Title
Authorization of Water Sewer Revenue Bond Anticipation Note
Action
Action:
A. Adopt the bond order authorizing the issuance of up to $100 million of revenue bond anticipation notes,
B. Adopt a bond resolution for the approval, execution, and delivery in connection with the issuance of up to $100 million of revenue bond anticipation notes, and
C. Authorize the City Manager and Chief Financial Officer to take necessary actions to complete the financing, including submitting the application to the Local Government Commission.
Body
Staff Resource(s):
Robert Campbell, Finance
Angela Lee, Charlotte Water
Explanation
* City Council adopts the Charlotte Water Community Investment Plan which includes capital projects to be funded with debt proceeds. The debt issuance is planned in two steps: a short-term construction period draw program which will then be converted to long-term, fixed rate revenue bonds once construction nears completion (up to 36 months).
* This financing approach reduces interest cost, promotes rate stability, and provides flexibility in the timing of the spending.
* The construction period financing will be in the form of a $100 million privately-placed drawdown program, allowing the City to reimburse expenses on a monthly basis during construction and eliminating interest expense on funds not yet expended on the project.
* These proceeds will be used for the following categories of projects:
? Maintenance of existing treatment facilities to ensure reliable treatment processes and regulatory compliance, and
? Rehabilitation and replacement of existing water and sewer infrastructure that has met its useful performance life.
* This action adopts the bond order and bond resolution for the program.
* The North Carolina Local Government Commission is expected to review and approve this financing on October 2, 2018.
Fiscal Note
Funding: Charlotte Water Debt Service Fund
Attachments
Attachment(s)
Bond Order
Bond Resolution
Water and Sewe...
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