HomeMy WebLinkAboutR1- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: Barbara J. Lindseth Subject: DEBT SERVICE RESERVE
Acting Director FUND RESTRUCTURING
Date: May 4, 1995
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Synopsis of Previous Commission/Council/Committee Action(s):
On April 17, 1995, the Community Development Commission and Mayor and
Common Council continued this item until May 1, 1995.
On May 1, 1995, the Community Development Commission and Mayor and Common
Council approved the issuance of request for bids for the Debt Service
Fund Restructuring.
On May 4, 1995, the Redevelopment Committee recommended approval and
acceptance of the bids from National Westminster.
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Recommended Motion(s):
(Community Development Commission)
MOTION A: That the Community Development Commission approve the
restructuring of the staff designated Debt Service Reserve
Funds, accept from and award the bids to National
Westminster, and authorize the Acting Director to execute all
necessary documents.
(Mayor and Common Council)
MOTION B: That the Mayor and Common Council approve the restructuring
of the staff designated Debt Service Reserve Funds, accept
from and award the bid to National Westminster, and authorize
the Mayor to execute all necessary documents.
Administrator Barbara Lindseth,Acting Director
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Contact Person(s) : Tim Steinhaus/Barbara Lindseth Phone: 5081
Project Area(s) : All Ward(s): All
Supporting Data Attached: Staff Report
Funding Requirements: Amount: N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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BJL•2058A COMMISSION MEETING AGENDA
Meeting Date: 5/08/1995 eo(�'
Agenda Item Number: _
Economic Development Agency
Debt Service Reserve Fund Restructuring
Staff Report
Page - 2 -
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$12,215,000
San Bernardino Redevelopment Agency Southeast Industrial Revenue
Project Tax Allocation Bonds, Refunding Issue of 1988
Reserve Fund: $1,242,382
$15,890,000
San Bernardino Joint Powers Financing Authority Tax Allocation
Refunding Bonds, 1989 Series A ( State College Project No. 4)
Reserve Fund: $1,196,818
Miller & Schroeder Financial, Inc. , (who brought this proposed
restructure to the Agency) , has received bids from National
Westminster, Berkshire Hathaway and Nations Bank (see attachment) . The
highest bids were received from National Westminster for all of the
five (5) bond issues for a total present value payment of $2,812,816,
of which $482,605 would be the City's portion.
The provider has agreed to hold the bids until Thursday, May 4, 1995,
but the provider must begin putting their hedges into place to
guarantee their bid, which is why it is prudent to take action upon
this item as soon as possible. The bid is currently locked in at this
price, even though the market has since changed which would have
resulted in a $50,000 to a $100,000 decrease in present value to the
Agency.
As mentioned, Miller and Schroeder brought this proposed restructure to
the Agency and would be compensated 60 basis points of the total
outstanding Debt Service Reserve Funds ($6,260,847) for a total of
$37,565.08.
Based upon the foregoing, staff recommends adoption of the form motions.
Barbara J. Lindseth, Acting Director
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BJL:2058A COMMISSION MEETING AGENDA
Meeting Date: 5/08/1995
Agenda Item Number:
FROM MILLER SCHROEDER (WED1 U 5. 03' cls5 15:4,I ST, 15:48,10. 35600 7 11774 F 3
Trcasury Put Agreement
BJd&MMqCE
$22,800,000
San Rr,—ftardino joint powm Financim Autbority
Tax boa Lion FA-fUn&n-9 Bond
1991 Screir.A
(Central City raged Prc;jea)
V674,955 National.WeAmiOster
$550,000 BeAcshire Hathaway
$657,000 Nadons Bank
$12,215,OW
RDA of the City of San Bemardino
So indwbial Park
Tswe of 1988
$491,145 National Weslynimter
$375,000 Berkslire Hatbaway
$475,000 Nations Bank
$15,890,000
San Bernardino fcrwt Powers Financing Auftrity
Tax Allocation Rd"Wing 130-nd-8
1999 Series A
(StAte College Project No. 4)
$763,040 National Westminge-r
$690,000 Berksbire Hathaway
54750000 'Nations Bank
FRGM MILLER & SCHROEDER (WED) (15. 03' 95 15:49/ST. 15:4810. 3560670774 P 4
0
S10,215,000
San Be;-nardino Joint po- roars Financing Authority
Pablic.,Facilities use Revenue
Rd=ding Bond
1989 Series A
$482,605 National Westminster
$375,000 Bc&qhire Hathaway
$471,000 Nations Bank
$10,000,000
San Bamardino Joint Powers Financing Authority
Tax Allocation Bonds
Issue of 1994•
(pohm Stat;on Financing Ptojeu)
S4LOI.,071 T4ationat Westminster
No Bid BeTkshire Mthaway
$361,OW Nations Bank
Total winning Bids
6ox
SAN BERNARDINO As of 3/8/95
Reserve Fund Put Programs
Net Proceeds
$10,000,000
San Bernardino Joint Powers Finance Authority
Tax Allocation Bonds, Issue of 1996
(Police Station Financing Project)
Reserve Fund: $975,889 (Money Market)
Yield: 5.7962
Rated (FGIQ: "AAA"
Due: 9/1/2010
Estimated PV Payments: $475,000
$10,215,000
Public Facilities Lease Revenue
Refunding Bonds
1989 Series A
Reserve Fund: $984,758 (Money Market)
239,600 (T Notes Due 1/1/97)
Yield: 7.149
Due: 9/1/2013
Estimated PV Payments: $540,000
$22,800,000
San Bernardino Joint Powers Financing Authority
Tax Allocation Refund Bonds, 1991 Series A
(Central City Merged Project)
Reserve Fund: $1,861,000 (US T Note 5/31/96 @ 5.875)
Yield: 7.09
Rated:
"A_10
Due: 11/1/2020
PV Payments: $1,015,000
San Bernardino
Reserve Fund Put Programs
Net Proceeds (Page 2)
$12,215,000
San Bernardino Redevelopment Agency
Southeast Industrial Revenue Project
Tax Allocation Bonds
Refunding Issue of 1988
Reserve Fund: $1,242,382 (Money Market)
Yield: 7.475
Rated (AMBAQ: "AAA"
Due: 3/1/2014
PV Payments: $675,000
$15,890,000
San Bernardino Joint Powers Financing Authority
Tax Allocation Refunding Bonds, 1989 Series A
(State College Project No. 4)
Reserve Fund: $1,196,818 (Money Market)
384,000 (US Note due 1/1/96)
Yield: 7.14
Rated (AMBAQ: "AAA"
Due: 9/1/2008
PV Payments: $648,000
TOTAL: 53.353.000