10 - Refunding for Savings Tax & Revenue COs Series 2010

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Item No. 10 Memorandum TO: Mayor & City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: REFUNDING FOR SAVINGS TAX & REVENUE COs SERIES 2010 DATE: September 14, 2020 BACKGROUND: In 2010, the City of Paris issued $3,005,000 in certificates of obligation (COs) for improving and expanding South Collegiate Drive and making improvements to the frontage access for South Collegiate Drive. The COs can be redeemed after ten years (December 15, 2020). STATUS OF ISSUE: Samco Capital serves as the City's financial advisor on debt issues. They will be making a presentation regarding the opportunity to refund these COs at a lower interest rate for estimated financial savings in the amount of $172,953. This refunding would not extend the maturity date on the 2010 CO issue. BUDGET: Annual debt savings would amount to approximately $17,295 during the ten year life of this debt issue. OPTIONS: 1. Don't refund the 2010 COs. 2. Authorize City staff to proceed with the refunding process. 3. Ask for additional information or postpone the decision until a later date. RECOMMENDATION: Authorize City staff to proceed with the refunding process. This matter will come back to the City Council for a final decision on the refunding.