Title
Conduct a public hearing and consider approving an ordinance on first and final reading with the caption reading: ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF PFLUGERVILLE, TEXAS, LIMITED TAX AND REFUNDING BONDS, SERIES 2016; AUTHORIZING THE LEVY OF AN AD VALOREM TAX IN SUPPORT OF THE BONDS; APPROVING AN OFFICIAL STATEMENT, A PURCHASE AGREEMENT, AN ESCROW AGREEMENT AND A PAYING AGENT/REGISTRAR AGREEMENT; CALLING CERTAIN OBLIGATIONS FOR REDEMPTION AND AUTHORIZING OTHER MATTERS RELATED TO THE BONDS.
Summary
The issuance of these bonds will be used for street and park projects authorized by citizens in the 2014 and 2015 bond elections and to refund existing City debt. This is the second issuance related to the 2014 election, including approximately $10.5 million for street projects ($28 million authorized and a first issuance of $10 million) and approximately $18.5 million for parks projects ($25 million authorized and a first issuance of $2 million). This is the first issuance related to the 2015 election, including approximately $2.93 million for street projects. After this issuance, $18.75 million of authorized but unissued debt will remain, approximately $7.5 million for streets 2014 election, $4.5 million for parks 2014 election, and $6.6 million for streets 2015 election.
Current market conditions appear favorable to redeem certain bonds and refinance the outstanding principal at a lower interest rate. Currently, the City's Financial Advisor estimates that $15.8 million of existing debt can be refinanced. The decision whether or not to issue refunding bonds will be made at the time of the bond sale and will depend on the net present value savings calculated on market rates on that day.
The attached ordinance has been prepared by bond counsel. The pricing terms of the bonds will be finalized and incorporated into the ordinance on June 28th after the obligations have been priced. Moody's Investor Services and S&P Global Ratings have both assig...
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