1998 AGN MAR 03 I14 - Laserfiche WebLink

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C17Y OF COLTON CITY COUNICL For the City Council Meeting of March 3, 1998 TO: Mayor and Council Members APPROVAL: Henry Garcia, City Mana FROM: Robb Steel, Economic Development Director SUBJECT: Consideration and Approval of the Colton Public Financing Authority Tax Allocation Refunding Bond Series 1998A (Santa Ana River Redevelopment Project) and Colton Public Financing Authority Subordinate Tax Allocation Bonds Series 1998B (Santa Ana River Redevelopment Project and Cooley Ranch Redevelopment Project) DATE: February 24, 1998 Backqround The Agency's current operating strategy identifies a series of actions to improve cashflows and address the consequences of declining tax increments caused by property tax reassessments. Refinancing existing Agency debt was one action identified provided that the financial markets were favorable. Current interest rates make the 1989 tax allocation bond issue a viable candidate for refunding. On November 25, 1997 the Agency Board appointed a financing team (underwriter, bond counsel, financial advisor, and disclosure counsel) to conduct a feasibility assessment of the refunding opportunity. Discussion Oriqinal Debt In 1989, the Redevelopment Agency issued tax allocation bonds in the amount of $34,285,000. The proceeds from this bond issue were used to refund the prior 1986/87 tax allocation bonds and fund a variety of new redevelopment projects in the Cooley Ranch, Santa Ana, and Downtown #1 Project Areas. More recently, in late 1997 the Agency issued Bond Anticipation Notes for the Santa Ana River Project Area in the amount of $6,750,000. Tax allocation bonds are bonds secured by a pledge of the property tax increment allocable to the Redevelopment Agency in accord with the adopted redevelopment plans. Tax allocation debt is supported solely by the Agency's property tax revenues and is not an obligation of the City and/or the general fund. The original debts were unrated. The current status of the existing bonds and notes is summarized in Exhibit A. The total outstanding debt is just over $39 million with total payments remaining of $86 million. ITEM #14 