9/5/2024
1 RiversideCA.gov1
RiversideCA.gov
PUBLIC HEARING FOR TAX EXEMPT LEASE REVENUE BONDS AND REFINANCING OF 2012A TAX EXEMPT LEASE REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $73 MILLION TO FINANCE CONSTRUCTION OF THE MUSEUM PROJECTCity Council/Public Financing AuthoritySeptember 17, 2024Finance Department RiversideCA.gov2
•In 2012 the City’s Public Finance Authority issued $41.24 million in Tax Exempt Lease Revenue Bonds to refinance 2003 Certificates of Participation and lower debt service costs•In 2019 the City’s Public Finance Authority issued $33.51 million in Tax Exempt Lease Revenue Bonds to fund the Main Library construction Project•In December 2023, the City approved a design bid project renovating and expanding the Museum of Riverside’s downtown site at 3580 Mission Inn AvenueBACKGROUND1 2 9/5/2024
2 RiversideCA.gov3
•In April 2022, City Finance released a competitive RFP to obtain an underwriting firm to finance the Museum project•Of the respondents Stifel Nicolaus & Company was selected as the lowest borrowing costsBACKGROUND RiversideCA.gov4
•City Staff include: Finance, City Attorney, City General Services, Museum•Bond Counsel: Stradling, Yocca, Carlson & Rauth LLP•Municipal Advisor: CSG Advisors, Inc.•Escrow Agent and Trustee: US Bank•Title Insurance: First American Title Company•Verification Agent: Causey, Demgen & Moore•Rating Agent: Standard & Poors•Underwriter: Stifel, Nicolaus & Company Inc.FINANCING TEAM3 4 9/5/2024
3 RiversideCA.gov5
1. Lease Revenue Bonds Secured by “Collateral”1. City Hall2. Lincoln Avenue Police Station and Patrol Building3. Bobby Bonds Park4. Corporation Yard Administration Building and Annex5. Main Library Facility6. Riverside Museum2. Refinance 2012A Lease Revenue Bonds3. Principal Not to Exceed $73 Million4. 12 Year Maturity – Corresponds to Measure Z Transaction and Use TaxPROPOSED TRANSACTIONS RiversideCA.gov6
1. Total Estimated Finance Charge - $593,0002. Aggregate Principal - $60.7 million, $6.6 million premium3. Amount of Estimated Bond Proceeds - $68.8 million4. Estimated Total Payment Amount to Final Maturity - $105 million5. Estimated Average Annual Debt Service Payment - $2.8 millionGOOD FAITH ESTIMATES5 6 9/5/2024
4 RiversideCA.gov7
List the Strategic Priority 5 – High Performing Government and Goal 5.4Achieve 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
RiversideCA.gov8
That the City Council and Public Financing Authority:1. Conduct a public hearing and adopt the attached Resolution of the City Council of the City ofRiverside Authorizing the Execution and Delivery by the City of a Second Supplement to GroundLease, Second Supplement to Lease Agreement, Second Supplemental Indenture, ContinuingDisclosure Certificate and a Bond Purchase Agreement in Connection with the Issuance ofRiverside Public Financing Authority Lease Revenue Bonds, Approving the Issuance of Such Bonds inan Aggregate Principal Amount of Not To Exceed $73,000,000, Authorizing the Distribution of anOfficial Statement In Connection with the Offering and Sale of Such Bonds and Authorizing theExecution of Necessary Documents and Certificates and Related Actions Bonds;2. Adopt the attached Resolution of the Board of Directors of the Riverside Public Financing AuthorityAuthorizing the Execution and Delivery by the Authority of a Second Supplement to Ground Lease,Second Supplement to Lease Agreement, a Second Supplemental Indenture, Second Supplementto Assignment Agreement and Bond Purchase Agreement in Connection with the Issuance ofRiverside Public Financing Authority Lease Revenue Bonds, Authorizing the Issuance of Such Bondsin an Aggregate Principal Amount of Not To Exceed $73,000,000, Authorizing the Distribution of anOfficial Statement in Connection with the Offering and Sale of Such Bonds and Authorizing theExecution of Necessary Documents and Certificates and Related Actions;RECOMMENDATIONS7 8 9/5/2024
5 RiversideCA.gov9
3. By at least five affirmative votes, authorize the City Manager, Chief Financial Officer, ordesignee to reappropriate $10,000,000 from the Capital Outlay Fund, Museum Expansionand Renovation project account back to the General Fund infrastructure reservesaccount, reflecting full debt financing of the Museum Project; and4. Upon closing of the Bonds, authorize the Chief Financial Officer, or designee, to makethe necessary budget adjustments and/or appropriations to properly record therefunding and financing expenses in accordance with governmental accountingstandards.RECOMMENDATIONS9