Addison Plans to Refinance Bonds

During a Work Session prior to the November 9 City Council Meeting, Addison CFO Steven Glickman shared with Council plans to refinance some nearly 10-year-old Certificates of Obligation (CO's) in early 2022. In 2012, the Town issued $14,835,000 in Combination Tax and Revenue CO's for the purposes of acquiring and installing radio and telecommunications equipment for the Town's public safety operations and for water, wastewater, street, and drainage infrastructure improvements within Vitruvian Park. The radio and telecommunications bonds were issued with a fifteen-year debt-life while the Vitruvian infrastructure bonds were issued with a twenty-five-year debt life. The CO's carry a final maturity date of February 15, 2037, but may be called and refunded (refinanced) on February 15, 2022 on a tax-exempt basis.  

 

Refunding the CO's is estimated to create total interest savings of $971,500 with net present value savings of $836,359 (8.83% of the amount refunded). Interest savings of approximately $62,000 to $68,000 per year are estimated for the remaining life of the bonds.

 

You can watch the Council's debt refunding discussion here and read the presentation here.