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Authorize the refunding of the 2007 Certificates of Participation and provide direction to staff regarding the preferred refunding debt structure (continued from the July 25, 2017 Board meeting)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board review and authorize refunding of the 2007 Certificates of Participation and provide direction to staff on the preferred refunding debt structure.
SUMMARY/DISCUSSION:
The county has a potential opportunity to refund the 2007 Certificates of Participation (COPS) that were in turn a refunding of the 2002 COPS that were originally issued to finance the construction of the County Government Center, Parking Garage, Probation Building and other county facilities.
In preparation of the refunding, county staff requested information on the potential savings from various potential refunding scenarios. In consultation with the county's Financial Advisor, the Board is being presented with the two most viable options, designated as Scenario 1 and Scenario 2. Information presented in these scenarios is based on a best estimate of expected market yields at the time of bond issuance. As market interest rates change, the actual savings derived from either scenario is expected to vary from the amounts presented; however, the difference in savings between the two scenarios is anticipated to remain reasonably close to the amount shown.
As shown on Summary Page 1 (Attachment C), preliminary analysis (based on summer 2017 interest rate market conditions) of the proposed refunding shows a potential Net Present Value (NPV) savings between $10,488,705 in Scenario 1 over the remaining years of debt payment and $12,687,304 dollars in Scenario 2 over the remaining years of debt payment. These NPV savings equate to 12.46% and 15.07% of the total refunded par value respectively.
For clarification, dates showing wit...
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