Fiscal Note
This resolution authorizes the issuance of $38.4 million 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, with $15 million of the proceeds used to refinance prior bond issuances at a lower interest rate. The net present value savings of the refunding is $1.135 million (5.9%). The true interest rate on the entire issuance is 3.18%. Annual interest rates range from 4% to 5%. Net interest costs over the twenty year life of the bonds is $12.1 million. The winning bid includes an issuance premium of $4 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 $1.8 million annually, paid from water utility revenues. The bonds received a Aa2 rating with a stable outlook from Moody's.
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Title
A Resolution Authorizing and Providing for the Sale and Issuance of $40,810,000 Water Utility Revenue Refunding and Improvement Bonds, Series 2016, and All Related Detail
Body
SEE "BODY" ATTACHED