2022-048 CO GO Bond SaleDate: August 12, 2022 Report No. 2022-048
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
City’s most recent competitive bond sales for the Series 2022 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 2022
General Obligation Refunding and Improvement Bonds and Certificates of Obligation authorized on June 7,
2022, with Bond Ordinances 22-921 and 22-922.
DISCUSSION:
On June 28, 2022, the City along with its financial advisor, Hilltop Securities, conducted competitive sales
for $71,285,000 in General Obligation (GO) Bonds and $112,155,0000 in Certificates of Obligation (CO).
The delivery of funds to the City was made on July 21, 2022.
Both the GO bonds and COs were awarded to Citigroup Global Markets, Inc., the lowest true interest cost
bidders. Below is a list of all participating firms that placed bids on each issuance.
GO Participating Firms Bid Submission CO Participating Firms Bid Submission
1. Citigroup Global Markets, Inc. 3.667846% 1. Citigroup Global Markets, Inc. 3.884955%
2. Robert W. Baird & Co., Inc. 3.687390% 2. Robert W. Baird & Co., Inc. 3.914350%
3. Raymond James & Associates, Inc. 3.738947% 3. Jeffries LLC 3.969616%
4. FHN Financial Capital Markets 3.778095% 4. FHN Financial Capital Markets 4.029251%
5. Raymond James & Associates, Inc. 4.061090%
The GO bonds included the issuance of $59,535,000 to fund the third year of voter approved projects from
the November 2019 bond election and refunded a portion of the remaining principal amount of GO and CO,
Series 2012. As approved by the City Council on June 7, 2022, the bond sale met all the following required
parameters listed below:
- Maximum principal amount of sale is $89,000,000;
- Final stated maturity of February 15, 2042;
- Maximum net effective interest rate of 4.75%;
- Delegation authority ends December 2, 2022.
Concurrently, the City also completed the competitive CO sale for $119,100,777 general government,
electric, water, and wastewater projects. As approved by the City Council on June 7, 2022, the CO sale met
all the following required parameters listed below:
-Maximum principal amount of sale is $121,000,000;
-Final stated maturity of February 15, 2052;
-Maximum net effective interest rate of 5.00%;
-Delegation authority ends December 2, 2022.
Date: August 12, 2022 Report No. 2022-048
The all-in true interest cost for the GOs is 3.67%, and 3.88% 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.
STAFF CONTACT:
Randee Klingele
Treasury Manager
940-349-8206
randee.klingele@cityofdenton.com