Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Refunding Bonds, Series 2021 (the “Bonds”) for the Galveston County Municipal Utility District No. 43 in an amount not to exceed $4,500,000 (Director of Finance)
Background:
Approval of this item will authorize the Galveston County Municipal Utility District 43 to issue refunding bonds that will save an estimated $588,522 in future debt service payments over the remaining term of the refunded bonds.
On March 2, 2021, 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 2021 in an amount not to exceed $4,500,000.
The Bonds are to be used to currently refund and defease portions of the District's Unlimited Tax Refunding Bonds, Series 2011 and Series 2013. The proposed bonds are structured with the same maturity schedule as the bonds being refunded (through 2036), so there will be no extension of the debt. The financing, as projected on March 15, 2021, will provide 12.96% net present value savings ($511,183) and $588,522 of gross savings, after all issuance costs. The District's 2020 Certified Taxable Assessed Valuation as provided by the Galveston Central Appraisal District is $425,445,387 and the 2020 tax rate is $0.65 per $100 assessed valuation. The estimate of value as of January 1, 2021, as provided by the Galveston Central Appraisal District, was $452,801,180. Direct debt, as a percentage of the 2021 estimate of value, is 6.63%; direct and overlapping debt is estimated at 12.35%.
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 Agreeme...
Click here for full text