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GARLAND
CITY COUNCIL STAFF REPORT
Agenda Item 7.
City Council Regular Session
Meeting Date:
04/02/2024
Title:
Consider an ordinance to issue Water and Sewer System Revenue Refunding Bonds, Series 2024
Submitted By:
Matt Watson
Strategic Focus Area
:
Sound Governance and Finances
Issue/Summary
Consider refunding approximately $55.5 million of Water and Sewer System Commercial Paper Notes, Series 2015 and Water and Sewer System Revenue Bonds, Series 2014 with Water and Sewer System Revenue Refunding Bonds, Series 2024. The purpose of this transaction is to refund a portion of variable rate commercial paper notes with fixed rate long-term debt and to generate debt service savings. In addition, the Council is requested to consider appointing a pricing officer and delegating to the pricing officer the authority to approve on behalf of the City the terms of sale of these bonds and establishing parameters for the approval of such matters by the pricing officer.
Background
The Water and Sewer System Commercial Paper Program finances various capital improvement projects for the Water and Sewer System. Funding capacity for this program is $90 million. Due to current market conditions, the City of Garland has an opportunity to refund $45 million of variable rate commercial paper notes with fixed rate long-term Water and Sewer System Revenue Refunding Bonds. In addition, due to current market conditions, the City of Garland has an opportunity to refund approximately $10.5 million Water and Sewer System Revenue Bonds, Series 2014.
Consideration / Recommendation
The Refunding Bonds will be fixed rate debt with a 20-year amortization period.
Attachments
Ordinance
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