HomeMy WebLinkAboutNB 1 WATER BONDS RPT 02-16-93NEW BUSINESS N0. 1
2-16-93
AGENDA
ITE: FEBRUARY 111 . 19 9 3 i1 t e C - C O m
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: RONALD A. VAULT, DIRECTOR OF FINANCE
SUBJECT: CITY OF TUSTIN WATER BONDS - PROGRESS REPORT
RECOMMENDATION:
Receive and file.
DISCUSSION:
City staff has been proceeding with the preparation of the
documents necessary to issue debt as approved by the City Council
when they adopted the financing Plan and Rate Structure last fall.
As of this date, staff has determined the issue will be
$11,500,000; $3,860,000 of which will be used to advance refund the
1983 lease Revenue Bonds and $6,730,000 will be deposited in the
Water Construction Fund to complete the first phase capital
improvements. The balance of proceeds will cover the cost of
issuance and the necessary reserve deposits.
Documents have been prepared for an Installment Purchase Agreement
between the City of Tustin Water Corporation, a non-profit
corporation and the City. The non-profit corporation will be
,issuing Certificates of Participation to provide the reserves to
complete the projects.
While we are prepared to bring these preliminary documents to the
City Council for their consideration and approval, the issue of
variable rate vs fixed rate debt should be fully explored before we
get further into the process. Lora Stovall from Bartle Wells and
Associates will be available Tuesday evening, February 16, to
discuss the pros and cons of this issue.
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Rona d A. Nault
Director of Finance
RAN: 1s
a:progress.rpt