26 - Refunding and Restructuring of General Obligation Redunding Bonds Series 2023

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Staff recommended that the city council consider Option 2 because of the need to issue additional debt to complete Phase II of the Wastewater Treatment Plant (WWTP) Project. We believe by restructuring the Bonds there are significant advantages to rate payers, today, that make this option worth pursuing. Under current market conditions we believe that the approximate $1,000,000 reduction in existing debt service can then be applied towards the Phase II WWTP Bonds. If we pursue this option, once the final numbers are known, we will then revisit our upcoming scheduled wastewater rates and look to favorably adjust them. Since we do not have final costs for Phase II, we are hesitant to state today what the exact impact will be to our rate payers, but undoubtedly freeing up approximately $1,000,000 annually will have a positive impact. After considering the two options, the City Council authorized us to bring back documents supporting Option #2 above once the 2013 GO Bond became eligible for calling. STATUS OF ISSUE: We have reached the time that the 2013 GO Bond can now be called. Andrew Friedman from SAMCO Capital Markets is present tonight to provide you a presentation on this matter. The City of Paris is still finalizing its FY21/22 Audit, therefore we are not prepared to issue the new debt tonight, however, we are nearly complete and given we typically cancel some of our council meetings due to holidays later this year, our financial advisors recommend that we utilize an option under Texas Local Government Code Section 1207 authorizing the City Manager and Finance Director to proceed with calling the bond once we are ready. This will allow us to act anytime within the next 180 days, but preferably much sooner once the audit is complete. BUDGET: Please see the above Background and Status of Issue sections. RECOMMENDATION: Approve the ordinance to refund and restructure the 2013 GO Bond and authorize the City Manager and Finance Director to complete when ready.