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File Number: 17-700 <br />This resolution authorizes the issuance of Refunding Bonds in an amount not to exceed <br />$23,000,000 and to execute the documents required to complete the financing transaction. <br />Resolution of the Oversight Board for the Successor Agency Approving Issuance of <br />Refunding Bonds - The resolution must be approved by the Oversight Board before approval is <br />then sought of the State Department of Finance for this refunding. <br />Bond Documents <br />The City Council acting as the Successor Agency Board must approve the following documents <br />to complete the Refunding Bonds transaction. <br />Indenture of Trust - This agreement is between the Successor Agency and U.S. Bank as <br />trustee, and sets forth the guidelines for the administration, investment and treatment of the <br />proceeds of the Refunding Bonds. <br />Irrevocable Refunding Instructions - These instructions direct U.S. Bank as trustee to <br />establish a Series 2008 refunding escrow with proceeds of the refunding bonds that will redeem <br />the 2008 TABs on the first optional call date on 9/1/18. <br />Bond Purchase Agreement - This agreement is between the Successor Agency and Raymond <br />James as underwriter by which the underwriter purchases the Refunding Bonds. The agreement <br />specifies the price and interest rates at which the underwriter will purchase the Refunding Bonds, <br />which will be determined on the pricing date, and the documents that will be executed at closing. <br />There is one more document, the Preliminary Official Statement that will be used to market the <br />Refunding Bonds and will be brought before the City Council serving as the Successor Agency <br />Board for review and approval closer to the pricing date. <br />Current City Council Policy <br />The City Council and Successor Agency Board must approve municipal debt issues that impact <br />their financial position. <br />City Council Committee Review and Action <br />The Finance Committee reviewed and approved this transaction on November 14, 2017. <br />Summary of Public Outreach Efforts <br />The meeting was properly noticed in accordance with California law. <br />Fiscal Impact <br />The par value of the Refunding Bonds will not exceed $23 million and they will mature in 2038, the <br />same as the issue being refunded. The Refunding Bonds are projected to have an all-in true <br />interest cost of about 2.90% in today’s market. Annual debt service savings on the Refunding <br />Bonds compared to the 2008 TABs being refunded are projected to be over $400,000 annually, <br />for total net present value savings of just over $4.5 million. These savings are just projected <br />Page 4 City of San Leandro Printed on 12/12/2017 <br />411