Travis County Commissioners Court
November 8, 2005
Item 34
34. Consider and adopt an order authorizing the issuance and sale of Travis County, Texas, limited tax refunding bonds, series 2005a; levying a tax in payment thereof; authorizing the execution and delivery of a bond purchase agreement and an escrow agreement; approving the official statement; and enacting other provisions relating thereto.
>> good morning.
>> good morning, judge, glen oppel with vinson and elkins, we have sharon with lad patillo & associates here with us, gary kimball, first southwest company, as the agenda item stated we are they're -- to take up the issuance of $9,155,000 in limited tax refunding bond for 2005. These bonds are being issued to refund Travis County limited tax refunding bonds series 1996 of certain maturities of that in a currents refunding. Those bonds being refunded are in the principal amount of 9,015,000. I will turn it over to gary kimball at this point. He can give you a run down, I think he's handed out the packet. Give you a run down of how the market looked with respect to the bonds.
>> thanks, glen. Judge, members of the court, good afternoon. This is -- this is an update of the presentation that we made to the court back on October the 18th. If you will look, I’ve look, I’ve got this summarized as much as possible. Be happy to answer any questions at this points. The graph on page 1 shows a market that is going away from us. Without a doubt. But keep in mind that in historical terms we are still very much near the bottom the last 10 years, in fact if you took this back 47 years, this is also the 47 year low very near where we are today. The second page summarizes the transaction and up in the top right-hand corner are the savings associated with the final pricing. We were in the market yesterday and ended up just under $300,000 worth of total debt service savings, which realizes at approximately $60,000 a year through 2011. The net present value savings percentage is approximately 2.88%. The -- the hoped for target of 3% has -- has slipped past us, however keep in mind that this is a refunding of a refunding. And as I explained last time, we are not allowed to trigger this -- but within a 90 day window of the call date, which occurs February 1st, 2006. So the first available date to close this deal is the first week of December. Triggering the pricing earlier than we did it yesterday would have involved a forward premium. And I laid out that comparison again on this summary what a forward would have looked like when we originally spotted it. It would have been closer to a 2% present value savings at opposed to what we have now is closer to a 2.9% present value savings. We still think it's a very good deal.
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>> [one moment please for change in captioners]
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>> ...if the public wonders what we're doing, we're really refinancing existing debt to reduce the interest rate, and our ultimate costs.
>> and hopefully make room for additional bonds in the future or to have the ability to lower the debt portion of your tax rate.
>> if glen were here he would remind everybody what happened to the bond rating. Would you like to remind everybody what happened when we asked new york to reconfirm where we are?
>> I think we just got yesterday, we previously got a moody's rating letter and we just yesterday got a rating letter from s and p confirming the county's triple a rating with respect to these refunding bonds. And again, that is the highest rating that is afforded to the bonds, probably be afforded to the bonds by the rating agencies in new york.
>> he would be proud of you.
>> and the item that you have before you should have in your agenda package a copy of the bond order that you will be authorizing. It is substantially complete except for the inclusion of the numbers to reflect the pricing that we have from gary here today. I have conformed copies with me.
>> move approval of all of 34.
>> second.
>> discussion? All in favor? Show Commissioner Sonleitner, Gomez, Daugherty and yours truly voting in favor.
>> show Commissioner Davis abstaining. And I’ve also provided a disclosure document to the clerk for this particular abstention that my son has a direct tie-in with the first southwest company, so therefore I will not be able to participate in this vote.
>> okay. Now we have come to -- thank you very much.
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Last Modified:
Tuesday, November 8, 2005 6:21 PM