HomeMy WebLinkAboutPOWERPOINT WATER REVENUE BONDIssuance of
2011Water Revenue
Bonds, 2011 Series A
The 2011 Water Revenue Bonds (Bonds) to be issued are
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not to exceed $22 million.
The water rates adopted June 15, 2010 were structured
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to provide the revenue necessary to issue the proposed
Bonds and meet the principal and interest payments for
the life of the Bonds.
The net bond proceeds of approximately $20 million
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will finance various infrastructure improvements to the
City’s water system.
The two major projects that will be completed with the net
bond proceeds are:
Rawlings Reservoir (estimated$14.5 million). The existing
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reservoir will be replaced with a new facility, increasing the
system storage capacity 2 million gallons. This increase in
storage will benefit the City’s water system for daily
operations, and emergencies such as fire.
Tustin Avenue Well (estimated$4.5 million). The existing well
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will be replaced with a modernized well with higher capacity
reducing the reliance on imported water.
Standard & Poor’s underlying rating for the City’s water fund
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is “AA” with a stable outlook.
Interest rates on the bonds are estimated to be 5.10% to
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5.15%.
Staff requests City Council adopt TPFA resolution 11-02 and
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City resolution 11-39 approving bond documents and
authorizing all actions necessary to consummate the issuance
and sale of the Bonds.
Upon approval bond pricing is scheduled to be May 11, 2011
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and the Bonds are expected to close May 25, 2011.
The Financing Team is available for any questions.
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