Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval of a Resolution confirming final numbers concerning Water And Sewerage Revenue Refunding Bond, Series 2020b
body
Requirement for Board Action (Cite specific Board policy, statute or code requirement)
Section 1.150-2 Treasury Regulations, 26 CFR § 1.150-2.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Summary & Background
Finance recommends confirmation of the final pricing of the 2020B Water and Sewerage revenue refunding bonds.
Scope of Work: The Board of Commissioners approved Agenda item 20-0211, March 18, 2020 to authorize the issuance of the 2020B Series Water and Sewerage Revenue Refunding Bonds to refinance the existing 2011 Water and Sewerage Revenue Refunding bond in order to obtain debt service savings due to lower current interest rates. The Series 2020B bonds were priced to TD Bank, N.A. at a final interest rate of 1.04%, which resulted in a total net present value debt service savings of $20.7 million. This represents a 15.128% debt service savings.
Community Impact: The refinanced 2011 bonds will save the Water and Sewerage System $20.7 million on a present value basis.
Department Recommendation: Finance recommends approval.
Project Implications: Taking advantage of lower interest costs by refinancing is intended to lower System financial costs and was contemplated in overall cash requirements for the System.
Community Issues/Concerns: None
Department Issues/Concerns: None