Agenda

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4.a.

Brentwood City Commission Agenda

Meeting Date:	12/13/2021
Presentation of Report on Recent Debt Funding Obligation (State Form CT-0253)
Submitted by:	Holly Earls, Administration
Department:	Administration

Information

Subject

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

Background

The City just completed a successful competitive bond issue to partially fund the new Metro/Brentwood sewer pump station storage facility. A total of seven electronic bids were received for the new money bond issue. The lowest and best bid was submitted by Piper Sandler & Co. with a true interest cost of 1.6496%.

The City also completed a successful competitive taxable refunding bond issue. A total of 13 electronic bids were received, which provided interest rate savings through the advanced refunding of existing General Obligation debt from a 2012 G.O. bond issue used for water and sewer related projects and a 2013 G.O. bond issue used toward the acquisition of land for parks and extensions to and construction and equipping of improvements to parks. The lowest and best bid was submitted by Hilltop Securities with a true interest cost of 1.7566%. This refinancing will save the taxpayers and utility rate payers of Brentwood $372,225.16 in gross aggregate interest costs over the remaining life of the bonds with a net present value savings of $323,387, net of all issuance costs and underwriters discount which are reflected on page two of the attached report.

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) for each of the two bond issues. State law requires that these forms be presented to the City Commission at a public meeting prior to submission to the State. Note that all 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

N/A - No formal action by the City Commission is required. This report is for informational purposes only as required by the Tennessee Comptroller.

Previous Commission Action

Resolution 2021-120 and Resolution 2021-121, authorizing the issuance of not to exceed $16,015,000 in general obligation public improvement bonds, was approved by the City Commission on October 25, 2021.

Fiscal Impact

Attachments
State Form CT-0253