Bond Repayment on Council Agenda

The Fountain Valley City Council will consider a resolution Tuesday night that would authorize the early repayment of the city's 1998 tax allocation refunding bonds.

The city sold $24.3 million in bonds in 1998 at an average rate of 4.45 percent to refund a 1985 bond issue. The repayment of the bonds would be part of the city's obligation to wrap up the affairs of its former redevelopment agency, which was dissolved in February as part of the State Supreme Court's  to dissolve all such agencies statewide.

By repaying the bonds now, the city would remove just under $7 million in debt from the dissolved RDA's obligations, and would also increase the city's property tax apportionment starting with the 2012-13 fiscal year rather than waiting until 2016 when the bonds would originally have been paid out.

In a pre-meeting study session, the council will hear a presentation from city Finance Director Sherri Holman to provide an overview of the city's 2011-12 general fund.

In other business, the council will hear a second reading of an  that would create several amendment's to the city's residential building code.