HomeMy WebLinkAbout16 REFUND TAX ALLO BD 06-15-98DATE:
NO. 16
6-15-98
June 10,1998
inter-Com
TO:
FROM'
SUBJECT:
William A. Huston, City Manager
Ronald A. Nault, Finance Director
REFUNDING OF OUTSTANDING 1987 AND 1991
TOWN CENTER PROJECT AREA TAX ALLOCATION BONDS
tSUMMARY: At their meeting held June 1, 1998 the Redevelopment Agency Board authorized staff
to proceed with a proposal to refund outstanding 1987 and 1991 Tax Allocation Bonds. The Agency
and the City are asked to adopt Resolutions RDA No. 98-2 and No. 98-54 authorizing the issuance of
not to exceed $21,000,000 of refunding bonds and approving related documents and actions.
RECOMMENDATION'
Adopt Resolution No. 98-54 approving the issuance by the Tustin Community Redevelopment Agency
of Tax Allocation Bonds in the aggregate principal amount of not to exceed $21,000,000.
DISCUSSION:
As reported to the Agency at the June 1 meeting, the refinancing net present value savings is 8.697%,
$1,567,725 over the remaining life of the bonds. There are no proposed changes in structure, i.e., the
current maturities for both refunded issues will be retained. We are exploring the possibility of
expanding the current reserve fund surety bonds on the 1991 bonds to also cover the reserve
requirements of the 1987 issue. If this is possible we are recommending the current reserve balance,
approximately $800,000, net of the surety premium, be used to reduce the cost of issuance and
principal of the refunding bonds.
Members of the refinancing team will be available at the meeting to answer your specific questions.
Ronald~. N aul~t (~ ~~.//,_,~
Finance Director
RAN:ts
Attachment
RAN:BondRefunding98.Agenda.doc
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RESOLUTION NO. 98-54
A RESOLUTION OF TilE CITY COUNCIL OF TIlE CITY OF TUSTIN,
CALIFORNIA, APPROVING THE ISSUANCE BY THE TUSTIN
COMMUNIIT REDEVELOPMENT AGENCY OF TAX ALLOCATION
BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO
EXCEED $21,000,000 TO REFUND TItEAGEN~'S O~ST~INGTOWN
CENTER AREA REDEVELOPMENT PROJECT TAX ALLOCATION
REFU .NDING BONDS, SERIES 1987, AND ~ AGENCY'S TOWN CENTER
AREA REDEVELOPIVIENT PROJECT SUBORDINATE TAX ALLOCATION
BONDS, SERIES 1991
..... WHEREAS, the Tustin Comrg_u__.ni.'_ty. Redevelopment Agency (the "Agency") has
determined at this time, due to prevailing interest rates in the municipal bond market, to issue not
to exceed $21,000,000 aggregate principal amount of its Tustin Community Redevelopment
Agency (Town Center Area Redevelopment Project) Tax Allocation Refunding Bonds, 1998
Series A (the "Bonds"), under the provisions of Articles 10 and 11 of Chapter 3 of Part 1 of
Division 2 of Title 5 of the California Government Code, commencing with section 53570 of said
Code (the "Bond Law"), the principal of and interest on which will be payable from the tax
increment revenues from the Redevelopment Project, to refund (a) its Town Center Area
Redevelopment Project Tax Allocation Refunding Bonds, Series 1987, issued pursuant to
Resolution No. RDA 87-8, adopted by the Agency on August 3, 1987, in the aggregate principal
amount of $8,060,000, of which $5,145,000 remains outstanding (the "1987 Bonds"), and (b) its
Town Center Area Redevelopment Project Subordinate Tax Allocation Bonds, Series 1991, issued
pursuant to Resolution No. RDA 91-12, adopted by the Agency on July 15, 1991, in the aggregate
principal amount of $13,100,000, of which $12,880,000 remains outstanding (the "1991 Bonds"
and, with the 1987 Bonds, the "Prior Bonds"); and
WHEREAS, in accordance with the requirements of section 33640 of the CaLifornia Health
and Safety Code, the City Council (the "City Council") of the City of Tustin (the "City") wishes
at this time to approve the issuance and sale of the Bonds by the Agency;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, HEREBY RESOLVES AS FOLLOWS:
Section 1. Approval of the Bonds. The issuance and sale of the Bonds by the Agency in
the aggregate principal amount of not to exceed $21,000,000, be and is hereby approved.
Section 2. Ratification of Actions. All actions heretofore taken by any officer or agent
of the City with respect to the issuance or sale of the Bonds, or in connection with or related to
any of the agreements referenced herein are hereby approved, confirmed and ratified.
Section 3. Official Actions. The Mayor, the Vice Mayor, the City Attorney, the City
Clerk, any Assistant City Clerk and any other officers of the City are, and each of them acting
TUCTYRES.SP~q.R/258
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alone is, hereby authorized and directed, for and in the name and on behalf of the City to take such
actions, and to execute such documents and certificates, as may be necessary to accomplish the
issuance, sale and delivery of the Bonds by the Agency and to effectuate the purposes of this
Resolution and the purposes of the Bonds. The Major may designate the Vice Mayor, the City.
Manager or other appropriate officer the authority to-execute any of the agreements to be
executed by the Mayor pursuant to this Resolution. Any document authorized herein to be signed
by the City Clerk of the City may be signed by a duly appointed deputy city clerk.
Section 4. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 15th
day of June, 1998.
By
THOMAS R. SALTARELLI, MAYOR
ATTEST:
PAMELA STOKER, CITY CLERK
TUCTYRES.SA/LR/258