Council authorizes application for up to $110 million in taxable limited-tax bonds to stabilize city finances

The City Council approved resolution R26240 authorizing the issuance and sale of taxable limited-tax bonds not to exceed $110 million to support city cash flow and longer-term financing needs.

Jason Acres, bond counsel, and municipal advisers outlined the financing plan, noting the bonds follow short-term revenue notes issued earlier in the city’s stabilization effort. The resolution authorizes applying to the state bond commission and retains co-bond counsel, underwriters and financial advisers to market and sell the bonds; staff said they expect to apply for state approval and return to council with final sale documentation.

Why it matters: The borrowing is part of a broader financial stabilization plan to provide operating liquidity. Counsel said the $110 million not-to-exceed amount is roughly $15 million less than prior short-term borrowing and that the resolution preserves flexibility on terms and amortization, with initial plans to seek market issuance in August subject to further council review.

Attribution: Jason Acres and co-advisers briefed the council; council approved the resolution and retained advisors to proceed with the financing process.

Next steps: Staff will apply to the state bond commission and return with final bond documents for ratification; the city intends to proceed with marketing and sale subject to market conditions and subsequent council approvals.