Title
Consideration of and action on an ordinance for the cash redemption of Certificates of Obligation, Series 2017.
Body
Summary:
On January 17, 2017, the Deer Park City Council approved the issuance of Certificates of Obligation, Series 2017, in the amount of $2,700,000 for the construction of parks and recreation improvement projects, specifically the Girls Softball Renovations at Youth Sports Complex, one of the Type B projects approved by the voters on May 9, 2015. The certificates were issued through a private placement via a competitive bidding process, and funding of the debt service payments and associated issuance costs for these certificates are from the dedicated 0.50% sales and use tax revenues of the Deer Park Community Development Corporation (DPCDC).
The cash defeasance of Certificates of Obligation, Series 2017 is necessary for the Deer Park Community Development Corporation (DPCDC) to have sufficient debt capacity for the issuance of Certificates of Obligation, Series 2022. The Certificates of Obligation, Series 2017 was originally to be fully amortized in March 2024. Total debt obligations for Certificates of Obligation, Series 2017 are $940,988, of which will cost $928,647 to defease in fiscal year 2021-2022. The cash defeasance results in an interest savings of $12,341.
Fiscal/Budgetary Impact:
Based on the parameters of the cash redemption ordinance, expenditures not to exceed $928,647 for the defeasance of Certificates of Obligation, Series 2017.
Recommended action
Approve the cash redemption ordinance.