From
Brady Olsen, Treasury and Debt Manager
Title
Consideration of all matters incident and related to amending Ordinance No. 8051 authorizing the City of Grand Prairie, Texas, Sales Tax Subordinate Lien Revenue Refunding Bonds, Series 2009, including the adoption of an ordinance pertaining thereto
Presenter
Brady Olsen, Treasury and Debt Manager
Recommended Action
Approve
Analysis
The city has the opportunity to refinance approximately $7 million in outstanding park venue sales tax bonds. Bank of America is the current holder of the debt and is willing to change the interest rate from 3.77% to 1.6%. This would represent a present value savings of approximately $460,000 or 6.8%, both above policy minimums. Bank of America as also asked that the bonds not be callable, meaning we will be locked into this rate until the debt matures in 2027.
This item will be presented to the Finance and Government Committee on May 5, 2020.
Financial Consideration
We will save approximately $460,000 in interest payments on the debt.
Body
AN ORDINANCE by the City Council of the City of Grand Prairie, Texas amending certain provisions of Ordinance No. 8051 authorizing the issuance of “City of Grand Prairie, Texas, Sales Tax Subordinate Lien Revenue Refunding Bonds, Series 2009” and, except as herein amended and modified, ratifying and confirming the passage and adoption of Ordinance No. 8051; and providing an effective date.
WHEREAS, on December 8, 2009 the City Council (the “Council”) of the City of Grand Prairie, Texas (the “City”), duly passed and adopted Ordinance No. 8051 (the “Original Ordinance”) authorizing the issuance of “City of Grand Prairie, Texas, Sales Tax Subordinate Lien Revenue Refunding Bonds, Series 2009” (the “Bonds”);
WHEREAS, the Bonds were initially issued in the aggregate principal amount of $13,390,000;
WHEREAS, the principal amount of the Bonds currently outstanding is $6,740,000;
WHEREAS, the holder of 100% of the Bonds currently outstan...
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