[I. Call to Order]
[00:00:09]
THE TIME FOR CONVENING HAS ARRIVED. I WOULD LIKE TO CALL THIS SPECIAL MEETING OF THE PUBLIC FACILITIES AUTHORITY TO ORDER FOR TUESDAY, SEPTEMBER THE 16TH, 2025. WILL THE SECRETARY PLEASE MAKE THE ANNOUNCEMENTS AND CALL THE ROLL? ALL RIGHT. FIRST, I WOULD LIKE TO REMIND THOSE IN ATTENDANCE TO PLEASE SILENCE ALL CELL PHONES AND OTHER ELECTRONIC DEVICES AT THIS TIME. AS I CALL ROLL. PLEASE CONFIRM YOUR ATTENDANCE. CHAIR. RUSTY POWELL.
PRESENT MEMBER JOHN PAULSON. MEMBER. MELODY KELLY. PRESENT MEMBER. MELISSA MUELLER. HERE.
[III. Approval of Meeting Agenda]
MEMBER JODY ROCHELLE. MEMBER. TIBBY DEJULIO. MEMBER ANDY BAUMANN. IS THERE A MOTION TO APPROVE THE MEETING AGENDA? MR. DEGIULIO PUBLIC FACILITIES? YEAH. MR. MR. CHAIRMAN, SORRY.THAT'S ALL RIGHT. MR. CHAIRMAN, I MOVE APPROVAL OF THE MEETING AGENDA FOR THE SPECIAL CALLED MEETING FOR TUESDAY, SEPTEMBER 16TH, 2025 OF THE PUBLIC FACILITIES AUTHORITY. HAVE A MOTION BY MR. DEGIULIO. IS THERE A SECOND? SECOND. MOTION BY MR. DEGIULIO, SECONDED BY MR. PAULSON, THAT WE APPROVE THE MEETING AGENDA FOR THE PUBLIC FACILITIES AUTHORITY. IS THERE ANY DISCUSSION? HEARING NONE. WE'LL CALL THE QUESTION THE QUESTIONS ON APPROVAL OF THE MEETING AGENDA. ALL IN FAVOR, SAY AYE. AYE. OPPOSED? NO MEETING AGENDA IS APPROVED.
[IV. Approval of Meeting Minutes]
EXCUSE ME. A LITTLE FALL POLLEN. IS THERE A MOTION TO APPROVE THE MEETING? MINUTES? CHAIRMAN.PAUL. MISS ROCHELLE, I MOVE THAT WE APPROVE THE AGENDA. THE MEETING MINUTES FOR AUGUST 5TH, 2025. WE HAVE A MOTION BY MISS ROCHELLE. IS THERE A SECOND? SECOND MOTION BY MISS ROCHELLE, SECONDED BY MISS MUELLER, THAT WE APPROVE THE MEETING MINUTES OF THE AUGUST 5TH, 2025 MEETING.
IS THERE ANY DISCUSSION? HEARING? NONE. WE'LL CALL THE QUESTION. THE QUESTION IS ON
[V. New Business]
APPROVAL OF THE MINUTES. ALL IN FAVOR OF THE MOTION? SAY AYE. OPPOSED? NO. THE MINUTES ARE APPROVED. MOVING TO NEW BUSINESS. SECRETARY WILL PLEASE CALL THE FIRST ITEM. AGENDA ITEM NUMBER FOR 20 2517. THIS IS REQUEST FOR PUBLIC FACILITIES AUTHORITY CONSIDERATION OF THE SUPPLEMENTAL BOND RESOLUTION IN THE CITY OF SANDY SPRINGS PUBLIC FACILITIES AUTHORITY, PRESENTED BY GENERAL MANAGER IAN FREEMAN. MISS FREEMAN. GOOD EVENING, MR. CHAIRMAN, AND MEMBERS OF THE PFA. THIS EVENING. I AM PLEASED TO BE JOINED BY JIM WOODWARD, OUR BOND COUNSEL, AND DAVID CHEATWOOD, OUR FINANCIAL ADVISOR, WITH FIRST TRY ON ON AUGUST 5TH COUNT, THE PFA AUTHORIZED THE ISSUANCE OF THE PLANNED 50.5 MILLION NOT TO EXCEED BOND ISSUANCE FOR THE CITY OF SANDY SPRINGS FIRE AND SAFETY PROJECTS. THIS MORNING, THE BOND SALE OCCURRED, AND MR. CHEATWOOD IS GOING TO COME UP AND DISCUSS THE RESULTS OF THAT AND THE NEXT STEPS IN THIS PROCESS, MR. CHEATWOOD. MAYOR, COUNCIL MEMBERS. YEAH, WE NEED TO TURN THE MIC ON. HELLO? YEAH, OKAY. THERE YOU GO. ALL RIGHT.WELL, GOOD EVENING. THANKS VERY MUCH FOR HAVING ME HERE TONIGHT. GOOD TO SEE YOU ALL AGAIN. AS MISS FREEMAN RELAYED, I'M HERE TO PROVIDE YOU WITH THE RESULTS OF YOUR BOND SALE THIS MORNING.
