Council authorizes up to $88M in electric revenue bonds to fund power‑plant repower and system upgrades
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Summary
Council authorized issuance and sale of electric system revenue bonds (staff expects to issue $80M) to fund capital improvements including roughly $46M to repower Roseville Power Plant Unit 2 with modern 67 MW units; bonds structured as 20‑year fixed rate financing with estimated interest cost ~3.9%.
The City Council authorized the issuance and sale of electric system revenue bonds during the Dec. 17 meeting to finance upgrades to the electric utility, including repowering work at the Roseville Power Plant.
Assistant City Manager and CFO Dennis Kaufman and Assistant Electric Utility Director Joanna Cucci asked council to authorize up to $88 million (staff expects an $80 million issuance) to fund capital improvements. The largest component—about $46 million—will fund installation costs to repower Roseville Power Plant Unit 2 with modern generating units (replacing ~40‑year‑old equipment). Under the arrangement, the City will cover installation costs, operate the units after 2028, and benefit from faster ramping capability and improved emissions controls.
Staff described the bond structure: a 20‑year fixed‑rate issue with estimated interest around 3.9% and an early period of relatively low debt service (about $3.7 million annually in the first decade) that ramps later as prior debt is retired. Funding sources for the city’s capital improvement plan were summarized (rate funding, developer contributions, state contributions and the bond proceeds). Kaufman and Cucci said the proposed documents authorize the Roseville Finance Authority to issue the bonds and the council, acting as the Authority’s board, approved the related resolutions and documents.
There were no public comments on the financing item. Council approved the resolutions authorizing issuance and the related documents by roll call.
