TITLE
Recommendation to adopt resolution approving the decision of the City of Long Beach, as the Successor Agency to the Redevelopment Agency of the City of Long Beach, to execute various documents required to commence the refunding of various tax allocation bonds for debt service savings; and authorizing appropriate staff to take actions necessary to complete the refunding.
DISCUSSION
The Oversight Board elected on September 22, 2014, to participate in the County of Los Angeles Redevelopment Refunding Program (County Program) and directed the Long Beach Successor Agency to commence the refunding of various tax allocation bonds (Exhibit A).
The Successor Agency (Long Beach SA) to the Redevelopment Agency of the City of Long Beach (Former RDA) has the opportunity to issue bonds to refund approximately $184 million in tax allocation bonds issued by the Former RDA, to reduce the cost of debt service payments. The bond issues proposed to be refunded were marketed through several series of revenue bonds issued by the Long Beach Bond Finance Authority: the 2002 Series A, the 2002 Series B, the 2005 Series A-1, the 2005 Series A-2, and the 2005 Series B. The bonds involve different project areas that have varying payment requirements and savings levels. Proceeds of the bonds were used by the Former RDA to construct public improvements throughout various project areas. By refunding several bonds at once, the Long Beach SA will eliminate the need for overcollateralization and will reduce additional administrative costs.
Based on current interest rates, the refunding would lower the Long Beach SA’s existing debt payments by approximately $1.69 million each year over 26 years, or $24.3 million in today’s dollars (net present value savings), which will be divided among the City and other various taxing agencies. These estimates may change based on market conditions at the time of sale.
Legal Documents
The following documents have been prepared for the refunding and ar...
Click here for full text