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Goleta Facilities Financing Authority, city council approve preliminary bond documents for $37 million in capital financing
Summary
The Goleta Facilities Financing Authority and the City Council approved preliminary official statements and continuing disclosure certificates for two series of bonds—Measure A transportation sales tax revenue bonds and lease revenue bonds—expected to raise about $37 million for capital projects.
The Goleta Facilities Financing Authority and the Goleta City Council approved resolutions authorizing preliminary official statements and continuing disclosure certificates for two bond series that together are expected to generate approximately $37 million to accelerate capital projects.
Staff and the financing team briefed the board and council on two financings: Measure A transportation sales tax revenue bonds and lease revenue bonds backed by the general fund. Staff said the bonds will allow the city to accelerate construction of several capital projects and to address inflation-driven cost increases. The financing team told the board the bonds are expected to be sold in late February, with proceeds available by March 2025, subject to credit ratings and market conditions.
Staff said the preliminary official statements are required investor disclosure documents under federal securities law and that the city will execute continuing disclosure certificates committing to provide ongoing financial updates to bondholders. The proposals listed a range of capital projects that could be advanced, and staff noted the bonds will affect upcoming fiscal-year budgets for debt service; fiscal impacts were summarized in the staff report.
The financing authority board voted to approve preliminary official statements for the Measure A revenue bonds and the lease revenue bonds; the city council adopted parallel resolutions approving the documents and authorizing execution of final documents. Both votes were unanimous. Board and council members asked questions about grant dependency and construction cost risks; staff noted a recently awarded federal grant of $11 million (reimbursable) that has some uncertainty until a final agreement is signed and recommended proceeding with the full borrowing amount to mitigate the risk of grant reductions or construction cost escalation.
The board and council directed staff to proceed with the next steps in the financing process, including securing credit ratings and considering bond insurance. Staff said the project list and final bond terms will return to the council for final approval before sale.
