Title
Resolution - A Resolution Approving Resolutions Adopted by the Board of Directors of the Mansfield Park Facilities Development Corporation Authorizing the Issuance of Mansfield Park Facilities Development Corporations Sales Tax Revenue Refunding and Improvement Bonds, New Series 2016 and Mansfield Park Facilities Development Corporation New Sales Tax Revenue Refunding and Improvement Bonds, Taxable New Series 2016; Approving the Issuance of the Bonds and the Plans of Financing Authorized Thereby and the Financing Documents
Requested Action
Vote on the Resolution authorizing the City of Mansfield, Texas to approve a Resolution adopted by the Board of the Mansfield Parks Development Corporation to issue Sales Tax Revenue Refunding and Improvement Bonds, New Series 2016, and Sales Tax Revenue Refunding and Improvement Bonds, Taxable New Series 2016.
Recommendation
Approve the action of the MPFDC, which authorized the City of Mansfield, Texas Park Development Corporation to refund or refinance existing bonds with newly issued bonds and to issue new bonds for park and recreational improvements - pond branch linear trial expansion in downtown Mansfield and Mansfield Fieldhouse.
Description/History
Before the city Council’s action tonight the MPFDC will have taken action on the issuances of bonds.
New Money -
The city is building Mansfield Fieldhouse and extending the linear trial in downtown Mansfield.
Fieldhouse
Fieldhouse is will provide more volleyball and basketball courts for the city for public play while creating an economic development engine for the city. Fieldhouse is expected to generate over a million visitors a year to the Mansfield Fieldhouse. The city has developed a public private partnership with the owners of Fieldhouse, USA. They will pay for the operations and maintenance of the Mansfield Fieldhouse and the city will construct the facility. MPFDC is issuing $12,000,000 to construct Mansfield Fieldhouse.
Linear Trial
The city has moved to revitalize downtown Mansfield. The efforts have seen a new restaurant, available land, new residential properties, community amphitheater, conversion of a state highway to a local thoroughfare, and the extension of the linear park from Rose Park. The MPFDC is issuing $3,420,000 to improve the linear trial along Pond Branch.
Refunding(s)
Interest rates in the Municipal Bond Market have been lower over the past several years because the accommodative monetary policy of the Reserve Bank as a result of the Great Recession. These low rates have created the opportunity for the MPFDC to issue new bonds to pay off older outstanding bonds that have higher interest rates to save on the MPFDCs annual debt service costs. There are two refunding(s) in the amount of $2,365,000* and $3,450,000*. The refunding is expected to create a net present values savings of $213,289.20* and $263,542.17* for the respective issues being refunded or $476,831.37* collectively. See the attached schedules for more detail on the savings estimates.
• Total Expected Savings $473,831.37*
• Total Expected Average Annual Savings - $45,317.45*
*Note - amounts are expected and subject to change based on the actual results of the sale.
Summarizing: The City is taking advantage of market conditions to create interest savings by refunding old bonds with new bonds.
The Series of Bonds being refunded: the 2007A Taxable Revenue Series, $2,070,000, and the Revenue Series 2006 and 2007, $2,245,000 and $1,210,000, respectively.
Justification
Refunding
The City of Mansfield, Texas is creating opportunities for savings by refunding old debt with new debt. The New Bonds allow for the MPFDC to pay off the respective old bonds and pay less debt service each year with the newly issued bonds.
New Improvements
Linear trial expansion - Pond Branch downtown Mansfield, Texas
Funding Source
City of Mansfield’s Park Development Corporation
Prepared By
Peter Phillis, CPA, Director of Business Services
817-276-4261