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GENERAL OBLIGATION BONDS 2025 March 25, 2025 Background • November 3, 2020 – voters approved bond election for $21M of GO Bonds to construct an Aquatic Facility. • The City has purchased land and entered into a design contract for the facility. • Toal budget is now estimated at $32M. • Additional funding will come from a $1M private donation and $10M of fund balance from the general fund. • Stifel Nicolaus & Company will serve as underwriter for the bonds. Discussion • Resolution provides for the sale and issuance of the series 2025 bonds • Approves agreements and documents necessary to issue bonds • Delegates authority to the City Manager and CFO to determine terms, rates and maturities of the bonds. • Authorizes and ratifies all other actions taken to consummate the sale and issuance of the bonds. Discussion – Documents approved • Preliminary Official Statement – Offering document to potential investors. Includes general description of the bonds, sources and uses of funds, estimated debt service requirements among other financial data. • Continuing Disclosure Agreement – Outlines the City’s responsibilities to provide ongoing financial information, and notice of certain financial events for the life of the bonds. • Bond Purchase Agreement – Agreement with Stifel, acting as underwriter, to purchase the bonds from the City • Bond Registrar and Paying Agent Agreement – An agreement to help facilitate a registration of bond ownership and payment to bond holders. Discussion – Delegation • Delegates authority to the City Manager and CFO to determine: • Date and principal amount of the bonds (not to exceed $21M) • Maturity dates (not to exceed 25 years) • Interest rates, based on bids from investors (not to exceed 8%) • Call dates • Sales date, price and closing costs Discussion – Budget • Bonds have been programmed into the Budget for 2 years. • Repayment source is Secondary Property Taxes. • The Combined Property Tax Rate (primary and secondary) will not increase in FY 26 as a result of the issuance of the bonds. • Current year rate – $2.6796 • FY 2026 projected rate - $2.6760 Recommendation Staff recommends the Mayor and Council adopt Resolution 2597, providing for the sale and issuance of $21M of General Obligation bonds for the design and construction of the Aquatic Center. Questions?