HomeMy WebLinkAboutRDA Reso 2008-1987
RDA RESOLUTION NO. 2008-1987
RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA DECLARING THE INTENT TO
REFUND THE 2000 TAX ALLOCATION BONDS IF
DETERMINED TO BE FINANCIALLY FEASIBLE
WHEREAS, in May 2000, the Redevelopment Agency approved the issuance of $17.0
million in Tax Allocation Bonds to repay outstanding inter-fund loans, raise capital for projects,
eliminate deficit balances in the project areas as well as fund staff and operating costs on an
ongoing basis; and
WHEREAS, on June 30, 2007, there was $15.5 million in outstanding bonds with a net
interest cost of 5.32% and a final maturity date of 2030; and
WHEREAS, a preliminary review performed by financial advisors, Harrell & Co.,
indicates that the Agency would save approximately $40,000 per year on their annual debt
service payments as a result of a refunding under the current low interest rate environment with
an assumed rate of 4.4%; and
WHEREAS, an additional $3.7 million (est.) would be added to the principal of the
refunded bonds and used to help repay an outstanding loan with the City ofChula Vista; and
WHEREAS, in order to comply with federal tax laws, the bond proceeds will be spent
within three years on capital projects; and
WHEREAS, in order to realize the savings within fiscal year 2007-2008, staff anticipates
returning to the Redevelopment Agency/City Council for final approval of the transaction by the
end of March 2008.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of
Chula Vista does hereby declare its intention to refund the outstanding 2000 Tax Allocation
Bonds if determined to be financially feasible.
Presented by
Approved as to form by
ur}t,-::- ~ ~O, cbl I ~
Maria K hadoorian
Director of Finance
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Ann Moore
General Counsel
RDA Resolution No. 2008-1987
Page 2
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, California, this 22nd day of January 2008 by the following vote:
A YES: Agency Members: Castaneda, McCann, and Cox
NAYS: Agency Members: None
ABSENT: Agency Members: None
ABST AlN: Agency Members: Ramirez and Rindone
(111 i~
Cheryl Cox1hai erson
ATTEST:
// ?d/
,.-'Eric Crockett, Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA)
I, Eric Crockett, Secretary of the Redevelopment Agency of the City of Chula Vista, California,
do hereby certifY that the foregoing Redevelopment Agency Resolution No. 2008-1987 was duly
passed, approved, and adopted by the Redevelopment Agency at a special meeting on the 22nd
day of January 2008.
Executed this 22nd day of January 2008.
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