Title
Ordinance in the Amount of $20,660,720 Amending FY 2020-21 Debt Service Fund for General Obligation Refunding Bonds Series 2020D
Body
Council Priority: Ensure Fiscal Stewardship, Transparency, & Accountability
Department: Financial and Administrative Services and Legal
Council District: All
Public Hearing: No
Advertising Date/By: N/A
Contact 1 and Phone: Richard Lusk, 373-2077
Contact 2 and Phone: Charles Watts, 373-2320
PURPOSE:
To appropriate funds to account for the $20,660,720 General Obligation (GO) Refunding Bond, Series 2020D that refund outstanding GO bonds issued in 2010 for various general government capital projects.
BACKGROUND:
On December 17, 2019, City Council authorized a $57 million GO Refunding Bond Order and subsequently adopted the bond order on January 21, 2020 following a public hearing. The Local Government Commission authorized this bond transaction on January 7, 2020, subject to City Council approval. These bonds will refinance GO bonds issued in 2010 for various general governmental capital projects resulting in lower interest rates on the bonds. Approximate savings from refinancing the bonds is $1.8 million spread over the next 11 years.
The bonds were sold February 2020, with the transactions closing on July 8, 2020. The 2020D bond proceeds and related premiums of $20.4 million will be delivered to the escrow agent/bond trustee (U.S. Bank) at closing. At this time City Council approval of the attached ordinance on July 21, 2020 is needed, to properly account for the Series 2020D transactions and to record payment to the escrow agent for redemption of the outstanding bonds.
BUDGET IMPACT:
The reduction in interest rates and related fees will result in debt service savings in the Debt Service Fund of approximately $1.8 million over the next 11 years.
RECOMMENDATION / ACTION REQUESTED:
City Council is being requested to adopt the attached budget ordinance amending the FY 2020-21 Debt Service Fund by $20,660,720 for ...
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