2013 05 21 SAAgendas and staff reports are now
available on the City's web page:
www.la-guinta.org
SUCCESSOR AGENCY
To The La Quinta Redevelopment Agency
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
REGULAR MEETING ON MAY 21, 2013 AT 4:00 P.M.
CALL TO ORDER
ROLL CALL:
Agency Members: Evans, Franklin, Henderson, Osborne, Chairperson Adolph
CLOSED SESSION - NONE
PUBLIC COMMENT
At this time, members of the public may address the Successor Agency on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes. The Successor Agency values your comments; however in accordance
with State law, no action shall be taken on any item not appearing on the agenda unless it
is an emergency item authorized by GC 54954.2(b).
CONFIRMATION OF AGENDA
PRESENTATIONS — NONE
WRITTEN COMMUNICATIONS — NONE
APPROVAL OF MINUTES
1 . MINUTES OF MAY 7, 2013
SUCCESSOR AGENCY TO RDA AGENDA 1
MAY 21, 2013
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1 . DEMAND REGISTER DATED MAY 21, 2013
2. TREASURER'S REPORT DATED MARCH 31. 2013
3. REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2013
DEPARTMENT REPORTS
BUSINESS SESSION
1 . TAX ALLOCATION BOND ISSUE REFUNDING
STUDY SESSION
1 . PRELIMINARY FISCAL YEAR 2013/2014 BUDGET
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta,
Redevelopment Agency will be held on June 4, 2013 commencing with closed
session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers,
78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
1, Susan Maysels, Agency Secretary of the City as Successor Agency to the La
Quinta, Redevelopment Agency, do hereby declare that the foregoing agenda was
posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on
the bulletin boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas
and at the Stater Brothers Supermarket at 78-630 Highway 111, on May 17, 2013
DATED: May 17, 2013
SUSAN MAYSELS, Agency Secretary
Successor Agency to the
La Quinta Redevelopment Agency
SUCCESSOR AGENCY TO RDA AGENDA 2
MAY 21, 2013
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special
equipment is needed for the hearing impaired, please call the City Clerk's Office at
777-7103, twenty-four (24) hours in advance of the meeting and accommodations
will be made.
If special electronic equipment is needed to make presentations to the Successor
Agency, arrangement should be made in advance by contacting the City Clerk's
Office at 777-7103. A one (1) week notice is required.
If background material is to be presented to the Successor Agency during a
meeting, please be advised that eight (8) copies of all documents, exhibits, etc.,
must be supplied to the City Clerk for distribution. It is requested that this take
place prior to the beginning of the meeting.
Any writings or documents provided to a majority of the Successor Agency
regarding any item on this agenda will be made available for public inspection at the
City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta,
California, 92253, during normal business hours.
SUCCESSOR AGENCY TO RDA AGENDA 3
MAY 21, 2013
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
TUESDAY. MAY 7. 2013
A regular meeting of the La Quinta City Council in their capacity as Successor
Agency to the La Quinta Redevelopment Agency ("SA") was called to order at
5:37 p.m. by Vice Chairperson Franklin.
PRESENT: Agency Members Evans, Henderson, Osborne, Vice Chair Franklin
ABSENT: Chairperson Adolph
MOTION — A motion was made and seconded by Agency Members Evans/Osborne
to excuse the absence of Chairperson Adolph. Motion passed: ayes 4, noes 0,
absent 1 .
CLOSED SESSION — None
PUBLIC COMMENT — None
CONFIRMATION OF AGENDA — Confirmed
PRESENTATIONS — None
WRITTEN COMMUNICATIONS — None
APPROVAL OF MINUTES
MOTION — A motion was made and seconded by Agency Members Henderson/
Evans to approve the minutes of May 7, 2013 as submitted. Motion passed:
ayes 4, noes 0, absent 1.
CONSENT CALENDAR
1 . DEMAND REGISTER DATED MAY 7, 2013
MOTION — A motion was made and seconded by Agency Members Evans/
Henderson to approve the Consent Calendar as recommended. Motion passed:
ayes 4, noes 0, absent 1.
