FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2025A
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Adopt Resolution No. FC-31 titled: "A Resolution of the Board of Directors of the Orange County Sanitation District Financing Corporation authorizing the execution and delivery by the Corporation of an Installment Purchase Agreement, a Trust Agreement and a Purchase Agreement in connection with the Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2025A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $120,000,000 and authorizing the execution of necessary documents and related actions".
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BACKGROUND
On July 23, 2025, the Board of Directors authorized the General Manager to pursue fixed rate refundings of the 2016A Revenue Obligations. Approval of the recommended actions and the associated documents will enable staff to complete the refunding process. The Financing Corporation is required to adopt the Resolution to complete the refunding.
RELEVANT STANDARDS
* The Financing Corporation is required to adopt the Resolution to complete the refunding. A Financing Corporation is required by the structure of the Revenue Obligations and was formed in April 2000 solely to satisfy this need.
PROBLEM
The interest rates payable on the 2016A Revenue Obligations are higher than current market yields.
PROPOSED SOLUTION
The issuance of up to $120,000,000 of Wastewater Refunding Revenue Obligations, Series 2025A would allow OC San to refund outstanding 2016A Revenue Obligations using a refunding amortization structured with the objective of providing level annual debt service savings (in years with principal maturing) and to generate net present value debt service savings of approximately $10.4 million (equal to 9.5% ...
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