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Council approves $37.2 million combined utility revenue bonds; winning bid yields 4.64% TIC
Summary
The Topeka City Council authorized the sale and delivery of $37,195,000 in combined utility revenue bonds Aug. 19 and approved related documents after staff and the city—s financial advisor summarized the competitive sale.
The Topeka City Council on Aug. 19 authorized the issuance and sale of $37,195,000 in combined utility revenue bonds to fund improvements to the city—s combined utility system. The council approved both the ordinance authorizing the bonds and a companion resolution that directed the sale and delivery of the bonds.
City officials said the bonds were competitively bid Aug. 19 and produced an attractive result. Josh MacInarney, division director of budget and finance, introduced the item and turned the presentation over to the financing team.
Caitlin Dwyer of Columbia Capital told the council seven bidders participated in the sale and the winning bid came from Robert W. Baird. Dwyer said the true interest cost over the 30-year term is 4.64 percent, about six basis points better than the second-place bid. "We had an excellent turnout among bidders this morning," she said.
MacInarney said the proceeds will fund capital projects previously reviewed by the governing body and listed in the notice of intent and associated project resolution attached to the staff report. He emphasized the city had circulated the list of bonded projects in advance as a transparency measure.
Councilmember Dobler moved approval of the ordinance and councilmembers voted to pass the measure on roll call. The clerk recorded nine affirmative votes; the motion carried.
No new policy direction or amendments to the bond authorization were made during the meeting.
The sale and delivery resolution was approved the same evening to allow closing and delivery; city staff said related financing documents will be executed in the coming weeks as required to complete the transaction.
