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Consent-General Government # 15.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Adopt resolution authorizing the Chief Financial Officer to execute redemption of the outstanding Willowbank Water Assessment Bonds. (No general fund impact) (Rinde) |
| Recommended Action |
- Adopt resolution authorizing the redemption of the Willowbank Water Assessment Series 2000 Bonds; and
- Authorize the Chief Financial Officer and the County Administrator to take necessary actions to execute the redemption of the bonds.
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| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
The Willowbank Water Assessment District was formed in 2000 at the southern edge of the City of Davis. The district with authorization of the County, was formed to improve public water service and fire protection in the district through installation of 118 service connections and water meters to connect to the City of Davis. The project at that time cost a total of $1.31 million however, 39 of the 118 parcels had the financial capacity to prepay their portion of the costs of the project.
With authorization of the County, the remaining 79 parcels were grouped together to support the issuance of the Series 2000 Willowbank Water Assessment Bonds which were a twenty year obligation that would be mature in fiscal year 2020-21. The bonds required the maintenance of a reserve fund equal to one year's debt service. The assessment district currently has sufficient resources in order to redeem (pay off) the bonds during the 2019-20 fiscal year. This will redeem the bonds in advance of the original scheduled maturity and will alleviate residents from needing to make any payment on the 2020-21 tax bill.
As the bonds are a legal instrument, in order to demonstrate the intent to redeem and notify the paying agent bank and investors of the redemption, staff are seeking authorization from the Board on the Resolution (Attachment A) and to authorize certain County officials (Chief Financial Officer and County Administrator) to take actions necessary to execute the redemption. The redemption will achieve minimal interest savings that would have been required during the 2020-21 fiscal year and recognizes the completion of this significant project. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with Government Financial Strategies, as financial advisor, and Parker Covert LLP, as bond counsel, in order to complete the bond redemption. |
| Competitive Bid Process |
| Not applicable. |
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