TITLE
Recommendation to receive supporting documentation into the record regarding the debt issuance by the Finance Authority of Long Beach; adopt resolution authorizing the issuance of the Lease Revenue Refunding Bonds (Rainbow Harbor Refinancing Project) Series 2016B (Series 2016B Bonds), in an amount not to exceed $23,000,000, to refund the Long Beach Bond Finance Authority Lease Revenue Refunding Bonds (Rainbow Harbor Refinancing Project) 2006 Series A (Series 2006A Bonds); and authorize the execution of all necessary documents. (Citywide)
DISCUSSION
In 2006, the Long Beach Bond Finance Authority issued the Series 2006A Bonds to refund the Lease Revenue Bonds Series 1999A and the 1997 Certificates of Participation. The annual debt service payments for the Series 2006A Bonds are approximately $3,800,000 and are paid from the Tidelands Fund.
The City proposes to issue the Finance Authority of Long Beach (FALB) Series 2016B Bonds to refund the Series 2006A Bonds and fund the cost of issuance. This refunding does not extend the final maturity term of 2024 for the Series 2006A Bonds, and is anticipated to reduce the annual debt service payments from $3,800,000 to approximately $3,300,000, an estimated savings of $500,000 per year. The not to exceed amount of $23,000,000, plus the anticipated bond premium of $2,265,000 will result in the refunded amount of approximately $25,265,000.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on June 27, 2016 and by Assistant Finance Director Lea Eriksen on June 29, 2016.
TIMING CONSIDERATIONS
City Council action is requested on July 19, 2016, as a delay may result in a reduction or elimination of savings. Municipal Market Data (MMD) interest rates are currently at historical lows.
FISCAL IMPACT
It is anticipated that refunding the Series 2006A Bonds will generate approximately $3,000,000 in present value savings for the life of the loan, reducing the annual debt service payments in the Ti...
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