HomeMy WebLinkAboutMinutes City Council - 06/08/1995 - SpecialI HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the
Special Council Meeting of the City of Corpus Christi of June 8, 1995, which were approved by the
City Council on June 13, 1995.
WITNESSETH MY HAND AND SEAL, this 13th day of June, 1995.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
June 8, 1995
11 a.m.
PRESENT
Mayor Mary Rhodes
Mayor Pro Tem Betty Jean Longoria
Council Members:
Dr. Jack Best
Betty Black
Melody Cooper*
Tony Heldenfels
John Longoria
Edward Martin
ABSENT
Dr. David McNichols
City Manager Juan Garza
City Attorney James R. Bray, Jr.
City Secretary Armando Chapa
Mayor Rhodes called the meeting to order in the Council Chambers of City Hall.
City Secretary Chapa called the roll and verified that the necessary quorum of the Council and
the required charter officers were present to conduct the meeting.
Mayor Rhodes commended the staff for their efforts during the recent bond hearings in New
York City.
*Council Member Cooper arrived at the meeting at 11:05 a.m.
City Manager Garza said the item on the agenda regarded a proposal to refund some existing
general obligation bonds of the city. He said at the time the bonds were priced, the city's yield would
be $923,442 in savings.
Mr. Garza noted that previously, Council Member Martin had asked if it would be possible
to issue the same amount of refunding bonds as the amount being refunded. An analysis showed that
that option would require an initial cash contribution, which would not be financially feasible.
Mr. Garza then referred to a booklet containing the final pricing information, and pointed out
that the financing team consists of: McCall Parkhurst & Horton, bond counsel; Texas Commerce
Bank, Lehman Brothers, and Estrada Hlnojosa & Co. Inc., as underwriters; and Fulbright & Jaworski,
Minutes
Special Council Meeting
June 8, 1995
Page 2
underwriters' counsel. The city's financial advisor is Mr. Jim Seal with M.E. Allison & Co. Inc.
Citing data provided in the booklet, Mr. Garza said that if the city maintained its current debt
service schedule (until 2015), the total principal and interest payments would be $231,446,877. The
total principal and interest payments for the bonds being refunded would be $52,731,939. The total
payments of the new bonds being issued would be $51,808,497, for a new grand total of
$230,523,435. That would result in a savings of $923,442.
Mr. Garza pointed out that most of the savings on the refunded bonds would be realized
during the first two years. He also noted that certificates of obligation involved in the refunding
proposal were issued for the Lexington Museum on the Bay and Corpus Christi Marina. In addition,
Mr. Garza said these refunding bonds are insured, which means that they are rated AAA; the net
savings to the city by insuring the bonds is $125,000.
The City Manager also referred to a comparison of Corpus Christi's proposed bond refunding
with recent bond market activity involving other Texas cities (Austin, League City, and Grapevine).
He said the city is refunding $29,505,000, and to defease those bonds, the city is issuing $33,000,000
of new bonds. Mr. Garza said while the principal is higher on the new bonds, the overall payments
that will be made are $923,442 lower. He said that constitutes a real savings to the city and he
recommended that the Council approve this bond sale.
Mayor Rhodes called for comments from the audience, and there were none.
Responding to questions from Council Member Martin, Mr. Garza said the total amount of
principal and interest that will be paid under the refunded bond program is less than the total amount
of principal and interest currently being paid. Also, the refunded bonds would have the same average
life as the current bonds, and he reiterated that the city's savings are being realized during the bonds'
first two years. And during every single year under the refunded bonds there is a savings. Mr. Martin
echoed Mr. Garza's comments about how this proposal saves the city money.
Mr. Martin also remarked about the insurance company, and Mr. Garza said the choice of the
insurance company is based on the bid. Mr. Martin asked about the $629,855 in savings that would
be realized during FY 95-96. Mr. Garza said that amount has been reflected in the proposed debt
service budget for FY 95-96.
In response to Council Member Best, Mr. Garza said due to different laws and regulations
that apply to different bonds (such as certificates of obligation), it would not be feasible to try to
refinance all of the city's outstanding debt.
passed:
City Secretary Chapa polled the Council for their votes and the following ordinances were
Minutes
Special Council Meeting
June 8, 1995
Page 3
ORDINANCE NO. 022246
Ordinance providing for the issuance of General Improvement Refunding Bonds, Series 1995,
of the City of Corpus Christi, Texas, and providing for the levy, assessment and collection of
a tax sufficient to pay the interest on said bonds and to create a sinking fund for the
redemption thereof at maturity; repealing all ordinances in conflict herewith; declaring an
emergency; and ordaining other matters related thereto.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye";
McNichols absent.
ORDINANCE NO. 022247
Ordinance providing for the issuance of General Improvement Refunding Bonds, Series 1995-
A, of the City of Corpus Christi, Texas, and providing for the levy, assessment and collection
of a tax sufficient to pay the interest on said bonds and to create a sinking fund for the
redemption thereof at maturity; repealing all ordinances in conflict herewith; declaring an
emergency; and ordaining other matters related thereto.
An emergency was declared and the foregoing ordinance passed by the following vote:
Rhodes, Best, Black, Cooper, Heldenfels, B. Longoria, J. Longoria, and Martin voting "Aye";
McNichols absent.
There being no further business to come before the Council, Mayor Rhodes declared the
Council meeting adjourned at 11:20 a.m. on June 8, 1995.
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