NORTH CAROLINA
EXECUTIVE SUMMARY
Meeting Date: 9/28/2009
AGENDA #5c
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TOWN OF CHAPEL HILL NORTH CAROLINA EXECUTIVE SUMMARY |
Meeting Date: 9/28/2009 |
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| Title of Agenda Item:
Proposed Refunding of Outstanding General Obligation Bonds. (R-3) Council Goal 5. Improve Town’s Fiscal Condition. |
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| Background: The Business Management Department (BMD) is currently pursuing refunding a portion of the Town’s outstanding General Obligation Bonds, Series 1998 and Series 2000. The amount of bonds that we are recommending for refunding is approximately $4,900,000. A recent drop in tax-exempt municipal bond rates at the short end of the yield curve has resulted in opportunities for the Town to save money on its annual debt service by reducing the net interest cost of debt through refunding. | |||
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| Fiscal Note:
Based on the analysis conducted by the BBT Capital Markets, the Town can save approximately $332,230 (net present value) over the next 10 years by refunding outstanding General Obligation Bonds, Series 1998 and Series 2000. Savings are based on current interest rates. Actual savings will depend on the prevailing interest rates at the time of the sale. |
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| Recommendations: That the Council approve the resolution authorizeing the Town Manager, Finance Officer and other Town Officials to take actions necessary to proceed with the refunding of the 1998 and 2000 Bonds. The actual sale of the bonds is subject to further Council approval. | |||
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| ATTACHMENTS: Viewing attachments may require Adobe Acrobat. |
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| Memorandum | |||
| Resolution | |||