Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Refunding Bonds, Series 2020 for the Galveston County Municipal Utility District 39 in an amount not to exceed $7,000,000 (Director of Finance)
Background:
Approval of this item will authorize the Galveston County Municipal Utility District 39 to issue refunding bonds that will save an estimated $214,551 in future debt service payments over the remaining term of the refunded bonds.
On April 7, 2020, the MUD Board authorized the District's consultants to proceed with the preparation of the various documents related to the issuance of a proposed refunding bond issue. To accommodate potential market fluctuations, the Board is requesting approval of the sale of Unlimited Tax Refunding Bonds, Series 2020 in an amount not to exceed $7,000,000.
The bonds are to be used to currently refund and defease portions of the District's Unlimited Tax Refunding Bonds, Series 2012 and Series 2013. The proposed bonds are structured with the same maturity schedule as the bonds being refunded (through 2030), so there will be no extension of the debt. The financing, as projected on April 15, 2020, will provide a 3.56% net present value savings ($187,030) and $214,551 of gross savings, after all issuance costs. The District's 2019 Certified Taxable Assessed Valuation as provided by the Galveston Central Appraisal District is $407,944,137 and their 2019 tax rate is $0.57 per $100 assessed valuation.
Under the terms of the Utility Agreement between the District and the City, bonds may be sold by the District only with the approval of the City Council. The terms and conditions of the bonds are in compliance with the Utility Agreement. This refunding will not extend the term of the debt, currently 2032.
CONTRACT ORIGINATION: N/A
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Letter from Masterson Advisors LLC
4. Letter of attestation from Board President
5. Refunding Analysis/...
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