DEPARTMENT REPORTS — None
CITY AS SUCCESSOR AGENCY TO RDA 1 MAY 7, 2013
BUSINESS SESSION — None
STUDY SESSION — None
ADJOURNMENT
There being no further business, it was moved by Agency Members Evans/
Henderson to adjourn at 5:38 p.m. Motion passed: ayes 4, noes 0, absent 1.
Respectfully submitted,
SUSAN MAYSELS, Agency Secretary
Successor Agency to the dissolved
La Quinta Redevelopment Agency
CITY AS SUCCESSOR AGENCY TO RDA 2 MAY 7, 2013
T4hf 4 4 gab&
CITY /gAj HA / FA MEETINGDATE: May 21, 2013
ITENITITLE: DEMAND REGISTER DATED MAY 21, 2013
RECOMMENDED ACTION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC BEARING:
IN
It is recommended that the Successor Agency of the La Quinta Redevelopment Agency
receive and file the demand register dated May 21, 2013 of which $7,670.40 represents
Successor Agency expenditures as detailed below:
Vendor: Account #:
Becky Caha 237-9001-702.32-07
Becky Caha 237-9001-702.32-07
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
None.
BACKGROUND/ANAILYSIS:
Amount: Purpose:
$4,501.65 PA1 Housing Consultant
$3,168.75 PA1 Housing Consultant
By adoption of Resolution No. 2012-002, the City of La Quinta has affirmatively elected to
be the Successor Agency of the La Quinta Redevelopment Agency. Pursuant to Health
and Safety Code Section 341 77(a), the Successor Agency of the La Quinta
Redevelopment Agency shall continue to make payments required pursuant to an adopted
enforceable obligations payment schedule.
Pursuant to Health and Safety Code Section 34173(e), the liability of the Successor
Agency of the La Quinta Redevelopment Agency, when acting pursuant to the powers
granted under ABX1 26, are limited to the extent of the total sum of property tax revenues
it receives pursuant to part 1.85 of ABX126 (e.g., Health and Safety Code Sections
34170 — 34190) and the value of assets transferred to it as Successor Agency for the
dissolved La Quinta Redevelopment Agency.
ALTERNATIVES:
None.
Respectfully submitted,
Report prepared by: Sandra Mancilla, Account Technician
Report approved for submission by: Robbeyn Bird, Finance Director
AGENDA CATEGORY:
COUNCIL�A MEETING DATE: May 21, 2013 BUSINESS SESSION:
ITEM TITLE: RECEIVE AND FILE TRANSMITTAL OF CONSENT CALENDAR: 2
TREASURER'S REPORTS AS OF MARCH 31, 2013
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
It is recommended that the Successor Agency to the La Quinta Redevelopment
Agency Board receive and file the Treasurer's reports.
(PLEASE SEE RELATED CONSENT ITEM ON CITY COUNCIL AGENDA)
OF
AGENDA CATEG40RY:
CITY/SA/HA/FA MEETING DATE: May 21, 2013 BUSINESS SESSION:
ITEM TITLE: RECEIVE AND FILE REVENUE AND CONSENT CALENDAR: 3
EXPENDITURE REPORT DATED MARCH 31, 2013
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Receive and File.
EXECUTIVE SUMMARY:
This report presents the monthly and year-to-date revenues and expenditures of the
Successor Agency to the La Quinta Redevelopment Agency dated March 31, 2013.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
The Finance Department submits monthly Statements of Revenues and Expenditures
for the Successor Agency to the La Quinta Redevelopment Agency for the Board's
review and approval.
ALTERNATIVES:
None.
Report prepared by: Robbeyn Bird, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. Revenues and Expenditures Report for March 31, 2013
ATTACHMENT 1
SUCCESSORAGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1 Admin (237)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Admin (238)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
TOTAL SUCCESSOR AGENCY - ADMIN
PROJECT AREA NO. I Project (231)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Project (232)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
TOTAL SUCCESSOR AGENCY - PROGRAM
TOTAL SUCCESSOR AGENCY
07101/2012 - 0313112013
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
476,656.00
205,061.00
271,595.00
43.020%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
15,400.00
0�00
15,400.00
0.000%
492,056.
