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HomeMy WebLinkAboutO-2002-2566 . .. ORDINANCE NO. ~ (1) 2 . iSUiJ, ORDINANCE AUfHORIZING THE ISSUANCE OF $5,400,000 CITY OF LA PORTE, TEXAS LIMITED TAX BONDS, SERIES 2002, AND ALL OTHER MATTERS RELATING THERETO WHEREAS, at an election duly called and held for and within the City of La Porte, Te~s (the "City") on February 2, 2002, the duly qualified resident electors of the City authorized the City Council of the City (the "Council") to issue bonds of the maximum amount ofSl6,300,OOO (the "2002 Authorization"); WHEREAS, the Council now deems it to be in the best interest of the City to issue $3,500,000 :from Proposition 2 of the 2002 Authorization for the construction of improvements to the City's wastewater treatment plant (leaving $-0- in bonds from Proposition 2 to be issued in the future); and to issue $1,900,000 :from Proposition 4 of the 2002 Authorization for the relocation of Fire Station No.2 and the renovation of old Fire Station No, 2 for emergencr medical services (leaving $-0- in bonds from Proposition 4 to be issued in the future); and WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Chapter 1251, Texas Government Code, as amended; Chapter 1331, Texas Government Code, as amended; and the Charter of the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, THAT: Section 1. AMOUNT AND PURPOSE OF THE BONDS, The bonds of City of La Porte are hereby authorized to be issued and delivered in the aggregate principal amount of $5,400,000, for the purpose of <;.on.stru<:.ting im~rovement!! to the City's wastewat.er and ~atment. plant ($3,500,000) and relocating Fire Station No, 2 and renovating the old Fire Station No, 2 for emergency medical services ($ 1,900,0(0). Section 2, DESIGNATION. DATE. DENOMINATIONS. NUMBERS. MATURITIES. AND INTEREST RATES OF BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF LA PORTE, TEXAS LIMITED TAX BOND, SERIES 2002", and initiall~ there shall be issued, sold, and delivered hereunder fully registered bonds, without interest coupons, dated July 15,2002, in the respective denominations and principal amounts hereinafter stated, payable to the respective initial registered owners thereof (as designated in Section 14 hereot), or to the registered assignee or assignees of said bonds or any portion or portions thereof (in each case, the "Re~istered Owner", "Owner", or "owner"), ThC<. tC(.I1ll "Bonds" as 1JSed in this Ord!nance shall mCWl and inc1ucle cpllectively the bonds initially issued and delivered pursuant to this Ordinance and all substitute bonds exchanged therefor, as well as all other substitute bonds ap.d rel!lacem<'-lt bonds issued p'ursuant hereto, and the term "Bond" shaH mt;aIJ any of the Bonds, The Initial Bond shall be nwobered 1-1 and the definitive Bonds shall be mnnbered R-l upward and shall be in the 4.enomin~tion of $5,000 each or any intel!!al multiple thereof, shall mature and be I!a~ble serially on March 15 in each of the years and in the principal amounts, respectively as set forth in the foHowing schedule, and shall bear interest from the date sl?ecified in the FORM OF BOND set. forth in this Or4inan.ce to their respective dates of maturity or redemption prior to maturity at the following rates per annwn: lRemainder ofp'age intentionally left bl3,Dk) . e PRINCIPAL INTEREST PRINCIPAL INTEREST YEARS AMOUNTS RATES YEARS AMOUNTS RATES 2006 $270,000 2016 $270,000 2007 270,000 2017 270,000 2008 270,000 2018 270,000 2009 270,000 2019 270,000 2010 270,000 2020 270,000 2011 270,000 2021 270,000 2012 270,000 2022 270,000 2013 270,000 2023 270,000 2014 270,000 2024 270,000 2015 270,000 2025 270,000 Said inter~ shall ~ paY.8ble in the manner J!1"ovided and on the dates stated in the FORM OF BOND set forth in this Ordinance. Sec;tion 3,_ CHARACTE]US:nCS OF urn BONDS, (a) Re~stration. Transfer. and Exchange: Authentication. The City shall keep or cause to be kept at the principal corporate trust office of JPMorgan Chase BIplk, D~ll~s, Texas (the "Pa~g AgentlReg,istrar") books or record~ for the registration of the transfer and exchange of the Bonds (the ''Registration Books"), and the City hereby appoints the Paying Agent!Registrar as its registrar and transfer agent to k~ such books or records and make such registrations of transfers and exchanges Wlder such reasonable regulations as the City and Paying AgentlRegistrar may prescribe; and the Paying Ag,entIRegistrar shall make such registrations, transfers,_ and exchanges as herein provided, The Mayor and the City Secretary are authorized to enter into a Paying AgentlRegistrar Agreement substantially in the form of Exhibit "A", a~ched h.ereto. The P~~ng Agent/Registrar shall obtain and record in the "R(;gistration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it ~3.ll ~ the 4utY. of eacb registered own((l' to noti~ the Pa~g AgentlRegistrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed lIDless such notice has been given. To the ~~t possible i:!Ild Wlder r~sonable circwnstan((es, all transfers of Bonds shall be made within three business days after request and presentation thereof. The City shall have the right to inspect the Registration Books during regular busirtess boW's Qfthe. Paying AgentlRegistrar, but otherwise the Pa~g AgentJRegistrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity, The P~Y.ing AgentJRegistrar's standard or customary. fees and charges for making such registration, transfer, exchange and delivery of a substitute Bond or Bonds shall be paid as provided in the FORM OF BOND set forth in this O(dit1an~, Registration of assignments, transf~s, and ~changes of Bonds shl!JI be made in the manner provided and with the effect stated in the FORM OF BOND set forth in this Ordinance. Each substitute Bond shall bear a letter and/or nl\.IDber to 4istin~sh it from each other Bond, Except as provided in (c) below, an authorized representative of the Paying AgentlRegistrar shall, before tPe delivC(l'y of an~ such Bond, date and manua1l~ sign the Pa~g AgentJRegistrar's Authentication Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed, The Paying AgentIReg,istrar eromptl~ shall cancel all paid Bonds and Bonds surrendered for transfer and exchange, No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the City or any Qtb...er boQy or person so (IS to accomplish the. foreg~ing transfer anet ~change of an~ Bond or portion thereo( and the Paying AgentJ Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the mannc::r prescribed herein, and said Bonds shall be of ~e composition printed on paper of customary weight and strength. Pursuant to Chapter 1201, Texas Government Code, as amended, the duty of transfer and exchange of Bonds as aforesaid is hereb~ imposed upon the Pa~ng Agent!Registrar, and, upon the execution of said certificate, the transferred and exchanged Bond shall be valid, incontestable, and enforceable in the same manner and with the S8(J1e etT~ as t;he Bond~ which initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public ACCOWlts, (b) Pa~ent of Bonds and Interest The Ci~ hereby further appoints the Pa~g Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Ordinance. The Paying 063939.0001 A,USTIN: 280348 ~ 2 . e Agent! Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar with respect to the Bonds, (c) In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof; (ii) may be redeemed prior to their scheduled maturities, (Hi) mar be transferred and assisned, (iv) may be exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed, sealed, executed, and authenticated, (vii) shall have the principal of and interest on the Bonds be payable, and (viii) shall be administered and the Paying Agent/Registrar and the City shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the manner and to the effect as req,uired or indicated, in the FORM OF BOND set forth in this Ordinance, The Initial Bond shall be delivered to . [as representative of a group of purchasers] (the "Initial Purchaser[s]") and are not required to be, and shall not be, authenticated br the Paying Agent/Re~strar, but on each substitute Bond issued in exchange for the Initial Bonds or any Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall execute the PAYING AGENTIREGISTRAR'S AUTHENTICATION CERTIFICAlE, in the form set forth in the FORM OF BOND. (d) Substitute Paying Agent/Retdstrar. The City covenants with the registered owners of the Bonds that at all times while the Bonds are ouistanding die City wiil provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying AgentlRegistrar will be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 da~ written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice, In the event that the enti~ at an~ time actin~ as Pa~n~ Agent/Re&istrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will apeoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar 1Dlder this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying A~entIR~strar promptly shall transfer and deliver the Registration Books (or a copy thereot), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the City, Upon any change in the Paying Agent/Registrar, the City )?romptl)' will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class posta~e prepaid, which notice also shall ~ve the address of the new Pa~g Agent! Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar, Section 4. FORM OF BONDS, The form of the Bonds, including the Form of Paying AgentlRegistrar's Authentication Certificate, the Form of Assignment, the Form of Statement of Insurance, and the Form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the Bonds initially' issued and delivered pursuant to this Ordinance, shall be, reseectively', substantially as follows, with such appropriate variations, omissions, or insertions as are pennitted or required by this Ordinance. FORM OF BOND [Form of Front Panel of Definitive Bond] NO.R- United States of America State QfTexas CIIT OF LA PORlE, TEXAS LIMITED TAX BOND, SERIES 2002 PRINCIPAL AMOUNT $ INTERESTRAlE MATIJRITY DAlE ISSUE DAlE July 15,2002 CUSIP NO. REGISlERED OWNER: PRINCIPAL AMOUNT: DOLLARS 063939.0001 AUSTIN 280348 v2 3 . e ON THE MATURITY DATE, specified above, THE CITY OF LA PORTE, a home rule city and m..up.ippal corporation oftbe State ofT~S (the "CitY'>, hereby promises to pay to the Registered Owner, specified above, or registered assigns (hereinafter called the "registered owner") the Principal Amount, specified above, and to {!a~ interest thereon from the Issue Date, specified abov~, on March 15, 2003, and semiannually on each September 15 and March 15 thereafter to the Maturity Date, specified above, or the date of redemption prior to maturity, at the Int.erest ~t~ per annum,. specified above; except that if this Bond is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such principal amount shall bear int~est from th~ it:1tere$l pa~el1t date next prxcedin& the ~te of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amOlmt shall bear inter~ from SQch next following iIlterest paY.Jllent date;. provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is Que b~t has n.ot been paid, then this Bond shall ~ inter~ frODl the dat~ to which such interest has been paid in full, Tl:IE PRQJCIPAL OF AND INTElffiST ON this Bon4 are I?B~ble in lawful money of the United States of America, without exchange or collection charges, The principal of this Bond shall be paid to the registered owner h~eof ~pon presentation lUlq surrender of this Bond at matQI'ity or upon the date fixed for its redemption prior to maturity, at the designated payment office of JPMORGAN CHASE BANK, Dallas, Texas, or its successor, which is tJt~. "P~yin& AgentlReg,istrar" for this Bond, Th~ I?BY.Jllent of interest on this Bond shall be made by the Paying AgentlRegistrar to the registered owner hereof on each interest payment date by check, dated as of such interest {!a~ent dat~, drawn by $e Pa~& Ag~tIRe&istrar on, and payclble solely from, funds of the City required by the ordinance authorizing the issuance of this Bond adopted on July 22, 2002 (the ''Bond Ordinance") to be on deposit with the P~ying Agent/Registrar for such p.UI"J!ose as herenu.fter l!I'ovi4ed;. and such check shall be sent by the Paying AgentlRegistrar by United States mail. first-class postage prepaid, on each such interest payment date, to the r~gistered owner hereot:. at its address as it appeared on the last business day of the month next preceding each such date (the ''Record Date") on the Registration Books kept by the Paying AgentlRegistrar, as hereinafter described. In a.ddition, interest may be paid by such other method, acceptable to the Paying Ag.entlRegistrar, requested by, and at the risk and expense ot: the registered owner. Tf.