Presenter/Contact
Presenter
Martie Simpson, Finance Director
Contact Info
(830) 221-4385 - msimpson@nbtexas.org
Subject Header
SUBJECT:
Title
Discuss and consider approval of an ordinance of the City Council of the City of New Braunfels, Texas authorizing the issuance of "City of New Braunfels, Texas General Obligation Refunding Bonds, Series 2017", levying an annual Ad Valorem Tax, within the limitations prescribed by law, for the payment of the bonds, prescribing the form, terms, conditions and resolving other matters incident and related to the issuance, sale and delivery of the bonds; authorizing the execution of a paying agent/registrar agreement , a purchase and investment letter, and an escrow and trust agreement, complying with the letter of representation on file with the depository trust company, authorizing the execution of any necessary engagement agreements with the City's financial advisors and/or bond counsel; and providing an effective date.
Body
BACKGROUND / RATIONALE:
The City's Financial Advisors, SAMCO Capital Markets Inc., identified potential debt service savings as a result of refunding or refinancing the Certificates of Obligation, Series 2009. On June 26, 2017, City Council authorized city staff and SAMCO to proceed with the issuance of General Obligation Refunding Bonds, Series 2017 and to solicit interest rate bids. Savings were sufficient to proceed. Therefore staff is bringing forward the attached ordinance for City Council’s approval. Current Savings were estimated at $35,000/year or a total of $395,000. Final savings will be determined by the final interest rates on the date of sale.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
City Plan/ Council Priority |
Strategic Priorities:1 - Use a variety of funding sources for operational and capital needs; 8 - Maintain fiscal stability of City Operations |
FISCAL IMPACT:
The annual debt service from this issuance will be supported by ad valorem taxes. Any potential tax rate impact will be driven by various factors such as fully amortizing debt (capacity), growth in assessed valuation and savings from the bond refundings. The Refunding Bonds are estimated to save approximately $35,000/year so the net effect is a very minor reduction in the City’s I&S Tax Rate.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of the attached ordinance authorizing the issuance of “City of New Braunfels, Texas General Obligation Refunding Bonds, Series 2017".