series 2013 utility system improvement bonds may 14 th, 2013
TRANSCRIPT
Series 2013 Utility System
Improvement BondsMay 14th, 2013
HISTORYMay 2011
Discussed potential refunding of Series 2003 Bonds for Interest savings with Financial Advisor (Mark Galvin, First SouthWest)
July 2011Identified need to finance a portion of the Utility
5 -year Capital Improvement Plan (CIP)October 2011
Plan created to refinance 2003 bonds and obtain new money in a single transaction to save on financing costs
April 2012Council approved Utility Rate Study (Resolution 2012-34)
October 2012Preliminary Utility Rate Study and Bond Feasibility Report presented to Council indicating rate increase needed
HISTORY
January 15, 2013First public meeting on results of Utility Rate Study
February 19, 2013Council approved utility rate increase as recommended
by Rate Study and Bond Feasibility Report(Resolution 2013-10, effective April 1, 2013)
March 22, 2013A+ Credit rating received from Fitch for existing bonds
May 13, 2013Meeting with Standard & Poor's (S&P) to request a rating
in advance of bond issueMay 20, 2013
Received A+ bond rating from S&P & Fitch for the new bond issue
SUPPLEMENTAL BOND RESOLUTION
Authorizes refinancing of 2003 Utility BondsAuthorizes new money for Zero Liquid Discharge (ZLD)
& other projects ($15 million)Approves offering documents
Preliminary Official Statement (POS)• Council will be deeming this final under securities
rules & regulationsAuthorizes competitive sale of bondsProvides flexibility in buying municipal bond
insurance, if beneficial
SUPPLEMENTAL BOND RESOLUTION
Authorizes modernizing amendments to original Master Bond Resolution Incorporates changes to allow issuance of direct
subsidy bonds (a.k.a. Build America Bonds) Eliminates certain rating requirements regarding use
of sureties in the debt service reserve fund Amends consent rights of future bondholders Other minor changes as needed
NEXT STEPS
May 21, 2013 Council approval of supplemental resolution
May 24, 2013 Print POS, advertise summary NOS(Notice of Sale)
June 11, 2013 Competitive sale & award of bonds
July 9, 2013 Closing on sale of bonds
QUESTIONS?