Resolution No.
STOCKTON CITY COUNCIL
AUTHORIZE THE CITY MANAGER AND CHIEF FINANCIAL OFFICER TO PURCHASE BONDS IN THE OPEN MARKET ISSUED BY THE STOCKTON PUBLIC FINANCING AUTHORITY, WATER REVENUE REFUNDING BONDS, SERIES 2019A In November 2019, the Stockton Public Financing Authority (the “Authority”) issued the 2019A Bonds in the amount of $54,785,000. The 2019A Bonds refunded bonds issued in 2013 in the original amount of $54,135,000 of which $53,270,000 was outstanding at the time of the refunding. There is currently $53,140,000 in 2019A Bonds outstanding, and Due to market outflows and Federal Reserve interest rate actions, yields have risen significantly in the U.S. Treasury market since the summer of 2020. There is now an opportunity to purchase, at a significant discount using Water Utility Fund cash, a portion of the 2019A Bonds and to cancel the bonds purchased; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
The City Manager and Chief Financial Officer, acting alone, are granted the authority to purchase, in the open market, bonds issued by the Stockton Public Financing Authority, Water Revenue Refunding Bonds, Series 2019A (Federally Taxable) in the currently identified approximate principal amount of $9.6 million with a not-to-exceed purchase price of $14 million.
Staff are authorized to take all steps necessary to document the purchase and to cancel the purchased bonds.
A budget appropriation from the Water Utility Fund is approved in a not to exceed amount of $14.0 million to complete the purchase in the event other owners wish to participate. //
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The City Manager is authorized to take whatever actions are necessary and appropriate to carry out the intent of this Resolution.
PASSED, APPROVED, and ADOPTED August 22, 2023 . ____________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
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ELIZA R. GARZA, CMC
City Clerk of the City of Stockton