HomeMy WebLinkAboutNB 4 REDEMPTION BONDS 3-21-88DATE: MARCH 15, 1988 ~ I
TO:
FROM:
SUBJECT:
WILL~)A. HUSTON, CITY MANAGER '
RONAL~NA~, DIRECTOR OF FINANCE
REDEMPTION OF OUTSTANDING TWW BONDS PAYABLE
AT 8.0 PERCENT DUE TO MATURE MARCH 23, 1991.
RECOMMENDATION:
That the City Council direct the Finance Director to call
$300,000 of the Tustin Water Works Bonds payable at 8.0 percent
and scheduled for maturity March 23, 1991. The redemption'is to
be effective September 31, 1988. The Finance Director is
further directed to call for a meeting of the City of Tustin
Water Corporation to approve this action prior to sending the
Notice of Redemption.
DISCUSSION:
At the March 7 City Council meeting, staff was directed to
agendize the redemption of the 1991 TWW Bonds for the meeting of
March 21. Based on present fund balance projection of the Debt
Surcharge Fund, there will be adequate funds available to
complete this redemption. Written Notice of Intent to redeem the
bonds will be sent by registered mail to all bond holders a
minimum of 10 days prior to a quarterly interest payment date.
Estimated savings as a result of this action is $60,000 in
interest expense.
RAN:is