CC MEETING: August 20, 2024
DATE: August 5, 2024
TO: Erin Rinehart, City Manager
FROM: Diana K. Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider A Resolution Authorizing The Defeasance and Redemption Of A Portion Of The Outstanding City of Carrollton, Texas, General Obligation Improvement and Refunding Bonds, Series 2015, Approving And Authorizing The Execution Of An Escrow Agreement For The Deposit Of Funds In An Amount Sufficient To Defease Such Bonds; And Resolving Other Matters Incident And Related Thereto; And Providing An Effective Date.
Body
BACKGROUND:
The City is planning to redeem a portion of its General Obligation Improvement and Refunding (G.O.) Bonds, Series 2015 on August 15, 2025.
The G.O. Bonds, Series 2015 has eleven maturities (2025-2035) currently outstanding with a total of $17,697,992.56 in par outstanding and coupon rates of 2.2 to 5.00 percent. The City is planning to partially defease five maturities (2031 to 2035) with a total par value of $4,725,000.00 and interest rates of 3.25 to 5.00 percent.
The partial defeasance of the G.O. Bonds, Series 2015, will result in a payment of approximately $4,815,181.25 including $90,181.25 of accrued interest and up to $5,000 in defeasance and redemption cost of issuance. The defeasance will result in $1,559,150.00 of net present value savings. This redemption will be funded with levied ad valorem tax in fiscal year 2025 for debt service purposes.
FINANCIAL IMPLICATIONS:
The partial defeasance of the G.O. Bonds, Series 2015 will result in approximately $1,559,150.00 of net present value savings.
IMPACT ON COMMUNITY SUSTAINABILITY:
The partial defeasance of the G.O. Bonds, Series 2015 improves the City's financial position and sustainability.
STAFF RECOMMENDATION/ACTION DESIRED:
Consider the adoption of a resolution authorizing the defeasance and redemption of a portion of the outstanding 2015 G.O. Bonds, approving and authorizing the execution of a...
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