HomeMy WebLinkAboutF-2 Staff Report - SA Results Bond Ref 2007A 2007BRefunding Results-2007A and 2007B TABS
December 4, 2017
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SUCCESSOR AGENCY ITEM
F-2
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE SUCCESSOR
AGENCY BOARD
FROM: DON PENMAN, INTERIM CITY MANAGER
VIA: TALIKA M. JOHNSON, DIRECTOR OF FINANCE
DATE: DECEMBER 4, 2017
SUBJECT: REFUNDING RESULTS OF 2007A AND 2007B TAX ALLOCATION BONDS
WITH 2017 TAX ALLOCATION REFUNDING BONDS
SUMMARY:
On July 17, 2017, the Successor Agency Board authorized Staff to proceed with issuance of
2017 Tax allocation Refunding Bonds to refund 2007A and 2007B Tax Allocation Bonds issued
by the former Redevelopment Agency to achieve debt service savings. This action receives and
files the refunding results.
RECOMMENDATION:
Staff recommends the Successor Agency Board take the following action:
1) Receive and file 2007A and 2007B Tax Allocation Bonds refunding results.
DISCUSSION:
On July 17, 2017, the Successor Agency authorized Staff and the Agency’s Financial Advisor,
Urban Futures, Inc. (UFI) to proceed with a private placement issuance of 2017 Tax Allocation
Refunding Bonds, Series A (tax exempt) and Series B (taxable) for the purpose of refunding the
2007A and 2007B Taxable Allocation Bonds in order to realize a cost savings from reduced debt
service costs.
The 2017 Series A (tax exempt) and Series B (taxable) were issued on November 2, 2017 for
$3,510,000 and $3,615,000, respectively. Attached are the final refunding statistics which shows
actual refunding results compared to earlier estimated savings.
APPROVED
CITY COUNCIL
12/4/2017
Received and Filed
Refunding Results-2007A and 2007B TABS
December 4, 2017
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FISCAL IMPACT:
Through the refunding process, the Successor Agency was able to realize an aggregate savings of
$1.9 million and a Net Present Value Savings of 14.91%. Consequently, the City’s General Fund
will benefit from its share of the refunding in the amount of $421,833 over fiscal years 2018 –
2038.
Prepared by: Reviewed and Approved:
Talika M. Johnson Louie F. Lacasella
Director of Finance Senior Management Analyst
Reviewed and Approved:
Don Penman
Interim City Manager
Attachments:
1) Savings statistics
Successor Agency to the Azusa Redevelopment Agency
2017 Tax Allocation Refunding Bonds
(Refunding of the 2007A and 2007B Tax Allocation Bonds)
Refunding Analysis
(As of June 8, 2017) (Rate Lock 10-25-17)
Refunding Statistics Private Placement Private Placement
Refunding Par Amount $7,110,000 $7,125,000
True Interest Cost 3.60% 2.77%
Final Maturity 2036 2032
Net Present Value Savings ($) $572,546 $1,072,152
Net Present Value Savings (%) 7.96% 14.91%
Aggregate Savings $1,208,323 $1,933,612
Aggregate Savings (City Share³) $263,355 $421,433
Annual Savings from Proposed Refunding (CITY SHARE³)
Annual Savings
Year City Share (as of 6/8/17) City Share (as of 10/25/17)
2018 $17,148 $11,619
2019 18,526 14,744
2020 18,346 15,270
2021 18,879 16,452
2022 19,000 16,076
2023 12,100 6,466
2024 12,689 7,052
2025 12,113 6,462
2026 12,593 6,905
2027 11,908 7,260
2028 12,278 6,440
2029 12,569 6,659
2030 12,766 6,761
2031 11,798 6,776
2032 11,883 6,704
2033 11,875 69,720
2034 11,791 69,986
2035 12,703 70,078
2036 12,392 69,998
Totals $263,355 $421,433
Attachment 1