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Council approves supplemental bond resolution, adds series to $46.07M refunding
Summary
The council authorized adding two maturities to a prior bond refunding package, increasing net present-value savings to about $1.9 million and yielding roughly $950,000 in cash savings in the current fiscal year, staff said.
The Hampton City Council voted unanimously to adopt a supplemental bond resolution adding two previously omitted maturities to a refunding package that staff said increases the city's savings without extending maturity dates. City staff told the council the additional 2012 maturity produces an estimated $100,000 of extra savings in fiscal 2011 and raises the refunding's net present-value savings toward $1.9 million.
"And I'm very pleased to say that both Moody's and Fitch affirmed our strong double A rating," Ms. Bunting, the city manager, told the council as she outlined the financial case for the supplemental authorization. She added that Standard & Poor's had upgraded the city's bonds to AA+, a development staff said reflected the city's conservative fiscal management.
City staff said the refunding package that will be issued totals $46,070,000; the council had previously authorized refunds up to $60,000,000 but the newly identified maturities were not listed in the prior resolution. Financial adviser Joanne Carter of PFM was on hand to answer technical questions about issuance costs and the underwriting team, which staff said includes minority‑owned Siebert as part of a joint senior manager arrangement.
Council members asked about the breakdown of savings and whether the city had actively recruited minority firms for underwriting and distribution. Joanne Carter said the underwriting team had been instructed to include minority‑owned banks and advisors in their solicitations and that the advisory team itself includes minority-owned partners. The council's motion to adopt the supplemental resolution passed on a roll call with all members voting aye.
Staff said the change is housekeeping in form—the authorization list of series is being expanded to reflect maturities identified after the prior approval—and does not increase the total authorization ceiling the council had previously set.
