CC MEETING: September 9, 2025
DATE: August 19, 2025
TO: Erin Rinehart, City Manager
FROM: Diana K. Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider A Resolution Authorizing The Redemption Of A Portion Of The Outstanding City of Carrollton, Texas General Obligation Improvement Bonds, Series 2014, And Resolving Other Matters Incident And Related Thereto; and Providing An Effective Date.
Body
BACKGROUND:
The City plans to redeem prior to maturity a portion of its General Obligation Improvement (G.O.) Bonds, Series 2014. The Series 2014 G.O. Bonds currently have six outstanding maturities (2026–2031), totaling $6,305,000 in par value, with coupon rates ranging from 3.00% to 3.75%. The 2014 G.O. Bonds are currently callable and able to be redeemed without penalty. The City intends to redeem $1,000,000 in principal from two maturities (2030 and 2031), both carrying an interest rate of 3.75%.
This partial redemption will result in a total payment of approximately $1,001,500, including up to $1,500 in issuance-related redemption costs. The redemption will be funded through levied ad valorem taxes in fiscal year 2026 for debt service purposes.
FINANCIAL IMPLICATIONS:
The partial redemption of the G.O. Bonds, Series 2014 is expected to generate approximately $193,875 in net debt service savings, will reduce outstanding debt, and will support effective management of the City’s debt service tax rate.
IMPACT ON COMMUNITY SUSTAINABILITY:
The partial redemption of the G.O. Bonds, Series 2014 improves the City’s financial position and sustainability.
STAFF RECOMMENDATION/ACTION DESIRED:
Consider the adoption of a resolution authorizing the redemption of a portion of the outstanding 2014 G.O. Bonds and resolving other matters incident and related thereto.