HomeMy WebLinkAbout01a REFINANCE BONDS 11-20-95DATE:
NOVEMBER 20, 1995
TO:
FROM:
SUBJECT:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
WILLIAM A. HUSTON, CITY MANAGER
REFINANCING OF TUSTINRANCH ASSESSMENT DISTRICT BONDS (AD
85-1 AND AD 86-2)
The City Council previously authorized staff to proceed with
refinancing of the outstandingassessment district bonds. Property
owners will benefit by lower future annual assessments due to lower
interest rates on the bonds and using accrued construction cost
savings to redeem outstanding bonds.
In authorizing the transaction to proceed, the City Council
approved creation of the Tustin Public Financing Authority as the
entity to effectuate the refinancing. The City Council approved
creation of the Authority because from legal and financial
standpoints, it was the most cost-effective way to maximize. the
benefits of the refinancing.
On November 20, 1995, the City Council will approve various
resolutions and documents which authorize sale of the bonds. The
City Council will also convene as the Board of Directors of the
Tustin Public Financing Authority to grant its authorizations.
Because of the volume of the various documents, they are being
transmitted under separate cover.
The City's financial consultants and special legal counsel will be
at the meeting to explain the transaction. The consultants and
staff will be prepared to provide information on:
le
The typical savings to property owners within the
assessment districts.
2. When property owners will realize the savings.
t
Inter-Com
DATE:
NOVEMBER 15, 1995
TO:
FROU:
SUBJECT:
WILLIAM~S,TON, CITY MANAGER
RONALD ~IN/~CE DIRECTOR
TUSTIN PUBLIC FINANCING AUTHORITY BOND ISSUE IN sUpPORT OF THE
ASSESSMENT DISTRICT 85-1 AND 86-2 REFUNDINGS
RECOMMENDATION
Adopt resolution of Issuance No. TPFA 95-1;
a. Indenture;
b. Bond Purchase Agreement (City/Authority);
c. Bond Purchase Agreement (Authority);
d. Preliminary Official Statement for Authority Bonds.
Discussion
The Tustin Public Financing Authority was created by the city to
provide an efficient vehicle to purchase bonds issued by the City
or the Redevelopment Agency. The authority is a Joint Powers
Authority (JPA) made up of the City and the Redevelopment Agency.
The authority will be issuing their own bonds and the proceeds will
be used to purchase the Assessment District refunding bonds secured
by the new Assessment District 95-1.
The City/Authority Consultants will be available at the meeting to
clarify issues and answer questions as may be necessary.
a:agenda.2