Title
Consider an Ordinance Authorizing the Issuance and Sale of One or More Series of City of Round Rock, Texas Hotel Occupancy Tax Revenue Refunding Bonds. (First and Final Reading)
Body
The City will be refunding up to approximately $4.6 million in Texas Hotel Occupancy Tax Revenue Bonds. Due to current market conditions the City would like to take the opportunity to refinance this debt at a more favorable rate. The final debt refunded will vary depending on market interest rates. The net present value savings over the life of the debt is projected to be over $320,000, over an average annual savings of approximately $44,000 and will be reflected as a reduction of the debt service requirement. We will be utilizing the negotiated sale method which allows greater flexibility at the time of pricing. This will be a current refunding and is expected to price on or around August 24, 2016 and close in September 2016.
The City's Hotel Occupancy Tax debt carries a rating of A from Standard and Poors and A+ from Fitch.
Recommended Action
Staff recommends approval.