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2021-01-13 CC Packet
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2021-01-13 CC Packet
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reviewing the refunding bonds, we looked at the following <br />two approaches: <br />1. Issuance of refunding bonds with a bond rating (note the City has an existing AA bond <br /> <br />2. Issuance of refunding bonds without a bond rating <br /> <br />e details the approximate debt service savings <br />that the City could realize by issuing new refunding bonds. <br />Series2021ARefundingBond(refundingof2013A) <br /> <br />NewExistingEst.NewPresentPV <br />PrincipalInterestFinalInterestTotalNetValueSavings <br />AmountRateMaturityRateReductionSavings% <br />NonRated$1,320,0002.76%20290.66%$83,675$86,6186.16% <br />Rated(AA)$1,335,0002.76%20290.41%$86,703$88,7386.25% <br />ty consider the issuance of non-rated bonds. <br />Both options detailed above provide the City the ability to restructure the 2013A Bond issue. The <br />benefit of the new structure is two-fold; first it <br />service tax levy more efficiently without sharp increases or decreases and second, to achieve a debt <br />service savings. The bond rating fee for this issue size would be $10,500. The issuance of non- <br />rated bonds provides a comparable savings while allowing the bonds to price one Council meeting <br />thth <br />earlier (Feb. 24 non-rated / March 10 rated). Pricing earlier may provide the City the ability to <br />potentially reduce exposure in a fluctuating interest rate market. <br /> <br /> <br /> <br />Thank you. <br /> <br /> <br />
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