Riverside staff recommend refunding sewer revenue bonds to save on future sewer fees

City of Riverside finance staff recommended the city pursue a 2025 refunding of outstanding sewer revenue bonds, describing potential savings and steps needed to move the transaction forward.

Finance presenter Malina Coranza told the council the proposal is structured to refinance multiple prior issues, with remaining principal and projected market-dependent savings. Coranza said staff estimated roughly $18.8 million in potential savings under current assumptions and recommended the city hire a financing team, prepare offering documents and authorize the city manager and finance director to sign transactional documents if market conditions are favorable.

The recommendation would allow the finance team to set maturities, execute the sale and close the transaction with the approval threshold noted in staff materials. Coranza emphasized the savings estimate depends on market conditions and could change between presentation and sale.

Council members asked how savings would reach ratepayers. Staff said the refunding restructures debt service to reduce future fee obligations rather than generating direct refunds to bank accounts; the fiscal benefit would appear through lower sewer rate pressure and improved capital capacity. Staff also provided a summary of estimated issuance costs and projections for first-year savings.

Council action: the council voted to proceed with the financing plan on a motion that passed (motion outcome recorded in the meeting transcript).

What happens next: staff will finalize the financing team, prepare required legal documents and return with final sale documents once market conditions and timing are set. The transaction will require the administrative approvals described in staff materials prior to closing.