PURPOSE i 8/ 1/2025 i 9:25 AM
Preliminary
City of Georgetown, Texas
Defeasance of Series 2014 GO Refunding & Series 2016 CO (Tax Portions)
For Purposes of Illustration Only
Current Refunding Escrow
Date Rate Receipts Disbursements Cash Balance
10/15/2025 2,344,429.17
2,344,429.17
Total $2,344,429.17
$2,344,429.17
Investment Parameters
Investment Model [PV_,_GIC, or Securities]
Securities
Default investment yield target
Unrestricted
Cash Deposit
2,344,429.17
Total Cost of Investments
$2.344.429.17
Target Cost of Investments at bond yield
$2,344,429.17
Yield to Receipt
Yield for Arbitrage Purposes
2025 Def of s14 GO Ref an I SINGLE PURPOSE 1 8/ 1/2025 1 9:25 AM
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Preliminary
City of Georgetown, Texas
Combination Tax & Revenue Certificates of Obligation, Series 2016
Tax -Supported Portion
Debt Service To Maturity And To Call
Refunded Refunded
Refunded
Date Bonds Interest D/S To Call
Principal
Coupon
Interest
D/S
10/15/2025 865,000.00 4,662.50 869,662.50
-
-
-
02/15/2026 - - -
-
-
13,987.50
13,997.50
08/15/2026 - -
-
2.000%
13,987.50
13,987.50
02/15/2027 - - -
-
-
13,987.50
13,987.50
08/15/2027 - -
-
2.125%
13,987.50
13,987.50
02/15/2028 - -
-
-
13,987.50
13,987.50
08/15/2028 - -
-
2.375%
13,987.50
13,987.50
02/15/2029
-
-
13,987.50
13,987.50
08/15/2029 - - -
-
2.500%
13,987.50
13,987.50
02/15/2030 - - -
-_
-
13,987.50
13,987.50
08/15/2030 - - -
85,000.00
2.500%
13,987.50
98,987.50
02/15/2031 - - -
-
12,925.00
12,925.00
08/15/2031 - -
120,000.00
4.000%
12,925.00
132,925.00
02/15/2032 - - -
-
-
10,525.00
10,525.00
08/15/2032 - - -
125,000.00
4.000%
10,525.00
135,525.00
02/15/2033 - - -
-
-
8,025.00
8,025.00
08/15/2033 - -
130,000.00
3.000%
9,025.00
138,025.00
02/15/2034 -
-
-
6,075.00
6,075.00
08/15/2034 - -
130,000.00
3.000%
6,075.00
136,075.00
02/15/2035
-
-
4,125.00
4,125.00
08/15/2035
135,00000
3.000%
4,125.00
139,125.00
02/15/2036
-
2,100.00
2,100.00
08/15/2036
140,000.00
3.000%
2,100.00
142,100.00
Total $865,000.00 $4,662.50 $869,662.50 $865.000.00 - $227,425.00 $1,092,425.00
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation
Average Life
Average Coupon
Weighted Average Maturity (Par Basis)
Weighted Average Maturity (Original Price Basis)
Refunding Bond Information
10/15/2025
8.065 Years
3.1933461%
8.065 Years
8.007 Years
Refunding Dated Date 10/15/2025
Refunding Delivery Date 10/15/2025
16 $19.461mm pcf C/Os (4/ 1 Tax -Supported 1 6/ 1/2025 1 9:25 AM
ems, %. gC:) s_5.�;
Preliminary
City of Georgetown, Texas
General Obligation Refunding Bonds, Series 2014
Tax Portion
Debt Service To Maturity And To Call
Refunded Refunded
Refunded
Date Bonds Interest D/S To Call
Principal Coupon Interest
D/S
10/15/2025 1,465,000.00 9,766.67 1,474,766.67
-
-
02/15/2026 -
- - 29,300.00
29,300.00
08/15/2026
770,000.00 4.000% 29,300.00
799,300.00
02/15/2027
- 13,900.00
13,900.00
08/15/2027
695,000.00 4.000% 13,900.00
708.900.00
Total $1,465,000.00 $9,766.67 $1,474,766.67 $1,465,000.00 - $86,400.00 $195519400.00
Yield
Base date for Avg. Life & Avg. Coupon Calculation
Average Life
Average Coupon
Weighted Average Maturity (Par Basis)
Weighted Average Maturity (Original Price Basis)
Refunding Bond Information
Refunding Dated Date
Refunding Delivery Date
14 go ref (5/14) FINAL to I Tax i 8/ 1/2025 1 9:25 AM
10/15/2025
1.308 Years
3.9999998°/a
1.308 Years
1.308 Years
10/15/2025
RES. C78ZG?-6.5 , F