Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: April 18, 2017
SUBJECT
Title
Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $30,700,000 in principal amount of "City of Denton General Obligation Refunding and Improvement Bonds, Series 2017"; authorizing the issuance of the Bonds; delegating the authority to certain City officials to execute certain documents relating to the sale of the Bonds; approving and authorizing instruments and procedures relating to said Bonds; and enacting other provisions relating to the subject; and providing an effective date.
Body
BACKGROUND
This bond sale was previously discussed with the Audit/Finance Committee and the City Council on March 7, 2017. At the time of these discussions, staff anticipated refunding $12,980,000 in existing debt as part of this issuance, if market conditions were favorable. Based on the advice of the City's financial advisor, First Southwest Company, market conditions are favorable, and as such, staff requests approval to proceed with the refunding of a portion of the 2007A General Obligation Refunding Bonds. The refunding will not extend the maturity date of the existing debt and it is currently projected to produce approximately $700,000 in present value savings. The bond sale may include up to $560,000 for issuance and escrow costs.
In addition, the bond sale includes the issuance of $17,160,000 in General Obligation Bonds (GOs) related to the 2012 and 2014 Bond Elections plus related issuance costs. The GO amount below represents the funding for the fifth and final year of projects approved by the voters in the 2012 Bond Election.
1. Street Improvements - $ 4,000,000
2012 Bond Election Total - $ 4,000,000
The GO amount below represents the funding for the third year of projects approved by the voters in the 2014 Bond Election.
1. Street Reconstructions - $ ...
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