Anaheim approves up to $275 million in utility bonds to refinance debt, fund electric upgrades

The Anaheim City Council on Aug. 12 approved a resolution authorizing the Anaheim Housing and Public Improvements Authority to issue revenue bonds (series 2025-A) and refunding bonds (series 2025-B) in an aggregate principal amount not to exceed $275,000,000 to refinance electric utility debt and support planned infrastructure projects.

Assistant General Manager of Finance and Energy Resources Brian Bielner told the council that the utility’s system is valued at about $1,500,000,000 and “serves more than 350,000 residents and 15,000 businesses.” He said the refinancing candidates total roughly $173 million and the transaction could save “approximately 7 and a half million dollars on future interest costs.” The financing would also include about $100 million in new bonds to support capital projects such as substation upgrades, replacement of aging equipment and streetlight installations requested by the community.

Bielner said the proposed bond sale is structured so the electric utility bears the debt; the bonds are “backed solely by electric utility fund revenue and bear no risk or impact to the city’s general fund.” He described the financing as a way to spread the cost of long-lived infrastructure across current and future ratepayers while preserving cash and liquidity for emergencies. “This will fund approximately 25% of APU’s planned capital improvements over the next five years,” he said.

Council members asked about the mix of cash versus debt for the capital program. Bielner and City Manager Jim Vanderpool said the utility will use bond proceeds for about 25% of the capital plan and rely on cash, grants and other funding for the remainder. Council member Kurtz praised the utility’s refinancing strategy, saying it shortens terms to capture interest savings.

The council voted unanimously to approve the resolutions at two related hearings — one for the authority and one by the city acting in its separate capacity — with a recorded result of 7 ayes, no nays.

The council directed staff to proceed with bond pricing later in August, assuming market conditions remain favorable, and noted the transaction is expected to close in early September. City staff said the bonds and refinancing were included in the recently adopted budget and that debt service had been accounted for in the utility’s forecast.

The measure passed after staff presentation and questions; no dissenting council statements were recorded.