HomeMy WebLinkAboutORD 06-075 ORDINANCE NO. 06-075
NO. 4
ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT,
TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006,
AUTHORIZING THE REFUNDING OF CERTAIN BONDS AND OBLIGATIONS AND
THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT AND THE
SUBSCRIPTION FOR AND PURCHASE OF CERTAIN ESCROWED SECURITES; AND
CONTAINING OTHER MATTERS RELATED THERETO
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
THE CITY OF BEAUMONT §
WHEREAS, The City of Beaumont, Texas (the "City") has heretofore issued its City of
Beaumont, Texas, Combination Tax & Revenue Certificates of Obligation, Series 1996, its City of
Beaumont, Texas, Refunding Bonds, Series 1996, its City of Beaumont, Texas, Combination Tax
& Revenue Certificates of Obligation, Series 1998, and its City of Beaumont, Texas, Certificates of
Obligation, Series 1999 (collectively the "Refunded Obligations"), and now desires to refund
certain maturities of the Refunded Obligations in advance of their maturities in order to provide a
savings in debt service; and
WHEREAS, Chapter 1207, Texas Government Code, as amended (formerly Article 717k of
Vernon's Annotated Texas Civil Statutes, as amended), authorizes the City to issue refunding
bonds for the purpose of refunding the Refunded Obligations in advance of their maturities, and to
accomplish such refunding by depositing directly with any paying agent for the Refunded
Obligations the proceeds of such refunding bonds,together with other available funds, in an amount
sufficient to provide for the payment or redemption of the Refunded Obligations, and provides that
such deposit shall constitute the making of firm banking and financial arrangements for the
discharge and final payment or redemption of the Refunded Obligations; and
WHEREAS, the City now desires to call certain of the Refunded Obligations for
redemption prior to their maturities; and
WHEREAS, the City also desires to authorize the execution of an escrow agreement in
order to provide for the deposit of proceeds of the refunding bonds to pay and redeem the Refunded
Obligations; and
WHEREAS, upon issuance of the refunding bonds herein authorized and the deposit of
funds referred to above, the Refunded Obligations shall no longer be regarded as being outstanding,
except for the purpose of being paid pursuant to such deposits, and the pledges, liens, trusts and all
other covenants, provisions, terms and conditions of the ordinances authorizing the issuance of the
Refunded Obligations shall be discharged,terminated and defeased;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT:
1. Consideration. The matters and facts contained in the preamble to this Ordinance
are hereby found to be true and correct, and it is hereby found and determined that issuance of the
refunding bonds described herein will benefit the City by providing a savings in debt service equal
to a net present value of$733,020.38 and a gross debt service savings equal to $778,339.31, and
that such benefit is sufficient consideration for the refunding of the Refunded Obligations.
2. Definitions. Throughout this Ordinance, the following terms and expressions as
used herein shall have the meanings set forth below:
The term 'Bonds" or "Series 2006 Bonds" shall mean The City of Beaumont, Texas,
General Obligation Refunding Bonds, Series 2006 authorized in this Ordinance, unless the context
clearly indicates otherwise.
The term "City" shall mean The City of Beaumont, Texas.
The term "Code" shall mean the Internal Revenue Code of 1986, as amended.
The term "DTC" shall mean The Depository Trust Company of New York, New York, or
any successor securities depository.
The term 'DTC Participant" shall mean brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations on whose behalf DTC was created to hold
securities to facilitate the clearance and settlement of securities transactions among DTC
Participants.
The term "Insurer" shall mean Financial Security Assurance Inc., a New York domiciled
financial guaranty insurance company, or any successor thereto or assignee thereof, the issuer of
the Municipal Bond Guaranty Insurance Policy.
The term "Interest and Sinking Fund" shall mean the interest and sinking fund established
by the City pursuant to Section 18 of this Ordinance.
The term "Interest Payment Date", when used in connection with any Bond, shall mean
March 1, 2007, and each September 1 and March 1 thereafter until maturity of such Bond.
The term "Municipal Bond Guaranty Insurance Policy" shall mean the municipal bond
guaranty insurance policy issued by the Insurer insuring the payment when due of the principal of
and interest on the Bonds as provided therein.
The term "Ordinance" as used herein and in the Bonds shall mean this ordinance
authorizing the Bonds.
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The term "Owner" shall mean any person or entity who shall be the registered owner of any
outstanding Bonds.
The term "Paying Agent" shall mean the Registrar.
The term "Record Date" shall mean, for any Interest Payment Date, the fifteenth (15th)
calendar day of the month next preceding each Interest Payment Date.
The term "Refunded Obligations" shall mean: (a) the City's outstanding Combination Tax
& Revenue Certificates of Obligation, Series 1996, maturing on March 1 in the years 2009 through
2014 in the principal amounts of $605,000, $675,000, $725,000, $770,000, $820,000 and
$850,000, respectively; (b) the City's outstanding Refunding Bonds, Series 1996, maturing on
March 1 in the years 2009 through 2010 in the principal amounts of $780,000 and $785,000,
respectively; (c) the City's outstanding Combination Tax & Revenue Certificates of Obligation,
Series 1998, maturing on March 1, 2018 in the principal amount of$2,225,000; and (d) the City's
outstanding Certificates of Obligation, Series 1999, maturing on March 1 in the years 2011 through
2018 in the principal amounts of $1,375,000, $1,500,000, $1,600,000, $1,900,000, $2,000,000,
$2,100,000, $2,200,000 and $2,325,000, respectively.
The term "Register" shall mean the books of registration kept by the Registrar in which are
maintained the names and addresses of and the principal amounts registered to each Owner.
The term "Registrar" shall mean The Bank of New York Trust Company, N.A., Dallas,
Texas, and its successors in that capacity.
The term "Report" shall mean the report of Grant Thornton, L.L.P., Certified Public
Accountants, certifying as to the mathematical accuracy of the program designed by RBC Capital
Markets for the City with respect to the defeasance of the Refunded Obligations.
The term "SEC" shall mean the United States Securities and Exchange Commission, and its
successors.
The term "Underwriters" shall mean Coastal Securities, UBS Investmetn Bank, Estrada
Hinojosa& Co., Inc., First Southwest Company and Morgan Keegan & Co., Inc.
3. Authorization. The Bonds shall be issued in fully registered form, without coupons,
in the total authorized aggregate amount of TWENTY THREE MILLION NINE HUNDRED
SEVENTY-FIVE THOUSAND and NO/100 Dollars ($23,975,000.00) for the purpose of (i)
refunding certain of the outstanding Refunded Obligations, and (ii) paying all costs of issuance of
the Bonds.
4. Designation, Date and Interest Payment Date. The Bonds shall be designated as the
"THE CITY OF BEAUMONT, TEXAS, GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2006", and shall be dated December 1, 2006. The Bonds shall bear interest from the later
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of December 1, 2006, or the most recent Interest Payment Date to which interest has been paid or
duly provided for, calculated on the basis of a 360 day year of twelve 30 day months, with interest
payable on March 1, 2007, and semiannually thereafter on September 1 and March 1 of each year
until maturity or earlier redemption.
5. Initial Bonds, Numbers and Denominations. The Bonds shall be issued bearing the
numbers, in the principal amounts, and bearing interest at the rates set forth in the following
schedule, and may be transferred and exchanged as set out in this Ordinance. The Bonds shall
mature, in accordance with this Ordinance, on March 1 in each of the years and in the amounts set
out in such schedule. Bonds delivered in transfer of or in exchange for other Bonds shall be
numbered in order of their authentication by the Registrar, shall be in the denomination of$5,000
or integral multiples thereof, and shall mature on the same date and bear interest at the same rate as
the Bond or Bonds in lieu of which they are delivered.
Bond Year of Principal Interest
Number Maturi Amount Rate
R-1 2008 $ 60,000 4.00%
R-2 2009 $1,440,000 4.00%
R-3 2010 $1,505,000 4.00%
R-4 2011 $2,235,000 4.00%
R-5 2012 $2,385,000 4.00%
R-6 2013 $2,515,000 4.00%
R-7 2014 $2,830,000 4.00%
R-8 2015 $2,060,000 4.00%
R-9 2016 $2,150,000 4.00%
R-10 2017 $2,235,000 4.00%
R-11 2018 $4,560,000 4.00%
6. Optional Redemption. The City reserves the right, at its option, to redeem Bonds
having stated maturities on and after March 1, 2017, in whole or in part, on March 1, 2016, or any
date thereafter, at a price of par plus accrued interest to the date fixed for redemption. If less than
all of the Bonds are to be redeemed, the City shall determine the Bonds, or portions thereof, to be
redeemed.
Bonds may be redeemed only in integral multiples of $5,000. If a Bond subject to
redemption is in a denomination larger that $5,000, a portion of such Bond may be redeemed, but
only in integral multiples of $5,000. Upon surrender of any Bond for redemption in part, the
Registrar, in accordance with Section 12 hereof, shall authenticate and deliver in exchange therefor
a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the
unredeemed portion of the Bond so surrendered.
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Not less than thirty(30) days prior to a redemption date for the Bonds, the City shall cause a
notice of redemption to be sent by United States mail, first class, postage prepaid, to each Owner of
each Bond to be redeemed in whole or in part, at the address of the Owner appearing on the
Register at the close of business on the Business Day next preceding the date of the mailing of such
notice. Such notice shall state the redemption date, the redemption price, the place at which Bonds
are to be surrendered for payment and, if less than all the Bonds are to be redeemed, the numbers of
the Bonds or portions thereof to be redeemed. Any notice of redemption so mailed shall be
conclusively presumed to have been duly given whether or not the Owner receives such notice. By
the date fixed for redemption, due provision shall be made with the Registrar for payment of the
redemption price of the Bonds or portions thereof to be redeemed. When Bonds have been called
for redemption in whole or in part and due provision made to redeem the same as herein provided,
the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the
purpose of being paid solely from the funds so provided for redemption, and the rights of the
Owners to collect interest which would otherwise accrue after the redemption date on any Bond or
portion thereof called for redemption shall terminate on the date fixed for redemption.
7. Execution of Bonds; Seal. The Bonds shall be signed by the Mayor of the City and
countersigned by the City Clerk of the City, by their manual, lithographed, or facsimile signatures,
and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile
signatures on the Bonds shall have the same effect as if each of the Bonds had been signed
manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the
same effect as if the official seal of the City had been manually impressed upon each of the Bonds.
If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease
to be such officer before the authentication of such Bonds or before the delivery of such Bonds,
such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if
such officer had remained in such office.