SO AT 1030 THIS MORNING, THE PUBLIC FACILITIES AUTHORITY SOLD ITS REVENUE BONDS VIA A COMPETITIVE SALE. SO IT WAS OPEN TO ALL UNDERWRITERS OUT THERE TO GO AND BID ON YOUR BONDS. WE GOT A TOTAL OF 13 BIDS FROM UNDERWRITERS TO BUY YOUR BONDS, WHICH IS A VERY GOOD NUMBER. WE DO THESE VERY REGULARLY AND GETTING INTO DOUBLE DIGITS IS IS VERY, VERY POSITIVE. PART OF THAT IS DUE TO THE SIZE. IT WAS A GOOD SIZE. IT WAS BIG ENOUGH TO ATTRACT SOME OF THE BIGGER UNDERWRITERS, BUT NOT TOO BIG TO EXCLUDE SOME OF THE MID-TIER UNDERWRITERS AS WELL. AND THEN ALSO YOUR CREDIT RATING. YOU HAD TRIPLE-A RATINGS ON THESE BONDS. SO THE HIGHEST CREDIT RATINGS POSSIBLE. SO THAT APPEALED TO A BROAD GROUP OF UNDERWRITERS. THERE YOU'LL SEE THE LISTING OF THE DIFFERENT UNDERWRITERS THAT BID ON THIS DEAL. AND IT'S RANKED FROM LOWEST TRUE INTEREST COST TO HIGHEST AND THE LOWEST TRUE INTEREST COST IS THE WINNER OF THE DEAL. AND YOU'LL SEE THAT ROBERT W BAIRD PROVIDED THE LOWEST TRUE INTEREST COST OF 4.185%. AND SO, SUBJECT TO YOUR APPROVAL OF THIS RESOLUTION AND CITY COUNCIL APPROVAL AS WELL, LATER IN THE EVENING, THESE BONDS WILL BE AWARDED TO R.W. BAIRD. AS I MENTIONED, AS A PART OF THIS PROCESS, THE CITY'S TRIPLE A CREDIT RATINGS WERE AFFIRMED, WHICH WAS GREAT.
AND THEN IF YOU LOOK AT THE NEXT PAGE, JUST TO GIVE YOU THE FINAL SET OF NUMBERS HERE. SO THE GOAL, THE TARGET OF THIS TRANSACTION WAS TO GENERATE $50 MILLION INTO A CONSTRUCTION FUND THAT WOULD BE USED TO FUND THREE DIFFERENT FIRE STATION PROJECTS THROUGHOUT THE CITY.
