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File #: 2022-0114   
Type: Resolution Status: Passed
File created: 2/18/2022 In control: Board of Directors - Regular Board Meeting
On agenda: 5/26/2022 Final action: 5/26/2022
Title: ADOPT a Resolution (Attachment A) that authorizes the issuance and sale of up to $67 million in aggregate principal amount of the Proposition C Sales Tax Revenue Refunding Bonds in one or more series, and the taking all other actions necessary in connection with the issuance of the refunding bonds. (REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE)
Sponsors: Finance, Budget and Audit Committee
Indexes: Debt, Policy, Proposition C, Request For Proposal, Resolution
Attachments: 1. Attachment A - Authorizing Resolution
Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MAY 18, 2022

Subject
SUBJECT: PROPOSITION C BONDS

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION
Title
ADOPT a Resolution (Attachment A) that authorizes the issuance and sale of up to $67 million in aggregate principal amount of the Proposition C Sales Tax Revenue Refunding Bonds in one or more series, and the taking all other actions necessary in connection with the issuance of the refunding bonds.

(REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE)

Issue
ISSUE

Metro may lower its debt service costs by refunding, on a current basis, the outstanding Proposition C Sales Tax Revenue Refunding Bonds, Senior Bonds, Series 2012-A and Series 2012-B (the "2012-A&B Bonds"). Approximately $54.57 million of the outstanding 2012-A&B Bonds are eligible for refunding. Under current market conditions, the issuance of the Proposition C Sales Tax Revenue Refunding Bonds, Senior Bonds (the "Refunding Bonds") could achieve approximately $2.6 million in net present value savings over the six (6) plus year life of the bonds.

Background
BACKGROUND

The 2012-A&B Bonds may be current refunded in mid May 2022 as their call date is
July 1, 2022. The Debt Policy establishes criteria to evaluate refunding opportunities. The refunding of the 2012-A&B Bonds is currently estimated to provide net present value savings in excess of the minimum 3% of the refunded par amount set forth in the Debt Policy criteria for evaluating refunding opportunities.

Discussion
DISCUSSION

The Refunding Bonds will be structured as fixed rate bonds and will be sold using a negotiated sale method. If market conditions change suddenly, a negotiated sale provides Metro the flexibility to alter the sale date and/or bond structure, as needed. A negotiated sale method also allows Metro to advance its DBE/SBE/DVBE firm participation goals. The underwriters will pre-market the issue to target as many investors as possible, assist wit...

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