Title
Consider and take action an ordinance authorizing the issuance of “City of League City, Texas, General Obligation Refunding Bonds, Series 2016A”; levying an ad valorem tax; approving an official statement, authorizing the execution of a bond purchase agreement, a transfer and paying agency agreement, and an escrow agreement; authorizing officials to approve the amounts, interest rates, prices and terms thereof and certain other matters relating thereto; and other matters in connection therewith (Assistant City Manager)
State law requires one reading only.
Background:
This ordinance authorizes the issuance of General Obligation Refunding Bonds to refinance existing bonds. The estimated net present value savings on the refunding of the bonds is $1.61 million. Comparing the total debt service cost of the new bonds, with the value of the debt service cost of the old bonds, the City will save a gross amount of $2.9 million. The plan includes refunding bonds originally sold in 2006-2009 at higher interest rates with the savings reducing both the Tax Supported and the Water Utility Debt Service expenses. (See Attachment A). This refunding does not include any restructuring of the overall term and will assist in maintaining an overall level debt structure. There are no interest only payments or balloon payments in the proposed structure.
This bond sale is to be competitive with final approval authority granted to the City Manager to be provided on the day of the sale. Based on current market conditions, the competitive sales approach is intended to achieve the lowest overall cost to the City for this sale in terms of total interest cost.
The Preliminary Official Statement (POS) (see Attachment B) is the offering document used to present the City’s sale to the marketplace. The POS contains financial, organizational, programmatic and legal information about the City, including planned use of bond proceeds, and the initial proposed payment schedule fo...
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