THOSE PROJECTS ARE LISTED THERE AT THE TOP. SO WE TARGETED A $50 MILLION PROJECT FUND. IN THE CURRENT MARKET ENVIRONMENT, YOU GENERATE A PREMIUM ON THE BOND SALE, AND SO YOUR FINAL PAR AMOUNT OF BONDS WILL BE 48,965,000. THAT, COUPLED WITH THE PREMIUM, WILL PROVIDE YOU
[00:05:02]
ENOUGH TO COVER THE PROJECT FUND DEPOSIT OF 50 MILLION AND PAY ALL THE COST OF ISSUANCE AND UNDERWRITERS DISCOUNT THERE FROM A REPAYMENT STRUCTURE WE HAVE BEEN RUNNING. AND THIS IS THE CASE HERE WITH THE FINAL NUMBERS LEVEL ANNUAL DEBT SERVICE. SO THE SAME PAYMENT EACH AND EVERY YEAR. AND THIS WILL BE RIGHT AT $2,935,000 PER YEAR STARTING IN THE CURRENT FISCAL YEAR. AND IT'S A 30 YEAR REPAYMENT TERM GOING OUT TO 2055. AND AGAIN, THAT FINAL BLENDED INTEREST COST OF 4.18%. SO THAT IS BELOW ALL THE ESTIMATES WE'VE BEEN RUNNING TO DATE. IT WAS NICE. WE CAUGHT A LITTLE INTEREST RATE RALLY OVER THE LAST WEEK AND A HALF. AND SO THE TIMING WAS PRETTY MUCH PERFECT HERE. SO VERY PLEASED WITH THE RESULTS AND BIG CONGRATULATIONS TO THE PUBLIC FACILITIES AUTHORITY AND THE CITY AS WELL. HAPPY TO ANSWER ANY QUESTIONS. Y'ALL HAVE ANY QUESTIONS OF OUR BOND OR OUR FINANCIAL ADVISOR? YES. MR. PAULSON THANK YOU. SO I REMEMBER WHEN WE FIRST FINANCED THIS BUILDING, WE HAD AN INTEREST RATE. AND THEN WE WENT BACK A COUPLE OF YEARS LATER INTO THE MARKETPLACE AND REFINANCED IT BECAUSE THE INTEREST RATES WENT DOWN. ASSUMING THAT HAPPENS IN THE FUTURE, CAN WE DO THE SAME THING WITH THIS MONEY? YES, SIR. YOU HAD THESE BONDS WERE SOLD WITH A TEN YEAR PREPAYMENT FEATURE, SO YOU CAN'T REFINANCE IT OR PREPAY IT FOR THE FIRST TEN YEARS. BUT STARTING IN YEAR TEN AND THIS IS TECHNICALLY IT'LL BE NINE AND A HALF YEARS.IT WILL BE ON MAY 1ST OF 2035, AND ANY TIME THEREAFTER YOU CAN REFINANCE. YOU CAN PREPAY ALL OR A PORTION, BUT YOU WILL HAVE ANOTHER CRACK AT POTENTIALLY LOWER RATES IN THE FUTURE. SO FOR THE FIRST TEN YEARS YOU CAN'T TOUCH IT. THAT'S CORRECT. ALL RIGHT. THANK YOU. WHICH WHICH WAS THE CASE WITH YOUR 2015 BONDS I THINK YOU WERE REFERRING TO AS WELL. THOSE WERE SOLD WITH A TEN YEAR CALL. THOSE WERE REFINANCED EARLIER BACK IN 2020. SLIGHTLY DIFFERENT RULES BACK IN 2020 VERSUS TODAY IN TERMS OF WHAT YOU DID. BUT THAT WAS THE CASE ORIGINALLY BACK IN 2015. EVEN THOUGH WE REFINANCED THOSE, THE THE BOND HOLDERS DON'T GET PAID.
THE FIRST ONES DON'T GET PAID UNTIL JUNE OF NEXT YEAR. RIGHT. THAT MONEY'S BEEN SITTING THERE.
