Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bonds topic
No spam. Unsubscribe anytime.
MCD adopts resolution to call remaining 2014 sales-tax revenue bonds for redemption
Summary
After staff outlined interest-rate trajectories and savings estimates, the board voted to adopt a resolution calling the remaining portion of the 2014 taxable sales-tax revenue bonds for early redemption and discussed the timing and fiscal trade-offs.
The Midlothian Community Development Corporation adopted a resolution on April 23 calling the remaining portion of the 2014 sales-tax revenue bonds (taxable series 2014) for redemption prior to maturity.
Anne (staff presenter) reviewed the bond structure and current interest environment, telling the board the bonds carry interest that will rise over time and that paying them off now could yield interest savings. She gave approximate rate figures—"I believe it's 4% this year... and then through the remainder of the bond it's 5.5 percent"—and discussed a staff estimate of potential savings from defeasing the bonds versus issuing new debt.
A committee member moved to adopt the resolution and it was seconded; the motion carried by voice vote. Board members who spoke emphasized comparing savings to the opportunity cost of using cash for other projects prior to finalizing any disbursement plan. Staff will proceed with steps required to call the bonds and return with any necessary implementation details.
The decision was made in open session following staff presentation and discussion.
