01-14-2019 BPU RPT 16 - Laserfiche WebLink

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W A T E R E N E R G Y T I F F RIVERSIDE PUBLIC UTILITIES id& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 14, 2019 ITEM NO: 16 SUBJECT: ISSUANCE OF 2019 REFUNDING WATER REVENUE BONDS ISSUE: Approval of the issuance of up to $160 million of Water Revenue Bonds for purposes of refunding the previously issued 2008B Water Revenue Bonds to capture interest rate savings; terminate some or all of its Water Utility interest rate swaps and refund the associated portions of the previously issued 2011 A Variable Rate Refunding Water Revenue Bonds to reduce financial risk and finance identified Water Utility capital projects. Proceeds will also be used to pay bond issuance costs. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the City's Financing Team, as described herein; 2. Conduct a public hearing to consider the issuance of Refunding Water Revenue Bonds in an amount not -to -exceed $160 million; 3. Adopt a resolution for the issuance of Refunding Water Revenue Bonds; 4. Delegate to the City's Financing Team, at the time of issuance, the determination of specific maturities to be refunded, the amount of interest rate swaps to be terminated and the form of new bonds as outlined in Recommendation No. 3 above; 5. Authorize the City Manager, or his designee, to execute all documents related to this transaction; and 6. Upon closing of the 2019 Refunding Water Revenue Bonds, authorize the Chief Financial Officer to make the necessary budget adjustments and/or appropriations to properly record the refunding and financing expenses in accordance with governmental accounting requirements. BACKGROUND: 2008B Water Revenue Bonds In May 2008, the City of Riverside issued $58,235,000 of 2008B Water Revenue Bonds to fund the Water Utility's Capital Improvement Program. The 2008B Bonds are fixed-rate bonds maturing in 2038 and have remaining coupons ranging from 4.00% to 5.00% and an outstanding principal balance of $53,880,000.