TITLE
Recommendation to receive supporting documentation into the record regarding the debt issuance by the City of Long Beach; adopt resolution authorizing the issuance of Senior Sewer Revenue Refunding Bonds, Series 2016A, by the Board of Water Commissioners on behalf of the City, in a principal amount not to exceed $11,500,000, and authorize the execution of all necessary related documents. (Citywide)
DISCUSSION
In May 2011, the Long Beach Water Department (LBWD) refunded its Commercial Paper Notes with a Revolving Line of Credit in a principal amount not to exceed $20,000,000. Proceeds from the Revolving Line of Credit were used to pay off the principal balance of $4,000,000 of the Commercial Paper Notes, fund sewer capital improvements, and pay the cost of issuance associated with the Revolving Line of Credit.
The LBWD proposes to issue Senior Sewer Revenue Refunding Bonds, Series 2016A (Series 2016A Bonds). The Series 2016A Bonds proceeds will be used to pay off the outstanding principal balance of $11,250,000 under the Revolving Line of Credit and pay the cost of issuance associated with the Series 2016A Bonds. The debt service for the Series 2016A Bonds will be payable from revenues generated from the Sewer Revenue Fund.
The LBWD also proposes to extend the term of the Revolving Line of Credit for a period of three years and reduce the not-to-exceed amount from $20,000,000 to $10,000,000 to maintain financial flexibility.
The Board of Water Commissioners adopted a Resolution on August 3, 2016, authorizing the issuance of the Series 2016A Bonds (Attachment A).
This matter was reviewed by Deputy City Attorney Richard F. Anthony on July 27, 2016 and by Assistant Finance Director Lea Eriksen on July 25, 2016.
TIMING CONSIDERATIONS
City Council action is requested on August 16, 2016, to take advantage of the current low interest rate environment.
FISCAL IMPACT
There is no impact to the General Fund as this is an obligation of the Sewer Re...
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