5,995.00
41.670%
323,939.00
0.00
323,939.00
0.000%
0.00
0.00
0.013
0.000%
0.00
0.00
0.00
0.000%
19,500m
0.00
19,500.00
0.000%
343,439.00
0.00
343,439.00
0.000%
24.540%
835,495.00
205,061.00
630,434.00
0.00
6,734,968.00
(6,734,968,00)
0.000%
0.00
18,862.27
(18,86Z27)
0.000%
0.00
2,478.95
(2,478.95)
0.000%
15,400.00
22,598.00
(7,198.00)
146.740%
15,400.00
6,778,907.22
(6,763,507.22)
44018.880%
192,876.00
0.00
192,876.00
0.000%
0.00
0.00
0.00
0.000%
0.00
8,798.55
(8,798.55)
0.000%
19,500.00
8,798.55
10,701.45
45.120%
212,376.00
17,597.10
194,778.90
8.290%
227,776.00
6,796,504.32
(6.568,728.32)
2983.850%
1,063,271.00
7,001,565.32
(5,938,294.32)
658.490%
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOWIMODERATE TAX FUND:
County of Riverside
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
Transfer In
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
County of Riverside
Allocated Interest
Non Allocated Interest
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers In
TOTAL CAPITAL IMPROVEMENT
2011 TAXABLE HOUSING BOND FUND: (249)
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers In
TOTAL 2011 TAXABLE HOUSING BOND
0710112012 - 0313112013
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
6,227,990.00
0.00
6,227,990.00
0.000%
0�00
2.69
(2.69)
0.000%
0.00
1,901.84
(1,901.84)
0.000%
0.00
165.26
(165.26)
0.000%
0.00
0.00
0.00
0.000%
0.00
- 1.432.94
'1,502-73
(1,432.94)
0,000%
6,227,990.0
6,224,487.27
0.060%
10,273,472.00
0.00
10,273,472.00
0.000%
0.00
0.00
0.00
0.000%
0�00
260.76
(260.76)
0.000%
0.00
0.00
0.00
0.000%
10,273,472.00
260.76
10,273,211.24
0.000%
0.00
1,943.68
(1,943.68)
0.000%
15,400.00
8,102.74
7,297.26
52,620%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
15,400.00
10,046.42
b,353.58
65.240%
0.00
0.00
0.00
0.000%
10,000.00
19,158.04
(9,158.04)
191.580%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0100
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
1
191.580%
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE TAX FUND:
County of Riverside
Allocated Interest
Non Allocated Interest
TransferIn
TOTAL LOWIMOD TAX
2004 LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale proceeds
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
DEBT SERVICE FUND:
County of Riverside
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
Misc Revenue
Sale of land
Transfers In
TOTAL CAPITAL IMPROVEMENT
2011 TAXABLE NON -HOUSING BOND FUND: (417)
Pooled Cash Mlocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers In
TOTAL 2011 TAXABLE NON -HOUSING BOND
07/0112012 - 0313112013
ADJUSTED
REMAINING
%
BUDGET
RECEIVED
BUDGET
RECEIVED
2,665,855.00
0.00
2,665,855.00
0.000%
0.00
13.36
(13.36)
0.000%
0.00
60.95
(60.95)
0.000%
0.00
705.78
(705.78)
0.000%
2.665.855.00
780.09
2,665,074.91
0.030%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
2,376.25
(2,376.25)
0.000%
0.00
0.00
0.00
0.000%
0.00
2,376.25
(2,376.25)
0�000%
941,946.00
0.00
941,946.00
0.000%
0.00
0.00
0.00
0.000%
0.00
1,336.70
(1,336.70)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
941.946 00
1,336.70
940,609.30
0.140%
0.00
0.00
0.00
0.000%
19,500.00
8,798.55
10,701.45
45.120%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0�000%
0.00
0.00
0.00
0.000%
19,500.00
8,798.55
10,701.45
45.120%
0.00
0.00
0.00
0.000%
0.00
580.00
(580,00)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
580.00
(580.00)
0.000%
SUCCESSORAG5NCY
ADJUSTED
03/31/13
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBER50
BUDGET
PROJECT AREA NO. 1:
SERVICES
640.045.00
99.350.32
0.00
540,694.68
REIMBURSEMENT TO GEN FUND
458,900.00
305,936.00
0.00
152.964.00
TRANSFERS OUT
0.00
0�00
0.00
0.00
TOTAL PA 1 - Ad.IrI
1.098,945.00
405.286.32
O.Go
693.0-8.68
PROJECT AREA NO. 2:
SERVICES
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0�00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL PA 2 - AdMin
�0.000,00
0.00
0.00
TOTAL SUCCESSOR AGENCY - Ad.m
1.098.94
8.68
PROJECT AREA NO. 1.
