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Home My WebLink About10 Old Greenwood fees Agendas Item you iM �r��Murr wli Ii�wi�� Memorandum To: Board of Directors From: Mary Chapman, Administrative Services Manager Y t Date: December 12, 2003 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. 03-1 (Old Greenwood) 1. WHY THIS ITEM IS BEFORE THE BOARD The District determines where the reserve fund in the amount of $1,220,368.60 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 Hugh Black 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, has recommended that we invest the funds in LAIF for now since it is so liquid. The current interest rate is approximately 1.56%. 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 The interest earned is withdrawn every six months by the trustee to apply to the principal and interest payments being made on March 1st and September 1st of each year.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. 03-1 (Old Greenwood) Reserve Fund. Resolution No. 2003- AUTHORIZING INVESTMENT OF RESERVE FUND MONIES IN THE LOCAL AGENCY INVESTMENT FUND FOR THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 03-1 (OLD GREENWOOD) 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. 03-1 (Old Greenwood). NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby authorize the Trustee, currently Hugh Black of the Bank of New York Western Trust, of the Truckee Donner Public Utility District Communities Facility District No. #03-1 (Old Greenwood) 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. 03-1 (Old Greenwood). PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 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 DEC-04-2003 15:26 CA STATE TREASURER/LRIF 916 654 9931 P.02 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 Local Agency (Issuer) Truckee Donner Public Utility District P. 0. Box 309 Truckee, CA 96160 Title of Bond Issue Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old Greenwood) Special Tax Bonds Principal Amount $ 12,445,000 Total Bond Issue Name and Address of $1,220,368.60 Reserve Fund Deposit Trustee or Fiscal Agent Bank of New York Western Trust Company 700 South Flower Street Suite 500 Los Angeles, CA 90017 Attn: Corporate Trust Department Authorized Officer for Trustee or Fiscal Agent Hugh Black Telephone Number 213-630-6243 1) The undersigned is officer of the district and is authorized to execute this document. 1 ---- ..-. ---- _... DEC-04-2003 15:27 CA STATE TREASURER/LRIF 916 654 9931 P.03 Truckee Donner Public Utility District Name of Local Agency 2) The Issuer requests permission to deposit $ 1,220 368,60 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. Signature (Must be authorized on Resolution) Date Mary L. Chapman 530-582-3906 Print Name Telephone 4 Treasurer Title 2 DEC-04-2003 15:27 CA STATE TREASURER/LAIF 916 654 9931 P.04 ESTIMATED DRAWDOWN SCHEDULE Truckee Donner Public Utility District (Name of Local Agency) Bank of New York Western Trust - Migh gUck (Name of Trustee/Fiscal Agent) Date Amount Date Amount Eebruary $ August Accrued Interest for of each year payment of 3/1 $ the /1 principal & interest uavments Signature(Must be authorized on Resolution) Date James A. Maass, President, Board of Directors * 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 first business day following. 3) Please provide LAW with 24 hours notice when making a drawdown of$10 million or more. 3