ACTION:
____________________________
Clerk/Secretary
Department: Finance Item No: C1
Prepared by: Mike Sylvia, Director/Treasurer Meeting Date: January 28, 2025 Approved by: John Conley, City Manager Agenda Location: Consent Calendar SUBJECT: 2025 LEASE REVENUE REFUNDING BONDS – NON-CONTINGENT EXPENSES RECOMMENDATION: Adopt City Council Resolution No. 2025- , amending the Operating Budget for Fiscal Years 2023/24 and 2024/25, and amending the Capital Project Budget for Fiscal Years 2024/25 and 2025/26.
CORRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility.
PRIOR ACTION: On December 10, 2024, adopted City Council Resolution No. 2024-197, amending City Council Policy 700-12, Bond Issuance and Debt Incurrence, and authorization of a Bond Financing Team (Vote: 5-0).
STATEMENT ON THE SUBJECT: In 2015, the Vista Joint Powers Financing Authority issued Lease Revenue Refunding Bonds to refinance prior obligations, reducing debt service costs and enhancing fiscal flexibility. As part of ongoing fiscal management, staff identified an opportunity to refund the 2015 Lease Revenue Refunding Bonds (LRRBs) in 2025, which, if successfully completed, will result in additional debt service cost savings for the City. To proceed with the refunding, the City must incur certain preparatory expenditures that are non-contingent and essential to the refunding process. Specifically, $80,000 is needed to fund title reporting services for the pledged assets which will back the new 2025 LRRBs and the Standard and Poor’s (S&P) rating agency bond rating on the same.
Proposition L Reserves were established to support the capital assets which were constructed with the original 2007 bond issue and to ensure intergenerational equity of the assets for current and future Vista residents. Utilizing $80,000 from these reserves, which currently total $17.9 million, aligns with their intended purpose of these funds by reducing the cost of the remaining debt service and facilitates prudent fiscal management. Staff recommends approval of this appropriation to advance the refunding process without delay, noting that refunding activities will only proceed if current market conditions continue to provide a significant savings opportunity which meets or exceeds the requirement detailed in City Council Policy 700-12, Bond Issuance and Debt Incurrence.
FISCAL IMPACT: Approval of this item will authorize the allocation of $80,000 from Proposition L Reserves (0010000.310744) to a new 2025 LRRB fund’s Cost of Issuance expense account (4250750.555010.) These funds will be utilized to cover non-contingent expenditures related to the 2025 refunding process of the 2015 Lease Revenue Refunding Bonds.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Approved above recommendation, adopted City Council Resolution No. 2025-09. Vote: 5-0
MEETING DATE: January 28, 2025 PAGE 2
SUBJECT: 2025 LEASE REVENUE REFUNDING BONDS – NON-CONTINGENT EXPENSES EXHIBITS:
1.City Council Resolution No. 2025- , amending the Operating Budget for Fiscal years 2023/24 and 2024/25, and amending the Capital Project Budget for Fiscal Years 2024/25 and 2025/26 01/28/2025 C1 2 of 4
00029213 7
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF
VISTA, CALIFORNIA, AMENDING THE OPERATING BUDGET FOR FISCAL YEARS 2023/24 AND 2024/25, AND AMENDING THE CAPITAL PROJECT BUDGET FOR FISCAL YEARS 2024/25 AND 2025/26
The City Council of the City of Vista does resolve as follows:
1.Findings. The City Council hereby finds and declares the following:
A.On June 27, 2023 the City Council adopted Resolution 2023-117 approving the Operating Budget for Fiscal Years 2023/24 and 2024/25.
B.On June 11, 2024 the City Council adopted Resolution 2024-86, approving the Six-Year Capital Improvement Program, the Capital Project Budget for Fiscal Years 2024/25 AND 2025/26, and authorizing appropriations for Fiscal Years 2024/25 and 2025/26 capital projects.
C.The City Council desires to amend the Operating and Capital Project Budgets at this time to reflect changed circumstances.
2.Action.
A.The Operating Budget for Fiscal Years 2023/24 and 2024/25 and the Capital Project Budget for Fiscal Years 2024/25 and 2025/26 are amended as set forth in Exhibit A.
3.Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on January 28, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
JOHN B. FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
APPROVED
Walter C. Chung
20240917153352
01/28/2025 C1 3 of 4
EXHIBIT 1
RESOLUTION NO. 2025-
CITY COUNCIL FOR THE CHARTERED CITY OF VISTA
PAGE 1 EXHIBIT A
1. Account Number Account Description Increase Decrease 0010000.310744 Proposition L Reserve 80,000$
0010900.590425 Transfer out to JPFA 2025 80,000$
4250090.482001 Transfer In from General Fund 80,000$
4250750.555010 Cost of Issuance 80,000$
Appropriations are hereby made to fund the refunding of the 2015 Lease Revenue Bonds. 01/28/2025 C1 4 of 4