Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
MCSD approves up to $8.51 million in bonds to fund water and wastewater projects; TIC estimated at 4.78%
Summary
The board authorized issuance of Series A (water) and Series B (wastewater) certificates—par amounts estimated at $4,575,000 and $3,935,000 respectively—to finance Mad River crossing, tank replacements, sewer undercrossing and other infrastructure; underwriter estimated true interest cost at about 4.78% and the board capped authorization at a 5.50% TIC.
The McKinleyville Community Services District board authorized financing on June 3 for a package of water and wastewater capital projects, approving Resolution 2026‑21 to permit the issuance of installment purchase contracts, trust agreements and related certificates.
Finance director Samantha Howard framed the need for funding as a multi‑year capital program that includes the Mad River crossing emergency supply project, replacement and rehabilitation of McCluskey water tanks, water mainline rehabilitation and sewer projects such as the highway sewer undercrossing, lift‑station upgrades and sludge handling improvements.
Staff and the district’s financing team (Oppenheimer) presented a public offering bond option with a proposed 30‑year term. The staff materials included good‑faith estimates of par amounts: approximately $4,575,000 for the water series and $3,935,000 for the wastewater series, for a combined par near $8.51 million. The underwriting team estimated an all‑in true interest cost (TIC) near 4.78% for each series and asked the board to authorize issuance with a not‑to‑exceed TIC of 5.50%.
Rick Brandice, the Oenheimer representative, said the district’s double‑A‑minus rating from S&P reflected above‑average credit strength for an entity of McKinleyville’s size and praised district management and reserves. Board members asked about covenant metrics, repayment structure and market protections; underwriters and the district’s advisors noted the board can elect not to price if market conditions are unfavorable and that the certificates will be callable (prepayment protection) beginning in 2036.
After committee review and discussion in open session, a director moved and the board voted to approve Resolution 2026‑21 authorizing the financing with the stated parameters. Staff said pre‑pricing calls with the underwriting team are scheduled shortly before the planned sale date to confirm market conditions and that the board’s authorization includes the stated TIC cap.
