Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Sandy Springs sells $48.965M in bonds for fire projects; council approves related resolutions
Summary
The City of Sandy Springs Public Facilities Authority sold bonds to fund three fire station projects, awarding the sale to R.W. Baird with a blended true interest cost near 4.18%. The PFA and city council approved a supplemental bond resolution and a related substitution of an escrow security that staff says will free about $1 million.
The Public Facilities Authority of the City of Sandy Springs sold its revenue bonds Sept. 16 to fund three fire and safety construction projects, and the city council approved a companion supplemental bond resolution later the same evening.
The bond sale, conducted competitively at 10:30 a.m., drew 13 bids and was awarded to R.W. Baird, which provided the lowest true interest cost of 4.185%, city financial adviser David Cheatwood said. The final par amount of bonds sold was $48,965,000; together with the premium, staff said the transaction will provide a $50,000,000 construction fund and cover issuance costs. Cheatwood described a blended interest cost of about 4.18% and said the bonds carry level annual debt service of about $2,935,000 annually over a 30-year term to 2055.
Why it matters: the proceeds will fund three city fire station projects that the PFA previously authorized. The sale also affirmed the city’s AAA ratings, which staff attributed to the favorable investor response.
The PFA voted to approve the supplemental bond resolution by voice vote; later the city council approved the identical supplemental bond resolution during its meeting. City Manager Eden Freeman introduced the finance team at the PFA meeting; Cheatwood presented the sale results to the PFA and council.
In a related action, the PFA and council approved a resolution to substitute a security in the 2020 escrow fund associated with the 2015 bonds that had been advanced in 2020. Freeman and Cheatwood said Hilltop Securities flagged a market opportunity: selling one treasury security in the escrow and buying another that better matched the May 1, 2026 call date would increase interest earnings. Cheatwood estimated the substitution could free roughly $1 million that would return to the city and the PFA, and he said the change involved swapping one treasury instrument for another with no added risk. The PFA approved the substitution and the council subsequently voted to authorize purchase of that substitution.
Repayment and prepayment: Cheatwood noted the newly issued bonds include a 10-year prepayment (call) feature, meaning the city cannot prepay or refinance the bonds before about May 1, 2035, but could do so any time thereafter. Council members asked whether the city could refinance again if market rates fall; Cheatwood confirmed the 10-year call provision allows a future refinancing opportunity.
What council approved: a PFA motion to award the bond sale and approve the supplemental bond resolution, and a PFA/council approval of the substitution of the escrow security. Council approvals were made by voice vote; the clerk recorded the items as approved. No litigation or dissenting votes were recorded in the meeting minutes for these items.
What happens next: staff will complete the closing mechanics and the city will begin drawing construction funds as the project schedule requires. Cheatwood and bond counsel Jim Woodward remained available to answer technical questions at staff request.
