Debt Management Commission - Regular Meeting

Marilyn? Yes. Yes. You wanna run it? You want me to No.

I can't.

I can't. You gotta be here. Alright. Well, let's move call the meeting to order. The deputy commission meeting of July 5 or Thursday, May 7. Roll call. Roll call. I need the right agenda. I don't have the right agenda. Yep. Roll call. Okay. Please.

Chair Kirkpatrick. Here.

Vice chair Stuart? Here. Commissioner Becker? Here. Councilman Churchill?

Here.

Councilwoman Fielding?

Here. Councilwoman Jurgensen? Here.

Councilwoman Kelly? Here.

Yolanda King?

Here. Commissioner Naft? Here. Dan Shaw? Dan

won't be approaching. Yeah.

Emily Stevens? Here.

Alright. You have a quorum.

Okay. We have a quorum. Comments by the general public. We'll open up the meeting for public comment. Is anyone on the line? Anyone in the room? Seeing here and hearing none, we'll close the public comment period. Approval of the agenda. I move approval. We have a motion. Second. I have a second. All in favor, please say aye. Aye. Aye. Any opposed? Motion carries. Okay. Approval of minutes from the regular meeting held last month. I have a motion, please. Or is there any comments? There are none. I move approval. I move approval.

I second. Second. Do have a calendar on that? Okay.

Did you get that? Okay. We have a motion and a second. All in favor, please Aye. Aye. Aye. Any opposed? Minutes have been approved from last meeting.

All right.

Approved, adopt, authorize the chair to sign a resolution concerning the proposed proposal to issue Los Ragusa Valley Water District general obligation bonds. I'll turn the time over to Mr. WAP. Go ahead. Thank

you very much, Guy Hobbs. Joining me is Paul Johnson. Paul Johnson is the CFO for both Las Vegas Valley Water District and Southern Nevada Water Authority. In order to move through the two items today, because they're both Las Vegas Valley Water District, if it meets with your approval, I can give a summary of both at the same time and you can vote on them individually. Does that work?

Yes. I'll give a little bit of an overview. Both of these issuances would be issued through Las Vegas Valley Water District. Both are new money issuances, so we're not dealing with re fundings today. We're dealing with new money for capital projects.

The first one, the $93,000,000 issuance, the 2026 Cs, that's for Las Vegas Valley Water District capital improvements. The second one is SNWA, but issued through Las Vegas Valley Water District. And that one is for capital projects for the Southern Nevada Water Authority. So both issuances are through the Las Vegas Valley Water District. Both and the second one has a par amount of $515,000,000 So we're dealing with $93,000,000 for Las Vegas Valley Water District and $515,000,000

made we're progress October because we do have that ninety day posting

period in between hopefully getting a DMC approval today and actually going to market with the bond. Both would be AA plus rated. Into the interest rates and the packages that you're looking at today, we've built a 110 basis point cushion into the rates that we're showing in there, which we normally do because there's an extended period of time between now and the actual time of sale of the bonds. And we haven't quite figured out how to forecast the market accurately with regard to interest rates that far into the future or none of us would be here. So we always do build that cushion in.

In both cases and in the first package, I would invite you to look at page seven or excuse me, eight. Page eight and nine, the bottom line of the numbers that you see indicates the projected coverage. And so in '25 you can see that the coverage is 9.5 times. If you turn the page, this is projected into the future and you see that the coverage remains in the eight to 11 ish range. That is significant amounts of coverage over the requirements to pay the boss. If you look at the second package,

page

nine. Thank you, Paul. And you can see that the coverage is still an an enviable six times coverage is what we're showing. So the one thing about Las Vegas Valley Water District and the reason why it comes to the Debt Management Commission, the Las Vegas Valley Water District has a covenant to raise their rates sufficient to pay the debt service. The raising of the rates could occur at any time over the course of the year if need should arise to do that.

And we don't anticipate that to be the case. The first line of protection is raising water rates commensurate with the need to pay the debt service. If for some reason if the rates, as so adjusted, were insufficient to pay the debt, then there would be a general obligation requirement, which again is why we're here. And that would require the raising of property tax to meet any unfulfilled obligation. Interesting thing to me about that it's always been interesting to me as well you could deal with the water rates over the course of a year at the Vegas Valley Water District or Southern Nevada Water Authority Boards, you can only deal with property taxes once a year when you extend the role in June.

So the timing has always been a bit peculiar on that, but we've obviously never had to go to the general obligation to make payment on any of these bonds. And I with the coverage that you see, obviously can't foresee that being the case. And and in the coverage or in the coverage that we're seeing, we've included the prospective debt that we're talking about today. So that's covered assuming that these issuances are made. So with that, I could go into a lot of detail. But with that, I'm happy to take any questions that you might have about either of the proposed issuances.

Any questions? No questions. No? Okay. Of questions.

Have one question for Yolanda King.

Go. Go

ahead. Yes. I was at five hundred and fifty million dollar debt proposal. It's just it's just for my

Yeah. I think commissioner Matt answered this. Yolanda probably heard that,

but, yes, the answer

was yes. The two of us are really excited about it. Much so. Yeah. I went to work going the other

way. Yeah. So

okay. Okay. Any other questions, those on the phone or on the Zoom? I have a very basic question. Probably it's my misunderstanding to this. Why is Vegas pay or excuse me, Las Vegas Nevada Water Authority issuing through Las Vegas Valley Water District?

Well, it's through a master bond repayment agreement bond repayment agreement, having to do with the fact that the Las Vegas Valley Water District is the local government, and it is the issuing authority. And then Southern Nevada Water Authority pledges revenue to to secure those bonds. Okay.

Yeah. It's always it's been the conduit for SNWA, and SNWA hasn't issued under its own name. It issues through Las Vegas Valley Water. Okay. Good.

Alright. Any other questions? No questions? If not, I'll begin by moving for approval of item three. I have a motion on item three. Do we have a second?

A second. Your Kelly second. Just if you only can know. Okay.

We have a motion and a second on item three. All in favor, state aye.

Aye. Aye. Aye. Any opposed?

That motion carries. Okay. Item four. We've already received our presentation, so I'm prepared to move for approval. Okay. Commissioner Knapp makes approval on item four. Do we have a second? I'll second that. Okay. We have a motion and a second on item four. All in favor, please. So state, aye. Aye.

Aye. Aye.

Okay. Any negative? Okay. That motion carries unanimously as well. Alright. Thank you. Thank you for the presentation. Moving on, we now have couple of comments from the general public. Any on Zoom, on the phone, or in person? Seeing or hearing none, we'll close the public comment period, and this meeting is adjourned.

Thank you, everyone. Thank you all very much.

Thank you. Have a great day.

You as well, you guys. Thanks for joining.

Karen Filby. You

snuck in. Oh, I did. That's