8. Approval by Attorney General; Registration by Comptroller. The Bonds to be
initially issued shall be delivered to the Attorney General of Texas for approval and shall be
registered by the Comptroller of Public Accounts of the State of Texas. The manually executed
registration certificate of the Comptroller of Public Accounts substantially in the form provided in
Section 16 of this Ordinance shall be attached or affixed to the Bonds to be initially issued.
9. Authentication. Except for the Bonds to be initially issued, which need not be
authenticated by the Registrar, only such Bonds which bear thereon a certificate of authentication,
substantially in the form provided in Section 16 of this Ordinance, manually executed by an
authorized officer of the Registrar, shall be entitled to the benefits of this Ordinance or shall be
valid or obligatory for any purpose. Such duly executed certificates of authentication shall be
conclusive evidence that the Bonds so authenticated were delivered by the Registrar hereunder.
10. Payment of Principal and Interest. The Registrar is hereby appointed as the paying
agent for the Bonds. The principal of the Bonds shall be payable, without exchange or collection
charges, in any coin or currency of the United States of America which, on the date of payment, is
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legal tender for the payment of debts due the United States of America, upon their presentation and
surrender as they become due and payable, at the principal corporate trust office of the Registrar.
The interest on each Bond shall be payable by check payable on the Interest Payment Date, mailed
by the Registrar on or before each Interest Payment Date to the Owner of record as of the Record
Date, to the address of such Owner as shown on the Register.
11. Ownership; Unclaimed Principal and Interest. The City, the Registrar and any other
person may treat the person in whose name any Bond is registered as the absolute owner of such
Bond for the purpose of making and receiving payment of the principal thereof and for the further
purpose of making and receiving payment of the interest thereon, and for all other purposes,
whether or not such Bond is overdue, and neither the City nor the Registrar shall be bound by any
notice or knowledge to the contrary. All payments made to the person deemed to be the Owner of
any Bond in accordance with this Section 11 shall be valid and effectual and shall discharge the
liability of the City and the Registrar upon such Bond to the extent of the sums paid.
Amounts held by the Registrar which represent principal of and interest on the Bonds
remaining unclaimed by the Owner after the expiration of 3 years from the date such amounts have
become due and payable shall be reported and disposed of by the Registrar in accordance with the
provisions of Texas law, including to the extent applicable, Title 6 of the Texas Property Code, as
amended.
12. Registration, Transfer and Exchange. So long as any Bonds remain outstanding, the
Registrar shall keep the Register at its principal corporate trust office in which, subject to such
reasonable regulations as it may prescribe, the Registrar shall provide for the registration and
transfer of Bonds in accordance with the terms of this Ordinance.
Each Bond shall be transferable only upon the presentation and surrender thereof at the
principal corporate trust office of the Registrar, duly endorsed for transfer, or accompanied by an
assignment duly executed by the registered Owner or his authorized representative in form
satisfactory to the Registrar. Upon due presentation of any Bond for transfer, the Registrar shall
authenticate and deliver in exchange therefor, within three business days after such presentation, a
new Bond or Bonds, registered in the name of the transferee or transferees, in authorized
denominations and of the same maturity and aggregate principal amount and bearing interest at the
same rate as the Bond or Bonds so presented.
All Bonds shall be exchangeable upon presentation and surrender thereof at the principal
corporate trust office of the Registrar for a Bond or Bonds of the same maturity and interest rate and
in any authorized denomination, in an aggregate principal amount equal to the unpaid principal
amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby
authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this
Section 12. Each Bond delivered in accordance with this Section 12 shall be entitled to the benefits
and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond
is delivered.
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The City or the Registrar may require the Owner of any Bond to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection with the transfer or
exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be
paid by the City.
13. Cancellation of Bonds. All Bonds paid in accordance with this Ordinance, and all
Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in
accordance herewith, shall be cancelled and destroyed upon the making of proper records regarding
such payment. The Registrar shall furnish the City with appropriate certificates of destruction of
such Bonds.
14. Mutilated, Lost or Stolen Bonds. Upon the presentation and surrender to the
Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a
replacement Bond of like maturity, interest rate and principal amount, bearing a number not
contemporaneously outstanding. The City or the Registrar may require the Owner of such Bond to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith and any other expenses connected therewith, including the fees and expenses
of the Registrar.
If any Bond is lost, apparently destroyed, or wrongfully taken, the City, pursuant to the
applicable laws of the State of Texas and in the absence of notice or knowledge that such Bond has
been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and
deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number
not contemporaneously outstanding, provided that the Owner thereof shall have:
(1) furnished to the City and the Registrar satisfactory evidence of the
ownership of and the circumstances of the loss, destruction or theft of such Bond;
(2) furnished such security or indemnity as may be required by the
Registrar and the City to save them harmless;
(3) paid all expenses and charges in connection therewith, including, but not
limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental
charge that may be imposed; and
(4) met any other reasonable requirements of the City and the Registrar.
If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of
which such replacement Bond was issued presents for payment such original Bond, the City and the
Registrar shall be entitled to recover such replacement Bond from the person to whom it was
delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or
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expense incurred by the City or the Registrar in connection therewith.
If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is
about to become due and payable, the City in its discretion may, instead of issuing a replacement
Bond, authorize the Registrar to pay such Bond.
Each replacement Bond delivered in accordance with this Section 14 shall be entitled to the
benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which
such replacement Bond is delivered.
15. Special Election for Uncertificated Bonds. Notwithstanding any other provision
hereof, upon initial issuance of the Bonds but at the sole election of the Underwriters, the
ownership of the Bonds shall be registered in the name of Cede & Co., as nominee of DTC, and
except as otherwise provided in this Section, all of the outstanding Bonds shall be registered in the
name of Cede & Co., as nominee of DTC. The definitive Bonds shall be initially issued in the form
of a single separate certificate for each of the maturities thereof. If the purchaser shall elect to
invoke the provisions of this Section, then the following provisions shall take effect with respect to
the Bonds.
With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City
and the Registrar shall have no responsibility or obligation to any DTC Participant or to any person
on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the
immediately preceding sentence, the City and the Registrar shall have no responsibility or
obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC
Participant or any other person, other than an Owner of a Bond, as shown on the Register, of any
notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any
DTC Participant or any other person, other than an Owner of a Bond, as shown in the Register, of
any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding
any other provision of this Ordinance to the contrary, the City and the Registrar shall be entitled to
treat and consider the person in whose name each Bond is registered in the Register as the absolute
Owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on
the Bonds, for the purpose of all matters with respect to such Bond, for the purpose of registering
transfers with respect to such Bond, and for all other purposes whatsoever. The Registrar shall pay
all principal of, premium, if any, and interest on the Bonds only to or upon the order of the
respective Owners, as shown in the Register as provided in this Ordinance, or their respective
attorneys duly authorized in writing, and all such payments shall be valid and effective to fully
satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any,
and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner
as shown in the Register, shall receive a Bond certificate evidencing the obligation of the City to
make payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Registrar
of written notice to the effect that DTC has determined to substitute a new nominee in place of
Cede & Co.,the word "Cede& Co." in this Ordinance shall refer to such new nominee of DTC.
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In the event that the City or the Registrar determines that DTC is incapable of discharging
its responsibilities described herein and in the Letter of Representations of the City to DTC, and
that it is in the best interest of the beneficial Owners of the Bonds that they be able to obtain
certificated Bonds, or if DTC Participants owning at least 50% of the Bonds outstanding based on
current records of the DTC determine that continuation of the system of book-entry transfers
through the DTC (or a successor securities depository) is not in the best interest of the beneficial
Owners of the Bonds, or in the event DTC discontinues the services described herein, the City or
the Registrar shall (i) appoint a successor securities depository, qualified to act as such under
Section 17(a) of the Securities and Exchange Act of 1934, as amended, and notify DTC of the
appointment of such successor securities depository and transfer one or more separate Bonds to
such successor securities depository or (ii) notify DTC of the availability through DTC of Bonds
and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC
accounts. In such event, the Bonds shall no longer be restricted to being registered in the Register
in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor
securities depository, or its nominee, or in whatever name or names Bondholders transferring or
exchanging Bonds shall designate, in accordance with the provisions of this Ordinance.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bonds
are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on the Bonds, and all notices with respect to the Bonds,
shall be made and given, respectively, in the manner provided in the Letter of Representations from
the City to DTC.
16. Form. (a) The Bonds shall be in substantially the following form, including
the form of Registrar's Certificate of Authentication,the form of Assignment, the form of Statement
of Insurance, and the form of Registration Statement of the Comptroller of Public Accounts, with
such additions, deletions and variations as may be necessary or desirable and permitted by this
Ordinance:
United States of America
State of Texas
County of Jefferson
NUMBER DENOMINATION
R- $
REGISTERED REGISTERED
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THE CITY OF BEAUMONT, TEXAS
General Obligation Refunding Bond
Series 2006
INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP:
December 1, 2006
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Beaumont, in the County of Jefferson, State of Texas (the "City"), promises to
pay to the Registered Owner identified above, or registered assigns, on the date specified above,
upon presentation and surrender of this bond at the principal corporate trust office of The Bank of
New York Trust Company, N.A., Dallas, Texas (the "Registrar"), the principal amount identified
above, payable in any coin or currency of the United States of America which on the date of
payment of such principal is legal tender for the payment of debts due the United States of America,
and to pay interest thereon at the rate shown above, calculated on the basis of a 360 day year of
twelve 30 day months, from the later of December 1, 2006, or the most recent interest payment date
to which interest has been paid or duly provided for. Interest on this bond shall be paid by check
payable on September 1 and March 1, beginning on March 1, 2007, mailed to the registered owner
of record as of the previous August 15 and February 15 as shown on the books of registration kept
by the Registrar.
THIS BOND is one of a duly authorized issue of Bonds, aggregating $23,975,000 (the
"Bonds"), issued pursuant to an ordinance adopted by the City Council on November 14, 2006 (the
"Ordinance") for the purpose of refunding the following: (a) the City's outstanding Combination
Tax & Revenue Certificates of Obligation, Series 1996, maturing on March 1 in the years 2009
through 2014 in the principal amounts of$605,000, $675,000, $725,000, $770,000, $820,000 and
$850,000, respectively; (b) the City's outstanding Refunding Bonds, Series 1996, maturing on
March 1 in the years 2009 through 2010 in the principal amounts of $780,000 and $785,000,
respectively; (c) the City's outstanding Combination Tax & Revenue Certificates of Obligation,
Series 1998, maturing on March 1, 2018 in the principal amount of$2,225,000; and (d) the City's
outstanding Certificates of Obligation, Series 1999, maturing on March 1 in the years 2011 through
2018 in the principal amounts of $1,375,000, $1,500,000, $1,600,000, $1,900,000, $2,000,000,
$2,100,000, $2,200,000 and $2,325,000, respectively.
