BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Receive an Update on the Issuance of Water System Refunding Bonds in an Aggregate Not-to-Exceed Amount of $520 Million and Adopt a Resolution Approving the Form of a Preliminary Official Statement.
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RECOMMENDATION: Recommendation
A. Receive an update on the issuance of Water System Refunding Revenue Bonds in an aggregate not-to-exceed amount of $520 Million; and
B. Adopt the Resolution APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE ISSUANCE OF WATER SYSTEM REFUNDING REVENUE BONDS AND CERTAIN ACTS IN CONNECTION THEREWITH.
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SUMMARY:
Board approval of staff recommendations will allow the Santa Clara Valley Water District (Valley Water) to adopt a resolution (Attachment 1) approving the form and publishing of the Preliminary Official Statement (Attachment 2) bond disclosure document pursuant to the Securities Exchange Act Rule 15c2-12, and proceed with the issuance of Water Utility (WU) Enterprise debt in an aggregate not to exceed a principal amount of $520 million as authorized by the Board on May 16, 2025, for the following purposes:
1. Issue Refunding Revenue Bonds to refund all outstanding tax-exempt WU Series 2016AC debt for debt service savings;
2. Issue Refunding Revenue Bonds to refund outstanding taxable Revolving Line of Credit Certificates issued to finance projects for the WU Enterprise (the "short-term obligations"); and
3. Pay costs of issuance.
Based on current projections of interest rates and funding needs, the aggregate principal amount of the combined issuance is anticipated to total approximately $206 million. The projections and estimates provided herein may change depending on market conditions; however, the total debt issuance amount cannot exceed $520 million pursuant to Resolution No. 2025-29, adopted on May 16, 2025. Note that the authorization am...
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