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File #: 20-2526    Version: 1 Name: Refinance of Lease Revenue Bonds, Series 2013
Type: Resolution Status: Passed
File created: 4/8/2020 In control: Town Council
On agenda: 5/5/2020 Final action: 5/5/2020
Title: Consider Adoption of Resolution Number 20-3984 Approving the Form and Authorizing the Execution of Certain Lease Financing Documents in Connection with the Refunding of the Outstanding Yountville Finance Authority Lease Revenue Bonds, Series 2013, and Authorizing and Directing Certain Actions with Respect Thereto.
Attachments: 1. Resolution, 2. Letter Agreement for Purchase, 3. Site and Facility Lease, 4. Lease Agreement, 5. Escrow Agreement, 6. Termination Agreement
Yountville Town Council Staff Report


DATE: May 5, 2020

TO: Mayor and Town Council

FROM: Steve Rogers, Town Manager; Celia King, Finance Director

TITLE
title
Consider Adoption of Resolution Number 20-3984 Approving the Form and Authorizing the Execution of Certain Lease Financing Documents in Connection with the Refunding of the Outstanding Yountville Finance Authority Lease Revenue Bonds, Series 2013, and Authorizing and Directing Certain Actions with Respect Thereto.
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DISCUSSION/BACKGROUND
In February 2013, the Yountville Financing Authority issued 2013 Lease Revenue Bonds in the amount of $4,260,000 to fund a seismic retrofit for the historic Town Hall building, and the reconstruction of streets and replacement of sewers on Madison and Yount streets. The Town is obligated to pay the debt from existing General Fund revenue sources, and therefore budgets an annual General Fund transfer to pay principal and interest payments applicable to the Town Hall seismic retrofit. Principal and interest payments for the portion of the sewer line replacement are funded with an annual transfer from the Wastewater Collection Capital Improvement Fund (64).

The 2013 Bonds permit the Town to cause the Authority to refinance the 2013 Bonds. The Town desires to refinance the 2013 Bonds in order to take advantage of a more favorable interest rate environment than at original issuance.

Due to the small size of the transaction, the Town's ability to generate material savings from the refinancing is heavily dependent upon certainty of execution of the refunding bonds and the ability to minimize transactions costs. In contrast to the 2013 Bonds where the bonds were offered to the market via a competitive auction, the purchaser of the 2020 Bonds is recommended to be a bank. By placing the bonds with a bank, the Town and the Authority avoid the costs (and the time commitment) associated with securing a bond rating and producing an offering document. Given the negative impac...

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