Title
Consider and take action on an ordinance authorizing the issuance of City of League City, Texas general obligation refunding and improvement bonds, series 2019; levying a tax in payment thereof; authorizing the issuance of the bonds in accordance with specified parameters; authorizing the redemption prior to maturity of certain outstanding obligations; approving the preparation and distribution of an official statement; and enacting other provisions relating thereto; and providing for the effective date thereof (Director of Finance)
Staff requests first and final reading.
Background:
This ordinance authorizes the issuance of General Obligation Refunding and Improvement Bonds. The estimated net present value savings on the refunding of the bonds is $3,097,800. The plan includes refunding bonds originally sold in 2011 at higher interest rates with the savings reducing both the Tax Supported and the Water Utility Debt Service expenses. 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 delegated authority to the Mayor, City Manager and Director of Finance. Based on current market conditions, the competitive sales approach with delegated authority 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) 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 for the bonds.
The bond ordinance approves the sale with the parameters that will control the approval of the sale by the Mayor, City Manager and Director of Finance. This includes:
1. A sale of bonds no...
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