2016/04/26 City Council Resolution 2016-38RESOLUTION NO. 2016-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT
PARK AUTHORIZING AND DIRECTING THE CITY MANAGER AND
FINANCE DIRECTOR TO USE RETAINED EARNINGS IN THE WATER
FUND AND TAKE ALL OTHER ACTION NECESSARY TO PREPAY THE
CITY'S OBLIGATIONS UNDER ITS 2002 INSTALLMENT PURCHASE
AGREEMENT WITH THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
WHEREAS, in order to finance improvements to its water system in 2002, the City entered
into an installment purchase agreement (the "2002 Installment Purchase Agreement") with the
California Statewide Communities Development Authority ("CSCDA") pursuant to which the City
agreed to make certain payments from the net revenues of the water system (the "2002 Installment
Payments"); and
WHEREAS, CSCDA issued bonds (the "2002 Bonds") secured and payable in part from the
2002 Installment Payments and made a portion of the proceeds from the sale of the 2002 Bonds
available for the construction of the aforesaid water system improvements; and
WHEREAS, the remaining 2002 Installment Payments (and the corresponding outstanding
2002 Bonds) are in an aggregate principal amount of $895,000, are payable on each April 1 and
October 1 through October 1, 2022 and bear interest at annual rates of 4.00% and 4.50%; and
WHEREAS, given the relatively short remaining life of the 2002 Installment Payments, it
makes economic sense for the City to use retained earnings in the Water Fund to pay off the
remaining 2002 Installment Payments (resulting in the redemption of the corresponding 2002
Bonds), as this would enable the City to save future interest payments of approximately $146,800
and total annual debt service payments of approximately $150,000 through October 1, 2022;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park
that the City Manager and the Finance Director are authorized and directed to use retained earnings
in the City's Water Fund to prepay the City's obligations under the 2002 Installment Purchase
Agreement and to take any and all steps necessary to effect such prepayment at the earliest date
reasonably practical.
DULY AND REGULARLY ADOPTED this 26th day of April, 2016.
CITY OF ROHNERT PARK
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Ginala ke„ ayor
ATTEST:
JC,
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Caitlin Saldanha, Deputy City Clerk
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