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Board approves $420M‑plus 2024 bond package to shore up CIP while pushing some debt into later years
Summary
Financial advisors described a three‑series financing (2024 A/B/C) combining new money and refundings to fund up to $420 million of capital projects and restructure near‑term maturities; the board approved the resolution after debate about interest‑only early years and long‑term costs.
Tampa Bay Water's financing team proposed a three‑series 2024 bond structure to minimize near‑term impacts on the uniform rate while providing capacity for the authority's capital program. Jay Glover of PFM Financial Advisors outlined the plan: the 2024 A bonds would fund new capital (up to $420 million), the 2024 B bonds would restructure callable 2015/2016 series, and the 2024 C bonds would refund the 2001 A bonds on a taxable basis.
Commissioners pressed the team on the structure's long‑term cost and the effect of interest‑only or wrap debt‑service features. "On a net present value basis ... we're showing about, you know, dollars 2,000,000 of net present value debt service cost associated with the restructuring," Jay Glover said in response to a board question. Commissioner Scott warned that a multi‑decade push of principal could increase total interest paid and that he was uncomfortable with issuing debt that defers principal for many years. After discussion and confirmation of parameters, the board approved the bond resolution and staff indicated a mid‑September pricing target with an early‑October close.
