To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Reimbursement Resolution for Arbitrage Rebate/Yield Reduction Payment - 2021 Lease Revenue Bonds
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
Acting as the Governing Board of the County of Contra Costa Public Financing Authority (the "Authority"):
1. ADOPT Resolution No. 2026-178 stating intent of the Authority to reimburse the Rebate Payment made on or before May 17, 2026, from Project Fund investment earnings related to the Authority's 2021 Lease Revenue Bonds, in accordance with the requirements of Section 148(f) of the Internal Revenue Code of 1986, as amended, and as permitted by Sections 3.02 and 6.03 of the Trust Agreement dated as of March 1, 2021, by and between the County of Contra Costa Public Financing Authority and Computershare Trust Company, N.A., as successor trustee, relating to the Bonds.
2. AUTHORIZE the appropriate County and Authority officials to take all actions necessary to implement the Resolution, including the allocation of Bond sale proceeds or earnings thereon to the costs of the Rebate Payment, and to ensure compliance with all applicable federal tax law requirements.
FISCAL IMPACT:
The Authority currently owes a yield reduction payment of $839,190.36 to the Department of the Treasury related to the Authority's 2021 Lease Revenue Bonds. Generally, issuers of tax-exempt municipal bonds are restricted on the amount of investment earnings that can be generated on the proceeds of bonds sales. The Authority has successfully maximized the amount of interest that can be earned on the proceeds of this bond issuance and the balance must allocated to the federal government. It is important to note that this is not a punitive measure or a forfeiture of funding.
BACKGROUND:
The County of Contra Costa Public Financing Authority previously issued its Lease Revenue Bonds, 2021 Series A (Capital Projects) an...
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