SERVICES
5.499,961.00
41,800.14
0.00
5,458,160.86
BOND PRINCIPAL
0.00
0.00
0.00
0.00
BONDINTEREST
6,624,928.00
6,631,462.06
0.00
(6,534.06)
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
TRANSFERS OUT
221,M 2
0 00
0.00
227.776.00
TOTAL PA 1 - Prograr�12,352,
'o
6.673.2T�.
�00��005.679.402.80
PROJECT AREA NO. 2:
SERVICES
0.00
0.00
0.00
0.00
BOND PRINCIPAL
BONDINTEREST
0.00
0.00
0�00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL PA 2 - Progm
0.00
TOTAL SUCCESSOR AGENCY - Ptogmm
12.352A-&00
6,673T262,20
0.00
5.679.402.80
TOTAL SUCCESSOR AGENCY
6,373,061.48
13,451.610.00
7,078.548.52
0�00
SUCCESSOR AGENCY TO THE
ADJUSTED
313112013
REMAJINING
LA QUINTA REDEVELOPMENT AGENCY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 1:
LOWIMODERATE TAX FUND:
SERVICES
0.00
0�00
0.00
0.00
BOND PRINCIPAL
2.071,650.00
1.723.250.00
0.00
348,400.00
BOND INTEREST
2,105.578.00
2.106.578.32
0.00
(0.32)
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
TRANSFERS OUT
4,712.252.00
4,612.073.47
0�00
1GO.178.53
TOTAL LOWIMOD TAX
8.889,480.OG
8,440,901.79
0.00
�48578.21
DEBT SERVICE FUND:
SERVICES
16,600.00
0.00
0.00
16,600.00
BOND PRINCIPAL
3,308.050.00
3.308,050.00
0.00
0.00
BOND INTEREST
3,289.181.00
3,289.480.49
0.00
(299.49)
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL DEBT SERVICE
3-31
�00 6 �597 530 49
0.00
16.30061
CAPITAL IMPROVEMENT FUND
SERVICES
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
TRANSFERS OUT
9.209,072.00
26.159.00
0.00
9,182.913.00
TOTAL CAPITAL IMPROVEMEN
9,209,072.00
26,169.0
913.00
2011 TAXABLE HOUSING SOND(249)
SERVICES
0.00
0.00
0.00
0.00
TRANSFERS OUT
25 514,502.00
0.00
0.00
25,514,502.00
TOTAL 2011 TAXABLE HOUSING BOND
25!514,502.00
0,00
0.00
2 5,514.502.00
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 2
ADJUSTED W31a013 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
LOWIMODERATE TAX FUND:
SERVICES
0.00
0.00
0.00
0.00
BOND PRINCIPAL
623.70G.00
623.700.00
0.00
0.00
BONDINTEREST
1.028,862.00
1,028.860.86
0.00
1.14
REIMBURSEMENT TO GEN FUND
0.00
0,00
0.00
0.00
TRANSFERS OUT
13,429,7
0
2!025
00,047.97
TOTAL LOWIMOD TAX
15.082.RN29
14:5.2-:N. 12
"NIN
iuu,u4u.11
2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
0.00
0.00
0.00
0.00
LAND
0.00
0.00
0.00
0,00
TRANSFERS OUT
2.111,H4 0
?L 0
0.00
2.726,884.00
TOTAL LOW/MOD BOND
2.997. 6
C'4�2
1711120 02U
0.00
2,726,084.00
DEBT SERVICE FUND:
SERVICES
0.00
0.00
0.00
0�00
BOND PRINCIPAL
175,000.00
175,000.00
0.00
0.00
BOND INTEREST
382,484.00
382,483.69
0.00
0.31
TRANSFERS CUT
0�00
0.00
0.00
G.00
TOTAL DEBT SERVICE
0.00
0.31
CAPITAL IMPROVEMENT FUND:
-
SERVICES
0.00
0.00
0.00
0.00
CAPITAL
0.00
Goo
0.00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
TRANSFERS OUT
8,798.55
0.00
10,701.45
TOTAL CAPITAL IMPROVEMEN f
NANNOo
1
10,701.45
2011 RDA 2 TAXABLE BOND FUND:(417)
SERVICES
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMENT
753,649.00
753,648.91
0.00
0.09
TRANSFERS OUT
2.399.786.00
0,00
O.GO