{IS BONP is Qne of a series of Bon4s dated as of July 15, 2002, authorized in accordance with the Constitution and laws of the State of Texas in the original principal amount of $5,400,000 for the purpose of {!roviding fWlds for the <;onstruction ofiml!l'ovements to the City's wastewater treatment plant and the relocation of Fire Station No.2 and the renovation of old Fire Station No, 2 for emergency medical services, RE.FERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND EFFECT AS IF S.ET FORTH IN TIllS SPACE. IN WITNESS WHEREOF, the City has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the City and countersigned with the manual or facsimile signature of the City Secretary of the Citr, and has caused the official seal of the Citr to be dulr impressed, or placed in facsimile, on this Bond. CITY OF LA PORTE, TEXAS City Secretary City of La. Porte. Texas Mayor City of La Porte, Texas [Fonn of Back Panel of Bond] 'flIP BONDS are issueQ. p'ursuant to the Bond Ordinance( whereunder the City covenants to levy a continuing direct annual ad valorem tax. on taxable property within the City, not to exceed $2.50 per assessed $100 valuation, a~ provided in Article XI, Section 5 of the Texas Con~ti~tion, fQr each ~ear while any part of the Bonds are considered outstanding under the provisions of the Bond Ordinance, in sufficient amount to pay interest on each 130nd ~s it becomes due, to provide a sinking fund for the I?BytD.enl of the principal of the Bonds when due, and to pay the expenses of assessing and collecting such tax, all as more specifically provided in the Bond Ordinance. 0639~9.0001 ,fLUSTIN 280348 v2 4 . e Reference is hereby made to the Bond Ordinance for provisions with respect to the custody and application of the City's fun~, remedi~ ~ the e.v~t ofa defu.!.dt herelIDder or th~elIDder, and the other rights of the registered owner. TInS BOND IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender at the principal corporate office of the Pa~& AgentlRegisttar, If this Bond is being transferred, it shall be duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner, or his authorized repr~tative, subject to the terms and conditions of the Bond Ordinance. IF TIlE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, a SWlday, a legal holiday, or a day on which banking institutions in the city where the desi&!lated payment office of the Paying Agent/Registrar is located are authorized by law or executive order to close, or the United States Postal Service is not open for b1,1Siness, then the date fQr such J?8.yment shall be the next su~ceeding ~a~ which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close, or the United States Postal Service is not open for business; and pa~ent on su<;h date shall have the same force and effect as if made on the original date payment was due, ON MARCH IS, ~015t or on any <late ther~ftert the Bonds oftbis seri.es may be redeemed prior to their scheduled maturities, at the option of the City, with funds derived from any available and lawful source, as a whole, or in Part (prQvided th~ a ~rtion of a Bond may be redeemed only in an inte~al multiple of $5,000) at the redemption price of the principal amount of Bonds called for redemption, plus accrued interest thereon to the date ~e4 for reQen;lption. If less than all of the .l.3onds are to ~ redtXmed,. tbe City shall determine the maturity or maturities and the amolIDts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or portions thereo~ within such maturi!}'" or maturities and in such principal amounts, for redemption. AT LEAST 30 days prior to the date for any such redemption, a notice of such redemption shall be sent by th~ Pa~g Agent/Registrar by United States mail... first class, postag.e prepaid, to the registered owner of each Bond, or portion thereof to be redeemed, at its address as it appeared on the Registration Books on the 45th day prior to such rede{D.ptiQn date an(i to maior securities dep~itories, national bond rating agencies, and bond information services; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the ~(iing Or lIlailing th~eo~ shall not affect the validitY. Qr eff~tiveness ofthe prQCeedings for the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the City with the Paying AgentlRegi&~ for the pa~ent of the re<l!lired redemption price for this Bond or the portion hereofwhich is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, an4 if dUe provisi.oI.l for ~ch payment is made,. all as provid~ abov~, this Bond, or the ~ortion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest afte( tbe ~te tiXed for its rede(Dpti.on, anet sha.ll not be regm:ded as being olJtstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the P~~g Agent/RegistraT out of the funds prQvided for SUell pa:r:ment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions ofpr.incipal of this Bond or any portion hereof. Ifa portion of any Bond shall Qe r~eemed.. a substitute Bond or Bonds having. the same matJll'ity date, bearin~ interest at the same rate, in any denomination or denominations in any integral multiple 0[$5,000, at the written request of the registered owner, and to an ~ggr~at.e principal amOlUlt CClual to the unred~emed Q<)rtion thereof, will be issued to the registered owner upon the surrender thereoffor cancellation, at the expense of the City, all as provided in the Bond Ordinance. ALL BONDS OF nns SERIES are issuable soJe]~ as fully regist.ered Bon.~, without interest coupons, in the denomination of any integral multiple of $5,000. As provided .in the Bond Ordinance, this Bond, or any \.lI1redeem..e<l portion hereot may, at the re<l!lest of the re~stered owner or the. a.ssignee or assignees hereo~ be assigned, transferred, and exchanged for a like aggregate principal amount of fully regiStered Bonds, without interest CO\lpons, p~yctble to the appropriate registered owner, assignee, or assignees, as the case may be, having the same denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered QW{l.~, {lssign~.. or assignees, as the <;ase may be, upon surreneter of this Bond to the Paying AgentlRegistrar for cancellation, all in accordance with the fonn and procedures set forth in the Bond Ordinance. AmQng other requirements for such ~ssi~~t and transfer, this Bond must be prl(Sel1ted and surrendered to the Paying AgentlRegistrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the: P~ying Agent/Registrar, evidencing ass.i~ent of this Bond or any portion or portions hereof in any integral multiple of$5,OOO to the assignee or assignees in whose name or names this Bond or any such portion 063939.0001 AUSTIN 280348 v2 5 . e or portions hereof is or are to be registered. The Fonn of Assignment printed or endorsed on this Bond may be f(x({CUted bY.. the regist~ed owner to evid.ence the assig,nm.ent hereot: but such method is not exclusive, and other instnDnents of assignment satisfactory to the Paying Agent/R.egistrar may be used to evidence the assignment of this Bond or an~ {)ortion or eortions hereof from time to time by the registered owner. The person requesting such transfer and exchange shall pay the Paying Agent/R.egistrar's reasonable standard or customary fees and charges for tra..nsfening and excb~& an~ Bond or e~on thereof. In any <<.il:cumstance, an~ taxes or governmental charges required to be paid with respect thereto shall be paid by the person requesting such assignment, transfer, or ~change, as a condition erecedent to the exer~ise of such ~rivilege. The foregoing notwithstanding, in the case of the exchange of a portion of a Bond which has been redeemed prior to maturity, as provided herein, and in the case of tile exchang~ of an assi&11ed and transferred Bond. or Bonds or an~ {)ortion or I!.ortions thereot: such fees and charges of the Paying Agent/R.egistrar will be paid by the City. The Paying AgentlRegistrar shall not be required to m~e (IllY su~ transfer or exchange (i) 4uring tbe eeri04 <;omm~cing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date or (ii) with respect to any ~ond or any eortion thereof caIleq for red~ption erior to matQri~ within 45 days prior to its redemption date. IN THE EVENT any Pa~n& Agent/Registrar for the Bon4s is changed by the City, resigns, or otherwise ceases to act as such, the City has covenanted in the Bond Ordinance that it promptly will appoint a competent and l~al~ Q.ualified substitu.te th~efort. and cause written notiC(( ther~f to be m&iled to the registered owners of the Bonds, BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that t.h~ {lond Ord,in,ance is 4ul~ recor4ed. an,d available for inse~tiQfl in the official minutes and records of the governing body of the City, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute C!- contra~ between ~ch registered owner hereof and the City. IT IS HEREBY CERTIFIED, RECITED, AND COVENANTED TIIAT this Bond has been duly and YclU.dly authom~ iss1J.ecJ, and deUvered; aJl acts, conditions, an4 t.hing,s rCQ.!1ired or roper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond nave been perfonned, existed, an4 ~ qone in a~cordance with law~ and ad valorem t!!Xes sufficient to erovide for the payment of the interest on and principal of this Bond, as such interest comes due, and as such principal matures, have been levied and ordered to be levied ag,ainst CllI taxable prol!.