YEAH. SO IN IN ESCROW. YEAH. YEAH. MR. BAUMANN WAS THAT, WAS THAT A REFUNDING. WAS THAT. YES, SIR. IN 2020, YOU REFUNDED YOUR 2015 BONDS. TECHNICALLY A LITTLE DIFFERENT THAN A REFINANCE. VERY. IT IS SIMILAR, ESSENTIALLY. YEAH, BUT TO THE MAYOR'S POINT, THOSE BONDS, THOSE BOND PROCEEDS FROM 2020 HAVE BEEN SITTING IN AN ESCROW UNTIL NEXT YEAR. QUESTION FOR YOU. CAN YOU REPORT ON ANY BOND SALES TODAY TO SEE HOW WE COMPARED? I DON'T HAVE ANY COMPS FROM TODAY. YOU KNOW, WE WERE IN THE MARKET IN THE LAST. IT'S NOT QUITE AN APPLES TO APPLES, BUT WE WERE IN THE MARKET WITH A 20 YEAR GENERAL OBLIGATION BOND FOR A LARGE COUNTY IN SOUTH CAROLINA THAT HAD TRIPLE-A CREDIT RATINGS. AND THEIR FINAL INTEREST COST WAS IN THE LOW 4% RANGE. THAT WAS THAT'S A 20 YEAR DEAL, THOUGH, RIGHT? THAT WAS A 20 YEAR DEAL. SO NOT QUITE APPLES TO APPLES, BUT I DON'T HAVE ANY OTHER COMPS FROM TODAY THAT SOLD TO TO TELL YOU THAT. I WILL SAY OVER THE LAST WEEK AND A HALF, INTEREST RATES IN GENERAL HAVE GONE DOWN ABOUT A QUARTER PERCENT JUST WITH THE RALLY. SO THE TIMING WAS VERY GOOD. BUT I DON'T HAVE ANY COMPS TODAY. SORRY. ANY OTHER QUESTIONS? OKAY. GREAT. THANK YOU. ARE WE READY? ANYTHING ELSE, MR. FREEMAN? WE HAVE TO ADOPT THIS RESOLUTION. I JUST WANT TO MAKE SURE THERE WAS NO OTHER. OKAY. I'M SORRY. ALL RIGHT. YOU'VE HEARD THE REPORT OF THE GENERAL MANAGER AND THE FINANCIAL ADVISOR. WHAT'S THE DESIRE OF THE PFA CHAIRMAN? PAUL? MR. PAULSON, I MOVE APPROVAL OF AGENDA ITEM PFA 20 2517. CONSIDERATION OF THE SUPPLEMENTAL BOND RESOLUTION OF THE CITY OF SANDY SPRINGS PUBLIC FACILITIES AUTHORITY. WE HAVE A MOTION BY MR. PAULSON. IS THERE A SECOND MOTION BY MR. PAULSON, SECONDED BY MR. DEGIULIO THAT WE APPROVE? AGENDA ITEM PFA 20 2517. A SUPPLEMENTAL BOND RESOLUTION OF THE CITY OF SANDY SPRINGS PUBLIC FACILITIES AUTHORITY. ANY DISCUSSION? HEARING? NONE.
WE'LL CALL THE QUESTION. THE QUESTION IS ON AGENDA ITEM FOR 2025 117 A SUPPLEMENTAL BOND RESOLUTION OF THE CITY OF SANDY SPRINGS PUBLIC FACILITIES AUTHORITY. ALL IN FAVOR OF THE MOTION SAY AYE. AYE. OPPOSED? NO. THE ITEM IS APPROVED. THE CLERK WILL PLEASE READ THE NEXT ITEM. EXCUSE ME. THIS IS AGENDA ITEM NUMBER PFA 20 2518. CONSIDERATION OF A RESOLUTION APPROVING THE SUBSTITUTION OF THE SECURITY FOR THE 2020 ESCROW FUND IN CONNECTION WITH THE REFUNDING OF THE SERIES 2015 BONDS, IS PRESENTED BY GENERAL MANAGER IAN FREEMAN.
