Fiscal Note
This resolution authorizes the issuance of $30,765,000 in water utility revenue bonds to be repaid over a twenty-year amortization period. Proceeds will finance a water main replacement program, new water main construction, reconstruction of a booster pumping system and other capital projects. The true interest rate on the entire issuance is 3.41 percent. Annual coupon rates are 4 percent. Net interest costs over the twenty year life of the bonds are $12.7 million. The winning bid includes an issuance premium of $1.8 million, which can be applied toward establishing a debt service reserve fund for the bonds and to help finance project costs. Debt service on the bonds will be approximately $2.2 million annually, paid from water utility revenues. The bonds received a Aa2 rating with a negative outlook from Moody's.
Title
Resolution Authorizing and Providing for the Sale and Issuance of $30,765,000 Water Utility Revenue Bonds, Series 2018A, and All Related Details
Body
See attached Body.