2024-023 GO and CO Bond Sales Date: June 21, 2024 Report No. 2024-23
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
City's most recent competitive bond sales for the Series 2024 General Obligation Refunding and
Improvement Bonds and Certificates of Obligation.
BACKGROUND:
The purpose of this report is to provide the City Council with details regarding the sale of Series 2024
General Obligation Refunding and Improvement Bonds and Certificates of Obligation authorized on June 4,
2024, with Bond Ordinances 24-950 and 24-951.
DISCUSSION:
On June 13, 2024, the City's financial advisor, Hilltop Securities, conducted competitive sales for
$117,630,000 in General Obligation (GO) Bonds and $242,790,000in Certificates of Obligation (CO). The
delivery of funds to the City will be made on July 16, 2024.
The GO bonds were awarded to Bank of America Securities and the and CO's were awarded to Morgan
Stanley & Co., LLC., the lowest true interest cost bidders. Below is a list of all participating firms who
placed bids on each issuance.
GO Participating Firms Bid Submission CO Participating Firms Bid Submission
Bank of America Securities 3.592946 Morgan Stanley&Co.LLC 3.814594
J.P.Morgan Securities,LLC 3.617350 J.P.Morgan Securities,LLC 3.872559
Robert W.Baird&Co.Inc. 3.628243 Wells Fargo Bank,NA 3.883218
Wells Fargo Bank,NA 3.632115 Jeffries LLC 3.925862
Mesirow Financial Inc. 3.632428 Robert W.Baird&Co.Inc. 3.997033
TD Securities 3.633930
Jefferies LLC 3.63481
Morgan Stanley&Co.LLC 3.676623
Raymond James&Assoc,Inc. 3.681430
PNC Capital Markets 3.732469
The GO bonds included the issuance of $35,600,000 to fund the fifth year of the 2019 Bond program,
$53,120,000 to fund the first year of voter approved projects from the November 2023 bond election and
refunded a portion of the remaining principal amount the CO Series 2014. As approved by the City Council
on June 4, 2024, the GO bond sale met all the following required parameters listed below:
-Maximum principal amount of sale is $151,660,000;
-Final stated maturity of February 15, 2044;
-Maximum net effective interest rate of 5.00%;
-Delegation authority ends December 4 2024.
Concurrently, the City also completed a competitive CO sale for $242,790,000 to support general
government, solid waste, electric, water, and wastewater projects. As approved by the City Council on June
4, 2024, the CO sale met all the following required parameters listed below:
-Maximum principal amount of sale is $262,330,000
Date: June 21, 2024 Report No. 2024-23
-Final stated maturity of February 15, 2054;
-Maximum net effective interest rate of 5.00%;
-Delegation authority ends December 4, 2024.
The all-in true interest cost for the GOs is 3.62%, and 3.84% for the COs which factors in the interest rate
received plus all issuance costs. The COs have a slightly higher borrowing cost because they have a longer
final maturity. City staff was pleased with the results of both sales.
Please do not hesitate to contact me if you have any further questions on the results of the City's most recent
debt issuance.
STAFF CONTACT:
Randee Klingele, Treasury Manager
940-349-8206
randee.klingele@cityofdenton.com