Burbank Water and Power will issue water bonds for the first time in more than a dozen years after the City Council this week granted the utility's request to use the earnings to fund projects and reduce debt.
The revenue bonds are not to exceed $41 million, which will be used to refinance the last bonds issued by the city in 1998.
The current debt for the 12-year-old bonds remains at $3 million and, according to the original arrangement, the city must maintain a certain amount in debt reserve while the bonds are active.
Burbank Water and Power Chief Financial Officer Bob Lium suggested the city use the money from the new bonds to refinance the ones issued in 1998, giving the utility greater financial freedom.
"The debt reserve costs us $90,000 per year," Lium told the City Council on Tuesday. "We can get rid of the indenture that does that and just rewrite the rules."