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Board hears WIFIA-timing and subordinated sales‑tax bond planning; $70–$75M draw expected in June
Summary
Finance staff told the board they expect a WIFIA draw of about $70–$75 million in June against a $569 million loan and outlined plans to release a preliminary official statement and later a parameters resolution for a subordinated sales‑tax bond sale amid volatile markets.
Finance staff updated the board that they did not make a WIFIA draw this month because developer invoices arrived late, and that a WIFIA draw of approximately $70–$75 million is expected in June. Staff reminded members the total WIFIA loan value is $569 million.
Staff also discussed plans for a subordinated sales‑tax bond: in June the finance committee and board will be asked to authorize release of a preliminary official statement; in July staff will seek approval of a parameters resolution that would set maximum principal and interest limits and authorize marketing. The finance update noted the market has been volatile and interest‑rate shifts of 20–30 basis points could materially affect the cost of borrowing on more than $200 million of temporary debt.
The board approved the finance report by voice vote. Staff said a formal consent item will be before the Fargo City Commission to refund approximately $35 million in prior capital improvement bonds into the diversion authority's debt portfolio as part of the subordinated sales‑tax bond transaction.
