Travis County Commissioners Court
November 7, 2006
Item 23
Number 23 is to consider and take appropriate action on an order authorizing the issuance and sale of tax limited refunding bonds, is twirks, levying a tax and payment thereof, authorizing the execution and delivery of a bond purchase agreement and escrow agreement, approving the officially statement and enacting other provisions relating there to to.
>> thank you judge. Good morning. Judge and Commissioners, lab piteli, financial adviser. A very comprehensive agenda item from our bond counsel who is with us, and also gary kimball from first southwest company whom you had designated as under underwriter for in issue when you approved us moving forward on the 1th of October--17th of October. The market has been interest k. We're at probably one of the lowest points in a ten-year period as far as interest rates. But since we came to you that day when we were showing you at that time basically a 3.03 deal on the first numbers we got from first southwest, in the meantime while we were getting the ratings and other things it dropped on the 261 on the net present value savings. Then last week the same day we put the preliminary officially statement in the market it was up to almost 3 330. With bad news on Friday and some of the economic indicators we went ahead and tried to get this thing done yesterday and priced it. And we were able to get a 3. 3.03 a little over a million about a million, 57,000 in savings for taxpayers of the county. One thing I would point out, on the graph on the first or second page of gary's presentation, I told him I was going to seal his thunder, you can see right there at October '06 was the lowest point on the bond buyer index, the municipal bond index, in ten years. And that's where we got this done. So I will turn it over to gary now to let him make his presentation of the under underwriting they did and come back for recommendation.
>> thank you, lad. I don't have a lot more to add other than to paint out on the page immediately following the graph, the actual final savings. This has been verified by grant thor ton, cpas, is gross dollar savings of just over 1,057,000. That's better than the numbers we showed new September. The net present value benefit of 722,000 is within 200 of the number we originally proposed. That equates to a 3.037 percent present value savings that is above the target that historically the county has used to trigger refundings of three percent. And the only thing I would highlight in the following pages on the pricing summary we have a true interest cost of approximately 4.4 percent percent. That compares with an average interest rate on the refunded bonds of about 5.1 percent. So we're in essence taking the rate on outstanding exist Travis County bonds and that is the way we get the savings on the refunded bonds. I would be happy to answer any questions that you might have.
>> judge, would I add that that's all, as you know, we've done this a few times before as net of any expense expenses. One of the ways yesterday when we were in the tough market to make sure that we got to where we needed to be on the target was a not too vigorous arm wrestling match between me and the writer to get their fee down at bit and increase your savings.
>> okay. For the average resident looking at this, basically what we're doing is trying to take one interest rate and see if we can refinance and get a lower one, there by generating savings.
>> correct.
>> and that's what we've done and the savings will be a little more than a million dollars, basically.
>> yes, sir.
>> let me take this opportunity to remind our vast audience what happened with our bond rating reconfirmation, please.
>> yes, I will, Commissioner the our bñnd rating for Travis County was once again reconfirm at anana. Very easily it was in both-- both--at triple a. Very easy it was an easy decision for moody's and standard and poors, they both told me, and the reports are out on the internet.
>> anything else ?
>> nos, judge, other than the action item before you to adopt the order authoriz authorizing the issuance of the refunding bonds in the form presented to you, the authorizes the issuance of the new bonds and the redemption of the old bonds effect too it'sing the switch from one interest rate to another.
>> moving approval of 23 which covers an order covering all of the actions that glen just described and other picked up in the language of the item.
>> yes, sir.
>> second by Commissioner Gomez. Thank you. We thought this could happen I guess three or four weeks ago.
>> correct.
>> indeed it has. All in favor. Show commission Commissioner Sonleitner and dougherty vot voting in favor.
>> abstaining, the reason is there's a relative employed by first southwest compani companimently give a disclosure statement to the clerk before the day ends.
>> thank you very much. Again, thank you all very much. Appreciate it.
>> thank you.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Last Modified:
Tuesday, November 7, 2006 10:11 PM