Agenda

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Item # 10.

Council Meeting

Meeting Date:	08/10/2021
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Continuously improve processes and policies to include the voice of the customer and ensure the policies are easily accessible

AGENDA CAPTION:

Present, Discuss, and Consider Action on an Ordinance Authorizing the Issuance of Town of Addison, Texas, General Obligation Refunding Bonds, Taxable Series 2021; Awarding the Sale Thereof; Levying a Tax, and Providing for the Security and Payment of Said Bonds; Authorizing the Execution and Delivery of a Paying Agent/Registrar Agreement and an Escrow Agreement; Approving the Official Statement; Enacting Other Provisions Relating to the Subject; and Declaring an Effective Date.

BACKGROUND:

At the June 22, 2021, Council meeting, staff presented a plan to take advantage of a favorable market environment to refund, i.e. refinance, the 2013 General Obligation Bonds and 2013A General Obligation Bonds. Estimates provided at the June 22, 2021, Council meeting were that the refunding would create $296,770, or 7.43%, in Net Present Value savings over the remaining life of the debt. Additionally, staff mentioned that an increasingly favorable market environment since the June 22nd agenda was posted would allow the Town to also refund the 2013 Certificates of Obligation pushing total Net Present Value savings over the remaining life of the debt to approximately $1,000,000.

Certain details concerning the General Obligation Taxable Refunding Bonds will not be known until the completion of the sale on August 10, 2021. This information will be made available at the Council meeting on August 10, 2021, prior to the discussion of this item. The ordinance will be updated at the meeting.

The Town of Addison's AAA/Aaa bond ratings from Standard and Poor's and Moody's were reaffirmed as part of this bond sale.

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance - Authorization of 2021 General Obligation Taxable Refunding Bonds