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Finance team outlines 20-year recommendation and schedule for bond sale
Summary
Staff presented three financing scenarios and recommended a 20-year public offering to lower lifetime cost; timeline includes rating presentation the week of March 23, a special meeting April 3, pricing the week of April 20 and closing the week of May 4.
District finance staff and external advisors reviewed three financing approaches — 30-year public, 20-year public, and 20-year direct placement — and recommended the 20-year public offering as the best balance of annual affordability and lifetime savings.
Phil, the authority's controller and treasurer, said the analysis focused on average annual debt service and total debt service and that all three modeled options remain within the district’s projected annual capacity of about $500,000. He told the board that while the 30-year offering reduces annual costs by roughly $71,000, it increases the lifetime cost by more than $2.5 million compared with the recommended 20-year option.
Ken Deacker of Del Rio Advisors summarized the rating process and recommended pursuing bond insurance or a surety because otherwise the district would need to fund a cash-funded reserve, which he estimated could be about $500,000 (roughly one year of debt service). Phil outlined the near-term schedule: rating presentation the week of March 23; special meeting April 3 to approve remaining documents; rating release and bond-insurance bid deadlines the week of April 6; printing the preliminary official statement on April 14; bond pricing the week of April 20; and closing the week of May 4.
