What is Being Proposed?
The Los Angeles City Council is being asked to adopt two amended and restated resolutions governing the City's wastewater system revenue bonds: the Amended and Restated Senior Resolution and the Amended and Restated Subordinate Resolution. These updates modernize the original bond resolutions to reflect current industry practices and provide more favorable financial terms to the City. The City Attorney is also being requested to update related sections of the Los Angeles Administrative Code and Municipal Code to align with these changes.
Why This Matters
These resolutions are foundational documents that govern how the City borrows money for its wastewater infrastructure. By updating provisions to reflect modern industry standards, the City aims to gain greater financial flexibility and potentially more favorable borrowing conditions. This is primarily an administrative housekeeping action to ensure the City's debt management practices remain current and compliant with best practices.
Key Details
Both the Energy and Environment Committee (September 16, 2025) and the Budget and Finance Committee (October 7, 2025) have approved these recommendations. The Energy and Environment Committee voted 3-0 in favor (with 2 absent), and the Budget and Finance Committee voted 5-0 in favor. The City Administrative Officer confirmed there is no fiscal impact to the General Fund and no additional debt is being incurred.
Impact
This primarily affects the City's long-term financial management and borrowing capacity for wastewater infrastructure projects. While residents won't see immediate changes, updating these governance documents helps ensure the City manages its wastewater system financing efficiently and competitively in financial markets.