Title
Authorization of Storm Water Revenue Bond Anticipation Notes
Action
Action:
A. Adopt a bond order and resolution authorizing the issuance of up to $125,000,000 of revenue bond anticipation notes, and calling for the execution and delivery of various documents in connection with the issuance, and
B. Authorize city officials to take necessary actions to complete the financing, including making the application to the Local Government Commission.
Body
Staff Resource(s):
Teresa Smith, Finance
Matthew Hastedt, Finance
Angela Charles, Charlotte Water
Mike Davis, Storm Water Services
Explanation
§ City Council annually adopts the Storm Water Capital 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 has been used extensively by the city and 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 an $125,000,000 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.
§ Projects funded include major and minor flood control projects.
§ The North Carolina Local Government Commission is expected to review and approve this financing on September 22, 2022.
§ This $125,000,000 will be used on approved projects and can be supported with current revenues.
Fiscal Note
Funding: Storm Water Debt Service Fund
Attachments
Attachment(s)
Bond Order
Bond Resolution