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Council approves rural electric bond parameters to fund $18 million of projects
Summary
Council adopted parameters for rural electric-system revenue bonds to fund about $18 million in projects; finance staff said the rural system has roughly three-times coverage and the ordinance limits principal to a specified maximum.
Council adopted an ordinance setting parameters for issuance of City of Bryan rural electric-system revenue bonds to fund approximately $18,000,000 in construction projects. Steven Adams, the financial presenter, told council the rural system is smaller than the city system, is a retail-only system without generation, and maintains roughly three-times coverage at its low point.
Adams said the city will not sell more bonds than needed to fund the $18,000,000 of projects and described estimated issuance costs and a reserve fund and noted a maximum principal amount in the parameters. "This 1, we will not sell more bonds than needed to fund $18,000,000 of construction projects," Adams said. Council adopted the ordinance on a unanimous voice vote.
Staff said the rural parameters mirror the city parameters but with a lower maximum principal amount; the ordinance also requires attorney-general review after pricing before closing.
