HomeMy WebLinkAboutNB 3 WTR LEASE BONDS 03-02-87DATE: MARCH 2, 1987 Inter- Corn
TO:
FROM:
SU BJ ECT:
HONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL
WILLIAM A. HUSTON, CITY MANAGER
REFINANCING OF WATER LEASE-REVENUE BONDS
RECOMMENDATION
That the City Council authorize staff to proceed with the steps required to
refinance all or a portion of the City's outstanding lease-revenue water
bonds if financially feasible.
DISCUSSION
In 1983 the City, through its non-profit Water Corporation, issued $4.5
million in lease-revenue bonds for the purpose of financing the balance of
the acquisition price of the Tustin Water Works.
Based on current market conditions, it appears the City would save
up to $100,000 in interest costs by refinancing the bonds. Due to the
complexity of the method of refinancing the bonds, staff needs additional
time to evaluate the cost-benefit of a refinancing and to bring the matter to
the Board of Directors of the Water Corporation.
At this point the City Council would be authorizing staff, the City's
financial advisor and bond counsel to proceed with the steps required to
assess the feasibility of a refinancing. We anticipate that the City
Council could make a final decision on a refinancing within the next 60 days.
William A. Huston
City Manager
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