Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
City reports results of bond sales; refunds generate about $1.08 million in savings
Summary
City finance staff reported sale results for refunding and new‑money certificates of obligation and permanent improvement refunding bonds; council approved sale results and related ordinances on a series of votes.
City finance advisors reported results of bond sales and refunding transactions that produced debt‑service savings and generated proceeds for planned capital projects.
Presentation highlights: John Robock of BOK Financial presented the market overview and sale results. The city refunded $24,550,000 of older bonds (selecting bonds that generated at least 3% present‑value savings) and replaced them with refunding bonds at lower interest costs, producing approximately $1,083,000 in lifetime savings. The refunding portion yielded an all‑in interest rate of about 3.551% compared with an average refunded bond rate of 4.737%.
New money and certificates of obligation: The sale also included new‑money bonds and two series of certificates of obligation to support capital projects. New‑money proceeds for one series totaled roughly $9,927,220 after premiums and costs. The sale for water and sewer projects produced approximately $118,046,000 in proceeds (net premium and after issuance costs), with an all‑in cost rate around 5.032% and a front‑loaded plan to reduce near‑term water/sewer rate pressure.
Council action: Council approved ordinance readings and related items tied to the sales on motions recorded during the meeting (items discussed under new business items 2 and 3). Votes on the financing items passed 7‑0 for the general obligation/certificate items that required council approval.
Why it matters: The refunding portion reduces long‑term interest expense and lowers debt service by generating present‑value savings; the new‑money portion funds ongoing capital projects including general government and water/sewer system investments. Staff said the refunded bonds were selected to generate at least 3% PV savings and that maturities were not extended beyond the original schedule (all refunded bonds still end in 2038).
Next steps: Closing will occur after Attorney General review and scheduled closing dates (staff indicated an anticipated close around Aug. 26 for some series). Council approved the sale results and directed staff to proceed with closing and the related bond administration steps.
