COUNCIL AGENDA ITEM
SUBJECT:
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Refinancing the Series 2009 and Series 2012 Water and Sewer Revenue Notes and combining the City's Water and Sewer System with the Stormwater System
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DEPARTMENT:
Finance & Environmental Services
SUMMARY:
The City' outstanding water and sewer system Series 2009 Note is schedule to mature on October 1, 2016. The loan has an outstanding balance of $3,758,571 and will need to be refinanced. In discussions with the City's Finance Advisor the City has been discussing including in the refinancing the restructuring of the Series 2012 water and sewer revenue note which has an outstanding balance of $6,056,000 . By restructuring both Series 2009 and 2012 Note and extending the final maturity the City will have the opportunity to reduce its current annual debt service over the next nine years. In addition by refinancing of both of these notes the City has the opportunity to combine our water and sewer system with our existing storm water system. Many cities have or are considering combining their water and sewer system with their stormwater system because a combined water, sewer and storm water system will be viewed by the banks and credit markets as a stronger credit with greater debt service coverage. The ability to combine the two systems is only because we have an opportunity to refund all of the existing water and sewer debt that are secured by water and sewer revenues. By refunding all of the debt the City can provide for a new master resolution that pledges the revenues of both systems to this and any future debt issuance. A combined water, sewer and stormwater system will allow the stormwater utility to leverage off the stronger water and sewer system for any future debt issuance. It is expected the City would solicit bank requests for proposal in February 2016.
BUDGETED ITEM: ? Yes ? No ? Not Applicable
BUDGET AMENDMENT REQUIRED: ? Yes ? No ? Not Applicable
RECOMMENDED ACTION:
Approv...
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