~ to the Ci~, and have ~~ eledged for such payment, within the limit prescribed by law. FORM OF INITIAL BOND The Initial Bond shall be in the fonn set forth above for the Definitive Bonds. excent the following shall replace the heading and the first Daragranh and the Bond will be a contiriuous docwnent: NO. {-I $5,400,000 United States of America State of Texas CITY OF LA PORTE, TEXAS LIMITED TAX BOND, SERIES 2002 Issue Date: JULY 15,2002 Regis~ered. ~er: Principal Amount: r FIVE MILLION FOUR HUNDRED THOUSAND OOLLARS ($5,400,000) THE CITY OF LA PORTE.. TEXAS (!he "Citi'1 for value r~eived, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner, specified above, or the registered assigns thereof (the 0.63939.00.0.1 AUSTIt!: 7JlQ34.!l,a 6 . e ''Registered Owner"), the Principal Amount, specified above, with principal instalhnents payable on March 15 in ~ch of the years, and bearing interest at ~er ~wn ra~es in accordance with the following schedule: YEARS OF STATED MATIJRlTIES PRINCIPAL INSTALLMENTS $ INTEREST RATE % (Information to be insert((d from schedule in Section 2 hereof.) INTEREST on the wpaid Principal Amowt hereof from the Issue Date, specified above, or from the most recent interest payment (late to which interest has ~ paid or du1~ provided for QIltil the Principal Arnowt has become due and payment thereof has been made or duly provided for shall be paid computed on the basis of a 360- Qay year of twelv~ ~O-da~ J;Ilonths; such intert=:St. being payable on March 15 and September 15 of each year, commencing March 15,2003, THe PRINCIPAL OF AND INTEREST ON this Bond m:e payable in lawful money of the United States of America, without exchange or collection charges, The final payment of principal of this Bond shall be paid to the Re&ist~ed Owner hereof uPOIl presentation @Dd s\UTender of thi~ Sond at {inal mal\!Tity, at the designated payment office of JPMORGAN CHASE BANK, Dallas, Texas, which is the "Paying AgentJRegistrar" for this Bond. The pa~ent of priI:lcipal insta]hnents an4 interest on thi.s Bond shall be macle b~ th~ Paying AgentlRegistrar to the Registered Owner hereof as shown by the Registration Books kept by the Paying Agent/Registrar at the close of busi)l~s on the R~ord Date "by Q1~. d,rawn b~ th~ Pl!~g. Ag,entJRegislI'ar on.. ancl ~ayable solely from, funds of the City required to be on deposit with the Paying AgentlRegistrar for such purpose as required by the ordinance l!u..tl\.oriziI:lg the issWJIlce of this Bond adopt~d on July 22,. 2002 (th~ "Bond Ordim!n~e"); and such check shall be sent by the Paying AgentlRegistrar by United States mail, postage prepaid, on each such payment date, to the registered owner hereof at its adcJress as it appea,rs on the R~gist;raJion Books k~t by the Paying AgentlRegistrar, as hereinafter described. The record date ("Record Date") for payments hereon means the last business day of the month pr~~ing a s~edul_ed payment. In ad4ition" interest may be paid b~ ~ch otl;t.er method, acceptable to the Paying AgentlRegistrar, requested by, and at the risk and expense, of the registered owner. In the event of a non- pa~ent of inter~t on a scheduled :payment date, and for 30 days thereafter, a new record date for such payment (a "Special Record Date") will be established by the Paying AgentlRegistrar, if and when funds for the payment ther~ofhaxe been {ec~ived frOll;l the City. Notice of the Sp~ial. R.ecord Date 3!14 of the scheduled payment date of the past due payment (the "Special Payment Date", which shall be 15 calendar days after the Special Record Date) shall ~ ~t 8.t l~st five bijsiness da~s prior to the SpeciaJ Record Date b~ Unit~d St~tes mail, first class, postage prepaid, to the address of the Registered Owner appearing on the books of the Paying AgentJRegistrar at the close of business Qn the llJst business Qa~ next pr~eding, the dat~ of mlJilin8. of su~ notice, The City covenants with the Registered Owner that no later than each principal instalhnent payment date and interest payment date for this Bond it will mak~ av~ila.ble. to th~ Paying. As.erlt/Registrar the QIDQunts reQ..uired t.o ~rovide for the payment, in immediately available fimds, of all principal of and interest on the Bond, when due, m the manner set forth in the Ordinance defined below, FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE. · Not required on Initial Bond PAYING AGENf/lWGISTRAR'S AUfHENfICATION CERTIFICATE It is hereby certified that this Bond has been issued wder the provisions of the Bond Ordinance described in the text of this Bond; and that this Bond has been issued in exchange for, a bond, bonds, or a portion ofa bond or bonds ofa Series which originally was approved by the Attorney General of the State of Texas and registered by the Com]?troller of Public Accounts of the State of Texas, 063939.0001 AUSTIN. 280348. v2 7 . e Dated: JPMORGAN CHASE BANK, Paying Agent/Registrar By Authorized Signature FORM OF STATEMENT OF lNSURANCE STATEMENT OF INSURANCE [TO COME] FORM OF ASSIGNMENT ASSIGNMENT FOR.. VALUE lQ::CEIVED... the(. un(jersi~ed registereQ owner of this Bond, or duly authorized representative or attorney thereot: hereby assigns this Bond to I I (Assignee's Social Security or Tax Payer Identification number) (Print or type Assignee's name and address, including zip code) and hereby irrevocably constitutes and appoints attorney to transfer the registration of this Bond on the Paying AgentlRegistrar's Registration Books with full power of substitution in the premises. D~t~ Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company, NOTICE: The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Bond in every particular, without alteration or enlargement or any change whatsoever, The following abbreviations, when used in the assignment above or on the face of the within Bond, shall be <;onstrueQ as thQugh th~ were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TeN ENT - as tenants by the entireties IT lEN - as joint tenant with right of survivorship and not as tenants in common UNIE GIFt MIN ACf - Custodian (Cust) (Minor) under Uniform Gifts to Minor Act (State) Additional abbreviations may also be used though not in the list above, 063939.000l AUSUN 280348.a. 8. . e FORM OF REGISTRATION CERTIFICATE OF TIlE COMPTROLLER OF PUBLIC ACCOUNTS. .To be printed or attached to Initial Bond only COMPTROLLER'S REGISTRATIQN CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney G~~I of the State of T~s, and that this Bond has beeo. registered b~ the Com~troller of Public Accounts of the State of Texas. Witness my s~ature an4 !leal this COMPTROLLER'S SEAL Comptroller of Public Accounts of the State of Texas [END OF FORMS] Section 5. TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund'') is hereby cr~t~ solely for the benefit ofth~ Bonds, and the Interest and Sinking Fund shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart from @ll otb.er ~ds and accounts of th~ Ci~, and shall be used only for p~ying. the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be deposited, as collected, to the cr~t of tlle Interest an4 Sinking Fund, During each ~ear while an~ of the Bonds or interest thereon are outstanding and unpaid, the Council shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to rai~ and ~rQduce the money reQ!1ired to l!ay the interest on the Bonds as such interest comes due, and to provide and maintain a sinking fimd adequate to pay the principal of its Bonds as such principal matures (but never I~s tb.aJ:!. ~% ofth~ orig!n.al p!inci~al amOlJllt of said BonQs as a sinking.fimd ((ach year); and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax colle~on, Said rc,te and amount of ad valorem tax is hereby levied... and is hereby ordered to be levied, against all taxable property in the City for each year while any of the Bonds or interest thereon are outstanding and qnpai4; an4 s~iQ Upc. shall be assessed and c.oll~~ ~ch such ~ an4 deQosit~ ~o the credit of the aforesaid Interest and Sinking Food, Said ad valorem taxes sufficient to provide for the payment of the interest on and l!rincipal o(th~ a<>nds, "s such interest comes Que an4 sU(;h principal matures, are hereby pledged for such payment, within the limit prescribed by law. S~tion 6, PEFECTED SECURITY INTEREST, Chap-ter 1208.. Texas Government Code, applies to the issuance of the Bonds and the pledge of the taxes granted by the City under this Ordinance and such pledge is, Qu~rc:c.fore,. v~lid.. effective.. and perfected. Should Texas law be amended at an~ time while the Bonds are outstanding and unpaid, the result of such amendment being that the pledge of the taxes granted by the City under (tlis OrQinance is to be sublect. to the tiling r~uirements of Cha~ter 9, Texas Business & Commerce Code, in order to preserve to the Registered Owners of the Bonds a security interest in such pledge, the City agrees to take such meaSQr~ itS it d.etennines are reasqnable @11d necessary to ~able a filing of a seCQl'ity interest in said pledge to occur. Section 7. DISPOSmON OF BOND PROCEEDS. The ~roceeds of the Bonds shall be placed into the Interest and Sinking Fund and the Construction Fund of the City as follows: (a) Interest and Sinking F~d. An amount eq,ual to the aCCl'Ued interest on the Bonds from the date of the Bonds to the date of delivery to the Initial Purchasers shall be deposited in the Interest and Sinking Fund (b) Construction Fund. The proceeds of the Bonds remaining after the above described deposit into the Interest and Sinking Fund shall be placed in the Construction Fund (hereby created) to be used by the City for the l!ureoses described in this Ordinance. 063939.0001 AUSTIN 280348 9 . e Section 8. INVESTMENTS AND SECURITY, (a) Invesbnent of Foods. The City may place money in any fund created by this Ordinance in time or demand deposits or invest such money as authorized by law and the City's invesbnent policies at the time of such deposit; provided, however, that the City hereby covenants that the {'roceeds of the sale of the Bonds will be used as soon as {)racticable for the {)UT(loses for which the Bonds are issued. Obligations purchased as an invesbnent of money in a fund shall be deemed to be a part of such fund, (b) AmOOOts Received from Investments. Except as otherwise provided by law, amooots received from the investment of the Construction Food may be retained in such fund or deposited to the Interest and SiQkins. Fund as determined b~ the Ci~ COijJlcil.. An~ amQunts received from the investment of the Interest and Sinking Fund shall be deposited in the Interest and Sinking Fund. (c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent required by hlw for the security offundS of the City. (d). Remainine; Foods. An~ money' remainins. a.fier the p~oses for which the Bonds have been accomplished shall be deposited in the Interest and Sinking Fund and the Construction Fund shall be closed. Section 9. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the Bonds provided by the laws of the State of Texas, the City and the Cooocil covenant and agree that in the event the City defaults in the l'8yment of the principal of or interest on any of the Bonds when due, fails to make the payments required by this Ordinance to be made into the Interest and Sinking Food, or defaults in the observance or performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the owner of any of the Bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the Cooocil and other officers of the Ci~ to observe and {)erfonn any covenant, obli~ation, or condition prescribed in this Ordinance, No delay or omission by any owner to exercise any right or power accruing to such owner upon default shaJI im{)air any such ri8.ht or power, or shall be construed to be a waiver of an~ such default or acquiescence therein, and every such right or power may be exercised from time to time and as often as may be deemed expedient. The specific remedies mentioned in this Ordinance shall be available to any owner of any of the Bonds and shall be cumulative of all other existing remedies. . Section 10. pEFEASANCE OF BONDS, (a) Any Bond and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent {'rovided in subsection (c) of this Section, when pa~ent of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (includin& the ~ving of any required notice of redemption) or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paring Agent/Registrar for such payment (A) lawful mone~ of the United States of America sufficient to make such payment or (B) Government Obligations (hereinafter defined) which mature as to principal and interest in such amooots and at such times as will insure the availabili~, without reinvesbnent, of sufficient money to provide for such payment, and when proper arrangements have been made by the City with the Paying Agent/Registrar for the payment of its services ootil all Defeased Bonds shall have become due and payable. At suCh time 'as a Bond shall be deemed to be a Defuased Bond hereooder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits ot: the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. (b) MIY tnQn.e~ ~ depo$ited with tJte Pa~& AgentlRegistrar ma~ at the written direction of the City also be invested in Government Obligations, maturing in the amooots and times as hereinbefore set forth, and all income frQm ~t;h Go\,~~~ Obligations received by the Paying A8.entlRegistrar which is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned over to the City, or deposited as directed in writing by the City. (c) The term "Government Obli8ations" as used in this Section, shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are ooconditionally guaranteed by the 06~9~9.0001 ~USTIN 280348 10 . e United States of America, which may be United States Treasury obligations such as its State and Local Government Series, which may be in book-entry form. (d) Until all Defeased Bonds shall have becQIDe due anq P.3yciQle, the PaY.in~ AgentlRegistrar shall perform the services of Paying AgentlRegistrar for such Defeased Bonds the same as if they had not been defeased, and the City shall Q.lak~ proper ~~ents to J!I'ovide lJIld par for such servi<;es as required by this Ordinance. Section II. BOOK-ENTRY ONLY SYSTEM. It is intended that the Bonds initially be registered so as to parti<;iQat.e in a securities depository. s~em (!he "DTC S~tem") with The Deposito~ Trust Company, New York, New York, or any successor entity thereto ("DTC"), as set forth herein. The definitive Bonds shall be issued in the foI1D, of a. sepm:ate sins.Ie definitive. Bond for each matlU'ity, Upon issuance.... tb~ ownership of each such Bond shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the outstanding Bonds shall be r~iS\.erl(d in Ute name of Ce4e &. Co" as the nomin~ of DTC, The Ci~ and th~ Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necesS3.Q' to ~ffectQate the DTC S~em.t including. a "L~er ofReprl(seota.tion" (the "Representation Letter"). With respect to the Bonds registered in the name of Cede & Co" as nominee of DTC, the City and the P~yin8.. A,8.en~egistrm: shall have no responsibili~ or obligatiQn to anr broker-4ealer, bank, or other financial institution for which DTC holds the Bonds from time to time as securities depository (a "Depository Participant") or t.o any p'er~on QJl bebl;l.lf of whom such a D~ository ParUciQ3.Qt holds aP- interes~ in the Bonds (an "Indirect Participant"). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall hay(; nO responsibility or obli~ation with respect to (i) $(; accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds, or (ii) the delivery to any Depository flP\icipan.t or lJIlY Indirect Participant or any other Person, other than a registered o~er of a Bond, of any amount with respect to principal ot: premiwn, if any, or interest on the Bonds. While in the DTC System, no person other than Cede 8{, Co... or any successor thereto,. as nominee for DTC, shall receiv(; a Bond evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by ore to d.1(; Payblg, AgentlRe8..istrar of written. n.oQ.ce to th~ effect that DTC has. ejetermined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts beQIg m.aile4 to th(; holder, the word ''Cede & Co," in this Or4inaP-ce shall refer to such new nominee ofDTC, In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described berein an.d i{1 t/;.1e Representation Letter, (b) the R.et?resentation L.etter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain ~ifi~t~ aon4s. th(; Ci~ shall notity the Paring AgentlRegistrar, DTC.. and Depository Participants of the availability within a reasonable period of time through DTC of certificated certificates, and the Bonds shall no longer: be rt$'icted t.o ~ing r~gistere4 in the. name of Cede & Co" as nominee ofDT<;. At that time, the City may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a securities <Jepository system, as may be acceQtable to tJte Ci~, or such deposito~'~ agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Bonds may be registered iIl. wba.tever names th~ r~gistered owners of Bonds transferring.or exchanging the Bonds shall designate, in accordance with the provisions hereof. . Notwitb~an.ding any other provision of this Ordinll11ce to the contrary, ~o lon~ as any Bond is registered in the name of Cede & Co., as nominee ofDTC, all payments with respect to principal of: premiwn, if any, and interest on SUQI BQn4 and all notjces with resp(ct to such Bond shall be made and g~vent respectively, in the manner provided in the Representation Letter. Section 12. DAMAGED. MUTILATED. LOST. STOLEN. OR DESTROYED BONDS, (a) Reolacement Bonds, In the event any outstanding Bond . is damaged, mutilated, lost, stolen, or destroyed, the Paying .(\g,en..tlRem-s.trar shall cause to be printed. (;Xecuted. lJnd deliver~. ~ new bond of the same principal amo1Dlt, maturity. and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided, (b) Ap.plication for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying AgentlRegistrar. In every case of 063939.0001 AUSTIN 280348 11 . e loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall furnish to the City and to the Paying A~entIRegistrar such securitr or indemnitr as may be required by them to save each of them harmless from any loss or damage with respect thereto, Also, in every case of loss, theft, or destruction of a Bond, the re~istered owner shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Pa~~ A~ent/R.egistrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred, Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section, (d) Char2e for. Issuin~ ReolacetD:ent Bon~, Prior to the issuance of any replacement bond, the Paying AgentlRegistrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen; or destroyed shall constitute a contractual'obligation of the City whether or not the lost, stolen, or destrOfed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance, (e) Authority for Issu~g ~lacement Bonds. In accordance witQ Chal!ter 1201, Texas Government Code, as amended, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of furth~ action b~ the governing bod~ of the City or an~ other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent! Registrar, and the Paying ('\gentl.R..egistrar shall authenticate an4 deliver ~uch Bonds in the form an4 IQan.ner and with the effect, as provided in Section 4 of this Ordinance for Bonds issued in exchange for other Bonds. Section 13. CUSTODY. APPROVAL. AND REGISTRATION OF BONDS: BOND COUNSEL'S . . .. .... .. ~ OPINION. AND CUSIP NUMBERS, The Mayor of the City is hereby authorized to have control of the Bonds iP.tti31ly ~su~ ~d delivered hereWlder and all nec~ records and @'oc~in&S p'~aining to the Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their regis\fation b~!be Comptroller of Public Accounts of the State of Texas, Upop registration of the Bonds said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign th~ Comptrollt::r'& Re,&istration Certill.cat<c Q.~ched to sQch Bonds, (!D4 the s~l of said Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of Akin, Gump, Strauss, Hauer ~ feld.. L.L.P.. Bond Counsel and the assigned CUSIP munbers may, at th~ option of the City, be printed on the Bonds issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the ~onveni~~ and ipformation of the registered owners of the Bonds. Section 14. COVENANTS OF THE CITY. (a) General Covenants, The City covenants and represents that: (i) The City is a duly incorporated Home Rule City, having more than 5000 inhabitants, operating and existing under the Constitution and laws of the State of Texas, and is duly authorized under the laws of the State of Texas to create and issue the Bonds; all action on its part for the creation and issuance of the Bonds has been duly and effectively taken; and the Bonds in the hands of the Owners thereofare and will be valid and enforceable obli~ations of the Citr in accordance with their terms; and (ii) The Bonds shall be ratably secured in such manner that no one Bond shall have preference over other Bonds. (b) SDecific Covenants. The City covenants and rt:J!Tesents that, while the Bonds are outstanding and unpaid, it will: Q63919JlOOl AUSTIN 28034.8 1.2 . e (i) Levy an ad valorem tax that will be sufficient to provide funds to pay the current interest on the Bon4s ~4 to @'ovide the nec~ssary sinking fipld. all as described in this Ordinance; and (Ii) Keep proper books of record and accoWlt in which full, true, and correct entries will be made of all 4eQIings... activities~ and transa~ions t:elatjng to the FQtlQs create(!. pursuant to this Ordinance, and all books, docwnents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request from any Owner. (c) Covenants ~t!ardin~ Tax Mal!ers, The City covenants to take an~ action to maintain, or refrain from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in "gross income" for federal income tax pW'poses, In furtherance thereot: the City specifically covenants as follows: (i) To refrain from takin8 an~ action which would result in the Bonds being treated as ''private activity bonds" within the meaning of section 141(a) of the Code; (ii) To take any action to assure that no more than 10% of the proceeds of the Bonds or the projects financed therewith are used for any "private business use," as defined in section 141(bX6) of the Code or, if more than 10% of the {>>"oceeds or the projects financed therewith are so ~ that amoWlts, whether or not received by the City with respect to such private business use, do not Wlder the terms of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10% of the debt service on the Bonds, in contravention of section 141(b)(2) of the Code; (Hi) To take any action to assure that in the event that the ''tJrivate business use" described in paragraph (ll) hereof exceeds 5% of the proceeds of the Bonds or the projects financed therewith, then the amotUlt in excess of 5% is used for a ''private business use" which is ''related'' and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (iv) To tak,e QIlY acti.on to assQl'e that no ~oWlt which is greater than the lesser of$5,OOO,000 or 5% of the proceeds of the Bonds is directly or indirectly used to finance loans to persons, other than state or local governmentallBlits, in contravention of section 141(c) of the Code; (v) To refrain from taking any action which would result in the Bonds being "federally guaranteed" within the meanin~ of section 149(b) of the Code; (vil Ex~ep.t to the ext~t permitt~ by ~ection. 