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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Glendale Water and Power (GWP) Electric Revenue Refunding Bonds 2026 - Adoption of Ordinance and Authorizing Issuance of Bonds and Adoption of Resolution Authorizing the Invitation of Bids and Various Actions Relating to the Issuance of the Bonds.
1) Ordinance authorizing the issuance by the City of not to exceed $45,000,000 Aggregate Principal Amount of City of Glendale Electric Revenue Bonds, 2026 Refunding Series, Payable out of the Electric Works Revenue Fund, and approving certain other actions in connection therewith. 2) Resolution authorizing the invitation of bids for the purchase of Electric Revenue Bonds, 2026 Refunding Series of the City of Glendale; approving a Notice of Intention to Sell bonds, a Preliminary Official Statement (POS), a Notice Inviting Bids and Official Bid Form; authorizing the publication of a Notice of Intention to Sell Bonds; authorizing the execution and delivery of a final Official Statement, a Twelfth Supplement to Indenture of Trust, a Continuing Disclosure Agreement, and an Escrow Agreement; and authorizing the award of the Bonds.
COUNCIL ACTION
Item Type: Ordinance
Approved for March 31, 2026 calendar
EXECUTIVE SUMMARY
GWP recommends to issue revenue bonds to refund the 2016 Refunding Bonds for an estimated savings of approximately $5.6 million.
On March 10, 2026, the City Council introduced an Ordinance authorizing the issuance of $45,000,000 aggregate electric revenue bond refunding. Staff now recommends that the City Council can adopt the introduced Ordinance and the presented Resolution authorizing various actions in connection with the refunding of the herein-referenced bonds.
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RECOMMENDATION
Approve the herein-requested actions to authorize the preparation and issuance of the electric revenue bonds refunding:
a. Adoption of the Ordinance authorizing the issuance of bonds, which was introduced on March 10, 2026.
b. Adoption of the resolution authorizing the invitation of bids for the purchase of Electric Revenue Bonds, 2026 Refunding Series of the City of Glendale; approving a Notice of Intention to sell bonds, a Preliminary Official Statement (POS), a Notice Inviting Bids and Official Bid Form; authorizing the publication of a Notice of Intention to Sell Bonds; authorizing the execution and delivery of a final Official Statement, a Twelfth Supplement to Indenture of Trust, a Continuing Disclosure Agreement, and an Escrow Agreement; and authorizing the award of the 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 interest rate and resulting savings shall be determined at the time of sale, and the sale of the bonds is contingent upon the realization of the sufficient savings.
Based on the short term of the refunding bonds (12 years), a ten-year optional redemption feature (customary in the municipal bond market) might not offer the benefits it usually does because that feature would apply only to the two maturities on the tail end of the refunding bonds. For that reason, if market conditions during bond marketing warrant, the City may forego the customary optional redemption feature to instead potentially lower debt service costs on the refunding bonds.
Additionally, the electric revenue refunding bonds will provide funds to make a deposit to a debt service reserve fund (if not otherwise satisfied with amounts on deposit under the Indenture of Trust), and to pay the costs of issuance of the Bonds.
The Ordinance, introduced by the City Council on March 10, 2026, will authorize the issuance of refunding bonds as described herein. The Resolution will authorize the Invitation of Bids for the purchase and refunding of the refunded Bonds; will approve a Notice of Intention to Sell Bonds, a Preliminary Official Statement, a Notice Inviting Bids and the Official Bid Form; will authorize the publication of a Notice of Intention 9a3
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to Sell Bonds; will authorize the execution and delivery of a final Official Statement, a Twelfth Supplement to Indenture of Trust for the refunding bonds, a Continuing Disclosure Agreement and an Escrow Agreement will authorize the award of the bonds.
STAKEHOLDERS/OUTREACH
Not applicable.
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 to 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
Exhibit A: Notice of Intention to Sell
Exhibit B: Notice Inviting Bids
Exhibit C: Twelfth Supplement to Indenture
Exhibit D: Continuing Disclosure Agreement
Exhibit E: Preliminary Official Statement