Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Bonds topic
No spam. Unsubscribe anytime.
Staff outlines plan to refund Anson-area bonds; formal resolution delayed
Summary
County staff detailed a plan to refund 2013 and 2015 A/B Anson TIF bonds to lower interest costs and accelerate paydown, but flagged a $1 million draw-bond issue that requires a revised resolution and will be brought back to the April 17 meeting for adoption.
A staff member told the Boone County board that county officials plan to refund the 2013 and 2015 A and B bonds tied to the Anson tax-increment financing area in order to lower interest rates and shorten the debt schedule.
The staff member said the refunding would ‘‘completely pay off’’ those series and that market conditions should permit moving the coupon from about 6.5% down into the low 4% range, producing interest savings that could allow the county to retire other bonds a year or two earlier. The action is intended to reduce total debt-service costs and remove developer backup from those series, the staff member added.
The staff member described a technical complication on the 2015 A issue: that series was issued as a "draw" bond, with proceeds held by the Bank of New York and a roughly $1 million balance still available for developer draws to complete infrastructure work. Browning, a developer on the project, has requested that the $1 million remain available to repave a roadway serving buildings the developer identified; staff said the county and bond counsel plan to include that requirement in a revised resolution so funds can be held until work is ready to proceed.
"They think that they can drop them to in the fours," the staff member said of expected interest rates. The staff member also said Bank of New York has assigned a new, responsive contact who has been providing requested information to county staff and the auditor's office.
No formal bond resolution was adopted at the meeting. The staff member said Heather James is revising the bond resolution and Brian (last name referenced in the meeting) is recalculating financing numbers; the updated documents will be circulated to board members and the auditor's office ahead of the next meeting. The staff member said the timetable provided previously (a close in late April/June) will likely slip by about a month but will not materially affect the refunding.
Board members emphasized that there is no county backup on the refunded series and that the Anson TIF area is now mature enough, with diversified taxpayers, to support marketability without developer guarantees. The staff member said that once those bonds are retired, the TIF will end and taxing jurisdictions will receive the tax proceeds.
The board did not vote on the refunding at this session; the revised resolution is expected at the April 17 meeting for formal consideration and possible adoption.
