Staff recommends approval of the resolution authorizing the issuance and calling for a public sale for the Water System Revenue Bonds. 

Improving and maintaining the Water System Revenue Bonds to meet the needs of our community. The public sale of the bonds is expected to take place in the summer of 2026 with a principal amount of $40,000,000. The first series was approved by Council at the 4/10/2023 meeting. The original bonds issued were in the amount of $70,000,000, with the expectation that a second series of bonds would be issued once those proceeds were exhausted. Public Works has reached a point in the project that the second series is now needed to complete construction.

Securing a source of treated water for the City of Billings has been a Public Works Department priority and continuing to meet the long-term water needs for our community. 

Public Works has been able to pay for the costs with cash collected from the current utility rates and initial bond sale, but will need to sell bonds to finance the remainder of the project. The bond sale will be completed via competitive bid, which is scheduled to be awarded in late July or early August 2026. The resolution gives staff the authority to execute the bond sale documents, so long as it is within the parameters set forth in this resolution. The resolution parameters establish that the aggregate principal amount will not be more than $40,000,000 with an average interest rate of 5.15%, and a term of not more than 31 years.

The resolution has been submitted for approval to set the limits for the principal amounts, the interest rates and maturity of the bonds.

The actual interest rate wil be determined at the time of pricing of the bonds, which will drive the total cost of borrowing.

City Council may:

• Approve; or,
• Not approve the resolution. Not approving the resolution will cause the project to not be completed.