Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Huntsville finance director outlines $30M borrowing and $63.5M refunding planned for February
Summary
Penny Smith, the city’s finance director, presented the schedule and structure of a multi‑part debt plan that includes a roughly $30 million competitive borrowing, a $6–8 million PBA tranche and a $63.5 million refunding intended to generate about $3.5 million in net savings.
Penny Smith, Huntsville’s director of finance, presented the city’s upcoming debt issuance schedule to the council on Jan. 23, including a Public Building Authority tranche, competitive pricing dates in early February and a refunding plan intended to lower interest costs.
Smith said the city’s credit ratings (Moody’s and S&P) were reaffirmed at AAA in November and described a financing plan that includes: a PBA issuance likely in the $6–8 million range (Smith said she expected the figure to be closer to $6 million) to finalize spending on projects tied to the Public Building Authority; a competitive sale for roughly $30 million intended to support ongoing work at the Von Braun Center (the presentation referenced a total project spend around $40 million with $10 million currently on hand, reducing the needed borrowing to about $30 million); and a refunding of three series (2013, 2014 and 2015) with total principal around $63.5 million that Smith estimated would produce net present‑value savings of about $3.5 million without extending maturities.
Smith explained the rationale for using a mix of general obligation borrowing and PBA debt, noting the PBA’s rating is 1 notch below the city’s and therefore carries a slightly higher interest cost. She also described the roles of the city’s financial advisors (PFM), bond counsel (Bradley Arendt), and underwriter (Raymond James) and said pricing dates are scheduled in early February with the close to follow.
There was no council vote on the presentation itself; Smith said legal steps such as issuance of a preliminary official statement and sale/pricing procedures would follow the council’s authorization at later items and hearings. Councilmembers asked questions but took no formal action at the presentation.
Clarifying details from the presentation: the refunding covers three bond series (2013–2015) with an estimated $63.5 million principal refunded and roughly $3.5 million in net savings; the PBA tranche was described as approximately $6–8 million (staff expected nearer $6 million); and the competitive sale for the Von Braun Center financing was estimated near $30 million.
