City staff to publish notice for $80 million certificates of obligation for water and wastewater projects

Don Brooks, the city’s chief financial officer, told the Municipal Utility Board that the city council earlier in the week approved a resolution to publish the notice of intent to issue up to $80,000,000 in certificates of obligation to fund water and wastewater infrastructure needs.

Brooks said the allocation in the notice lists $55,000,000 for water projects and $25,000,000 for wastewater projects and described this as the first phase of planned utility infrastructure investments. Brooks said staff has discussed issuance timing at multiple prior meetings and is monitoring market conditions to secure favorable terms.

Marty Shue of Hilltop Securities, the city’s financial advisor, explained COs as a cost‑effective form of financing that do not require a public vote but do require publishing a notice stating a maximum issuance size and an anticipated sale date. Shue said the team planned to price the bonds on June 24; the ordinance and final approval will be brought to council after pricing, and funds are expected to be received about 30 days later.

Board members discussed market timing and the tradeoff between delaying issuance (and risking higher construction costs later) versus waiting for improved rates; one board member noted examples where project costs had approximately doubled over several years. Mayor (S1) confirmed the presentation was informational to the utility board and that staff would return to council for final approval after pricing.

No final issuance or ordinance vote occurred at this utility board meeting; the council action to publish the notice was described as having already occurred earlier in the week.