Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Subject: Subordination Request for the 2017 Refunding Bonds of the Successor Agency to the Redevelopment Agency of the City of San Mateo
RECOMMENDATION:
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Adopt a resolution approving the Subordination Request for the 2017 Refunding Bonds of the Successor Agency to the Redevelopment Agency of the City of San Mateo.
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BACKGROUND:
Pursuant to Section 34177.5(a) of the California Health and Safety Code, the Successor Agency to the Redevelopment Agency of the City of San Mateo ("Successor Agency") intends to refinance its outstanding bonds to achieve debt service savings.
As a result of the issuance of refunding bonds, the Successor Agency has requested approval of subordination of the statutory pass-through payments received by the County from the San Mateo Redevelopment Property Tax Trust Fund ("RPTTF"). The County had previously approved a subordination of statutory pass-through payments for the Successor Agency's 2015 Refunding Bonds Series A and B.
DISCUSSION:
Under Section 34177.5(c), the Successor Agency may subordinate statutory pass-through payments to taxing entities with the entity's approval. An entity can only refuse approval, however, if there is substantial evidence that the Successor Agency will not be able to make both the refinanced bond payments and the statutory pass-through payments.
Since the dissolution of the Redevelopment Agencies, the Redevelopment Property Tax Trust Fund (RPTTF) for the Successor Agency has always had sufficient funds to cover all obligations and pass-through payments. The RPTTF had $7.2 million in residual distributions during the "B" Redevelopment Obligation Payment Schedule (ROPS) period, and $1.2 million in residual distribution during the "A" ROPS period. Based on these figures, the Successor Agency's consultant projects that the RPTTF has enough annual fundin...
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