Modify Resolution No. 7520 to Correct Amount of Revenue on General Obligation Refunding Bonds
September 5, 2023
DATE: September 5, 2023
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Henry Chen, Financial Services Manager/City Treasurer
SUBJECT: MODIFY RESOLUTION NO. 7520 TO CORRECT AMOUNT OF
REVENUE NECESSARY TO PAY FOR THE AUTHORIZED DEBT
SERVICE FOR THE 2021 GENERAL OBLIGATION REFUNDING
BONDS
CEQA: Not a Project
Recommendation: Approve
SUMMARY
On August 15, 2023, the City Council approved Resolution No. 7520, determining the amount needed from property taxes to pay debt service on the 2021 General Obligation Refunding Bonds. Staff subsequently noticed that the revenue amounts listed for each series of the bond on the resolution were switched. To ensure proper documentation, a modification to reflect the correct revenue amount for each series of the bond is necessary.
It is recommended that the City Council approve the modification to Resolution No. 7520, to correct the amount of revenue to be raised from property taxes for Fiscal Year 2023-24 for each series of the 2021 General Obligation Refunding Bonds.
DISCUSSION
On Resolution No. 7520, the amount of revenue listed as needed was $618,100 for the Series Police Station and $417,700 for the Series Measure A. These figures were switched, and the corrected amounts should be as follows:
Series 2021 General Obligation Refunding Bonds
(Series Police Station): $417,700
Series 2021 General Obligation Refunding Bonds
(Series Measure A): $618,100
Modify Resolution No. 7520 to Correct Amount of Revenue on General Obligation Refunding Bonds
September 5, 2023
The Resolution needs to be modified so the correct amounts are collected for each series of the 2021 General Obligation Refunding Bonds.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
There is no fiscal impact to the General Fund as a result of this action.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project and is, therefore, exempt under the California Environmental Quality Act (“CEQA”); and approve the modification to Resolution No. 7520, determining the amount of revenue to be raised from property taxes for Fiscal Year 2023-24 to pay for the debt service on the 2021 General Obligation Refunding Bonds (Series Bond Measure A and Series Police Station Project).
Attachment: Modified Resolution No. 7520
1 RESOLUTION NO. 7520
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DETERMINING THE AMOUNT OF REVENUE TO BE
RAISED FROM PROPERTY TAXES FOR FISCAL YEAR 2023-24 TO PAY FOR THE DEBT SERVICE ON THE 2021 GENERAL OBLIGATION
REFUNDING BONDS (SERIES BOND MEASURE A AND SERIES
POLICA STATION PROJECT)
WHEREAS, in a special election held on November 2, 1999, City of Arcadia voters approved the issuance of General Obligation Bonds Series 2001 in the principal of $8 million for the construction of a police facility; the 2001 Bonds were defeased by the issuance of General Obligation Bonds Series 2012 on November 6, 2012; the 2012 Bonds were defeased by the issuance of General Obligation Refunding Bonds (Series Police Station Project) on November 23, 2021 and property taxes are to be raised for the principal and interest payments of the indebtedness through tax levy; and WHEREAS, in the general municipal election held on April 11, 2006, City of Arcadia voters approved the issuance of General Obligation Bonds Series 2011 in the principal of $8 million for the construction of a grade separation, which is located at the intersection of Santa Anita Avenue and the Foothill Extension of the Metropolitan Transit Authority Gold Line; the 2011 Bonds were defeased by the issuance of General Obligation Refunding Bonds (Series Bond Measure A) on November 23, 2021 and property taxes are to be raised for the principal and interest payments of the indebtedness through tax levy.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS.
SECTION 1. The following is the amount of revenue necessary during Fiscal Year 2023-24 to pay for the authorized debt service on the above-described Bonds:
2 Series 2021 General Obligation Refunding Bonds
(Series Police Station): $417,700
Series 2021 General Obligation Refunding Bonds
(Series Measure A): $618,100
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 15th day of August, 2023.
________________________
Mayor of the City of Arcadia
ATTEST:
______________________
City Clerk
APPROVED AS TO FORM:
______________________
Michael J. Maurer
City Attorney