Lakewood council adopts bond-refunding ordinance expected to save about $153,000

The Lakewood City Council on Feb. 2 adopted Ordinance 843 authorizing limited-tax general obligation refunding bonds to refinance outstanding December 2024 bonds, with staff saying the target is at least 2% net-present-value savings.

Deputy City Manager Ms. Kraus explained the ordinance would allow the city to refinance about $2.7 million in outstanding bonds and that the refunding would only proceed if it produced at least a 2% net-present-value savings. "There's about, dollars 2,700,000.0 that is outstanding on the bonds, and the request here is for City Council to approve this bond refund ordinance, so that we may refinance it and achieve at minimum of 2% savings, net present value savings," Ms. Kraus said.

In questions from council, staff confirmed issuance would account for bond counsel and underwriting fees and that a 2% NPV floor (about $153,000 in savings) was set to ensure net benefit after transaction costs. Ms. Kraus said issuance would occur only if the threshold were met and that the authorization window would expire at the end of the year (issuance expected before Dec. 31).

Council member Pearson moved adoption of Ordinance 843; the council approved the ordinance on a voice vote.

Votes at a glance: the consent agenda (excluding one pulled item) passed earlier in the meeting on voice vote; Motion 2026-11 (appointment of Katie Crook to the Planning Commission through Dec. 15, 2026) was later moved by Council member Branstetter, seconded and confirmed by voice vote. The council recorded no roll-call tally for Ordinance 843 in the minutes beyond the voice vote that "the ayes have it."

Next steps: Staff will proceed with refunding only if the finance director/authorized designee can secure the minimum 2% NPV savings after fees and will finalize sale terms under the ordinance parameters; proceeds will be used to repay specified outstanding limited tax GO bonds and pay issuance costs.