As previously briefed at the Council’s September 22^nd Regular meeting, the City has two outstanding debt obligations that can be refunded beginning November 3, 2020, to create annual debt service savings.  The Refunded Obligations being considered are the General Obligation Bonds, Series 2011 and the General Obligation Refunding Bonds, Series 2011A.  Savings generated from the refunding of the Refunded Obligations will be for the benefit of the City’s I&S Fund since those obligations are paid from the I&S Taxes.
 

To lower the interest rates on the City's 2011 debt.

Lower interest payments will lower the annual debt payments made by the City with property taxes.

This ordinance will approve issuance of refunding bonds that will replace the existing debt with new with a lower interest rate, lower annual payments, but keep the same payback period.

The City can expect to save roughly $90,000 per year (net of all costs) for 15 years at today’s interest rates.  Total savings are estimated in excess of $1,340,000.

Staff recommends authorizing City Staff and Consultants to accept the low bid as presented and lock in interest rates that generate the savings as described by SAMCO Capital in their presentation to be made at the October 27, 2020, regular meeting of the City Council.

Motion "I move to adopt an ordinance authorizing the issuance of City of Schertz, Texas General Obligation Refunding Bonds, Series 2020"