MR. FREEMAN, THANK YOU, MR. CHAIRMAN. MEMBERS OF THE PFA. THIS IS A COMPLEMENTARY ACTION TO THE ACTION THAT YOU JUST TOOK. BUT IT RELATES TO OUR OLDER BONDS. I'M GOING TO ASK MR. CHEATWOOD TO COME BACK UP TO THE PODIUM AS WELL. WE WERE APPROACHED EARLIER THIS YEAR BY HILLTOP SECURITIES, WHICH IS A FIRM THAT SPECIALIZES IN IDENTIFYING. I THINK THE BEST WAY TO DESCRIBE IT IS POTENTIAL COST SAVING MEASURES ON MUNICIPAL BONDS. AND THEY IDENTIFIED ONE THAT THEY BROUGHT TO OUR ATTENTION. AND OF COURSE, WE BROUGHT IT TO THE ATTENTION OF FIRST TRY ON. AND I'M GOING TO ASK MR. CHEATWOOD TO GIVE YOU AN OVERVIEW OF THIS
[00:10:02]
TRANSACTION. MR. CHEATWOOD, THANK YOU AGAIN. AND SO THIS ACTUALLY TIES INTO WHAT WE WERE JUST TALKING ABOUT WITH THE REFINANCING THAT CLOSED BACK IN 2020, THOSE 2020 BONDS REFINANCED YOUR 2015 BONDS. THE 2015 BONDS WERE NOT CALLABLE UNTIL MAY 1ST OF 2025. EXCUSE ME MAY 1ST OF 2026. SO IN 2020, YOU ALL SET UP AN ESCROW, YOU PUT MONEY INTO THAT ESCROW AND YOU INVESTED IN CERTAIN TREASURY OBLIGATIONS. AND THAT MONEY HAS BEEN SITTING THERE.IT'S PLANNED TO PAY OFF. IN MAY OF 26, HILLTOP BROUGHT AN IDEA TO THE CITY AND THE PFA TO SAY, LOOKING AT THE DIFFERENT ESCROW SECURITIES IN THERE, AND PARTICULARLY ONE LARGE TREASURY OBLIGATION THAT MATURES AT THE END OF FEBRUARY OF 26, THEY SAID GIVEN WHERE MARKET CONDITIONS ARE TODAY, YOU CAN ACTUALLY SELL THAT TREASURY, BUY A NEW ONE THAT WILL INVEST A LITTLE BIT LONGER, CLOSER TO THE MAY 1ST 26 CALL DATE ON THOSE, AND YOU CAN PICK UP SOME SAVINGS TO THE TUNE OF ABOUT $1 MILLION IS THE CURRENT ESTIMATE. AND SO THIS IS PURELY JUST AN OPPORTUNITY. THERE'S NO THERE'S NO ADDITIONAL RISK OR ANYTHING ASSOCIATED HERE. IT'S SIMPLY SELLING ONE SECURITY THAT'S CURRENTLY IN YOUR ESCROW, ONE TREASURY AND BUYING ANOTHER AND INVESTING IT FOR ANOTHER 45 DAYS OR SO, WHICH STILL FITS WITHIN THE REQUIRED TIMELINE.
AND WITH THAT, YOU PICK UP ABOUT $1 MILLION THAT CAN THEN GO BACK TO THE CITY AND THE PFA.
AND I THINK MISS FREEMAN, GOING BACK TO WHAT YOU DESCRIBED BACK AT THE PRIOR ONE IN AUGUST, THAT WAS PART OF YOUR 26 BUDGET INFORMATION TO RIGHT OR YOUR WHAT YOU BUDGETED FOR NET DEBT SERVICE ON THIS. WE DID YEAH. SO IT'S IT'S AN OPPORTUNITY TO TAKE ADVANTAGE OF WHERE INTEREST RATES ARE AND INVEST A LITTLE BIT LONGER AND FREE UP ABOUT $1 MILLION IN THAT ESCROW.
