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RESOLUTION R-1415-87: A RESOLUTION OF THE CITY OF NORMAN, OKLAHOMA (THE "CITY") APPROVING THE INCURRENCE OF INDEBTEDNESS BY THE NORMAN UTILITIES AUTHORITY (THE "AUTHORITY") ISSUING ITS UTILITY SYSTEM REVENUE NOTE, SERIES 2015 (THE "NOTE"); PROVIDING THAT THE ORGANIZATIONAL DOCUMENT CREATING THE AUTHORITY IS SUBJECT TO THE PROVISIONS OF THE INDENTURE AUTHORIZING THE ISSUANCE OF SAID NOTE; WAIVING COMPETITIVE BIDDING WITH RESPECT TO THE SALE OF SAID NOTE AND APPROVING THE PROCEEDINGS OF THE AUTHORITY PERTAINING TO THE SALE OF SAID NOTE; RATIFYING AND CONFIRMING A LEASE AGREEMENT BY AND BETWEEN THE AUTHORITY AND THE CITY PERTAINING TO THE CITY'S WATER AND SEWER SYSTEMS; AND CONTAINING OTHER PROVISIONS RELATING THERETO.
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BACKGROUND: On November 18, 2003, the Trustees of the Norman Utilities Authority adopted Resolution 0304-51, approving its Revenue Refunding Bonds, Series 2003 (Wastewater Utility). On September 13, 2005, the Trustees of the Norman Utilities Authority adopted Resolution 0506-55, approving its Revenue Refunding Bonds, Series 2005 (Wastewater Utility). On November 28, 2006 the Trustees of the Norman Utilities Authority adopted Resolution 0304-51, approving its Utility Revenue Bonds, Series 2006 (Water Utility).
The average interest rate of these three outstanding NUA Revenue Bonds is 4.048%, and the remaining outstanding principal indebtedness on each issue is listed below:
Debt Issue
2003 Sewer Refunding Bonds - remaining principal, $1,600,000 with Maturity date of 11/1/2016
2005 Sewer Refunding Bonds - remaining principal, $1,315,000 with Maturity date of 11/1/2019
2006 Water Revenue Bonds - remaining principal, $14,390,000 with Maturity date of 12/1/2026
DISCUSSION: Municipal bond market rates have declined since the issuance of these revenue bonds, to the point that the NUA can save debt service costs by "refunding" (refinancing) the outstanding bonds through the issuance of "refunding" (replacement) debt obligations...
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