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Home My WebLink About4 Grays Crossing Agenda Item Ir Memorandum To: Board of Directors From: Mary Chapman, Administrative Services Manager Date: September 8, 2004 SUBJECT: Authorizing investment of Reserve Fund monies in the State of California Local Agency Investment Fund for the Truckee Donner Public Utility District Communities Facilities District No. 04-1 (Gray's Crossing) 1. WHY THIS ITEM IS BEFORE THE BOARD The District determines where the reserve fund in the amount of $1,454,647.20 will be invested. The funds must be kept in a permitted investment. A permitted investment is one that is described in the loan documents. The funds are under the control of the trustee. The trustee in this financing is Carl Becker of the Bank of New York Western Trust. 2. HISTORY The reserve fund generally represents the final principal and interest payment on the bonds being issued unless the funds are needed beforehand to make a payment. 3. NEW INFORMATION Larry Rolapp, the District's financial advisor for the mello roos bond issue, recommended on the Old Greenwood mello roos that we invest the funds in LAIF because it is so liquid. The current interest rate is approximately 1.75%. If interest rates go up, we may want to change the fund to another permitted investment in order to earn more interest. The interest earned is withdrawn every six months by the trustee to apply to the principal and interest payments being made on March 1st and September 1st of each year. I have contacted LAIF to set up a separate account for this deposit and subsequent transactions. Attached is a required resolution and a copy of the forms that must be filed with LAIF to set up the account. I am asking that the board authorize the District Treasurer to execute the documents. RECOMMENDATION: That the board approve the attached resolution authorizing the District Treasurer to execute the Application to Deposit Trustee Bond Proceeds with the State of California Local Agency Investment Fund for the Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing) Reserve Fund. .......... . . ..... ..... - --- -- - _ rQ1 Resolution No. 2004- XX AUTHORIZING INVESTMENT OF RESERVE FUND MONIES IN THE LOCAL AGENCY INVESTMENT FUND FOR THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 04-1 (GRAY'S CROSSING) WHEREAS, pursuant to Chapter 730 of the statutes of 1976, Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, THE Board of Directors does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein as in the best interests of the Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing). NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby authorize the Trustee, currently Carl Becker of the Bank of New York Western Trust, of the Truckee Donner Public Utility District Communities Facility District No. #04-1 (Gray's Crossing) to invest Reserve Fund monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and verification by the State Treasurer's Office of all banking information provided in that regard. BE IT FURTHER RESOLVED, that the Board of Directors authorizes the District Treasurer to execute the Application to Deposit Trustee Bond Proceeds with the Local Agency Investment Fund naming the trustee of the Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing). PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the_of September 2004 by the following roll call vote: AYES: ABSTAIN: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By James A. Maass, President ATTEST: Peter L. Holzmeister, Clerk of the Board AUG-25-2004 11:59 CA STATE TREASL%RER/LAIF 916 654 9931 P.02/04 STATE OF CALIFORNIA OFFICE OF THE STATE TREASURER LOCAL AGENCY INVESTMENT FUND P.O.BOX 942809 SACRAMENTO, CA 94209-0001 (916)653.3001 APPLICATION TO DEPOSIT TRUSTEE BOND PROCEEDS Name and Address of Truckee Donner Public Utility District Local Agency (Issuer) P. 0. Box 309 Truckee, CA 96160 Title of Bond Issue Truckee Donner Publ ie Ut31 i t�D' * t Community Facilities District No. 04-1 (Gray's Crossing) special ax Bonds Principal Amount $ 15,375,000 Total Bond Issue $ 1,454,647.20 Reserve Fund Deposit Name and Address of Trustee or Fiscal Agent Bank of New York Western Trust Company 700 South Flower Street, Suite 500 Los Angeles, CA 90017 Attention: Corporate Trust Department Authorized Officer for Carl Becker Trustee or Fiscal Agent Telephone Number 213-630-6252 1) The undersigned is officer of the district and is authorized to execute this document. 1 RUG-25-2004 11 59 CA STATE TREASURER/LRIF 91b b54 9d.51 r.ulu� ; t x Truckee Donner Public Utility District Name of Local Agency r 2) The Issuer requests permission to deposit $ 1 454 647 20 of the above-named bond issue in the Local Agency Investment Fund. Attached to this form is an estimated monthly drawdown schedule, It will be necessary for an authorized representative to contact the Local Agency Investment Fund to initiate a Bond proceeds transfer. 3) Attached to or accompanying this form is a copy of the Official Statement for the Bonds. 4) The Agency understands and acknowledges that the Local Agency Investment Fund will not provide any special services or information relating to investment methods or earnings on the bond proceeds being deposited, besides its normal policies, by which the Agency will be credited quarterly with its proportionate share of investment earnings of the State's Pooled Money Investment Account (PMIA), minus an administrative charge of no more than one-half of one percent of the earnings. The State believes that, for the purposes of the Agency's calculation of "arbitrage rebate" under Section 148 of the Internal Revenue Code of 1986, the PMIA qualifies as a "commingled fund" within the meaning of the Treasury Regulations Section 1,148-4. The State will not perform any rebate calculations, which are entirely the responsibility of the Agency, Date Signature Mustbi authorized on Resolution) Mary Chapman 530-582-3906 Print Name Telephone# Treasurer Title 2 RUG-25-2004 12 00 CR STATE 's ESTIMATED DRA4VDOWN SCHEDULE Truckee Donner Public Utility District (Name of Local Agency) Bank of New York Western Trust - 6 (Name of Trustee/Fiscal Agent) F Date Amount r Date Amount t 4 February & August Accrue)t for ------�—' � f the --------- lstlst of 913 Pr ins i„ 1 h --------- interest payments --- J J Date Signature (Must be authorized on Resolution) * PLEASE NOTE 1) Bond Proceeds may be withdrawn 30 calendar days from date of initial deposit and each 30 calendar day period thereafter. 2) Should a drawdown date fall on a weekend or holiday it will be moved to the Hirst business day following. hours notice when making a drawdown of$10 3) Please provide LAW with 24 million or more- 3 TOTRL P.04