City Council Agenda
Memo to:
Manteca City Council
From:
Matthew Boring, Interim Finance Director
Date:
October 21, 2025
Subject:
2025 Wastewater Revenue Bonds
Recommendation:
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Adopt a resolution of the City Council of the City of Manteca approving, authorizing and directing execution of certain financing documents and directing certain related actions in connection with financing and refinancing certain improvements to the city's wastewater system.
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Background:
On May 27, 2009, the Manteca Financing Authority issued $19 million Sewer Revenue Bonds, Series 2009 (the "2009 Bonds"). The 2009 Bonds were issued to assist the City in financing capital costs relating to the upgrade and expansion of the Manteca Wastewater Quality Control Facility Phase III Expansion Project and to pay for the costs of issuance, debt service reserve and reimbursement. The 2009 Bonds are currently outstanding in the amount of $18.44 million, with coupons ranging from 5.00% to 5.75%, and can currently be prepaid on any interest payment date (12/1 or 6/1) without prepayment penalty.
On December 11, 2012, the City of Manteca issued $22.69 million Sewer Revenue Refunding Bonds, Series 2012 (the "2012 Bonds"). The 2012 Bonds were issued to (i) to refinance prior wastewater indebtedness incurred in 2003 and (ii) to pay costs of issuance of the 2012 Bonds. The 2012 Bonds are currently outstanding in the amount of $6.975 million, with coupons ranging from 2.625% to 4.000%, and can currently be prepaid without prepayment penalty.
The Authority and the City are seeking to refinance all the outstanding 2009 and 2012 Bonds for interest rate savings and to finance $30 million of additional improvements to the Wastewater System through issuance of the 2025 Wastewater Revenue Bonds by the Authority. The 2025 Bonds will also pay the costs of issuing the 2025 Bonds. The projects are anticipated to include but are not limited to Dewatering (Centrifuge) Unit No. 3, Sludge Thick...
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