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To help protect public money and ensure fiscal stability, the City plans to issue up to $226,225,000 in wastewater system refunding revenue bonds, which includes bonds to refinance $106,750,000 of the City's outstanding Series 2003 wastewater auction rate certificates.


The sale of the Series 2008 bonds would refund 2003 junior series bonds previously issued to finance capital improvements to the City’s wastewater system. In doing so, the City will convert variable rate bonds to fixed rate bonds, an action deemed prudent under current market conditions.


Municipalities, states and businesses borrow money by selling bonds, which are repaid with interest, using future revenues. In this case, those revenues are the sewer fees that the City collects.


The City Council’s budget committee today took initial action in this process by tentatively approving Resolution No. 08-71, authorizing the City Director of Budget and Fiscal Services to sell the new bonds.  The resolution now awaits adoption by the full Council. Other conditions (some of which are outside of the control of the City) must be satisfied before the refunding can occur.


UBS Investment Bank is the senior managing underwriter for this sale. Orrick, Herrington & Sutcliffe, LLP will serve as bond counsel, and McCorriston Miller Mukai Mackinnnon, LLP will act as disclosure and underwriters’ counsel.


Contact:  Edlyn Taniguchi, Chief of Treasury, 768-3990

Monday, April 21, 2008

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