Council authorizes issuance of marina revenue refunding bonds, up to $103 million, to cut debt service

The City Council on April 15 adopted a resolution authorizing the issuance of City of Long Beach Marina Revenue Refunding Bonds, Series 2025, in an aggregate principal amount not to exceed $103,000,000 and authorized execution of related financing documents.

Kevin Repper, Director of Financial Management, and Assistant City Treasurer Jesse Ortega presented the refunding plan. They said the proposed refunding would refinance roughly $100 million of marina revenue bonds sold in 2015, maintain the final maturity in 2045, and feature federally tax-exempt interest. Staff said the refunding could produce debt-service savings on the order of roughly $500,000 a year under then-current market assumptions and about $5.7 million net present value savings (approximately 6% of refunded bonds), exceeding the city’s 3% NPV threshold for a refunding.

Staff emphasized key structural points: the bonds are secured solely by marina fund revenue (slip fees and marina fund receipts), and do not rely on general fund tax revenue or tidelands revenue. Operations and maintenance are paid first from marina revenues; debt service follows, with reserves for repairs and capital. Repayment of a small state loan is imminent (about $200,000), which will remove a prior requirement that marina revenues remain segregated in the marina fund; the refunding documents proposed would allow — but not require — future council discretion to apply surplus marina monies elsewhere in the Tidelands fund (staff emphasized that any such use would remain limited to Tidelands purposes and not be available to the general fund).

The financing team said available Marina Fund cash and strong operating performance in recent years mean capital projects totaling roughly $34 million (listed in the preliminary official statement) can be funded from existing reserves; the marina fund balance had grown to about $33 million as of Sept. 30, 2024. Staff also said the financing would only proceed if net-present-value savings met policy thresholds; pricing was targeted to market windows and could be delayed if rates moved unfavorably.

Public commenters representing marina users welcomed the approach and urged that reserves be used to address long‑standing dock and infrastructure needs. Dave Booker of the Long Beach Marina Boat Owners Association thanked staff and urged that reserves be dedicated to overdue marina projects and public‑facing improvements.

The resolution was adopted; staff will continue with the sale process and close the financing only if the net-present-value savings threshold (3% or greater) is met and market conditions remain favorable.

Ending: The council authorized the financing; staff and the financing team will proceed to price and sell the refunding bonds subject to the city's policy thresholds and market conditions.