| ITEM #: 10. DATE: 06/22/2026 AI #:3386 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION DIRECTING THE CITY OF GOODYEAR PUBLIC IMPROVEMENT CORPORATION TO DEFEASE OUTSTANDING BONDS |
| STAFF PRESENTER(S): | Mayette Bailey, Interim Deputy Director of Finance |
SUMMARY
Authorization for city funds to be used for the defeasance of the outstanding Public Improvement Corporation Municipal Facilities Revenue Refunding Bonds, Series 2016A and 2016B and direction to the Public Improvement Corporation Board to execute the defeasance.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Adopt Resolution No. 2026-2529 directing the City of Goodyear Public Improvement Corporation to defease the outstanding City of Goodyear Public Improvement Corporation Municipal Facilities Revenue Refunding Bonds, Series 2016A and Municipal Facilities Revenue Refunding Bonds, Series 2016B; authorizing and providing for the Interim Finance Director or designee to transfer City funds to defease and redeem such bonds; authorizing the taking of all other actions necessary to the consummation of the transactions contemplated by this Resolution; and ratifying the actions of all officers and agents of the City and others with respect to the transfer, prepayment, defeasance, and redemption. (Mayette Bailey, Interim Deputy Director of Finance)
FISCAL IMPACT
As of the end of fiscal year 2026, the remaining principal and interest on the Public Improvement Corporation Bonds, Series 2016A and 2016B, total approximately $53.1 million. Prepaying the outstanding principal balance of approximately $44.1 million is expected to generate an estimated $9 million in interest savings and free approximately $9 million in ongoing General Fund revenue currently committed to the debt service of the bonds.
BACKGROUND AND PREVIOUS ACTIONS
The City of Goodyear Public Improvement Corporation (PIC) was created by the City of Goodyear (City) to provide financing for major capital projects. In 2007 and 2008, the PIC and the city entered into lease-purchase agreements to finance and construct the city’s baseball stadium and associated training facilities, known as the Baseball Project and the 2008 Baseball Project. These projects were funded through multiple bond issuances secured by General Fund Excise Taxes, later refinanced through the issuance of the Series 2016A and Series 2016B Revenue Refunding Bonds.
On December 9, 2024, city staff presented a Debt Refunding Strategy to the City Council recommending the use of one-time funds to prepay the Series 2016A and 2016B bonds. This approach would free approximately $9 million in ongoing General Fund revenue currently committed to debt service. These funds could then be reallocated to support other operating needs. The fiscal year 2027 Budget, presented at the April 6, 2026 Work Session and adopted by the City Council on May 18, 2026 (Tentative) and June 8, 2026 (Final), includes the planned prepayment of the PIC Series 2016A and 2016B Bonds.
The PIC Board held a meeting today, June 22, 2026 to authorize the prepayment and defeasance of the PIC Series 2016A and 2016B Bonds.
On December 9, 2024, city staff presented a Debt Refunding Strategy to the City Council recommending the use of one-time funds to prepay the Series 2016A and 2016B bonds. This approach would free approximately $9 million in ongoing General Fund revenue currently committed to debt service. These funds could then be reallocated to support other operating needs. The fiscal year 2027 Budget, presented at the April 6, 2026 Work Session and adopted by the City Council on May 18, 2026 (Tentative) and June 8, 2026 (Final), includes the planned prepayment of the PIC Series 2016A and 2016B Bonds.
The PIC Board held a meeting today, June 22, 2026 to authorize the prepayment and defeasance of the PIC Series 2016A and 2016B Bonds.
STAFF ANALYSIS
Adoption of Resolution No. 2026-2529, included here as Attachment A, will allow the use of city funds to prepay the 2016A and 2016B PIC bonds. Hilltop Securities Inc. is serving as the municipal advisor and Gust Rosenfeld P.L.C is serving as the municipal bond counsel. The defeasance is in compliance with both the 2016A and 2016B bond covenants, related agreements, and state and federal law.