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Agenda Item: 15(a) |
Prepared By: Marcia Saulo, Director, Finance |
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Business: City Council Item |
Department: Finance |
Subject:
Title
Resolution - Approving the Series 2026 Utility System Refunding Revenue Bonds - Marcia Saulo, Director, Finance
Body
BACKGROUND:
This agenda item requests City Council approval of the Resolution authorizing the issuance and competitive sale of the Utility System Refunding Revenue Bonds, Series 2026, in an amount not to exceed $31 million. This action is necessary to advance the refinancing of the City’s Series 2016 Utility System Refunding Revenue Bonds, generating significant net present value savings for the Water and Sewer Utility System.
What the Resolution Does
• Authorizes the City to issue and competitively sell the Series 2026 Bonds.
• Approves all required financing documents, including the Official Notice of Sale, Summary Notice of Sale, Preliminary Official Statement, Continuing Disclosure Certificate, Registrar and Paying Agent Agreement, and Escrow Deposit Agreement.
• Delegates authority to the City Manager to conduct the competitive sale, set final pricing terms, and award the bonds to the lowest bidder.
• Establishes the legal framework for the refunding and defeasance of the Series 2016 Bonds.
• Confirms that the Series 2026 Bonds are not general obligations of the City and are payable solely from pledged Utility System Net Revenues and certain Capital Facilities Fees.
Status & Schedule
The financing team has completed the preparatory work including drafting and iterations of the Bond Resolution, POS/NOS and Rating pages. The full final document package is attached.
Upcoming steps contingent on Council approval on August 3:
• Rating agency call (week of August 3).
• Final ratings received August 10.
• Posting POS/NOS and publication of Summary Notice of Sale on August 12.
• Competitive sale on August 25 at 10:30 a.m. via PARITY/BiDCOMP.
• Closing expected September 16, with Series 2016 Bonds redeemed October 19.
Why Approval is Needed Now
Council approval is the final required action before the City can proceed with publishing the POS/NOS, engaging rating agencies, and conducting the competitive sale. Without approval of this Resolution, the City cannot execute the refunding transaction or realize the projected savings.
FUNDING SOURCE / FISCAL IMPACT: N / A
PUBLIC NOTICE REQUIREMENTS: N / A
NOTICE APPEARANCE DATE(S): N / A
RECOMMENDATION:
Approve the resolution as presented.
POTENTIAL MOTION:
I make a motion to approve Resolution 26-37 authorizing the issuance and competitive sale of the Utility System Refunding Revenue Bonds, Series 2026, in an amount not to exceed $31 million.