REQUEST FOR
CORONA UTILITY AUTHORITY ACTION
DATE: 05/17/2023
TO: Honorable Chairman and Board Members
FROM: Finance Department
SUBJECT:
Title
RESOLUTION AND OTHER OFFICIAL ACTIONS AUTHORIZING THE ISSUANCE OF THE CORONA UTILITY AUTHORITY 2023 WATER REVENUE REFUNDING BONDS
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EXECUTIVE SUMMARY:
This staff report asks the Corona Utility Authority to consider adopting a resolution that will provide authorization for the refunding, or refinancing, of the existing 2012 Water Revenue Bonds. The refunding of the bonds will provide lower interest rates, creating an estimated savings of $2.15 million over the life of the bonds.
RECOMMENDED ACTION:
Recommended action
That the City Utility Authority adopt Resolution No. 2023-001 authorizing the issuance of the Corona Utility Authority 2023 Water Revenue Refunding Bonds in the aggregate principal amount of not to exceed $23,000,000 in connection with the refinancing of certain improvements to the water enterprise of the Corona Utility Authority, authorizing and directing execution of an Indenture of Trust, authorizing the sale of the Bonds, approving a purchase contract and an official statement, and authorizing official actions and execution of related documents.
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BACKGROUND & HISTORY:
The Corona Utility Authority previously issued its 2012 Water Revenue Bonds (Water Projects) (the "2012 Bonds"). The proceeds were used to finance and refinance certain improvement projects to the water system (the "Water System"). The bonds became call-able, or eligible for refinancing in 2022. City staff and the financing team (as referenced in the Analysis section) started reviewing and discussing market conditions and the opportunity to refinance the bonds to a lower interest rate, generating a positive financial impact.
ANALYSIS:
The recommended actions identified in the resolution (the "Resolution") of the Corona Utility Authority (the "Authority") will approve the issuance by the Authority of its 2023 W...
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