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CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
DATE: October 20, 1989
TO: MAYOR AND COMMON COUNCIL
FROM: Shauna Clark, City Clerk
SUBJECT: Priorities for expenditure of bond refinancing revenues
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The following is a list of priorities set forth by the Mayor and
Council at their meeting of October 18, 1989, for the expenditure
of bond refinancing revenue:
Mayor Holcomb listed the following as his priorities:
- The clean up the City in terms of removal of trash,
debris, abandoned vehicles, etc.
- The citywide enhancement of image through the upgrading of
major thoroughfares including the allocation of funds to
each ward to be used as directed by the Council Member of
that ward.
_ Major capital improvements in the downtown area including
the development of three parking structures and the possible
relocation of the Water Department facilities on "D" Street
_ Completion of the extension of Hallmark Avenue to Palm
Avenue
- A driving range for Shandin Hills Golf Course
- Removal of unsafe and dilapidated buildings on Mt. Vernon
Avenue
- A private
thoroughfares
sector
partnership
for
enhancing
all
_ Improvements to 40th Street from Electric to Kendall to
relieve the bottleneck and upgrade the image of the city.
_ Stabilization of older neighborhoods through code
enforcement and maintenance of thoroughfares
_ Acquisition of land for the Central City South project
area
- Beautification of the 215 corridor
_ Improvement to Arrowhead Avenue near Orange Show Road
2,
Priorities for bond refinancing
expenditures - October 20, 1989
The Council listed the follo~ing as their priorities
- A new police station (Council Member Estrada)
_ A program for addressing the homeless and gang problems
(Council Member Estrada)
_ Proper emergency response equipment (Council Members
Estrada, Miller)
_ Improvements to the city at the point where Fourth and
Fifth Streets converge (Council Member Estrada)
_ Additional police equipment including mobile data
terminals and 800 megahertz communications equipment
(Council Members Estrada, Flores, Maudsley, Minor, Miller)
_ Enhancement of the Main Street program (Council Member
Estrada)
_ Economic development and code enforcement along Base Line
including the Alpha Beta Shopping Center (Council Member
Reilly)
- A tree planting and replacement program (Council Members
Reilly, pope-Ludlam)
_ Assistance to the Department of Building and Safety for
the purpose of speeding up the non-reinforced masonry study
(Council Member Reilly)
- A mortgage pool or other financing strategy for affordable
housing (Council Member pope-Ludlam)
_ Purchase of the shoot/no-shoot simulator for the Police
Department (Council Member Miller)
- One stop shopping for building/development permits
(Council Member Miller)
_ Increased code enforcement personnel on two year contracts
(Council Members Miller, Maudsley)
- Cross training of code enforcement personnel throughout
the city departments and use of separate warning and
citation books (Mayor Holcomb)
_ Greater use of landscaping to reduce susceptibility of
structures to graffiti (Council Member Maudsley)
- Streetscaping throughout
Maudsley)
the
city
(Council
Member
- Filling of vacancies in Police Department
Members Minor, Mayor Holcomb)
(Council
SHAUNA CLARK, CITY CLERK
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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
8910-1906
TO: THE HONORABLE MAYOR AND COMMON COUNCIL
FROM: Marshall W. Julian, City Administrator
SUBJECT: BOND REFUNDING AND UTILIZATION OF REVENUES PRODUCED
FOR BUDGETARY PURPOSES
DATE: October 18, 1989
COPIES:
As you are aware, the 1989-90 Budget was adopted with certain
reservations....revenues were inadequate to fund many of the
Departmental requests, and were also insufficient to estab-
lish critically needed revenues for potential liabilities
(General Fund emergencies, Workers' Compensation, Self-
Insured Health Plans, and other back-up costs of government
having a low threshold of visibility) .
The following amounts are the best estimates available for
the additional financing expected from Bond refinancing.
These estimates were provided by Bond Counsel earlier this
week, and we have attempted to present the figures in a
fashion which relates them to expenditure categories.
The total amount of the refinancing which will be available
for City expenditures per se, is $11,830,835.
I
$6,438,654
will be available from Items A, B, C and
D, for expenditure for authorized use by
the city.
II
$4,747,181
will be available from Item E for
expenditure for public improvements
benefitting the State College area and
adjacent areas.
III
$ 645,000
will be available from Item F for any
General Fund purpose.
The following is a condensed version of Bond Counsel's report
(attached) as it relates to your deliberations on the Budget.
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INTEROFFICE MEMORANDUM: 8910-1906
BOND REFUNDING AND UTILIZATION OF REVENUES PRODUCED FOR
BUDGETARY PURPOSES
October 18, 1989
Page 2
Item
Amount
A
$2,258,654
140,000
B
$2,950,000
C
$ 600,000
D
$ 490,000
E
$4,747,181
F
$ 645,000
Source and Permitted Use
Tax Increment (state College)
May be used for any purpose permitted
by community Redevelopment law.
Tax-exempt CMOs
May be used for any governmental
purpose, City or RDA, as permitted by
Community Redevelopment law.
Sale of Residual from CMOs
May be used for any City or RDA
purpose permitted by Community Redev-
elopment law (preferably for housing-
related purposes) .
Mortgages not pledged to CMO obliga-
tions.
May be used in same manner as "C".
Tax Allocation Bonds - new money
Restricted to financing public im-
provements which directly or
indirectly benefit State College
Project Area. Funds should be spent
within 6 months, if possible.
General Fund savings due to refinan-
cing Library and Fire station Bonds.
May be used for any General Fund
purpose.
The following is proposed for your consideration in budgeting
the $11,830,835. Detail for the recommendations can be
provided in whatever forum you desire. It is not included at
this time, due to your direction that the meeting be held as
short as possible.
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INTEROFFICE MEMORANDUM: 8910-1906
BOND REFUNDING AND UTILIZATION OF REVENUES PRODUCED FOR
BUDGETARY PURPOSES
October 18, 1989
Page 3
CATEGORY 1....$6,438,654
$1,032,000
$1,000,000
$1,233,810
$1,090,000
240,000
$1,878,519
Workers' compensation & Health Insurance
Program
Project Area(s) Blight Reduction Program
Equipment Purchase/Replacement Program
Previously authorized:
Trustee/Abatement/Clean-up Program
Park Steamcleaner
Park Patrol
Building & Safety Uniforms
$95,000
1,200
82,500
4,000
Street Improvement Projects
Capital Projects previously identified
Various Projects, pending prioritization by
Mayor and Common Council
CATEGORY 11....$4,747,181
$1,000,000
$1,799,010
$1,948,081
upgrade and Beautification Program (RDA and
adjacent areas)
RDA-related Street Improvement
Capital Improvement Projects within Project
Areas
CATEGORY 111...$ 645,000
$ 232,945 6 Dispatchers $156,312
1 Dispatch supervisor 32,035
1 Typist Clerk III 23,070
1 Typist Clerk II (B&S) 21,528
TOTAL $232,945
$ 412,055 General Fund Reserve
It is proposed that you review and discuss the allocation of
funds outlined above and give such direction as may be
appropriate. with respect to the Blight Reduction Program
and Upgrade and Beautification Program you will want to see
th detail on these Programs, provided you wish to allocate
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INTEROFFICE MEMORANDUM: 8910-1906
BOND REFUNDING AND UTILIZATION OF REVENUES PRODUCED FOR
BUDGETARY PURPOSES
October 18, 1989
Page 4
the funds and direct staff to prepare these Programs for
final consideration.
You may also wish to schedule a budget session
Street expenditures and the individual items of
~~~;~
City Administrator
to review
equipment,
MWJjdjn
Attachment
.......
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(SIS) 704 - 01.95
~ (SIS) 704-.472.9
67 WALL STREET
NEW YORK. NY 1000S
(212) 820-g300
CITY PLACE
185 ASYLUM STREET
HARTF"ORO. CT 06103
(203) 275-6260
ONE GATEWAY CENTER
NEWARK. N.J 07102-5311
(201) 642-8584
MEMORANDUM
To:
Dennis Barlow, Esq.
From:
Deborah A. Thompson
Date:
October 13, 1989
Re: Outline of Certain Agency and Authority Bond Transactions for
September, 1989
A. $34,034,745 Redevelopment Agency of the City of San Bernardino, Taxable
Collateralized Mortgage Bonds, Series 1989-A
(1) Issuer: Redevelopment Agency of the City of San Bernardino
(2) Purpose Accomplished by the Issuance of the Bonds:
(a) The refunding of the outstanding principal amount of the
$41,280,000 City of San Bernardino, Single Family Mortgage Revenue
Bonds, 1980 Series A in an amount equal to $23,840,000; and
(b) the refunding of the outstanding principal amount of the
$34,765,000 Redevelopment Agency of the City of San Bernardino,
Single Family Mortgage Revenue Bonds, 1979 Series A in an amount
equal to $23,595,000 (collectively, the "Prior Bonds"). The transfer
of the City Loans to the Agency for purposes of the issuance of the
Bonds were made for the purpose of effecting the most economically
efficient manner of refunding the Prior Bonds.