THE CITY RESERVES THE RIGHT, at its option, to redeem the Bonds having stated
maturities on or after March 1, 2017, in whole or in part, on March 1, 2016, or any date thereafter,
in integral multiples of $5,000, at a price of par plus accrued interest to the date fixed for
redemption. Reference is made to the Ordinance for complete details concerning the manner of
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redeeming the Bonds.
NOTICE OF ANY REDEMPTION shall be given at least thirty (30) days prior the date
fixed for redemption by first class mail, addressed to the registered owner of each Bond to be
redeemed in whole or in part at the address shown on the books of registration kept by the
Registrar. When Bonds or portions thereof have been called for redemption and due provision has
been made to redeem the same, the principal amounts so redeemed shall be payable solely from the
funds provided for redemption and interest which would otherwise accrue on the amounts called for
redemption shall terminate on the date fixed for redemption.
THIS BOND is transferable only upon presentation and surrender at the principal corporate
trust office of the Registrar, duly endorsed for transfer or accompanied by an assignment duly
executed by the registered owner or his authorized representative, subject to the terms and
conditions of the Ordinance.
THE BONDS are exchangeable at the principal corporate trust office of the Registrar for
bonds in the principal amount of$5,000 or any integral multiple thereof, subject to the terms and
conditions of the Ordinance.
THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit
under the Ordinance unless this Bond either (i) is registered by the Comptroller of Public Accounts
of the State of Texas by registration certificate endorsed hereon or (ii) is authenticated by the
Registrar by due execution of the authentication certificate endorsed hereon.
IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly
issued and delivered; that all acts, conditions and things required or proper to be performed, to exist
and to be done precedent to or in the issuance and delivery of this Bond have been performed, exist
and have been done in accordance with law; and that annual ad valorem taxes within the limits
prescribed by law sufficient to provide for the payment of the interest on and principal of this Bond,
as such interest comes due and such principal matures, have been levied and ordered to be levied
against all taxable property in the City and have been pledged irrevocably for such payment.
IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile
signature of the Mayor of the City and countersigned with the manual or facsimile signature of the
City Clerk of the City, and the official seal of the City has been duly impressed, or placed in
facsimile, on this Bond.
THE CITY OF BEAUMONT, TEXAS
Mayor
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(SEAL)
City Clerk
(b) Bonds No. R-1 through R-11 shall be registered by the Comptroller of Public
Accounts of the State of Texas, as provided by law. The registration certificate of the Comptroller
of Public Accounts shall be printed on Bonds R-1 through R-11 and shall be in substantially the
following form:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this bond has been examined, certified as to validity, and approved by
the Attorney General of the State of Texas, and that this bond has been registered by the
Comptroller of Public Accounts of the State of Texas.
WITNESS MY SIGNATURE AND SEAL this , 2006.
xxxxxxxxxxx
Comptroller of Public Accounts
of the State of Texas
(SEAL)
(c) Except for Bond Numbers R-1 through R-11, the following form of authentication
certificate shall be printed on each of the Bonds:
AUTHENTICATION CERTIFICATE
This bond is one of the bonds
described in and delivered pursuant
to the within-mentioned Ordinance.
The Bank of New York Trust Company,N.A., Registrar
By
Authorized Signature
Date of Authentication:
(d) The following form of assignment shall be printed on each of the Bonds:
ASSIGNMENT
For value received, the undersigned hereby sells, assigns, and transfers unto
the within bond and hereby irrevocably constitutes
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and appoints attorney to transfer said bond on the
books kept for registration thereof, with full power of substitution in the premises.
DATED:
Signature Guaranteed:
Registered Owner
NOTICE: The signature
above must correspond to
the name of the registered
NOTICE: Signature must be owner as shown on the face
guaranteed by a member firm of this Bond in every
of the New York Stock Exchange particular, without any
or a commercial bank or trust alteration, enlargement or
company. change whatsoever.
(e) The following statement of insurance shall be printed on each of the Bonds:
STATEMENT OF INSURANCE
Financial Security Assurance Inc. ("Financial Security"), New York, New York, has
delivered its municipal bond insurance policy with respect to the scheduled payments due of
principal of and interest on this Bond to The Bank of New York Trust Company, N.A., Dallas,
Texas, or its successor, as paying agent for the Bonds (the "Paying Agent"). Said Policy is on file
and available for inspection at the principal office of the Paying Agent and a copy thereof may be
obtained from Financial Security or the Paying Agent.
17. Legal Opinions; CUSIP. The approving opinion of Orgain, Bell & Tucker, L.L.P.,
Beaumont, Texas, Bond Counsel, and CUSIP Numbers may be printed on the Bonds, but errors or
omissions in the printing of such opinions or such numbers shall have no effect on the validity of
the Bonds.
18. Interest and Sinking Fund; Lew, Assessment and Collection of Taxes. There is
hereby established a separate fund of the City to be known as the "Series 2006 General Obligation
Refunding Bonds Interest and Sinking Fund" which shall be kept separate and apart from all other
funds of the City. The proceeds from all taxes levied, assessed and collected for and on account of
the Bonds authorized by this Ordinance shall be deposited, as collected, in the Interest and Sinking
Fund. While the Bonds or any part of the principal thereof or interest thereon remain outstanding
and unpaid, there is hereby levied and there shall be annually assessed and collected in due time,
form and manner, and at the same time other City taxes are assessed, levied and collected, in each
year, beginning with the current year, a continuing direct annual ad valorem tax upon all taxable
property in said City sufficient to pay the current interest on said Bonds as the same becomes due,
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and to create and provide a sinking fund of not less than two percent (2%) of the original principal
amount of the Bonds or of not less than the amount required to pay each installment of the principal
of said Bonds as the same matures, whichever is greater, full allowance being made for
delinquencies and costs of collection, and said taxes when collected shall be applied to the payment
of the interest on and principal of said Bonds and to no other purpose. In addition, interest accrued
from the date of the Bonds until their delivery and premium, if any, is to be deposited in such fund.
To pay the interest coming due on the Bonds on March 1, 2007, and the interest coming due on
September 1, 2007, there is hereby appropriated from current funds on hand, which are certified to
be on hand and available for such purpose, an amount sufficient to pay such interest, and such
amount shall be used for no other purpose.
19. Further Proceedings. After the Bonds to be initially issued shall have been
executed, it shall be the duty of the Mayor of the City to deliver the Bonds to be initially issued and
all pertinent records and proceedings to the Attorney General of the State of Texas, for examination
and approval by the Attorney General. After the Bonds to be initially issued shall have been
approved by the Attorney General, they shall be delivered to the Comptroller of Public Accounts of
the State of Texas for registration. Upon registration of the Bonds to be initially issued, the
Comptroller of Public Accounts (or a deputy lawfully designated in writing to act for the
Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be
printed and endorsed on the Bonds to be initially issued, and the seal of said Comptroller shall be
impressed, or placed in facsimile, thereon.
20. Sale of Bonds and Bond Insurance. The Bonds are hereby sold and shall be
delivered to the Underwriters at a price of $24,102,567.41, representing the principal amount of
Bonds of$23,975,000.00, plus accrued interest of$34,630.56, plus a premium of$269,385.55, less
an original issue discount of $20,611.20, and less an underwriter's discount of $155,837.50, in
accordance with the terms of the Purchase Contract presented to and hereby approved by the City
Council, which price and terms are hereby found and determined to be the most advantageous
reasonably obtainable by the City. The Mayor and other appropriate officials of the City are hereby
authorized and directed to do any and all things necessary or desirable to satisfy the conditions set
out herein and to provide for the issuance and delivery of the Bonds. The purchase of and payment
of the premium for the Municipal Bond Guaranty Insurance Policy in accordance with the terms of
the commitment for such insurance presented to the City Council are hereby approved and
authorized. All officials and representatives of the City are authorized and directed to execute such
documents and to do any and all things necessary, desirable or appropriate to obtain the Municipal
Bond Guaranty Insurance Policy, and the printing on the Bonds covered by the Municipal Bond
Guaranty Insurance Policy of an appropriate legend regarding such insurance is hereby approved
and authorized.
21. Tax Exemption. The City intends that the interest on the Bonds shall be
excludable from gross income of the owners thereof for federal income tax purposes pursuant to
Sections 103 and 141 through 150 of the Internal Revenue Code of 1986, as amended, (the
"Code") and all applicable temporary, proposed and final regulations (the "Regulations") and
-14-
procedures promulgated thereunder and applicable to the Bonds. For this purpose, the City
covenants that it will monitor and control the receipt, investment, expenditure and use of all
gross proceeds of the Bonds and take or omit to take such other and further actions as may be
required by Sections 103 and 141 through 150 of the Code and the Regulations to cause the
interest on the Bonds to be and remain excludable from the gross income, as defined in Section
61 of the Code, of the owners of the Bonds for federal income tax purposes. Without limiting the
generality of the foregoing, the City shall comply with each of the following covenants:
(a) The City will use all of the proceeds of the Bonds to (i) acquire non-
callable obligations of the United States of America (the "Escrowed Securities") sufficient to pay
the principal of, premium, if any, and interest on the Refunded Obligations and (ii) to pay the
costs of issuing the Bonds except for amounts, if any, described in the Report (as defined in the
Escrow Agreement) as the rounding amount and the ending cash balance in the Escrow Fund (as
defined in the Escrow Agreement).
(b) The City will not directly or indirectly take any action or omit to take any
action, which action or omission would cause the Bonds or the Refunded Obligations to
constitute "private activity bonds" within the meaning of Section 141(a) of the Code.
(c) Principal of and interest on the Bonds will be paid solely from ad valorem
taxes collected by the City, investment earnings on such collections, and as available, proceeds of
the Bonds.
(d) Based upon all facts and estimates now known or reasonably expected to
be in existence on the date the Bonds are delivered, the City reasonably expects that the proceeds
of the Bonds and the Refunded Obligations (to the extent any of such proceeds remain
unexpended) will not be used in a manner that would cause the Bonds or the Refunded
Obligations or any portion thereof to be "arbitrage bonds" within the meaning of Section 148 of
the Code.
(e) At all times while the Bonds are outstanding, the City will identify and
properly account for all amounts constituting gross proceeds of the Bonds in accordance with the
Regulations. The City will monitor the yield on the investments of the proceeds of the Bonds
and, to the extent required by the Code and the Regulations, will restrict the yield on such
investments to a yield which is not materially higher than the yield on the Bonds. To the extent
necessary to prevent the Bonds from constituting "arbitrage bonds," the City will make such
payments as are necessary to cause the yield on all yield-restricted nonpurpose investments
allocable to the Bonds to be less than the yield that is materially higher than the yield on the
Bonds.
