Long Beach, CA
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File #: 20-1164    Version: 1 Name: FM - Public Safety Garage Loan
Type: Agenda Item Status: Approved
File created: 11/17/2020 In control: City Council
On agenda: 12/8/2020 Final action: 12/8/2020
Title: Recommendation to authorize City Manager, or designee, to execute all documents necessary for an interfund loan between the Fleet Services Fund Group and Debt Service Fund Group, for a principal amount not to exceed $1,600,000; and Increase appropriations in the Debt Service Fund Group in the Citywide Activities Department by $34,000, to make the annual interest payments to the Fleet Services Fund Group, offset by a transfer from the General Fund Group in the Citywide Activities Department; and Increase appropriations in the General Fund Group in the Citywide Activities Department by $34,000, to transfer to the Debt Service Fund Group, offset by citywide revenues collected in the General Fund Group for this purpose. (Citywide)
Sponsors: Financial Management
Attachments: 1. 120820-C-16sr&att.pdf
TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for an interfund loan between the Fleet Services Fund Group and Debt Service Fund Group, for a principal amount not to exceed $1,600,000; and

Increase appropriations in the Debt Service Fund Group in the Citywide Activities Department by $34,000, to make the annual interest payments to the Fleet Services Fund Group, offset by a transfer from the General Fund Group in the Citywide Activities Department; and

Increase appropriations in the General Fund Group in the Citywide Activities Department by $34,000, to transfer to the Debt Service Fund Group, offset by citywide revenues collected in the General Fund Group for this purpose. (Citywide)

DISCUSSION
On December 11, 2018, the City Council adopted Specifications No. RFP PW18-058 for the design and build of a public safety parking garage (Garage) and expressed intent to issue bonds not to exceed $13,300,000 in principal amount with debt service payments of approximately $976,000 annually.

On May 22, 2019, the City of Long Beach (City) issued bonds that provided $10,200,000 in proceeds for the Garage project to fund the construction contract but not the ancillary construction-related costs of $1,600,000. Within the next three years, additional funding will be needed for the ancillary construction costs of the Garage before new bonds can be issued. The additional funding, not to exceed $1,600,000, for the Garage is proposed to come from an interim interfund loan from the Fleet Services Fund Group in the Financial Management Department. This interim loan and the subsequent issuance of new bonds to pay-off the interim loan is financially efficient and will serve to reduce costs lower than had been originally anticipated due to interest savings and will be a financial benefit to the City.

The interfund loan will be issued from the Fleet Services Fund Group to the Debt Service Fund Group with the funds then transferred ...

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