HomeMy WebLinkAbout2009-10-20; City Council; MinutesMINUTES
JOINT MEETING OF: THE CARLSBAD CITY COUNCIL AND MUNICIPAL WATER DISTRICT
(Joint Special Meeting)
DATE OF MEETING: October 20, 2009
TIME OF MEETING: 6:00 p.m.
PLACE OF MEETING: City Council Chambers
CALL TO ORDER: Mayor/President Lewis called the Joint Special Meeting to order at 7:02 p.m.
ROLL CALL: was taken by the City Clerk/Assistant Secretary as follows:
Present: Council/Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
Absent: None.
DEPARTMENTAL AND CITY MANAGER REPORT:
22.AB #20.012 - PROPOSITION 1A SECURITIZATION PROGRAM.
Senior Accountant Brent Gerber gave the staff report and PowerPoint Presentation (on file in the
Office of the City Clerk).
Mr. Gerber said that the State of California has suspended Proposition 1A and will borrow 8% of
all local agencies' property tax revenue in order to improve its budget deficit. He explained that
the State may not pay back the borrowed funds until June 2013. Mr. Gerber added that the
State has determined that a 2% interest rate will be added to the borrowed funds which will
result in the creation of a property tax receivable for the City.
Mr. Gerber provided three options available to the Board and Council to manage the property tax
receivables, stating that staff was recommending the agencies participate in the securitization
program, by selling the tax receivables to California Communities.
Mr. Gerber stated that the recent passing of SB 67 by the California Senate allows the
securitization to move forward.
Mr. Gerber explained how the securitization program would work, adding that all costs of
issuance and all interests on the bonds will be paid by the State; and, that there are no costs or
liabilities to the City for participating in the program.
In response to an inquiry from Council Member Packard, Finance Director Lisa Irvine stated that
California Communities is an organization to facilitate financing only.
October 20, 2009 JOINT SPECIAL MEETING OF THE CARLSBAD CITY
COUNCIL AND MUNICIPAL WATER DISTRICT
ACTION: On a motion by Mayor Pro Tern Kulchin, the Council adopted
RESOLUTION NO. 2009-264. approving the form of and
authorizing the execution and delivery of a purchase and sale
agreement and related documents with respect to the sale of
the Seller's Proposition 1A receivable from the State; and,
directing and authorizing certain other actions in connection
therewith; and,
Adopted RESOLUTION NO. 2009-265. approving the form of
and authorizing the execution and delivery of a purchase and
sale agreement and related documents with respect to the
sale of the Seller's Proposition 1A receivable from the State;
and, directing and authorizing certain other actions in
connection therewith for the Carlsbad Ranch Infrastructure
District; and,
AYES: Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
ACTION: On a motion by Vice President Kulchin, the Board adopted
RESOLUTION NO.1378. approving the form of and
authorizing the execution and delivery of a purchase and sale
agreement and related documents with respect to the sale of
the Seller's Proposition 1A receivable from the State; and
directing and authorizing certain other actions in connection
therewith.
AYES: Lewis, Kulchin, Hall and Packard and Blackburn.
NOES: None.
ABSENT: None.
By proper motion, the Joint Special Meeting of October 20, 2009 was adjourned at 7:15 p.m.
Assistant City Clerk/Assistant Secretary
Sherry Freisinger
Deputy Clerk