Bond Offering

City Council adopts an annual Capital Improvement Program (CIP) to address immediate and long-term needs for general capital improvements, funded through various sources such as debt proceeds, grants, impact fees, and pay-as-you-go cash funding. The Fiscal Year 2023-2024 (FY 2024) CIP was based on a long-term financial plan that includes future financing for approved projects.

Pursuant to this long-term financial plan, in June 2022, the City issued the $132,000,000 Limited Obligation Bond, Series 2022 (2022 LOB) as an interim facility. The 2022 LOB optimizes financing costs with an interest-only drawdown structure, functioning as a line of credit to match borrowing with actual project spending. As of June 30, 2023, the City had drawn $76,340,958 out of the maximum $132,000,000. The intention has been to refinance the 2022 LOB with long-term debt in FY 2024. The City now plans to issue $132,000,000 in bonds to refinance the drawn amount under the 2022 LOB and cover the remaining project costs.

Additionally, the City intends to combine this financing with a refunding of the Limited Obligation Bond, Series 2013A (2013A LOB), which is expected to result in an estimated net present value (NPV) savings of 4.9% or $255,847.

Considering both purposes, the proposed financing totals $138,000,000.