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City CouncilJune 27, 20232023 RIVERSIDE PUBLIC FINANCING AUTHORITY LOCAL MEASURE A SALES TAX REVENUE REFUNDING CERTIFICATES OF PARTICIPATIONFinance Department RiversideCA.gov2
1. In 2013, the City, through the Riverside Public Financing Authority, issued $35,235,000 Certificates of Participation (COPs) to finance a pavement rehabilitation programa. Program to address improvements to arterial and local streets throughout Riversideb. Approximately $20 million programmed for arterial streets; addressing about 24 miles c. Approximately $15 million programmed for local streets; addressing about 26 miles BACKGROUND 6/15/2023
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1. Source of repayment is limited to Measure A sales tax revenue received from Riverside County Transportation Commissiona. Validated in 2013 by the Superior Court of the County of Riverside2. Total remaining principal outstanding on the 2013 COP is $23,225,000BACKGROUND RiversideCA.gov4
OBJECTIVES OF THE FINANCING PLANThe finance team has developed a comprehensivefinancing plan for the Revenue Refunding COPs to achievethe following objectives:1. Refinance the 2013 COPs at a lower interest rate to generate debt service savings. 2. Continue with the same payment dates and terms as the Prior COPs, with a final maturity date of June 1, 2033. 3. Produce level annual payment savings through FY 2033. 6/15/2023
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CORE COMPONENTS OF THE FINANCING PLANThe transaction is proposed to close in July 2023, assuming market conditions are favorable and targeted savings can be achieved. 1. Estimated present value savings is expected to be approximately $2.41 million2. Annual average cash flow savings of approximately $277,000 each year through FY 2033 3. Savings will be available to the City to fund additional local streets and roads as designated under the ordinance of the Riverside County Transportation Commission RiversideCA.gov6
1. Staff from Finance Department, Public Works Department, and City Attorney's Office2. Bond Counsel: Stradling Yocca Carlson & Rauth3. Municipal Advisor: CSG Advisors Incorporated4. Underwriter: Piper Sandler & Co.5. Trustee: US Bank Trust CompanyFINANCING TEAM 2023 REFUNDING COP 6/15/2023
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Strategic Priority No. 5 High Performing Government Goal No. 5.4. – Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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That the City Council:1. Conduct a public hearing to receive comments relative to the proposed financingtransaction;2. Approve the City’s Financing Team of City staff and CSG Advisors Incorporated as theMunicipal Advisor, Piper Sandler & Co. as the underwriter, US Bank Trust Company as theTrustee and the firm of Stradling, Yocca, Carlson & Rauth as bond and disclosure counsel;3. Approve the resolution and other financing documents to authorize the issuance of theRefunding Certificates of Participation;4. Authorize the Mayor, City Manager, and Chief Financial Officer, or their designee, toexecute the documents and make certain changes as may be required to close thetransaction; and5. Upon closing of the Refunding Certificates of Participation Series 2023, authorize the ChiefFinancial Officer/Treasurer to make the necessary budget adjustments and/or appropriationsto properly record the refunding and financing expenses in accordance with governmentalaccounting standards.RECOMMENDATIONS 6/15/2023
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That the Riverside Public Financing Authority:1. Approve the resolution and other financing documents toauthorize the issuance of the Refunding Certificates ofParticipation; and2. Authorize the Executive Director and the Treasurer, or theirdesignee, to execute the documents and make certainchanges as may be required to close the transaction.RECOMMENDATIONS