HomeMy WebLinkAboutNew Business #1 5-4-87TO: Will~m Huston, City Manager
FROM: Ro~~Igd~~*nance~ Director
SUBJEGT: Redemption Procedures for the Outstanding City of Tustin
1971 Park Bonds
Recommendati on
The council through minute action authorize the redemption of the 1971
Park Bonds maturing April 1, 1988 and thereafter to be redeemed on
October 1, 1987. Staff is directed to follow the procedures for
redemption as described in ordinance 520 which authorized the issuance of
said Bonds. Staff is further directed to establish a City of Tustin 1971
Park Bonds Redemption Fund and to transfer all available resources of the
existing Park Bond Fund, as of 6-30-87, into the Redemption Fund.
Discussion
The council has expressed a desire to redeem the outstanding 1971 Park
Bonds at the earliest time that adequate resources would~be available.
It is anticipated that as of 6-30-87 there will be approximately $390,000
in the Park Bond Fund. The estimated cost of redemption is $370,000,
which includes outstanding principal, accured interest and redemption
premiums. There will also be miscellanous costs such as publication in
the Wall Street Journal and additional expenses incurred by our paying
agent. It is anticipated that sufficient resources will be available as
of 6-30-87 to redeem the bonds and cover any additional administration
expenses.
In accordance with the redemption procedures outlined in Ordinance 520,
notice of redemption will be provided in a financial newspaper of
national circulation, at least thirty days but not more than sixty days
prior to the redemption date. Interest on the outstanding bonds will
cease as of the redemption date. We will pay the outstanding principal
as of October 1, 1987, accrued interest from April to October 1987 and a
two percent premium for redemption of outstanding principal prior to
maturity.
,, J