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Board told final borrowing for Keith Valley will be brought to Feb. 24 meeting; advisors outline $20.5M target and timeline
Summary
Financial advisors presented a plan for the final bond issuance to complete Keith Valley financing, targeting a roughly $20.5 million project fund with a maximum parameters resolution of $23.5 million and a mid‑April closing window.
Mr. Stone, who led the finance committee segment, told the board on Feb. 10 that the board will consider a bond parameters resolution at its Feb. 24 legislative meeting to authorize the district’s final borrowing for the Keith Valley project.
Representatives from financial advisor PFM, Scott Shearer and Garrett Moore, described the borrowing as the fifth and final financing step for Keith Valley. PFM said the district is currently targeting a project fund of about $20,500,000 and that the parameters resolution will set a larger maximum (the presentation cited a $23.5 million parameter) to provide required state‑law buffers. Shearer and Moore explained the anticipated timeline: mid‑March pricing, approximately one month of interest‑rate risk, and a mid‑April closing when the district would receive proceeds.
PFM also summarized market context and tradeoffs: modest recent rate volatility but borrowing costs below long‑term historical averages, and an illustrative sensitivity that each additional $1 million borrowed adds roughly $100,000 in annual debt service (about $2 million over the life of the bonds). The advisers noted legal requirements for tax‑exempt borrowing, including expected spend‑down of proceeds within three years and consideration of arbitrage rebate rules.
Mr. Stone said the administration recommends the board consider the parameters resolution at its Feb. 24 legislative meeting. No vote was held on Feb. 10; the item was referred to the Feb. 24 meeting for action.
