Broken Arrow City Council
Meeting of: 10/01/2019
Title:
title
Consideration, discussion, and possible approval and authorization to execute Resolution No. 1271, a Resolution providing for the issuance of General Obligation Refunding Bonds in a principal amount not to exceed Ten Million One Hundred Thousand dollars ($10,100,000) by the City of Broken Arrow, Oklahoma, for the purpose of refunding a portion of the city's outstanding general obligation bonded indebtedness; Establishing a not to exceed true interest costs and maturity dates; Prescribing form of refunding bonds and providing for registration thereof; Providing a levy of an annual tax for payment of principal and interest on said refunding bonds; Waiving competitive bidding and designating an underwriter for the bonds and authorizing execution of a bond purchase contracts, escrow fund agreements, continuing disclosure agreements and paying agent/registrar agreements; Ratifying and confirming a legal services agreements and a financial services agreement with respect to the issuance of the bonds; approving an Official Statement and providing other details of the issue
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Background:
The City has three General Obligation Bonds outstanding (General Obligation Bonds, Series 2009C; General Obligation Bonds, Series 2009D and the General Obligation Bonds, Series 2010B) that are now subject to optional redemption or will be subject to redemption within the next year which provides the City an opportunity to refinance or refund the bonds to reduce future interest costs. These three issues are good candidates for a refunding in which the City would issue new General Obligation Refunding Bonds and pay off the 2009C, 2009D and the 2010B bonds, resulting in a reduction in the ad valorem taxes necessary to repay the bonds. Low interest rates available in today's bond market make the refunding an economical transaction, providing significant benefits to the City and its taxpayers. The three issues are as fo...
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