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Home My WebLink AboutRS3-Economic Development . . ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: Barbara J. Lindseth Acting Director Subject: CENTRAL CITY NORTH REFUNDING BOND ISSUE Date: May 31, 1995 ------------------------------------------------------------------------------- SYnopsis of Previous Commission/Council/Committee Action(s): On November 15, 1982, the Community Development Commission adopted Resolution 4413 authorizing the issuance of $6,300,000 Central City North Tax Allocation Bonds. (Synopsis Continued on Page 2) ------------------------------------------------------------------------------- Recommended Motion(s): (Mavor and Common Council) MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED $8,000,000 SAN BERNARDINO JOINT POWERS AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1995 (CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA) AND THE BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT (Recommended Motions Continued on Page 2) 1rs, Administrator /) ,; ,'--- ;;. rL (,'QH'.ry~/ '7cl..i-c / Barbara J. Lindseth Acting Director Contact Person(s): Tim Steinhaus/Barbara Lindseth Phone: 5081 Project Area(s): Central Citv North (CCN) Ward(s): First Supporting Data Attached: Staff Report: Resolutions: Documents (on file) Funding Requirements: Amount: N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------- BJL:2068A F,53A f,5::/ C KfS q{l' - /'if3 !<eb J -<.}.,1 COMMISSION MEETING AGENDA Meeting Date: 6/05/1995 Agenda Item Number: 1<S'" 3 . . Synopsis of Previous Commission/Council/Committee Action(s) Continued On February 15, 1988, the Mayor and Common Council and Community Development Commission authorized the issuance of a not-to-exceed $7,400,000, Central City North Tax Allocation Refunding 1988 Bond Issue, and the issuance of $3,500,000, Central City North, Tax Allocation Bonds Issue of 1988. On May 4, 1995, the Redevelopment Committee recommended approval of the refunding and consolidation of the 1988 Central City North Bond Issues. MOTION B: MOTION C: BJL:2068A Recommended Motions Continued (Communitv Development Commission) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE BORROWING OF FUNDS FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN THE TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $8,000,000 TO REFUND CERTAIN OUTSTANDING TAX ALLOCATION BONDS (CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA), AUTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF THE FORMS THEREOF (Joint Powers Financin~ Authoritv) RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $8,000,000 SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1995 (CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA), APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. COMMISSION MEETING AGENDA Meeting Date: 6/05/1995 Agenda Item Number: 1<..5....3 . . ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT Central City North Refundin~ Bond In 1988 two (2) bond issues for the Central City North Redevelopment Project Area were approved by the Mayor and Common Council and the Community Development Commission. These issues were as follows: Central City North Tax Allocation Bonds Issue of 1988 $3,500,000 6.625% to 7.8% Due March 1, 2009 - New Issue Approximate Annual Debt Service - $317,000 Current Principal Balance - $2,725,000 Central City North Tax Allocation Bonds Issue of 1988 $6,870,000 6.0% to 7.3% Due March 1, 2007 - Refunding Issue Approximate Annual Debt Service - $660,000 Current Principal Balance - $5,200,000 Current debt service on both of these issues is approximately $977,000 annually, while tax increment revenues are approximately $780,000 per year after low-moderate set-aside. Each year, there is an excess of debt service over tax increment revenues by the amount of $197,000, which must be covered from Agency funds on hand. If both of the 1988 bond issues are combined and refunded, the total principal balance will be not-to-exceed $8,000,000, and annual debt service will be reduced to approximately $567,000, by extending the maturity to March 2023. Because of AB 1290, the maturity dates of the bonds may be extended until the year 2023, instead of maturity in the year 2009, and debt may be incurred only until the year 2002. With the recent devaluing of assessed property values, this may be the last opportunity for the Agency to refund bonds or issue new debt in this project area before the year 2002. This refunding will positively assist the Agency's yearly cash flow by the approximate amount of $410,000, and the extension of the bonds until the year 2023 will allow the