Council approves up to $33 million bonds for park and public‑works projects after AA ratings
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Summary
Council unanimously approved a resolution authorizing up to $33 million in capital improvement revenue bonds to finance public‑works facilities and Zephyr Park improvements. Financial advisor Jeff Larson said three rating agencies assigned AA ratings, eliminating the need for bond insurance and lowering expected interest costs.
The Zephyrhills City Council voted unanimously on Nov. 10 to approve a bond resolution authorizing the issuance of up to $33 million in capital improvement revenue bonds to fund a new public‑works maintenance facility, Zephyr Park improvements (including Alice Hall meeting/classroom space) and related capital projects.
Jeff Larson, the city's financial advisor, reported that the city received strong ratings from the three major agencies and that the AA ratings reduced the transaction cost by removing the need for third‑party bond insurance and by improving rates. Larson said the preliminary pricing showed an average interest environment around the mid‑4% range on current market assumptions and emphasized disciplined budget controls and reserves as factors in the strong ratings.
Larson described the delegation parameters in the approved resolution: bonds not to exceed $33 million, final maturity no more than 31 years, true interest cost not to exceed 6%, and underwriter compensation capped in the documents. He said staff would proceed with a preliminary official statement and, if market conditions allow, pricing around Nov. 20 and a closing in mid‑December.
Council President entertained a motion to adopt the bond resolution; the motion passed unanimously on voice vote. Staff and bond counsel will bring the final documents to council for closing signatures following pricing and legal review.