TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, Acting City Manager
FROM:
Steve S. Charelian, Acting Finance Director
Henry Mitzner, Controller
Libby Bretthauer, Financial Analyst
SUBJECT:Title
Approval of Refinancing of Underground Utility Assessment Districts 04-1, 04-3, 04-5, 05-2 and 05-6; Adoption of a Debt Management and Disclosure Policy (Acting Finance Director Charelian).
APPROVE; ADOPT RESOLUTIONS; ADOPT POLICY
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: a) adopt Resolution Nos. 18-0015, 18-0016, 18-0017 and 18-0018, as well as all related documents, approving the refunding (refinancing) of Underground Utility Assessment Districts 04-1, 04-3, 04-5, 05-2 and 05-6; and b) adopt a Debt Management and Disclosure Policy.
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FISCAL IMPLICATION:
The economic benefit from the refunding plan accrues directly to the homeowners with outstanding assessments. Based on current market conditions, assessment payers in Districts 04-1, 04-3 and 04-5 will save an average of $441 while Districts 05-2 and 05-6 will save an average of $1,568 from this refunding.
In addition, staff is recommending that unspent construction funds remaining after project completion be refunded to the current homeowners in Districts 05-2 and 05-6 as provided by State law. The total amount to be refunded is $593,556 and will be allocated based on the original assessment amounts. The refunds will come in the form of either a direct reduction in the amount refinanced or a cash refund for those who previously paid-off the assessment.
BACKGROUND:
In 2004 and 2005, several utility underground assessment districts (UUADs) were formed for the purpose of placing overhead wires and cables from the major utilities (electric, cable, internet) into underground conduits. At that time, homeowners had a choice of paying cash for the improvements, or participating in a bond issue. I...
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