Loading...
HomeMy WebLinkAboutStaff Report 4.B 09/12/2005CITY OF PETALUMA, CALIFORNIA to AGENDA BILLc were �.•2oa5 Agenda Title: Resolution Authorizing the Issuance by the Petaluma "1�%��fe`Dh{e'. Community Development Commission of Not to Exceed $20 September 12, 2005 Million in Refunding Tax Allocation Bonds for the purpose of Financing and Refinancing Certain Public Improvements Meeting Time: © 3:00 PM ❑ 7:00 PM Category (check one): ❑ Consent Calendar ❑ Public Hearing Z New Business ❑ Unfinished Business Department: Admin Services Cost of Proposal: N/A Amount Budgeted: ❑ Presentation Director: St e Carmichael 7 Attachments to Agenda Packet Item: Contact Person: Phone Number: Steven Carmichael 778-4352 Account Number: Name of Fund: Agenda Report Resolution Approving Issuance of PCDC Refunding Tax Allocation Bonds Summary Statement: In 2000, the City Redevelopment Agency issued the 2000A Tax Allocation Bonds. These bonds are currently eligible to be refunded. With current rates, the refunding should save in excess of $900,000 on the current costs of the existing 2000A Bonds. Recommended City Council Action/Suggested Motion: Approve Resolution Approving Issuance of PCDC Refunding Tax Allocation Bonds, Fourth Supplemental Indenture with J.P. Morgan Trust Company, as Successor Trustee, and Appendix A — Form of Bond which authorizes the Agency to sell Refunding Tax Allocation Bonds not to exceed $20 million. DR/eeviiewed by Ad min. Svcs. Dir: `f' tlk Today''sr•D-atte:: Reviewed by City Attorney: Date: Revision # and Date Revised: Anpr ved by City Manager: F Date: File Code: CITY OF PETALUMA, CALIFORNIA SEPTEMBER 12, 2005 (Date of Meeting) AGENDA REPORT FOR Resolution Authorizing the Issuance by the Petaluma Community Development Commission of Not to Exceed $20 Million in Refunding Tax Allocation Bonds for the purpose of Financing and Refinancing Certain Public Improvements Name of Project — Use Same Language as Found for the Agenda Title on the Agenda Bill) ExECUTIVE SUMMARY: The 2000A PCDC Bonds can be refunded to save in excess of $900,000 in today's bond market. 2. BACKGROUND: The PCDC issues bonds using tax increment as pledge of revenues to repay bonds. These bond proceeds are then used to build capital projects in the redevelopment agency. 3. ALTERNATIVES: Do not sell the refunding bonds and lose opportunity to save $900,000. 4. FINANCIAL IMPACTS: Selling the bonds saves the PCDC roughly $900,000. CONCLUSION: By selling bonds, PCDC can maximize the use of its tax increment monies to do capital projects. 6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION: 7. RECOMMENDATION: Approve resolutions to authorize sale of refunding tax allocation bonds. 5:/agenda/9-12-05 C of P and PCDC refunding TAB's Resolution No. 2005 - of the City of Petaluma, California A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING THE ISSUANCE BY THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION OF NOT TO EXCEED $20,400,040 IN REFUNDING TAX ALLOCATION BONDS FOR THE PURPOSE OF FINANCING AND REFINANCING CERTAIN PUBLIC IMPROVEMENTS WHEREAS, the Petaluma Community Development Commission (the "Commission") is authorized pursuant to Part 1 of Division 24 (commencing with Section 33000) of the California Health and Safety Code (the "Law") to issue bonds for any of its corporate purposes; and WHEREAS, Article 11 of Chapter 3 of Division 2 of Title 5 of the Government Code of the State of California authorizes and empowers the Commission to issue bonds to refund bonds (the "Refunding Law"); and WHEREAS, in order to refinance a portion of the Commission's Petaluma Community Development Project Tax Allocation Bonds, Series 2000A (the "Prior Bonds"), the Connmission has indicated its intention to issue not to exceed $20,000,000 aggregate principal amount of Petaluma Community Development Project Refunding Tax Allocation Bonds, Series 2005A (the `Bonds"); and WHEREAS, pursuant to the Law, the City Council also must authorize the issuance of the Bonds by the Commission; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: SECTION I. Anoroval of Financine. This City Council hereby approves the refinancing of the Prior Bonds and the costs related thereto, by means of the issuance of not to exceed $20,000,000 aggregate principal amount of the Bonds, pursuant to the provisions and subject to the requirements of fire Law and the Refunding Law. This approval is intended to satisfy the requirements of Health and Safety Code Section 33640. DOCSSF1:829305,4 adoption. SECTION 2. Effective Date. This Resolution shall take effect immediately upon Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution Approved as to was introduced and adopted by the form Council of the City of Petaluma at a (Regular) meeting on the 12th day of September, 2005 by the following Vote: City Attorney AYES: NOES: ABSENT: ATTEST: City Clerk DOCSSPI:829305.4 Mayor