(f) The City will not take any action or knowingly omit to take any action, if
taken or omitted, would cause the Bonds to be treated as "federally guaranteed" obligations for
purposes of Section 149(b) of the Code.
-15-
(g) The City represents that not more than fifty percent (50%) of the proceeds
of any new money portion of the Bonds or any new money issue refunded by, the Refunded
Obligations was invested in nonpurpose investments (as defined in Section 148(f)(b)(A) of the
Code) having a substantially guaranteed yield for four years or more within the meaning of
Section 149(g)(3)(A)(ii) of the Code, and the City reasonably expected at the time each issue of
the Refunded Obligations was issued that at least eighty-five percent (85%) of the spendable
proceeds of the Bonds or the Refunded Obligations would be used to carry out the governmental
purpose of such Bonds within the corresponding three-year period beginning on the respective
dates of the Bonds or the Refunded Obligations.
(h) The City will take all necessary steps to comply with the requirement that
certain amounts earned by the City on the investment of the gross proceeds of the Bonds, if any,
be rebated to the federal government. Specifically, the City will (i) maintain records regarding the
receipt, investment and expenditure of the gross proceeds of the Bonds as may be required to
calculate such excess arbitrage profits separately from records of amounts on deposit in the funds
and accounts of the City allocable to other obligations of the City or moneys which do not
represent gross proceeds of any obligations of the City and retain such records for at least six
years after the day on which the last outstanding Bond is discharged, (ii) account for all gross
proceeds under a reasonable, consistently applied method of accounting, not employed as an
artifice or device to avoid, in whole or in part, the requirements of Section 148 of the Code,
including any specified method of accounting required by applicable Regulations to be used for
all or a portion of the gross proceeds, (iii) calculate, at such times as are required by applicable
Regulations, the amount of excess arbitrage profits, if any, earned from the investment of the
gross proceeds of the Bonds and (iv) timely pay, as required by applicable Regulations, all
amounts required to be rebated to the federal government. In addition, the City will exercise
reasonable diligence to assure that no errors are made in the calculations required by the
preceding sentence and, if such an error is made, to discover and promptly correct such error
within a reasonable amount of time thereafter, including payment to the federal government of
any delinquent amounts owed to it, including interest thereon and penalty.
(i) The City will not indirectly pay any amount otherwise payable to the
federal government pursuant to the foregoing requirements to any person other than the federal
government by entering into any investment arrangement with respect to the gross proceeds of
the Bonds that might result in a reduction in the amount required to be paid to the federal
government because such arrangement results in smaller profit or a larger loss than would have
resulted if such arrangement had been at arm's length and had the yield on the issue not been
relevant to either party.
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(j) The City will timely file or cause to be filed with the Secretary of the
Treasury of the United States the information required by Section 149(e) of the Code with
respect to the Bonds on such form and in such place as the Secretary may prescribe.
(k) The City will not issue or use the Bonds as part of an "abusive arbitrage
device" (as defined in Section 1.148-10(a) of the Regulations). Without limiting the foregoing,
the Bonds are not and will not be a part of a transaction or series of transactions that attempts
to circumvent the provisions of Section 148 of the Code and the Regulations, by (i) enabling
the City to exploit the difference between tax-exempt and taxable interest rates to gain a
material financial advantage, or (ii) increasing the burden on the market for tax-exempt
obligations.
(1) Proper officers of the City charged with the responsibility for issuing the
Bonds are hereby directed to make, execute and deliver certifications as to facts, estimates or
circumstances in existence as of the Issue Date and stating whether there are facts, estimates or
circumstances that would materially change the City's expectations. On or after the Issue Date,
the City will take such actions as are necessary and appropriate to assure the continuous
accuracy of the representations contained in such certificates.
(m) The covenants and representations made or required by this Section are
for the benefit of the Bond holders and any subsequent Bond holder, and may be relied upon
by the Bondholder and any subsequent Bondholder and bond counsel to the City.
(n) In complying with the foregoing covenants, the City may rely upon an
unqualified opinion issued to the City by nationally recognized bond counsel that any action by
the City or reliance upon any interpretation of the Code or Regulations contained in such opinion
will not cause interest on the Bonds to be includable in gross income for federal income tax
purposes under existing law.
(o) Notwithstanding any other provision of this Ordinance, the City's
representations and obligations under the covenants and provisions of this Section shall survive
the defeasance and discharge of the Bonds for as long as such matters are relevant to the
exclusion of interest on the Bonds from the gross income of the owners for federal income tax
purposes.
22. Application of Proceeds. The proceeds from the sale of the Bonds in the amount of
$24,102,567.41, shall, promptly upon receipt by the City, be applied as follows:
(a) Accrued interest in the amount of$34,630.56 shall be deposited into the Interest and
Sinking Fund for the Bonds;
(b) To establish the escrow fund to refund the Refunded Obligations, $23,873,026.18
from the sale of the Bonds shall be deposited with the Escrow Agent pursuant to Section 25 below.
-17-
c $192 154.30 from the sale of the Bonds shall( ) a be used to pay the costs of issuing the
Bonds, including the premium of$62,154.30 for the Municipal Bond Guaranty Insurance Policy,
not later than 90 days after such issuance; and
(d) The sum of $2,756.37 from the sale of the Bonds shall be used as a rounding
amount and shall be deposited in the Interest and Sinking Fund for the Bonds; and
(e) Any proceeds from the Bonds remaining after making all such deposits and
payments shall be deposited into the Interest and Sinking Fund.
23. Transfer of Money in Interest and Sinking Funds Maintained for the Refunded
Obligations. On the date of delivery of the Bonds, the sum of$0.00 contained in the Interest and
Sinking Funds for the Refunded Obligations shall be transferred to the Escrow Agent and shall be
applied as herein provided.
24. Redemption of Refunded Obligations. The City hereby irrevocably calls the
following bonds of the City for redemption on the date set forth below, and authorizes and directs
notice of such redemption to be given in such form and in such manner as the Mayor, City
Manager, City Clerk or any other official of the City may approve:
Obligations To Be Redeemed Redemption Date
The City of Beaumont,
Texas, Combination Tax & Revenue
Certificates of Obligation, Series 1996
Maturities 2009 through 2014,
in the principal amounts of$605,000, $675,000,
$725,000, $770,000, $820,000, and 850,000,
respectively March 1, 2007
The City of Beaumont, Texas,
Refunding Bonds, Series 1996, Maturities 2009 and
2010 in the principal amounts of$780,000 and
$785,000, respectively March 1, 2007
The City of Beaumont, Texas Combination
Tax &Revenue Certificates of Obligation, Series 1998,
Maturing on March 1, 2018 in the principal amount
of$2,225,000 March 1, 2008
The City of Beaumont, Texas, Certificates of Obligation,
Series 1999, Maturities 2011 through 2018 in the principal
-18-
amounts of$1,375,000, $1,500,000, $1,600,000, $1,900,000,
$2,000,000, $2,100,000, $2,200,000 and$2,325,000,
respectively March 1, 2009
25. Escrow Agreement. The discharge and defeasance of the Refunded Obligations
shall be effectuated pursuant to the terms and provisions of an Escrow Agreement to be entered into
by and between the City and The Bank of New York Trust Company, N.A., Dallas, Texas, as
Escrow Agent, which shall be substantially in the form attached hereto as Exhibit "A", the terms
and provisions of which are hereby approved, subject to such insertions, additions and
modifications as shall be necessary (a) to carry out the program which has been designed for the
City by RBC Capital Markets, and which shall be certified as to mathematical accuracy by Grant
Thornton, L.L.P., in the Report, (b) to maximize the City's present value savings and minimize the
City's costs of refunding, (c) to comply with all applicable laws and regulations relating to the
refunding of the Refunded Obligations and (d) to carry out the other intents and purposes of this
Ordinance, and the Mayor is hereby authorized to execute and deliver the Escrow Agreement on
behalf of the City in multiple counterparts and the City Clerk or an Assistant City Clerk is hereby
authorized to attest thereto and affix the City's seal.
26. Source of Funds Used in Refunding. No money of the City other than proceeds of
the Bonds shall be used to refund the Refunded Obligations.
27. Purchase of Escrowed Securities. To assure the purchase of the Escrowed Securities
as described in the Report and in the Escrow Agreement, the Mayor, the City's Finance Officer, and
the Escrow Agent are hereby authorized to subscribe for, agree to purchase, and purchase such
Escrowed Securities in such amounts and maturities and bearing interest at such rates as may be
provided for in the Report, and to execute any and all subscriptions, purchase agreements,
commitments, letters of authorization and other documents necessary to effectuate the foregoing,
and any actions heretofore taken for such purpose are hereby ratified and approved.
28. Open Meeting. It is hereby officially found and determined that the meeting at
which this Ordinance was adopted was open to the public, and public notice of the time, place and
purpose of said meeting was given, all as required by Chapter 551 of the Texas Government Code
Annotated, Vernon's 1994, as amended.
29. Official Statement. The Preliminary Official Statement and the Official Statement
prepared in the initial offering and sale of the Bonds have been and are hereby authorized, approved
and ratified as to form and content. The use of the Preliminary Official Statement and the Official
Statement in the reoffering of the Bonds by the Underwriters is hereby approved, authorized and
ratified. The proper officials of the City are hereby authorized to execute and deliver a certificate
pertaining to the Preliminary Official Statement and the Official Statement as prescribed therein,
dated as of the date of payment for and delivery of the Bonds.
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30. Registrar. The Registrar, by undertaking the performance of the duties of the
Registrar and in consideration of the payment of fees or deposits of money pursuant to this
Ordinance and a Paying Agent/Registrar's Agreement, accepts and agrees to abide by the terms of
this Ordinance and such Agreement. The City hereby approves the form of the Paying
Agent/Registrar's Agreement presented to the City Council and hereby authorizes the Mayor or any
other official of the City to execute such agreement on behalf of the City, with such changes and
revisions thereto as may be approved by the official executing such agreement.
The City covenants that at all times while any Bonds are outstanding, it will provide a bank,
trust company, financial institution or other entity duly qualified and authorized to act as Registrar
for the Bonds. The City reserves the right to replace the Registrar or its successor at any time on
not less than sixty (60) days' written notice to the Registrar, so long as any such notice is effective
not less than sixty (60) days prior to the next succeeding principal or interest payment date on the
Bonds. If the Registrar is replaced by the City, the new Registrar shall accept the previous
Registrar's records and act in the same capacity as the previous Registrar, and the new Registrar
shall notify each Owner, by United States Mail, first class postage prepaid, of such change and of
the address of the new Registrar. Any successor Registrar shall be either a national or state banking
institution and a corporation or association organized and doing business under the laws of the
United States of America or any State authorized under such laws to exercise trust powers and
subject to supervision or examination by Federal or State authority. Each Registrar hereunder, by
acting in that capacity, shall be deemed to have agreed to the provisions of this Section.
