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09222026-Regular Agenda-26-attachment-PowerPoint

Long Beach City Council
September 22, 2026

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09222026-Regular Agenda-26-attachment-PowerPoint
Meeting
September 22, 2026
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Long Beach City Council
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Text extracted from the city's file for reading and search. Open the original on longbeach.primegov.com. That file is the official record.

Financial Management
Department
Revolving Lines of
Credit
Tuesday, September 22, 2026

2 2
Financing Team
• City & Public Utilities Dept’s Finance Team
• Kutak Rock, LLP , Bond Counsel
• KNN Public Finance, Municipal Advisor
• Wells Fargo, North America
• Chapman and Cutler LLP , (Bank Counsel)
3 3
Bridge Financing Capital Projects
• Bridge Financing
• Provides a short-term solution to pay for capital projects until long –term financing can be secured
• Maximizes financial flexibility by allowing the City to borrow when capital funds are needed. This allows for construction schedules to be met, thus reducing construction delays and costs increases.
• Limitations
• Can only be used to finance capital projects
• Cannot be used to pay for operating needs

4 4
Legal Debt Structure for RLOCs
• City General Fund RLOC
• Lease-leaseback structure is a specialized legal structure • City pledges properties as security, but
• City maintains ownership and operations throughout
• Wells Fargo only has a “leasehold interest”
• Pledged Properties Include:
• Pool Facility (Natatorium) at Silverado Park
• Lincoln Parking Garage
• Broadway Parking Garage
• Sewer & Gas Enterprise
• Net revenue bond structure is a common legal structure for how enterprise operations structure and pay for capital projects.

5 Questions?

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