City of San Antonio - File #: 16-3123

• File #: 16-3123
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 6/2/2016
• Posting Language: An Ordinance authorizing the issuance of one or more series of not to exceed $609,035,000 “City of San Antonio, Texas Electric and Gas Systems Revenue Refunding Bonds, New Series”, as further distinguished by series in the event of multiple issuances; providing the terms, conditions, and specifications for such Bonds, including the approval and distribution of an official statement pertaining thereto; making provisions for the payment and security thereof on a parity with certain currently outstanding obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; authorizing the execution of one or more paying agent/registrar agreements, escrow and trust agreements, and bond purchase agreements; complying with the requirements of the depository trust company; delegating the authority to certain members of the City Public Service Board staff to execute certain documents relating to the sale of the Bonds; enacting other provisions in...

Date	Ver.	Action By	Action	Result
6/2/2016	1	City Council A Session	Motion to Approve	Pass

DEPARTMENT: Finance

DEPARTMENT HEAD: Troy Elliott, Finance Director

COUNCIL DISTRICTS IMPACTED: City Wide

SUBJECT: CPS Energy Financial Transaction

SUMMARY:
CPS Energy requests City Council approval of the following:

A. An Ordinance authorizing the a) issuance of the City of San Antonio, Texas Electric and Gas Systems Revenue Refunding Bonds, New Series 2016 ("Refunding Bonds"), in one or more series and in an aggregate par amount not to exceed $609,035,000, and other financial matters as necessary to refund certain maturities of the City of San Antonio, Texas Electric and Gas Systems Revenue Bonds, New Series 2008 and the City of San Antonio, Texas Electric and Gas Systems Revenue Refunding Bonds, New Series 2009A ("Refunded Obligations") for debt service savings and b) distribution of an Official Statement relating to the Refunding Bonds.

The Ordinance authorizes issuance of the Refunding Bonds, and includes a delegation of authority by the San Antonio City Council to CPS Energy's Designated Financial Officers, defined in the Ordinance to include the CEO or any Treasurer, to be exercised by any of such parties, to issue and set pricing of the Refunding Bonds, as permitted by Chapters 1207 and 1371, as amended, Texas Government Code, respectively, and to undertake necessary matters relating to the foregoing.

BACKGROUND:
CPS Energy issues revenue debt periodically to finance new capital construction and capital improvement projects and / or to refinance, defease, or restructure outstanding revenue debt. CPS Energy has a Debt Management Plan (the "Plan") providing guidelines under which financing and debt transactions are managed. The Plan focuses on providing financial tools to lower debt service cost on outstanding debt, utilizing alternative financing methods to capitalize on present market conditions, outlining an optimal capital structure, and maintaining favorable financial ratios. The proposed Refunding Bonds will realize s...