Subject/Recommendation: |
(First and Final Reading) Approve an Ordinance of the City of Kyle, Texas authorizing the issuance of City of Kyle, Texas General Obligation Refunding Bonds, Series 2016 in an approximate par amount of $8,370,000.00, authorizing the refunding of certain outstanding obligations; levying a continuing direct annual ad valorem tax on all taxable property within the City to pay the interest on said bond and to create a sinking fund for the redemption thereof and the assessment and collection of such taxes; authorizing the delivery of an escrow agreement; authorizing the sale thereof; and enacting provisions incident and related to the issuance of said bonds. The purpose of this refunding is to provide approximately $1,110,000.00 in debt service savings for the City of Kyle. ~ Perwez A. Moheet, CPA, Director of Finance |
Other Information: |
City staff is requesting the City Council's approval of the Bond Ordinance for the actual issuance of approximately $8,370,000.00 General Obligation Refunding Bonds, Series 2016 in order to refund $9,020,000.00 of City's currently outstanding bond debt and achieve approximately $1,110,000.00 in interest cost savings, acceptance of pricing and cost of issuance, approval of all bond documents, closing of bond transaction, and settlement of funds.
On June 7, 2016, the City Council authorized the City's Director Finance to initiate process, prepare bond documents, and incur necessary expenses for the refunding of approximately $9,020,000.00 in outstanding bonds Series 2007, 2008, and 2009 in order to achieve approximately $1,110,000.00 in interest cost savings for the City of Kyle. This included:
- Analyze and select optimal refunding options
- Prepare and solicit underwriter bids
- Select underwriter(s)
- Prepare Official Statement for the refunding bond issuance
- Develop credit documents
- Confer with bond rating agency (Standard & Poor's)
- Obtain credit rating for the refunding bonds
- Issue notice of public hearing
The following City of Kyle outstanding bond debt totaling $9,020,000.00 will be refunded under this authorization:
- $750,000.00 Certificates of Obligation, Series 2007
- $2,160,000.00 Certificates of Obligation, Series 2008
- $6,110,000.00 General Obligation Refunding Bonds, Series 2009
In an effort to provide complete and detailed information pertaining to this bond debt refunding authorization, the following supporting documents are attached to this City Council meeting agenda:
- Bond Ordinance
- Refunding cost savings analysis
- Refunding timetable
- Preliminary Official Statement
- Bond Ratings Report
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