Title
Consideration of and action on an ordinance authorizing the issuance of City of Deer Park, Texas Limited Tax Refunding Bonds, Series 2022; levying a tax in payment thereof; authorizing the redemption prior to maturity of certain outstanding obligations; providing for the award and sale of said bonds in accordance with certain parameters; and enacting other provisions relating thereto.
Body
Summary: The City’s Financial Advisor, John Robuck, from BOK Financial Securities, Inc., has identified an opportunity to take advantage of current market rates and consider refunding a portion of outstanding debt at a lower interest rate for interest cost savings currently estimated at $210,700. Mr. Robuck has identified a total refunding of $5,740,000 representing the outstanding principal maturing between the years 2024-2034 on the Certificates of Obligation, Series 2014 and the General Obligation and Refunding Bonds, Series 2014, collectively. This refunding would be accomplished through the issuance of Limited Tax Refunding Bonds estimated in the principal amount of $5,310,000. During the workshop meeting on August 2, 2022, Mr. Robuck and the City's Bond Counsel, Jonathan Frels, from Bracewell LLP, presented a tentative schedule of events and answered questions related to this refunding opportunity.
Fiscal/Budgetary Impact:
Payment of the debt service and issuance costs related to these bonds are payable from ad valorem tax revenues.
Recommended action
Approve the ordinance authorizing the issuance of City of Deer Park, Texas Limited Tax Refunding Bonds, Series 2022 and providing for the award and sale of said bonds in accordance with the parameters specified therein.