HomeMy WebLinkAboutCity Council Committees - Public Facilities District Board - 02/18/2016 :'I I
Kewt,KENT
WASHINGTON
Public Facilities District Board
Special Meeting Minutes
February 18, 2016 @ 4 p.m.
City of Kent
City Hall, Centennial Building, Room 402
Boardmembers present: Chair Mike Miller, Lew Sellers, and Randall Smith
Others present: City of Kent Finance Director (Board Treasurer) Aaron
BeMiller, City of Kent City Attorney Tom Brubaker, City of Kent Economic
and Community Development Director Ben Wolters, City of Kent City Clerk
(Board Secretary) Ronald F. Moore, Bill Tomkin, Foster Pepper LLC, and
Deanna Gregory, Pacifica Law Group
I. Call to Order. The meeting was called to order by Chair Miller at 4:00
p.m.
U. Discussion of Potential Bond Refunding. - Aaron BeMiller, Finance
Director (Treasurer) discussed the potential bond refunding options.
City Attorney Brubaker communicated that Bill Tomkin, from Foster
Pepper should be retained as bond counsel to represent the board in the
transaction.
Lew Sellers moved to retain Bill Tomkin as Bond Counsel,
seconded by Randall Smith. Motion carried 3-0.
Brubaker continued and stated that there are certain authorities and
options available to the Public Facilities District (PFD) as a separate
authority from the City. He stated that a key piece for the City, if all the
debt is going to be paid by the City, is that it's clear that the Public
Facilities District relinquishes its rights to do things without the City's
approval. Brubaker communicated that the City owns the facility and
operates it.
Gregory explained that PFD sales tax revenue currently secures the sales
tax bonds and the City is proposing to refund those bonds on behalf of the
PFD. She clarified that the City is going to take out debt and loan the
money to the PFD to pay off the sales tax bonds. Then, the PFD is going
to repay that loan on an semi-annual basis in payments that are mirrored
to match the corresponding debt service of the City's bonds.
Brubaker further explained that the debt belongs to the PFD, but in reality
the City is making all the payments. He noted that there is a recent case
which shifted the game on the City's contingent loan obligation and there
have been recent issues with the State Auditor's Office. In reality, the City
is paying the debt and it's better for the City to pay the debt to obtain
some savings and in turn the PFD pledges its revenues to the City.
Public Facilities District Board Special Meeting Minutes February 18, 2016
Gregory further noted that instead of the PFD taking its sales tax
revenues and directly paying bond holders with the City making up any
shortfall. Sales tax revenues will go to the City to pay debt service on its
bonds and then any shortfall the City will make up and be reimbursed
through any arrangement made in the future. This will save a few million
dollars.
Treasurer BeMiller communicated that the City anticipated the debt and it
is reflected in the bond rating. He communicated the City's increased
credit ratings.
Meeting adjourned at 4:52 p.m.
Awe
Ronald F. ore, M C
City Cler
2