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Council authorizes publication of notice for certificates of obligation and hears utility refunding plan
Summary
City financial advisers presented a multi‑transaction financing plan that includes notice publication for up to $43.2 million in certificates of obligation and proposed utility revenue bond refinancing; council approved publication of the notice and set a timetable for bond ordinances and refundings.
City financial advisers outlined the city’s proposed financing plan for fiscal 2025, including several transactions to fund previously approved capital projects and a proposed utility‑system refinancing aimed at interest savings.
Victor Quiroga of Specialized Public Finance told the council the staff plan contemplates five transactions collectively totaling about $379.8 million. That total includes tax‑supported financing (general obligation bonds and certificates of obligation) and a $175 million utility revenue bond issuance plus a roughly $120 million refunding component expected to generate interest savings for utility customers.
Sergio Saino, director of finance and procurement, explained the immediate request: publication of the city’s notice of intention to issue not more than $43.2 million of certificates of obligation, as previously included in the adopted capital budget. The certificates would reimburse the city for a range of previously authorized capital items, including streets, parks, stormwater, public safety and solid waste items. Saino said the city uses reimbursement resolutions to pay project invoices from cash ahead of the debt closing and then uses the debt issuance to replace that cash.
Quiroga noted the utility refunding would not extend the original maturities but could reduce interest costs; preliminary estimates presented to council suggested roughly $5.7 million in interest savings from the refunding portion alone. He also summarized the city’s strong credit ratings: double‑A for general obligation bonds and an upper‑double‑A for the utility system.
Council members asked for clarification about funding choices and how some stormwater and street projects fit together with prior budget decisions. Staff said some projects combine multiple revenue sources (including ARPA, cash and certificates) and that the city will review issuance timing against certified property values in July before issuing tax‑supported debt. The council voted to authorize the publication of the certificates‑of‑obligation notice and set a schedule to bring bond ordinances and the refunding to council in June and July.
