City Council
MEETING DATE: 6/22/2015
TITLE:
Title
Resolutions to Complete the Issuance of Local Agency Revenue Bonds
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the attached resolutions and corresponding documentation in their substantial form, which authorize the issuance of Cathedral City Public Finance Authority Local Agency Revenue Bonds, 2015 Series A, allowing the redemption but not the cancellation of certain outstanding assessment district bonds, the redemption of the 2004 Series A Cathedral City Public Financing Authority Local Agency Revenue Bonds, the sale of the Local Obligations to the Cathedral City Public Financing Authority and the purchase of certain outstanding assessment district bonds of the City of Cathedral City.
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BACKGROUND:
The Local Obligations were issued by the City of Cathedral City (the "City") for the purpose of financing certain public improvements in the various assessment districts located within the City (the "Assessment Districts"). The debt service on the Local Obligations is payable from special assessments levied on property located within the respective Assessment Districts.
The Authority issued prior Authority Bonds, 2004 Series A, to acquire certain assessment district bonds of the City that were issued for the purpose of financing or refinancing improvement projects in the City (the "Authority Owned Local Obligations"). The debt service on the Local Obligations and the Authority Owned Local Obligations is payable from special assessments levied on property located within the respective Assessment Districts.
DISCUSSION:
The municipal bond market will currently allow for the City to achieve debt service savings by redeeming but not cancelling the Local Obligations, and thereafter selling the Local Obligations to the Cathedral City Public Financing Authority (the "Authority"). In addit...
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