CITYYCOUNCIL
MEETING
FFEBRUARY 25,,
2025
PPRESENTATIONS
Item #6
LB 25-003
2025
Wastewater
Revenue Bonds
CITY OF HAYWARD
2025 WASTEWATER REVENUE BONDS
February 25, 2025
PRESENTATION TO CITY COUNCIL
Financing Team for the 2025 Bonds
NHA Advisors
• Municipal Advisor to the City
Jones Hall
• Bond and Disclosure Counsel to the City
BNY Mellon
• Trustee for the 2025 Bonds
Underwriter – TBD
• Winning underwriter will not be known until the day of bond sale 2 Background
City WRRF’s Administration and Lab
Building Project and WRRF Phase II
Projects are expected to have a
combined cost of $498 million including
all capital costs, contingencies, and
financing costs
2025 Bonds will provide approximately
26% of the funding for the project and
fund construction through September
2026
2025 Bonds will also reimburse Sewer
Fund reserves for $12 million in Project
costs paid to date
Financing plan incorporates a
combination of a 2025 WIFIA Loan,
2027 Bond financing, reserves, and
grants
WIFIA Loan,
49%
3 2025 Bonds,
26%
2027
Bonds,
17%
Sewer Fund
Cash, 5%
2024 WRDA
Funding, 3%
Expected Sources of
Project Funding
Anticipated Structure of the 2025 Bonds
Standard sewer
revenue pledge
30-year final maturity,
fixed interest rate,
optional prepayment
after 10 years
Structured for level
aggregate debt service
at approximately
$9.1M annually
Expected par of
approximately $125
million, but requesting
authorization for up to
$135 million to
provide flexibility to
bidders
City of Hayward Wastewater Fund
Aggregate Outstanding and Anticipated Debt Service
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
Aggregate Outstanding Debt 2025 Bonds 2027 Bonds WIFIA Loan 4 Summary of Financing Documents
5 Authorizing Resolution
• Authorize City Manager to issue the
Bonds, provided final bond pricing meets
not to exceed parameters therein (not to
exceed principal of $135 million, true
interest cost of 5.25%)
Indenture of Trust
• Formalizes relationship between the City
and BNY Mellon; describes key terms for
the Bonds, including payment,
prepayment, rate covenant, and other
obligations
Notice of Intention
• Published in a local & national municipal
bond publication
Notice of Sale
• Outlines terms and conditions for the
competitive sale of the 2025 Bonds
Preliminary Official Statement
• Provides material information related to
terms and security for the 2025 Bonds
• Securities law requires the City to
disclose all material facts pertinent to a
bond investor’s decision to buy the
bonds
Continuing Disclosure
Certificate
• Appended to the POS
• City agrees to provide annual disclosures
and certain significant events disclosures
to bond investors
Financing Schedule*
6 Tonight City Council Approval of 2025 Bonds
Mid-March 2025 Bond Sale
Late March 2025 Bond Closing
Early April City Council Approval of 2025 WIFIA
Mid April 2025 WIFIA Closing
*Subject to change based on market conditions or other factors ANY QUESTIONS?
• City Council Questions
• Public Comments
• City Council Comments and Action
Item #7
LB 25-004
FY 24-25 Mid-
Year Budget
Review
1 FY 2024-25 Mid-Year Budget
Adoption and Review of Five-
Year General Fund Forecast
Dustin Claussen, Assistant City Manager
2 FY 2024-2025 General Fund Highlights
• Revenue (including transfers in) increase of $10.4 million (4.81%) • Operating Expenditures Growth by $11.9 million (5.47%) $9.205
$2.289
$0.446
Operating Expenditure Growth
(dollars in millions)
Salaries & Benefits Non-Personnel Related Expenses Transfers Out 3 Summary of Proposed General Fund
Mid-Year Request (New)
4 Proposed
FY 2024-25
Mid-Year
Changes –
General
Fund
5 General Fund
Updated Five-Year Forecast
6 Summary of Proposed
FY 2024-25 Mid-Year Changes for Other and CIP Funds
(Expenditures)
Mid-Year CIP Net Change ($ 584,779)
Mid-Year Other Fund Net Change $ 2,192,345
Measure C/K-1 Fund $4.2 mil
• Fire Station 6 and Fire Training Center Project $3.2 mil • St. Rose Hospital $1 mil
Other Funds
Increase of $2.2 mil
Capital Improvement Funds
Increase of $584,779
7 Recommendations
That Council:
• adopts a resolution providing amendments to the previously adopted City of Hayward FY 24-25 Operating Budget
• adopts a resolution providing amendments to the previously adopted City of Hayward FY 24-25 Capital Improvement
Program Budget
8 Questions
and
Feedback
9 Summary of the Impact of Potential Federal Funding Freeze $ 2.6 million $12.1 million