January 2010 – Called Meeting
Called Meeting Date: January 7, 2010 ~ 3:00 P.M.
PERSONS PRESENT: Gary Winchester, Buzz Ahrens, Nancy Martin, Steven Woodruff, Chris Wilbanks, Tom Heard, Janice Henderson, Tom Roach, Wesley Banks, Beth Williams, Melanie Stephens, Bryce Holcomb, Matt Nichols, and Sarah Belcher.
- GARY WINCHESTER, CHAIRMAN, CALLED THE MEETING TO ORDER AND NOTED THAT THE PURPOSE OF THE MEETING IS FOR THE DISCLOSURE OF THE FINAL RESULTS FOR THE REFUNDING OF THE SERIES 1997, 1998, AND 2001 BONDS.
MR. HOLCOMB ALSO REPORTED THAT ON 1/6/10, THE AUTHORITY SUCCESSFULLY LOCKED IN FAVORABLE INTEREST RATES AND GENERATED SIGNIFICANT SAVINGS BY REFUNDING THE SERIES 1997, 1998 AND PORTIONS OF THE SERIES 2001 BONDS. Mr. Holcomb noted that, in fact, the results of the final verified numbers far exceed the results of the refunding analysis that the Authority reviewed on September 23, 2009.
Mr. Holcomb reported the following verified final numbers:
• Delivery date of 1/27/10, as compared to 11/1/09 from the 9/23/09 analysis
• Series 1997, 1998, and 2001 refunded, as compared to Series 1997 and 1998 from the 9/23/09 analysis
• Total refunded par amount of $39,645,000.00, as compared to $25,695,000.00 from the 9/23/09 analysis
• Total refunding par amount of $39,710,000.00, as compared to $25,855,000.00 from the 9/23/09 analysis
• True interest cost of 3.98%, as compared to 4.28% from the 9/23/09 analysis
• Present value savings of $2,196,147.00, as compared to $1,466,012.00 from the 9/23/09 analysis
• Present value savings as a percentage of refunded bonds of 5.54%, as compared to 5.71% from the 9/23/09 analysis
Mr. Holcomb noted that the Authority’s healthy reserve levels had assisted the Authority in maintaining its Aa3 bond rating with Moody’s and AA- bond rating with Standard & Poor’s, which aided in this refunding.
Mr. Holcomb noted that a call notice will be sent out after the bond closing on 1/27/10, and noted that the Authority, on 1/5/10, had directed US Bank to subscribe for U.S. Treasury State and Local Government Series (SLGS) securities, which will be wired into US Bank.
Tom Roach noted that the results given by Mr. Holcomb are net of all fees.
MATT NICHOLS OF SUTHERLAND, ASBILL & BRENNAN PRESENTED THE SERIES 2010 BOND RESOLUTION AND BOND PURCHASE AGREEMENT.CHAIRMAN WINCHESTER APPOINTED STEVEN WOODRUFF AS INTERIM SECRETARY IN THE ABSENCE OF GENE CORNELISON.MOTION BY BUZZ AHRENS AND SECOND BY CHRIS WILBANKS TO AUTHORIZE STEVEN WOODRUFF TO SIGN THE SERIES 2010 BOND RESOLUTION AND BOND PURCHASE AGREEMENT. All members present voted for the motion.
MOTION BY NANCY MARTIN AND SECOND BY CHRIS WILBANKS TO APPROVE THE SERIES 2010 BOND RESOLUTION AND BOND PURCHASE AGREEMENT. GARY WINCHESTER, CHAIRMAN, IS AUTHORIZED TO SIGN THESE DOCUMENTS. All members present voted for the motion.
BRYCE HOLCOMB OF CITIGROUP REPORTED THAT ON 1/6/10, CITIGROUP SUCCESSFULLY MARKETED AND PRICED THE AUTHORITY’S REVENUE REFUNDING BONDS, SERIES 2010. Mr. Holcomb noted that the aggressive pricing helped achieve significant cash flow savings for the Authority. Mr. Holcomb reported a total savings of $3,041,958.00, net present value savings of $2,196,147.00, and net present value savings as a percentage of refunded bonds of 5.54%. - MOTION BY BUZZ AHRENS AND SECOND BY CHRIS WILBANKS TO ADJOURN. All members present voted for the motion.
The meeting adjourned at 3:40 p.m.