Board of Directors Regular Meeting Agenda


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Meeting Date: 01/22/2014  

SUBJECT MATTER:
Receive, consider and act upon adoption of Resolution Authorizing Redemption of The Woodlands Township Sales Tax and Hotel Occupancy Tax Bonds, Series 2009;
FISCAL IMPACT:
The redemption of the Series 2009 bonds (related to the Regional Participation Agreements) was included in the 2014 Budget. The “Principal Redeemed” amount totals $14,270,000. Accrued interest on the date of redemption (March 3, 2014) is projected to be $3,567.96, resulting in a total required escrow deposit of $14,273,567.96. The net present value savings of the bond redemption is $5,641,894.54 per the preliminary redemption report dated January 13, 2014 prepared by FirstSouthwest.
BACKGROUND:
The Woodlands Township Sales Tax and Hotel Occupancy Tax Bonds, Series 2009 were issued to finance initial payments due to the City of Houston and the City of Conroe as required by the Regional Participation Agreements. The bonds become eligible for full redemption on March 3, 2014.

The Board of Directors authorized the redemption of these bonds in conjunction with the adoption of the Township’s 2014 Budget. As directed by the Board during the budget discussions, the principal redemption amount of $14,270,000 will be funded by undesignated fund balances accumulated in previous years due primarily to favorable budget variances in sales tax collections. The net present value savings related to the bond redemption is $5.6 million per a preliminary report dated January 13, 2014 prepared by the Township’s financial consultant, FirstSouthwest. A copy of that report is attached for the Board’s information.

The Township’s legal counsel has prepared a Resolution Authorizing Defeasance of Outstanding Bonds and Authorizing Notice of Redemption of Same, which is attached for the Board’s review.
RECOMMENDATION:
Adopt Resolution Authorizing Defeasance of Outstanding Bonds and Authorizing Notice of Redemption of Same.
Attachments
Bond Redemption Resolution
FirstSouthwest Report


    

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