HomeMy WebLinkAboutPOWERPOINT ITEM NO. 18
Agenda Item #18
pity Of `~u~~l~ ~ ~}1l~t~r ~'ur~d
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Issuance of
2012 Refunding
Water Revenue Bonds
f.~sr~~~nce cif 2t? 12 efu~dlncr I~'`~t"er e /er~u~ ~c~rads,
~~r~r~tiracred
~• The 2012 Refunding Water Revenue Bonds (BONDS) to
be issued are not to exceed $10 million.
City issued $14.355 million Refunding Water Revenue
Bonds (bonds) in 2003 to defease the 1993 Series Water
System Revenue Certificates of participation.
:- From now until the 2003 bonds mature in 2023, the
interest rates on the 2003 bonds range from 4.00% to
4.65%. The rate of interest currently paid on the 2003
bonds is approximately 4.38%.
_ Z
3/20/2012
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3/20/2012
Isscr~r,~c~e r~l~2C~1~ o~efirnclr"r7c~ !Water f;`ever7F.re ~'c~na's,
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The 2012 Refunding Water Revenue bonds will mature
in 2023 with an estimated Par Amount of $8.390 million
and premium of $1.452 million.
~.- The BONDS require no reserve fund and the estimated
interest rates range from 2.00% to 5.00% with a Yield of
0.38% to 2.35%.
°~ The average savings on annual debt service payments
until the 2012 bonds mature is approximately
$204,000. The total savings over ten years is over $2
million.
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c~rrtir~cred
Standard & Poor's underlying rating for the City's water
fund is "AA" with a stable outlook as of March 19, 2012.
~.• Staff requests City Council adopt TPFA resolution 12-01
and City resolution 12-30 approving bond documents
and authorizing all actions necessary to consummate
the issuance and sale of the BONDS.
.o. Bond pricing is scheduled to be March 27, 2012, and
the BONDS are expected to close April 19, 2012.
a,~ The Financing Team is available for any questions.
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