HomeMy WebLinkAboutRES 2004-41RESOLUTION NO. 2004-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DIAMOND BAR, COUNTY OF LOS ANGELES, CALIFORNIA,
CREATING A BOND RETIREMENT RESERVE TO ACCELERATE
THE REPAYMENT OF THE 2002 LEASE REVENUE BONDS ISSUED
BY THE DIAMOND BAR PUBLIC FINANCING AUTHORITY
WHEREAS, the City Council of the City of Diamond Bar is a member of the Diamond Bar Public Financing
Authority, and;
WHEREAS, the City Council of the City of Diamond Bar in 2002, authorized the sale of lease revenue bonds in
the amount of $13,755,000, and;
WHEREAS, the City Council of the City of Diamond Bar authorized the issuance of variable rate lease revenue
bonds rather than five percent fixed rate bond, and;
WHEREAS, the actual interest rate as compared to the five percent fixed rate has been lower, and;
WHEREAS, the City has experienced significant savings, and
WHEREAS, the City Council of the City of Diamond Bar desires to create a Bond Retirement Reserve against
the City's General Fund balances, and;
WHEREAS, such reserve shall be calculated based on the interest savings experienced as a result of the
issuance of the variable rate lease revenue bonds, and
WHEREAS, the reserve shall be based on the interest savings from the date of issuance, December 18, 2002
forward, and;
WHEREAS, Fiscal Years 2003 and 2004 have ended prior to the adoption of this resolution,
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Diamond Bar, California, as
follows:
Section 1, A portion of the General Fund Reserves shall be identified as a Bond Retirement Reserve for the
repayment of the 2002 Lease Revenue Bonds issued by the Diamond Bar Public Financing Authority.
Section 2. The reserve shall be calculated at the end of each May, and based on the difference between the
previous twelve month's actual interest expenditure and the interest based on the fixed rate of five percent less
the letter of credit, confirming letter of credit and remark:;ting fees.
2004--41
Section 3. The reserve shall also include the interest savings experienced from the date of issuance. This
portion of the reserve will be based on the difference between the actual interest expenditure and the five
percent fixed interest rate less the letter of credit, confirming letter of credit and remarketing fees for the period
of December 18, 2002 through May 31, 2004.
Section 4. Upon adoption of this Resolution, the City will restrict $505,519 in the General Fund reserves
for FY 2004-05 to account for the interest rate savings from the time the bonds were issued through May 31,
2004.
Section 5. That the Mayor of the City of Diamond Bar shall sign and the City Clerk shall certify to the
passage and adoption of this Resolution No. 2004-XXXX.
PASSED, APPROVED AND ADOPTED this 20th day of July , 2004.
Ro ert P. Zirbes, Mayor
1, Linda C. Lowry, City Clerk of the City of Diamond Bar do hereby certify that the foregoing
Resolution was passed, and approved and adopted at a regular meeting of the City Council of the City of
Diamond Bar held on the 20thday of _ july 2004, by the following vote:
AYES: COUNCILMEMBERS: Chang, Huff, O'Connor, M/Zirbes
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: MPT/Herrera
ABSTAINED: COUNCIL MEMBERS: None
ATTEST: Wz,0!keg"
nda C. Lowry, Cit erk
City of Diamond Bar
2004-41