Ratings: Moody’s: “Aa1” Standard & Poor’s: “AAA” Fitch: “AAA” (See “RATINGS” herein) OFFICIAL STATEMENT Dated: April 19, 2011 NEW ISSUE: BOOK-ENTRY-ONLY In the opinion of Bond Counsel, interest on the Bonds is excludable from gross income for purposes of federal income taxation under existing law, subject to the matters described under “TAX MATTERS-Tax Exemption” herein, including the alternative minimum tax on corporations. $15,000,000 CITY OF CARROLLTON, TEXAS (Dallas, Denton and Collin Counties) GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011 Dated: April 15, 2011 Due: August 15, as shown below Interest on the $15,000,000 City of Carrollton, Texas, General Obligation Improvement Bonds, Series 2011 (the “Bonds”), will be payable August 15 and February 15 of each year, commencing August 15, 2011 until maturity or prior redemption. The Bonds will be issued only in fully registered form in any integral multiple of $5,000 of principal amount, for any one maturity. Principal of the Bonds will be payable to the registered owner at maturity or prior redemption upon their presentation and surrender to the Paying Agent/Registrar (the “Paying Agent/Registrar”), initially U.S. Bank N.A.. Interest on the Bonds will be payable, by check, dated as of the interest payment date, and mailed first class, postage prepaid, by the Paying Agent/Registrar to the registered owners as shown on the records of the Paying Agent/Registrar on the Record Date (see “Record Date for Interest Payment” herein), or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. The City of Carrollton, Texas (the “City”), intends to utilize the Book-Entry-Only System of The Depository Trust Company (“DTC”), but such system could be discontinued in the future. Such Book-Entry-Only System will affect the method and timing of payment and the method of transfer (see “BOOK-ENTRY-ONLY SYSTEM” herein). The Bonds maturing on and after August 15, 2022, are subject to optional redemption prior to maturity, in whole or in part, on August 15, 2021, or any date thereafter, as described herein (see “THE BONDS – Optional Redemption Provisions” herein). The Bonds maturing on August 15, 2027 (the “Term Bonds”) are also subject to mandatory redemption in part prior to maturity at a price of par plus accrued interest to the redemption date (see “THE BONDS – Mandatory Sinking Fund Redemption”). The Bonds are direct obligations of the City and are payable both as to principal and interest from the proceeds of a continuing direct annual ad valorem tax levied, within the limits prescribed by law, against all taxable property within the City. Proceeds of the Bonds will be used to (i) pay costs of public safety facilities improvements, park improvements, street improvements, traffic improvements, and drainage improvements in the City, and (ii) pay the costs associated with the issuance of the Bonds (see “THE BONDS – Purpose” herein). MATURITY SCHEDULE & 9 DIGIT CUSIP (1) CUSIP Prefix: 145610 $15,000,000 General Obligation Improvement Bonds, Series 2011 Maturity Principal CUSIP Maturity Principal CUSIP (1) (1) (8/15) Amount Rate Yield Suffix (8/15) Amount Rate Yield Suffix 2011 $290,000 3.000 % 0.250 % HH7 2020 $715,000 4.000 % 3.080 % HS3 2012 585,000 3.000 0.400 HJ3 2021 740,000 4.000 3.250 HT1 2013 595,000 3.000 0.700 HK0 2022 770,000 4.000 3.450 c HU8 2014 610,000 3.000 1.020 HL8 2023 800,000 4.000 3.580 c HV6 2015 620,000 3.000 1.430 HM6 2024 835,000 4.000 3.750 c HW4 2016 635,000 3.000 1.750 HN4 2025 870,000 4.000 3.880 c HX2 2017 650,000 3.000 2.100 HP9 2028 980,000 4.125 4.200 JA0 2018 670,000 3.500 2.480 HQ7 2029 1,025,000 4.250 4.300 JB8 2019 695,000 4.000 2.830 HR5 2030 1,070,000 4.250 4.380 JC6 $1,845,000 4.00% Term Bond due August 15, 2027, Priced to Yield 4.10%; CUSIP 145610 HZ7 (Accrued Interest to be added from Dated Date) c = yield shown is yield to August 15, 2021, the first call date at par. UBS Financial Services Inc. The Bonds are offered when, as and if issued and accepted by the Initial Purchaser, subject to the approval of legality by the Attorney General of the State of Texas and Fulbright & Jaworski L.L.P., Dallas, Texas, Bond Counsel. The Bonds are expected to be available for delivery through DTC on or about May 12, 