Presenter/Contact
Presenter
Jared Werner, Chief Financial Officer
Contact Info
(830) 221-4385 - jwerner@nbtexas.org
Subject Header
SUBJECT:
Title
Discuss and Consider Approval of an Ordinance Authorizing the Issuance of City of New Braunfels, Texas General Obligation Refunding Bond, Series 2020; Levying an Ad Valorem Tax In Support of the Bond; Awarding the Sale of the Bond; Approving An Official Statement, A Paying Agent/Registrar Agreement and An Escrow Agreement; Calling Certain Obligations For Redemption; and Authorizing Other Matters Related to the Issuance of the Bond
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BACKGROUND / RATIONALE:
As discussed at the September 28th regular City Council meeting, the current interest rate environment remains at historic lows. As a result, there are additional opportunities for bond refunding’s (refinancing). The 2011 Certificates of Obligation are callable on February 1, 2021. Current statute allows for them to be refunded up to 90 days in advance of the call date.
The total amount of bonds to be refunded is $11,010,000. The refunding is anticipated to generate over $1.6 million in savings over a 10-year period. The majority of the savings generated by the refunding will go towards to the support of a tax note issuance to address critical equipment and technology replacements. The issuance of the tax note will occur concurrently with the refunding.
Additional information on the final interest rate(s) and terms will be presented by staff and the City’s financial advisor during the City Council meeting.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
FISCAL IMPACT:
As mentioned above, the majority of the savings are planned to support a concurrently issued tax note to address critical replacement needs.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval