Memorandum

TO:

City Council

FROM:

Kevin Knopik , Finance Director

DATE:

September 21, 2026

SUBJECT:

Resolution 26-80 authorizing the issuance and sale of general obligation utility revenue bonds, series 2026A.

ITEM NUMBER:

8.g

SECTION:

CONSENT AGENDA

REQUESTED MOTION

To adopt resolution 26-80 authorizing the issuance and sale of general obligation utility revenue bonds, series 2026A.

INTRODUCTION

The city will be issuing general obligation utility revenue bonds for water, sewer and surface water improvements.

DISCUSSION

BACKGROUND

Attached is resolution 26-80 related to the issuance of the $5,220,000 General Obligation Bonds, Series 2026A. Resolution 26-80 approves general obligation utility revenue bonds for water, sewer and surface water improvements. Resolution 26-80 authorizes the issuance and sale of the general obligation bonds.

The table on page 6 of the attached pre-sale report summarizes the sources and uses of the bond issue using the most recent bonding and construction estimates. The size of this debt issue reflects actual costs incurred for water and sewer utility projects in 2025. Fluctuation in interest rates prior to the City awarding the sale of the bonds could slightly affect the par amount of the bond issue.

SCHEDULE

Below is a summary of the steps leading up to the sale and receipt of the proceeds of the bonds.

September 30: Rating conference with Standard & Poor’s
October 8: Receipt of bond rating and rating report
October 19: Competitive proposals are received
October 19: City Council considers sale and award of the bonds
November 19: Settlement of the bonds receipt of proceeds

BOND RATING

The City’s current bond rating of AAA has been in place for the past 15 years. We expect the rating on this debt issuance as well.

DEBT STRUCTURE

The water portion of the debt issue will be repaid over 15 years at an expected average interest rate near 3.83 percent. Annual debt service payments are approximately $285,000 per year, and are supported by water revenues.

The sewer portion of the debt issue will be repaid over 15 years at an expected average interest rate near 3.83 percent. Annual debt service payments are approximately $80,000 per year, and are supported by sewer revenues.

The surface water portion of the debt issue will be repaid over 15 years at an expected average interest rate near 3.69 percent. Annual debt service payments are approximately $97,000 per year, and are supported by surface water revenues.

RECOMMENDATION

To adopt resolution 26-80 authorizing the issuance and sale of general obligation utility revenue bonds, series 2026A.

ATTACHMENTS