Staff recommends that City Council approve the Bond Resolution for the 2026B Water System Revenue Bond.

The first series of bonds, Series 2023A, was issued in the amount of $70,000,000 with the understanding that a second series would be necessary once those funds were fully utilized. Public Works has now reached a stage in the project where additional funding is required to complete construction. The second series, Series 2026B, in the amount of $40,000,000, was sold on 6/1/2026.

On April 13, 2026, the City Council approved the resolution authorizing the sale of bonds for the West End Reservoir. The City received a Moody’s rating of Aa2. The bond proceeds will be used to complete the West End Reservoir Project. The bonds are scheduled to close on June 1, 2026. Due to the short timeline, Finance was unable to meet the Council memo deadline and will email the final and complete Bond Resolution to the Council, prior to the June 8th meeting date. A complete copy of the resolution will also be available at the June 8, 2026, meeting.

Once the Council approves this resolution, the closing can occur and the bond proceeds will be disbursed to the construction account.

The actual interest rate will be determined at the time of pricing of the bonds, which will drive the total cost of borrowing, but in no case will the pricing exceed the parameters set by City Council on April 13, 2026.

There are no viable alternatives.