31. Related Matters. To satisfy in a timely manner all of the City's obligations under
this Ordinance, the Mayor, the Mayor Pro Tem, the City Manager, the City Clerk, or Assistant City
Clerk, and all other appropriate officers and agents of the City are hereby authorized and directed to
take all other actions that are reasonably necessary to provide for issuance of the Bonds, including,
without limitation, executing and delivering on behalf of the City all certificates, consents, receipts,
requests and other documents as may be reasonably necessary to satisfy the City's obligations under
this Ordinance and to direct the application of funds of the City consistent with the provisions
hereof.
32. No Personal Liability. No recourse shall be had for payment of the principal of or
premium, if any, or interest on any Bonds, or for any claim based thereon, or on this Ordinance,
against any official or employee of the City or any person executing any Bonds.
33. Severability. If any Section, paragraph, clause or provision of this Ordinance shall
for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
Section, paragraph, clause or provision shall not affect any of the remaining provisions of this
Ordinance.
34. Repealer. All orders, resolutions, and ordinances, and parts thereof inconsistent
herewith are hereby repealed to the extent of such inconsistency.
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35. Additional Obligations. The City undertakes and agrees for the benefit of the
holders of the Bonds to provide directly, on or before six months after the end of the City's fiscal
year, which fiscal year presently ends on September 30:
a. to each nationally recognized municipal securities information repository and to the
appropriate state information depository, if any, annual financial information (which
may be unaudited) and operating data regarding the City for fiscal years ending on
or after January 1, 2006 which annual financial information and operating data shall
be of the type included in the following listed sections contained in the Final
Official Statement:
SELECTED FINANCIAL DATA
DEBT STATEMENT
TAX DATA
SELECTED FINANCIAL DATA
ADMINISTRATION OF THE CITY
Appendix B
b. to each nationally recognized municipal securities information repository and to the
appropriate state information depository, if any, audited financial statements for the
City for fiscal years ending on or after January 1, 2006, when available, if the City
commissions an audit and it is completed by the required time; provided that if
audited statements are not commissioned or are not available by the required time,
the City will provide unaudited statements when and if they become available;
C. in a timely manner, to each nationally recognized municipal securities information
repository or to the Municipal Securities Rulemaking Board, and to the appropriate
state information depository, if any, notice of any of the following events with
respect to the Bonds, if material within the meaning of the federal securities laws to
a decision to purchase or sell Bonds:
i. Principal and interest payment delinquencies;
ii. Non-payment related defaults;
iii. Unscheduled draws on debt service reserves
reflecting financial difficulties;
iv. Unscheduled draws on credit enhancements
reflecting financial difficulties;
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V. Substitution of credit or liquidity providers,
or their failure to perform;
vi. Adverse tax opinions or events affecting the
tax-exempt status of the Bonds;
vii. Modifications to rights of Bondholders;
viii. Bond calls;
ix. Defeasances;
X. Release, substitution or sale of property
securing repayment of the securities;
xi. Rating changes; and
d. in a timely manner, to each nationally recognized municipal securities information
repository or to the Municipal Securities Rulemaking Board, and to the appropriate
state information depository, if any, notice of a failure of the City to provide
required annual financial information and operating data, on or before six months
after the end of the City's fiscal year.
These undertakings and agreements are subject to appropriation of necessary funds and to
applicable legal restrictions, if any.
The accounting principles pursuant to which the City's financial statements are currently
prepared are generally accepted accounting principles set out by the Government Accounting
Standards Board, and, subject to changes in applicable law or regulation, such principles will be
applied in the future.
If the City changes its fiscal year, it will notify each nationally recognized municipal
securities information repository and the appropriate state information depository of the change
(and of the new fiscal year end) prior to the next date by which the City otherwise would be
required to provide annual financial information.
The City's obligation to update information and to provide notices of material events shall
be limited to the agreements herein. The City shall not be obligated to provide other information
that may be relevant or material to a complete presentation of its financial results of operations,
condition, prospects and shall not be obligated to update any information that is provided, except as
described herein. The City makes no representation or warranty concerning such information or
concerning its usefulness to a decision to invest in or sell Bonds at any future date. THE CITY
DISCLAIMS ANY CONTRACTUAL OR TORT LIABILITY FOR DAMAGES RESULTING IN
WHOLE OR IN PART FROM ANY BREACH, WHETHER NEGLIGENT OR WITHOUT
FAULT ON ITS PART, OF ITS CONTINUING DISCLOSURE AGREEMENT OR FROM ANY
STATEMENT MADE PURSUANT TO ITS AGREEMENT. HOLDERS OR BENEFICIAL
OWNERS OF BONDS MAY SEEK AS THEIR SOLE REMEDY A WRIT OF MANDAMUS TO
COMPEL THE CITY TO COMPLY WITH ITS AGREEMENT. No default by the City with
respect to its continuing disclosure agreement shall constitute a breach of or default under this
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Ordinance for purposes of any other provision of this Ordinance. Nothing in this paragraph is
intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and
state securities laws.
The City may amend its continuing disclosure obligations and agreement in this Section 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 agreement, as amended,
would have permitted the Underwriters to purchase or sell the Bonds in compliance with SEC Rule
15c2-12, taking into account any amendments or interpretations of such rule to the date of such
amendment, as well as such changed circumstances, and either the holders of a majority in
aggregate principal amount of the outstanding Bonds consent or any person unaffiliated with the
City (such as nationally recognized bond counsel) determines the amendment will not materially
impair the interests of the holders and beneficial owners of the Bonds. The City may also amend or
repeal the obligations and agreement in this Section if the SEC amends or repeals the applicable
provisions of Rule 15c2-12 or a court of final jurisdiction determines that such provisions are
invalid, and the City may amend the agreement in its discretion in any other circumstance or
manner, but in either case only to the extent that its right to do so would not prevent the
Underwriters from lawfully purchasing or reselling the Bonds in the primary offering of the Bonds
in compliance with Rule 15c2-12. If the City amends its agreement, it must include with the next
financial information and operating data provided in accordance with its agreement an explanation,
in narrative form, of the reasons for the amendment and of the impact of any change in the type of
information and operating data so provided.
The City's continuing obligation to provide annual financial information and operating data
and notices of events will terminate if and when the City no longer remains an "obligated person"
(as such term is defined in SEC Rule 15c2-12)with respect to the Bonds.
[The remainder of this page has intentionally been left blank. Signature page follows.]
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City of Beaumont-General Obligation Debt
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Dated Date=01101/1996 Series 1996 Tax Exempt Bonds to Refund Delivery Date=02122/1996
Term Bond Bond Coupon Interest Total Fiscal Year Debt Service
Dates Maturities Redemptions Proceeds Rate Yield Price Amount Debt Service Debt Service to Call
03/01/2007 4.900 5.500000 95.087000 39,907.50 39,907.50 - 1,604,907.50
09/01/2007 - - - 39,907.50 39,907.50 79,815.00
03/01/2008 5.000 5.000000 100.000000 39,907.50 39,907.50 -
09/01/2008 - - - - 39,907.50 39,907.50 79,815.00
03/01/2009 780,000.00 ' 786,536.40 5.100 5.000000 100.838000 39,907.50 819,907.50 -
09/01/2009 - - - - - 20,017.50 20,017.50 839,925.00
03/01/2010 785,000.00 ' 791,578.30 5.100 5.000000 100.838000 20,017.50 805,017.50 -
09/01/2010 - - - - - - - 805,017.50
03/01/2011 - 5.100 5.100000 100.000000 -
09/01/2011 - - -
03/01/2012 - - 5.200 5.200000 100.000000
09/01/2012 - - - -
03/01/2013 5.200 5.200000 100.000000 - -
09/01/2013 - - - - - -
03/01/2014 5.200 5.200000 100.000000 - - -
Total 1,565,000.00 1,578,114.70 239,572.50 1,804,572.50 1,804,572.50 1,604,907.50
Acc Int -11,307.13 -11,307.13
rand Totals 1,565,000.00 1,578,114.70 228 265.37 1,793,265.37 1,804,572.50 1 604 907.50
Bonds callable... 03/01/2007 @ 100.000
TIC(Incl.all expenses)....5.01185104% Average Coupon.......5.10000000% Net Eff.Int.Rate(Texas Vernon's)= 5.038690%(with Adjstmnt of$0.00).
TIC(Arbitrage TIC).........5.01185104% Average Life(yrs)... 13.67 IRS Form 8038-G NIC =4.996180%(with Adjstmnt of$0.00).
Bond Years.................. 21,390.83 WAM rs)............. 13.526597 NIC= 5.038690%(with Adjstmnt of$0.00).
3
BEAUMONT CITY GO:OLD1996REF R Prepared by:RBC Capital Markets--Houston, Texas 1111312006 @ 11:41 v7.66
Page-12
City of Beaumont-General Obligation Debt
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Dated Date=05/01/1999 C/O Bonds Series1999 to Refund Delivery Date=05/27/1999
Term Bond Bond Coupon Interest Total Fiscal Year Debt Service
Dates Maturities Redemptions Proceeds Rate Yield Price Amount Debt Service Debt Service to Call
03/01/2007 6.500 6.500000 100.000000 358,568.75 358,568.75 - 358,568.75
09/01/2007 - - - 358,568.75 358,568.75 717,137.50 358,568.75
03/01/2008 - 6.400 6.400000 100.000000 358,568.75 358,568.75 - 358,568.75
09/01/2008 - - - - 358,568.75 358,568.75 717,137.50 358,568.75
03/01/2009 - 4.500 4.500000 100.000000 358,568.75 358,568.75 - 15,358,568.75
09/01/2009 - - - 358,568.75 358,568.75 717,137.50
03/01/2010 4.500 4.500000 100.000000 358,568.75 358,568.75 - -
09/01/2010 - - - - 358,568.75 358,568.75 717,137.50
03/01/2011 1,375,000.00 ` 1,375,000.00 4.600 4.600000 100.000000 358,568.75 1,733,568.75 -
09/01/2011 - - - - 326,943.75 326,943.75 2,060,512.50
03/01/2012 - 1,500,000.00 ` 1,500,000.00 5.250 5.250000 100.000000 326,943.75 1,826,943.75
09/01/2012 - - - - 287,568.75 287,568.75 2,114,512.50
03/01/2013 - 1,600,000.00 ` 1,600,000.00 4.700 4.700000 100.000000 287,568.75 1,887,568.75
09/01/2013 - - - - 249,968.75 249,968.75 2,137,537.50
03/01/2014 - 1,900,000.00 ` 1,900,000.00 4.750 4.750000 100.000000 249,968.75 2,149,968.75
09/01/2014 - - - - 204,843.75 204,843.75 2,354,812.50 -
03/01/2015 - 2,000,000.00 ` 2,000,000.00 4.750 4.750000 100.000000 204,843.75 2,204,843.75
09101/2015 - - - - 157,343.75 157,343.75 2,362,187.50
03/01/2016 - 2,100,000.00 ` 2,100,000.00 4.750 4.750000 100.000000 157,343.75 2,257,343.75
09/01/2016 - - - - - - 107,468.75 107,468.75 2,364,812.50
03/01/2017 - 2,200,000.00 ` 2,200,000.00 4.750 4.750000 100.000000 107,468.75 2,307,468.75
09101/2017 - - - - 55,218.75 55,218.75 2,362,687.50
03/01/2018 - 2,325,000.00 ` 2,325,000.00 4.750 4.750000 100.000000 55,218.75 2,380,218.75 2,380,218.75
Total - 15,000,000.00 15,000,000.00 6,005,831.25 21,005,831.25 21,005,831.25 16,792,843.75
Acc Int - -51,793.26 -51,793.26
rand Totals 15,000,000.00 15,000 000.00 5,954 037.99 20,954 037.99 21,005,831.25 16,792,843.75
Bonds callable... 03/01/2009 @ 100.000
TIC(Incl.all expenses)....4.77423895% Average Coupon.......4.77576665% Net Eff.Int.Rate(Texas Vernon's)= 4.775767%(with Adjstmnt of$0.00).
