HomeMy WebLinkAboutResolution No. 2023-C59RESOLUTION NO. 2023-C59
A RESOLUTION OF THE CITY COUNCIL OF CITY OF AZUSA
AMENDING THE FISCAL YEAR 2023/24 GENERAL FUND BUDGET BY
$4,000,000 TO REPURCHASE A PORTION OF THE CITY OF AZUSA
PENSION OBLIGATION BONDS, SERIES 2020
WHEREAS, in order to refinance certain pension liabilities of the City of Azusa (the
“City”), the City issued its Taxable Pension Obligation Bonds, Series 2020 (the “2020 FOBS”)
which were issued on September 30, 2020; and
WHEREAS, the City is obligated to make certain annual debt service payments on such
outstanding 2020 FOBS; and
WHEREAS, recent increases in yields demanded by investors in virtually all types of
bonds have produced corresponding decreases in the market prices for such bonds, and as a result
thereof many of the City’s bonds now trade at prices significantly less than the principal amount;
and
WHEREAS, due to such decrease in the market prices for such bonds, the City may
achieve savings from the repurchase of a portion of the 2020 FOBS periodically on the open
market; and
WHEREAS, the City Council of the City (the “City Council”) deems it advisable and in
the best interests of the City to authorize the repurchase a portion of the outstanding of the 2020
FOBS on the open market (“Bond Repurchase Program”) from time to time; and
WHEREAS, the City shall utilize legally available monies in the City’s general fund
(“Surplus Cash”) to purchase a portion of the outstanding 2020 FOBS on the open market and
deliver them to the Wilmington Trust National Association, as trustee of the 2020 FOBS, to be
cancelled; and
WHEREAS, the use of Surplus Cash to purchase on the open market and cancel a portion
of the outstanding 2020 FOBS will reduce both the principal amount of the City’s bonds
outstanding and the annual amount of bond interest payable by the City; and
WHEREAS, the City Council hereby authorizes the Bond Repurchase Program to reduce
debt service on the outstanding 2020 FOBS provided that any repurchase under the Bond
Repurchase Program will provide significant public benefits in the form of reductions in the
amounts of both the principal and interest payable on the City’s bonds as set forth in this resolution;
WHEREAS, Azusa Municipal Code Section 2-450 requires that during the fiscal year after
adoption of the budget, amendments exceeding $1,000,000 may be approved by the City Council
following a public hearing held by the City Council on the proposed and shall be formalized by
the adoption of a resolution;
WHEREAS, a public hearing for this matter was conducted at a regular meeting og the
City of Azusa City Council on the 16'’’ day ofOctober, 2023; and
WHEREAS, an amendment in the amount of $4,000,000 to the Genreal Fund Operating
expense budget will be adequate repurchase a portion of the 2020 Pension Obligation Bonds.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF AZUSA AS FOLLOWS:
SECTION 1. That the General Fund Fiscal Year 2023-2024 Operating Budget is hereby
amended in the amount of $4,000,000 in the expense account number 10-90-000-000-7005.
SECTION 2. This Resolution shall take effect from and after its adoption.
PASSED, APPROVED and ADOPTED this 16"' day ofOctober, 2023.
Robert Gonzales
Mayor
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF AZUSA
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I HEREBY CERTIFY that the foregoing Resolution No.2023- C59 was duly adopted by
the City Council of Azusa at a regular meeting thereof, held on the 16*'’ day of October, 2023, by
the following vote of Council:
AYES:
NOES:
ABSENT: COUNCILMEMBERS: MENDEZ
COUNCILMEMBERS: GONZALES, BECKWITH. ALVAREZ, AVILA
COUNCILMEMBERS:
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Q((y Clerk
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APPROVED AS TO FORM:
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City Attorney
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