Ordinance 31-21
To: Members of Dublin City Council
From: Dana McDaniel, City Manager
Date: July 20, 2021
Initiated By: Matthew L. Stiffler, Director of Finance
Rosa Ocheltree, Deputy Director of Finance
Re: Issuance of Bonds and Refinancing of Existing Debt Follow Up
Background
At the meeting of City Council held on June 28, 2021 additional information related to current debt
payment schedules for the Series 2013 and Series 2014 bonds being refinanced as well as the debt
schedule for the new issuance of Series 2021 bonds was requested. This memo and its attachment
provide the requested information.
Recommendation
Information only.
Office of the City Manager
5555 Perimeter Drive • Dublin, OH 43017-1090
Phone: 614.410.4400 • Fax: 614.410.4490 Memo
Refunding Summary
4
Gross PV Debt Service Savings 4,372,500.78
Transfers from Prior Issue Debt Service Fund -2,536,465.62
Contingency or Rounding Amount 3,775.82
Net Present Value Benefit $1,839,810.98
Net PV Benefit / $19,140,000 Refunded Principal 9.61%
Series 2013 Series 2021 Series 2014 Series 2021 Series 2013 & 2014 Series 2021
Year Debt Service Debt Service Savings Debt Service Debt Service Savings Debt Service Debt Service Savings
2021 - (2,813)*2,813 - (963)*963 - (3,776)*3,776
2022 874,475 775,290 99,185 1,975,106 1,880,650 94,456 2,849,581 2,655,940 193,642
2023 871,775 774,250 97,525 1,979,556 1,883,550 96,006 2,851,331 2,657,800 193,531
2024 873,625 777,150 96,475 944,956 852,700 92,256 1,818,581 1,629,850 188,731
2025 874,875 774,450 100,425 946,706 851,250 95,456 1,821,581 1,625,700 195,881
2026 875,525 776,300 99,225 941,706 849,200 92,506 1,817,231 1,625,500 191,731
2027 877,250 777,550 99,700 935,056 841,550 93,506 1,812,306 1,619,100 193,206
2028 878,100 778,200 99,900 940,656 843,450 97,206 1,818,756 1,621,650 197,106
2029 873,075 773,250 99,825 938,938 844,600 94,338 1,812,013 1,617,850 194,163
2030 872,350 772,850 99,500 872,350 772,850 99,500
2031 875,750 776,850 98,900 875,750 776,850 98,900
2032 873,100 775,100 98,000 873,100 775,100 98,000
2033 874,575 775,200 99,375 874,575 775,200 99,375
Total 10,494,475 9,303,627 1,190,848 9,602,681 8,845,987 756,694 20,097,156 18,149,614 1,947,542
*Represents deposit to the Bond Retirement Fund at closing
To: Members of Dublin City Council
From: Dana McDaniel, City Manager
Date: June 22, 2021
Initiated By: Matthew L. Stiffler, Director of Finance
Re: Providing for the Issuance of Bonds and Refinancing of Existing Debt
Background
This ordinance authorizes the issuance of bonds totaling $19,750,000 for the purpose of refinancing
existing debt to reduce the City’s future interest costs.
At the June 7, 2021 meeting of the Finance Committee, the City’s municipal advisor BakerTilly
indicated that the potential savings were an estimated $1.9 million through 2033. This value
represented a potential present value savings of 9.61%. The City’s debt policy specifies:
the City will consider refunding its debt obligations when it can be clearly demonstrated
that such refunding will result in present value savings of 3-5% of the debt being refinanced.
However, in certain circumstances, lower savings thresholds may be justified.
The City’s policy is consistent with Government Finance Officers Associations (GFOA) best practice
on debt refinancing. These bonds were issued in 2013 and 2014 and based on the metrics outlined
above are an excellent opportunity for the City to reduce future interest costs.
The expectation is that staff will engage the rating agencies regarding these bonds in early August
with pricing to occur in late August and closing to occur in mid-September. This timeline is in
accordance with the 2013 and 2014 bond refinancing guidelines which do not allow it to occur prior
to September 1.
Recommendation
Staff recommend approval of Ordinance 31-21 at the second reading/public hearing on July 26,
2021.
Office of the City Manager
5555 Perimeter Drive • Dublin, OH 43017-1090
Phone: 614.410.4400 • Fax: 614.410.4490 Memo