Administration introduces preliminary $450 million water and sewer bond parameters; staff outlines timetable and legal steps

Finance staff and municipal bond counsel presented a preliminary resolution on Feb. 25 that would authorize the county to seek issuance of water and sewer revenue bonds in an aggregate principal amount not to exceed $450,000,000, with a maximum interest rate of 6 percent and maximum maturity extending to 2055 (a 30‑year structure). The presentation stressed that the resolution is a parameters or “presale” action that enables staff to prepare offering documents and begin the bond validation process; it does not yet finalize sale terms.

What staff explained

• Purpose and parameters: the proposed preliminary resolution establishes the maximum principal amount ($450M), a maximum interest cap (6%), and a maximum annual debt service cap ($32M). These parameters allow the county to begin preparing an official statement and related documents needed for a competitive sale.

• Process and timing: bond counsel described the municipal bond sale process, including preparing an official statement (prospectus), engaging bond counsel and disclosure counsel, selecting a financial adviser, conducting bond validation in superior court, and advertising for a competitive sale. Staff said a typical timeline from authorization to sale is 60–90 days and stressed the importance of resolving commissioner questions before pricing day, because bids accepted on the sale day are time‑sensitive.

• Market mechanics and constraints: bond counsel explained why the county typically uses a competitive sale (underwriters bid on the day of sale) and described legal limits on “advanced refunding” and other practices that federal tax rules now restrict. Counsel listed parties that must be engaged (bond counsel, disclosure counsel, underwriters, financial adviser) and noted the county’s historical reliance on long‑standing firms for those services.

Questions and requests

Members asked whether the county’s bond counsel and disclosure counsel are selected competitively. Counsel said underwriters are selected by competitive bid on sale day; bond counsel and disclosure counsel historically are engaged by the administration but the board asked staff to provide comparisons to ensure competitive pricing. Commissioner Marita Davis Johnson asked for materials in advance; counsel agreed to distribute offering documents and a calendar for the issuance. The county also noted that bond validation—required by state law—must take place before sale.

Next steps

Staff said they would prepare the official statement, calendar the steps needed for pricing and return to the board with the full plan and specific dates. The board did not vote on a final sale; the presentation introduced the parameters resolution so staff could proceed with required preparatory work.