8F
Date: October 7, 2025
To: Honorable Mayor and Members of the City Council
From: Ian Dailey, Finance Director | [email protected] Subject: Finance – Appropriate 2016 Certificate of Participation (COP) Bond Funds.
Expenditure: None.
RECOMMENDATION
Recommendation of the Finance Director that City Council appropriate $2,500,000 from the 2016 Certificate of Participation (COP) Bond proceeds to the City’s Capital Improvement Plan.
FUNDING
None required.
DISCUSSION
In 2016, the City issued $22,135,000 in Certificates of Participation (COP) bonds as part of refunding the City’s 2009 COPs. The City’s 2009 COPs were issued for the purchase of the 465 Crenshaw Blvd, the current home of the Mary K. Giordano Regional Transit Center. The refund was leveraged in 2016 to leverage improved interest rates and to generate additional capital funding for various projects around the City. Ultimately, after accounting for proceeds from the 2009 COP and Premiums on the new issuance, this resulted in $18.6 million paying off the 2009 COPs and creating $6.1 million for capital improvement projects. The primary focus of the capital improvements originally included a new Emergency Operations Center but this effort was later reprioritized allowing for the funding to be utilized for other critical capital investments. Most recently this funding source has partially supported efforts to remodel Fire Station #4 as well as the investments made in the first and second floors of the East Annex at City Hall.
Staff have identified a residual balance of approximately $2.5 million and are seeking City Council approval to appropriate this remaining balance of bonds funds so they are fully expended. In doing so, this appropriation will offset a series of projects originally funded, in whole or in part, by the General Fund. Some examples of projects to which this residual balance will be applied include, but are not limited to:
• Fire Station #4 Remodel
• Lago Seco Park Sewer Line Improvements
• Cultural Arts Center Roof Replacement
• La Carretera Block Wall Replacement
• City Hall Improvements: Building & Safety/West Annex/Main Building/Fire Prevention 1 City Council
October 7, 2025
Approval of this action will allow for these General Fund dollars to be leveraged for other Capital Improvements in the City’s parks and other critical areas in future budget cycles. As such, staff recommend Council appropriate $2.5 million from the 2016 Certificate of Participation (COP) Bond Proceeds to the City’s Capital Improvement Plan.
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