LTC 410-2021 Water & Sewer Revenue Refunding Bonds Pricing UpdateMIAMI BEACH
OFFICE OF THE CITY MANAGER
NO . LTC#
410-2021
LETTER TO COMMISSION
TO : Honorable Mayor Dan Gelber:
DATE: September 29, 2021
SUBJECT: Water & Sewer Revenue Refunding Bonds Pricing Update
The purpose of this L TC is to advise the City Commission of the savings achieved from
the sale of Water & Sewer Revenue Refunding Bonds, which refinanced outstanding
debt issued for capital improvements to the City's water and sewer system.
On Tuesday, September 28 th , the City team had a very successful pricing of the
refinancing that reflects the bond market's confidence in the City of Miami Beach. The
pricing of the Water & Sewer Revenue Refunding Bonds generated strong investor
interest, with $109 million in orders for the $32.5 million refunding. The refinancing
resulted in $10.8 million in net present value savings and $12.9 million in total savings
over the life of the bonds. The annual savings range from $525,000 to $840,000 in fiscal
years 2022 through 2040. The savings as a percent of bonds refunded is 27%, greatly
exceeding the Government Finance Officers Association recommended minimum
threshold of 3% to 5% savings for a refunding to be economical. The all-inclusive true
interest cost for the refunding bonds is 2.20% for 18 year debt.
If you have any questions or need additional information, please contact John Woodruff,
Chief Financial Officer.
@
ATH/JW