HomeMy WebLinkAbout1999/06/02 - Agenda Packet - Corrected page 117 CITY ()F RANCHO CUCAMONGA
STAFF REPORT
DATE: June 2, 1999
TO: Mayor and Members of the City Council
Jack Lam, AICP, City Manager
FROM: Rick Gomez, Community Development Director
SUBJECT: APPROVAL OF RESOLUTIONS TO REASSESS THE PROPERTIES
WITHIN ASSESSMENT DISTRICT NOS. 86-2 AND 89-1 AND APPROVING
REPORT OF THE ASSESSMENT ENGINEER AND TO APPROVE THE
ISSUANCE OF REFUNDING BONDS AND APPROVING FORM OF THE
BOND INDENTURE OF REASSESSMENT DISTRICT NO. 1999-1 AND THE
APPROVAL OF A CONTINUING DISCLOSURE AGREEMENT
PERTAINING TO ALL BONDS.
RECOMMENDATION:
It is recommended that the City Council approve the a~tached resolutions which approves the sale
of the special tax refunding bonds for Reassessment District 1999-1 for assessment districts 86-2 and
89-1. Those refunding bonds will replace and supercede all outstanding unpaid bonds for the
original assessment districts.
BACKGROUND:
The outstanding bond issues proposed to be rethnded include the fbllowing:
· Assessment District No. 86-2- Rancho Cucamonga Storm Drain
· Assessment District No. 89-1 - Milliken South o:fArrow Drainage
The anticipated savings projected to result from the refunding will be generated from several
interrelated sources:
1) The existence of favorable interest rate conditions in the municipal bond market.
2) The maturity of the assessment districts, i.e., completion of or substantial development
within the districts coupled with a diversification of ownership in certain districts, which
creates a better overall credit for the districts individually and collectively.
3) The proposed refunding structure which will create "coverage" of the debt service for the
refunding bonds and "cross collateralization" through the creation of a common reserve t~nd.
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