Series:2019, 2019A, 2019B, 2019C
> General Obligation Bonds not to exceed $33,100,000
> Utility Systems Revenue Bonds not to exceed $112,000,000
> Utility Systems Revenue Refunding Bonds $60,000,000
> Utility Systems Revenue Refunding Bonds $95,000,000
Defeasance/Redemption Series 2009 Taxable Utility Systems Revenue Bonds $11,000,000
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Reference > Meeting Details for 01 April 2019 Mesa City Council Regular Meeting
| Meeting Name: | City Council | Agenda status: | Tentative |
| Meeting date/time: | 4/1/2019 5:45 PM | Minutes status: | Draft |
| Meeting location: | Council Chambers - Upper Level | ||
| Published agenda: |  Agenda |
Go ahead and get curious!
Item 3 Liquor License Applications [7]
Item 5 CONTRACTS [18]
Item 6 Resolutions
> 6a: District 1 Hotel Development
> 6b: Continuum of Care Shelter Plus Care Grant $94,280 [Grant funds from HUD]
> 6c: Authorizing Issuance & Sale of Bonds [6c - 6g]
Total = $311,100,000
Item 7: Ordinances [2] District 6
Item 8: Ordinances [3]
Item 9: Subdivision Plats [4] Cadence @ Gateway Phase 3 - 386 Single Residence Lots
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Item 10: Ordinance District 6
NOTE: Item 10a
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Let's take a look at one of those Bond Authorizations: ITEM 6d
| File #: | 19-0241 |
| Type: | Resolution | Status: | Agenda Ready |
| In control: | City Council |
| On agenda: | 4/1/2019 |
| Title: | Authorizing the issuance and sale of Utility Systems Revenue Bonds, Series 2019A, not to exceed $112,000,000. (Citywide) |
PRESENTATION -19 Power Point slides
2019 Bonds Sales, Refundings, and Defeasance
March 28, 2019
Michael Kennington, Chief Financial Officer
Ryan Wimmer, Deputy Budget Director
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General Obligation Debt Per Capita from 2016
Comparing G.O. Bond Debt
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Estimated Timeline for 2019 Bond Transactions
12
April 1 Council considers authorization of issuances
April 16 City closes on utility bond defeasance
April 29 Bond offerings are priced
May 23 City closes on bond offerings
City Debt
15
Debt Type Principal ($M)
Utility Systems Revenue Bonds $1,227
General Obligation Bonds 366
HURF (Street & Highway) Bonds 77
Excise Tax Revenue Obligations 49
State Water Loans 2
Anticipated 2019 Bond Defeasance and Refundings
Utility Systems Revenue Bonds
1. Defeasance – 2009 Build America Bonds (BABs)
Defease: $10.0 million
• Funded by development fee revenue
• Removed from City financial statements
2. Refunding – 2009 Build America Bonds (BABs)
Estimated Savings: $4.7 million
3. Refunding – 2012 Utility Revenue bonds
Estimated Savings: $7.3 million
Anticipated 2019 New Bond Issues
6
General Obligation Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33M
Parks and Culture
Public Safety
Streets
Utility Systems Revenue Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . $112M
Electric
NaturalGas
Solid Waste
Wastewater
Water
This is 95 Pages: PRELIMINARY OFFICIAL STATEMENT DATED _____, 2019
NEW ISSUE — BOOK-ENTRY-ONLY RATINGS: See “Ratings” herein.
In the opinion of Gust Rosenfeld P.L.C. Phoenix, Arizona, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, and assuming continuing compliance with certain restrictions, conditions and requirements by the City, as mentioned under “TAX EXEMPTION” herein, interest income on the Bonds is excluded from gross income for federal income tax purposes. Interest income on the Bonds is not an item of tax preference to be included in computing the alternative minimum tax. In the opinion of Bond Counsel, interest income on the Bonds is exempt from Arizona income taxes. See “TAX EXEMPTION,” “BOND PREMIUM” and “ORIGINAL ISSUE DISCOUNT” herein. $111,835,000* CITY OF MESA, ARIZONA UTILITY SYSTEMS REVENUE BONDS, SERIES 2019A
$49,335,000* CITY OF MESA, ARIZONA UTILITY SYSTEMS REVENUE REFUNDING BONDS, SERIES 2019B
Dated: Date of Initial Delivery Due: July 1, as shown on inside front cover The City of Mesa, Arizona (the “City”), Utility Systems Revenue Bonds, Series 2019A (the “Series 2019A Bonds”) and Utility Systems Revenue Refunding Bonds, Series 2019B (the “Series 2019B Bonds” and, together with the Series 2019A Bonds, the “Bonds”), will be initially issued in book-entry-only form in the name of Cede & Co., as nominee of The Depository Trust Company, a registered securities depository (“DTC”).
Dated: Date of Initial Delivery Due: July 1, as shown on inside front cover The City of Mesa, Arizona (the “City”), Utility Systems Revenue Bonds, Series 2019A (the “Series 2019A Bonds”) and Utility Systems Revenue Refunding Bonds, Series 2019B (the “Series 2019B Bonds” and, together with the Series 2019A Bonds, the “Bonds”), will be initially issued in book-entry-only form in the name of Cede & Co., as nominee of The Depository Trust Company, a registered securities depository (“DTC”).
Beneficial interests in the Bonds will be offered for sale in the amount of $5,000 of principal due on a specific maturity date and integral multiples thereof.
The Bonds are being issued to provide funds to
(i) acquire and construct certain improvements to the utility systems of the City,
(ii) refund the Bonds Being Refunded (as defined herein)
(iii) pay the costs of issuance of the Bonds.
See “THE BONDS – Authorization and Purpose,” “PLAN OF REFUNDING” and “SOURCES AND USES OF FUNDS.”
