TITLE
Recommendation to receive supporting documentation into the record, adopt resolution authorizing the issuance of the Harbor Revenue Refunding Short-Term Notes Series 2018A, by the Board of Harbor Commissioners, on behalf of the City of Long Beach; in an aggregate principal amount not to exceed $350,000,000, secured and solely payable from Harbor Department revenues, and authorize the execution of all necessary documents. (Citywide)
DISCUSSION
In 2014, the Board of Harbor Commissioners (Board), acting on behalf of the City of Long Beach (City), issued the Harbor Revenue Short-Term Notes Series 2014C (2014C Notes). The 2014C Notes were issued to finance a portion of the costs related to the Gerald Desmond Bridge Replacement Project. The 2014C Notes are schedule to mature on November 15, 2018.
The Board, acting on behalf of the City, proposes to issue the Harbor Revenue Refunding Short-Term Notes Series 2018A (2018A Notes), in an aggregate principal amount not to exceed $350,000,000. Proceeds from the issuance of the 2018A Notes will be used to refund and pay the outstanding principal and interest related to the 2014C Notes on the maturity date of November 15, 2018. Additionally, the proceeds will be used to fund capitalized interest on the 2018A Notes and pay the cost of issuance associated with the 2018A Notes.
The 2018A Notes will be payable from Harbor Department revenues and will be scheduled to mature on December 15, 2020.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on August 15, 2018 and by Budget Management Officer Rhutu Amin Gharib on August 13, 2018.
TIMING CONSIDERATIONS
City Council approval is requested on September 4, 2018, to facilitate the timely payment of the 2014C Notes by the Harbor Department.
FISCAL IMPACT
The Series 2018A Notes are special, limited obligations of the City, secured and solely payable from Harbor Department revenues. The General Fund (GF) will not be liable for the debt service p...
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