BOARD MEETING DATE: April 5, 2002
AGENDA NO. 27
Finance Committee
SYNOPSIS:
The Finance Committee met Friday March 8, 2002 and discussed the issues detailed in the Committee report.
RECOMMENDED ACTION:
Receive and file this report.
Norma J. Glover, Chairman
Finance Committee
Attendance: Present were Committee members Jane Carney, Norma Glover and Leonard Paulitz. Absent were Committee members Michael Antonovich and William Burke.
Discussion Item:
Midyear Budget Report: Rick Pearce, Chief Financial Officer, briefed the Committee on the current status of the FY 2001-02 Budget. As of January 2002, the Board has approved several budget amendments totaling approximately $6 million, bringing the FY 2001-02 amended Budget to just over $102 million. At midyear (seven months) the AQMD had expended 55% of its budget and collected 56% of the estimated revenues. Based on a comparison of midyear and year-end actuals for the prior budget year, it is projected that the AQMD will end this year balanced with approximately $97.1 million in expenditures and estimated revenues of $97.2 million. The Committee also discussed the financial impacts on the AQMD from the proposed State cutbacks in Subvention funding to local air quality districts.
Status on Evaluation of 3rd Floor North Diamond Bar Facility: Sylvia Oroz, Business Services Manager, updated the Committee on the analysis being performed regarding completion of 3rd Floor North, which would add approximately 16,000 sq. ft. of additional space available for leasing. The analysis will look at factors that could impact the build-out of the 3rd Floor. These factors include parking; relocation of AQMD storage; limitation of leasing space for private use; possibility of additional space vacated by the Dept. of Treasury; review of leasing market in the area; and the financial feasibility of the project requirements for additional parking and leasing options.
Proposed Refunding of Diamond Bar Installment Sale Revenue Bonds – Series 1992: Rick Pearce briefed the Committee on the proposed Current Refunding of callable outstanding debt. The Diamond Bar Facility has twelve years remaining (2014) on its debt payments. The current par amount of its bonds outstanding is $56.2 million with $25.4 million callable. The District, through the AQMD Building Corporation, is proposing to refund the callable portion of its debt resulting in estimated present value savings of $1.3 million and to restructure the debt payments to even out payments over the remaining twelve years. Based on the briefing, the Committee discussed the advantages/disadvantages of fixed rate versus variable rate bonds. Mr. Pearce explained that at present both bond rates are at historic lows. The Committee felt that it was to the AQMD’s advantage to lock in low fixed rate debt for the remaining twelve years rather than risk the uncertainties of variable rate bonds. In addition, based on the outcome of a separate analysis regarding the economics and feasibility of completing the 3rd Floor North, the Committee discussed the possible use of this refunding to borrow additional monies if required to complete the 3rd Floor North building and build a parking structure if needed.
Other Business: None
Public Comment: None
/ / /