Title
Order Authorizing the Issuance and Sale of City of Greensboro, North Carolina Combined Enterprise System Revenue Refunding Bonds, Series 2014A, the Execution and Delivery of Certain Documents Relating Thereto and Other Actions in Connection Therewith
Body
Department: Finance
Council District: All
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Marlene Druga, Deputy Finance Director, 373-2077
PURPOSE:
The City proposes to issue up to $71.5 million in Water & Sewer Revenue Refunding Bonds in July to refinance variable rate bonds issued from 1998 through 2009, with a projected debt service savings of $800,000 or more. On June 3, 2014, the City Council, by resolution, authorized the filing of an application with the N.C. Local Government Commission (LGC) requesting approval of the issuance of up to $71.5 million Combined Enterprise System (Water & Sewer) Revenue Refunding Bonds. The next step in the issuance process requires City Council to authorize the related bond order and sale of the Series 2014A Combined Enterprise System Revenue Refunding Bonds. The LGC has reviewed the proposed refinancing and is expected to approve sale of the refunding bonds on July 1, 2014.
BACKGROUND:
The City has determined that it is advantageous to issue one new series of variable rate revenue bonds for the purpose of refinancing all six series of outstanding water and sewer system variable rate revenue bonds issued from 1998 through 2009, totaling $70.29 million. Refinancing the six bond series into one series is being undertaken to significantly lower annual bank and rating agency fees, which have nearly tripled over the last five years, in conjunction with the required update of variable rate bank documents and to meet new bond rating agency standards for variable rate debt. Having one series of bonds will also result in lower interest rate costs over the remaining 20-yea...
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