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HomeMy WebLinkAboutItem 4.04 MAD 86-1CallOutstandBonds CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 26, 1993 SUBJECT: Q` ' Call of Outstanding Bonds of the San Ramon Road Specific Plan Improvement Assessment District on July 2, 1993 (Prepared by: Stan Stephens, Jr. ) EXHIBITS ATTACHED: Exhibit 1 : / Analysis of District's projected available funds and fund requirements for call of outstanding bonds. Exhibit 2: / Resolution Authorizing Notice of OtAdopt Advanced Maturity. RECOMMENDATION: Resolution FINANCIAL STATEMENT: See below. DESCRIPTION: Staff has projected that there will be sufficient assets in the San Ramon Road Specific Plan Improvement Assessment District Fund at June 30, 1993 to call (pay off) all outstanding bonds, including a 5% call premium on those bonds with maturities after July 2, 1993. The Official Statement and Street and Highway Code provide for an agency to call bonds, in part or total, when assets are available to do so. Staff projects all costs (bonds, premium, interest and other payables) can be paid with a surplus remaining of approximately $50, 694_ Exhibit 1 'provides a detailed analysis of the funds available. The source of assets available for the call of bonds includes several components. First, the early payoff of the assessments related to the Kildara Properties $298, 655 (less $21 ,980 due the General Fund for redemption premiums and processing fees) . Additionally, $34,700 remain from unused proceeds of the bond sale proceeds and $31 ,266 has been received from sale of excess property and miscellaneous revenue. The final significant component is from interest earnings on the Redemption and Reserve Funds accumulated over the years. The combination of all of these funding sources plus estimated assessments collected this year provides $555,255 in funds to call the outstanding bonds. This figure is shown in Exhibit 1 . Staff engaged the legal services of Mr. Robert Brunsell of Sturgis, Hess, Brunsell, and Sperry to advise us on the call proceedings and disposition of surplus funds. As shown in Exhibit 1 , it is estimated that only $504,561 of the estimated fund balance will be required to end all current obligations of the Assessment District. Exhibit 2 is a Draft Resolution which will allow Staff to proceed with the retirement of outstanding bonds. The "Notice of Advanced Maturity" was drafted by Mr. Brunsell for adoption by the City Council. It must be sent to all registered bondholders no later than April 28, 1993. Pursuant to Street and Highway Code section 10427: 1 . No further assessments will be collected from any of the properties after the call of remaining bonds. 2. An amount not to exceed $1 , 000 may be transferred to the General Fund. 3. Remaining assets will be used for maintenance of the improvements. The Public Works Director advises that traffic signal maintenance in this improvement project costs $5,500 to $6,000 per year and that periodic street overlay cost would be approximately $21 , 000. Surplus funds could be used for these and other directly related costs. Staff recommends that the City Council adopt the proposed Resolution. COPIES TO: ITEM NO. 44 CITY CLERK FILE L I r F City of Dublin San Ramon Road Specific Plan Improvement Assessment District Analysis of Fund Balances (Prepared April 1993) I. Funds Available Bond Reserve Fund Fund (712) (714) Total Cash Balance @ 3/31 /93 $400, 005 $105,800 $505,805 Property Taxes due 4/10/93 24, 150 0 24, 150 Interest - FY 92/93 (est) 20, 000 5, 300 25, 300 Total Available $444, 155 $111 , 100 $555, 255 II. Projected Expense of Calling All Bonds 7/2/93 • Payout: Bonds Payable - $440, 000 5% Call Premium (on $385, 000) 19, 250 Interest due 7/2/93 20, 831 FY 92/93 Attorney's Fee 2, 500 General Fund Payable - Payoff Redemption Fees & Premium 21 ,980 Total Remaining Payouts $504, 561 Surplus Funds $50, 694 a:srexh2.agenda#12 EXHRITL} / RESOLUTION NO. - 93 A RESOLUTION OF THE CITY COUNCIL ' - OF THE CITY OF DUBLIN AUTHORIZING NOTICE OF ADVANCED MATURITY SAN RAMON ROAD SPECIFIC PLAN IMPROVEMENT ASSESSMENT DISTRICT BONDS *****.********** WHEREAS,. on August 15, 1985 the City of Dublin issued Improvement Bonds for the San Ramon Road Specific Plan Improvement District; and WHEREAS, the bonds were used to finance the construction of public improvements including roadway construction and widening, traffic signal modifications, utility relocation and extension and other related improvements; and WHEREAS, the repayment of the bonds was undertaken through an Assessment District; and WHEREAS, the properties within said District paid assessments based upon the extent of benefit from the improvements; and WHEREAS, the City has analyzed the funds projected to be available as of July 1, 1993; and WHEREAS, it is projected that the City will have adequate funds available on July 1, 1993 to call all outstanding bonds; and WHEREAS, once all bonds have been called and retired, all assessments within • the District will cease; and WHEREAS, the calling of the bonds shall be undertaken by the City in accordance with Street and Highway Code Section 10427 and the recommendation of special legal counsel. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby direct Staff to distribute, in accordance with applicable laws, a "Notice of Advanced Maturity," which shall be largely in the form shown in Exhibit "A," attached hereto and by reference made a part of. BE IT FURTHER RESOLVED that Staff shall take all administrative actions . necessary to implement the retirement of all related assessments and calling of the outstanding bonds. PASSED, APPROVED AND ADOPTED this of April, 1993. AYES: NOES: • ABSENT: ABSTAIN: • Mayor ATTEST: City Clerk a:416Bonds.ag#12 NOTICE OF ADVANCED MATURITY IMPROVEMENT BONDS CITY OF DUBLIN SAN RAMON ROAD SPECIFIC PLAN IMPROVEMENT ASSESSMENT DISTRICT DATED AUGUST 15, 1985 TO WHOM IT MAY CONCERN, holders or owners of the Bonds shown above, the City of Dublin has advanced the maturity to and will redeem all of the outstanding Bonds on July 2 , 1993 (the "Redemption Date") . The Bonds will be redeemed at the principal amount thereof and a premium of 5% of said principal amount,, together with interest accrued to the Redemption Date. Interest on the Bonds redeemed shall cease to accrue on and from the Redemption Date. If the Bonds are not surrendered on the Redemption Date, there will be set aside to credit of holders or owners, the amounts as aforesaid. The amounts so set aside will be paid to the holders or owners of the Bonds upon demand and upon surrender and cancellation of the Bonds. For payment of the principal being redeemed, the Bonds. must be surrendered: • By Mail To: City of Dublin Finance Department P. O. Box 2340 Dublin, CA 94568 Telephone: (510) 833-6640 IMPORTANT: Federal Tax Law requires individual holders of municipal bonds to submit their Taxpayer Identification Number (Social Security Number) with each bond presented for payment, whether by sale, maturity or early redemption. It is requested that a form W-9 be submitted at the time the bonds are presented for payment. FAILURE to comply with the Tax Law will subject the payment of principal to Backup Withholding Provisions of the Tax Law which requires the withholding of 31% of the principal as tax. CITY OF DUBLIN Dated: April 28, 1993 \'A" "A"