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Home My WebLink AboutIR 9902 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9902 To the Mayor and Members of the City Council June 14, 2016 h�T�i7 Page 1 of 3 �i �i7 Y *a SUBJECT: OUTSTANDING CALLABLE DEBT #qrF rn f e'?5 This Informal Report has been provided in order to present to the Mayor and City Council information on the City of Fort Worth's existing outstanding callable debt. The information has been organized in two different ways — by type and by fiscal year. Background Most municipal bond issues are structured with an Optional Call Provision, which allows the issuer to refund/refinance the existing bonds by purchasing the outstanding bonds at a pre- determined price, using dollars obtained from the sale of new refunding bonds. The Optional Call Date is typically 10 years from the date of issuance of the bonds. Refundings are commonly executed to achieve interest cost savings, remove or change burdensome bond covenants, or restructure the stream of debt service payments to better align with the multi-year financial plan. Debt Practices It is the policy of the City that staff continually monitors the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. Because the IRS limits the number of tax-exempt refundings, as a general rule, the City has a goal that the present value savings of a particular advance refunding (i.e., bonds that are paid off on a date that is more than 90 days after the date the refunding bonds are issued) should exceed 3.5% of the par amount of the refunded maturities. Once the 3.5% savings threshold is met, the refunding candidates are considered "in the money" and will be evaluated for possible refunding. Callable Debt as of April 15, 2016 Callable Callable Principal Maturities Call Date Governmental Activities Governmental Activities Longterm debt General Obligation Bonds: Series 2009(1) 42,580,000 2020 - 2029 3/1/2019 Series 2010 10,300,000 2021 - 2030 3/1/2020 Series 2011 Refunding 8,625,000 2022 - 2023 3/1/2021 Series 2012 Refunding 72,775,000 2023 - 2032 3/1/2022 Series 2014 Refunding 5,650,000 2024- 2033 3/1/2023 Series 2015A Refunding 33,050,000 2026 - 2035 3/1/2025 Certificates of Obligation: Series 2009 19,905,000 2020 - 2029 3/1/2019 Series 2010 22,360,000 2021 - 2031 3/1/2020 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9902 To the Mayor and Members of the City Council June 14, 2016 OX Page 2 of 3 SUBJECT: OUTSTANDING CALLABLE DEBT Yag3 Series 2010A 14,675,000 2021 -2030 3/1/2020 Series 2012 41,045,000 2023 -2032 3/1/2022 Series 2013A 21,050,000 2024-2033 3/1/2023 Series 2013B 6,635,000 2024-2033 3/1/2023 Series 2013C 10,075,000 2024-2023 3/1/2023 Business-type Ione term debt Water and Sewer: Revenue Bonds: Series 2005 TWDB 385,000 2017 Callable Series 2005B TWDB(1) 34,335,000 2017 - 2025 Callable Series 2007A TWDB 19,380,000 2018-2027 9/1/2017 Series 2007B TWDB 29,315,000 2018 -2027 9/1/2017 Series 2008 Refunding 19,800,000 2019 -2024 2/15/2018 Series 2009 TWDB 11,405,000 2017 -2030 2/15/2011 Series 2010ATWDB 21,620,000 2021 -2030 8/15/2020 Series 2010B 15,175,000 2021 -2030 8/15/2020 Series 2010C 27,310,000 2021 - 2030 2/15/2020 Series 2011 Refunding 67,715,000 2022 -2031 2/15/2021 Series 2012 Refunding 9,895,000 2023 -2025 2/15/2022 Series 2014 Refunding 82,375,000 2025 -2034 2/15/2024 Series 2015 Rev SRF 20,475,000 2026-2035 8/15/2025 Series 2015A Refunding 51,540,000 2026-2035 2/15/2025 Series 2015B 3,800,000 2027 -2030 2/15/2026 Municipal Parking: Certificates of Obligation Series 2007(1) 16,620,000 2018-2033 3/1/2017 Series 2009(1) 21,480,000 2020- 2033 3/1/2019 Stormwater Utility: Revenue Bonds: Series 2007(1) 18,500,000 2018-2033 2/15/2017 Series 2009 33,820,000 2020-2035 2/15/2019 Series 2011 55,330,000 2022 -2036 2/15/2021 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9902 To the Mayor and Members of the City Council June 14, 2016 OX Page 3 of 3 SUBJECT: OUTSTANDING CALLABLE DEBT Yeg3 Callable Debt Per Year 2016 2017 2018 2019 GO $ 62,485,000 CO 16,620,000 (11 21,480,000 ' W&S 34,720,000"' 48,695,000 19,800,000 Drainage 18,500,0001" 33,820,000 $ 34,720,000 $ 83,815,000 $ 19,800,000 $ 117,785,000 2020 2021 2022 2023 GO $ 10,300,000 $ 8,625,000 $ 72,775,000 $ 5,650,000 CO $ 37,035,000 $ 41,045,000 $ 37,760,000 W&S 64,105,000 67,715,000 9,895,000 Drainage 55,330,000 $ 111,440,000 $ 131,670,000 $ 123,715,000 $ 43,410,000 2024 2025 2026 GO $ 33,050,000 CO W&S 82,375,000 72,015,000 3,800,000 Drainage $ 82,375,000 $ 105,065,000 $ 3,800,000 (1) A portion of this debt is being refunded as part of the 2016 bond transactions If you have any questions, please call Aaron Bovos, Chief Financial Officer, at 817-392-8517. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS