The proposal would refinance existing electric and water-system debt rather than authorize $550 million in new utility spending.
Anaheim officials will consider authorizing up to $550 million in revenue refunding bonds Tuesday as the city looks to restructure existing electric and water utility debt.
The Anaheim Housing and Public Improvements Authority and City Council are scheduled to consider up to $325 million in electric-utility distribution-system refunding bonds and up to $225 million in water-system refunding bonds.
The agenda describes the transactions as refunding bonds. That means the city would use new bond proceeds to refinance, defease or purchase certain outstanding bonds under the terms authorized by the council. The action is not the same as approving $550 million in new electric or water projects.
What the council will authorize
The resolutions would approve the bond issuance framework and related legal documents, including indentures, purchase agreements, escrow agreements and official statements. Portions of the transactions may use forward-delivery structures.
For residents and utility customers, the key questions are the interest savings, fees, maturity schedule and overall debt-service effect once final terms are set. The posted agenda establishes maximum principal amounts rather than the final size of each transaction.
