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C I T Y
OF SAN BERNARDINO
IN'tEROFPICE HEHORANDUH
DATE: October 20, 1989
TO: KAYOR AND COHHON 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 "0" 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
- Improvements to 40th Street from Electric to Kendall to
relieve the bottleneck and upgrade the image of the city.
sector partnership
for enhancing all
- 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
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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
( Counc i I Member
-Filling of vacancies in Police Department (Council
Members Minor, Mayor Holcomb)
SHAUNA CLARK, CITY CLERK
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C I T Y
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o 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:
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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 th~eshold of visibility).
The following amounts are the best estimates available for
the additional financing expected from Bond refinancing.
These estimates were provided by Borid 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
o
$ 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 "Cu.
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 I....$6,438,654
$1,032,000 Workers' Compensation & Health Insurance
Program
~ra;/d /CJ~~
$1,000,oo6~ Project Area(s) Blight Reduction Program
$1,233,810
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
$1,090,000
Street Improvement Projects
240,000
$1,878,519
Capital Projects previously identified
Various Projects, pending prioritization by
Mayor and Common Council
CATEGORY II.... ~~L:747, 181
tP/?r();/ed /o/q~
$1,000,000 Upgrade and Beautification Program (RDA and
adjacent areas)
RDA-related street Improvement
Capital Improvement Projects within Project
Areas
$1,799,010
$1,948,081
CATEGORY III...$ 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
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MARSHALL W. ULIAN
City Administrator
to review
equipment,
MWJ/djn
Attachment
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e7 WA~~ STREET
NEW YORK. Ny IOOO!5
(elitl ezO-83OQ
CITY PLACE
185 ASY~UM STREET
I-lART"OlllC, CT oel03
(Z03I 275-eaeo
ONE GATEWAY CE:NTER
NEWARK. N.J 07102-5.311
(ZOIl _2-85_
MEMOR.UJ)UM
To:
Dennis Barlow, Esq.
From:
Deborah A. Thompson
Date:
October 13, 1989
Re: Outline of Certain Aaency 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 ref\D1ding of the outstanding principal amount of the
$41, 2aO, 000 Ci ty 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 ref\D1ding the Prior Bonds.
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(3) In addition, the followina amounts will be realized by the Agency
within the montha aucceedins the date of iaauance:
(a) an amount approximately equal to $500,00.0 to $700,000 from the
aale of certain residual intereats 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 outstandins mortgages; and
(c) an amount approximately equal to $300,000 from the sale of the
servicina of the mortgace loans.
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B. $10,215,000 San Bernardino Joint Powers Financing Authority, Public
Faci1itie. L.... Revenue Refunding Bond., 1989 Series A
(1) I.suer: San Bernardino Joint Powers Financing Authority
(2) Purpos. Accomplished by the Issuance of the Bonds:
(a) The refunding of the $3,200,000 Redevelopment Agency of the City
of San Bernardino, Public F.cuities', Le.se Revenue Bonds, Issue of
1981, Series A; and
(b) The refunding of the out.tanding $6,790,000 Redevelopment Alency
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 co.ts realized by issuance of Bonds
and refinancing of Prior Bond.:
(.) ADDua1 debt service ..ving. were re.lized throulh the issuance
of the 1989 Bonds. The 1989 Bond. have . net interest rate of
7.218X, .. comp.red to . net intere.t r.te of 12.272X for the 1982
Bond. and a net interest r.te of 9.269X for the 1983 Bonds
(b) A total net s.vings for fisc.l 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 re.pect to the Prior Bond. for Fiscal Year 1989-90 ($906,800)
1e.s 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 proceed. u.ed for refunding: a total amount equal,to
$8,921,758.36;
(a) $2,719,656.52 u.ed for refunding the 1982 Bonds; and
(b) $6,202,101.84 u.ed 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 Powera Financing Authority, Tax
Allocation Refundina 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 BQnds:
(a) to advance refund the outstandina principal amount of the
$5,100,000 R.development Alency of the City of San Bernardino, State
Colle.. Project Bo. 4, rax Alloc.tion R.fundina 8onds, Issue of 1981,
S.ries A in a principal amount equ.l to $4,545,000;
(b) to advance refund the outstandina princip.l amount of the
$6,520,000 Redevelopment Alency of the City of San Bernardino, State
Collele Project Bo. 4, rax Alloc.tion Refundina Bonds, Iasue of 1983
in a principal amount equ.l to $6,110,000; and
(c) to loan certain amount. .v.il.ble from new Bond proceeds to the
Alency to finance certain n.w f.cilities and improvements within the
State Collele Project Bo. 4 of the Agency.
(el) to provide for the r.l.... of .urplus tax increaent revenue a
previou.ly accumul.ted by the Fi.c.l Alent for the followina purpoeea:
(i) an amount .pproztmAtely .qu.l to $2,258,654.22 w.s released
by the fiscal a.ent for the Prior Bonds from amounts on deposit
in the Special Funds representina surplus .
