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Debt Prepayment City of Goodyear Public Improvement Corporation Presenter: Mayette Bailey Interim Deputy Director of Finance June 22, 2026 Public Improvement Corporation 1 City of Goodyear Public Improvement Corporation • Public Improvement Corporation (PIC) established to finance major capital projects • Lease-purchase agreements executed in 2007 and 2008 1. Baseball Project 2. 2008 Baseball Project • Supported by bond issuances backed by General Fund Excise Taxes • Bonds refinanced through Series 2016A & 2016B June 22,2026 Public Improvement Corporation 2 PIC Debt Overview City of Goodyear Public Improvement Corporation • Series 2016A: • Original Issuance $31,615,000 • Callable in FY2027 • Matures FY2031 • Annual Debt Service $2.6M - $3.0M • Interest Rate range 3.00% - 5.00% June 22,2026 Public Improvement Corporation 3 PIC Debt Overview • Series 2016B • Original Issuance $40,530,000 • Callable in FY2027 • Matures FY2031 • Annual Debt Service $2.2M - $3.0M • Interest Rate range 4.00% - 5.00% City of Goodyear Public Improvement Corporation • Presented to City Council on December 9, 2024 • Recommended using one-time funds to prepay Series 2016A-B Bonds • Frees approx. $9M in ongoing revenue • Revenue can support operations and future debt issuance • Goodyear Recreation Campus Phase II • Public Safety Personnel June 22,2026 Public Improvement Corporation 4 Debt Refunding Strategy City of Goodyear Public Improvement Corporation • Series 2016A: • Interest Savings $6.1M • Frees up total = $33.5M (FY27 - FY32) • Annual = $6.7M for ongoing June 22,2026 Public Improvement Corporation 5 Financial Impact • Series 2016B • Interest Savings: $2.8M • Frees up $19.5M (FY27 - FY32) • Annual = $3.9M for ongoing Total Interest Savings: $9.3M Total reallocated funds towards ongoing operations= $53.1M City of Goodyear Public Improvement Corporation • Board approval requested to proceed with prepayment. • City Council approval requested to direct Board approval to defease the bonds. June 22,2026 Public Improvement Corporation 6 Recommendation City of Goodyear Public Improvement Corporation June 22,2026 Public Improvement Corporation 7 Questions