148 of th~ c.oQe ll!ld the regulations and rulings therewlder, to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or (0 rqJhtcc:: funds which were ~,. directl~ or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, (vii) To otherwise rt(Strict the use of the pr0cee4s of the Bonds or amoWlts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating. to arbitr3ge) and. to the extent applicablet section 149(d) of the Code (relating to advance refundings); (vi\j) Except to the extent otherwis~ provided in section 148(1) of the C;ode and the regulations and rulings thereunder, to pay to the United States of America at least once during each five year period (beginning on. the dat~ of delivery of the Bonds) an amotUlt that is at least equal to 90% of the "Excess Earnings," within the meaning of section 148(f) of the Code, and to pay to the United States of America, not 13ter thQIl 60 ~ after the Bonds have been paid in fullt 100% of the amoWlt then required to be paid as a result of Excess Earnings lBlder section 148(f) of the Code; (ix). To maintain $u~h records as will enable the City to fulfill its respo{lsibilities under this subsection and sections 141 and 148 of the Code and to retain such records for at least six years following the final payment of principal and interest on the Bonds; and 063939.0001 AUSTIN 280348 13 . e (x) To comply with the information reporting requirements of section 149(e) of the Code, For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred proceeds and, for purposes of paragraphs (ii) and (Hi), proceeds of the refunded bonds. The covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U.S. Department of Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Bonds, the City will not be required to comply with any covenant contained herein to the extent that such modification or expansion, in the opinion of nationally-recognized bond counsel, will not adversely affect the exclusion from gross income of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the City agrees to comply with the additional .requirements to the extent necessary, in the op.inion of nationally-recognized bond counsel, to preserve the exclusion from gross income of interest on the Bonds under section 103 of the Code. Proper officers of the City charged with the responsibility of issuing the Bonds are hereby authorized and directed to execute any documents, certificates, or reports required by the Code and to make such elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion from gross income of interest on the Bonds under section 103 of the Code the covenants contained in this subsection shall survive the later of the defeasance or discharge of the Bonds, (d) Covenants Regarding Sale. Lease. or Disoosition of Financed Prooertv, The City covenants that the City will regulate the use of the property financed, directly or indirectly, with the proceeds of the Bonds and will not sell, lease, or otherwise dispose of such property unless (i) the City takes the remedial measures as may be required by the Code and the reIDJIations and rulinKs thereunder in order to preserve the exclusion from gross income of interest on the Bonds under section 103 of the Code or (ii) the City seeks the advice of nationally-recognized bond counsel with r~ct to such sale, lease, or other disposition, Section 15. DESIGNATION AS OUALIFlED TAX-EXEMPT OBLIGATIONS, The City hereby desigpates the Bonds as "Q\l8lified tax-exempt obligations" as defined in section 265(b)(3) of the Code. In furtherance of such designation, the City represents, covenants, and warrants the following: (a) during the calendar year in which the Bonds are issued, the CitY. (~cluding. any subordinate entities) has not designated nor will designate obligations, which when aggregated with the Bonds, will result in more than $10,000,000 of "qualified tax-exempt obligations" being.,issued; @) the City reasonably antici~tes that the amount of tax-exempt obligations issued during 2000 by the City (including any subordinate entities) will not exceed $10,000,000; and (c) the City will take such action which would assure, or to refrain from such action which would adversely affect, the treatment of the Bonds as "qualified tax-exempt obligations," Section 16. SALE OF BONDS. The sale of the Bonds to the Initial Purchas~[s] pursuant to the taking of competitive bids at a price of~, plus accrued interest to the date of delivery is hereby confirmed. It is hereby officially found, determined, and declared that the Initial Purchaser[!llsubmitted the bid which results in the lowest true interest cost to the City and delivery of the Bonds to the Initial Purchaser[ s] shall be made as soon as practicable after the adop.tion of this Ordinance, upon payment therefor, in accordance with the terms of sale. The Initial Bond shall be registered in the name of the Initial Purchascr[s]. The officers of the City are hereby authorized and directed to execute and deliver such certificates, instructions, or other instruments as are reql,lired or necessary to accomplish the purposes of this Ordinance. Section 17. APPROVAL OF OFFICIAL STATEMENT. The City hereby a~proves the form and content of the Official Statement relating to the Bonds, and any addenda, supplement, or amendment thereto and approves the distribution of such Official Statement in the reotTering. of the Bonds by..the Initial Purchasers in final form, with such changes therein or additions thereto as the officer executing the same may deem advisable, such detennination to be conclusively evidenced by his execution thereof. It is further officially found determined and declared that the 063939.0001 AUSTIN 280348 14 . e statements and representations contained in said Official Statement are true and correct in all material respects to the best knowledge and belief of the Council. Section 18. CONTINUING DISCLOSURE UNDERTAKING,_ (a) Annual Reoorts. The City shall provide annually to each nationally-recognized municipal securities infonnation repository ("NRMSIR") and to any state information deppsitory ("SID"), within six months after the end of each fiscal ~ear ending in or after 2002, financial information and operating data with respect to the City of the general type mcluded in the final Official Statement authorized by Section 15 of this Ordinance, being the information described in Exhibit B hereto. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the CitY. commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, the City shall provide audited financial statements for the al?plicable fiscal year to each NRMSIR and any SID when and if the audit report on such statements becomes available, If the City changes its fiscal year, it will notifY. each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operatin& data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) if it is available from the Municipal Securities Rulemaking Board (the "MSRB") that theretofore has been provided to each NRMSIR and any SID or filed with the Securities and Exchange Commission ("SEC"). (b) Material Event Notices, The City shall notify any SID and either each NRMSIR or the MWlicipal Securities Rulemaking Board ("MSRB"), in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning, of the federal securities laws: (i) ~rincipal and interest payment delinquencies; (ii) non-payment related defuults; (iii) Wlscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements reflecting, financial difficulties; (v) substitution of credit or liquidity providers, or their fuilme to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) modifications to rights of holders of the Bonds; (yiii) calls;. (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Bonds; and (xi) rating changes, The City shall notifY any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section, (c) Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning ofSEC Rule 15c2-12 (the "Rule"), except that the City in any event will give notice of any deposit made in accordance with Section 17 above that causes the Bonds no longer to be outstanding and any call of Bonds made in connection therewith. The provisions of this Section are for the sole benefit of the Owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right. remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHEnlER NEGLIGENT OR 063939.0001 AUSTIN 280348 15 . e WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN TIllS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON,. IN CONTRACT OR TORT.. FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No demult by the City in observing or perfonning its obligations under this Section shall comprise a breach of or demult under this Ordinance for purposes of any other provisions of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended, supplemented, or repealed by the City from time to time under the following circumstances, but not otherwise: (1) to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if the provisions of this Section, as so supplemented or amended, would have permitted an underwriter to purchase or sell Bonds in the present offering in compliance with the Rule and either the Owners of a majority in aggregate principal amount of the outstanding Bonds consent to such amendment, supplement, or repeal, or any State agency or official determines that such amendment, supplement, or repeal will not materially impair the interests of the beneficial owners of the Bonds, (2) upon repeal of the applicable provisions of the Rule, or any judgment by a court of final jurisdiction that such provisions are invalid, or (3) in any other circumstance or manner permitted by the Rule. Section 19. FURTHER PROCEDURES. The Mayor, the City Secretary, the City Manager, the Finance Director, the City's Financial Advisor, and all other officers, employees, attorneys, 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 and to execute, acknowledge, and deliver in the name and under the seal and on behalf of the City, all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the Bonds, and the Official Statement. Prior to the initial delivery of the Bonds, the Mayor and Bond Counsel to the City are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instrwnents authorized by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Bonds by the Texas Attorney General's office, Section 20. ORDINANCE A CONTRACT: AMENDMENTS. This Ordinance shall constitute a contract with the Owners, from time to time, of the Bonds, binding on the City and its successors and assigns, and shall not be amended or repealed