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Council introduces $7.5 million recreation sales tax bonds; sale produced about $7.8 million
Summary
Council members voted to introduce an ordinance authorizing up to $7.5 million in recreation facility sales tax revenue bonds; bond counsel said the bonds were sold last week, yielding about $7.8 million for the project with a true interest cost of approximately 4.53 percent. Closing is expected March 20 after adoption on March 11.
The Broussard City Council on Feb. 25 voted to introduce Ordinance number 25-821, a supplemental ordinance authorizing $7.5 million of recreation facility sales tax revenue bonds, series 2025.
Brennan Black of Follin Udell, bond counsel, told the council that the authority to issue $7.5 million had been authorized previously and that the bonds had been sold last week. "Last year you all authorized 7 and a half million of sales tax bonds secured by the half cent recreation tax and we got bond commission approval, for those bonds which has kind of been waiting until the project was right to go out to bid," Black said. He said after adoption (scheduled March 11) the city would look to close on March 20 and receive funds then.
A second presenter, Sean Toops, reported the sale was well received by the market, noting rating agencies reaffirmed the city's rating and the offering was oversubscribed. "You're 7 and a half million. You're gonna get about $7,800,000 for your project, and the true interest cost on the transaction was about a 4.53," Toops said.
There was no public comment. The council voted to introduce the ordinance; council members representing Districts 2, 3, 5 and 6 voted yes and the motion passed. The ordinance will return for adoption at the next meeting with a planned closing on March 20.
