MEETING DATE:
SEPTEMBER 12, 2017
SUBJECT:
Title
RESOLUTION NO. SA 2017-021 - REQUEST FOR AUTHORIZATION AND APPROVAL BY THE BOARD OF THE SUCCESSOR AGENCY TO THE SAN MARCOS REDEVELOPMENT AGENCY TO REFUND CERTAIN OUTSTANDING HOUSING SET-ASIDE TAX ALLOCATION BONDS, SERIES 2010
Body
Recommendation
Recommendation
ADOPT a resolution of the Board of the Successor Agency to the San Marcos Redevelopment Agency ("Successor Agency") approving the issuance of refunding bonds in order to refund certain outstanding bonds and financial obligations of the former San Marcos Redevelopment Agency, approving the execution and delivery of an Indenture of Trust and other related documents.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Planning for the Future
Good Governance
Relevant Department Goal
Not applicable
Introduction
The former San Marcos Redevelopment Agency issued its $52,805,000 Housing Set-Aside Tax Allocation Bonds, Series 2010 (Taxable) (the "Prior Bonds") for affordable housing and associated purposes. Staff and consultants estimate that refinancing of the Prior Bonds will reduce the collective debt service by approximately $14.07 million through October 1, 2030, based on market conditions as of August 8, 2017.
The dissolution law provides that such refinancings are subject to the approval of the Successor Agency, Oversight Board, and the Department of Finance. The proposed action starts this process. If these Prior Bonds are refinanced, any savings accrued will increase the amount of residual property tax (previously known as tax increment) available for distribution to the taxing entities.
Discussion
As the City Council will recall, redevelopment agencies were dissolved by the passage of ABx1 26 by the California Legislature. The California Supreme Court upheld the dissolution statute in December of 2011, and the dissolution occurred effective February 1, 2012. AB 1484, follow-up legislation to supplement an...
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