by the City as long as any Bond remains outstanding except as permitted in this Section. The City may, without the consent of or notice to any owners, amend, change, or modifY this Ordinance as may be required (i) by the provisions hereof, (ii) in connection with the issuance of any additional bonds, (iii) for the purpose of curing any ambiguity, inconsistency, or formal defect or omission herein, or (iv) in connection with any other change which is not to the prejudice of the Owners. The City may, with the written consent of the Owners of a majority in aggregate principal amount of Bonds then outstanding affected thereby, and the insurer of any Bonds amend, change, modify, or rescind any provisions of this Ordinance; provided that without the consent of all of the Owners affected, no such amendment, change, modification, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof to the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on additional bonds on a parity with the lien of the Bonds, (ii) give any preference of any Bond over any other Bond, (iii) extend any waiver of demult to subsequent demults, or (iv) reduce the aggregate principal amount of Bonds required for consent to any such amendment, change, modification, or rescission. Whenever the City shall desire to make any amendment or addition to or rescission of this Ordinance requiring consent of the Owners, the City shall cause notice of the amendment, addition, or rescission to be given as described above for a notice of redemption, Whenever at any time within one year after the date of the giving of such notice, the City shall receive an instrument or instruments in writing executed by the Owners of a majority in aggregate principal amount of the Bonds then outstanding affected by any such amendment, addition, or rescission requiring the consent of Owners of Bonds, which instrument or instruments shall refer to the proposed amendment, addition, or rescission described in such notice and shall specifically consent to and approve the adoption. thereof in substantially the form of the copy thereof referred to in 063939.0001 AUSTIN 280348 16 . e such notice, thereupon, but not otherwise, the City may adopt such amendment, addition, or rescISSIon in substantially. such form.~ except as herein provided, No Owner may thereafter object to the adoption of such amendment, addition, or rescission, or to any of the provisions thereot: and such amen(bn.ent, addition, or rescission shall be fully effective for all purposes. Section 21. MISCELLANEOUS, (a) Titles Not Restrictive. The titles assigned to the various sections of this Ordinance are for convenience only and shall not be considered restrictive oCthe subject matter of any section or of any part of this Ordinance. (b) Inconsistent Provisions. All ordinances, orders, and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed and declared to be inapplicable, and the provisions of this Ordinance shall be and remain controlling as to the matters prescribed herein. (c) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or provision of this Ordinance or the application thereof to any person or circumstances shall be held to be invalid, the remainder of this Ordinance shall nevertheless be valid and the Council hereby declares that this Ordinance would have been enacted without such invalid word, phrase, clause, paragraph, sentence, part, portion, or provisions. (d) Governing: Law, This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas. (e) Effective Date. This Ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained PASSED AND APPROVED this July 22, 2002, Is! Noman L. Malone Mayor, City of La Porte, Texas ArrEST: Is! Martha Gillett City Secretary, City of La Porte, Texas 063939.0001 AUSTIN 280348 17 063939.0001 AUSTIN 280348 Y2 . e EXlllBIT A FA YING AGENTIREGISTRAR AGREEMENT (A copy of this document is found elsewhere in this transcript.) A-I . e EXHIBIT B DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 18 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified and included in the Appendix or under the headings of the Official Statement referred to below: 1. The audited financial statements of the City for the most recently concluded fiscal year. 2, The information included in the Official Statement under the headings "FINANCIAL INFORMATION", ''TAX COLLECTION DATA", "TAX RATE DISTRIBUfION", "CITY SALES TAX", "GENERAL OBLIGATION BONDS AUfHORIZED BUT UNISSUED", "ESTIMATED DIRECT AND OVERLAPPING DEBT STATEMENT", "PRINCIPAL REPAYMENT SCHEDULE", and "ESTIMATED DEBT SERVICE REQUIREMENT SCHEDULE." Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in paragraph 1 above, as such principles may be changed from time to time to comply with state law or regulation. 063939.0001 AUSTIN 280348 v2 B-1 . MORONEY. BEISSNER e Municipal Fmancia1 Advisors Since 1919 July 24, 2002 RECEIVEOcs JUL 2 9 2002 10' CITY MANA~~~'S ) OFFICECV Mr, Robert Herrera City Manager City of La Porte 604 W, Fairmont Parkway La Porte, TX 77571 Re: City of La Porte, Texas $5.400,000 Limited Tax Bonds, Series 2002 Dear Bob: Enclosed are the bids received at the City's sale held Monday, July 22nd, including the winning bid of William R. Hough & Co. and Associates. Please have Martha Gillett incorporate these into the permanent records of the City. Also included is a tabulation of all the bids. A debt service schedule and combined debt service schedule are enclosed and copies have been sent to JPMorgan Chase Bank, Dallas, Texas, the Paying Agent/Registrar. It was certainly our pleasure to have had a hand in this financing for the City, and we look forward to our continued representation of the City of La Porte. Yours very truly, !1Zh2 )(~d- Moss K. Fetzer President MKF:smt Encl cc: Ms, Cynthia Alexander, Finance Director 1980 Post Oak Boulevard · Suite 2100 · Houston, Texas 77056 Office: (713) 960-8900 · Facsimile: (713) 960-8904 www.moroneybeissner.com . Ratings: FGIC Insured Moody's - "Aaa" S&P's - "AAA" Bidder William R. Hough & Co., Manager SunTrust Capital Markets. Stephens, Inc,. Nike Securities. Member: Raymond James & Associates, Inc. Prudential Securities Incorporated, Manager Dean Witter SouthTrust Securities, Inc. * A.G. Edwards & Sons, Inc. * Bane One Capital Markets, Inc. * The Bankers Bank* . Edward Jones* NBC Capital Markets Group, Inc, * Wells Fargo* CIBC World Markets* Member: Kirlin Securities Morgan Keegan & Co., Inc" Manager SAMCO Capital Markets* First Union National Bank* . Stifel, Nicolaus & Company, Inc,* TABULATION OF BIDS Received July 22, 2002 On . $5,400,000 CITY OF LA PORTE, TEXAS Limited Tax Bonds. Series 2002 Maturities Rate 2006-2011 4.25% 2012-2013 4.00% 2014 4.10% 2015 4,20% 2016 4,30% 2017 4.40% 2018 4.50% 2019 4.60% 2020 4.70% . 2021 4.80% 20~2 4.85% 2023 4.90% 2024-2025 5.00% 2006-2008 5.00% 2009 4,375% 2010 3.65% 2011 3.75% 2012 385% 2013 4,00% 2014 4.10% 2015 4.20% 2016 4,30% 2017 4.40% 2018 4,50% 2019 4.60% 2020 4.70% 2021 4.80% 2022 4,85% 2023 4.90% 2024 4.95% 2025 5,00% 2006-2010 4.00% 2011 4.25% 2012 4.375% 2013 4.50% 2014 4.15% 2015 4.25% 2016 4.35% 2017 4.45% 2018 4,55% 2019 4.625% 2020 4,70% 2021 4.75% 2022 4,80% e Bond Buyer Index: 5.00% Effective Interest Cost Interest Rate GIC: $3,242,790,00 4.5596% Prem: 858.60 NIC: $3,241,931.40 GIC: $3,242,430.00 4.5603% Prem: 0,00 NIC: $3,242,430,00 GIC: $3,244,387.50 4,563133% Prem: 0.00 NIC: $3,244,387.50 e . Effective Bidder Maturities Rate Interest Cost Interest Rate 2023 4.85% 2024 4.90% 2025 5,00% FTN Financial Capital Markets 2006-2012 5.00% OlC: $3,250,890,00 4.572278% 2013 4.25% Prem: 0.00 2014-2015 4.20% NIC: $3,250,890.00 2016 4.30% 2017 4.40% 2018 4.50% .2019 4,60% 2020 4.70% 2021 4.75% 20i2-2025 4.50% First Southwest Company 2006 4.95% OlC: $3,257,865,00 4,582089% 2007 4.05% Prem: 0,00 2008-2012 4.00% NIC: $3,257,865.00 2013 4.05% 2014 4.15% 2015 4,25% 2016 4,35% 2017 4.45% 2018 4.60% 2019 4.70% 2020 4,80% 2021 4.85% 2022 4.90% 2023 4.95% 2024-2025 5,00% Salomon Smith Barney, Manager 2006-2007 5.25% OlC: $3,267,607,50 4.595791 % UBS PainWebber* 2008 5,00% Prem: 0,00 RBC Dain Rauscher, Inc. * 2009-2013 4,00% NIC: $3,26~,607.50 2014 4.125% 2015 4.20% 2016 4,30% 2017 4.40% 2018 4,50% 2019 4,60% 2020 4.70% 2021 4.80% 2022 4,85% 2023-2025 5.00% Legg Mason Wood Walker, Inc. 2006-2008 4.00% OlC: $3,304,710.00 4.642876% 2009-2012 4.25% Prem: 3,625.10 2013-2014 4.50% NIC: $3,301,084.90 2015 4.30% 2016 4.40% 2017 4.50% 2018 4,60% 2019 4.70% 2020 4.80% 2021-2022 4,90% 2023-2025 5.00% . * Co-Manager . e OFFICIAL BID FORM 3~'{:)~ Mayor and City Council City of La Porte 604 W. Fairmont Parkway La Porte, TX 77572 Mayor and City Council Me~bers: ~&I C- ~1~5~rQ This bid is submitted under the bidding conditions of your Official Notice of Sale dated July 8, 2002, of $5,400,000 City of La Porte, Texas, Limited Tax Bonds, Series 2002, the terms and conditions of which Official Notice of Sale are made a part hereof. Ie lIy i s~d Bonds, as described in said Official Notice of Sale, we will pay you par and accrued interest, plus a cash premium U for Bonds maturing and bearing interest as follows: Interest Interest Maturity Rate Maturity Rate 2006 ~ 2016 % 2007 % 2017 % 2008 % 2018 % 2009 % 2019 % 2010 % 2020 % 2011 % 2021 % 2012 % 2022 % 2013 % 2023 % 2014 % 2024 S.rYJ % 2015 % 2025 ~~OO % - GROSS INTEREST COST $ -::H ~4'Q 'l-~ll. 00 LESS PREMIUM $ NET INTEREST COST $ EFFECTIVE INTEREST RATE ~% The Initial Bond shall be registered in the name of (syndicate manager). We will advise JPMorgan Chase ,a as, Texas, the Registrar, 0 regtstration s ns at least five business days prior to the date set for Initial Delivery. We will not ask the Registrar to accept any registration ins ctions after the five day period. The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the Issue Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale. Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of -F(-o d- ' in the amount of $1 08,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set forth in the Official Notice of Sale. e. . We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, as we have made such investigations as we deem necessary relating to the City and the investment quality of the Bonds, ~. Respectfully submitted, ':.J~fj~~;~.:J- ACCEPTANCE The foregoing bid is hereby in all things accepted by the City p La Porte, Te A~()1JitL .JIPi/ . I .u City Sec ACCUMULATED BOND YEARS $5,400,000 City of La Porte, Texas Limited Tax Bonds, Series 2002 Dated: July 15,2002 Maturity: March 15 Year of Amount Accumulated Maturity of Bonds Bond Years Bond Years 2006 $270,000 3.6666 990.0000 2007 270,000 4.6666 2,250.0000 2008 270,000 5.6666 3,780.0000 2009 270,000 6.6666 5,580.0000 2010 270,000 7.6666 7,650.0000 2011 270,000 8.6666 9,990.0000 2012 270,000 9,6666 12,600.0000 2013 270,000 10.6666 15,480.0000 2014 270,000 11.6666 18,630.0000 2015 270,000 12.6666 22,050.0000 2016 270,000 13.6666 25,740.0000 2017 270,000 14.6666 29,700.0000 2018 270,000 15.6666 33,930.0000 2019 270,000 16.6666 38,430.0000 2020 270,000 17.6666 43,200.0000 2021 270,000 18.6666 48,240.0000 2022 270,000 19.6666 53,550.0000 2023 270,000 20.6666 59,130.0000 2024 270,000 21.6666 64,980.0000 2025 270,000 22.6666 71,100.0000 Average Maturity........... 