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AI# 12907  Regular City Council Meeting 7.7. 10/08/2024:

Information

Agenda Item

Resolution - Lubbock Power & Light: Consider a resolution authorizing the redemption of the outstanding Series 2015 Electrical Light and Power Systems Revenue Bonds.

Item Summary

The Electric Light and Power System Revenue Bonds, Series 2015 (“Bonds”), were issued for the purposes of (i) acquiring, purchasing, constructing, improving, renovating, enlarging and/or equipping property, buildings, structures, facilities, and/or related infrastructure for Lubbock Power & Light (LP&L).   The preliminary plan of finance contemplates that the outstanding bonds maturing on April 15, 2026, in the years 2026 through 2035 can be called and redeemed on April 15, 2025. The redemption of the Series 2015 Bond based on its 10-Year callable period, in the amount of $7,660,000, would provide $2.1M in future interest costs at 5% for the remaining life of the Bond.  The reserve funds used to redeem this bond are expected to be earning a rate less than 5% in interest.

Fiscal Impact

The $7,660,000 redemption will be paid out of reserve funds with savings of $2,097,000 in future interest costs

Staff/Board Recommending

Joel Ivy, Director of Electric Utilities Electric Utility Board

Attachments Resolution - Redemption of Revenue Bond - CC Resolution - EUB

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