PubFin 1998-02-09 PFA - Laserfiche WebLink

Browse Search

CHAIRPERSON DIANE HOWARD MINUTES VICE CHAIR RUSKIN COMMISSIONER RICHARD S. CLAIRE PUBLIC FINANCING AUTHORITY COMMISSIONER JIM HARTNETT CITY COUNCIL CHAMBER COMMISSIONER JEFF IRA 1017 MIDDLEFIELD ROAD COMMISSIONER MATT LEIPZIG REDWOOD CITY, CALIFORNIA COMMISSIONER IRA RUSKIN FEBRUARY 9,1998 CALL TO ORDER - 7:38 p.m., Chairperson Howard presiding ROLL CALL Commissioners present: Claire, Hartnett, Ira, Ruskin, Leipzig and Chairperson Howard Commissioners absent None Staff present: City Manager Everett, City Attorney Schricker, City Clerk Secretary Jorgenson, Director of Financial Planning and Finance Ponty, Financial Manager Somers 1. PUBLIC COMMENT None 2 GENERAL A. Consider authorizing the partial refunding of the Public Financing Authority 1991 Local Agency Revenue Bonds, Series A, and approving the Official Statement and the execution oflegal documents related to the issuance of 1998 Refunding Bonds. (505) REPORT: Director of Financial Planning and Finance Ponty, February 9,1998 Financial Services Manager Somers presented the staff report and said municipal bond interest rates had declined over the past year. She said, "it was now possible for the City to realize significant savings by refinancing our 1991 Series A Bonds." Manager Somers said the bonds had an average interest rate of 6.5% while municipal bond rates are now well below 5%. She said this practice was similar to a person refinancing his/her home to take advantage of lower mortgage interest rates. Manager Somers said the Redevelopment Agency recently did a similar refinancing for the Series B bonds. She said the proposal before the Authority "authorizes staff to refund the 1991 bonds and reissue new bonds when market interest rates reach levels that achieve total net present value savings of about $347,000 net of all costs of issuance." MINUTE BOOK NO. 56 Page No. 276