Focus Area: Economy
Staff Contact: Jamie Robichaud, Clara Bernauer
Subject: Consideration of Resolution No. 25-1038 authorizing the public sale of Water and Sewer System Improvement Bonds, Series 2025.
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title:
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Consideration of Resolution No. 25-1038 authorizing the public sale of Water and Sewer System Improvement Bonds, Series 2025.
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Summary:
The City’s bond counsel, Gilmore & Bell, has prepared Resolution No. 25-1038 authorizing the sale of Water and Sewer System Revenue Bonds, Series 2025, in the approximate principal amount of $38,190,000. The proposed Revenue Bond issuance will provide funding for the following projects:
• Cedar Creek WWTP Expansion Phase II (BNR)
• Cedar Creek WWTP Solids Handling Rehabilitation
• Indian Creek Trunk Main Rehabilitation
• Super Critical Water Oxidation Pilot
• Waterline Rehabilitation
• West Cedar Creek Sewer Interceptor
• WTP2 Chemical Feed Modifications
• WTP2 Electrical Modification Improvements
• WTP2 Membrane Module Replacement
Project expenditures funded by this bond issue total $36,281,656. The remaining amount of issuance covers debt service requirements related to debt service reserve fund and costs of issuance. Revenue Bonds are secured by future user fee revenues, rather than the City’s ability to levy taxes. Series 2025 has a 20-year term.
The City is tentatively scheduled to accept bids on June 11th, 2025. The Mayor is authorized to award the sale of the Series 2024 Bonds to the submitter of the best proposal or reject all proposals per Resolution No. 25-1038, provided that the principal amount does not exceed $40,500,000 and the true interest cost of the Series 2025 Bonds does not exceed 5.75%.
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Financial Impact:
The amount of Water and Sewer Revenue Bonds, Series 2025, is approximately $38,190,000.
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Action Needed:
Approval of Resolution No. 25-1038 to authorize the sale of Water and Sewer System Improvement Revenue Bonds, Series 2025.
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Attachment(s):
A: Draft Sale Resolution
B: Draft Summary Term Sheet