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City Council and Riverside <br /> [VER,SIPublic D Financing Authority <br /> City �1"Ar � �f�t �� Memorandum <br /> . <br /> TO: HONORABLE MAYOR, CITY COUNCIL DATE: JULY 24, 2012 <br /> AND BOARD OF DIRECTORS <br /> FROM: FINANCE DEPARTMENT ITEM NO: 7 <br /> WARDS: ALL <br /> SUBJECT: PUBLIC HEARING—ISSUANCE OF RIVERSIDE PUBLIC FINANCING AUTHORITY <br /> LEASE REVENUE BONDS IN ORDER TO REFUND THE 2003 CERTIFICATES OF <br /> PARTICIPATION - RESOLUTION <br /> ISSUE: <br /> The item for City Council and Riverside Public Financing Authority Board consideration are approval <br /> of resolutions that authorize the execution and delivery of the Authority's Lease Revenue Refunding <br /> Bonds, Series 2012A (the "Bonds"), in order to refund the City's outstanding 2003 Certificates of <br /> Participation (the "2003 COPs"), which will generate substantial savings for the City on an annual <br /> basis hereafter. <br /> RECOMMENDATIONS: <br /> That the City Council: <br /> 1. Conduct a Public Hearing to receive comments relative to the proposed refinancing <br /> transaction and make a finding of significant public benefits to the citizens of Riverside <br /> relating to the issuance of the Bonds by the Authority; and <br /> 2. Adopt the attached Resolution authorizing the issuance of the Bonds and authorize the <br /> Mayor, the City Manager, and the Finance Director to execute the documents and make <br /> certain changes as required to close the transaction. <br /> That the Riverside Public Financing Authority adopt the attached Resolution authorizing the <br /> issuance of the Bonds and authorize the Chairperson and the Treasurer to execute the documents <br /> and make certain changes as required to close the transaction. <br /> BACKGROUND: <br /> In 2003, the City issued $53 million of 2003 COPs to fund a series of municipal improvements. For <br /> the last nine years, scheduled debt service has been paid timely and the current balance <br /> outstanding is approximately $44 million with 21 years of debt service remaining. Because of the <br /> favorable interest rate environment, in which borrowing rates are at or near all-time lows, the <br /> opportunity to refund the original transaction and begin capturing savings has been identified. <br /> 7-1 <br />