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City staff brief council on $39.885 million TMUA utility revenue bond plan
Summary
City staff described a planned issuance of Tulsa Metropolitan Utility Authority (TMUA) utility revenue bonds in two series totaling up to $39,885,000 to fund water meter replacement and sewer system projects; sale is scheduled for March 25 with closing on April 9.
City staff presented details of a planned bond issuance by the Tulsa Metropolitan Utility Authority to finance water and sewer capital projects.
Ted Becker, a city presenter, told the council the TMUA plans to issue utility revenue bonds in two series with an aggregate principal amount not to exceed $39,885,000. "These TMUA series 2025 a and 2025 b utility revenue bonds, as mentioned, are in the aggregate amount of $39,885,000 split into two series," Becker said. He said series A — the water portion — is $18,595,000 and is dedicated entirely to the AMR (automatic meter reading) project to replace water meters. Series B — the wastewater portion — is $21,290,000 and will fund sewer capital and system-wide projects.
Becker said the city is projecting borrowing rates between roughly 3% and 4% and a true interest cost of about 3.76%, based on Bloomberg rates plus 25 basis points. He told council the TMUA board gave unanimous approval earlier the same day to set the sale and authorize issuance; staff expect to sell the bonds on March 25 and return to TMUA to approve the sale before closing on April 9.
No formal council vote on the resolution occurred during this meeting; Becker described the proposal and timeline and invited questions.
Funding plan and next steps: Becker framed the proposal as standard revenue-bond financing for utility capital improvements, with the water series dedicated to a meter-replacement project and the wastewater series to sewer capital work. He said the city sold stormwater bonds the prior week, which priced in a similar range, and that the projection is expected to hold. The presentation identified the presence of an "emergency clause" in the resolution text as read at the outset of the item.
The presentation did not include a detailed debt-service schedule, ordinance number or vote tally; staff said those sale documents and closing approvals would be completed through TMUA as the sale proceeds.
Councilors did not ask substantive follow-up beyond routine questions during this item. The matter was presented for information and to set up the planned sale and subsequent TMUA approval and closing.
