Meeting_Body
FINANCE, BUDGET & AUDIT COMMITTEE
FEBRUARY 14, 2024
Subject
SUBJECT: PROPOSITION A BONDS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT a Resolution (Attachment A) that authorizes the issuance and sale of up to $230 million in aggregate principal amount of the Proposition A First Tier Senior Sales Tax Revenue Refunding Bonds in one or more series, and 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 A First Tier Senior Sales Tax Revenue Refunding Bonds, Series 2014-A, the Proposition A First Tier Senior Sales Tax Revenue Refunding Bonds, Series 2015-A (the "Refunded Bonds"). In addition, the sale of the Bonds may also refinance outstanding Proposition A Commercial Paper Notes (approximately $50 million in Tax-Exempt and $42.50 million in Federally Taxable Commercial Paper Notes), subject to market conditions. Approximately $99.32 million of the outstanding Refunded Bonds are eligible for refunding. Under current market conditions, the issuance of the Proposition A First Tier Senior Sales Tax Revenue Refunding Bonds, Series 2024-A (the "Refunding Bonds") could achieve approximately $10.00 million in net present value savings over the eleven (11) plus year life of the bonds.
Background
BACKGROUND
The Refunded Bonds may be currently refunded in April 2024 as their call date is July 1, 2024. The Debt Policy establishes criteria to evaluate refunding opportunities. The refunding of the Refunded Bonds is estimated to provide net present value savings in excess of the recommended minimum 3% of the refunded per 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 negotia...
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