12-13-2011 CC RPT 02 - Laserfiche WebLink

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City Council Memorandum TO: HONORABLE MAYOR AND CITY COUNCILDATE: December 13, 2011 FROM: CITY MANAGER - FINANCE ITEM NO: WARD: 4 & 5 SUBJECT: PUBLIC HEARING – AUTO CENTER ASSESSMENT DISTRICT – SALE AND ISSUANCE OF $4,190,000 OF LIMITED OBLIGATION REFUNDING IMPROVEMENT BONDS, SERIES 2011 - RESOLUTIONS ISSUE: The issue before the City Council is the issuance of up to $4,190,000 of limited obligation refunding improvement bonds to refund the balance of outstanding indebtedness from the Auto Center Assessment District’s (“Auto Center AD”) original 1999 bond issue. This debt is secured by assessment liens on the property within the Auto Center AD, but has been repaid from General Fund resources based on a tax sharing agreement with the Auto Dealers Association. The currently favorable interest rate environment will enable the original indebtedness to be refinanced with lower debt service payments, which will reduce the annually required payments, benefitting the General Fund based on the same tax sharing agreement. This report seeks the necessary approval to execute that transaction. RECOMMENDATIONS: That the City Council: 1 - Adopt the attached resolution declaring the City Council’s intention to refund outstanding bonds of the Auto Center AD and levy reassessments on the properties within the district. 2- Adopt the attached resolution approving and confirming the Engineer’s Report and Reassessment for refunding outstanding bonds of the Auto Center AD. 3 - Conduct a public hearing to receive comments regarding the proposed issuance of refunding bonds to refund the outstanding bonds of the Auto Center AD. 4 - Adopt the attached resolution authorizing the issuance and sale of refunding bonds for the Auto Center AD.