Interim CFO and assistant treasurer James Simpson reported the corporation’s recent refunding effort went well in the market and outlined estimated savings to trustees.

Simpson said HHC went to market on Oct. 15 seeking $428,000,000 in bonds and received about $1.9 billion in total orders from 45 investors, which gave staff strong pricing options. He reported the effective cost of borrowing on the new bonds at about 3.62 percent and that the transaction generated $33,100,000 in cash‑flow savings over a multi‑year period. Simpson told trustees the refinancing lowers future debt‑service payments by roughly $2,400,000 annually and eliminates the risk associated with Build America Bond subsidy payments. Redemption notices were sent Oct. 17 and the trustee‑directed redemption and closing were scheduled for Nov. 18.

On the operating budget, Simpson reviewed the general fund revenue and expenditure position as of Sept. 30. He said the reported fund‑balance projections improved modestly compared with the prior month as the team rolled forward an additional month of actual results; the projected decrease in the general fund balance was stated as $20,800,000 through Dec. 31 for the fiscal year, compared with earlier estimates of a larger decline. Simpson said the change reflects actual revenues and expenditures through September and that the finance team will continue to monitor open purchase orders for potential reductions.

Simpson also said the annual investment‑policy review (Resolution 6‑20‑25) will be on the November board agenda; he told trustees the 2025 review proposes no changes to the investment policy adopted in 2023 and that internal and external legal reviews found it compliant with state law.

Why it matters: The refinancing reduces HHC’s exposure to federal subsidy volatility, produces projected interest‑cost savings and modestly improves near‑term fiscal projections. The board will consider the annual investment‑policy review at its November meeting.