2024/06/25 City Council Resolution 2024-043 RESOLUTION NO. 2024-043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
APPROVING AND ADOPTING THE USE OF SEWER RATE STABILIZATION
FUNDS IN THE AMOUNT OF $140,090 TO ENSURE THE DEBT SERVICE
COVERAGE RATIO FOR THE SEWER SYSTEM REVENUE REFUNDING BONDS,
SERIES 2017 IS MET
WHEREAS; on July 25, 2017 the City Council authorized the preparation, sale and
delivery of the Sewer System Revenue Refunding Bonds, Series 2017; and,
WHEREAS, the Official Statement, the offering document for a municipal issuer, which
must be provided to every purchaser if the issuer prepares one; and,
WHEREAS, the Official Statement contains several requirements that the issuer, in this
case the City of Rohnert Park must meet in order to be in compliance with the debt covenant and
one of which is to meet a debt coverage ratio of 1.2; and,
WHEREAS, during the Covid 19 pandemic, a rate increase holiday was declared by the
City, and sewer rate increases were not implemented; and,
WHEREAS, to ensure that the debt coverage ratio will be met for FY 2023-24, staff has
taken numerous steps including:
• Notifying sewer operations that they should reduce spending to the extent possible until
further notice
• Consulting with Bond Counsel and the Financial Adviser that participated on the issuance
to verify the calculation and for advice
• Running revenue and expenditure projections through June 30 and making the
calculation; and,
WHEREAS, Bond Counsel and the Financial Advisor have advised that the City should
use the rate stabilization funds that have been set aside for this and other purposes.
NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that it does hereby authorize and approve the use of sewer rate stabilization funds in the
amount of$140,090 to ensure the debt service coverage ratio for the Sewer System Revenue
Refunding Bonds, Series 2017 for FY 2023-24 is met.
DULY AND REGULARLY ADOPTED this 25th day of June, 2024.
CITY OHNERT PARK
ATTEST: Su Adams, Mayor
Sylvia L as, ity Clerk
APP OVED AS T FORM:
Michelle . Ke yon, y Attorney
ELWARD: 4 .._, RODRIGUEZ: ii 1 SANBORN: GIUDICE: . .4DAM i./
A ES: ( 5) NOES: ( I,,p,) ABSENT: ( ABSTAIN:
Resolution 2024-043
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