DATE OF MEETING: 08/26/2024
SUBJECT:
TITLE
PRESENTATION OF POTENTIAL REFUNDING OF 2014-A TAX ALLOCATION BONDS (TAB) TAX-EXEMPT FINANCING AND CERTAIN ACTIONS RELATING THERETO
Label
RECOMMENDATION:
Recommendation
Receive presentation and recommend formal consideration and adoption by the City Council and Local Successor Agency
BODY
COMPLIANCE STATEMENTS
This item is not directly related to a specific policy within the FY 2023-25 City Council Priority Workplan adopted May 1, 2023 but is provided to increase local government operational transparency.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
In June 2014, the Successor Agency to the Redevelopment Agency of the City of San Pablo (the "Successor Agency") issued $47,595,000 of tax allocation refunding bonds (the "Series 2014A Bonds"), for the purpose of refinancing at lower interest rates, certain outstanding bonds that were previously issued by the Redevelopment Agency of the City of San Pablo (the "Redevelopment Agency") in 1999, 2001, 2004 and 2006.
Currently, $24,150,000 of the Series 2014A Bonds remain outstanding.
An opportunity now exists for the Successor Agency to refinance the outstanding 2014A Bonds at lower interest rates, and in so doing realize significant debt service savings. Such a refinancing, which is similar to refinancing a home mortgage, is accomplished via the issuance of Refunding Bonds by the Successor Agency. Proceeds from the Refunding Bonds will then be used to prepay all of the outstanding Series 2014A Bonds.
The attached "Refinancing Analysis" provides an estimate of the debt service savings to be achieved by this Refinancing, based on interest rates as of August 5, 2024.
It is anticipated that the Refunding Bonds will be issued in late October, 2024, after all of the procedural requirements that are necessary to issue the bonds have been completed.
No assurance can be given that interest rates will remain at 'favorable' le...
Click here for full text