Title
Approve and authorize the continued work on preparing for a refunding of the 2015 Public Facilities Financing Certificates of Participation, currently estimated annual savings of approximately $143,288 per year for the remaining term of the debt.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors approve and authorize the continued work on preparing for a refunding of the 2015 Public Facilities Financing Certificates of Participation, resulting in an estimated annual savings of approximately $143,288 per year for the remaining term of the debt.
SUMMARY/DISCUSSION:
In 2015, the County issued $48,440,000 in Certificates of Participation (COPs) for the purpose of financing tenant improvements at 1441 Schilling Place and renovations to the East and West Wing buildings at 240 Church Street in Salinas. There is approximately $39,185,000 remaining of this debt.
Current market conditions and interest rates provide an opportunity for the County to refund the outstanding COPs and achieve cost savings. Based on current estimates, the refunding would generate annual savings of approximately $143,288 and total gross savings of approximately $2,855,887 over the remaining term of the debt. The refunding would not extend or shorten the existing repayment schedule.
The next steps in the process and current timeline are attached to this agenda item with a proposed final Board of Supervisors approval of the documents prior to releasing the COPs for refunding set for February 2026. The County Administrative Office in concert with County Counsel have engaged with KNN Public Finance, LLC and Bond Counsel Jones Hall to guide the process and aid in the creation of the legal documents required.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The proposed refunding was reviewed and supported by the Debt Advisory Committee and the Budget Committee on November 14, 2025, both of which recommended moving the item forward to the Board of Supervisors.
FINANCING:
Th...
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