Metro - File #: 2023-0004

• File #: 2023-0004
• Type: Resolution
• Status: Passed
• File created: 1/4/2023
• In control: Board of Directors - Regular Board Meeting
• On agenda: 3/23/2023
• Final action: 3/23/2023
• Title: ADOPT a Resolution (Attachment A) that authorizes the issuance and sale of up to $330 million in aggregate principal amount of the Proposition C Sales Tax Revenue Refunding Bonds in one or more series, and the taking of all other actions necessary in connection with the issuance of the refunding bonds. (REQUIRES SEPARATE, SIMPLE MAJORITY BOARD VOTE)
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Budgeting, Debt, Policy, Proposition C, Request For Proposal, Resolution, Strategic planning

Date	Action By	Action	Result
3/23/2023	Board of Directors - Regular Board Meeting
3/15/2023	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET & AUDIT COMMITTEE
MARCH 15, 2023

Subject
SUBJECT: PROPOSITION C BONDS

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
ADOPT a Resolution (Attachment A) that authorizes the issuance and sale of up to $330 million in aggregate principal amount of the Proposition C Sales Tax Revenue Refunding Bonds in one or more series, and the taking of 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 Bonds, Senior Bonds, Series 2013-B, the Proposition C Sales Tax Revenue Refunding Bonds, Senior Bonds, Series 2013-C, and the Proposition C Sales Tax Revenue Refunding Bonds, Senior Bonds, Series 2014-A (the "Refunded Bonds"). Approximately $313.6 million of the outstanding Refunded 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 $42.68 million in net present value savings over the fifteen (15) plus year life of the bonds.

Background
BACKGROUND

The Refunded Bonds may be refunded in April 2023 as their call date is July 1, 2023. The Debt Policy establishes criteria to evaluate refunding opportunities. The refunding of the Refunded 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 advan...