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Sutter Butte Flood Control Agency reviews July financials and studies bond refunding to reduce debt service
Summary
At its Sept. 10, 2025 meeting the board reviewed July financial reports and heard initial analysis showing potential cash-flow savings from refunding part of the agency—s outstanding bonds; staff will return with options in coming months.
The Sutter Butte Flood Control Agency reviewed monthly financial reports through July and discussed bond refunding options that could reduce future debt service costs.
Agency staff presented working capital and revenue summaries covering close-out of fiscal 2024–25 and early 2025–26 activity. Staff reported working capital was about $23.4 million through July, with an estimated-to-date figure of about $20.5 million; capital revenues through June were reported near $8.9 million with about $3.6 million of that shown as pending. Assessment revenue for the new fiscal year had just begun posting; staff said about $66,000 had been received to date. Paid expenditures for 2024–25 were reported at roughly $7.8 million through July, with additional expenditures pending related to the Tudor flood risk reduction project and other work.
On debt management, staff said the agency engaged a municipal advisor (K & N Public Finance) to evaluate partial refunding of the agency—s outstanding bonds (last issued in 2015). The initial analysis presented showed potential cash-flow savings of about $2.3 million between 2026 and 2040 and a net present value savings of about $1.8 million; a sensitivity run adding 25 basis points to interest rates still showed roughly $1.0 million in NPV savings. Staff estimated those savings could reduce annual debt service by about $100,000 to $150,000 in some years. The analysis included transaction costs: an assumed $250,000 cost of issuance and an underwriter discount of 50 basis points; staff also noted a credit rating fee of about $15,000 would be required before a sale.
Staff said the options being evaluated would not extend the assessment district—s repayment term past the original 30-year limit established after the 2015 issuance and that the refunding would target shorter-term maturities with higher coupons to capture savings. The board was told it could see options and a recommendation in the coming months, with staff indicating a likely October return for possible action on specific refunding options.