. ..,SEI~Z ~C6.r...,
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(3) In addition, the following amounts will be realized by the Agency
within the months succeeding the date of issuance:
(a) an amount approximately equal to $500,000 to $700,000 from the
sale of certain residual interests in the pledged mortgage loan pool;
(b) an amount approximately equal to $470,000 to $500,000 from the
foreclosure, sale or liquidation of certain outstanding mortgages; and
(c) an amount approximately equal to $300,000 from the sale of the
servicing of the mortgage loans.
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B. $10,215,000 San Bernardino Joint Powers Financing Authority, Public
Facilities Lease Revenue Refunding Bonds, 1989 Series A
(1) Issuer: San Bernardino Joint Powers Financing Authority
(2) Purpose Accomplished by the Issuance of the Bonds:
<a) The refunding of the $3,200,000 Redevelopment Agency of the City
of San Bernardino, Public Facilities. Lease Revenue Bonds, Issue of
1981, Series A; and
(b) The refunding of the outstanding $6,790,000 Redevelopment Agency
of the City of San Bernardino, Public Facilities Lease Revenue Bonds,
Issue of 1983, Series A (collectively, the "Prior Bonds").
(3) Debt service savings and other costs realized by issuance of Bonds
and refinancing of Prior Bonds:
<a) Annual debt service savings were realized through the issuance
of the 1989 Bonds. The 1989 Bonds have a net interest rate of
7.218%, as compared to a net interest rate of 12.272% for the 1982
Bonds and a net interest rate of 9.269% for the 1983 Bonds
(b) A total net savings for fiscal year 1989-90 of approximately
$645,090 (calculated by taking into account the deposi t of accrued
interest upon closing,. anticipated interest earnings from invested
funds and determining the total amount of principal and interest due
with respect to the Prior Bonds for Fiscal Year 1989-90 ($906,800)
less the amount required to be paid with respect to the 1989 Bonds on
March 1, 1990 representing interest due and payable ($356,710)).
(4) Portion of bond proceeds used for refunding: a total amount equal to
$8,921,758.36;
(a) $2,719,656.52 used for refunding the 1982 Bonds; and
(b) $6,202,101.84 used for the 1983 Bonds.
(5) Portion of Bond proceeds used for financing of new construction,
improvements and acquisition: -0-
(6) Refunding produces Fiscal Year 89-90 City General Fund debt service
net expenditure benefit of approximately $645,000 to City
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C. $15,890,000 San Bernardino Joint Powers Financing Authority, Tax
Allocation Refunding Bonds, 1989 Series A (State College Project No.4)
(1) Issuer: San Bernardino Joint Powers Financing Authority
(2) Purpose Accomplished by the Issuance of the Bonds:
(a) to advance refund the outstanding principal amount of the
$5,100,000 Redevelopment Agency of the City of San Bernardino, State
College Project No.4, Tax Allocation Refunding Bonds, Issue of 1981,
Series A in a principal amount equal to $4,545,000;
(b) to advance refund the outstanding principal amount of the
$6,520,000 Redevelopment Agency of the City of San Bernardino, State
College Project No.4, Tax Allocation Refunding Bonds, Issue of 1983
in a principal amount equal to $6,110,000; and
(c) to loan certain amounts available from new Bond proceeds to the
Agency to finance certain new facilities and improvements within the
State College Project No. 4 of the Agency.