2,399,786.00
TOTAL RDA NO. 2 TAXABLE BOND
3.153,435.00
153.64U.91
0.00
2.399,786.09
T4hf 4 4 QUM&
CITY/ SA/HA/ FA MEETINGDATE: May 21, 2013 AGENDA CATEGORY:
BUSINESS SESSION: 1
ITENITITLE: TAX ALLOCATION BOND ISSUE CONSENT CALENDAR:
REFUNDING
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Authorize the Executive Director to initiate the process to refund the former
Redevelopment Agency's Tax Allocation Bonds in the amount of $197,575,000.
EXECUTIVE SUMMARY:
The former La Quinta Redevelopment Agency (RDA) issued tax allocation
bonds in order to advance fund public facility, infrastructure, economic
development and affordable housing initiatives. While the RDA no longer
exists, the Successor Agency is responsible to fund bond debt service
payments until all bonds are repaid (the final payment for the current bonds
occurs in 2034).
The current low interest rate environment affords the Successor Agency the
opportunity to refinance $197,575,000 of the former RDA's 1998, 2001,
2002, 2003 and 2004 bonds. The resulting interest cost savings would
reduce annual debt service by $1,200,000. The total cost savings would be
$22,000,000 over the next 20 years.
The school districts, County, City and other taxing agencies would benefit
from this cost savings by receiving the property tax revenue that would
otherwise be used for bond debt service.
Refinancing all of these bonds at one time reduces issuance costs, which
increases the residual fund balance available for the City and other taxing
agencies.
FISCAL IMPACT:
The overall estimated savings of approximately $1.2 million annually or
$22,000,000 over twenty years is calculated after all costs associated with the
issuance of the refunding bonds have been paid. These costs have been
conservatively estimated at $4.3 million, which includes bond insurance, surety
bond fee, and legal and consultant costs. Current interest rates on the impacted
bonds range from 4.5% to 6.44% and are estimated to range from 2% to 5% upon
refinancing.
BACKGROUND/ANALYSIS:
Starting in 1985, the former RDA issued tax allocation bonds to raise capital to
invest in infrastructure, public facility, economic development and affordable
housing initiatives. Projects included the Cove retention basin and flood control
improvements, Cove curb, gutter, street and water/sewer improvements,
Whitewater Chanel improvements, and Highway 111 improvements. Tax allocation
bond proceeds were also used to fund SilverRock property acquisition and
development, affordable housing development and economic development
initiatives. Bond debt service payments are funded by property tax revenue. When
the former RDA was eliminated in February 2012, the Successor Agency to the
RDA assumed responsibility to ensure these debt service payments are made.
These payments are classified as enforceable obligations and are tracked on the
Recognized Obligation Payment Schedule (ROPS), with payments authorized twice
annually.
California Health and Safety Code (HSC) authorizes the Successor Agency to
undertake proceedings for the refinancing of outstanding bonds and other
obligations of the RDA, subject to the conditions contained in HSC §34177.5.
Upon review, it has been determined that refinancing is in the best interest of the
Successor Agency and that the statutory prerequisites can be met if the refinancing
is approved. Additionally, the costs related to refunding proceedings can be
recovered as authorized by HSC §341 77.5(f). Final approval authority resides with
the Oversight Board and the DOF.
The tax allocation bonds being considered for refinancing include those issued in
1998, 2001, 2002, 2003, and 2004. These bonds were used for a variety of
projects, with $120 million allocated to finance capital projects in RDA Project
Areas 1 and 2, and the remaining $78 million used to finance projects benefitting
low and moderate income housing.
Prior to its dissolution, the RDA issued the following bonds:
Project Area 1
1998 Bonds
2001 Bonds
2002 Bonds
2003 Bonds (Taxable)
Project Area 2
1998 Bonds
2011 Bonds
$15,760,000.00
$15,760,000.00
$48,000,000.00
$48,000,000.00
$40,000,000.00
$33,645,000.00
$26,400,000.00
$22,215,000.00
2028
5.20%
2031
5.00% to 5.10%
2032
5.00% to 5.125%
2032
6.24% to 6.44%
2033
$
6,750,000.00
$
5,285,000.00
$
6,000,000.00
$
5,965,000.00
2039
Financing Authority (Housing B
2004 Bonds $90,000,000.00 $77,455,000.00 2034
2011 Bonds $28,850,000.00 $28,850,000.00 2036
5.125% to 5.25%
5.375% to 8.15%
4.50% to 5.25%
3.75% to 8.07%
The current economic environment provides the City with an opportunity to lower
the costs of financing, which would result in an increase in property tax revenue
allocations to all taxing agencies. Additionally, in the event the City does not
prevail in its litigation regarding the repayment of the $41 million in City General
Fund loans to the former RDA, the bond refinancing would position the Successor
Agency to repay up to $13 million of this amount using the allowed method
outlined in AB 1484.
AB 1484 allows for 50% of any ROPS surplus over the 2012/2013 base year to be
applied to repay city loans to a former redevelopment agency. The law does
specify that loans to the Supplemental Educational Revenue Augmentation Fund
(SERAF) take first priority. Once the SERAF balance is paid, the City's share must
be split with 20% designated to the Low and Moderate Housing Fund and 80%
allowed to be applied to the outstanding RDA loan obligation. This will allow for
approximately $600,000 to accrue to the housing account. The remaining 50%
ROPS surplus is divided across the taxing agencies as revenue.
The savings from this proposed refinancing will result in a proportional increase in
property tax revenue distributed to all taxing agencies. The exact distribution will
be impacted by the City's litigation with the State regarding the repayment of City
loans to the former RDA, as a portion of the savings may be applied to fund City
loan payments.
The overall estimated savings are as follows:
9/1/2013
$ 12,825t348.65
$ 12t825t348.65
$
9/1/2014
19t458t419.78
18t229t950.41
It228t469.37
9/1/2015
19t456t964.28
18t227t825.88
It229J38.40
9/1/2016
19t455t292.78
18t225t741.48
lt229t551.30
9/1/2017
19t461t455.28
18t238t396.78
lt223tO58.50
9/1/2018
19t458tO29.78
18t221t387.76
It236t642.02
9/1/2019
19t460t687.52
18t239t395.86
ItMt291.66
9/1/2020
19t462t720.28
18t230t721.12
It231t999.16
9/1/2021
19t468t339.78
18t248t455.96
lt2l9t883.82
9/1/2022
19t465t701.02
I8t238tO5O.50
It227t650.52
9/1/2023
19t459J34.52
18t225t627.90
It233t506.62
9/1/2024
19t461J07.02
18t231t465.50
lt229t641.52
9/1/2025
19t463t5O3.52
18t235t659.50
It227t844.02
9/1/2026
19t460t373.76
18t238t231.50
ItMJ42.26
9/1/2027
19t461t940.26
18t243J73.50
ItMt766.76
9/1/2028
19t456t636.52
18t225t890.50
It230t746.02
9/1/2029
19t456t448.02
18t384tO4O.50
ItO72t407.52
9/1/2030
19t464t619.76
18t388t575.50
ItO76tO44.26
9/1/2031
19t461t489.00
18t386J33.50
ItO75t355.50
9/1/2032
19t465t256.76
18t733tO4O.50
732t216.26
9/1/2033
9t573t5I6.00
9t331t3I5.00
242t201.00
9/1/2034
9t580J83.50
9t379t815.00
200t368.50
9/1/2035
3t625J36.50
3t625J36.50
-
9/1/2036
3t627t778.00
3t627t778.00
-
9/1/2037
936tOO7.50
936tOO7.50
-
9/1/2038
935t697.50
935t697.50
-
9/1/2039
935t497.50
935t497.50
-
Total
$411,7970284.79
$ 38809880359.80
$ 2208080924.99
I ncludes al I outstanding bonds: PA I's 1998 Bonds, 2001 Bonds, 2002 Bonds, 2003 Bonds;
PA 2's 1998 Bonds, 2011 Bonds; and Financing Authority's 2004 Bonds and 2011 Bonds
2 Includes proposed 2013 Refunding Bonds debt service, plus PA 2 2011 Bonds and
Fin a nci ng Authority's 2011 Bonds
It is anticipated that the refinancing will be split into two series of bonds. The
2013 Series A Bonds will be issued as Federally tax-exempt and the 2013 Series B
Bonds will be issued as Federally taxable. The tax status on the bonds is
determined by how the proceeds of the previous bonds were spent and Federal Tax
law and the number of prior refinancings.
Interest rates on the bonds are conservatively estimated to range from 2% to 5%
with the resulting yields ranging from 0.9% to 4.22% on the tax-exempt series.
Current interest rates on the impacted bonds range from 4.5% - 6.44%. Taxable
rates are estimated to range from 1. 108% to 4.69% with yields the same.
The savings attributable to individual financings are estimated as follows:
9/1/2013
- $
-
$ -
$ - $
- $
- $
9/1/2014
154,358.33
349,357.43
186,161.88
294,916.30
40,847.36
202,828.07
1,228,469.37
9/1/2015
153,980.00
346,695.00
185,506.26
297,327.04
41,062.50
204,567.60
1,229,138.40
9/1/2016
155,280.00
347,645.00
187,506.26
298,031.14
38,262.50
202,826.40
1,229,551.30
9/1/2017
150,250.00
350,995.00
183,256.26
299,115.44
40,250.00
199,191.80
1,223,058.50
9/1/2018
154,150.00
351,495.00
187,806.26
296,726.74
41,981.26
204,482.76
1,236,642.02
9/1/2019
151,460.00
349,045.00
185,956.26
294,398.84
38,350.00
202,081.56
1,221,291.66
9/1/2020
151,855.00
349,295.00
187,556.26
298,748.40
40,287.50
204,257.00
1,231,999.16
9/1/2021
150,960.00
346,920.00
182,956.26
297,925.20
41,875.00
199,247.36
1,219,883.82
9/1/2022
153,690.00
346,845.00
187,256.26
298,570.00
38,112.50
203,176.76
1,227,650.52
9/1/2023
154,870.00
351,390.00
185,031.26
298,823.20
39,087.50
204,304.66
1,233,506.62
9/1/2024
154,590.00
349,685.00
185,606.26
298,696.00
40,887.50
200,176.76
1,229,641.52
9/1/2025
153,050.00
350,350.00
184,906.26
294,362.00
42,300.00
202,875.76
1,227,844.02
9/1/2026
155,190.00
348,130.00
182,875.00
297,058.00
38,387.50
200,501.76
1,222,142.26
9/1/2027
150,810.00
347,915.00
184,512.50
296,412.00
39,287.50
199,829.76
1,218,766.76
9/1/2028
155,050.00
349,395.00
184,618.76
297,319.50
