The Delray Beach City Commission on Oct. 21 authorized up to $33 million in public improvement bonds to finance renovations at the municipal golf course and set maximum greens-fee rates the city says will cover debt service for the project.

The action follows a presentation by Jay Glover of Public Financial Management, the city’s external financial adviser, who described the planned competitive sale of bonds and reporting of credit ratings from Moody’s and S&P. "I see no reason why when we hear back from them a week from today that your current ratings will not be affirmed," Glover said, noting S&P and Moody’s had reviewed the city’s finances and that market rates had recently trended downward.

City staff said the financing would cover construction costs, a year of capitalized interest while the golf course is closed for construction, and issuance costs. Sam Mehta, director of parks and recreation, told the commission that the city intends to rely on golf-course revenues to pay debt service but would initially honor long-standing permit-holder discounts; the commission discussed whether grandfathered permit rates through 2037 were appropriate.

Why it matters: The bonds allow the city to begin the renovation work already under way and lock in borrowing costs in a falling-rate market. Officials described coordination this week with rating agencies and plans for a competitive bond sale to occur in November, with closing later in the month.

Supporting details: Glover said the financing structure relies on legally available non-ad valorem revenues; staff said that, in practice, revenues from golf operations, restaurant and banquet sales and related enterprise fund receipts are expected to support the debt. City staff also briefed the commission on proposed maximum greens-fee rates tied to a pro forma intended to ensure the golf enterprise pays its own obligations.

Several commissioners thanked staff and the city’s financial and parks teams for work to reach this step. Commissioners voted to approve the bond resolution and a companion resolution that sets the maximum rate structure for the golf course; both measures passed unanimously.

Commission discussion highlighted one rate-policy tension: a small group of long-standing permit holders would be grandfathered at reduced rates through 2037. Commissioner [last name used after first reference] said the grandfathering was an industry standard but urged staff to review whether the extended term and discount were appropriate when future rate adjustments are considered.

What’s next: Staff and the city’s financial team said they expect official credit ratings to be issued about a week after the meeting, to advertise the bonds for sale in early November and to hold a competitive sale on Nov. 10, with a closing anticipated the week of Nov. 24.

Ending: With both resolutions approved, City Manager Moore said the approvals position the city to “lock in what we think is an attractive interest rate” and continue the golf course renovation work.