TIC(Arbitrage TIC).........4.77423895% Average Life(yrs)... 15.73 IRS Form 8038-G NIC =4.775743%(with Adjstmnt of$0.00).
Bond Years.................. 235,875.00 WAM rs)............. 15.652778 NIC= 4.775767% with Adjstmnt of$0.00).
BEAUMONT CITY GO:OLD1999R Prepared by:RBC Capital Markets-Houston,Texas 1111312006 @ 11:41 v7.66
Page-13
City of Beaumont-General Obligation Debt
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Dated Date=04/0111998 Series 1998 Tax&Revenue Bonds to Refund Delivery Date=04/28/1998
Term Bond Bond Coupon Interest Total Fiscal Year Debt Service
Dates Maturities Redemptions Proceeds Rate Yield Price Amount Debt Service Debt Service to Call
03/01/2007 6.500 6.500000 100.000000 50,062.50 50,062.50 - 50,062.50
09/01/2007 - - - 50,062.50 50,062.50 100,125.00 50,062.50
03/01/2008 6.500 6.500000 100.000000 50,062.50 50,062.50 - 2,275,062.50
09/01/2008 - - - 50,062.50 50,062.50 100,125.00
03/01/2009 6.500 6.500000 100.000000 50,062.50 50,062.50 -
09/01/2009 - - - 50,062.50 50,062.50 100,125.00
03/01/2010 4.700 4.700000 100.000000 50,062.50 50,062.50 -
09/01/2010 - - - 50,062.50 50,062.50 100,125.00
03/01/2011 4.800 4.800000 100.000000 50,062.50 50,062.50 -
09/01/2011 - - - 50,062.50 50,062.50 100,125.00
03/01/2012 5.000 5.000000 100.000000 50,062.50 50,062.50 -
09/01/2012 - - - 50,062.50 50,062.50 100,125.00
03/01/2013 5.000 5.000000 100.000000 50,062.50 50,062.50 -
09/01/2013 - - - 50,062.50 50,062.50 100,125.00
03/01/2014 5.000 5.000000 100.000000 50,062.50 50,062.50 -
09/01/2014 - - - - 50,062.50 50,062.50 100,125.00 -
03/01/2015 5.000 5.000000 100.000000 50,062.50 50,062.50 - -
09/0112015 - - - 50,062.50 50,062.50 100,125.00
03/01/2016 - 5.000 5.000000 100.000000 50,062.50 50,062.50 - -
09/01/2016 - - - - 50,062.50 50,062.50 100,125.00
03/01/2017 - 5.000 5.000000 100.000000 50,062.50 50,062.50 - -
09/01/2017 - - - 50,062.50 50,062.50 100,125.00 -
03/01/2018 2,225,000.00 ' 2,225,000.00 4.500 4.500000 100.000000 50,062.50 2,275,062.50 2,275,062.50 -
Total 2,225,000.00 2,225,000.00 1,151,437.50 3,376,437.50 3,376,437.50 2,375,187.50 '.
Acc Int -7,509.38 -7,509.38
rand Totals 2,225,000.00 2,225,000.00 1,143,928.12 3,368,928.12 3,376,437.50 2,375,187.50
'-Bonds callable... 03/01/2008 @ 100.000
TIC(Incl.all expenses)....4.49690383% Average Coupon.......4.50000000% Net Eff.Int.Rate(Texas Vernon's)= 4.500000%(with Adjstmnt of$0.00).
TIC(Arbitrage TIC).........4.49690383% Average Life(yrs)... 19.92 IRS Form 8038-G NIC =4.500000%(with Adjstmnt of$0.00).
Bond Years.................. 44,314.58 WAM(y s)............. 19.841667 NIC= 4.500000%(with Adjstmnt of$0.00).
BEAUMONT CITY GO:OLD1998R Prepared by:RBC Capital Markets--Houston, Texas 1111312006 @ 11:41 v7.66
Page-14
PASSED AND APPROVED this 14th day of No vemb 006.
Mayor
THE CITY OF BEAUMONT, TEXAS
ATTEST:
uMoM'
City Clerk
THE CITY OF BEAU ONT, TEXAS % E= •^°
(CITY SEAL)
-24-
EXHIBIT "A"
ESCROW AGREEMENT
City of Beaumont-General Obligation Debt
Refunding Effects
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Less:Debt Service Plus:Series 2006 Refunding Bonds
Year Ending Current Total on Refunded Current Interest Bonds Capital Post Rfndg Post Rfnd
09130 Debt Service Bonds(l) Principal Interest Appr Bonds Debt Service Savings 2
2007 13,118,524 1,124,933 719,250 12,712,841 440,313
2008 9,028,880 1,124,933 60,000 957,800 8,921,748 107,133
2009 9,029,421 2,474,918 1,440,000 927,800 8,922,304 107,118
2010 9,029,489 2,478,010 1,505,000 868,900 8,925,379 104,110
2011 8,305,599 3,031,005 2,235,000 794,100 8,303,694 1,905
2012 8,301,358 3,091,498 2,385,000 701,700 8,296,560 4,798
2013 8,303,986 3,123,183 2,515,000 603,700 8,299,504 4,482
2014 8,304,781 3,327,038 2,830,000 496,800 8,304,544 237
2015 8,299,943 2,462,313 2,060,000 399,000 8,296,630 3,313
2016 8,299,108 2,464,938 2,150,000 314,800 8,298,970 138
2017 8,295,511 2,462,813 2,235,000 227,100 8,294,799 713
2018 8,294,151 4,655,281 4,560,000 91,200 8,290,070 4,081
2019 2,298,938 2,298,938
2020 2,244,313 2,244,313
2021 2,204,644 2,204,644
2022 2,169,850 2,169,850
2023 2,147,825 2,147,825
2024 2,124,513 2,124,513
2025 2,126,425 2,126,425
Totals $121,927,259 $31,820,863 $23,975,000 $7,102,150 $121,183,551 $778,339
(1)-This column only reflects debt payments scheduled after the closing date of 12/14/2006.
(2)-First year savings include$34,630.56 of accrued interest received at delivery.
i
BEAUMONT CITY GO:RUN2006 AGGOLD AGGREFUND NEW2006 Prepared by.RBC Capital Markets--Houston,Texas 1111312006 @ 11:41 v7.66
Page-1
City of Beaumont-General Obligation Debt
Sources&Uses Report
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Sources of Funds:
Principal Amount of Current Interest Bonds(CIBs) 23,975,000.00
CIB Premium 269,385.55
CIB Discount -20,611.20
Accrued Interest 34,630.56
Total SOURCES of Funds $24,258,404.91
Uses of Funds:
SLG Escrow Cost 23,873,026.18
Bond Insurance 62,154.30
Accrued Interest Deposit to D/S Fund 34,630.56
Issuance Expenses: ($285,837.50)
Underwriter's Discount 155,837.50
Rating Agency 12,200.00
Bond Counsel 38,000.00
Accountant/CPA 3,500.00
Printing 8,000.00
Trustee 3,950.00
Financial Advisor Fee 43,950.00
Miscellaneous 10,900.00
Attorney General 9,500.00
Rounding Amount 2,756.37
Total USES of Funds $24,258,404.91
Miscellaneous Bond Issuance Information:
Delivery Date: 12/14/2006
Principal Amount of Bonds Being Refunded 23,235,000.00
Principal Amount of the Refunding Bonds 23,975,000.00
Proceeds of"The new Bonds" 24,223,774.35
Rate/Yield on the Refunded Bonds 4.95153316%
"All Costs Included"TIC on the New Issue is 4.06744755%
Federal Arbitrage Yield on the New Issue is 3.87578613%
Yield on Escrow 3.87577260%
Total Debt Service Savings 778,339.31
Present Value Savings @ 4.06744755% 733,020.38
Total Debt Service Savings as a Percent of
Total Debt Service of Refunded Bonds 2.44600347%
Present Value Savings as a Percent of
Principal Amount of Bonds Being Refunded 3.15481115%
BEAUMONT CITY GO:RUN2006 NEW2006 AGGREFUND Prepared by:RBC Capital Markets--Houston,Texas 1111312006 @ 11:41 v7.66
Page-2
City of Beaumont-General Obligation Debt
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Dated Date=12101/2006 Series 2006 Refunding Bonds Delivery Date=12/14/2006
Term Bond Bond Coupon Interest Total Fiscal Year Debt Service
Dates Maturities Redemptions Proceeds Rate Yield Price Amount Debt Service Debt Service to Call
03/01/2007 - 239,750.00 239,750.00 - 239,750.00
09/01/2007 - - - - - 479,500.00 479,500.00 719,250.00 479,500.00
03/01/2008 60,000.00 60,322.20 4.000 3.540000 100.537000 479,500.00 539,500.00 - 539,500.00
09/01/2008 - - - - - - 478,300.00 478,300.00 1,017,800.00 478,300.00
03/01/2009 - 1,440,000.00 1,453,608.00 4.000 3.550000 100.945000 478,300.00 1,918,300.00 - 1,918,300.00
09/01/2009 - - - - 449,500.00 449,500.00 2,367,800.00 449,500.00
03/01/2010 - 1,505,000.00 1,523,496.45 4.000 3.590000 101.229000 449,500.00 1,954,500.00 - 1,954,500.00
09/01/2010 - - - - 419,400.00 419,400.00 2,373,900.00 419,400.00
03/01/2011 - 2,235,000.00 2,267,809.80 4.000 3.620000 101.468000 419,400.00 2,654,400.00 - 2,654,400.00
09/01/2011 - - - - 374,700.00 374,700.00 3,029,100.00 374,700.00
03/01/2012 - 2,385,000.00 2,425,330.35 4.000 3.640000 101.691000 374,700.00 2,759,700.00 - 2,759,700.00
09/01/2012 - - - - - 327,000.00 327,000.00 3,086,700.00 327,000.00 ".
