Summary
To: Town Commission
From: Stefan Massol, Director of Support Services
Date: 10/1/2019
______________________________________________________________________
Subject:
Title
Resolution 2019-21 Authorizing Issuance of Bond Series 2019A
Summary:
Town Commission will decide on issuance of Bond Series 2019A, refunding the outstanding Bond Series 2012 with BB&T.
End
Body
Previous Commission Action: At the previous meeting, Town Commission decided to pursue advanced refunding of the outstanding debt.
Background/Problem Discussion: The current bond with BB&T was issued in 2012 for $10,000,000 at an interest rate of 3.61%. Recent changes in the municipal bond market have given the Town the opportunity to refinance, reducing the interest rate to 2.46%. The new bond would still be deemed bank qualified and tax exempt. Town staff is recommending that the Town pursue this advance refunding with the option to prepay the new bond after five years with no prepayment penalty as provided.
Jay Glover of PFM is serving as the Town’s Financial Advisor and Gray Robinson is providing bond counsel services.
Additional information, including a summary of the process as well as final numbers for the advance refunding are enclosed.
Financial Implications: Refinancing of the existing bond will result in a net present value savings of $525,056.52.
Recommendation: Staff recommends tabling the approval of Resolution 2019-21 Authorizing Issuance of Bond Series 2019A to the October 15, 2019 meeting to follow second reading of Ordinance 527.
Proposed Motion: I move to table the approval of Resolution 2019-21 to the October 15, 2019 meeting, following the second reading of Ordinance 527.