Agenda

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Item # 1.

Council Meeting

Meeting Date:	11/09/2021
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 and Discuss the Proposed Issuance of 2022 Tax-Exempt Refunding Bonds.

BACKGROUND:

In 2012, the Town issued $14,835,000 in Combination Tax and Revenue Certificates of Obligation (CO's) for the purposes of acquiring and installing radio and telecommunications equipment for the Town's public safety operations and for water, wastewater, street, and drainage infrastructure improvements within Vitruvian Park. The radio and telecommunications bonds were issued with a fifteen year debt-life while the Vitruvian infrastructure bonds were issued with a twenty-five year debt life. The CO's carry a final maturity date of February 15, 2037 with annual payments scheduled to decrease beginning in 2028 through 2037. The bonds may be called and refunded on February 15, 2022 on a tax-exempt basis.

Refunding the CO's is estimated to create total interest savings of $971,500 with net present value savings of $836,359 (8.83% of the amount refunded). Interest savings of approximately $62,000 to $68,000 per year are estimated for the remaining life of the bonds.

RECOMMENDATION:

Information only, no action required.

Attachments
Presentation - 2022 Bond Refunding