BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Adopt Recommended Positions on Federal Legislation: S. 1481 (Wicker) - Lifting Our Communities through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act; H.R. 1255 (Kustoff) - Investing in Our Communities Act; S. 1246 (Tillis) - FEMA Independence Act of 2025; And Other Legislation That May Require Consideration by the Board.
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RECOMMENDATION: Recommendation
A. Adopt a Position of "Support" on S. 1481 (Wicker) - Lifting Our Communities through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act;
B. Adopt a Position of "Support" on H.R. 1255 (Kustoff) - Investing in Our Communities Act; and
C. Adopt a Position of "Support" on S. 1246 (Tillis) - FEMA Independence Act of 2025.
Body
SUMMARY:
A. S. 1481 (Wicker) - Lifting Our Communities through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act
Recommended Position: Support
Priority Recommendation: 2
This bipartisan bill would reinstate advance refunding of bonds for debt service savings. Advance refunding allows state and local governments the one-time option to refinance outstanding municipal bonds to more favorable borrowing rates or terms. This provides state and local governments greater flexibility to generate savings. This practice was largely prohibited under the 2017 Tax Cuts and Jobs Act as a cost-cutting measure.
Status:
The bill was introduced in the Senate on April 10, 2025, and it was referred to the Committee on Finance.
Importance to Valley Water:
Advance refunding of bonds is a valuable tool that can save local agencies like Valley Water significant funding over the life of a government bond (typically 30 years). As interest rates almost certainly fluctuate over the life of a bond, the ability to refund at lower interest rates can save an agency significant funding - costs that are ultimately borne by local ta...
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