TITLE
Recommendation to adopt resolution authorizing the issuance of the Harbor Revenue Bonds Series 2019A, by the Board of Harbor Commissioners, on behalf of the City of Long Beach, in an aggregate principal amount not to exceed $200,000,000, secured and solely payable from Harbor Department revenues, and authorize the execution of all necessary documents. (Citywide)
DISCUSSION
The Board of Harbor Commissioners, acting on behalf of the City of Long Beach (City), proposes to issue the Harbor Revenue Bonds Series 2019A (Series 2019A Bonds), in an aggregate principal amount not to exceed $200,000,000. Proceeds from the issuance of the Series 2019A Bonds will be used to pay and/or reimburse the Harbor Department for the costs of the development, design, and construction of its new headquarters building. The proceeds will also be used to pay the cost of issuance associated with the Series 2019A Bonds. The City estimates the Series 2019A Bonds will generate: (1) a true interest cost of 3.50 percent; (2) finance charges of $543,000; (3) project fund amount of $200 million; and, (4) total debt service of $339 million.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on May 16, 2019 and by Budget Management Officer Rhutu Amin Gharib on May 22, 2019.
TIMING CONSIDERATIONS
City Council approval is requested on June 11, 2019, to facilitate the timely payment or reimbursement for costs associated with the Harbor Department’s new headquarters building.
FISCAL IMPACT
The Series 2019A Bonds are special, limited obligations of the City, secured and solely payable from Harbor Department revenues. The average annual debt service payment on the Series 2019A Bonds will be approximately $11.4 million. The General Fund Group will not be liable for the debt service payments. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact asso...
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