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This action authorizes the sale, issuance, and delivery of Taxable Excise Tax Revenue Refunding Obligations, Series 2021 (“Obligations”) in the amount not to exceed $25,800,000 in order to refund Series 2011 Revenue Bonds.

ADOPT RESOLUTION NO. 2021-2135 AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT, A TRUST AGREEMENT, A DEPOSITORY TRUST AGREEMENT, A CONTINUING DISCLOSURE CERTIFICATE, AN OBLIGATION PURCHASE AGREEMENT AND FORMS OF RELATED OBLIGATION DOCUMENTS; APPROVING A PRELIMINARY OFFICIAL STATEMENT; APPROVING THE SALE, EXECUTION AND DELIVERY OF TAXABLE EXCISE TAX REVENUE REFUNDING OBLIGATIONS, SERIES 2021, EVIDENCING A PROPORTIONATE INTEREST OF THE OWNERS THEREOF IN AN AGREEMENT BETWEEN THE CITY OF GOODYEAR, ARIZONA AND A TRUSTEE; AUTHORIZING AND RATIFYING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THE RESOLUTION. (Jared Askleson, Finance Manager)
 

As of February 8, 2021, the refunding is estimated to result in a net savings of approximately $2,235,000.  This savings is based on a decrease in the average interest rate of 4.7% to an estimated all in true interest cost of 1.2%.  Actual savings will be based on interest rates in April 2021.  Excise taxes, including local and state shared sales taxes, state shared income and vehicle license taxes, fine and forfeitures, and franchise taxes are used to secure the payment of the Obligations.

The City previously issued tax exempt excise tax supported revenue bonds in 2011.  Issuing the Obligations as taxable bonds allows the advanced refunding of the 2011 bonds at this time.  Refunding the 2011 bonds will decrease the effective interest rate by approximately 3.5% and result in a 9.4% net savings in costs over the life of the bonds.  The Obligations will be on  parity with other excise tax supported bonds issued in 2016.  This means that investors in the new Obligations will have the same rights to repayment as the 2016 bonds.