Report to Successor Agency
Tuesday, February 06, 2018
Discussion
SUBJECT:
Title
CONSIDER RESOLUTION NO. 18-02-CSA, A RESOLUTION OF THE SUCCESSOR AGENCY TO THE CARSON REDEVELOPMENT AGENCY, APPROVING THE FORM OF A CONTINUING DISCLOSURE CERTIFICATE AND PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE ISSUANCE OF THE SUCCESSOR AGENCY'S TAX ALLOCATION REFUNDING BONDS, SERIES 2018 (PROJECT AREA NO. 4) AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH (SUCCESSOR AGENCY)
Body
I. SUMMARY
The proposed resolution is the final Board action necessary for the Successor Agency to issue refunding bonds to refinance the Carson Redevelopment Agency Project Area # 4, Series 2006 Bonds ("Series 2006 Bonds") . The resolution approves the form of Preliminary Bond Official Statement and Continuing Disclosure Certificate, and authorizes staff of make any final changes or modifications to these documents.
The Board previously approved the Bond Indenture and other documents at its meeting on December, 5, 2017. The Successor Agency's Series 2006 Bonds are expected to generate debt service savings, leaving more property tax for distribution to taxing entities. Under current market conditions it is expected that $19,790,000 in Series 2018 refunding bonds will be issued producing a net present value savings of $1.453 million or 6.39% of the $22,740,000 in Series 2006 Bonds refunded.
The City of Carson should expect to receive an additional share of property tax for the next 22 years averaging approximately $6,600 per year. In other words, the City's share of savings is estimated to be 6.84% or $144,480 over the term of bonds or $99,403 in present value dollars.
II. RECOMMENDATION
Recommendation
ADOPT Resolution No. 18-02-CSA, A RESOLUTION OF THE SUCCESSOR AGENCY TO THE CARSON REDEVELOPMENT AGENCY, APPROVING THE FORM OF A CONTINUING DISCLOSURE CERTIFICATE AND PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE ISSUANCE OF THE SUCCESSOR AGENCY'S TAX ALLOCATION REFUNDI...
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