SUBJECT:
Consider and authorize City Staff and Consultants to proceed with privately placing General Obligation Refunding Bonds, Series 2019 via competitive bidding process for the purpose of achieving annual debt service savings so long as certain savings thresholds can be met.
BACKGROUND/DISCUSSION:
The Certificates of Obligation issued in 2009 with interest rates of 4.2% to 4.6% and the 2012 General Obligation Refunding bonds with an interest rate of 3% are eligible for refunding. The City issued tax notes last month with an interest rate of 1.4%. The bond market is volatile and an estimated interest rate of 2% is being used for the attached estimate of $36,754 net present value savings.
FINANCIAL IMPACT:
The debt service savings will depend on market interest rates.
RECOMMENDATION:
Staff recommends authorization to proceed with privately placing General Obligation Refunding Bonds, Series 2019 via competitive bidding process for the purpose of achieving annual debt service savings so long as certain savings thresholds can be met. |