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CITY COUNCIL AGENDA ITEM NO. 5

Meeting Date: January 27, 2004

Subject/Title: Approve a resolution to retire the debt on the California Local Government Finance Authority Water and Sewer Revenue Bonds, Series 1994 A.

Submitted by: Pamela Ehler, Director of Finance and Information Systems

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a resolution to retire the debt on the California Local Government Finance Authority Water and Sewer Revenue Bonds, Series 1994 A.

PREVIOUS ACTION
In 1984, the City entered into a loan agreement with the Department of Water Resources (DWR) to finance the City’s water

On March 13, 1990, the City Council approved Resolution 90-50 amending the monthly Water Service Charges. One of those charges was the monthly Water Project charge for the purpose of debt requirement on the Water Treatment Plant.

In 1994, the City financed this department California Water and Sewer Funding Pool, a financing vehicle offered through the California Local Government Financer Authority (Resolution No. 94-160). This agreement allowed for prepayment after 10 years. The first opportunity to defease this debt is March 1, 2004.

BACKGROUND
The City developed the 1983 Brentwood New Water Supply Project with the construction completed in 1984. Work consisted of installing a 16” water main from downtown to the East Bay Municipal Utility District’s Mokelumne Aqueduce and construction of the filtration/chlorinator treatment plant at the water source location. A special project fund was established for the purpose of repaying a loan in the amount of $1,425,000 to the Department of Water Resources granted under the Safe Drinking Water Bond Law of 1976. This loan has been funded through a monthly charge to customers. The initial charge was $8.50 per month per customer, but in the last few years dropped to $1 per month per customer. That charge was dropped September 30, 2003, per City Council Resolution No. 2985 due to having sufficient funds available to pay this debt. Staff recommends retiring this debt. The City intends to pay $856,624.37 in full by March 1, 2004, giving the City an overall savings of $365,268.90 in interested and administration debt. The difference in this payoff will stay in the Water Enterprise Fund.

FISCAL IMPACT
The City will retire this debt, paying in full $856,624.37 by March 1, 2004, and will recognize an overall savings of $365,268.90.

ATTACHMENT
Resolution


RESOLUTION NO. ________________

APPROVE A RESOLUTION TO RETIRE THE DEBT ON THE CALIFORNIA LOCAL GOVERNMENT FINANCE AUTHORITY WATER AND SEWER REVENUE BONDS, SERIES 1994

WHEREAS, ;in 1984, the City entered into a loan agreement with the Department of Water Resources (DWR) to finance the City’s water

WHEREAS, on March 13, 1990, the City Council approved Resolution 90-50 amending the monthly Water Service Charges. One of those charges was the monthly Water Project charge for the purpose of debt requirement on the Water Treatment Plant;

WHEREAS, in 1994, the City financed this department California Water and Sewer Funding Pool, a financing vehicle offered through the California Local Government Financer Authority (Resolution No. 94-160). This agreement allowed for prepayment after 10 years. The first opportunity to defease this debt is February 1, 2004.

NOW, THEREFORE, BE IT RESOLVED by the City of Brentwood as follows:
Section 1. The City will retire this debt by paying in full $856,624.37 by March 1, 2004, resulting in a savings of $ $365,268.90 in interest and administrative debt. The balance of the funds will remain in the Water Enterprise.

PASSED, APPROVED AND ADOPTED on January 27, 2004 by the following vote:
AYES:
NOES:
ABSENT:

Brian Swisher
Mayor

Attest:
 

Karen Diaz, CMC
City Clerk
 

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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E-mail allcouncil@brentwoodca.gov