TITLE
Recommendation to adopt resolution authorizing the issuance of Harbor Revenue Bonds, Series 2017 A, B, and C (Series 2017 Bonds), by the Board of Harbor Commissioners on behalf of the City of Long Beach, in an aggregate principal amount not to exceed $200,000,000, secured and solely payable from Harbor Department revenues, and authorize the execution of all necessary related documents. (District 2)
DISCUSSION
The Board of Harbor Commissioners (Board), acting on behalf of the City proposes to issue the Series 2017 Bonds, in an aggregate principal amount not to exceed $200,000,000. Proceeds from the Series 2017 Bonds will be used to pay or reimburse the Harbor Department for capital expenditures incurred, or for future construction costs related to various capital improvement projects, including the Gerald Desmond Bridge and the Middle Harbor Terminal. Additionally, the proceeds will also be used to repay the Harbor Department’s outstanding subordinate revolving obligations, and pay for the cost of issuance associated with the Series 2017 Bonds. The Series 2017 Bonds will be secured and solely payable from Harbor Department revenues.
The Board will adopt a Resolution on May 16, 2017, authorizing the issuance of the Series 2017 Bonds (Attachment A).
This matter was reviewed by Deputy City Attorney Richard F. Anthony on April 24, 2017 and by Assistant Finance Director Lea Eriksen on April 27, 2017.
TIMING CONSIDERATIONS
City Council action is requested on May 23, 2017, to facilitate the Harbor Department’s capital improvement program.
FISCAL IMPACT
The Series 2017 Bonds will be special, limited obligations of the City, secured and solely payable from Harbor Department revenues. The City’s General Fund (GF) will not be liable for the debt service payments of the Series 2017 Bonds. These capital improvement projects are expected to create approximately 4,000 jobs in the five-county region over the next five years.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE ISSUANCE BY THE BOARD OF HARBOR COMMISSIONERS, ON BEHALF OF THE CITY OF LONG BEACH, OF HARBOR REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $200,000,000 SECURED BY HARBOR DEPARTMENT REVENUES AND CERTAIN OTHER MATTERS
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
DUANE L. KENAGY
INTERIM EXECUTIVE DIRECTOR, HARBOR DEPARTMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER