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Agenda Item 21.

City Council Meeting

Meeting Date:	06/15/2021
FROM:	Bill Gallardo

Subject:

Public Hearing to Consider Adoption of 2021-22 Operating Budget for the Brea Public Financing Authority

RECOMMENDATION

Adopt Resolution No. A 2021-02 appropriating funds for the Brea Public Financing Authority 2021-22 Operating Budget, as presented in the 2021-22 Proposed Budget document.

BACKGROUND/DISCUSSION

The Brea Public Financing Authority is a shared exercise of powers between the City of Brea and the former Brea Redevelopment Agency, created by a Joint Powers Agreement for the purpose issuing debt to finance capital improvements.

Currently, bonds outstanding with annual debt requirements payable from this fund include the Brea Public Financing Authority 2004 Lease Revenue Refunding Bonds and Brea Public Financing Authority 2010 Refunding Lease Revenue Bonds which have a final maturity on July 1, 2021 and are supported by the General fund which is reimbursed from the Successor Agency to the Brea Redevelopment Agency and the Brea Public Financing Authority 2010 Lease Revenue Bonds (2010 Lease Revenue Bonds) with a final maturity on April 2036 which are supported by the City's General Fund.

The 2010 Lease Revenue Bonds are in the process of being refunded with a projected average annual savings of $56,000 over the next fifteen years to the General Fund. The refunding is scheduled to be completed in July 2021 and projected savings for FY 2021-22 included in the proposed City General Fund budget. It is noted that the Debt Summary included in the budget book includes information regarding bonds outstanding as of June 30, 2021. Therefore to maintain consistency, the annual debt requirement related to this bond included in the budget book for this fund and proposed for adoption is based on current bonds outstanding. Staff will include appropriate adjustments as part of the first quarter budget adjustments for FY 2021-22.

During FY 19-20, the City refunded the Brea Public Financing Authority 2009 Water Revenue Refunding Bonds and the Brea Public Financing Authority 2010 Water Revenue Bonds which were supported by the City's Water Enterprise Fund. The new 2019 Water Revenue Refunding Bonds are paid directly from the City’s Water Enterprise Fund.

SUMMARY/FISCAL IMPACT

The fiscal impact for the Brea Public Financing Authority Operating Budget for 2021-22 is as follows:

	Fiscal Year 2021-22
Bond Principal	$1,360,000
Bond Interest	$ 215,739
Total	$1,575,739

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Alicia Brenner, Sr. Fiscal Analyst

Concurrence: Cindy Russell, Administrative Services Director

Attachments
Resolution