HomeMy WebLinkAboutWATER CIP BONDS - ITEM 12Issuance of Water
Revenue Bonds,
Series 2024
February 6, 2024
Agenda
CIP Projects to be financed
Proposed Financing Terms
Financing Legal Structure
Staff Recommendations and Timeline
CIP Projects Funded by Bond Proceeds
Beneta Well $2.6M* (FY 2024)
Well Rehab Program $1.2M* (FY 2024-FY 2026)
Lyttle Reservoir $600,000* (FY 2024-FY 2025)
* A portion of the projects will be funded by the 2024 Bond Proceeds
Proposed Financing Terms
Par amount - $4.125 million
Project fund amount - $4 million; issuance expenses - $125k
Tax-exempt interest rate - 4.82%
Term length - 20 Years (4/1/2044 final maturity)
Optionally callable - 10 years on 4/1/2034 at 100%
Semi-annual payments -April 1 and October 1
Average annual payments - $327,509
No debt service reserve fund required; no credit rating required
Lender - Capital One Public Funding, LLC ("Capital One")
Legal Structure of the 2024 Bonds
Principal and interest payments are secured by a pledge and lien of net revenues of
the Water Enterprise, subordinate to the City's outstanding 2016 Bonds and 2020
Bonds.
Water Revenue Bonds outstanding principal.
2016
Bonds:
$21.515
Million
(2041
final
maturity)
2020
Bonds:
$14.335
Million
(2043
final
maturity)
Minimum rate covenant 1.2x and additional bonds test for subordinate bonds.
Recommendations and Timeline
Approving Resolutions authorizing the issuance of the Water Revenue
Bonds, Series 2024.
Approving the following documents as to form:
Installment Sale Agreement — City purchases the projects from PFA and agrees to make debt
service payment.
Indenture of Trust — btw City and Trustee, Bank of New York Mellon.
➢ Commitment Agreement — btw City, PFA, and Capital One.
➢ First Amendments to 2016 and 2020 Indentures of Trust — to allow issuance of series 2024
bonds on subordinate lien.
If approved, transaction to be closed on 2/14/24 and funds delivered.
iN
THANK YOU !