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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Introduction of the Ordinance Authorizing Issuance of Electric Revenue Refunding Bonds.
1. Introduction of the Ordinance authorizing the issuance of not to exceed $45,000,000 Aggregate Principal Amount of City of Glendale Electric Revenue Bonds, 2026 Refunding Series, and approving certain other actions in connection therewith.
COUNCIL ACTION
Item Type: Action Item
Approved for March 10, 2026 calendar
EXECUTIVE SUMMARY
Glendale Water and Power (GWP) recommends to issue revenue bonds to refund the 2016 Refunding Bonds for a present value savings of approximately $5.6 million.
RECOMMENDATION
Introduce the Ordinance authorizing the issuance of the refunding bonds.
ANALYSIS
In 2016, the City of Glendale issued its Electric Revenue Bonds, 2016 Refunding Series, to refund its 2006 Electric Bonds and a portion of the 2008 Electric Bonds. Total 2016 Electric Bond par at issuance was $72,615,000, and currently $43,105,000 is outstanding. The 2016 Refunding Series maturing on and after February 1, 2027, are subject to redemption prior to maturity, at the option of the City, as a whole or in part, on or after February 1, 2026.
The proposed refinancing of the 2016 Electric Refunding Bonds is expected to save on average about $570,000 per year through 2038 and achieve net present value savings of approximately $5.6 million over the life of the bonds. The effective borrowing cost is estimated at 2.60%. The actual rate and savings would be set at the time of sale.
STAKEHOLDERS/OUTREACH
Not applicable.
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FISCAL IMPACT
Issuance costs are estimated at $600,000 and will be paid at the closing of the issue, using refunding bond proceeds for payment. Therefore, no new appropriation is being requested at this time.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Not applicable for the action requested as the action does not involve a project for the purposes of California Environmental Quality Act.
CAMPAIGN DISCLOSURE
Not applicable.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Choose not to authorize the actions requested and recommended in this report.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager - Glendale Water and Power Prepared by:
Adrine Isayan, Assistant General Manager - Finance & Risk Management Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
None.