Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
APRIL 15, 2020
Subject
SUBJECT: PROPOSITION C BONDS
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
ADOPT a resolution, Attachment A, that:
A. AUTHORIZES the issuance of bonds to refund the Proposition C Series 2010-A Bonds, consistent with the Debt Policy to achieve approximately $4.4 million in net present value savings over the three-year life of the bonds;
B. APPROVES the forms of Notice of Intention to Sell Bonds, Notice Inviting Bids, Supplemental Trust Agreement, Escrow Agreement, Continuing Disclosure Certificate, Bond Purchase Contract and Preliminary Official Statement on file with the Board Secretary as set forth in the resolution all as subject to modification as set forth in the resolution; and
C. AUTHORIZES taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of bond documentation associated with the issuance of the refunding bonds.
(REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE)
Issue
ISSUE
Low interest rates offer an opportunity for Metro to lower its debt service costs by refunding on a current basis the outstanding Proposition C Sales Tax Revenue Refunding Bonds, Senior Bonds, Series 2010-A (the "2010-A Bonds"). Approximately $37.15 million of the outstanding 2010-A Bonds can be refunded. Under current market conditions, the issuance of the Proposition C Sales Tax Revenue Refunding Bonds, Senior Bonds (the "Refunding Bonds") would achieve approximately $4.4 million in net present value savings over the three plus year life of the bonds.
Background
BACKGROUND
The 2010-A Bonds may be current refunded in early May 2020 as their call date is
July 1, 2020. The Debt Policy establishes criteria to evaluate refunding opportunities. The refunding of the 2010-A Bonds is currently estimated to provide net present value savings in excess of the minimum 3% of the refunded par amount set forth in...
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