(ii) an amount equ.l to $3,626,550.28 wae ,deposited in the 1985
Certificate Fund and shall be us.d to redeem the Aiency's
outstanding $3,800,000 1985 Certificates of Participation (Golf
Course Project) on Bovember 1, 1989
(3) Annual debt service saVings w.re realized by the issuance of the 1989
Bonds and refinancina of the Prior Bonds. rhe 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,
improvemente and acquisition: $4,747,180.82
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D. $3,080,000 Redevelopment Aaency of the City of San Bernardino,
Collateralized Mortgage Bonds, Series 1989-B
(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 proceed. u.ed for financina of new construction,
improvement. and acquisition: approz1aately $2,950,000
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10/18/89 0930
DESCRIPTION OF AVAILABLE
CITY/AGENCY 1989 FINANCING FUNDS
Stat. ColleR. Tax Increment R.lea.e of Surplu. (available 1012/~
$2,2..58,654
$140,000'-
!ex increment revenue. - may be u.ed for any Community
a.development Law permitted purpo.e (e.I., land Acqui.ition.
public improvement., rllocation, houain., Aleney administration,
.urveyand plannin., etc.), no bond i..ue re.trietion.
Stat. Colle.. 1989 Tax Alloc.tion Banda - New Money Portion (available 10/2/89)'
$4,747,181
N.w money 1989 Bond proceed. - may only b. u..d a. permitted by
US6 federal tax law and re.tdet.d to pUblic improvemeuta;
invuted money. .re subject to reb.te of exce.. e.rninll to
fed.ral ,overnm.nt if all Bond proceed. are not spent within lix
months from elate of illU&Dce <October 2, 1989 to April 2, 1990),
no portion may "be uaed for private purpo.e.
$2,950,000
tax-Ex.mpt Collateraliz'd Mort.... Obli..tion. (available aoprox. 11/2/89)
New /DOn.y tax-ex.mpt portion of Aleney'. 1989 S.ri.. B Bonda _
may only b. uaed .. permitt.d by 1986 t.d.r.l tax 1." and
r"trieted to IOv.rnment.l purpo.e. and 101 portion may be useel
for private purpa.e.; proc..d. may be UI.d for any Allncy
purpo.. and for City purpo... aa permitt.d by COlMlUnity
aedevelopment Law and C.liforni. law .
Sale of Re.ielual from Collater.lized Mortlt'le Obl!tation. (available approx.
11/2/89 )
$.500,000 to
i700,OOO
A,eney .ale of re.idual value of morta.._ l~&n. p1edlea ~o
collaeerali.ed mort.... oblisation. after d.bt service is met on
Sedea A .nd S.ri.. B Bond.; A,ency may use moneys for any
A.ency or City purpo.. permitted by Community Redevelopment Law
and C.Uforni. 1a", preferable that money. be uaed for some
hou.inl-rel.ted purpo.. <e.8t, rehabilitation program, rent
.ubddy, loan or Ir.nt pr08ram, land acquiaition, publie
improvement. blnefittiul re.iellntial houain" .tc.)
Value of MortKale Loan. Transferred to A.lncy/City and ~ot oledged to
Collatera1izeel~~o~taaKe Obli~ations (available 10/89 to 2/90)
$470,000 to
$500,000
E.timated value of mortlase loans that wetl either in defaul~ or
in foreclo.ure and were not aaaisned to Trustee under
collateralil.d mortlal' obltlation Trust Indlntu~e;pool
contain. both Aleney and City mortaale loans which may be l.li6d
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by A,.ney O~ City for any pu~po.. permitted by Community
Redevelopment Law and California law; pr.ferable tnat money. be
U.'d for .ome hou.in,-related purpo.e (e.g., rlbabilitation
prOlram, rent lublidy. loan or grant program, land acquisition,
public improvement. benefitting re.id.ntial houainil ecc.)
$64S,OOO
Fiscal Year 89-90 Debt Service SavinI' to City Gen.ral Fund (available 9/27/89)
Genlral Fund saVing. to City.. a re.ult of refund!n, of
A,eney I. Fir. Statign and Llbrar)! Bond.; refunding eliminated
neee..ity of City to make thr., intereat payment. and two
principal payment. on r.funded bonda and in.tead, City will make
one interest payment in March, 1990, which will b, et.crea.ed by
(1) amount of accrued interlat: received on clodng; and
(2) int.re.t 14rn1nga on funda inveated by bond tl'Ullt.e~ SJIIount
of ..vinga may b, expended on any le,al City Ceneral Fund
exp.nditure
$11,710,835
TOTAl
* Th!. amount will b, r.l....d a. additional
ca.h upon the .uastitution of cert.in .ecuriti..
on deposit in the ..crow fund for the prior
bond..
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