To: The Honorable Mayor and Board of Commissioners From: Jackie Huffman/Greg Ferguson Subject: Refund 2008 GO Bonds
Town Staff has met with the Town's Financial Advisor Davenport & Company regarding the potential to save future interest costs by advanced refunding the 2008 GO Bonds. The remaining principal balance on the bonds is $2,975,000 and in the current interest rate environment, Davenport estimates we can save approximately $325,000 in future years' debt service. Also, by refunding these bonds with this summer's 2016 issue, we minimize issuance costs. If interest rates shift later this summer resulting in less or no savings, we can cancel the refunding. Staff recommends advanced refunding the bonds. The following four items are required to advance refund the bonds:
1) Statement of Estimated Interest
2) Sworn Statement of Debt
3) Resolution Making Certain Statements of Fact
4) Introduction, Adoption and Publishing of Bond Order
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