Title
Consider/Discuss/Act on an Ordinance Approving and Authorizing the Refunding of Certain Outstanding Waterworks and Sewer System Revenue Bonds, Series 2002.
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 Waterworks and Sewer System Revenue Bonds, Series 2002, maturing in years 2013 to 2023, and aggregating in principal amount of $5,380,000.
• Refunding bonds is similar to refinancing debt obligations to take advantage of lower interest rates.
• The current interest rate for the bonds ranges from 4.30% to 5.00% 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 Wastewater and Sewer System Revenue 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 $600,000
BOARD OR COMMISSION RECOMMENDATION: N/A