Sutter Butte Flood Control Agency directs staff to refund bonds; declines new borrowing now

The Sutter Butte Flood Control Agency Board of Directors on Oct. 8, 2025, directed staff to move forward with a refunding of outstanding assessment revenue bonds but declined to add new borrowing now to create cash for future projects.

Seth, the agency’s budget manager, told the board staff had identified a refunding opportunity that could refinance about $43 million to $46 million of outstanding principal and produce net present‑value savings in the range of roughly 1% to 5% depending on market conditions. "On a net present value basis we could save between 1 and 1 to 2 and a half million dollars," Seth said during the presentation. He added that annual debt‑service savings could be on the order of $85,000 to $200,000 depending on the final structure and interest rates.

The discussion centered on two options: (1) refund the existing bonds now to capture immediate savings, or (2) refund now and include additional new money in the sale to build reserves for the Sutter Bypass East Levee project. Seth said the agency’s bond covenant requires assessments at 110% of annual debt service and that assessment authorization and current…