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Council authorizes preliminary official statements for lease revenue bond issuance and ballpark refunding
Summary
Council authorized staff to distribute preliminary official statements for a 2025 lease revenue bond issuance (including new money and refundings) and a separate competitive ballpark refunding; staff said potential refundings would proceed only if they meet savings thresholds.
On Tuesday the City Council authorized the Public Facilities Financing Authority (PFFA) to distribute and execute preliminary official statements for a 2025 lease revenue bond issuance and related ballpark refundings aimed at capturing lower interest rates and net present value savings.
Finance staff said market movement since June created the opportunity to refund multiple series and to deliver about $670 million in total proceeds for new money and refunding components, with preliminary true interest cost estimates and anticipated savings dependent on final pricing. Krista Davidson, the financing coordinator, said estimated aggregate net present value savings could reach tens of millions of dollars if thresholds in the city's debt policy are met.
Council members asked for and received confirmations that: (1) the POS contains required disclosure information and will be updated with material changes; (2) refundings will occur only if they meet stated savings thresholds; and (3) the 2025 transactions are designed to provide debt service savings to the general fund while supporting capital needs. The council approved the POS distribution and related procedural authorizations; final pricing and closing will follow market sales and investor demand.
Next steps: Staff expects to release the POS to the market imminently, price the lease revenue bonds the week of Sept. 22, and close transactions in early October if market conditions are met.
