SSLGC has two outstanding Bonds (2014 Bonds refunded (for savings) the Series 2005 Bonds and 2015 Bonds refunded (for savings) the Series 2007 Bonds AND the purchase of land for the 1st phase of the Guadalupe Project ($7,300,000).) that will become callable in 2022. As in the past, when the Corporation has callable bonds that can be refunded for interest rate savings, the Corporation has replaced the bonds with higher interest rates with lower interest rate bonds. In this instance, expected savings will be approximately $4,500,000 - $5,000,000.  SSLGC is subject to interest rate risk between now and January 25th when the Bonds are priced, so savings could be more or less than what is showing.

The refunding of the outstanding bonds must be approved by both City Councils of Seguin and Schertz.

To take advantage of current low interest rates by refunding SSLGC 2014 and 2015 Series bonds.

Refunding of these bonds has the potential to reduce the debt service of the Corporation by $4,500,000 - 5,000,000 taking advantage of the current low interest rates. 

No action requested at this time.  The parameters of the refunding opportunity will be brought to Council on January 11, 2022.

The Corporation can expect to save an estimated $4,500,000 - $5,000,000 with this refunding, dependent on the current interest rates.

Staff recommends SAMCO proceeding with pursuing the refunding opportunity.