Print
Reading Mode
Back to Calendar
Return
AI# 11347
Regular City Council Meeting
5.6.
02/14/2023:
Information
Agenda Item
Resolution - Finance:
Consider a resolution authorizing the refunding of Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2014 (Conjunctive Use Groundwater Supply Project).
Item Summary
At the June 14, 2022 meeting of the City Council, the Canadian River Municipal Water Authority (CRMWA) presented to the City Council, a resolution seeking authorization to refund their Series 2014 Bonds. CRMWA informed all Member Cities of the Conjunctive Use Groundwater Supply Project, and all Member Cities agreed at that time, given that the market conditions supported the transaction.
With each Member City passing a resolution to that effect, the CRMWA Board passed a resolution in July authorizing the refunding of outstanding bonds. That authority is valid for one year from its passage. The Member City authorization resolutions, however, were drafted by CRMWA's Bond Counsel, with the assumption that the transaction would price in calendar year 2022, rather than drafting the resolution to also contemplate the transaction to take place in calendar year 2023. Therefore, CRMWA and CRMWA's Bond Counsel are asking all Member Cities to adopt an updated resolution that revises CRMWA's authority to price the refunding transaction up through July 2023.
No changes are made to the parameters that must be met to conduct this refunding transaction. The minimum present value debt service savings of no less than 3.00% must be achieved, and the principal amount of the transaction cannot exceed $13,350,000.
Fiscal Impact
The fiscal impact to the City of Lubbock will be a net savings, should the refunding transaction go to market. The amount of savings will depend on market conditions.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Resolution - CRMWA 2023 Refunding
Certificate - City Secretary
AgendaQuick ©2005 - 2024 Destiny Software Inc.
All Rights Reserved.