13.1 67Years . e OFFICIAL BID FORM Mayor and City Council City of La Porte 604 W. Fairmont Parkway La Porte, TX 77572 Mayor and City Council Members: ~:t.t~~ JI Fc;,\G l"q(j~ This bid is submitted under the bidding conditions of your Official Notice of Sale dated July S, 2002, of $5,400,000 City of La Porte, Texas, Limited Tax Bonds, Series 2002, the terms and conditions of which Official Notice of Sale are made a part hereof. For said legally issued Bonds, as described in said Official Notice of Sale, we will pay you par and accrued interest, plus a cash premium of $ -- 0 -' for Bonds maturing and bearing interest as follows: Maturity Interest Rate 2006 2007 200S 2009 2010 2011 2012 2013 2014 2015 % % % % % % % % % % GROSS INTEREST COST LESS PREMIUM NET INTEREST COST EFFECTIVE INTEREST RATE Maturitv Interest Rate % % % % % % % % % % 2016 2017 201S 2019 2020 2021 2022 2023 2024 2025 The Initi.\ Bond ...." be ....,..red in Ib, nnme of ~ (syndicate manager). We will advise JPMorgan Chase B , Da as, exas, the R istrar, our registration instructions at least five usiness days prior to the date set for Initial Delivery. We will not ask the Registrar to accept any registration instructions after the five day period. $ $ $ =9.~ 5.(JO 3 ~.J 43t/ ~ en .~ 3/~\~~ t.\.~D3.. The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the Issue Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale. Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of rros-l- . in the amount of $1 OS,OOO which represents our Good Faith Deposit and which is submitted in accordance with the terms as set forth in the Official Notice of Sale. e . We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, as we have made such investigations as we deem necessary relating to the City and the investment quality of the Bonds. Respectfully submitted, Syndicate: PrGlldential-SecUfib8S InCOrDOraa BY'~W.~ Pho :' ACCEPTANCE CLAUSE The foregoing bid is hereby in all things accepted by the City of La Porte, Texas, this the _ day of July, 2002. A TTEST~ City Secretary Mayor ACCUMULATED BOND YEARS $5,400,000 City of La Porte, Texas Limited Tax Bonds, Series 2002 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Maturity: March 15 Amount Accumulated of Bonds Bond Years Bond Years $270,000 3.6666 990.0000 270,000 4.6666 2,250.0000 270,000 5.6666 3,780.0000 270,000 6.6666 5,580.0000 270,000 7.6666 7,650.0000 270,000 8.6666 9,990.0000 270,000 9.6666 12,600.0000 270,000 10.6666 15,480.0000 270,000 11.6666 18,630.0000 270,000 12.6666 22,050.0000 270,000 13.6666 25,740.0000 270,000 14.6666 29,700.0000 270,000 15.6666 33,930.0000 270,000 16.6666 38,430.0000 270,000 17.6666 43,200.0000 270,000 18.6666 48,240.0000 270,000 19.6666 53,550.0000 270,000 20.6666 59,130.0000 270,000 21.6666 64,980.0000 270,000 22.6666 71,100.0000 Dated: July 15, 2002 Year of Maturity Average Maturity. .. . .. .. ... 13.l67Years .-_. e OFFICIAL BID FORM Mayor and City Council City ofLa Pone 604 W. Fairmont Parkway La Porte, TX 77572 ;:::2J I~ f/~~ I)t:() Mayor and City Council Members: This bid is submitted under the bidding conditions of your Official Notice of Sale dated July 8, 2002, of 55,400.000 City of La Porte, Texas, Limited Tax' Bonds, Series 2002, the terms and conditions of which Official Notice of Sale are made a part hereof. For said ~y issued Bonds, as described in said Official Notice of Sale, we will pay you par and accrued interest, plus a cash premium on for Bonds maturing and bearing interest as follows: Interest Interest Maturity ~ MI1w:i!:l Rate 2006 t.)(')O % 2016 % 2007 -l % 2017 % 2008 % 2018 % 2009 % 2019 0/0 2010 % 2020 % 2011 ~~r~ % 2021 % 2012 % 2022 % 2013 1;~ % 2023 % 2014 % 2024 % 2015 1-z..< % 2025 .;-:- U) % GROSS INTEREST COST S ~ 2.q~ ?~7.S7J LESS PREMIUM :i ~~ ?R7,5,f') NET INTEREST COST EFFECTIVE INTEREST RATE ~/")2- % Lf.slt, ~ 1 ~"$ The Initial Bond shall be registered in the name of fV\o r i5i{..... ....... K".. p~.. ~ <i- Co r",," c- (syndicate manager). We will advise JpMorgan Chase Bank, las, Texas, the egistrar, our regisir{.tion instructions at least five business days prior to the date set for Initial Delivery. We will not ask the Registrar to accept any registration instructions after the five day period. The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the Issue Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale. Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of ~o s + IS "".... lc:- . in the amount of S 1 08,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set forth in the Official Notice of Sale, e -1=- We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, as we have made such investigations as we deem necessary relating to the City and the invCS1mcnt quality of the Bonds. Syndicate: _~A1Y\ c.o 1="; r... + u'^,"'.... S~~.h. \ 10.'. ,. I....... Respectfully submitted., r'lc. ~"'".... t<e.~.,..'^ +- C... :r::....~ By:{ ~....)L 1A.J.t.~___ A liP Phone: gDD - 3{'7 - 4 S ~ I The foregoing bid is hereby in all things accepted by the City of La Porte, Texas, this the _ day of July, 2002. ACCEPTANCE CLAUSE A TrEST. Mayor City Secretary Dated: July 15,2002 Year of MmYtitx 2006 2007 .2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ACCUMULATED BOND YEARS 55,400,000 City of La Porte, Texas Limited Tax Bonds, Series 2002 Maturity: March 1 S Amount Accumulated of Bonds Bond Years Bond Years 5270,000 3.6666 990,0000 270,000 4.6666 2,250.0000 270,000 5,6666 3,780.??oo 270,000 6.6666 5,580.??oo 270,000 7.6666 7,650.??oo 270,000 8.6666 9,990.??oo 270,000 9.6666 12,600.0000 270,000 10.6666 \5,480.??oo 270,000 11.6666 18,630.??oo 270,000 12.6666 22,050.0000 270,000 13.6666 25,740.??oo 270,000 14.6666 29,700.??oo 270,000 15.6666 33,930.0000 270,000 16,6666 38,430.??oo 270,000 17.6666 43,200,0000 270,000 18,6666 48,240.0000 270,000 19.6666 53.550.0000 270,000 20.6666 59,130.??oo 270,000 21.6666 64,980,0000 270,000 22,6666 71,100.0000 Average Maturity............ 13.167Years . OFFICIAL BID FORM Mayor and City Council City of La Porte 604 W. Fainnont Parkway La Porte, TX 77572 Mayor and City Council Members: e ~: .s:t{~ j ref 1L- l~,~O() This bid is submitted under the bidding conditions of your Official Notice of Sale dated 1uly 8, 2002, of $5,400,000 City of La Porte, Texas, Limited Tax Bonds, Series 2002, the tenns and conditions of which Official Notice of Sale are made a part hereof. For said legally issued Bonds, as described in said Official Notice of Sale, we will pay you par and accrued interest, plus a cash premium of $ -0 - for Bonds maturing and bearing interest as follows: Maturity Interest Rate 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ~'oo % % % % % % % % % % GROSS INTEREST COST LESS PREMIUM NET INTEREST COST EFFECfIVE INTEREST RATE Maturitv 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $ $ $ Interest Rate % % % % % % % % % % The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the Issue Price Certificate, in the fonn enclosed as Exhibit A to the Official Notice of Sale. Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of , in the amount of $108,000 which represents our Good Faith Deposit and which is submitted in accordance with the tenns as set forth in the Official Notice of Sale. e . We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, as we have made such investigations as we deem necessary relating to the City and the investment quality of the Bonds. Syndicate: 11/0 J'1 t!- a i S..Fast, Vice Presldent B~ FTN Financial Capital Markets Phone: (800) 307-5405 ACCEPTANCE CLAUSE The foregoing bid is hereby in all things accepted by the City of La Porte, Texas, this the _ day of July, 2002. A TIEST~ City Secretary Mayor ACCUMULATED BOND YEARS $5,400,000 City of La Porte, Texas Limited Tax Bonds, Series 2002 2006 2007 2008 2009. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Maturity: March 15 Amount Accumulated of Bonds Bond Years Bond Years $270,000 3.6666 990.0000 270,000 4.6666 2,250.0000 270,000 5.6666 3,780.0000 270,000 6.666() 5,580.0000 270,000 7.6666 7,650.0000 2]0,000 8.6666 9,990.0000 270,000 9.6666 12,600.0000 270,000 10.6666 15,480.0000 270,000 11.6666 18,630.0000 270,000 12.6666 22,050.0000 270,000 13.6666 25,740.0000 270,000 14.6666 29,700.0000 270,000 15.6666 33,930.0000 270,000 16.6666 38,430.0000 270,000 17.6666 43,200.0000 270,000 18.6666 48,240.0000 270,000 19.6666 53,550.0000 270,000 20.6666 59,130.0000 270,000 21.6666 64,980.0000 270,000 22.6666 71,100.0000 Dated: July 15,2002 Year of Maturitv Average Maturity........... 13.167Years . e OFFICIAL BID FORM . Mayor and City Council City of La Porte 604 W. Fainnont Parkway La Porte, TX 77572 (& L0 j I ttl ~1Jl) Mayor and City Council Members: 'Ibis bid is submitted under the bidding conditions of your Official Notice of Sale dated July 8, 2002, of S5,4OO,Ooo City of La Porte, Texas, Limited Tax Bonds, Series 2002. the tenns and conditions of which Official Notice of Sale are made a part hereof. For said ~ issued Bonds, as described in said Official Notice of Sale, we will pay yoil par and accrued interest, plus a cash premium of S ' for Bonds maturing and bearing interest as follows: . . Interest Interest Maturity Rate Maturitv Rate 2006 ~~ % 2016 % 2007 % 2017 % 2008 ~OLj % 2018 % 2009 % 2019 % 2010 % 2020 % 2011 % 2021 % 2012 % 2022 ~:~%. % 2013 % 2023 % 2014 % 2024 ~b!J % 2015 % 2025 --s::th % GROSS INTEREST COST S ~?-~Z g6.~ t&1J LESS PREMIUM S .0- NET INTEREST COST S~j~~~~ EFFECTIVE INTEREST RATE % Ll. S9;2..0BQ The 1nitial Bond shall be registered in the name of Fi rst Southwest Company' (syndicate manager). We will advise JPMorgan Chase Bank, Dallas, Texas, the Registrar, oui' registration insb11ctions at least five business days prior to the date set for Initial Delivery. We will not ask the Registrar to accept any registration instructions after the five day period. The undersigned agrees to complete, execute, and deliver to the City, on the next business'day after award of the Bonds, the Issue Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale. Attached hereto orsubmitted separately isa Bank Certified or Bank Cashier's Check of Frost Na ti ana 1 Bank. Austi n , in the amount of S I 08,000 which represents our Good Faith DePosit and which is submitted in accordance with the tenns as set forth in the Official Notice of Sale. e . We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, as we have made such investigations as we deem necessary relating to the City and the investment quality of the Bonds.. . . Syndicate: #/iIhlG; Respectfully submitted, First Southwest Comeany ~ter B. Stare Sr. P By: :..,Ie ~ Phone: 214-.953-4040 '.. ~ .. .-':-.". . .' '. ;' ACCEPTANCE CLAUSE? ,.. The foregoing bid is hereby in all things accepted by the City of La Porte,-Texas, this the _ day of July, 2002. ATIEST~ Mayor City Secretary . Dated: July 15,2.002 Year of Maturitv 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016. 2017 2018 2019 2020 2021 2022 2023 2024 2025 ACCUMULATED BOND YEARS $5,400,000 City of La Porte, Texas. :: Limited Tax Bonds, Series 2002 Amount of Bonds Bond Years $270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 3.6666 4.6666 5.6666 6.6666 7.6666 8.6666 9.6666 10.6666 11.6666 12.6666 13.6666 14.6666 15.6666 16.6666 17.6666 18.6666 19.6666 20.6666 21.6666 22.6666 Average Maturity........... 