201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
ANAHEIM HOUSING AND PUBLIC IMPROVEMENTS
AUTHORITY AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: SEPTEMBER 22, 2026
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: ISSUANCE OF NOT-TO-EXCEED $325,000,000 AGGREGATE
PRINCIPAL AMOUNT OF ANAHEIM HOUSING AND PUBLIC
IMPROVEMENTS AUTHORITY ELECTRIC REVENUE
REFUNDING BONDS, SERIES 2026-A (ELECTRIC UTILITY
DISTRIBUTION SYSTEM REFUNDING) AND SERIES 2026-B
(ELECTRIC UTILITY DISTRIBUTION SYSTEM REFUNDING)
(FORWARD DELIVERY), AND NOT-TO-EXCEED $225,000,000
AGGREGATE PRINCIPAL AMOUNT OF ANAHEIM HOUSING
AND PUBLIC IMPROVEMENTS AUTHORITY WATER
REVENUE REFUNDING BONDS, SERIES 2026-A (WATER
UTILITY SYSTEM REFUNDING) AND SERIES 2026-B (WATER
UTILITY SYSTEM REFUNDING) (FORWARD DELIVERY), TO
REFINANCE OUTSTANDING ELECTRIC AND WATER
REVENUE BONDS
ATTACHMENT (Y/N): YES ITEM # 02-A
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the Anaheim Housing and Public Improvements Authority (AHPIA), by Resolution:
1. Authorize an issuance of not-to-exceed $325 million aggregate principal amount of AHPIA Electric Revenue Refunding Bonds, Series 2026-A (Electric Utility Distribution System Refunding) and Electric Revenue Refunding Bonds, Series 2026-B (Electric Utility Distribution System Refunding) (Forward Delivery) (collectively, the “Electric Bonds”), to refinance outstanding electric revenue bonds for debt service savings;
2. Authorize an issuance of not-to-exceed $225 million aggregate principal amount of AHPIA Water Revenue Refunding Bonds, Series 2026-A (Water System Refunding) and Water Revenue Refunding Bonds, Series 2026-B (Water System Refunding) (Forward Delivery) (collectively, the “Water Bonds” and together with the Electric Bonds, the “Bonds”), to refinance outstanding water revenue bonds for debt service savings;
Issuance of AHPIA Electric Revenue Refunding Bonds, Series 2026-A and Series 2026-B, and Water Revenue Refunding Bonds, Series 2026-A and 2026-B, to Refinance Outstanding Electric and Water Revenue Bonds September 22, 2026
3. Approve the following documents, in substantial form (collectively, the “Bond Agreements”):
Electric Documents
a. An Indenture of Trust among the City of Anaheim (Anaheim), AHPIA, and U.S. Bank Trust Company, National Association, as trustee (the “Electric Trustee”), for the issuance of the Electric Bonds and the terms thereof; b. An Installment Purchase Agreement between Anaheim and AHPIA for Anaheim to make certain purchase payments supporting debt service on the Electric Bonds;
c. A Purchase Contract among Anaheim, AHPIA, and Goldman Sachs & Co.
LLC (Goldman), as Underwriter, for the purchase and sale of all or a specified portion of the Electric Bonds;
d. A Forward Delivery Purchase Contract among Anaheim, AHPIA, and Goldman, as Underwriter, for the forward purchase of all or a specified portion of the Electric Bonds;
e. A Preliminary Official Statement for the Electric Bonds (the “Electric POS”); f. A Dealer Manager Agreement among Anaheim, AHPIA, and Goldman, as Dealer Manager, in connection with the tender for purchase of certain bonds previously issued by AHPIA for Anaheim’s electric system (collectively, the “Prior Electric Bonds”);
g. An Invitation to Tender Electric Revenue Bonds of AHPIA and Anaheim relating to the Prior Electric Bonds; and
Water Documents
h. An Indenture of Trust among Anaheim, AHPIA, and U.S. Bank Trust Company, National Association, as trustee (the “Water Trustee”), for the issuance of the Water Bonds and the terms thereof;
i. An Installment Purchase Agreement between Anaheim and AHPIA for Anaheim to make certain purchase payments supporting debt service on the Water Bonds;
j. A Purchase Contract among Anaheim, AHPIA, and RBC Capital Markets LLC (RBC), as Underwriter, for the purchase and sale of all or a specified portion of the Water Bonds;
k. A Forward Delivery Purchase Contract among Anaheim, AHPIA, and RBC, as Underwriter, for the forward purchase of all or a specified portion of the Water Bonds;
l. A Preliminary Official Statement for the Water Bonds (the “Water POS”); m. A Dealer Manager Agreement among Anaheim, AHPIA, and RBC, as Dealer Manager, in connection with the tender for purchase of certain bonds previously issued by AHPIA for Anaheim’s water system (collectively, the “Prior Water Bonds” and together with the Prior Electric Bonds, the “Prior Bonds”);
Issuance of AHPIA Electric Revenue Refunding Bonds, Series 2026-A and Series 2026-B, and Water Revenue Refunding Bonds, Series 2026-A and 2026-B, to Refinance Outstanding Electric and Water Revenue Bonds September 22, 2026
n. An Invitation to Tender Water Revenue Bonds of AHPIA and Anaheim relating to the Prior Water Bonds; and
4. Authorize and direct each of the Chairperson of the Board, Executive Director, Treasurer, Auditor, Acting Public Utilities General Manager, their designees, and all other Board-authorized officers and officials to:
a. Execute and deliver the Bond Agreements with any changes that, as determined by the Authority Counsel, do not materially change the terms and conditions of the Bond Agreements approved by Resolution; b. Execute and deliver, in connection with the issuance, sale, and delivery of the Bonds and the refinancing of the Prior Bonds (including any tender offer for outstanding Prior Bonds), one or more supplements to, amendments of, or updated versions of the Electric POS, the Water POS, the resulting Official Statements, and any tender offer or invitation-to-tender materials, in order to reflect updated financial, operating, market, or other information and to satisfy applicable disclosure obligations under federal and state securities laws, in consultation with the Authority Counsel and bond counsel; and c. Take such actions as are necessary or advisable to complete the transactions contemplated by the Bond Agreements and to implement and administer the same.
