TITLE
Recommendation to adopt resolution authorizing the issuance and sale of the 2005 Long Beach Bond Finance Authority's (Authority) Lease Revenue Bonds to Refund the Authority's Outstanding 1998 Series A Lease Revenue Bonds (Temple and Willow Facility), in an amount not to exceed $9,000,000; and authorize City Manager to execute all necessary documents. (Citywide)
DISCUSSION
Staff recommends that the City Council adopt the attached resolution that authorizes the issuance and sale of Long Beach Bond Finance Authority's (Authority) Lease Revenue Bonds to refund the Authority's 1998 Series A Bonds, at an estimated average coupon rate of 4.53 percent, thereby reducing the Authority's cost of debt by approximately $16,000 annually, and to fund a bond payment reserve. This refunding opportunity is available due to the low current market interest rates, which permit the City to reduce its overall cost of debt.
In 1998, the Authority issued the Lease Revenue Bonds (1998 Series A and Series B)
The original bond proceeds were used to finance the costs of a new fleet services, towing and lien sales operations, and environmental services operations facility in the City of Long Beach, and to refund certain certificates issued in 1992. The Authority leased certain real property and improvements to the City pursuant to a facilities lease dated May 1, 1998. The City agreed to make semi-annual lease payments to the Authority, which pay the full amount of principal and interest on the 1998 Bonds.
TIMING CONSIDERATIONS
[Timing Considerations]
FISCAL IMPACT
[Fiscal Impact]
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
[Respectfully Submitted,]