(d) to provide for the release of surplus tax increment revenues
previously accumulated by the Fiscal Agent for the following purposes:
(i) an amount approximately equal to $2,258,654.22 was released
by the fiscal agent for the Prior Bonds from amounts on deposi t
in the Special Funds representing surplus
(ii) an amount equal to $3,626,550.28 was deposited in the 1985
Certificate Fund and shall be used to redeem the Agency's
outstanding $3,800,000 1985 Certificates of Participation (Golf
Course Project) on November 1, 1989
(3) Annual debt service savings were realized by the issuance of the 1989
Bonds and refinancing of the Prior Bonds. The 1989 Bonds have a net interest
rate of 7.241%, as compared to a net interest rate of 9.803% for the 1981
Bonds and a net interest rate of 9.268% for the 1983 Bonds
(4) Portion of Bond proceeds used for refunding: $9,007,717.24
(5) Portion of Bond proceeds used for financing of new construction,
improvements and acquisition: $4,747,180.82
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D. $3,080,000 Redevelopment Agency of the City
Collateralized Mortgage Bonds, Series 1989-B
of
San Bernardino,
(1) Issuer: Redevelopment Agency of the City of San Bernardino
(2) Purpose Accomplished by the Issuance of the Bonds: To provide moneys
to the Agency/City to finance public improvement projects within the City
(3) Portion of Bond proceeds used for financing of new construction,
improvements and acquisition: approximately $2,950,000
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10/18/89 0930
DESCRIPTION OF AVAILABLE
CIIY/AGENCY 1989 FINANCING FUNDS
State Colle e Tax Increment Release of Sur
$2,258,654
$140,000""
available 10/2/&22
Tax increment revenues - may be used for any Co~unity
Redevelopment Law permitted purpo.. (e.i., land acquisition,
public improvements, rllocation, housinc, Aiency administration,
survey and planning, etc.); no bond issue re.trictions
$4.747.181
State Colle~e 1989 Tax Allocation Bonds - New ManlY Portion (available 10/2/89)
Tax-Ex.m t
$Z,950,OOO
New money 1989 Bond proceeds - may only be used .a permitted by
1986 federal tax law and re.tricted to public improvements;
invuted moneys are subject to rebate of excelS earn in,s to
federal iovernment if all Bond proceeds are not spent within six
months from date of issuance (October 2, 1989 to April 2, 1990);
no portion may "be used for private purpose.
(available a rox. 11/2/89)
New manly tax-exlmpt portion of Agency'. 1989 Slrle. B Bonds _
may only be u.ed AI permitted by 1986 federal tax law and
re.tricted to governmental purpose. and 10% portion may be used
for private purpo.e.; proceed. may b. u.ed for any Agency
purpo.. and for City purpoael as permitted by Community
Redevelopment Law and California law .
Sale of Relidual from Collateralized MortltaKe Obliaation. (available approx.
11/2/89 )
$500,000 to
$700,000
Agency .a1e of re.idual value of mortgage loan. pledged to
collateralized mortgaal obligation. after debt service is met on
Serle. A and Series B Bonds; Agency may use moneys for any
Agency or City purpou permitted by Community Redevelopl11ent Law
and California law; preferable that money' be used for some
hou.inl-related purpo.. (e.g., rehabilitacion program, rent
lublidy, loan or srant program, land acquisition, public
improvements benefitting residential housing, ecc.)
Value of Mortgale Loans Transferred to Altency/City and ~ot oledied to
Collatera1ized~~ort2aKe Obli~acions (available 10/89 to 2/90)
$470,000 to
$500,000
Eltimated value of mortgage loans that were either in defaul~ or
in foredo.ure and were not aasigned to Trustee under
collateralized mortgage obligation Trust Indentur@;pool
~ontains both Agency and City mortgage loans which may be used
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t:._-,.. ...~__ :..: ~,I_r_:"
by Ai8ncy or City for any purpo.e permitted by Community
Redevelopment Law and California law; preferable that moneys be
uled for some hauling-related purpose (e.g., rehabilitation
prOlram, rent subsidy, loan or grant program, land aCCfuisition,
public improvement. benefitting residential housini, etc.)
Fiscal Year 89-90 Debt Service Savin~i to City General Fund (available 9/27/89)
$645,000
General Fund saving. to City as a result of refunding of
Aiency I. Fire Station and Library Bondi; refunding eliminated
nec...ity of City to make three interest payment. and two
principal payments on refunded bond, and in.tead, City will make
one interest payment in March, 1990, which will b. decreased by
(1) amount of accrued interest received on closing; and
(2) interest earnings on funds inve.ted by bond tru.tee; amount
of saving. may be expended on any lelal City General Fund
expenditure
$11,710,635
IOTAl
l'f This amount will be rlleaud at additional
cash upon the substitution of certain ..curiti$s
on deposit in the elcrow fund for the prior
bonda.
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