Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving Resolutions Adopted by the Board of Directors of the Mansfield Economic Development Corporation Authorizing the Issuance of Mansfield Economic Development Corporation Sales Tax Revenue Refunding Bonds, New Series 2015 and Mansfield Economic Development Corporation New Sales Tax Revenue Refunding Bonds, Taxable New Series 2015; Approving the Issuance of the Bonds and the Plans of Financing Authorized Thereby and the Financing Documents
Requested Action
Approve the action of the MEDC which authorized the City of Mansfield, Texas Economic Development Corporation to refund or refinance existing bonds with newly issued bonds.
Recommendation
Approve the action of the MEDC which authorized the City of Mansfield, Texas Economic Development Corporation to refund or refinance existing bonds with newly issued bonds.
Description/History
Interest rates in the Municipal Bond Market have been fairly low over the past several years and because of these low rates the MEDC is able to issue new bonds to pay off old bonds that have higher interest rates. The refunding is expected to create a net present values savings of $757,824.08 and $292,079.88 for the respective issues being refunded. See the attached schedules for more detail on the savings estimates.
· Total Expected Savings $1,049,903.96
· Total Expected Average Annual Savings - $120,454.92
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 2004A Revenue Refunding Series, $2,880,000 and the Revenue Refunding Taxable Series 2004, $5,305,000.
Contact staff for a copy of the Preliminary Official Statement.
Justification
The City of Mansfield, Texas is creating opportunities for savings by refunding old deb...
Click here for full text