HomeMy WebLinkAboutItem 06 - General Obligation Refunding Bonds, Series 2010 �TEM >.
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JUNE 15, 2010
SUBJECT: GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010
RECOMMENDATION:
City Council to consider approval of an ordinance for the purpose of issuing City of
Grapevine, Texas General Obligation Refunding Bonds, Series 2010, in the aggregate
principal amount not to exceed $12,000,000
BACKGROUND:
This bond ordinance is known as a parameters ordinance. It allows for the refunding of
bonds to take place within a period of time if certain parameters are met. The process is
new to the City of Grapevine, but does allow greater flexibility in the sale of the refunding
bonds. Because of unstable market conditions, the ordinance gives the authority to staff to
choose when to sell the bonds as long as it is within the parameters of the ordinance.
Below are Fisted the draft parameters for this bond ordinance:
1) Principal amount not to exceed $12,000,000.
2) Pricing Officer is the City Manager or the Director of Administrative Services.
3) The final maturity for the bonds is not later than 211512022. It is projected, at current
rates, that this refunding will save $700,000 over the remaining life of the bonds.
4) There is at least a 5% net present value savings.
5) The parameters of the ordinance would not allow a refunding if the savings dropped
below 5%.
6) Authorization to Pricing Officer expires on October 1, 2010.
Staff recommends approval of the ordinance.
A copy of the bond ordinance is in the City Secretary's Office.