Staff recommends that the City Council approve the Bond Resolution for the Series 2026 Storm Sewer Revenue and Refunding Bonds.

City Council approved a resolution establishing parameters and authorizing the sale of storm sewer revenue and refunding bonds on 10/12/2026 (resolution 26-11389). Bonds were sold via competitive bid on 10/20/2026. This resolution will finalize the sale and bond purchase agreement that have been executed by staff.

On 10/12/2026 City Council authorized staff to sell bonds via competitive sale for the storm sewer projects and refinance existing storm sewer debt. On 10/20/2026, the City received 9 bids for the bonds and awarded the sale to lowest bidder, Robert W. Baird & Co. at a par amount of $9,815,000. The true interest cost for these bonds is 4.427%. The refunded bonds will result in a savings of approximately $144,387 via reduced interest costs from the series 2013 bonds.

The October 12, 2026 parameters resolution set limitations on the maximum aggregate principal of $11,000,000 and a true interest cost of less than 6.15%. Robert W. Baird & Co. submitted a bid to purchase the Series 2026 bonds at the aggregate purchase price of $10,180,933.44 (representing principal amount of $9,815,000, plus original issue premium of $473,305.45, less underwriters discount of $107,372.01). The true interest cost of the bonds is 4.427591%. This net present value of debt service savings to be achieved by the refunding of the Refunded Bonds is 6.545% of the principal amount fo the Refunded Bonds, or approximately $144,387 in interest savings.

Bond payments will be made from Stormwater charges.

The City received a credit rating from Moody's of Aa3 for the Storm Sewer Enterprise, resulting in great bids with an overall lower interest cost to the City.

There are no viable alternatives as theCity has signed the bond purchase agreement with Robert W. Baird & Co. for the sale of the bonds.