TITLE
Recommendation to adopt resolution authorizing Long Beach Bond Finance Authority to issue 2010 Refunding bonds in an amount not to exceed $34,000,000 to prepay the 1997 Civic Center Lease thus refunding the outstanding Long Beach Bond Finance Authority Lease Revenue and Refunding Bonds (Civic Center) 1997 Series A, and pay cost of issuance for the Series 2010 bonds. (District 2)
DISCUSSION
On November 11, 1997, the City Council authorized the refinancing of the Long Beach Civic Center Revenue Bonds issued in 1973. On December 1, 1997 the City of Long Beach and the Long Beach Bond Finance Authority (LBBFA) entered into a Trust Agreement and Facilities Lease, to refinance the 1973 Civic Center lease and to assist in financing of the police headquarters facility, emergency services system center, and other improvements to the Long Beach Civic Center.
Pursuant to the December 1, 1997 Trust Agreement between the City and LBBFA, the City’s base rental payment was assigned to a trustee in support of the LBBFA Lease Revenue and Refunding Bonds (Civic Center) 1997 Series A, for the purpose of refunding the 1973 Long Beach Civic Center Revenue Bonds.
The objective of the proposed refunding was to reduce the annual debt service burden of the Civic Center Fund without extending the term of the existing bonds, or back-loading the debt service burden to a future date. The proceeds from the Series 2010A Bonds and the 1997 Debt Service Reserve Fund will be used to refund approximately $33,400,000 aggregate principal of 1997 Series A Bonds (Civic Center), and pay approximately $450,000 for the cost of issuing the Series 2010A Bonds.
The recommended bond structure is estimated to reduce the interest rate to 4.55 percent from 5.00 percent, thereby, producing an average annual debt service savings of approximately $140,000, while also reducing the bond term by one year to 2027 from 2028.
This item was reviewed by Chief Assistant City Attorney Heather A. Maho...
Click here for full text