Title
Consider/Discuss/Act on an Ordinance Approving and Authorizing the Refunding of Certain Outstanding General Obligation Refunding Bonds, Series 2002 and Certificates of Obligation, Series 2003.
Summary
MEETING DATE: February 7, 2012
DEPARTMENT: Finance
CONTACT: Rodney Rhoades, Finance Director
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Ordinance
ITEM SUMMARY:
• The City has the option to refund in whole or in part the General Obligation Bond, Series 2002, maturing in years 2013 to 2022, and aggregating in principal amount of $11,930,000.
• The City also has the option to refund in whole or in part the Certificate of Obligation Bond, Series 2003 maturing in years 2013 to 2022 and aggregating in principal amount of $5,030,000.
• Refunding bonds is similar to refinancing debt obligations to take advantage of lower interest rates.
• The current interest rate for the bonds ranges from 3.75% to 4.75% per annum.
• All arrangements necessary to notify the holders of such obligations of the decision to refund will be directed in accordance with the refunding provisions.
BACKGROUND INFORMATION:
• The 2002 General Obligation and the 2003 Certificates of Obligation Bonds were issued, sold, and delivered subject to the right and authority of the City to refund them prior to maturity.
FINANCIAL SUMMARY:
• Total debt savings of not less than $2,200,000
BOARD OR COMMISSION RECOMMENDATION: N/A