HomeMy WebLinkAbout2008-02-19Minutes
Huntington Beach Public Financing Authority
Council Chambers, Civic Center
2000 Main Street
Huntington Beach, California 92648
Tuesday, February 19, 2008
The meeting of the Huntington Beach Public Financing Authority was called to order at
7:10 p.m.
Public Financing Authority Roll Call
Present: Hansen, Hardy, Bohr, Cook, Coerper, Green, and Carchio.
Absent: None.
(City Council/Public Financing Authority) Joint Public Hearing Held — Adopted Public
Financing Authority (PFA) Resolution No. 17 Authorizing the Issuance and Sale of Lease
Revenue Bonds to Refund the Authority's Outstanding PFA Lease Revenue Bonds, 1997
Series A (Public Facilities Project), and to Refund a Portion of the Authority's
Outstanding PFA Lease Revenue Bonds, 2000 Series A (Capital Improvement Financing
Project)
Chair Cook announced that this is the time noticed for a public hearing to consider a
communication from the Finance Director and the City Clerk transmitting the following
Statement of Issue: Should the City of Huntington Beach and Huntington Beach Public
Financing Authority (PFA) refinance prior debt issues in order to realize significant annual debt
service savings?
Finance Director Dan Villella gave an oral report that included the fluctuation in interest rates
and the review conducted by consultants and staff. He identified the net present value and
economic savings of refinancing prior debt issues to be approximately $700,000.
Councilmember Hansen indicated that while attending the League of Cities Annual Conference
last year, he attended a seminar on bond potential, and explained a valid point made that
cities that engage in the competitive bidding of these bonds were able to shave additional basis
points off, versus sole sourcing or using a specific group. Director Villella responded that
the bonds presented tonight for consideration would be part of the competitive bid process. In
the future, Councilmember Hansen would like to investigate other market -driven
competitive program opportunities, and offered to circulate the applicable materials he obtained
from the conference.
Mayor Cook,declared the public hearing open.
Jack Brooks, indicated that he had a prepared presentation but most of his concerns were
addressed under Director Villella's report. He stated that since most financing requires
interest be paid up front, he is of the opinion that the City would lose all those interest payments
when it refinanced. He commented that Director Villella indicated that the term would not
February 19, 2008 — Public Financing Authority Minutes — Page 2 of 3
change, so he questioned if the City would lose interest from previous refinancings and/or from
refinancing at this time. He discussed a theory of paying a loan off as soon as possible to
realize a greater savings than you could by refinancing.
Councilmember Coerper inquired if the City would lose money by refinancing and what the
costs would be. Director Villella clarified that there is no extension as to the time to pay off this
debt, and that the savings are due to the interest rates. He also explained that the bonds
mature annually at various interest rates, with the latest bonds maturing in the latter part of 2030
at 5.5% interest rate, and indicated that value and savings are factored.into the net value
savings of the anticipated $700,000 as reported.
There being no further persons to speak on the matter and there being no further protests filed,
either written or oral, the Mayor closed the public hearing.
A motion was made by Coerper, second Bohr to
Public Financing Authority: Adopt Resolution No. 17, "A Resolution Authorizing the
Issuance and Sale of Lease Revenue Bonds to Refund the Authority's Outstanding Huntington
Beach Public Finance Authority Lease Revenue Bonds, 1997 Series A (Public Facilities
Project), and to Refund a Portion of the Authority's Outstanding Huntington Beach Public
Financing Authority Lease Revenue Bonds, 2000 Series A (Capital Improvement Financing
Project), and Approving Related Documents and Official Actions. "
and
City Council: Adopt City Resolution No. 2008-10, "A Resolution Approving Proceedings by the
Huntington Beach Public Financing Authority for the Issuance and Sale of Lease Revenue
Bonds to Refund the Authorityl's Outstanding Huntington Beach Public Financing Authority
Lease Revenue Bonds, 1997 Series A and to Refund a Portion of the Authorityl's Outstanding
Huntington Beach Public Financing Authority Lease Revenue Bonds, 2000 Series A (Capital
Improvement Financing Project), and Approving Related Documents and Official Actions. "
and
Public Financing Authority: Adopt Resolution No. 18, "A Resolution of the Huntington Beach
Financing Authority Designating the Time and Place of the Regular Meetings;
and
Public Financing Authority: Approve and Adopt the Minutes of December 17, 2007 from the
Annual Meeting of the Huntington Beach Public Financing Authority as written and on file in the
Office of the Secretary. The motion carried by the following roll call vote:
AYES: Cook, Carchio, Coerper, Bohr, Green, Hansen, and Hardy
NOES: None
February 19, 2008 — Public Financing Authority Minutes — Page 3 of 3
Adjournment — Public Financing Authority Meeting
Chair Cook adjourned the Huntington Beach Public Financing Authority Meeting and
Reconvened the City Council/Redevelopment Agency Regular Meeting at 7:20 p.m.
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