HomeMy WebLinkAboutA018 - Resolution setting date for the sale of Electric Revenue Bonds, Series 2026D, and authorizing the use of a preliminary official statement in connection therewithITEM #:18
DATE:09-22-26
DEPT:FIN
SUBJECT:RESOLUTION SETTING DATE FOR THE SALE OF ELECTRIC REVENUE
BONDS, SERIES 2026D, AND AUTHORIZING THE USE OF A PRELIMINARY
OFFICIAL STATEMENT
COUNCIL ACTION FORM
BACKGROUND:
The City is proceeding with the first phase of financing for the new thermal generation project
for the Ames Municipal Electric Utility. This phase is expected to provide approximately
$50,533,000 of project funding for the RICE engines and other project costs anticipated
through approximately February 2028. The City Council previously authorized
borrowing in a principal amount not to exceed $53,930,000 and conducted the required
public hearing on September 8, 2026.
The next step is to approve the Preliminary Official Statement and establish the date for the
competitive sale of the Electric Revenue Bonds, Series 2026D. The Preliminary Official
Statement will be used by PFM Financial Advisors LLC to market the bonds to potential
purchasers.
The proposed resolution would set October 13, 2026, as the bond sale date. Bids will be
received until 10:00 a.m. that day, with the City Council considering the bids and potential
award of the bonds at its 6:00 p.m. meeting. The resolution also authorizes electronic bidding
through the PARITY bidding system.
No bonds will be awarded as a result of the September 22 action. Final bids and the
proposed issuance will return to the City Council on October 13. The bonds will be
payable solely from the net revenues of the Electric Utility and will not be supported by
the City’s property tax levy.
ALTERNATIVES:
1. Adopt the resolution approving the Preliminary Official Statement, setting October 13,
2026, as the date for the sale of the Series 2026D Electric Revenue Bonds, and
authorizing electronic bidding procedures.
2. Do not adopt the resolution. This would delay the financing and require staff and PFM to
develop an alternative financing schedule.
1
CITY MANAGER'S RECOMMENDED ACTION:
Approval of the resolution will allow the City to competitively market the Series 2026D
Bonds while preserving the City Council’s authority to review the bids and approve the
final bond issuance on October 13. Therefore, it is the recommendation of the City Manager
that the City Council adopt Alternative No. 1.
2