HomeMy WebLinkAbout1994-11-30; Parking Authority; Info; Parking Authority Bond ServiceNovember 30, 1994
To: Parking Authority of the City of Carlsbad
Via: Finance Director
Assistant Finance Director
From: Parking Authority Accountant
Recommended Action
Approve Resolution 3 A authorizing the call and redemption of the remaining
outstanding bonds of the 1981 Parking Revenue Bond Issue.
Item Explanation
In 1981, the Parking Authority approved a bond issue of $1.5 million in revenue bonds
at a coupon interest rate of 8%. Proceeds from the bonds were used for expansion
of the parking facilities at the Plaza Camino Real Shopping Center. On the 1981
issue, the current outstanding principal balance is $825,000, with $100,000 due on
February 1, 1995 and the balance in fiscal years through 2001.
Funds for debt service on the bonds are derived from lease payments paid by the
City of Carlsbad's General Fund. When funds are necessary to make principal and
interest payments on the bonds, lease payments are paid by the City to the bank
fiscal agent.
In the 1994-95 operating budget the City of Carlsbad included an $800,000
appropriation to be used over time to pay off the Parking Authority bonds. The City
thereby eliminated the need to budget for annual lease payments to the Authority.
Funds were transferred from the City's General Fund to the Parking Authority debt
service fund.
The Finance Department analyzed the fiscal impact of paying off the remaining
balance on the 1981 issue, taking into consideration future interest earnings, staff
time, trustee fees, premium on early redemption, and other charges. Several present
value calculations were done using different assumptions. The results indicate
savings over time by paying the bonds off at the next principal maturity date,
February 1, 1995, compared with following the debt schedule to final maturity in 2001.
The recommendation of the Finance Department is to proceed with calling the bonds.
The Parking Authority must instruct Bank of America, as trustee for the Parking
Authority, to redeem all outstanding bonds on the 1981 issue. Bank of America will
handle the required notification to the bondholders, and will send a letter to the City
showing the final cash balance needed as of January 31, 1995.
HILARY M. HOGAN
Exhibits:
1. Letter to Bank of America
2. Resolution
3. FAX from Bank of America listing outstanding bonds
City of Carlsbad
Office of the City Clerk
December 8, 1994
Gary Turchan
Bank of America
Corporate Trust Division #8510
333 South Beaudry Avenue, 25th Floor
Los Angeles, California 90017
RE: Trust Account #107798500, Carlsbad Parking Authority Bond Service
Dear Mr. Turchan:
The Parking Authority of the City of Carlsbad hereby instructs Bank of America as
fiscal agent to redeem all outstanding bonds of the 1981 Parking Revenue Bond Issue
on February 1, 1995.
See attached copy of the resolution authorizing the call and redemption of the bonds.
According to our records, the principal balance remaining on the 1981 issue is
$825,000.
Sincerely,
Frank Aleshire
Chairman of the Parking Authority
of the City of Carlsbad
Enclosure
cc: Hilary Hogan
1 2OO Carlsbad Village Drive • Carlsbad, California 92OO8-1 989 • (619)434-2808
1 RESOLUTION NO. 32
2 A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY
OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CALL AND
3 REDEMPTION OF THE REMAINING OUTSTANDING BONDS OF
4 THE 1981 PARKING REVENUE BOND ISSUE
5
WHEREAS, in 1981 the Parking Authority of the City of Carlsbad issued6
$1.5 million of revenue bonds, and the current outstanding principal balance
8 is $825,000; and
9 WHEREAS, bonds maturing on or after February 1, 1992 may be called
10 before maturity and redeemed, at the option of the Authority, with funds
derived from any source, on any interest payment date on or after February 1,
12
1991; and
13
WHEREAS, sufficient funds are available for the purpose of redeeming
15 the remaining outstanding bonds from the 1981 issue; and
16 WHEREAS, the Authority does hereby find it financially beneficial and
17 desirable, to proceed with the redemption of the 1981 Parking Revenue Bonds.
18 NOW, THEREFORE, BE IT RESOLVED, by the Parking Authority of the
19
City of Carlsbad, California, as follows:
20
1. That the above recitations are true and correct.21
22 2. That the Authority hereby authorizes the City Clerk to send
23 instructions to the bank fiscal agent, with a copy of this resolution, to redeem
24 all outstanding bonds of the 1981 issue on February 1, 1995.
25 ///
26
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27
28
1 3. That the Authority hereby authorizes the Finance Director to send
2 sufficient funds to the fiscal agent for the purpose of redeeming the bonds.
3 PASSED, APPROVED AND ADOPTED at a meeting of the Parking
4 Authority of the City of Carlsbad, held on the 8th day of December. 1994, by
5
the following vote:
6
AYES: Aleshlre, Agatep, and Arterburn
8 NOES: None
9 ABSENT: Miller and Aubel
10
11
FRANK ALESHIRE
13 Chairman of the Parking Authority
of the City of Carlsbad, California
14
15
16 ATTEST:
17
18
19 ALETHA L. RAUTENKRANZ
Clerk of the Parking Authority
20 of the City of Carlsbad, California
21 (SEAL)
22
23
24
25
26
27
28
3
Bond Call for the Parking Authority
of the City of Carlsbad, 1981 issue
Maturity
Date
01-Feb-96
01-Feb-97
01-Feb-98
01-Feb-99
01-Feb-2000
01-Feb-2001
TOTALS
! Redemption Outstanding Total
Cusip Date Principal Premium Payment Price^ r ~- •---•---• —— • — "~ ~~—-* ''— —
$100,250.00 100.25%
$100,500.00 100.50%
$125,937.50 100.75%
$126,250.00 101.00%
$126,562.50 101.25%
$152,250.00 101.50%
14
14
14
14
14
- —
2652BP
2652BQ8
2652BR6
2652BS4
2652BT2
142652BU9
01-Feb-95
01-Feb-95
01-Feb-95
01-Feb-95
01-Feb-95
01-Feb-95
$100,000.00
$100,000.00
$125,000.00
$125,000.00
$125,000.00
$150,000.00
$250.00
$500.00
$937.50
$1,250.00
$1,562.50
$2,250.00
I
$725,000.00 $6,750.00 $731,750.00
These figures do not
$33,000.00 interest
The premium is
redemption date to
include the $100,000.00 principal and
payments due on 2/1/95.
based on 1/4 of 1% per each year from the
:he maturity date (not to exceed 2%).
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