AGENDA DATE: 3/2/2022
TITLE:
Title
Resolution Authorizing the Issuance of Refunding Bonds
BODY
SUBJECT/PROPOSAL/REQUEST: Request authorization to issue revenue refunding bonds via the Economic Development Authority of Albemarle County to refinance the existing 2013 Bond Issue
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Kamptner, Birch, Sumner, Bowman, Greene
PRESENTER (S): Nelsie Birch, CFO and Davenport & Co., Financial Advisors
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: In Fiscal Year 2013 (FY 13), the County issued a tax-exempt Revenue Bond through the Economic Development Authority of Albemarle County (EDA) to fund local government and school projects. The 2013 bond issue is currently callable on June 1, 2022. Under current federal legislation, a bond refunding can retain its tax-exempt status if closing on the refunding bonds occurs within 90 days of the call date. At this time, the County has the opportunity to lock in advantageous long-term interest rates to refinance the existing bonds at lower rates for debt service savings over the remaining term of the bond (next 11 years).
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: Staff recommends the Board approve the issuance of revenue refunding bonds to refinance the 2013 bonds at lower interest rates, in an amount not to exceed $21.5 million, including cost of issuance.
The refinancing includes all of the outstanding Public Facility Revenue Bonds (Albemarle County Project), Series 2013 (the "2013 Bonds") that are subject to optional redemption. Preliminary budgetary savings estimates from the refinancing are expected to exceed $1.9 million spread over the remaining life of the issue, assuming interest rates as of January 28, 2022 (plus a 0.50% interest rate cushion).
...
Click here for full text