2004 AGN JUN 09 I01 - Laserfiche WebLink

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Report to City Council regarding the Issuance of 2004 Series A Subordinate Housing Tax Allocation Bonds. June 9, 2004 Page 2 Costs of Issuance The estimated costs of issuance include fees (exclusive of reimburseables) is $30,000 for bond counsel, $25,000 for disclosure counsel, $19,000 for the financial consultant, and $30,500 for expenses including trustee fees, printing, postage, verifications, etc. The Resolution delegates authority to the City Manager or his designee to execute final contracts with the financing team members and to approve other normal and customary issuance costs payable from the bond proceeds. Security for Bonds The security for the New Bonds is the pledge of Redevelopment Agency Housing Set -Aside Funds. There is no other Agency or City revenue source committed to the financing. The pledge is subordinate to an outstanding obligation of the housing fund to make debt service payments on a portion of the 1998 tax allocation bonds Process for Issuing The Colton Public Financing Authority (CPFA) will provide a loan to the Agency and sell new bonds to refund the 2001A bonds. The Agency will make the loan payments to the Authority to repay the Authority bonds. The City Council will by accompanying Resolution on this Agenda establish the parameters within which the City Manager is authorized to sell the bonds. The principal execution parameters are as follows: Maximum Par Amount of Bonds True Interest Cost (AIC) Maximum Underwriter's Discount Minimum Savings % (NPV) $7,500,000 6.00% 1.25% of par 1.5% of Outstanding Principal The City Manager or his designee will be authorized to execute the purchase agreement if these conditions are satisfied. The following loan documents are part of the transaction and are available for review in the office of the City Clerk. The documents include: 1. Bond Purchase Contract 2. Supplemental Indenture of Trust 3. Escrow Agreement 4. Continuing Disclosure Agreement 5. Fiscal Consultant's Report 6. Preliminary Official Statement 7. Subordinate Housing Loan Agreement