TITLE
Recommendation to adopt resolution approving the issuance and/or incurrence, from time to time, by the Board of Harbor Commissioners, on behalf of the City of Long Beach, of Subordinate Harbor Revenue Revolving Obligations secured by Subordinate Harbor Department Revenues, in a principal amount not to exceed $250,000,000 outstanding at any one time, to finance and refinance certain capital improvements and otherwise to be used as permitted by applicable law. (Districts 1,7)
DISCUSSION
The Board of Harbor Commissioners (Board), acting on behalf of the City of Long Beach (City), proposes to renew the Harbor Department’s short-term borrowing program and increase the borrowing limit under the program from a not-to-exceed aggregate principal amount outstanding of $200,000,000, to a not-to-exceed aggregate principal amount outstanding of $250,000,000. The Harbor Department originally established the short-term borrowing program in 2013. The Harbor Department will continue to utilize the short-term borrowing program for the purposes of financing and refinancing certain capital improvements at the Port of Long Beach (Port) and certain other purposes of the Harbor Department as permitted by applicable law.
MUFG Union Bank, N.A. (Union Bank) currently provides the Harbor Department with a $200 million line of credit, in the form of City of Long Beach, California Subordinate Harbor Revenue Revolving Obligations, Series B (Tax-Exempt) and Series C (Taxable) (Series B/C Obligations). The short-term borrowing program was established to allow the Harbor Department to quickly access funds on an interim/short-term basis to pay for capital projects. The short-term borrowing program was originally approved by the Board on July 15, 2013, and reapproved by the Board on June 30, 2016 and April 22, 2019. It is scheduled to expire on May 13, 2022.
The Harbor Department has an approximately $2.28 billion capital plan through fiscal year 2032; however, capital activities are e...
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