Agency to continue to receive tax increment until that date (the Agency must be in debt to continue to receive tax increment). Also, there is $2,000,000 of surplus tax increment that is currently held by the trustee, Bank of America, which can only be released to the Agency if the Agency can provide proof of adequate debt service coverage through the annual tax increment received in the Central City North Redevelopment Project Area. The Agency cannot provide such ------------------------------------------------------------------------------- BJL:2068A COMMISSION MEETING AGENDA Meeting Date: 6/05/1995 Agenda Item Number: 1<5,3> . . Economic Development Agency Central City North Refunding Bond Staff Report Page - 2 - proof of coverage under the current debt service structure. By refunding these two (2) bond issues, of the $2,000,000 surplus, $1,100,000 can be release to the Agency for projects or for cash flow and $900,000 will be used to reduce the principal amount of the proposed refunding bond. Based upon the foregoing, staff recommends adoption of the form motion. 1 , / . .<' C" ;; 1- )la, (;OAC; . / --_,' "Ie _)< I. Barbara J. Lindseth, Acting Director ------------------------------------------------------------------------------- BJL:2068A COMMISSION MEETING AGENDA Meeting Date: 6/05/1995 Agenda Item Number: ~'5 "" 'J:, . " . REDEVELOPMENT AGENCY OF TNE CITY OF SAN BERNARDINO CENTRAL CITY NORTN REDEVELOPMENT PROJECT AREA TAll ALLOCATION REFIJIOING BONOS ISSUE OF 1995 (COMBINEDl SOURCES AND USES Dated 5/01/1995 Delivery 5/01/1995 Par AInol.Ilt of Bonds............................... Transfers from Prior Issue DSR Funds.............. Clsh Contribution................... .......0.. .... Total Sources Total Underwriter.s Discount (1.250%)............. Costs of Issuance................................. Gross Bond Insurance Premium...................... Deposit to Debt Service Reserve Fund CDSRF)....... Deposit to Escrow F..m............................ Contingency................ ................. ...... Total Uses $7,735,000.00 980,000.00 900,000.00 $9,615,000.00 $96,687.50 100,000.00 126,470.41 567,100.00 8,720,000.00 4,742.09 $9,615,000.00 Miller & Schroeder Financial, Inc. Plbl ic Finance FILE = SBCCN95 51 2/1995 12,25 PM 'R~ ~ 3 . . , REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TAX ALLOCATION REFUNDING BOII)S ISSUE OF 1995 (COMBINED) DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPOI INTEREST DEBT SERVla 3/01/1996 195,000.00 4.50000% 371,347.92 566,347.92 3/01/1997 130,000.00 4.75000% 436,842.50 566,842.50 3/01/1_ 135,000.00 4.9ODOO% 430,667.50 565,667.50 3/01/1999 140,000.00 5.00000% 424,052.50 564,052.50 3/01/2000 145,000.00 5.10000% 417,052.50 562,052.50 3/01/2001 155,000.00 5.20000% 409,657.50 564,657.50 3/01/2002 165,000.00 5.30000% 401,597.50 566,597.50 3/01/2003 170,000.00 5.40000% 392,852.50 562,852.50 3/01/2004 180,000.00 5.50000% 383,672.50 563,672.50 3/01/2005 190,000.00 5.55000% 373,m.50 563,m.50 3/01/2006 200,000.00 5.60000% 363,227.50 563,227.50 3/01/2007 215,000.00 5.65000% 352,027.50 567,027.50 3/01/2008 225,000.00 5.70000% 339,880.00 564,880.00 3/01/2009 240,000.00 5.75000% 327,055.00 567,055.00 3/01/2010 250,000.00 5._ 313,255.00 563,255.00 3/01/201 I 265,000.00 5.90000% 298,505.00 563,505.00 3/01/2012 280,000.00 5.90000% 282,870.00 562,870.00 3/01/2013 300,000.00 5.9ODOO% 266,350.00 566,350.00 3/01/2014 315,000.00 5.90000% 248,650.00 563,650.00 3/0112015 335,000.00 5.9OOOOX 230,065.00 565,065.00 3/01/2016 355,000.00 6.00000% 210,300.00 565,300.00 3/01/2017 375,000.00 6.00000% 189,000.00 564,000.00 3/01/2018 400,000.00 6.00000% 166,500.00 566,500.00 3/01/2019 420,000.00 6.DOOOOX 142,500.00 562,500.00 3/01/2020 445,000.00 6.00000% 117,300.00 562,300.00 3/01/2021 475,000.00 6.00000% 90,600.00 565,600.00 3/01/2022 500,000.00 6.00000% 62,100.00 562,100.00 3/01/2023 535,000.00 6.00000% 32,100.00 567,100.00 TOTAL 7,735,000.00 8,073,800.42 15,808,800.42 Miller & Schroeder Financial, Inc. FILE . SBCCN95 Public finance 5/ 2/1995 12:25 PM YIELD STATISTICS Accrued Interest from 05/01/1995 to 05/01/1995... Average Life...................................... Bord Years... ... .....0 0........................... Average C~... ..... ... ......................0.. FOMD 8038 Weighted NIC............................ Fona 8038 ~eighted Average Maturity............... 17.668 YEARS 136,660.83 5.9079110% 5.9786610% 17.668 YEARS 5.9786610% 6.04407211 6.0055818% 6.13576541 Net Interest Cost (NIC)........................... Bond Yield for Arbitrage Purposes................. True Interest Cost (TIC).......................... Effective Interest Cost (EIC)..................... 'R~ /~