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Brentwood City Commission Agenda

Meeting Date:	02/13/2017
Presentation of Report on Recent Debt Refunding Obligation (State Form CT-0253)
Submitted by:	Debbie Hedgepath, Administration
Department:	Administration

Information

Subject

Presentation of Report on Recent Debt Refunding Obligation (State Form CT-0253)

Background

The City just completed a very successful competitive bond issue. A total of eight electronic bids were received for the bond issue, which provided interest rate savings through the advanced refunding of $3.030 million of existing General Obligation debt from a 2007 G.O. bond issue and the current refunding of $860,000 in Water and Sewer debt from 2006 Water and Sewer refunding bond issue for interest rate savings. The lowest and best bid was submitted by FTN Financial Capital Markets with a true interest cost of 1.786%. This refinancing will save the taxpayers and utility rate payers of Brentwood $321,691 in gross aggregate interest costs over the remaining life of the bonds with a net present value savings of $269,595.

As a follow-up to the bond closing, the City is required to complete and submit to the State of Tennessee the attached "Report on Debt Obligations" (State Form No. CT-0253). State law requires that the form be presented to the City Commission at a public meeting prior to submission to the State. Note that all of the report information has been previously covered with the Board.

If you have any questions regarding the attached form, please contact the Finance Director.

Staff Recommendation

Staff recommends approval to submit the attached reports on recent debt obligations to the State of Tennessee.

Previous Commission Action

Resolution 2016-83, authorizing the issuance of the Refunding Bonds, was approved by the City Commission on November 14, 2016.

Fiscal Impact

Amount :
Source of Funds:
Account Number:

Fiscal Impact:

N/A - a regulatory filing report

Attachments
Form #CT-0253