AgdaPkt 2012-12-03 - Laserfiche WebLink

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8.B. - Page 3 lowers the yield on the bonds. A preliminary sizing analysis, or sources and uses of funds and savings report, is attached to this report (Attachment 5). The following is a list of the agreements that will be executed by the City Manager or Finance Director in connection with the sale of these bonds: 1. Fiscal agent agreement 2. Escrow instructions 3. Continuing disclosure agreement 4. Bond purchase agreement This proposed refunding conforms with the City's Debt Management Policy (Administrative Policy No. 38). FUTURE ACTIONS No future action is required by the City Council. The bond sale is expected to take place after December 15, 2012, the closing occurring about two to three weeks thereafter, and the Prior Bonds to be redeemed on March 1, 2013. ALTERNATIVES The Council is under no obligation to adopt the resolutions before it tonight. If the Council declines to adopt the resolutions the Prior Bonds will remain outstanding and no savings will be realized. If refunding bonds are not sold, the annual administrative fee levied for fiscal year 2012- 13 will be sufficient to pay for all non-contingent costs incurred in connection with structuring the refunding. FISCAL IMPACT The City will continue to receive its annual administrative cost reimbursement under the new bond issue and will receive $30,000 as compensation for staff time and other expenses incurred in connection with this refunding. If the refunding bonds are sold at current interest rates the special taxes paid by property owners is expected to decline by 12%. In the event there are material tax delinquencies and the amount of special taxes collected is insufficient to pay debt service, the City could incur administrative expenses. The City is authorized under the Act to institute foreclosure proceedings to recover delinquent special taxes and to recover administrative expenses, interest and penalties from foreclosure proceeds. The District is currently on the "Teeter Plan" and the City receives 100% of the special taxes levied in the District. ENVIRONMENTAL REVIEW This is not a project under CEQA as defined in CEQA guidelines.