Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Norwalk successor agency approves steps to refinance 2005 tax allocation bonds, release reserve funds
Loading...
Summary
The City of Norwalk Successor Agency voted March 17 to authorize steps to refund its 2005 tax allocation refunding bonds and to hire a financing team, a move staff says would free up millions for redevelopment and housing projects pending county and state approvals.
The Successor Agency to the Norwalk Redevelopment Agency voted March 17 to move forward with a plan to refund a portion of the agencys outstanding 2005 tax allocation refunding bonds and to hire the financing team needed to carry out the transaction.
Staff member Iyanna Stewart told the board the refunding could produce debt-service savings while not increasing overall indebtedness, and would allow the successor agency to release existing debt service reserves currently held by the trustee. "As of today, the successor agency still has over $32,000,000 outstanding," Stewart said, describing an estimated current savings and a potential reserve release that could free roughly $4.02--$4.3 million for eligible capital improvement projects such as housing, infrastructure and economic development within redevelopment project areas.
The board approved Resolution SA26-03, which would authorize issuance of 2026 tax allocation refunding bonds with a principal amount not to exceed $35,000,000 and approve related documents. Stewart said the Los Angeles County Oversight Board will consider the refunding at its April 21, 2026 meeting and that any Oversight Board action would be subject to Department of Finance review, a process that could take up to about 65 days.
In a separate but related vote the board approved Resolution SA26-02 to engage a financing team including a municipal advisor, bond counsel, disclosure counsel, underwriter and fiscal consultant. Stewart said all issuance costs would be paid from bond proceeds and "there will be no transactions coming out of the city or former successor agency." She added the financing team is needed to prepare preliminary and final official statements, escrow and trust documents, and to coordinate the sale and marketing of the bonds.
Both resolutions passed by roll call vote. Staff emphasized that the refunding and the release of unspent bond proceeds depend on subsequent approvals by the county oversight board and the state Department of Finance before any funds may be transferred for project use.
The successor agency will return to the board with additional required documents, including a preliminary official statement and continuing disclosure certificate, if the Oversight Board and Department of Finance approvals proceed.
