2025 Wastewater Project
Private Placement
September 8, 2025
A. M. Peche’ & Associates LLC
Piper Sandler & Co.
Kutak Rock LLP
1 June 26, 2025 - Staff begins discussion with its Municipal Advisor about timing and financing Wastewater System improvements that explore differing methods of sale, differing final maturities, and the impact of each under approved rates and debt service coverage
July 3, 2025 – Staff has a meeting with the Financing Team and its Rate Consultant and determines that a Direct Placement with a 20-year maturity is the optimal method to finance the Wastewater Project and agrees on a time schedule with a closing date of September 26th July 28, 2025– Council adopts a Reimbursement Resolution and a Resolution of Intent hiring, on a contingent basis, A. M. Peche & Associates (Peche & Associates) as Municipal Advisor, Piper Sandler & Co. (Piper) as Placement Agent, and Kutak Rock (Kutak) as Bond Counsel (collectively, the “Financing Team”)
July 30, 2025 – Piper sends Term Sheet to banks requesting bids for a Private Placement 2 3
Term Sheet and attachments with information on
the City and the City’s Wastewater Enterprise goes
out to 28 banks
Piper receives bids from 6 banks by due date of
August 13th
Piper calculates the bids to compare interest rates,
call features, additional costs, and other proposed
provisions
Winning bidder is Webster Bank with an interest
rate of 4.425%
4 Name of Bank Interest
Rate Interest Rate Notes Bank Counsel
Fee Optional Redemption Rate Lock Other Notes
Webster Bank 4.425% Not provided $6,500(3)
Callable any IPD
beginning 9/1/28 @
102%, 9/1/31 @ 101%
and 9/1/35 and
thereafter at par.
Locked until
expected closing
in Term Sheet
Requires ACFR annually.
Term sheet will expire on August 22, 2025. If
accepted, will expire if not closed by
September 26, 2025.
Includes up to 8 wires at closing.
EverBank 4.67% Not provided $10,000
Years 1- 2 @ 103%,
years 3-4 @ 102%,
years 5-6 @ 101%, and
par call beginning year
7. 60 days
Default rate of Interest rate + 3.00%.
Terms shall expire after 5 days if not accepted.
Requires ACFR provided within 270 days after
each FY and annual budgets within 30 days of
approval.
Capital One 4.68% Not provided Not provided 10-year par call Not provided Huntington Bank 4.77% Not provided $0
Before 9/1/2035:
Premium of 102%
On or after 9/1/35: par
call
Locked through
closing if occuring
on 9/24/25
Proposal will expire 8/20/25 if no response
received or if closing has not occurred by
9/24/25.
NBH Bank 4.90%(2)
Option 1: Fixed for full 20 years
and based on 10-Year SOFR
Swap + 1.20%
Option 2: Fixed for 10 years and
based on 10-year SOFR Swap +
1.00%. After rate reset every 5
years at the then 5-year SOFR
Swap Rate +1.00%
TBD Callable at par 10 years
after closing
May lock the rate
up to 15 days
prior to close with
no additional cost.
Default rate of Fixed Rate + 3.00%.
City will deposit funds in Project Fund held by
NBH Bank.
Requires ACFR provided within 270 days after
each FY and annual budgets within 60 days of
approval.
Western Alliance
Bank 5.35%(1)
Calculated as 77% of the sum of
the US Treasury Actives Curve
Sport Rate corresponding to
WAL of the loan + 2.5%
$10,000
Callable 9/1/2028 in full
or in part with consent of
lender, without premium
May be locked 2
weeks prior to the
closing date.
Loan may be structured with full amount
disbursed at closing or draw-down schedule.
Default rate of interest rate + 3.00%.
On August 14th Staff discusses the bids with the Financing Team Webster Bank is the bidder that provides the lowest interest rate that is 24.5 basis points lower than the cover (2nd Place) bid
Webster Bank provides additional flexibility for optional prepayment of the private placement on interest payment dates of September 1st or March 1st as follows:
Term Sheet is signed on Friday, August 15th with a “locked in” rate of 4.425%, assuming the financing is closed by September 26th
5 The debt service coverage ratio pursuant to the Installment Purchase Contract is 120%.
The City is required to set rates, fees and charges at the beginning of each Fiscal Year which are reasonably
expected to yield estimated Net Revenues which are at
least equal to 120% of debt service due in such Fiscal Year.
Should the City not be able to set rates, fees and charges at a level which are reasonably expected to yield 120%
coverage of debt service, the City is required to consult with a Rate Consultant within 120 days of the end of the fiscal year, adjust operational costs (if recommended by the Rate Consultant) and may transfer funds from the Rate Stabilization Fund, all to assist in making the required
1.20x debt service coverage.
6 Terms from initial bid were modified and
adjusted, as follows:
◦ Put in flexibility to allow for a larger Project Fund should construction bids come in higher
◦ Taxable Rate of 6% should the obligations become
taxable; Default Rate (missed payment) is an
additional 3% which is 7.425% or 9% if taxable
7 On Thursday, August 28th the City received construction bids for the Wastewater Project. The construction costs with contingencies are $4.8 million
Based on the updated construction costs, the estimated par amount will be $4,940,000. Estimated average annual debt service will be approximately $380,899. Total debt service will be approximately $7,593,645.
Estimated Cost of Issuance of approximately $138,844 is 2.81% of the estimated final par amount of $4,940,000. This is below the 3% to 5% amount of par for similar size Private Placements This Private Placement saved costs over a Public Sale, which would have required a bond rating and associated fee,
preparation of an official statement, and ongoing continuing disclosure requirements
8 September 8, 2025 - City Council approval of
the Legal Documents
September 10, 2025 – Final numbers and
legal documents circulated
September 15-17 – City officials sign and
return legal documents to bond counsel
September 24th Closing and Wastewater
Project Funds delivered to City’s Bank
9 10