DISCUSSION:
As a community-owned utility, Anaheim Public Utilities (APU) strives to provide electric and water service reliably, sustainably, and affordably. APU finances capital investments in both systems through a combination of operating revenues and bond proceeds.
APU proposes to refinance a portion of its outstanding electric and water revenue bonds to potentially generate approximately $19.2 million in interest cost savings – $15.1 million for the Electric Utility and $4.1 million for the Water Utility. However, the market will determine the actual savings at the time of pricing the bonds.
Electric System Refinancing
APU proposes to issue up to $325 million in Electric Revenue Refunding Bonds to refinance certain outstanding Electric Bonds. APU anticipates that the refinancing will reduce or maintain, but not extend, the term of the refunded bonds. Candidates include the following:
Series 2020-B: Issued as taxable bonds for $121.8 million, proceeds from these bonds refunded older, more expensive debt (2016-A). The bonds mature in 2034, and APU proposes to refund up to $42.5 million of the $44.1 million outstanding.
Series 2022-A: Issued as tax-exempt bonds for $156.5 million, proceeds from these bonds refinanced older, more expensive debt (2012-A and 2017-B) and financed capital improvements to the electric system. APU proposes to refund up to $124.0 million of the $154.4 million outstanding.
Issuance of AHPIA Electric Revenue Refunding Bonds, Series 2026-A and Series 2026-B, and Water Revenue Refunding Bonds, Series 2026-A and 2026-B, to Refinance Outstanding Electric and Water Revenue Bonds September 22, 2026
Series 2022-B: Issued as tax-exempt bonds for $74.3 million, proceeds from these bonds financed capital improvements to the electric system. APU proposes to refund $51.8 million of the $63.6 million outstanding. Series 2022-E: Issued as tax-exempt bonds for $34.1 million, proceeds from this bond refunded older, more expensive debt (2012-A). APU proposes to refund up to $34.1 million, which is the entire amount that remains outstanding.
Water System Refinancing
APU proposes to issue up to $225 million in Water Revenue Refunding Bonds to refinance certain outstanding water revenue bonds. As with the Electric refinancing, APU will only refinance bonds that produce meaningful savings based on market conditions.
Series 2020-B: Issued as taxable bonds for $32.4 million, proceeds from this bond refunded older, more expensive debt (2016-A). APU proposes to refinance up to $23.0 million of the $24.6 million still outstanding. Series 2022-A: Issued as tax-exempt bonds for $45.0 million, proceeds from this bond financed capital improvements to the water system. APU proposes to refund up to $41.3 million of the $42.9 million still outstanding. Series 2022-B: Issued as taxable bonds for $79.3 million, proceeds from this bond refunded older, more expensive debt (2015-A and 2020-A). APU proposes to refund up to $73.0 million of the $77.5 million still outstanding. Series 2022-C: Issued as tax-exempt bonds for $31.6 million, proceeds from this bond refunded older, more expensive debt (2010-B). APU proposes to refund $27.1 million of the $29.0 million still outstanding.
Summary
Maintaining and operating a safe and reliable electric and water utility requires significant and recurring capital investment. APU has periodically used bond financing to complement pay-as-you-go funding, refinancing those bonds when appropriate for economic savings. The contemplated refinancing described in this report is consistent with APU's long-standing financial strategy and may provide meaningful savings to ratepayers, helping keep customer bills stable and affordable.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU's fiscal year 2026/2027 restricted Electric and Water Utility Fund budget to service existing bond obligations. Any planned refinancing, including issuance costs, is expected to result in overall lower debt service costs for both utilities.
Issuance of AHPIA Electric Revenue Refunding Bonds, Series 2026-A and Series 2026-B, and Water Revenue Refunding Bonds, Series 2026-A and 2026-B, to Refinance Outstanding Electric and Water Revenue Bonds September 22, 2026
Respectfully submitted,
Brian Beelner
Acting Public Utilities General Manager
Attachments:
Electric Documents
1. AHPIA Resolution
2. Indenture of Trust
3. Installment Purchase Agreement
4. Purchase Contract
5. Forward Delivery Purchase Contract
6. Electric POS
7. Dealer Manager Agreement
8. Invitation to Tender Electric Revenue Bonds
Water Documents
9. AHPIA Resolution
10. Indenture of Trust
11. Installment Purchase Agreement
12. Purchase Contract
13. Forward Delivery Purchase Contract
14. Water POS
15. Dealer Manager Agreement
16. Invitation to Tender Water Revenue Bonds