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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller |
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PRESENTER(S): |
Rob Lamph, Assistant Treasurer |
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Randall Larsen, Bond Counsel |
TITLE:
title
R2024-04-03 - Resolution Authorizing the Issuance and Sale of the Authority’s Sales Tax Revenue Refunding Bonds; and Related Matters
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Adopt Resolution R2024-04-03 to authorize the issuance and sale of the Authority’s Build America Bonds (BABs) as presented.
BACKGROUND:
UTA currently has 2009 and 2010 Build America Bonds (BABs) totaling $461,450,000 of refundable par. These bonds pay an annual subsidy. Recent Federal government actions have reduced the amount of the subsidy paid.
DISCUSSION:
Current market conditions may allow UTA to refinance the BABs by issuing tax-exempt bonds, potentially achieving overall debt savings. If the Board authorizes refinancing of the BABs, UTA would reduce the risk of future subsidy reductions. UTA could also have a future opportunity to refinance the new bonds at a lower rate to achieve additional savings. This resolution is requesting approval to post the notice of bonds to be issued. We will return at the next Board meeting for a more detailed discussion. Should the Authority choose to pursue this opportunity we would also consult with the State Finance Review Commission and the Local Advisory Council before bringing a resolution to the Board to authorize the refinancing of the BABs.
ALTERNATIVES:
Not refinance the 2009 and 2010 BABs
FISCAL IMPACT:
Approximate debt service savings of $24.4 million over 19 years.
ATTACHMENTS:
- Resolution R2024-04-03, including exhibits and schedules