39,800.00
204,562.76
1,230,746.02
9/1/2029
347,370.00
186,531.26
294,691.50
42,775.00
201,039.76
1,072,407.52
9/1/2030
349,425.00
186,012.50
298,528.00
40,462.50
201,616.26
1,076,044.26
9/1/2031
350,305.00
184,800.00
298,102.00
38,100.00
204,048.52
1,075,355.52
9/1/2032
187,881.26
298,700.00
40,700.00
204,935.00
732,216.26
9/1/2033
43,000.00
199,201.00
242,201.00
9/1/2034
200,368.52
200,368.52
Total $
2,299,543.33 $
6,292,257.43
$ 3,526,737.02
$ 5,649,451.30 $
905,916.12 $
4,246,119.93 $
22,909,925.03
The currently outstanding principal and proposed amounts of bonded debt
outstanding following refinancing is projected to be as follows:
Project Area I
1998 Bonds
15,760,000.00
2001 Bonds
48,000,000.00
2002 Bonds
33,645,000.00
2003 Bonds (Taxable)
22,215,000.00
Project Area 2
1998 Bonds
5,285,000.00
2011 Bonds
5,965,000.00
5,965,000.00
Financing Authority (Housing Bonds)
2004 Bonds
77,455,000.00
2011 Bonds
28,850,000.00
28,850,000.00
Proposed 2013 Bonds
2013 Tax Exempt Bonds
154,625,000.00
2013 Taxable Bonds
42,950,000.00
As an added benefit, the strategy put forth will result in two financings being
issued to replace six that are currently outstanding which will simplify the
obligation schedule. The remaining 2011 issues will remain untouched leaving four
issues outstanding when all is said and done. The bonds to be refinanced will be
payable on the same dates (March 1 and September 1) and will mature on their
regularly scheduled date without extension.
In summary, refinancing these bonds will create a surplus that could possibly bring
the City some relief in paying off the RDA loans. Regardless of the outcome,
refinancing does create savings and opens up revenues. The $22 million projected
savings over 20 years, if unencumbered by the potential RDA loan obligation, will
benefit the taxing agencies with approximately $14 million going to schools, $5
million to Riverside County, $1.6 million to the water district, $1.2 million to the
City, and $600,000 to recreation and parks.
ALTERNATIVES:
The alternative to refinancing would be to leave the bonds as they stand. The
obligation would remain at the existing higher costs of financing and savings will
not be recognized.
Report prepared by: Amy McCormick, Business Analyst
Report approved for submission by: Frank J. Spevacek, Executive Director
Tit�t 4 4 au"(V
CITY�FA MEETING DATE: May 21, 2013 AGENDA CATEGORY:
ITEM TITLE: FISCAL YEAR PRELIMINARY 2013/2014 BUSINESS SESSION:
BUDGET CONSENT CALENDAR:
STUDY SESSION:
PUBLIC BEARING:
RECOMMENDED ACTION:
Receive the Fiscal Year Preliminary 2013/2014 Budget and direct staff to prepare a Fiscal
Year 2013/2014 Final Budget for the June 18, 2013 Successor Agency to the La Quinta
Redevelopment Agency Meeting.
EXECUTIVE SUMMARY:
The 2013/2014 proposed budget consists of the Successor Agency to the La Quinta
Redevelopment Agency administrative and operational budgets.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2013/2014 revenues, operational appropriations and debt
service funding are included in this proposed budget. The Fiscal Year 2013/2014 budget
totals $$19,890,300 in appropriations and $19,903,500 in estimated revenues.
BACKGROUND/ANALYSIS:
The Successor Agency 2013/2014 proposed budget is incorporated in the budget
document discussed in agenda item S1.
ALTERNATIVES:
Staff is requesting:
1 Review and comment on the Fiscal Year 2013/2014 Successor Agency to the La
Quinta Redevelopment Agency Preliminary Budget and provide direction regarding
any proposed changes to the document; or
2. Provide staff with alternative direction.
Report prepared by: Robbeyn Bird, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager