Memorandum

To adopt proposed resolution number 26-91 authorizing issuance, awarding sale, prescribing the form and details and providing for the payment of $5,220,000 General Obligation Utility Revenue Bonds, Series 2026A.

Attached is a draft resolution authorizing the issuance, awarding the sale and prescribing the form and details and providing for the payment for $5,220,000 General Obligation Utility Revenue Bonds, series 2026A (structured into four separate components). A final resolution will be provided to council prior to approval once bids are received for the sale of the bonds on Monday October 19.

AAA Bond Rating Confirmed

On Wednesday September 30, City staff submitted the documents requested to Standard & Poor’s Ratings Services (S&P) (the City’s rating agency) to obtain a rating on the $5,220,000 General Obligation Utility  Revenue Bonds, Series 2026A. On October 8 S&P assigned its AAA rating and stable outlook to the Bonds, and affirmed its AAA rating, with a stable outlook, on the City’s existing general obligation debt. This is the highest bond rating awarded, which helps the City obtain lower interest rates on debt borrowing. The rating is a statement of confidence in the City’s current financial stability and long-term fiscal planning. It is important to note that the bond rating process is repeated for each new debt issue.

The rating process is based on S&P’s assessment of seven underlying factors.  The factors are as follows:

• Institutional framework
• Individual credit profile
• Economy
• Financial performance
• Reserves and liquidity
• Debt and liabilities
• Management

A copy of the rating letter is attached to this report.

Background on Proposed Debt Issuance

On September 21, 2026 the City Council authorized the sale of $5,220,000 General Obligation Utility Revenue Bonds, series 2026A.  Details of the bond issue are as follows:

General Obligation Bonds will finance utility improvements:

• Water Bonds, in the amount of $3,225,000, to finance the various water projects in accordance with the approved capital improvement program.
• Sewer Bonds, in the amount of $900,000, to finance the various sewer projects in accordance with the approved capital improvement program.
• Surface Water Bonds, in the amount of $1,095,000, to finance the various water projects in accordance with the approved capital improvement program.

The General Obligation bonds related to water, sewer and surface water will be repaid over fifteen years and settlement of the bonds will be November 19.

Competitive bids will be taken at Bakertilly’s office on Monday, October 19.  The bids will be opened, analyzed, and a bid tabulation and revised resolution will be presented to the City Council for consideration that evening, along with a recommendation regarding the lowest bidder.

Staff recommends the adoption of the proposed resolutions, drafted by the City’s bond attorney (Jennifer L. Hanson, Dorsey & Whitney LLP).