Meeting_Body
REVISED
FINANCE, BUDGET AND AUDIT COMMITTEE
NOVEMBER 16, 2016
Subject/Action
SUBJECT: PROPOSITION C BONDS
ACTION: AUTHORIZE COMPETITIVE SALE OF BONDS
Heading
RECOMMENDATION
Title
ADOPT a resolution, Attachment A, that:
A. AUTHORIZES the competitive sale of Prop C Senior Lien Bonds (the "2017 Prop C Bonds") to finance capital projects in one or more transactions through June 30, 2017;
B. APPROVES the forms of Notice of Intention to Sell Bonds, Notice Inviting Bids, Supplemental Trust Agreement, Continuing Disclosure Agreement and Preliminary Official Statement, on file with the Board Secretary all subject to modification as set forth in the resolution;
C. AUTHORIZES taking all action necessary to achieve the foregoing, including, without limitation, the further development and execution of bond documentation associated with the issuance of the 2017 Prop C Bonds; and
D. REAFFIRMS AND UPDATES the Reimbursement Resolution approved by the Board on April 26, 2016 to reflect that the amount of the 2017 Prop C Bonds may be up to $500 million and reaffirms the intention that a portion of the proceeds of the 2017 Prop C Bonds will be used to reimburse expenditures made prior to the issuance of the 2017 Prop C Bonds.
(REQUIRES SIMPLE, SEPARATE MAJORITY VOTE)
Issue
ISSUE
The 2017 Prop C Bonds, with a par amount not to exceed $500 million of fixed rate bonds, will fund or reimburse LACMTA for Prop C eligible capital projects and expenditures and refinance commercial paper, the proceeds of which financed such costs. We want to obtain the funds needed for ongoing, planned and completed transportation projects before interest rates move higher.
Discussion
DISCUSSION
The Debt Policy provides guidelines for new money financings that may be long-term or short-term. Prop C new money bond issues are permitted to provide funding for eligible expenditures on highway, commuter rail, bus and rail capital projects.
The 2017 Prop C Bonds will be issue...
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