Travis County Commissioners Court
Tuesday, September 28, 2010,
Item 13
>> number 13 is an order authorizing the issue i answer of travis county, texas limited tax refunding bonds, series 2010 a/very heavyying a tax in payment thereof; providing for the award of the sale thereof in accordance with specified parameters; authorizing the execution and delivery of a bond purchase agreement and approving the official statement and enacting other provisions relating thereto.
>> i will try to give you an explanation. Glenn opal is not here who drafted the order. We had told him 10:45 so he should be walking in any minute.
>> should we wait a few minutes?
>> we could wait if you have another item you would like to take.
>> let's call this back a little later then. That's item 13. Unless there is objection, we'll just call it up when mr. Opal gets here. If t.n.r. Is nearby. Or danny hobby.
Now that our side counsel has arrived, 13. An order authorized the issuance of travis county, texas limited tax refunding bonds levees a tax in payment thereof, providing for the award of the sale in accordance with the specified parameters and authorizing the execution and delivery of a bond purchase agreement. And if this don't discourage young people about attending law school, i don't think any language can. Good morning, y'all.
>> good morning, judge, commissioners. Lad patillo. This is an item just like we had in late june where we're asking you to pass a parameter. Since the last refinancing that we did in late june, we've been tracking a bunch of the maturitys of the bonds that were below the 3% savings in that market. If you recall, the day we did price it, we wound up getting almost 140,000 a year savings that were 12 years rather than the 120 they were thinking, so it was a very good time of all things the first week of september it got even better, and all of those weaker ones that did not qualify back in june all of a sudden look in the money for you to get over a 3% net present value savings. And i had been watching them thinking we may get closer to the call date in spring, however, the way the markets have been behaving lately and it's kind of a balance between treasuries and tax exempt bonds, we believe it's prudent for you to authorize this resolution, which is a parameters resolution, which glenn will describe, so that when the market, the day the market hits like it did last time, we can pull the trigger and save the county money. And as i said in my memo, it's kind of fluctuated back and forth to be anywhere between 90 to 120,000 a year in savings on that very best day it was close to 120.
>> okay. Mr. Opal.
>> judge, the action item that you have before you is the adoption of the order authorizing the issuance of the bonds. It also authorizes all of those things that you mentioned in the caption. The execution and delivery of purchase agreement, it approves the official statement relating to the bonds. It does so in accordance with specified parameters. Those parameters would be principal amount not to exceed $37 million. The refunding has to result in a net present value savings of not less than 3%, and the yield on the bond for federal tax purposes cannot exceed 4%. The order also contains as an exhibit the universe of the bonds that are possible for refunding and it delegates to the county judge the authority on the advice of the financial advisesser to watch the pricen and when the pricing is right to approve the sale of the bonds and to set the pricing and execute a pricing certificate that outlines the pricing of the bonds. With that i'd be happy to answer any questions you have about the order.
>> just one more matter of information for commissioner davis' benefit. We are tracking this with the same two firms that did it before, first southwest and estrada hinojosa and i just wanted to you know that for the record, sir.
>> and i'll act accordingly.
>> judge, there's one -- never mind.
>> so for the? A.person looking, basically if we approve this, we're authorizing you to keep monitoring the market, and if the conditions are such that we can achieve a savings of 3% or more, then we are authorized to go ahead and close the deal.
>> yes, for you to sign the documents at that time. We could price the bonds and i'll work closely with p.b.o. And go to market and try to get as many of that universal bonds in there as we can. When rates are not as low as they were that first week of september, that amount may be closer to 20 million. If rates get good, we could be back up in the 30s. That will determine how many bonds we can refinance. For the public it's just like refinancing a house, we're lowering the county's payment on out standing debt.
>> and this would be after closing cost?
>> yes, it's net present value after all other expenses which we monitor closely.
>> so whatever debt we refinance, if any, if this is existing debt and we would keep the payoff period the i'm.
>> yes, we're not extending the payoff period. It's just refinancing at the same length of term that we've always -- that we had on the bonds originally. It's just a matter of lowering the amount of the payments you have to pay.
>> lowering the interest rate.
>> move approval.
>> second.
>> any discussion? All in favor? Show commissioners eckhardt, huber and yours truly voting in favor.
>> commissioner davis abstaining and i've submitted the proper documentation to the clerk. My son is employed by one of the firms they are doing business with.
>> thank you all very much.
>> 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, September 28, 2010 3:37 PM
