HomeMy WebLinkAbout01 POWERPOINT PRESENTATION - WATER REVENUE BONDS City of Tustin - Water Fund
Tustin Public Financing Authority
Issuance of 2013 Water
Revenue Bonds
Issuance of 2013 Water Revenue fonds, continued
The 2013 Water Revenue Bonds (Bonds) to be issued are
not to exceed $ 15 million .
The water rates adopted June 15 , 2010 were structured
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 $ 14 million
will finance various infrastructure improvements to the
City' s water system
Issuance of 2013 Water Revenue Bonds, continued
The two major projects that will be completed with the net
bond proceeds are:
Simon Ranch Reservoir (estimated $ 8. 2 million). The existing
reservoir will be replaced with a new facility and a new
booster pump station , including 1 , 700 feet of 16 77
6" pipe.
Tustin Avenue Well (estimated $4. 5). The existing well will be
replaced with a modernized well with higher capacity
reducing the reliance on imported water.
155uance of 2013 Water Revenue Sonds, continued
Standard & Poor's underlying rating for the City's water fund has
been reaffirmed at "AA" with a stable outlook assuming the fund
maintains its strong performance.
True Interest Cost of the bonds is estimated to be approximately
4.83% and the debt service will be wrapped around the existing debt
service of the Water Fund to produce level debt service payments.
Staff requests City Council adopt TPFA resolution 13-02 and City
resolution 13-87 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 October 8, 2013 and
the Bonds are expected to close October 22 , 2013.
The Financing Team is available for any questions.