File #: 2023-0740   
Type: Resolution Status: Passed
File created: 12/5/2023 In control: Finance, Budget and Audit Committee
On agenda: 2/14/2024 Final action: 2/22/2024
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)
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Budgeting, Debt, Policy, Proposition A, Request For Proposal, Resolution, Strategic planning
Attachments: 1. Attachment A - Authorizing Resolution, 2. Presentation, 3. File 1) Forty-First Supplemental Trust Agreement, 4. File 2) Forty-Second Supplemental Trust Agreement, 5. File 3) Preliminary Official Statement, 6. File 4) Purchase Contract, 7. File 5) Continuing Disclosure Certificate, 8. File 6) Escrow Agreement (2014-A), 9. File 7) Escrow Agreement (2015-A)
Related files: 2024-0197
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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