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Council authorizes refunding bonds; advisors estimate roughly $600,000 savings over three years
Summary
Financial advisors recommended refinancing up to $23.1 million of 2010 bonds to take advantage of lower interest rates; advisors reported gross savings of about $600,000 over three years and the council approved the resolution authorizing the refunding transaction.
Financial advisors and bond counsel outlined a refinancing plan for the city’s 2010 general obligation public improvement and refunding bonds. Advisor (Davenport & Company) reported 12 bona fide responses to the RFP and said the refinance would lower the interest rate from about 4.63% to roughly 2.36%, producing gross savings "a little bit over $600,000 over the next 3 years," the advisor said. The resolution authorizes staff to proceed with a refunding as long as thresholds are met (principal not to exceed $23.1 million, true interest rate not above 2.75%, final maturity not later than January 15, 2022).
Bond counsel George Scruggs summarized the resolution's parameters and said council approval is the only action required to move forward. Council voted to approve the refunding resolution by recorded voice vote.
