AGENDA TITLE:
title
Adopt a Resolution Authorizing Appropriation for Wastewater Debt Service ($2,059,123) (PW)
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MEETING DATE:
November 6, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing Appropriation for Wastewater Debt Service in the amount of $2,059,123.
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BACKGROUND INFORMATION:
The Fiscal Year 2024-25 adopted budget includes appropriations for annual wastewater debt service payments. Due to a clerical error, the budget appropriation for the principal payment on the 2004 certificates of participation was not included.
The Series 2004A Wastewater System Revenue Certificates of Participation (2004 COPs) were issued in 2004 to pay for wastewater treatment plant upgrades at the White Slough Water Pollution Control Facility. The Series 2012A Refunding Wastewater Revenue Bonds were issued in 2012 to refund most of the 2004 COPs however bonds maturing in Fiscal Year 2024-25 were not refunded due to an advantageous interest rate. The structure of this remaining maturity for the 2004 COPs has been a constant interest payment each year until this final year when the bonds are set to mature and principal is due. As a result, the principal amount was not included in the FY 2024-25 budget.
Table 1 shows the debt service for Fiscal Year 2024-25 for all outstanding wastewater debt.
Table 1. Wastewater Outstanding Debt
|
Debt Series |
Principal Due |
Interest Due |
Total |
|
|
|
|
|
|
2017 Installment Purchase Refunding |
226,831.00 |
191,084.26 |
417,915.26 |
|
2016A Refunding Wastewater Revenue Bonds |
435,000.00 |
808,925.00 |
1,243,925.00 |
|
2004A Wastewater System Revenue Certificates of Participation |
2,070,000.00 |
49,162.50 |
2,119,162.50 |
|
|
|
|
|
|
Fiscal Year 2024-25 Total Debt Service Due |
2,731,831.00 |
1,049,171.76 |
3,781,002.76 |
Table 2 shows the current budget and requested action.
Table 2. Fiscal Year 2024-25 Budget and Recommended Action
|
|
Principal (55053001-75025) |
Interest (55053001-75024) |
Total |
|
|
|
|
|
|
Current Budget |
661,830.00 |
1,060,050.00 |
1,721,880.00 |
|
Recommended Action |
2,070,000.00 |
(10,877.00) |
2,059,123.00 |
|
|
|
|
|
|
Revised Total |
2,731,830.00 |
1,049,173.00 |
3,781,003.00 |
This appropriation, if approved, will cover the final payment on the 2004 COPs. The full required debt service amount and the reduced debt service in subsequent years associated with the payoff of the 2004 COPs is accounted for in the wastewater enterprise financial model.
Staff recommends authorizing appropriation for wastewater debt service payment, in the amount of $2,059,123.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
This appropriation does not affect the General Fund. The full amount of the 2004 COPs debt service is included in the wastewater enterprise financial model.
FUNDING AVAILABLE:
Appropriation Requested:
Wastewater Bond Principal (53053001.75025) - $2,070,000
Wastewater Bond Interest (53053001.75024) - $ (10,877)
_______________________________________
Charles E. Swimley
Public Works Director
_______________________________________
Scott R. Carney
City Manager