Title
Resolution Authorizing the Issuance and Sale to the Virginia Resources Authority of the City of Hampton’s Convention Center Refunding Revenue Bond in the Maximum Principal Amount Not to Exceed $71,600,000 to Refund all or a Portion of the City’s Convention Center Refunding Revenue Bonds, Series 2011 and 2012, and Providing for the Form, Details, Documentation and Payment of Such Bond
Purpose
PURPOSE/BACKGROUND:
The City of Hampton participated in Virginia Resources Authority's (VRA’s) Virginia Pooled Financing Program (VPFP) in spring 2011 and spring 2012, issuing a combined principal amount of $86,210,000 through two loans. The two VPFP loans provided debt service savings to Hampton by refinancing bonds issued by the City in November 2002 that financed the construction of the Hampton Convention Center. Based on current estimated market interest rates, Hampton once again has an opportunity to refinance the Convention Center debt for debt service savings.
Based on current, estimated taxable market interest rates, a refinancing of the prior 2011 and 2012 loans is estimated to generate approximately $9,480,000 in cash flow savings through reduced interest payments compared to the existing debt over the remaining life of the loans. Annually, the refinancing is estimated to produce savings of approximately $846,000 in year one (FY 2020) and approximately $575,000 in each year thereafter through maturity in FY 2035. The final maturity of the refinancing will not extend beyond the current final maturity of the 2011 and 2012 loans that are being refinanced. The refinancing is expected to close on November 20, 2019.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Approve the Resolution
Body
WHEREAS, the Public Finance Act of 1991, Sections 15.2-2600 et seq. of the Code of Virginia of 1950, as amended (the “Public Finance Act”), permits the issuance of bonds, when authorized by the Council of...
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