City of San Antonio - File #: 18-3421

• File #: 18-3421
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 6/14/2018
• Posting Language: Ordinance authorizing the issuance of obligations designated City of San Antonio, Texas Electric and Gas Systems Revenue Refunding Bonds, in one or more series and in an aggregate amount not to exceed $530,000,000, and authorizing other matters incident and related thereto [Ben Gorzell Jr., Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]

Date	Ver.	Action By	Action	Result
6/14/2018	1	City Council A Session	adopted	Pass

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott, Deputy Chief Financial Officer


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Consider approval of an Ordinance authorizing the issuance of CPS Energy Revenue Refunding Bonds


SUMMARY:

CPS Energy requests approval by the City Council (the "Council") of the City of San Antonio, Texas (the "City") of the following obligations (collectively, the "Bonds"):

A. Ordinance authorizing the issuance of obligations designated City of San Antonio, Texas Electric and Gas Systems Revenue Refunding Bonds, in one or more series and in an aggregate amount not to exceed $530,000,000, and authorizing other matters incident and related thereto.

The Ordinance authorizes issuance of multiple series of Bonds (within parameters outlined in the Ordinance), and includes a delegation of authority by the 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 approve the pricing provisions of each series of Bonds (within the parameters outlined in the Ordinance), as permitted by Chapters 1207 and 1371, as amended, Texas Government Code, respectively, and to undertake necessary matters relating to the foregoing and approves and authorizes the use of related transaction documents.


BACKGROUND INFORMATION:

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 costs on outstanding debt, utilizing alternative financing methods to capitalize on present market conditions, outlining an optimal capital structure, and maintaining favorable financial ratios. The anticipated transactions are consist...