FROM:
Management Services
SUBJECT:
Title
Issuance of Fontana Public Facilities Financing Authority Lease Revenue Bonds, Series 2021A
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RECOMMENDATION:
Recommendation
1. Adopt Resolution No. PFA 2021-002 of the Board of Directors of the Fontana Public Financing Authority authorizing the execution and delivery of an Escrow Agreement in connection with the issuance and sale by the Fontana Public Facilities Financing Authority of its Revenue Bonds to refinance the Fontana Public Financing Authority 2010 Lease Revenue Bonds and approving related actions.
2. Adopt Resolution No. PFA 2021-003 of the Board of Directors of the Fontana Public Financing Authority authorizing the execution and delivery of a Termination of Lease Agreement and approving related actions.
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COUNCIL GOALS:
• To practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
The City is planning to issue $28 million of Fontana Public Facilities Financing Authority Lease Revenue Bonds, Series 2021A, to finance the following:
• The costs of construction of Fire Station No. 81 consisting of approximately 13,247 square feet to be located at the corner of Sierra Avenue and Casa Grande in the northern end of the City. Fire Station No. 81 will be constructed to meet a goal of providing less than five-minute response time 90% of the time by the Fire Protection District. Construction is anticipated to begin in January 2022 and be completed in December 2022 The total construction costs are estimated at approximately $12 million.
• The costs of construction of the Fire Protection District Training Facility consisting of 3,500 square feet including a 50-seat training classroom, a training tower, office space and storage, to be located on the site of future Fire Station No. 80 on Cherry Avenue between State Route 210 and South Highland Avenue in the northwest end of the City. Construction is anticipated to begin in April 2022 and be completed in March 2023. The total construction costs are estimated at $10 million.
• The refinancing of the Fontana Public Financing Authority 2010 Lease Revenue Bonds (Fire Station No. 71 financing) which are currently outstanding in the aggregate principal amount of $4,995,000, to take advantage of historically low interest rates and produce present value savings of approximately $1.3 million.
This action is necessary to approve the issuance of the bonds and complies with the City’s debt management objectives. The following documents, in their materially correct form, are attached hereto:
1. Escrow Agreement,
2. Termination of Lease (2003), and
3. Termination of Lease (2010).
The companion actions to this item are on the City Council agenda and the Fontana Public Facilities Financing Authority agenda for your consideration.
FISCAL IMPACT:
Costs of issuance will be paid from gross bond proceeds. Budget adjustments for the bond issuance will be included in the Mid-Year Budget Review. Future debt service payments will be included in future budgets.
MOTION:
Approve staff recommendation.