City Council

(6) 14­0980­S1 CD 11 BUDGET, FINANCE AND INNOVATION COMMITTEE REPORT and AUTHORIZING RESOLUTION relative to the issuance and sale of City of Los Angeles Community Facilities District No. 4 (Playa Vista ­ Phase 1) Special Tax Refunding Bonds, Series 2024 in a principal amount not to exceed $40 million; and the execution of related documents and various actions. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. ADOPT the accompanying AUTHORIZING RESOLUTION attached to the City Administrative Officer (CAO) report dated August 2, 2024, attached to Council file No. 14­0980­S1, providing for the issuance and sale of the City of Los Angeles Community Facilities District No. 4 (Playa Vista – Phase 1) Special Tax Refunding Bonds, Series 2024 in a principal amount not to exceed $40 million; and the execution and delivery of various bond documents and other actions in connection therewith. Wednesday - August 2. AUTHORIZE the28, CAO2024 - to make technical changesPAGE 9 and adjustments as necessary to implement the Mayor and Council intentions as 1. ADOPT the accompanying AUTHORIZING RESOLUTION attached to the City Administrative Officer (CAO) report dated August 2, 2024, attached to Council file No. 14­0980­S1, providing for the issuance and sale of the City of Los Angeles Community Facilities District No. 4 (Playa Vista – Phase 1) Special Tax Refunding Bonds, Series 2024 in a principal amount not to exceed $40 million; and the execution and delivery of various bond documents and other actions in connection therewith. 2. AUTHORIZE the CAO to make technical changes and adjustments as necessary to implement the Mayor and Council intentions as described in the CAO report dated August 2, 2024, attached to the Council file. Fiscal Impact Statement: The CAO reports that there is no impact to the General Fund as a result of the recommendations contained in the report. The Series 2024 Bonds are payable solely from Mello­Roos special tax revenues collected from parcels within the City of Los Angeles Community Facilities District No. 4 (Playa Vista ­ Phase 1) (the District). All costs associated with this transaction will be paid by proceeds of the Series 2024 Bonds or existing special tax revenues, and in no event shall the General Fund be called upon for the repayment of any principal or interest on these bonds. Financial Policies Statement: The CAO reports that consistent with the City’s Financial Policies, all consultant and City costs associated with the issuance of bonds are paid by the District through the levy and collection of special taxes for this purpose. Also consistent with the City’s Mello­ Roos and Assessment Financing Policies, as refunding bonds, the Series 2024 Bonds exceed the City’s value­to­lien requirement, will not exceed the City’s maximum tax burden threshold of two percent of assessed value on property annually, will comply with the minimum debt service coverage ratio of 110 percent, will meet the reserve fund requirement, and will amortize in less than 25 years. Debt Impact Statement: The CAO reports that there is no debt impact to the General Fund from the approval of the recommendations in this report. The Series 2024 Bonds are payable solely from Mello­Roos special tax revenues collected from parcels within the District. A default in the repayment of Mello­Roos bonds would not adversely affect the City’s general credit rating because Mello­Roos bonds are not payable from the General Fund.