17-Move to approve a financial advisory contract with Southwest Securities

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swS ~ 7~ ~ E C. ~ G R O U P = ;7y Building what you ualue. FINANCIAL ADVISORY CONTRACT Honarable Mayor and City Council City of Paris c/o Kevin Carruth 135 First Street SE Paris, Texas 75460 Ladies and Gentlemen: 1. We understand that you contemplate the authorization and issuance of various types of debt obligations, including, but not limited to, general obligation bonds, certificates of obligation, revenue bonds and tax notes in various amounts; and that in connection with the authorization, issuance, sale and delivery of such obligations, you desire this proposal from us to perform professional services in the capacity of Financial Advisor for your City. 2. By this proposal, we offer our professional services and our facilities as Financial Advisor and agree to perform the following duties normally performed by such advisor and to perform such other duties as, in our judgment may be necessary or advisable: a. We will make a study of the debt structure of your City, the trend of the assessed valuation, its taxing power and the present and estimated future taxing power and the present and estimated future taxing requirements. If the revenues of a system or facility are to be pledged to repayment of the securities in question, the study will take into account any outstanding obligations which are payable from the net revenues thereof, additional net revenues to arise from any proposed rate increase and the additional net revenues as projected by your consulting engineers as a result of the improvements to be financed by these securities in question; and on the basis of such studies, we will devise and recommend for your approval, a plan of financing to cover the proposed obligations. Such plan shall include a maturity schedule and other terms and conditions, such as option of prior payment and the like, as will, in our opinion, result in the issuance of obligations under terms and conditions most advantageous to your City, consistent with a minimum effective interest rate. b. We will assist you in obtaining competitive bids for services rendered from such other parties associated with the issuance, sale and deliver}of the obligations c. We understand that you have retained, or expect to retain McCall Parkhurst & Horton L.L.P., a firm of recognized municipal bond attorneys, who will prepare the proceedings aid advise of the steps necessary to be taken in a bond election, if required, the legal issuance of the obligations and final delivery of the obligations; and who will issue an opinion approving the legaliTy of the obligations. The fee of said firm is to be paid by the City. We will maintain liaison with this firm of bond attorneys and shall assist in all the financial advisory aspects involved in the preparation of appropriate legal proceedings and documents. EXHIBIT A- - ~ ~ 14 ~