OKAY. ALL RIGHT. YOU'VE HEARD THE REPORT OF THE GENERAL MANAGER. WHAT'S THE DESIRE OF THE PUBLIC FACILITIES AUTHORITY CHAIRMAN PAUL? MR. PAULSON, I MOVE APPROVAL OF AGENDA ITEM PFA 20 2518 CONSIDERATION OF RESOLUTION APPROVING THE SUBSTITUTION OF THE SECURITY FOR THE 2020 ESCROW FUND IN CONNECTION WITH REFUNDING OF THE SERIES 2015 BONDS HAVE A MOTION BY MR. PAULSON. IS THERE A SECOND MOTION BY MR. PAULSON, SECONDED BY MR. DEGIULIO THAT WE APPROVE? AGENDA ITEM FOR 2025 DASH 18 A RESOLUTION APPROVING THE SUBSTITUTION OF SECURITIES FOR THE 2020 ESCROW FUND IN CONNECTION WITH REFUNDING OF THE SERIES 2015 BONDS. ANY DISCUSSION? MR. DEGIULIO? SIR? SIR, I HAVE A QUESTION. I ASSUME WHAT YOU'RE WHAT WE'RE DOING IN HERE IS ARBITRAGING THE DIFFERENCE BETWEEN THE TWO MATURITY DATES WITH INTEREST RATES COMING DOWN, IS IT GOING TO AFFECT THAT ARBITRAGE? WELL, THERE'S A LITTLE BIT OF AN OFFSET THERE. YOU WILL ON THE SECURITY THAT YOU'RE PURCHASING THE INTEREST RATE WITH INTEREST RATES COMING DOWN YOU'RE GETTING A LOWER INTEREST RATE THERE. BUT WITH THE SECURITY YOU'RE SELLING, THE LOWER RATE ACTUALLY MAKES THE PRICE A LITTLE BIT HIGHER.
IT'S NOT ALWAYS AN EXACT WASH, BUT YOU'RE YOU'RE GETTING THE BENEFIT OF LOWER RATES ON ONE SIDE WHEN YOU'RE SELLING THE CURRENT ONE THAT'S IN THERE, EVEN THOUGH THE ONE YOU'RE BUYING, THE RATES ARE LOWER THAN THEY WERE A WEEK AND A HALF AGO. FOR INSTANCE, IS THIS IS THIS A NEW PROCESS? BECAUSE I'VE NEVER HEARD OF THIS PROCESS BEFORE. IT'S NOT A IT'S NOT A REGULAR OCCURRENCE. WE DON'T SEE IT A LOT. OFTENTIMES AGAIN, THIS GOES BACK TO 2020 WHEN THIS ESCROW WAS PUT IN PLACE. YOU ARE BUYING TREASURY OBLIGATIONS THAT REALLY MATCH UP RIGHT TO THE DAY OF WHEN YOU NEED THEM. BACK IN 2020, THE BEST OPTION AT THE TIME WAS THE ONE THAT PRODUCED THE LOWEST COST TO THE CITY, AND THE PFA AT THE TIME WAS THE ONE THAT MATURED IN FEBRUARY. IT JUST SO HAPPENS NOW THERE'S ONE THAT'S AVAILABLE IN SEVERAL AVAILABLE AT THE END OF APRIL. THAT'S MORE THAT CAN PRODUCE MORE INTEREST EARNINGS ON IT. SO IT'S NOT A IT'S NOT A REGULAR OCCURRENCE. ANY OTHER DISCUSSION HEARING NONE. WE'LL CALL THE QUESTION. THE QUESTION IS ON AGENDA ITEM FOR 2025 118 A RESOLUTION APPROVING THE SUBSTITUTION OF THE SECURITY FOR THE 2020 ESCROW FUND, OF THE SECURITY FOR THE 2020 ESCROW FUND IN CONNECTION WITH REFUNDING OF THE SERIES 2020 2015 BONDS. ALL IN FAVOR OF THE MOTION SAY AYE. AYE. OPPOSED? NO. THE ITEM IS APPROVED. IS THERE A MOTION TO ADJOURN? MR. DEGIULIO? MR. MR. DEGIULIO MOVES ADJOURNMENT. IS THERE A SECOND SECOND MOTION BY MR. DEGIULIO, SECONDED BY MR. PAULSON. WE ADJOURN THE PFA. IS
* This transcript was compiled from uncorrected Closed Captioning.