13.l67Years Maturity: March 15 Accumulated Bond Years . 990.0000 2,250.0000 3,780.0000 5,580.0000 7,650.0000 9,990.0000 12,600.0000 15,480.0000 18,630.0000 22,050.0000 25,740.0000 29,700.0000 33,930,0000 38,430.0000 43,200.0000 48,240.0000 53,550.0000 59,130.0000 64,980.0000 . 71,100.0000 . . . e OFFICIAL BID FORM s~()~ p~ Mayor and City Council City of La Porte 604 W. Fainnont Parkway La Porte, TX 77572 Mayor and City Council Members: This bid is submitted under the bidding conditions of your Official Notice of Sale dated July 8, 2002, of $5,400,000 City of La Porte, Texas, Limited Tax Bonds, Series 2002, the terms and conditions of which Official Notice of Sale are made a part hereof. For sai~IlY issued Bonds, as described in said Official Notice of Sale, we will pay you par and accrued interest, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Interest Interest Maturity Rate Maturitv Rate 2006 ."r.? < % 2016 % 2007 .J, % 2017 % 2008 :<;: L)/J % 2018 % 2009 ~ t)L) % 2019 % 2010 % 2020 % 2011 % 2021 % 2012 % 2022 % 2013 % 2023 ~. 0(7 % 2014 ~ 12-5 % 2024 ---w % 2015 ~2D % 2025 % GROSS INTEREST COST $ 5,:l.b'l, ~O 1. SG> LESS PREMIUM $ -1i1- NET INTEREST COST $~.1~1.S~ EFFECTNE INTEREST RATE The Initial Bond shall be registered in the name of (syndicate manager). We will advise JPMorgan Chase Bank, 0 I as, Texas, e eglstrar, our registration instructions a least fiv usiness days prior to the date set for Initial Delivery. We will not ask *e Registrar to accept any registration instructions after the five day period. The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the Issue Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale. Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of , in the amount of $108,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set forth in the Official Notice of Sale. e . We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, as we have made such investigations as we deem necessary relating to the City and the investment quality of the Bonds. Syndicate: v8:S Pi4I. /l4~ /)~/" ....~/ By: ~~ tJJ..~ Phone: t. ''1 -8 71 ~ r:12-J' ACCEPTANCE CLAUSE The foregoing bid is hereby in all things accepted by the City of La Porte, Texas, this the _ day of July, 2002. A TIEST~ City Secretary Mayor 'ACCUMULATED BOND YEARS $5,400,000 City of La Porte, Texas Limited Tax Bonds, Series 2002 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Maturity: March 15 Amount Accumulated of Bonds Bond Years Bond Years $270,000 3.6666 990.0000 270,000 4.6666 2,250.0000 270,000 5.6666 3,780.0000 270,000 6.6666 5,580.0000 270,000 7.6666 7,650.0000 270,000 8.6666 9,990.0000 . 270,000 9.6666 . 12,600.0000 270,000 10,6666 15,480.0000 270,000 11.6666 18,630.0000 270,000 12.6666 22,050.0000 270,000 13.6666' 25,740.0000 270,000 14,6666 29,700.0000 270,000 15.6666 33,930.0000 270,000 16.6666 38,430.0000 270,000 17.6666 43,200.0000 270,000 18,6666 48,240.0000 270,000 19.6666 53,550.0000 270,000 20.6666 59,130.0000 270,000 21.6666 64,980.0000 270,000 22.6666 71,100.0000 Dated: July 15, 2002 Year of Maturitv Average Maturity........... 13.167Years Jul-22-2002 03:50pm From-LEGG MASON 1IIIJANNE MURAKAMI +612-337-3888 ~ T-213 P.002 F-3BB OFFICIAL 811) FORM Mayor and City COLlncil City of l...a Porte 604 W. Fairmant Parkway La Pone, TX 77572 Mayor and City CoUJIcil Members; This bid is submitted under the bidding conditions of your Official Notice of Sale dated 1uIy 8, 2002. of 55,400,000 City of La Porte, Texas, Limited Tax Bonds, Series 2002. the terms and conditlOl'\s ofwhicb Official NOlicc of Sale arc made a part hereof. For said Icgally issued Bonds, as described in slid Official Notice of Sale" we will pay you par and accrued intc:n:sr. plus a cash premium ofS 3,'"15"". 1 0 for Bonds maturing and beating interesl as follOW$; . . lntcre.st Interest Maturity Rate Manm ~ 2006 ~t'D % 2016 .tf..lf"O % 2007 ~...O() % 2017 '-I-S() % 2008 'l-.IJD % 2018 ~€'o % 2009 ~2..S:- % 2019 i.f.70 % 2010 11.2$ % 2020 II.. g () % 2011 ~pL S- % 2021 ~~ % 2012 9:.2~ % 2022 If_ 90 % 2013 If..$o % 2023 S.Ot"J % 2Oi4 #~SO % 2024 5".00 % 2015 ~3o % 2025 S:OO % GROSS lNTBR.EST COST $ .313~"', 710 ,DO LESS PREMJUM $ :311:/1-~. '0 ~ NET INTEReST COST S '3,301 ,DS4~"o EFFECTIVE INTEREST RATE tJ, 1 ....,~ % 4.~~:L9~ (p The Initial Bond Bhatl be registc:red In the name of l..L.:t~ .AA..a.e>"'- /.J..J. J:. ~ ~,- (syndicate manager), We will advise JPMorgan Chase Banlt! alias. Texas, the ResiSD'ar, Our rcsistration instructions at least five business days prior to the date Set for Initial Delivery. Wc' will no~ ask the RegistnlJ' to accept any reglstraticm instrueriDDs after the five day period, The undersJgnecl 8JT1l8S to complete, r:xecute, and deliver to the CIl)', on the next business clay after award of the Bonds, tho Issue Price Certfficarc, in the fOlDl enclosed as Bxhlbit A to the Official Notice of SaJe. Aaacbcd hereto or submitted sC)Jaralely is a Bank Certified or Baok .Cashier's Check of ~6~+ "Bc...""'''", /tJfJc . in the an'lOUIlt ofS10B,OOO which repracnbl OLll' Good .Faith Deposit and which is submitted in accordaDce with the terms as set forth in d1c OffIcial Notice of Sale. 7 Jul-22-2002 03:60pm FrDm-LEGG MASON I SUZANNE MURAKAMI . . e +S12-337-3a~iIIIl T-213 P.003 F-388 We have read In detalllhe Official NOlice of Sale and tho Official StBtemsnt re1atinS to tho Bond.. as we have made such invastlpdons as we deem DCCCSS8I)' relating to the City and the inveslmont quality ofdle Bonds, ReSpectfully submitted, Syndicate: ~j' 1JW.Sov... lJ..'-od W~Jke.r ACCEPTANCE CLAUSE The fol"Bgoing bid is hereby in all tbing$ ac:ccptcd by the City of La Pone. Texas. this the _ day of July. 2002. ATI'ESTl Mayor City Secretary ACCUMULATEq BOND YEARS $5.400.000 City of La Pol'te, Texas . Limited Tax Boncls.. Series 2002 Dated: July IS. 2002 Year of Maturity Amount of Bonds Bond Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $270.000 270,000 270,000 270,000 270,000 270.000 270,000 270,000 270.000 270,000 270.000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270.000 3.6666 4.6666 5.6666 6.6666 7.6666 8.6666 9.6666 10.6666 11.6666 12,6666 . 13.6666 14.6666 15.6666 16.6666 17.6666 18.6666 19.6666 20,6666 21.6666 22.6666 Average Malutl1:y........... 13.167Years 8 MalUrity: March 1S Accumulated Bond Years 990.0000 2.250.0000 3.780.0000 5,580-0000 7.650.0000 9,990.0000 12.600.0000 15,480.0000 18.630.0000 22,050.0000 25,740.0000 29.700.0000 33,930.0000 38.430.0000 43,200,0000 48,240.0000 53,550.0000 59,130.0000 64,980,0000 71,100_0000 DATE 31151 3 9/151 3 3/151 4 9/151 4 3/151 5 9/151 5 3/151 6 9/151 6 3/151 7 9/151 7 31151 8 9/151 8 3/151 9 9/151 9 3/15/10 9115110 3115/11 9115/11 3/15/12 9115112 3/15/13 9/15/13 3/15114 9115/14 3115/15 9/15/15 3/15/16 9/15/16 3/15/17 9115117 3/15/18 9/15/18 3115119 9/15/19 3/15/20 9115/2D 3/15121 9/15/21 3/15/22 9/15/22 3/15123 9/15123 3/15/24 9/15/24 3/15125 9/15125 ACCRUED DATED 7/151 2 BOND YEARS AVERAGE COUPON AVERAGE LI FE N I C % TIC % . $5,400,000 CITY OF LA PORTE, TEXAS LIMITED TAX BONDS, SERIES 2002 --------------------- --------------------- DEBT SERVICE SCHEDULE --------------------- --------------------- PRINCIPAL COUPON e INTEREST PERIOD TOTAL FISCAL TOTAL 159,930.00 119,947.50 119,947.50 119,947.50 119,947.50 119,947.50 119,947.50 114,210.00 114,210.00 108,472.50 108,472.50 102,735.00 102,735.00 96,997.50 96,997.50 91,260.00 91,260.00 85,522.50 85,522.50 80,122.50 80,122.50 74,722.50 74,722.50 69,187.50 69,187.50 63,517.50 63,517.50 57,712.50 57,712.50 51,772.50 51,772.50 45,697.50 45,697.50 39,487.50 39,487.50 33,142.50 33,142.50 26,662.50 26,662.50 20,115.00 20,115.00 13,500.00 13,500.00 6,750.00 6,750.00 3,242,790.00 27,987.75 3,214,802.25 PREPARED BY MORONEY, BEISSNER & CO., INC. 270,000.00 4.250000 270,000.00 4.250000 270,000.00 4.250000 270,000.00 4.250000 270,000.00 4.250000 270,000.00 4.250000 270,000.00 4.000000 270,000.00 4.000000 270,000.00 4.100000 270,000.00 4.200000 270,000.00 4.300000 270,000.00 4.400000 270,000.00 4.500000 270,000.00 4.600000 270,000.00 4.700000 270,000.QO 4.800000 270,000.00 4.850000 270,000.00 4.900000 270,000.00 5.000000 270,000.00 5.000000 5,400,000.00 5,400,000.00 159,930.00 119,947.50 119,947.50 119,947.50 119,947.50 119,947.50 389,947.50 114,210.00 384,210.00 108,472.50 378,472.50 102,735.00 372,735.00 96,997.50 366,997.50 91,260.00 361,260.00 85,522.50 355,522.50 80,122.50 350,122.50 74,722.50 344,722.50 69,187.50 339,187.50 63,517.50 333,517.50 57,712.50 327,712.50 51,772.50 321,772.50 45,697.50 315,697.50 39,487.50 309,487.50 33,142.50 303,142.50 26,662.50 296,662.50 20,115.00 290,115.00 13,500.00 283,500.00 6,750.00 276,750.00 8,642,790.00 27,987.75 8,614,802.25 ============== ============== ============== WITH DELIVERY OF 8/271 2 71,100.000 4.561 13.167 4.560886 % USING 100.0000000 4.528851 % USING 100.0000000 279,877.50 239,895.00 239,895.00 504,157.50 492,682.50 481,207.50 469,732.50 458,257.50 446,782.50 435,645.00 424,845.00 413,910.00 402,705.00 391,230.00 379,485.00 367,470.00 355,185.00 342,630.00 329,805.00 316,m.50 303,615.00 290,250.00 276,750.00 . - CITY OF LA PORTE, TEXAS DEBT SERVICE REQUIREMENT SCHEDULE =========================================== ADJUSTED TO INCLUDE $5,400,000 LIMITED TAX BONDS, SERIES 2002 FISCAL $5,400,000 LIMITED TAX BONDS, SERIES 2002 SALES TAX NEW TOTAL YEAR PRESENT ---------------------------------------.- SUPPORTED DEBT LESS SALES TAX END 9/30 TOTAL PRINCIPAL INTEREST TOTAL NEW TOTAL INCLUDED IN TOTAL SUPPORTED DEBT ------------------------------------------------------------------------------------------------------------------ 2002 $2,319,535 $2,319,535 $311,550 $2,007,985 2003 2,134,168 $279,878 $279,878 2,414,046 301,050 2,112,996 2004 1,949,939 239,895 239,895 2,189,834 290,550 1,899,284 2005 1,711,690 239,895 239,895 1,951,585 280,050 1,671,535 2006 754,800 $270,000 234,158 504,158 1,258,958 269,550 989,408 2007 725,988 270,000 222,683 492,683 1,218,671 259,050 959,621 2008 697,956 270,000 211,208 481,208 1,179,164 248,550 930,614 2009 671,175 270,000 199,733 469,733 1,140,908 238,050 902,858 2010 647,563 270,000 188,258 458,258 1,105,821 228,900 876,921 2011 651,150 270,000 176,783 446,783 1,097,933 221,250 876,683 2012 629,150 270,000 165,645 435,645 1,064,795 213,750 851,045 2013 606,975 270,000 154,845 424,845 1,031,820 206,250 825,570 2014 584,953 270,000 143,910 413,910 998,863 198,750 800,113 2015 563,281 270,000 132,705 402,705 965,986 191,250 774,736 2016 541,719 270,000 121,230 391,230 932,949 183,750 749,199 2017 520,156 .270,000 109,485 379,485 899,641 176,250 723,391 2018 498,594 270,000 97,470 367,470 866,064 168,750 697,314 2019 477,031 270,000 85,185 355,185 832,216 161,250 670,966 2020 333,125 270,000 72,630 342,630 675,755 153,750 522,005 2021 270,000 59,805 329,805 329,805 329,805 2022 270,000 46,778 316,778 316,778 316,778 2023 270,000 33,615 303,615 303,615 303,615 2024 270,000 20,250 290,250 290,250 290,250 2025 270,000 6,750 276,750 276,750 276,750 ------..--..-- --------.-. ---------..-- ----------- ------------ ----------- ---......--- $17,018,948 $5,400,000 $3,242,790 $8,642,790 $25,661,738 $4,302,300 $21,359,438 PREPARED BY MORONEY, BEISSNER & CO., INC. DATE: 07/23/2002 TIME: 10:08:08 FILE: LP2002