Adoption of Resolutions and Approval of Agreements Needed for Refunding of the 1999 Wastewater Facilities Refunding Revenue Bonds. City of Culver City California City Council Agenda Item Report Meeting Date: 06/22/09 AGENDA ITEM: Adoption of Resolutions and Approval of Agreements Needed for Refunding of the 1999 Wastewater Facilities Refunding Revenue Bonds Contact Person/Dept.: Jeff Muir CFO Phone Number: 310 253 5865 Item Number: C 8 Fiscal Impact: Yes X No General Fund: Yes No X Action Item: X Public Hearing: Public Notification: Master E Mail Notification List (6/17/09); Fieldman Rolapp via email (6/17/09); Richards Watson Gershon via email (6/17/09); Stone & Youngberg via email (6/17/09) Department Approval: Jeff Muir (06/11/09) Chief Financial Officer Approval: Jeff Muir (06/11/09) City Attorney Approval: Carol Schwab (by H. Baker) (06/17/09) City Manager Approval: Mark Scott (06/18/09) Attachments: X RECOMMENDATION: Staff recommends the City Council approve the resolutions and agreements required for the refunding of the Wastewater Facilities Refunding Revenue Bonds 1999 Series A. BACKGROUND: In 1999 the City issued $25 million in Revenue Bonds for the Wastewater (Sewer) utility. These bonds primarily refunded prior debt as well as provided about $6 million in additional funds used for capital improvements to the sewer system. The 1999 bonds had a ten year restriction on when they could be refunded meaning 2009 is the first opportunity to refund the bonds. We have worked closely with our financial advisors Fieldman Rolapp & Associates to analyze the feasibility of refunding these bonds. Based on the current market conditions it is estimated the Sewer Fund could recognize up to approximately $900 000 in net present value savings by refunding the bonds at this time. This is an approximate savings of nearly $75 000 per year in debt service costs for the Sewer Fund. These savings can be used to offset operational cost increases or capital costs. There is a genera...
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