Item No: 5F.
Meeting Date: April 22, 2013
From: William Spinelli, CPA, Director of Finance
Subject: Resolutions authorizing the issuance of the City of Leesburg of not to exceed $22 million in aggregate principal amount of its Utility System Refunding Bonds, Series 2013, to refund the City’s outstanding Utility System Revenue Bonds 2004.
Staff recommends adoption of both the Series and Supplemental Resolutions (the “Resolution”) of the City Commission authorizing the issuance of the City of Leesburg Utility System Refunding Revenue Bonds, 2013 (the “2013 Bonds”) in a total aggregate principal amount of not to exceed $22 million; approving substantially final forms of the Series Resolution and bond purchase agreement; and authorizing and approving other related actions in connection with the issuance of the 2013 bonds.
Approval of the recommendations will allow the issuance of the 2013 Bonds to refund all the outstanding City of Leesburg Utility System Revenue Bonds, 2004 to the extent such refunding of the 2004 Bonds meets the City’s Debt Management Policy savings objectives and the requirements stipulated in the City’s Master Trust Agreement.
The proposed 2013 Bonds will refund $22 million of outstanding 2004 Bonds to the extent that economic savings are realized. Based on the current market pricing, the City estimates refunding savings of approximately $_____. Or approximately __% of the par amount of 2004 bonds refunded. Such estimated savings are well above the City’s savings objectives.
1. Approve both the Series and Supplemental Resolutions; or
2. Such alternative action as the Commission may deem appropriate
Subject to the market, the 2013 Utility System Refunding Revenue Bonds are estimated to produce an average annual savings of $75,000-$100,000 per year to the Water, Wastewater and Gas Funds.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _BLM,___________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________