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GARLAND POLICY REPORT
			Work Session Item 3.h.
City Council Work Session Agenda
Meeting Date: 01/09/2023   Item Title:    Optional Redemption of Tax Notes Submitted By: Matt Watson Strategic Focus Areas: Sound Governance and Finances
ISSUE
When Council approved the issuance of $36,980,000 Tax Notes, Series 2022 on September 9, 2022, it was contemplated that the City would exercise the call provision to redeem the notes prior to the scheduled maturity date of November 15, 2023. Staff requests Council consider approving a resolution to redeem the Tax Notes, Series 2022 as contemplated.
OPTIONS
Call the Tax Notes, Series 2022 on February 15, 2023. Allow the Tax Notes, Series 2022 to mature on November 15, 2023.
RECOMMENDATION
Unless otherwise directed by Council, this item will be scheduled for formal consideration at the January 17, 2023 Regular Meeting.
BACKGROUND
The debt service savings generated from the General Obligation Commercial Paper program created additional debt capacity of $36,980,000 in the FY 2022-23 budget. On September 9, 2022 City Council approved the issuance of a Tax Note, Series 2022 in the amount of $36,980,000 to fund additional infrastructure improvements. Tax Note, Series 2022 was issued with the intent of exercising the option to early redeem the tax notes.
CONSIDERATION
If Council approves this request to redeem the tax notes, the City will save approximately $1 million in interest cost paid from the General Obligation Interest & Sinking Fund.
Attachments Draft Resolution

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