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Gainesville council approves parity resolution clearing way for $60 million water‑sewer bond issue
Summary
The Gainesville mayor and council unanimously approved a parity bond resolution on Sept. 17 that finalizes terms for a sale that will refinance portions of outstanding debt and add about $60 million for water and sewer projects; underwriting materials showed a 3.0844% yield and an anticipated closing Oct. 22.
Gainesville’s mayor and council unanimously approved a parity bond resolution on Sept. 17 that formalizes the sale of Series 2024 water and sewer revenue bonds to refinance existing debt and provide roughly $60 million for construction projects.
Underwriting materials presented to the council showed a bond yield of 3.0844% and an all‑in cost just under 3.64%. Bill Camp of Raymond James, the underwriter, told the council: “You are in the mode to borrow $60,000,000 for water sewer improvements.” He said the transaction combines refunding of callable 2014 bonds with new funds for water‑sewer construction and that the city sold $70,100,000 of principal and received about $78,000,000 in purchase price (figures read aloud in the presentation).
The presentation described remaining steps before closing, including validation in the local superior court and an anticipated closing on Oct. 22, 2024. Camp and the legal team noted the financing is structured with a 10‑year callable feature (first call date Nov. 15, 2034) and that the refinancing produces projected present‑value savings of more than $1 million on the refunded portion.
Chief Financial Officer Jeremy Perry introduced the team and the legal framework. Attorney Terry Fenister of Murray Barnes Fenister summarized the parity bond resolution as a supplement to the city’s existing master bond resolution and said it would not impose new covenants; she asked the council to approve the sale terms and the bond purchase agreement with Raymond James.
A council member moved to approve the resolution, a second was offered, and the measure passed unanimously. In the meeting there was brief confusion about the resolution dash number (read as “business resolution 2024‑10” with an on‑the‑floor correction); council proceeded to vote after the clarification.
The council was told the bonds carry strong ratings—Moody’s and S&P ratings were read in the presentation as Aa2 and AA respectively—and the team highlighted that a basis‑point improvement in pricing has significant present‑value savings. Officials emphasized that sale terms fixed in the meeting will not change ahead of closing.
The next formal step is validation in superior court and the Oct. 22 closing; councilmembers and staff thanked the presenters and underwriters before moving to other business.
