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File #: 22-4867    Version: 1 Name: Resolution - A Resolution of the City Council of the City of Mansfield, Texas Calling Certain Outstanding Obligations for Redemption and Defeasance; Authorizing the Deposit of Funds with the Paying Agent/Registrar; and Resolving Other Matters Related Ther
Type: Resolution Status: Passed
File created: 8/30/2022 In control: City Council
On agenda: 9/12/2022 Final action: 9/12/2022
Title: Resolution – A Resolution of the City Council of the City of Mansfield, Texas Calling Certain Outstanding Obligations for Redemption and Defeasance; Authorizing the Deposit of Funds with the Paying Agent/Registrar; and Resolving Other Matters Related Thereto
Sponsors: Troy Lestina
Attachments: 1. Resolution

Title

Resolution – A Resolution of the City Council of the City of Mansfield, Texas Calling Certain Outstanding Obligations for Redemption and Defeasance; Authorizing the Deposit of Funds with the Paying Agent/Registrar; and Resolving Other Matters Related Thereto

 

Requested Action

Approve the Redemption of the Outstanding Bonds for the purpose of debt service savings.

 

Recommendation

Staff recommends that the City Council of the City of Mansfield, Texas approve the Redemption of the Outstanding Bonds for the purpose of debt service savings.

 

Description/History

The city has determined that it is economically feasible to redeem some of its current outstanding obligations for debt service savings. The savings will amount to approximately $563,907.50.

 

The outstanding bonds have a par amount of $2,600,000, Series 2012 and Series 2013. The existing term of the current debt is not being extended. The average interest of the existing bonds being redeemed is 3.44%. The average maturity of the existing bonds being redeemed is 6.3 years.

 

Note – amounts are expected and subject to change based on actual results of the sale.

 

Justification

The City of Mansfield, Texas is creating opportunities for savings by redeeming debt prior to its maturity date.

 

Funding Source

The City Mansfield, Texas as defined by statute or Ordinance – General Fund – I&S portion of the ad valorem tax rate as adopted by the City Council.

 

Prepared By

Troy Lestina, Chief Financial Officer

817-276-4258