Subject:
Title
Adoption of an Ordinance Authorizing the Issuance and Sale of General Obligation Refunding Bonds (5 mins.)
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
N/A
EXPLANATION AND SUMMARY:
The proposed ordinance authorizes the issuance and sale of the Town of Vienna's General Obligation Refunding Bonds in a maximum aggregate principal amount of $1,785,000.
In January 2024, the Town issued its $3,029,500 General Obligation Public Improvement Bond, Series 2024 (the "Prior Bond"). After reviewing current market conditions, staff, in consultation with the Town's financial advisor, Davenport & Company LLC, determined that it is financially advisable to refund and redeem the outstanding portion of the Prior Bond to achieve potential debt service savings and improve overall financing terms.
The Refunding Bonds will be issued to:
* Refund and redeem the outstanding amount of the Series 2024 Prior Bond; and
* Pay the associated costs of issuance.
The Town Manager and Director of Finance, in consultation with Davenport, issued a Request for Proposals (RFP) to banks and financial institutions for the purchase of the Refunding Bonds. The ordinance ratifies the issuance of the RFP and authorizes execution of all related financing documents, including the bonds themselves and any necessary escrow or loan agreements.
No public hearing is required under the Code of Virginia for the issuance of these refunding bonds.
Departmental Recommendation: Recommend authorizing the ordinance as presented.
Finance Recommendation: Recommend authorizing the ordinance as presented.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town has received financial advice from its consultant, Davenport & Company LLC recommending the adoption of an ordinance ratifying the Issuance and Sale of General Obligation Refunding Bonds, Notes or Other Forms of Indebtedness of the Town of Vienna, Virginia and Authorizing the Execution and Delivery of Certain...
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