Remarketing of the 2011A Water Revenue Bond Board of Public Utilities - PowerPoint PPT Presentation

Remarketing of the 2011A Water Revenue Bond Board of Public Utilities April 6, 2012

Background  2011 Bond issue of $59,000,000 – Refunded 2005 debt  30 Year debt maturity, with 13 month interest term  Short-term floating index rate, tied to SIFMA index + 0.07%  Presently at 0.25%  Principal and Interest paid per maturity schedule  Short term interest period attractive to Money Market Fund investors  Only available to very high grade credits such as RPU  Interest Rate Hedge Agreement remains in place  Established in 2005  Fixes interest rate at 3.2%

Proposed Remarketing  No new debt with this transaction  Resets the interest rate amount and period as required by bond documents  Resolution provides flexibility for one or two year period  Decision on period will be made at pricing date  All other provisions of the bonds remain in place  Present Balance on the Bond is $58,200,000 3

RECOMMENDATIONS That the Board of Public Utilities recommend that the City Council: Approve the City’s Financing Team; 1. Delegate to the City’s Financing Team adjustments to the proposed 2. structure for City Council approval; 3. Approve and adopt the SIFMA Remarketing Management Policy; 4. Adopt the appropriate resolution to approve the preparation of future Reoffering Statements consistent with the initial authorization approving the 2011A Water Revenue Bond Index Interest Rate Period(s); and 5. Authorize the City Manager, or his designee, to execute all documents related to this transaction. 4