TITLE
Recommendation to adopt resolution approving the issuance by the Board of Harbor Commissioners, on behalf of the City of Long Beach, of Harbor Revenue Refunding Bonds, in an aggregate principal amount not to exceed $90,000,000, and Harbor Revenue Short-Term Notes, in an aggregate principal amount not to exceed $350,000,000, secured by Harbor Department revenues. (District 2)
DISCUSSION
The Board of Harbor Commissioners (Board), acting on behalf of the City of Long Beach (City), proposed on March 31, 2014, to issue Harbor Revenue Refunding Bonds (2014 Refunding Bonds) in an aggregate principal amount not to exceed $90,000,000. Proceeds from the 2014 Harbor Refunding Bonds will be used to refund all or a portion of the Harbor Revenue Bonds, Series 2002B, Harbor Revenue Bonds, Series 2004A and B, and to fund the cost of issuing the Series 2014 Refunding Bonds. The 2014 Refunding Bonds will be secured and payable from the revenues of the Harbor Department (Harbor).
The Board, acting on behalf of the City, also proposed on March 31, 2014, to issue Harbor Revenue Short-Term Notes (2014 Short-Term Notes) in an aggregate principal amount not to exceed $350,000,000. The 2014 Short-Term Notes will be secured and payable from the revenues of the Harbor Department (Harbor). Proceeds from the issuance of the 2014 Short-Term Notes will be used to fund expenditures related to the Gerald Desmond Bridge Replacement Project. The Harbor’s loan application is being evaluated by the U.S. Department of Transportation (DOT) under the Transportation Infrastructure Finance and Innovation Act (TIFIA), which will lock in a rate on the loan for a 34-year period at the 30-year U.S. Treasury rate. The Harbor has the option and intends to draw down on the TIFIA loan one year after substantial completion of the new Gerald Desmond Bridge. In order to lower the overall cost of borrowing, the Harbor proposes to issue the 2014 Short-Term Notes for the approximately three and one half y...
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