Travis County Commissioners Court
October 18, 2005
Item 32
Now, the 1:30 item, number 32 a. Receive briefing from first southwest and other consultants regarding opportunity to realize significant savings by refinancing; maybe we ought to discuss 32 first.
>> judge. Here as counsel, and with us gary kimable the first southwest company. As the agenda item says, here to receive a briefing on a potential refunding of the series 1996 limited series bond, clint, take it away.
>> appreciate it, Commissioners, judge, you should have a presentation booklet in front of you summarizing the transaction presented to staff about a week and a half ago. We discussed this with the county's financial advisor and they are in agreement that the opportunity is ripe. And the first is the text exempt interest rates looking back 10 years and the thing to note is that rates have been higher 89% of the time so we are at relatively low point. The second page summarizes the traction, and with this deal as with past deals wee been monitoring the county's debt on a quarterly basis, routinely and taking advantage of opportunities as they arise. This would be a refinancing of the series '96 limited funding bonds, just over 9 million dollars and it picks off savings in an amount that is above the county's electroadditional targets. In the bottom right hand box this is something we identified last December. And because it's a refunding of refunding and the i.r.s. Only a lous bun wiet at the apple -- one bite pe the apple the only way to do this is where the investors agree to take it one year following setting the rates, and there is a people are mum -- there is a premium, and I think we made the right call in not doing this last year. By waiting for this to mature into a current refunding, we've up the the savings for about 318,000, almost $100,000 to the good by letting this mature and turn into a current refunding. The first opportunity to do this deal is to have it close December 1, 2005. That is the beginning of the 90-day window from the call date chrks is March 1, 2006. So we are bringing this to you, and brought it to the finance advisor, basically at the first opportunity that it's legal to do this and would like to get the court's authorize to proceed. And hopefully bring back a traction the first week of November that is prized and has -- priced and has actual savings.
>> -- all the documents by e-mail and so forth, so he is basically in agreement, and it's okay to move forward.
>> and you are --
>> I’m sharon.
>> I know, but your many, many millions of fans in tv land probably don't recognize you.
>> and I wonder if I could be watching the video of bag bad --
>> there must be a time lag because I literally got an e-mail from you 30 minutes ago and the question was: how did the Commissioners respond.
>> b. Authorize county staff, financial advisor and bond counsel toproceed with preparation of necessary documents to refinance various county debt obligations; namely those described a moment although and a handout, move approval. Discussion? All those in favor. Commissioners, Sonleitner, go mess, and voting in favor, and ab straining, Commissioner Davis -- abstaining, Commissioner Davis?
>> all of item 32. [indiscernible] disclosure statement to the clerk and to justify the statement I just made.
>> okay. Seeing designated first southwest as underwriter consistency with our practice and policy of awarding the consultant who discuss the work to bring the initiative to the court's attention the project. So that is the request here. The deal is pretty much put together except specific figures and wailing on -- waiting on little time to expire.
>> we have to get the bond documents prepared. They are almost complete and then posted and schedule a sale day.
>> okay, that's the motion. Second by Commissionerer discussion? All those in favor, with Commissioner Davis abstaining, and go mess, and Daugherty, and yours truly, also.
>> thank you very much.
>> have a good day.
>> thank you,.
>> thank you very much.
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Last Modified:
Wednesday, October 18, 2005 10:46 AM