Ordinance No. 9,788ORDINANCE NO. 9788
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
® TEXAS, AUTHORIZING THE CITY MANAGER TO EXPEND RESERVES IN
THE AMOUNT OF TWO MILLION TWO HUNDRED FORTY THOUSAND
AND NO /100 DOLLARS ($2,240,000.00) FROM - THE CAPITAL
IMPROVEMENT PROGRAM FUND AND TWO MILLION AND N01100
DOLLARS ($2,000,000.00) FROM DEBT SERVICE FUND TO REDUCE
FUTURE DEBT SERVICE EXPENSES BY RETIR NG/REFUNDING A
PORTION OF THE OUTSTANDING DEBT; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
WHEREAS, The debt for the third year of the 2001 General Obligation Bond Program is
included in the 2004 Adopted Budget for issuance this fiscal year; and
WHEREAS, while assessing the impact of the issuance on the City's debt service fund, the
City has been advised by its financial advisors that it may be prudent for the City to take advantage
of debt refund i ng/defeasance and early debt retirement opportunities if funds are available since
current interest rates are near historic lows and are below the rates on the current bonds; and
WHEREAS, the Capital Improvement Program Fund (CIPF) and the Debt Service Fund
provide funding sources that could be used to offset debt service costs from future 2001 debt service
issuance; and
WHEREAS, by authorizing the refund and/or retirement of eligible bond indebtedness, a
savings would be realized, which should assist the City:
➢ in obtaining a stable tax rate throughout the 2001 Bond Program;
9 in lowering annual debt service expenditures;
➢ in reducing interest expense on outstanding debt; and
➢ in providing greater flexibility in the maintenance and operating budget since it may not be
necessary to make the annual transfers to CIPF in future years; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the
City Manager to expend reserves in the amount of TWO MILLION TWO HUNDRED FORTY
THOUSAND AND NO /100 DOLLARS ($2,240,000.00) from the Capital Improvement Program
Fund and TWO MILLION AND NO /100 DOLLARS ($2,000,000.00) from Debt Service Fund to
reduce future debt service expenses by retiring/refunding a portion of the outstanding debt as
follows:
Series 1993 General Obligation
Bonds years 2005 -2011
$1,620,000
Series 1994 General Obligation
Bonds years 2005 -2007
350,000
Series 1995 General Obligation
& Refunding Bonds years 2006 -2011
1,845,000
Series 1995 General Obligation
Bonds 2007 -2008
425,000
Total
$4,240,000
11
Section 2: This ordinance shall take effect immediately from and after its passage by the
® City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City
of Baytown this the 22nd day of April, 2004.
PETE C. ALFARO, Mayor
ATTEST:
GA AY W SMIT-,, City Clerk
APPROVED AS TO FORM:
dalo�)111144
ACIO RAMIREZ, SR ty Attorney
® F:\Karen\Files \City Council\ Ordinances \RestructuringDebt.doc
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