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Council briefed on JUICE bond plan; staff expects about $79 million issue and April pricing
Summary
City finance advisers told council the JUICE Board approved bond parameters up to $95 million but market conditions make a closer-to-$79 million issuance likely; pricing was targeted for late April with closing expected in May and first debt service in February 2027.
Paul, a presenter for the JUICE financing update, told the council the JUICE Board has approved parameters authorizing up to $95,000,000 in revenue bonds for the second phase of the engine plant but that market conditions point toward an actual issue near $79,000,000.
“We’re actually probably gonna be closer to around $79,000,000 as far as a bond issue amount,” Paul said, and he told the council the pricing target was April 28 (with the possibility of slipping a day) and a closing planned for May when proceeds would be available.
Paul described the additional‑bonds test the city uses to sell revenue bonds and said the city’s draft 2025 audit shows coverage of about 1.39×, above the required 1.25× threshold. He said the first payment on the bonds is expected on Feb. 15, 2027, and that staff estimated an interest rate near 5.18% amid recent market volatility.
The update was presented as information only; Paul said staff will return with a parameters ordinance and final pricing results for council approval if pricing slips or requires a follow‑up action. He also said pro forma analyses show the utility’s longer‑term coverage could run in the 1.50–1.60× range, which is important to maintain the utility’s rating.
Council asked no formal action on the item during the meeting; staff indicated they would come back with final numbers once pricing was completed.
