Title
2026 Water Sewer Revenue Bonds and Construction Period Financing
Action
Action:
A. Adopt an initial findings resolution that makes certain Statements of Fact concerning the Water Sewer Revenue Bonds and Revenue Bond Anticipation Notes,
B. Provide for the issuance of Water Sewer Revenue Bonds in an amount not to exceed $570,000,000,
C. Provide for the issuance of Water Sewer Construction Period Financing in an amount not to exceed $530,000,000,
D. Provide for the issuance of additional Water Sewer Revenue Bonds for optional redemption to refund all or portion of the city's outstanding Water and Sewer System Refunding Revenue Bonds for approximately $633,000,000 Series 2018, Series 2019, and series 2020 through tender and purchase of such bonds, and
E. Authorize city officials to take necessary actions to complete the financing, including making the application to the Local Government Commission.
Body
Staff Resource(s):
Matt Hastedt, Finance
Angela Charles, Charlotte Water
Melissa Westfall, Charlotte Water
Explanation
* This action provides for the issuance of up to $570 million comprised of the following:
* Refunding of the 2024 construction period financing, which utilized a Bond Anticipation Note (BAN), of approximately $505 million. In 2024, the city obtained a $500 million Revenue BAN to fund projects on a short-term, interim basis and planned to convert it to long-term, fixed rate revenue bonds at the end of the 24-month construction period.
* Refunding of the callable Water and Sewer Refunding Revenue Bonds series 2015 and 2018 up to $65 million for economic savings.
* This action also authorizes a new construction period financing program for up to $530 million to provide for the short-term financings for projects in active construction or design.
* Construction period financing such as Bond Anticipation Note (BANs) and Commercial Paper (CP), are commonly used debt financing tools used by municipal governments to help provide short term in...
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