Brandy Klingle, Treasury Manager, presented a reimbursement ordinance on Oct. 13 that would declare the city’s intent to reimburse capital expenditures with proceeds from a future bond sale. The Public Utility Board voted to recommend the ordinance to City Council.

What staff described: The ordinance is a procedural first step in a bond sale cycle and not an authorization to immediately issue all bonds. It notifies that the city intends to reimburse itself with future bond proceeds for certain capital projects and allows projects to begin using available cash while preserving tax‑preferred status for later reimbursement. Klingle said the city typically sells bonds within the same fiscal year and expects the typical bond-sale cadence: notice of intent in April, bond parameters ordinance in May and a bond sale in June with proceeds received in July.

Numeric details provided in the presentation include project totals for utilities: solid waste $18,200,000; water $55,651,541; wastewater $141,892,454; electric $58,434,588, and an aggregate maximum principal amount for all obligations not to exceed $383,998,218. Klingle said the detailed project list is in Exhibit A of the ordinance and that staff will manage timing and amounts; she emphasized the reimbursement ordinance does not require the city to sell all authorized debt.

Why it matters: The reimbursement ordinance preserves the city’s ability to finance capital projects via tax‑preferred obligations or bond instruments in a structured schedule, rather than delaying project starts until after a formal sale. Board members asked about anticipated interest rates; staff declined to speculate on future market rates but said advisors can analyze timing for optimal sale conditions and that recent municipal sales have seen yields generally in the low‑to‑mid 4% area.

Board members moved and seconded a recommendation to council; the vote passed unanimously.

Clarifying points recorded in the meeting: the ordinance will become effective once approved by City Council (expected next week), the city expects to sell obligations within the same fiscal year (anticipated summer 2026 sale), and Exhibit A lists project-level details. Staff committed to provide later reporting on market conditions prior to sale.