Travis County Commissioners Court
February 8, 2005
Road District #3
Northwest Travis County road district #3 (golden triangle) 1. Approve payment of claims and authorize county treasurer to invest road district funds. Investments but no claims.
>> move approval.
>> second.
>> passes. That passes by unanimous vote with director Sonleitner absent. 2. Approve n.w.t.c.r.d.#3 minutes for voting session of January 25, 2005.
>> move approval.
>> second.
>> all in favor? That passes by unanimous vote. 3. A. Authorize the county staff, financial advisor and bond counsel to proceed with preparation of necessary requirements to refinance various of the district's debt obligations; and. B. Designate underwriters therefore.
>> move.
>> second.
>> thank you, judge, I’m lad patillo, the financial advisor to the county and the road district. And this is something that we have kept our eye on for a long time because we have refunded the bond of the northwest Travis County road district no.3, the golden triangle, in the 90s, under tax law you can only do it once, one bite at the apple. These bonds reached their common redemption date, commonly called their call date on September 1st of this year. Under federal tax law, we can do a current refunding and we don't have all of those restrictions. Also under federal tax law we can do the current refunding 90 days ahead of that date and still be considered current. So we can actually close on these bonds and still be a current refunding no earlier than June 1st. Of this year. The bonds outstanding were at such interest rates, especially if you recall when we did that deal, it wasn't -- I don't recall what it was rated except that we were able to sell it. You know the tremendous value of the golden triangle, right there where the gateway is, all of those stores, the lexus dealer, everyone else is out there, I feel very certain we can get a very good rating on it this time, much cheaper insurance, do a great deal. With me today I have jennifer douglas and gary kimball from first southwest company. Jennifer has been following along on this and doing the numbers. On a present value basis we could probably achieve about 8% present value savings by doing that based on today's rates. If you recall from our previous discussions of refundings, what we will get into when we get back into the court agenda, 3% is kind of the -- the floor that we look at in our business to -- to say that would be an efficient deal. On a current refunding to get 8% would be fantastic. All that we would like today to do is have you allow as the agenda item said in part a, to allow, authorize the county staff and myself and glen oppel to move forward and prepare this. This one in order to close on June 1st, we probably couldn't sell until maybe April 1st or a little later. Asking an underwriter or buyers to hold for more than eight weeks is very difficult to do. Once they take the bid, they don't take delivery of the bonds for about 8 weeks, we will do that as efficiently and as quickly as we can. If you have any questions about this -- this one is pretty straightforward. I didn't let these folks have anything to say.
>> any idea of how much money we think we might be able to save?
>> I left my glasses?
>> the net present value benefit is approximately $380,000 at this point, a total savings of about $413,000.
>> so that works out based on the level of debt service distribution, if I can see that, it's about 40, 42,000 a year. That would be taken off the debt service.
>> okay.
>> that's net of expenses, that's after expenses.
>> okay. Any others?
>> lad, [indiscernible] company has anything to do with --
>> yes, sir, first southwest company is the one that's been following this for really a year or so. Or more. For us. And that's who I would recommend. It's a small deal, 4.5 million, we wouldn't need more than one underwriter to do that.
>> I would like to show myself abstaining.
>> move approval.
>> second.
>> pending an affidavit --
>> all in favor.
>> to the clerk.
>> [multiple voices]
>> pending the affidavit to the clerk I will abstain on this. So --
>> voting in favor commissions Sonleitner, daughter, Gomez, yours truly. Abstaining?
>> pending an affidavit --
>> thank you.
>> move adjourn.
>> second.
>> all in favor? That passes by unanimous vote.
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Last Modified:
Wednesday, February 9, 2005 9:04 AM