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File #: 21-0577    Version: 1 Name: GO Refunding Bonds, Series 2021
Type: Agenda Item Status: Second Reading
File created: 10/4/2021 In control: Budget and Project Management
On agenda: 10/12/2021 Final action:
Title: Consider and take action on an ordinance authorizing the issuance of City of League City, Texas General Obligation Refunding Bonds, Series 2021; 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 (Interim Director of Finance) Staff requests approval on first and final reading.
Attachments: 1. Data Sheet, 2. Proposed Ordinance, 3. Cost of Issuance Analysis, 4. Draft Preliminary Official Statement
Title
Consider and take action on an ordinance authorizing the issuance of City of League City, Texas General Obligation Refunding Bonds, Series 2021; 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 (Interim Director of Finance)

Staff requests approval on first and final reading.


Background:
If approved, this ordinance authorizes the issuance of General Obligation Refunding Bonds. Principal will not be extended beyond its original maturity date. The final maturity will be in February of 2031, for a term of 9 years. The purpose of the refunding is to reduce annual payments for savings. There is one issue that will be refunded representing $28,815,000 of par. Gross savings are expected to exceed $4,370,000. Net Present Value Savings are expected to exceed $3,960,000. The Net Present Value Savings as a percentage of the refunded bonds is expected to exceed 13.75%. Annual savings will be realized in each year that principal is refunded based on the debt outstanding from the original debt schedule on a uniform basis. A cash contribution of debt service funds in the approximate amount of $400,000 will be made at closing. The cash contribution is made so the current years’ debt service will not be reduced but remain as budgeted. Future fiscal years debt service will be reduced because of the refunding. See schedule of debt to be refunded below.

This Issue Final
Original Bond Issue Original Use of Proceeds Refunded Par Maturity
Tax& WW & SS Rev CO, Series 2011A Utility System $28,815.00 2031

This bond sale is to be competitive with delegated authority to the Mayor, City Manager, and Interim Director of F...

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