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Finance committee reviews plan for revenue bonds to fund Madden Creek, recommends proceeding to board
Summary
Staff briefed the finance committee on pursuing revenue bond financing previously authorized up to $37,500,000 and recommended issuing bonds to fund Madden Creek phase 4 (not to exceed $7,000,000). Staff walked members through term and debt-service comparisons and a tentative schedule for board action in March and closing in May.
Ryan Foulfod, director of finance administration, told the finance committee that the district is preparing to move forward with bond financing for projects authorized by the board in December and recommended a 20-year structure that staff says offers lower total debt-service costs.
"Back in at the December board meeting, staff was authorized by the board to pursue, interim financing and or bond financing in an amount not to exceed the $37,500,000," Foulfod said. He said staff is recommending issuance specifically for the Madden Creek phase 4 portion not to exceed $7,000,000 and that the team compared a 20-year public offering, a 30-year offering and a 20-year direct placement to assess annual and total debt-service impacts.
Foulfod reviewed a proposed schedule: resolutions to authorize issuance will go to the full district and authority boards on March 20, rating presentations would occur the week of March 23, pricing and sale are planned for mid-to-late April, and closing (receipt of funds) in the week of May 4. He emphasized documents such as the installment purchase agreement and indenture of trust will accompany the resolution next week and that remaining documents (continuing disclosure certificate, purchase contract, preliminary official statement) will follow at a subsequent meeting or special session.
Underwriter Nikki Tallman of Oppenheimer told the committee the municipal market remains active despite recent volatility. "So investors are still, investing, and the market is functioning," Tallman said, adding that the team expects to be able to place the district's bonds unless unforeseen geopolitical events change conditions.
These recommendations were presented as previews for the full board; the finance committee did not take a final vote. Foulfod and staff said the documents and final resolutions will be brought to the board for formal action on the stated dates.
