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Board approves resolution to pursue refunding of 2015A revenue bonds to realize estimated savings
Summary
Tampa Bay Water authorized parameters for a negotiated refunding of a portion of Series 2015A bonds; advisers estimate roughly $6 million net present value savings and annual debt-service reduction around $530,000 if market conditions hold.
Tampa Bay Water’s board authorized a supplemental bond resolution on May 19 that establishes parameters to pursue a negotiated tax-exempt refunding of part of the authority’s Series 2015A utility system revenue bonds.
Bond counsel and financial advisers briefed the board on the structure and timing; PFM Financial Advisors estimated the refunding could yield approximately $6 million in net present value savings (about 3.5% of refunded principal) and reduce annual debt service by roughly $530,000 per year, depending on market conditions. The earliest permitted call date on the eligible 2015A maturities is Oct. 1, 2025, and tax rules allow closing on a tax-exempt refunding as early as July 3, 2025.
Tom Giblin of Neighbors Giblin & Nickerson summarized the resolution’s parameters: refund no more than $175,000,000 of bonds, maintain final maturity at or before 2036 (no extension of maturity), limit underwriting discount to 0.4%, and require at least 3% present-value savings for a transaction to proceed. The resolution delegates authority to the general manager to execute sale documents within those parameters.
PFM’s presenters said the authority intends to retain flexibility on timing and will move to market when conditions are most favorable; advisers noted recent market volatility and a federal credit‑rating action that could influence Treasury and municipal yields. Board members asked about federal budget and tax-policy risks and the effect on municipal markets; advisers described monitoring the market and preferring flexibility rather than rushing to close prematurely.
Board action: the board approved the refunding resolution (motion by Commissioner Mariano, seconded by Commissioner Wustl), enabling staff and advisors to price and close a refunding sale if the defined parameters and minimum savings are satisfied.
