City CFO outlines $306.5M refunding opportunity and $493M of planned bond issuances through 2033
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
City CFO Robert Cortinas told the Financial Oversight and Audit Committee the city can pursue a roughly $306.5 million refunding callable in May that could yield an estimated $18 million in net present value savings if structured to meet the council’s 3% threshold; he also outlined roughly $493 million of remaining public-safety, community-progress and SIB loan issuances planned between 2027 and 2033.
Robert Cortinas, the city’s chief financial officer, provided a detailed briefing on the city’s outstanding debt and near-term opportunities to lower borrowing costs.
Cortinas said the city’s total outstanding debt stood at about $1.3 billion as of Aug. 31, 2025, with roughly $306.5 million of bonds becoming callable in May 2026. "We're right now projecting to generate about $18,000,000 of savings by refunding these bonds," Cortinas said, while noting that actual results will depend on market conditions and exact structuring. He told the committee the city will aim for net present value savings at or above the debt management policy minimum of 3% and that council would see a bond ordinance and preliminary offering documents around April, with pricing likely in May or early June.
Cortinas explained the refunding is intended to reduce future debt-service pressure as the city issues remaining voter‑approved public safety and community progress bonds. He said roughly 40% of the public safety bond and 17% of the community progress bond have already been issued; the city expects to issue the remaining roughly $493 million between 2027 and 2033 and to use refunding savings strategically to help offset near‑term tax rate impacts. Cortinas also described favorable SIB loans (transportation loans used as MPO match) that the city can issue in tranches and noted the city’s bond rating improvements have helped keep borrowing costs low.
Committee members asked about how refunding compares to refinancing a home, SIB loan terms, how sensitive issuances are to Federal Reserve rate moves, and whether legislative changes to exemptions had been modeled. Cortinas confirmed modeling and stress testing are ongoing and that legislative exemption impacts have not yet been incorporated pending Central Appraisal District data. He advised the council to weigh trade-offs between new issuances and long-term fiscal discipline as the city moves into strategic planning and FY2027 budget development.
Cortinas recommended seeking council approval of bond ordinance parameters in April and proceeding with refunding if market conditions meet policy thresholds.