Successor Agency to the Manteca Redevelopment Agency Agenda
Memo to: Manteca City Council
From: Jeri Tejeda, Finance Director
Date: September 17, 2019
Subject: Refunding of Tax Allocation Bonds issued by the former Manteca Redevelopment Agency.
title
Adopt the resolution approving the Successor Agency's Issuance of Tax Allocation Refunding Bonds and taking related actions.
body
Background:
The former Manteca Redevelopment Agency issued multiple issues of bonds to finance and refinance its redevelopment activities. A portion of these bonds remain outstanding. After the upcoming principal payment on October 1, 2019, the remaining outstanding principal amount will be $99,370,000.
Due to the dissolution of redevelopment agencies, the Successor Agency is now responsible for paying the bonds. The Successor Agency is authorized to issue bonds to refund (i.e., refinance) these remaining bonds, with the approval of the San Joaquin Countywide Oversight Board and the State Department of Finance.
Urban Futures, Incorporated (the Municipal Advisor to the Successor Agency), in consultation with RBC Capital Markets, LLC (the underwriter), has prepared the attached Savings Report. Based on market conditions as of August 21, 2019, the issuance of refunding bonds will generate savings of approximately $24.8 million, or approximately $1.08 million a year. The final savings amount will depend on the market interest rates in effect when the refunding bonds are sold, which is anticipated to be in December 2019.
Discussion:
Estimated Savings to Successor Agency, Taxing Entitles (including the City of Manteca).
Principal and interest payments on the bonds are payable from a portion of the property tax revenues collected in the former Redevelopment Agency's redevelopment project area. This portion of the property tax revenues is commonly referred to as "tax increment." After the former Redevelopment Agency's dissolution, tax increment is no longer distributed ...
Click here for full text