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AI# 11180  Regular City Council Meeting 6.6. 12/06/2022:

Information

Agenda Item

Resolution - Finance: Consider adoption of a Resolution authorizing publication and posting of notices of intention to issue (i) water and wastewater system revenue bonds in a principal amount not to exceed $17,500,000 for the purpose of acquiring, purchasing, constructing, improving, renovating, enlarging and equipping property, buildings, structures, facilities and related infrastructure for the City’s Water and Wastewater System and (ii) combination tax and revenue certificates of obligation in a principal amount not to exceed $18,750,000 for the purpose of funding improvements to the City’s Solid Waste Disposal System.

Item Summary

This resolution authorizes Finance to publish a notice of intent in the Lubbock Avalanche Journal to issue Water and Wastewater System Revenue Bonds (Revenue Bonds) and Combination Tax and Revenue Certificates of Obligation (COs). The Revenue Bonds are being issued for the following purposes: 1. Paying the costs of acquiring, purchasing, constructing, improving, renovating, enlarging and equipping property, buildings, structures, facilities and related infrastructure for the System; 2. Funding capitalized interest on the Bonds; 3. Funding the reserve fund requirement for the Bonds; and 4. Paying the costs of issuing the Bonds (collectively, with items 1-3, the "Project"). Specifically, the Revenue Bonds are designated to fund the North Terminal Storage Reservoir Improvements, Southeast Lubbock Water System Expansion, West Lubbock Water System Expansion, and Downtown Sewer Line Replacement projects that approved in the FY 2023 Operating and Capital Budget. The Certificates of Obligation (CO) are being issued for the following purposes: 1. Improvements to the City's Solid Waste Disposal System (the "Project"); and 2. Payment of professional services of attorneys, financial advisors, engineers and other professionals in connection with the Project and the issuance of the Certificates. Specifically, these COs will fund all activities related to the Solid Waste Transfer Station that is an approved project in the FY 2023 Operating and Capital Budget.

Fiscal Impact

The total amount of the Project costs financed with Revenue Bonds will not exceed the $17,500,000 total principal amount. The annual debt service payments for the Revenue Bonds are budgeted through the annual operating budget process and are included in long-term financial planning and rate models. The annual payments are made from all or part of the net revenues of the City's Water and Wastewater System. The total amount of the Project costs financed will not exceed the $18,750,000 total principal amount of one or more series of COs. The annual debt service payments for the COs are budgeted through the annual operating budget process and are included in long-term financial planning and rate models. The annual payments are made from all or part of the net revenues of the City's Solid Waste fees.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments Resolution - Notice of Intent

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