Fiscal Note
This resolution authorizes the issuance of $13.1 million in water utility taxable advance refunding revenue bonds to be repaid over a twelve year amortization period. Proceeds will be used to advance refund 2011 series Water Utility revenue bonds at a lower interest rate. The net present value savings of the refunding is $663,100 (4.8% of refunded principal and interest); the cash flow savings (prior issue debt service vs. refunded debt service) is $1.1 million, or approximately $90,000 annually. The true interest rate on the entire issuance is 2.35%. Annual interest rates range from 1.7% to 2.65%. Net interest costs over the twelve year life of the bonds is $2.1 million. Debt service on the bonds will be approximately $1.2 million annually, paid from water utility revenues. The bonds received an Aa2 rating with a Stable outlook from Moody's Investors Service.
Title
Resolution Authorizing and Providing for the Sale and Issuance of $13,140,000* Taxable Water Utility Revenue Refunding Bonds, Series 2019B, and All Related Details
Body
See attached document.