2011. (1) CUSIP is a registered trademark of The American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by Standard & Poor’s Financial Services LLC on behalf of The American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for CUSIP Services. None of the City, the Financial Advisor or the Initial Purchaser is responsible for the selection or correctness of the CUSIP numbers set forth herein. CITY OF CARROLLTON, TEXAS ELECTED OFFICIALS CITY COUNCIL Ronald F. Branson, Mayor Matthew Marchant, Mayor Pro Tem Lisa Sutter, Deputy Mayor Pro Tem Jeff Andonian, Councilmember Kevin Falconer, Councilmember John Mahalik, Councilmember Pat Malone, Councilmember Terry Simons, Councilmember APPOINTED OFFICIALS Leonard Martin, City Manager Beth Little Bormann, Assistant City Manager Marc Guy, Assistant City Manager Robert B. Scott, Chief Financial Officer R. Clayton Hutchins, City Attorney Priscilla Robinson, City Treasurer Ashley Mitchell, City Secretary BOND COUNSEL AND ADVISORS Fulbright & Jaworski L.L.P., Bond Counsel Dallas, Texas RBC Capital Markets, LLC, Financial Advisor Dallas, Texas INDEPENDENT AUDITOR Grant Thornton LLP, Certified Public Accountants Dallas, Texas USE OF INFORMATION IN OFFICIAL STATEMENT No dealer, broker, salesman or other person has been authorized to give any information, or to make any representations other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the Financial Advisor or the Initial Purchaser. This Official Statement is not to be used in connection with an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. Certain information set forth herein in this Official Statement has been furnished by sources other than the City which are believed to be reliable, but such information is not guaranteed by the City as to accuracy or completeness. Any information and expression of opinion herein contained is subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described herein since the date hereof. See “CONTINUING DISCLOSURE” for a description of the City’s undertaking to provide certain information on a continuing basis. THE BONDS ARE EXEMPT FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION AND CONSEQUENTLY HAVE NOT BEEN REGISTERED THEREWITH. THE REGISTRATION, QUALIFICATION, OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTION IN WHICH THE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. IN CONNECTION WITH THIS OFFERING, THE INIITIAL PURCHASER MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THIS OFFICIAL STATEMENT CONTAINS “FORWARD-LOOKING” STATEMENTS WITHIN THE MEANING OF SECTION 21e OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE DIFFERENT FROM THE FUTURE RESULTS, PERFORMANCE AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED THAT THE ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD-LOOKING STATEMENTS. The agreements of the City and others related to the Bonds are contained solely in the contracts described herein. Neither this Official Statement nor any other statement made in connection with the offer nor sale of the Bonds is to be construed as constituting an agreement with the purchasers of the Bonds. INVESTORS SHOULD READ THE ENTIRE OFFICIAL STATEMENT, INCLUDING ALL SCHEDULES AND APPENDICES ATTACHED HERETO, TO OBTAIN INFORMATION ESSENTIAL TO MAKING AN INFORMED INVESTMENT DECISION. Neither the City, nor the Financial Advisor make any representation regarding the information contained in this Official Statement regarding The Depository Trust Company (“DTC”) and its Book-Entry-Only System, as such information was furnished by DTC. i TABLE OF CONTENTS Use of Information in Official Statement......................................................................................................................... i Table of Contents............................................................................................................................................................ ii Summary Statement....................................................................................................................................................... iv Introductory Statement...................................................................................................................................................