03/01/2013 - 2,515,000.00 2,556,422.05 4.000 3.700000 101.647000 327,000.00 2,842,000.00 - 2,842,000.00
09/01/2013 - - - - 276,700.00 276,700.00 3,118,700.00 276,700.00
03/01/2014 - 2,830,000.00 2,877,798.70 4.000 3.730000 101.689000 276,700.00 3,106,700.00 - 3,106,700.00
09/01/2014 - - - - - 220,100.00 220,100.00 3,326,800.00 220,100.00
03/01/2015 - 2,060,000.00 2,093,104.20 4.000 3.770000 101.607000 220,100.00 2,280,100.00 - 2,280,100.00
09/01/2015 - - - - - 178,900.00 178,900.00 2,459,000.00 178,900.00 ,
03/01/2016 - 2,150,000.00 2,183,045.50 4.000 3.800000 101.537000 178,900.00 2,328,900.00 - 9,123,900.00
09/01/2016 - - - - 135,900.00 135,900.00 2,464,800.00 -
03/01/2017 - 2,235,000.00 ` 2,243,448.30 4.000 3.950000 100.378000 135,900.00 2,370,900.00 -
09/01/2017 - - - - 91,200.00 91,200.00 2,462,100.00
03/01/2018 - 4,560,000.00 - 4,539,388.80 4.000 4.050000 99.548000 91,200.00 4,651,200.00 4,651,200.00
Total 23,975,000.00 24,223,774.35 7,102,150.00 31,077,150.00 31,077,150.00 30,622,950.00
Acc Int -34,630.56 -34,630.56
rand Totals 23 975,000.00 24,223,774.35 7,067,519.44 31,042,519.44 31 077,150.00 30 622 950.00
'-Bonds callable... 03/01/2016 @ 100.000
TIC(Incl.all expenses)....4.06744755% Average Coupon.......4.00000000% Net Eff.Int.Rate(Texas Vernon's)= 3.859888%(with Adjstmnt of$0.00). ".
TIC(Arbitrage TIC).........3.87578613% Average Life(yrs)... 7.41 IRS Form 8038-G NIC =3.827310%(with Adjstmnt of$0.00).
Bond Years.................. 177,553.75 WAM(yrs)............. 7.354768 NIC= 3.859888%(with Adjstmnt of$0.00).
BEAUMONT CITY GO:NEW2006 Prepared by:RBC Capital Markets--Houston,Texas 1111312006 @ 11:41 v7.66
Page-3
City of Beaumont-General Obligation Debt
Refunding Analysis Savings Report
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Maturing Proceeds @ Interest Total Escrowed FY Begins Cumulative Pv of Savings
Dates Amount Issue Date Coupon Yield Amount Debt Service Debt 10101 Savings 4.06744755%
Savings
2007 719,250.00 719,250.00 1,124,932.50 405,682.50 405,682.50 400,564.06
2008 60,000 60,322.20 4.000 3.540000 957,800.00 1,017,800.00 1,124,932.50 107,132.50 512,815.00 100,424.33
2009 1,440,000 1,453,608.00 4.000 3.550000 927,800.00 2,367,800.00 2,474,917.50 107,117.50 619,932.50 96,560.53
2010 1,505,000 1,523,496.45 4.000 3.590000 868,900.00 2,373,900.00 2,478,010.00 104,110.00 724,042.50 90,226.15
2011 2,235,000 2,267,809.80 4.000 3.620000 794,100.00 3,029,100.00 3,031,005.00 1,905.00 725,947.50 501.76
2012 2,385,000 2,425,330.35 4.000 3.640000 701,700.00 3,086,700.00 3,091,497.50 4,797.50 730,745.00 3,015.67
2013 2,515,000 2,556,422.05 4.000 3.700000 603,700.00 3,118,700.00 3,123,182.50 4,482.50 735,227.50 2,785.16
2014 2,830,000 2,877,798.70 4.000 3.730000 496,800.00 3,326,800.00 3,327,037.50 237.50 735,465.00 -341.23
2015 2,060,000 2,093,104.20 4.000 3.770000 399,000.00 2,459,000.00 2,462,312.50 3,312.50 738,777.50 1,971.49
2016 2,150,000 2,183,045.50 4.000 3.800000 314,800.00 2,464,800.00 2,464,937.50 137.50 738,915.00 -202.63
2017 2,235,000 2,243,448.30 4.000 3.950000 227,100.00 2,462,100.00 2,462,812.50 712.50 739,627.50 286.22
2018 4,560,000 4,539,388.80 4.000 4.050000 91,200.00 4,651,200.00 4,655,281.25 4,081.25 743,708.75 2,598.31
$23,975,000 $24,223,774.35 $7,102,150.00 $31,077,150.00 $31,820,858.75 $743,708.75 $698,389.82
Acc Int -34,630.56 -34,630.56 $34,630.56 $34,630.56
Grnd Total $23,975,000 $24,223,774.35 $7,067,519.44 $31,042,519.44 $31,820,858.75 $778,339.31 $733,020.38
BEAUMONT CITY GO:RUN2006 NEW2006 AGGREFUND Prepared by:RBC Capital Markets--Houston, Texas 1111312006 @ 11:41 v7.66
Page-4
City of Beaumont-General Obligation Debt
Form 8038-G Report
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Dated Date=12/01/2006 Series 2006 Refunding Bonds Delivery Date=12/14/2006
Part III Description of Obligations. (Complete for the entire issue for which this form is being filed.)
(a)Final maturity
date (b)Issue price (c)Stated redemption (d)Weighted (e)Yield
price at maturity average maturity
21 03/01/2018 $24,223,774.35 $23,975,000.00 7.355 years 3.875786%
i
Part IV Uses of Proceeds of Bond Issue(including underwriters'discount)
22 Proceeds used for accrued interest 22 34,630.56
23 Issue price of entire issue enter amount from line 21,column b 23 24,223,774.35
24 Proceeds used for bond issuance costs(including underwriters'discount) 24 285,837.50 ##
25 Proceeds used for credit enhancement 25 62,154.30 ##
26 Proceeds allocated to reasonably required reserve or replacement fund 26 0.00 ##
27 Proceeds used to currently refund prior issues 27 6,113,433.88 ##
28 Proceeds used to advance refund prior issues 28 17,759,592.30 ##
29 Total add lines 24 through 28 29 24,221,017.98
30 Nonrefunding proceeds of the issue(subtract line 29 from line 23 and enter amount here) 30 2,756.37
Part V Description of Refunded Bonds (Complete this part only for refunding bonds.)
31 Enter the remaining weighted average maturity of the bonds to be currently refunded => 4.3318 years
32 Enter the remaining weighted average maturity of the bonds to be advance refunded => 8.5071 years
33 Enter the last date on which the refunded bonds will be called => 03/01/2009
34 Enter the date(s)the refunded bonds were issued See each Issue's O/S
BEAUMONT CITY GO:RUN2006 NEW2006 Prepared by:RBC Capital Markets--Houston,Texas 1111312006 @ 11:41 v7.66
Page-5
City of Beaumont-General Obligation Debt
Proof of Federal Arbitrage Yield
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Dated Date 12/01/2006 Series 2006 Refunding Bonds Delivery Date 12/14/2006
Proceeds to: Interest to: Disc Term Total PV of Adj D/S
Face Bondholder(+) Maturing Bondholder(+) Recoverable Total Bond Adjusted to 12/14/2006
o
Dates Amounts Issuer(-) Amounts Issuer(-) Fees Recurring Debt Service for Yld Calc Adjustments Cash Flow @ 3.87578613/o
12/14/2006 0.00 -24,223,774.35 0.00 -34,630.56 0.00 0.00 0.00 -24,258,404.91 -24,258,404.91
03/01/2007 0.00 0.00 0.00 239,750.00 0.00 239,750.00 0.00 239,750.00 237,789.57
09/01/2007 0.00 0.00 0.00 479,500.00 0.00 479,500.00 0.00 479,500.00 466,538.14
03/0112008 60,000.00 60,322.20 60,000.00 479,500.00 0.00 539,500.00 0.00 539,500.00 514,937.28
09/01/2008 0.00 0.00 0.00 478,300.00 0.00 478,300.00 0.00 478,300.00 447,844.88
03/01/2009 1,440,000.00 1,453,608.00 1,440,000.00 478,300.00 0.00 1,918,300.00 0.00 1,918,300.00 1,762,008.94
09/01/2009 0.00 0.00 0.00 449,500.00 0.00 449,500.00 0.00 449,500.00 405,028.54
03/01/2010 1,505,000.00 1,523,496.45 1,505,000.00 449,500.00 0.00 1,954,500.00 0.00 1,954,500.00 1,727,650.74
09/01/2010 0.00 0.00 0.00 419,400.00 0.00 419,400.00 0.00 419,400.00 363,674.67 P
03/01/2011 2,235,000.00 2,267,809.80 2,235,000.00 419,400.00 0.00 2,654,400.00 0.00 2,654,400.00 2,257,955.29
09/01/2011 0.00 0.00 0.00 374,700.00 0.00 374,700.00 0.00 374,700.00 312,677.77
03/01/2012 2,385,000.00 2,425,330.35 2,385,000.00 374,700.00 0.00 2,759,700.00 0.00 2,759,700.00 2,259,121.23
09/01/2012 0.00 0.00 0.00 327,000.00 0.00 327,000.00 0.00 327,000.00 262,597.00
03/01/2013 2,515,000.00 2,556,422.05 2,515,000.00 327,000.00 0.00 2,842,000.00 0.00 2,842,000.00 2,238,878.01
09/01/2013 0.00 0.00 0.00 276,700.00 0.00 276,700.00 0.00 276,700.00 213,835.53
03/01/2014 2,830,000.00 2,877,798.70 2,830,000.00 276,700.00 0.00 3,106,700.00 0.00 3,106,700.00 2,355,235.66
09/01/2014 0.00 0.00 0.00 220,100.00 0.00 220,100.00 0.00 220,100.00 163,688.98
03/01/2015 2,060,000.00 2,093,104.20 2,060,000.00 220,100.00 0.00 2,280,100.00 0.00 2,280,100.00 1,663,480.21
09/01/2015 0.00 0.00 0.00 178,900.00 0.00 178,900.00 0.00 178,900.00 128,037.87
03/01/2016 2,150,000.00 2,183,045.50 2,150,000.00 178,900.00 0.00 2,328,900.00 0.00 2,328,900.00 1,635,096.09
