Explanation
The City has an opportunity to reduce the debt service costs on certain of its outstanding bonds by currently refunding them. The call date of the existing bonds to be refunded is May 15, 2004. Since the City is planning its more traditional general obligation bond sale in approximately July 2004 it is necessary for an interim financing step to be taken.
The potential savings to the City by taking this action is estimated to be approximately $680,000.00.
The bonds to be refunded were issued May 15, 1994, callable May 15, 2004 and have final maturity dates of May 15, 2005, 2006, 2007, 2008 and 2015. This ordinance will authorize the City's Treasury Investment Board (the Board) to purchase the refunding (the new) bonds. Chapter 325 of the Columbus City Code identifies bonds of the City of Columbus as eligible investments for the Board to purchase.
The existing bonds to be refunded are:
Principal Issue Stated
Amount Name of Issue Date Maturity
$ 2,120,000 Various Purpose Limited Tax Bonds, Series 1994-1 May 15, 1994 May 15, 2005
5,990,000 Various Purpose Unlimited Tax Bonds, Series 1994-2 May 15, 1994 May 15, 2005;
2008; 2015
1,005,000 Street Lighting and Electricity Distribution (E-L) Bonds May 15, 1994 May 15, 2005;
2006; 2007
600,000 Street Lighting and Electricity Distribution No. 27 (EU) Bonds May 15, 1994 May 15, 2005;
2006; 2007
$ 9,775,000 Total
Title
Authorizing the issuance of limited tax bonds in an aggregate amount not to exceed $3,125,000 and unlimited tax bonds in an aggregate principal amount not to exceed $6,650,000 for the purpose of providing funds ...
Click here for full text