City Council Agenda
Memo to:
Manteca City Council
From:
Matthew Boring, Finance Director
Prepared by:
Melissa Munoz, Interim Assistant Finance Director
Date:
March 17, 2026
Subject:
2026 Water Revenue Refunding Bonds
Recommendation:
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Adopt a resolution of the City Council of the City of Manteca approving, authorizing and directing issuance of bonds to refinance outstanding obligations of the City's Water System for savings.
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Background:
On December 11, 2012, the City of Manteca issued $35.84 million Water Revenue Refunding Bonds, Series 2012 (the "2012 Bonds"). The 2012 Bonds were issued to assist the City in prepaying the remaining outstanding payments of the Authority Series 2003A Installment Payments, fund a debt service reserve fund, and pay for the costs of issuance. The 2012 Bonds are currently outstanding in the amount of $18.02 million, carry a 5.00% coupon rate, and may be prepaid at any time without penalty.
Staff is seeking City Council approval to refinance all the outstanding 2012 Bonds for interest rate savings with the issuance of 2026 Water Revenue Refunding Bonds (the "2026 Bonds").
Discussion:
The proposed Resolution recommended for adoption by the City Council authorizes the issuance of the 2026 Bonds, appoints professionals to assist with the financing, and approves all documents and actions needed to authorize the sale of the 2026 Bonds, including the following substantially final form financing documents together with any changes or additions deemed advisable and approved by an Authorized Officer. Certain information in these documents will be finalized after the bond sale.
* Indenture of Trust - Establishes the terms of the 2026 Bonds, including payment and redemption provisions, the definition and pledge of revenues to pay the 2026 Bonds, rights and duties of the Trustee (U.S. Bank Trust Company, National Association), remedies upon a default in the payment of the 2026 Bonds, and other provisions.
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