REFUNDING BOND RESOLUTION OF THE COUNTY OF ALLEGANY, NEW
YORK; AUTHORIZING THE ISSUANCE PURSUANT TO SECTION 90.00 or 90.10 OF THE LOCAL
FINANCE LAW OF REFUNDING BONDS; TO BE DESIGNATED SUBSTANTIALLY “PUBLIC
IMPROVEMENT REFUNDING (SERIAL) BONDS”; AND PROVIDING FOR OTHER MATTERS IN
RELATION THERETO AND THE PAYMENT OF THE BONDS TO BE REFUNDED THEREBY
Like many, if you have no idea what the resolution title is
even saying, here is a scaled down, easier to understand explanation:
Requesting a resolution for April 27, 2020 to authorize
the refunding of our 2010 Serial Bond Issue. These are the bonds that we issued
in order to build the expanded County Courthouse Facility. There is an
estimated $10,255,000 owing on this bond thru the maturity date of 11/10/2035.
In working with our financial consultant, Municipal Solutions, we have
determined that there are considerable savings at this point if we refinance
the balance. The estimated savings is proposed to be $900,000 to $1,067,000 over
the remaining life of the bond. The lower range would be net of all costs of
the issuance. Currently Municipal Solutions is circulating the information
necessary to receive proposals on this reissuance so that we can be ready to
take advantage of the market quickly. Bond Counsel has been contacted and this
requested resolution is the next step in moving forward with the refinancing.
We feel the estimated savings of this bond interest indicates the time it now
to take advantage of the market and refinance this bond. The closing would need to take place prior to July, 2020.
FISCAL IMPACT: Estimated gross savings of $1,067,000 thru
11/2035. Net savings estimated at $900,500. All dependent on market on date of
sale.
The Legislature is April 27th at 2 p.m. and will
be held via a teleconference.