09/01/2016 0.00 0.00 0.00 135,900.00 0.00 135,900.00 0.00 135,900.00 93,600.08
03/01/2017 2,235,000.00 2,243,448.30 2,235,000.00 135,900.00 0.00 2,370,900.00 0.00 2,370,900.00 1,601,896.19
09/01/2017 0.00 0.00 0.00 91,200.00 0.00 91,200.00 0.00 91,200.00 60,447.77
03/01/2018 4,560,000.00 4,539,388.80 4,560,000.00 91,200.00 0.00 4,651,200.00 0.00 4,651,200.00 3,024,230.17
Totals 23,975,000.00 0.00 23,975,000.00 7,067,519.44 0.00 31,077,150.00 0.00 6,818,745.09 -62,154.30
Plus PV of Bond Insurance.......... 62,154.30
0.00
BEAUMONT CITY GO:NEW2006 Prepared by:RBC Capital Markets-Houston, Texas 1111312006 @ 11:41 v7.66
Page-6
City of Beaumont-General Obligation Debt
Issuance Expenses for NEW2006
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Expenses for NEW2006
Expense Raises Exp has no
Expense Title Type Units Arb Yield Affect Total
on Arb Yield
Underwriter's Discount V 6.500000 0.00 155,837.50 155,837.50
Rating Agency F 12,200.00 0.00 12,200.00 12,200.00
Bond Counsel F 38,000.00 0.00 38,000.00 38,000.00
Accountant/CPA F 3,500.00 0.00 3,500.00 3,500.00
Printing F 8,000.00 0.00 8,000.00 8,000.00
Trustee F 3,950.00 0.00 3,950.00 3,950.00
Bond Insurance D 2.000000 62,154.30 0.00 62,154.30
Financial Advisor Fee F 43,950.00 0.00 43,950.00 43,950.00
Miscellaneous F 10,900.00 0.00 10,900.00 10,900.00
Attorney General F 9,500.00 0.00 9,500.00 9,500.00
Totals $62,154.30 $285,837.50 $347,991.80
Type: F-Fixed Expense
V-Variable Expense Based on Issue Size
D-Variable Expense Based on Total Debt Service
E-Variable Expense Based on Total Debt Service Less Accrued Interest
R-Variable Expense Based on Reserve Fund Requirement
E
BEAUMONT CITY GO:EXP2006 Prepared by:RBC Capital Markets--Houston, Texas 1111312006 @ 11:41 v7.66
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City of Beaumont-General Obligation Debt
Escrow Sufficiency& Balance Report
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Escrow Settlement Date Is 12/14/2006
Proceeds from Less Amts to Plus Maturing Adjusted Proceeds from
Original be Invested Amts Invested Proceeds from Present Value 'Other' Old D/S Escrow Escrow
tric
Dates ResEscted in 0%SLGs in 0%SLGs Rstrct'd Esc @ 3.87577260% Investments Requirement New Balance Old Balance
12/14/2006 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.18 1.18
03/01/2007 6,572,466.65 0.00 0.00 6,572,466.65 6,518,724.04 0.00 6,572,466.25 1.58 1.58
09/01/2007 408,631.55 0.00 0.00 408,631.55 397,585.44 0.00 408,631.25 1.88 1.88
03/01/2008 2,633,630.50 0.00 0.00 2,633,630.50 2,513,725.21 0.00 2,633,631.25 1.13 1.13
09/01/2008 358,569.17 0.00 0.00 358,569.17 335,737.83 0.00 358,568.75 1.55 1.55
03/01/2009 15,358,568.20 0.00 0.00 15,358,568.20 14,107,252.48 0.00 15,358,568.75 1.00 1.00
Totals $25,331,866.07 $0.00 $0.00 $25,331,866.07 $23,873,025.00 $0.00 $25,331,866.25
Cost of SLG Securities $23,873,025.00 Escrow Arbitrage YLD after Reinvestment in 0%SLGs=3.87577260%
Cost of'Other'Restricted Investments $0.00
Escrow Starting Balance $1.18
Total Escrow Cost... $23,873,026.18 SLG Rates Were Taken From SLG Table Dated 1111312006 r
BEAUMONT CITY GO:RUN2006 AGGREFUND Prepared by:RBC Capital Markets--Houston, Texas 1111312006 @ 11:41 v7.66
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City of Beaumont-General Obligation Debt
U. S.Treasury SLG Investments
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Escrow Settlement Date Is 12114/2006
Payment SLG SLG Rates Total Receipts PV'd SLG Rates
Dates Principal Subscribed Interest SLG Receipts 3.87577260% From Table
03/01/2007 6,359,415 5.100000 213,051.65 6,572,466.65 6,518,724.04 5.100000
09/01/2007 66,243 5.090000 342,388.55 408,631.55 397,585.44 5.090000
03/01/2008 2,293,653 5.000000 339,977.50 2,633,630.50 2,513,725.21 5.000000
09/01/2008 75,933 4.870000 282,636.17 358,569.17 335,737.83 4.870000
03/01/2009 11,847,561 4.740000 280,787.20 12,128,348.20 11,140,209.69 4.740000
03/01/2009 3,230,220 0.000000 0.00 3,230,220.00 2,967,042.79 4.740000
Totals $23,873,025 $1,458,841.07 $25,331,866.07 $23,873,025.00
SLG Rates were taken from a SLG table dated 11/13/2006
BEAUMONT CITY GO:RUN2006 AGGREFUND Prepared by:RBC Capital Markets—Houston, Texas 1111312006 @ 11:41 v7.66
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City of Beaumont-General Obligation Debt
Aggregation Spreadsheet Report
Current Refunding of Series 1996 and Advance Refunding of Series 1998 81999 Bonds
Data are Principal Amounts Bonds to Refund Data are to Maturity
FY 10/01
Dates Totals OLD1996R OLD1996REF R OLD1998R OLD1999R
2007 0.00
2008 0.00
2009 1,385,000.00 605,000.00 780,000.00
2010 1,460,000.00 675,000.00 785,000.00
2011 2,100,000.00 725,000.00 1,375,000.00
2012 2,270,000.00 770,000.00 1,500,000.00
2013 2,420,000.00 820,000.00 1,600,000.00
2014 2,750,000.00 850,000.00 1,900,000.00
2015 2,000,000.00 2,000,000.00
2016 2,100,000.00 2,100,000.00
2017 2,200,000.00 2,200,000.00
2018 4,550,000.00 2,225,000.00 2,325,000.00
Totals $23 235 000.00 $4,445,000.00 $1,565,000.00 $2 225 000.00 $15,000,000.00
Component Face Amt —Title-- From To
OLD1996R $4,445,000.00 Tax and Revenue Series 1996 to Refund
OLD1996REF_R $1,565,000.00 Series 1996 Tax Exempt Bonds to Refund
OLD1998R $2,225,000.00 Series 1998 Tax&Revenue Bonds to Refund
OLD1999R $15,000,000.00 C/O Bonds Seriesl999 to Refund
BEAUMONT CITY GO:AGGREFUND Prepared by:RBC Capital Markets--Houston, Texas 1111312006 @ 11:41 v7.66
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City of Beaumont-General Obligation Debt
Current Refunding of Series 1996 and Advance Refunding of Series 1998&1999 Bonds
Dated Date=01/01/1996 Tax and Revenue Series 1996 to Refund Delivery Date=02/2211996
Term Bond Bond Coupon Interest Total Fiscal Year Debt Service
Dates Maturities Redemptions Proceeds Rate Yield Price Amount Debt Service Debt Service to Call
03/01/2007 - 5.500 5.500000 100.000000 113,927.50 113,927.50 - 4,558,927.50
09/01/2007 - - - 113,927.50 113,927.50 227,855.00
03/01/2008 5.000 5.000000 100.000000 113,927.50 113,927.50
09/01/2008 - - - - 113,927.50 113,927.50 227,855.00
03/01/2009 605,000.00 * 605,000.00 5.000 5.000000 100.000000 113,927.50 718,927.50 - -
09/01/2009 - - - - - 98,802.50 98,802.50 817,730.00
03/01/2010 675,000.00 * 675,000.00 5.000 5.000000 100.000000 98,802.50 773,802.50 -
09/01/2010 - - - - - 81,927.50 81,927.50 855,730.00
03101/2011 - 725,000.00 * 725,000.00 5.100 5.100000 100.000000 81,927.50 806,927.50 - -
09/01/2011 - - - - - - 63,440.00 63,440.00 870,367.50
03101/2012 - 770,000.00 * 770,000.00 5.200 5.200000 100.000000 63,440.00 833,440.00 -
09/01/2012 - - - - - - 43,420.00 43,420.00 876,860.00
03/0112013 - 820,000.00 * 820,000.00 5.200 5.200000 100.000000 43,420.00 863,420.00 - -
09/01/2013 - - - - - - 22,100.00 22,100.00 885,520.00
03/01/2014 - 850,000.00 * 850,000.00 5.200 5.200000 100.000000 22,100.00 872,100.00 872,100.00
Total - 4,445,000.00 4,445,000.00 1,189,017.50 5,634,017.50 5,634,017.50 4,558,927.50
Acc Int -32,279.46 -32,279.46
rand Totals - 4,445,000.00 4,445,000.00 1,156,738.04 5,601 738.04 5,634,017.50 4,558,927.50
*-Bonds callable... 03/01/2007 @ 100.000
TIC(Incl.all expenses)....5.12992726% Average Coupon.......5.13466881% Net Eff.Int.Rate(Texas Vernon's)= 5.134669%(with Adjstmnt of$0.00).
TIC(Arbitrage TIC).........5.12992726% Average Life(yrs)... 15.86 IRS Form 8038-G NIC =5.134746%(with Adjstmnt of$0.00).
Bond Years.................. 70,490.83 WAM(yrs)............. 15.716789 NIC= 5.134669%(with Adjstmnt of$0.00).
i
BEAUMONT CITY GO:OLD1996R Prepared by.RBC Capital Markets--Houston,Texas 1111312006 @ 11:41 v7.66
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