Discussion and possible adoption of RES. 2025-49 authorizing all matters necessary to sell and issue General Obligation Bonds in the amount not to exceed $95,000,000 aggregate Principal Amount.

The City is considering issuing approximately $95 million in General Obligation (GO) Bonds to fund construction of projects approved in the City's Capital Improvement Program. The projects anticipated to be financed with the proposed bonds are listed on the attached schedule and include streets, drainage, reclaimed water line and public facilities. Issuance of general obligation bonds for the projects listed were authorized by voters in the 2005 and 2008 elections.

It is anticipated that the new general obligation bonds will be sold via public offering, have a tax exempt interest rate of not to exceed 6.0%, callable after 10 years, and with a final maturity of 25 years. The bonds will be repaid with secondary property taxes.

Council is asked to consider and adopt a resolution authorizing all matters necessary for the sale and issuance of the general obligation bonds in an aggregate principal amount of not to exceed $95 million.

Required Legal Documents to be Considered and Approved by Council:

Preliminary Official Statement

Council is asked to pay particular attention to the attached Preliminary Official Statement in connection with the proposed financing transaction.

The Preliminary Official Statement (POS) is an important document that communicates information to potential purchasers of the new bonds. The POS describes the City, the financing plan (sources and uses of funds), current outstanding debt, the security and sources of payment for the new bonds, the risk factors associated with the new bonds, the bond ratings, and other information associated with the new bonds. The POS also provides pension funding, potential and threatened litigation and other critical information to potential investors. Council is asked to pay particular attention to the information in the POS to ensure the POS accurately reflects the state of the City.

Resolution Authorizing Sale and Issuance of Bonds

The attached Resolution authorizes the city to sell and issue general obligation bonds of up to $95 million aggregate principal amount.  The resolution authorizes the Mayor, City Manager or Chief Financial Officer to act on behalf of the City, in determining the final terms of the bonds, the interest rate, allocation of bond proceeds and all other matters related to the sale and issuance of the bonds.

The last General Obligation Bond issuance was approved by Mayor and Council on October 11, 2022.  At elections in 2000 and 2005 qualified electors approved the issuance of bonds to provide funds for these categories of capital projects to be financed.

A: Adopt the Resolution authorizing and approving the sale of General Obligation Bonds Series 2025, in an amount not to exceed $95,000,000 aggregate principal amount; approving the form and authorizing the execution and delivery of related, necessary documents; awarding a contract for the purchase of the bonds; delegating the determination of certain matters related to the foregoing; ratifying the distribution of a preliminary official statement relating to the bonds and approving a final official statement; authorizing the levying of an Ad Valorem property tax with respect to the bonds; and granting authority authorizing the taking of all other actions necessary to the consummation of the transactions contemplated by this resolution.

B: Do not adopt the resolution authorizing and approving the sale of the General Obligation Bonds Series 2025 and directing staff to identify other financing sources for the capital projects.

Staff recommends adoption of the resolution authorizing the sale of bonds.

This bond issuance will raise approximately $95 million to finance capital projects over 25 years.