Title
Ordinance - Ordinance Authorizing the Issuance and Sale of City of Mansfield, Texas, Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 2016; Providing for the Security for and Payment of Said Bonds; Prescribing the Form of Said Bonds; Approving Execution and Delivery of an Escrow Agreement and a Bond Purchase Agreement; Approving the Offical Statement; Approving an Engagement Letter; and Enacting Other Provisions Relating Thereto
Requested Action
Approval of the ordinance.
Recommendation
Staff recommends the approval of the ordinance
Description/History
The city of Mansfield, Texas is responsible for managing the city’s municipal water & sewer system within the city of Mansfield, Texas. The city water & sewer system is funded by Ordinance as defined by the city Council of the city of Mansfield, Texas.
Refunding(s)
The city’s water and wastewater system have several issuances outstanding. The issuances that are recommended for refunding: Revenue Refunding Bonds Series 2005 $1,030,000, Revenue Bonds Series 2008, $17,400,000. The combined amount being refunded is $18,430,000.
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 city issue new bonds to pay off older outstanding bonds that have higher interest rates to save on the city’s water and sewer annual debt service costs. This refunding or refinancing is expected to average annual savings in the amount of $246,010.89* over the remaining term of the bonds. Moreover the total expected savings before final pricing or sale of the new bonds is $2,884,705.23*. These savings are preliminary estimates and could change based on actual sale results on the day of the bond sale as conditions of the sale depend upon the conditions in the market on the day of the sale.
Note - City is taking adv...
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