Fiscal Note
This resolution authorizes the issuance of $9.4 million in water utility taxable revenue promissory notes to be repaid over a ten-year amortization period. Proceeds will finance operating costs, including repayment of a $6.1 million loan made from the city's general fund at the end of 2017 to adequately fund restricted cash accounts maintained as a requirement of the utility's bond covenants. The true interest cost on the entire issuance is 3.42%. Annual interest rates range from 3.0% to 3.55%. Net interest costs over the ten year life of the notes are $1.7 million. Debt service on the notes will be approximately $1.2 million annually, paid from water utility revenues. The notes received a Aa2 rating with a negative outlook from Moody's.
Title
Resolution Authorizing and Providing for the Sale and Issuance of $9,390,000 Taxable Water Utility Revenue Notes, Series 2018B, and All Related Details
Body
See attached Body.