For Economic Development Committee May 27, 2020
TO: Honorable Economic Development Committee Members
APPROVAL: Rod Foster, City Administrator
FROM: Stephen Erlandson, Deputy City Manager
Title
Request the Economic Development Committee to Review and Discuss the Refunding of the 2008 Series B Merged Project Area (taxable) and the 2008 Series C Merged Project Area (taxable) Tax Allocation Bonds and Direct Staff to Forward the Item to the City Council and the Successor Agency Board to the Redevelopment Agency of the City of Rialto for Consideration.
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BACKGROUND:
As we all know, interest rates have been falling over the last 9 to 12 months to levels not seen in decades. The COVID-19 crisis has only accelerated that process to new all-time low levels. Government Agencies at all levels have been evaluating their current debt service payment schedules and, in those cases where the economics clearly demonstrate that a refunding makes sense, have taken actions to secure lower interest payments. Literally hundreds of millions of tax-payers' dollars have been saved.
The former Redevelopment Agency of the City (now known as the "Successor Agency") issued in 2008 its Tax Allocation Housing Set-Aside Bonds (Merged Project Area) Series B (taxable) and its Tax Allocation Bonds (Merged Project Area) 2008 C (taxable) at rates which were at an appropriate level for that period of time.
The Series B Bonds were issued in the par amount of $29,600,000 and the Series C Bonds were issued in a par amount of $21,965,000.
ANALYSIS/DISCUSSION:
When a former Redevelopment Agency issues refunding Bonds, ALL of the taxing jurisdictions within the borders of the former project areas benefit the refundings. When a City adopts a redevelopment plan, it captures a certain percentage of the property taxes collected by each governmental jurisdiction with property tax collection authority within the project area boundaries. In the case of Rialto, this means that the City, the county ...
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