Title
Order Authorizing the Sale and Issuance by the City of Greensboro, North Carolina of not to Exceed $110,000,000 Combined Enterprise System Revenue Refunding Bonds, Series 2017A and Series 2017B and Authorizing the Execution and Delivery of Certain Documents in Connection Therewith
Body
Department: Finance and Legal
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Tom Carruthers, City Attorney, 373-2320
PURPOSE:
To approve the attached bond order authorizing the issuance and sale of up to $110 million Combined Enterprise System (Water and Sewer) Revenue Bonds on or about July 26, 2017.
BACKGROUND:
On June 6, 2017, the City Council, by resolution, authorized the filing of an application with the N.C. Local Government Commission requesting approval of the issuance of up to $110 million Combined Enterprise System (Water & Sewer) Revenue Bonds. The Commission is expected to approve the sale of the Series 2017 Bonds on July 11, 2017.
The proposed bond issue consists of (1) to refinance an approximately $40 million short-term revenue bond anticipation note issued in 2016, that funded water and sewer projects, with long-term bonds; (2) to issue approximately $30 million in bonds to fund additional water and sewer projects approved by City Council and that are currently under contract; and (3) to refinance $29.6 million water and sewer revenue bonds issued in 2009 to a lower interest rate.
Based on current market conditions the City projects selling the Series 2017A revenue bonds of approximately $70 million on or about July 26, 2017 with an average fixed interest cost of 3.5% or less over their 30-year term. It also projects selling the Series 2017B revenue refunding bonds (refinancing $29.6 million bonds issued in 2009) with an average fixed interest cost of 2.25% or less over their remaining 14-year term. The outstanding 2009 bonds have an a...
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