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11-19-2002 CC RPT 06
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2/4/2009 12:51:16 PM
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General - Type
City Council Reports
General 2 - Date
11/19/2002
Number
06
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11-19-2002 CC AGENDA
(Agenda)
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\City Council Agendas\2000-2009\2002
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People Serving <br />People <br /> <br /> CITY OF RIVERSIDE <br /> <br />AGENCY MEMORANDUM <br /> <br />Riverside <br /> <br />AIl*Am, edca City <br /> <br />1998 <br /> <br />HONORABLE MAYOR AND AGENCY MEMBERS <br /> <br />DATE: November 19, 2002 <br /> <br />ITEM NO: 6 <br /> <br />SUBJECT: APPOINTMENT OF FINANCING TEAMS FOR AGENCY BOND ISSUER <br /> <br />BACKGROUND: <br /> <br />Current Iow interest rates provide the opportunity for the Agency to realize significant savings on bond <br />refundings and new bond issues. Several project areas are candidates for refunding and/or receiving <br />additional bond funds for projects. Savings can be obtained by refunding the California Tower Lease <br />Revenue Bonds, 1994 Series A and B, Downtown/Airport Tax Allocation Bonds, 1993 Series A, and 1991 <br />Arlington Tax Allocation Bonds. The California Tower Lease Revenue Bonds would be a simple <br />refunding, with an estimated present value savings exceeding $2,000,000. It is estimated that refunding <br />the 1993 Downtown/Airport Series A Tax Allocation Bonds could generate an additional $5,700,000 in <br />new funds and refunding the 1991 Arlington Tax Allocation Bonds could yield an estimated $3,400,000 in <br />new bond funds. The Magnolia Center Project Area is generating enough tax increment revenue to issue <br />new bonds of approximately $2,600,000. <br /> <br />New funds generated are estimates only, as market conditions at the time of bond sale determine the <br />face value of the bonds. No projects have been identified for funding from new bond issues. Once <br />projects have been identified, the list of projects will be submitted to the Agency Board for approval prior <br />to bond issuance. <br /> <br />CURRENT ISSUE: <br /> <br />Practice for the City and the Agency, in all transactions, is that we select and appoint a financing team to <br />represent our interests. The Finance Department previously issued a request for proposal for bond <br />underwriters and has selected Stone and Youngberg as underwriter for the refunding of the 1994 Series <br />A and B Lease Revenue Bonds for California Tower and UBS PaineWebber as underwriter for the <br />refunding of the 1993 Series A Tax Allocation Bonds for the Downtown/Airport Merged Project Area, the <br />refunding of the 1991 Arlington Tax Allocation Bonds and the new issue for the Magnolia Center Project <br />Area. Agency General Counsel recommends the law firm of Best, Best and Krieger as bond counsel for <br />all these bond issues. <br /> <br />FISCAL IMPACT: <br /> <br />Costs of the bond sale are netted from the face amount of the bond. <br /> <br />ALTERNATIVES: <br /> <br />The Agency could choose not to issue refunding bonds and new bonds for the above project areas. <br />However, interest savings and new funds for projects would not be realized. <br /> <br />6-1 <br /> <br /> <br />
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