Title
An ordinance of the City of Mesquite, Texas, authorizing the issuance of City of Mesquite, Texas, Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 2025 in the aggregate principal amount not to exceed $36,800,000; approving an official statement; awarding the sale thereof; making provisions for the security thereof; authorizing the execution and delivery of a paying agent agreement, deposit agreement and bond purchase agreement; providing an effective date; approving and enacting other provisions relating thereto.
Body
The City regularly monitors current outstanding bonds for potential refunding opportunities that can generate savings in total debt service costs, which helps keep water and sewer rates lower.
The attached parameter ordinance authorizes Council to delegate the approval of the sale of Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 2025 to the Director of Finance, an Assistant City Manager, or their designee, as authorized by Chapters 1207, 1502 and 1371, Texas Government Code, subject to all conditions as specified in the refunding ordinance.
The pricing conditions and parameters include: a true interest rate of the bonds not to exceed 5.25 percent; a total aggregate bond principal amount not to exceed $36,800,000, with the principal amount of bonds issued for new construction not to exceed $18,000,000 and the principal amount for refunding bonds not to exceed $18,800,000, in combination with the net premium from the sale, and to produce a net present value debt service savings of at least 2 percent of the principal amount of the refunded bonds; a maximum maturity limit of no later than September 1, 2045, for any bond; and a credit rating among the four highest rating categories for long-term obligations as assigned by a nationally recognized rating agency.
The refunded bonds candidates include:
* Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 2012
* Wate...
Click here for full text