SUBJECT/RECOMMENDATION:
Title
Authorize the negotiated sale of not to exceed $27,550,000 Water and Sewer Revenue Refunding Bond, Series 2014 and adopt Resolution 14-38.
Body
SUMMARY:
Currently there is outstanding $26,430,000 par value of Water and Sewer Revenue Bonds, Series 2006, with maturities in years 2019 - 2032 and interest rates ranging from 4.25% to 4.625% that are callable on December 1, 2015. Current bond-market conditions present an opportunity to advance refund these bonds to achieve a present value savings of approximately $2,242,720 (8.49%).
The City's debt management policy states, "As a general rule, the present value savings of a particular refunding should exceed 5%."
In anticipation of the refunding, the City through its Financial Advisor, Stifel, Nicolaus and Company, Inc., issued a Request for Proposals (RFP) soliciting proposals from qualified investment companies to provide a bank loan.
This resolution authorizes the negotiated sale of not to exceed $27,550,000 par value at a fixed interest rate of 3.18% of Revenue Refunding Bonds, Series 2014, to TD Bank, N.A., the firm submitting the most favorable response to the RFP.
APPROPRIATION CODE AND AMOUNT: N/A