Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2025, was as follows:
| Balance | Balance | Amount |
|---|
| June 30, 2024 | Additions | Deletions | June 30, 2025 | Due Within One Year | |
|---|
| 2003 TARBs, $15,745,000 | $ 14,870,000 | $ - | $ 910,000 | $ 13,960,000 | $ 1,145,000 | |
|---|
| 2017 A TARBs, $52,390,000 | 35,690,000 | - | 6,630,000 | 29,060,000 | 6,910,000 | |
|---|
| 2017 B TARBs, $140,130,000 | 84,670,000 | - | 5,585,000 | 79,085,000 | 5,710,000 | |
|---|
| 2017 H-A TARBs, $7,365,000 | 4,570,000 | - | 475,000 | 4,095,000 | 505,000 | |
|---|
| Subtotal | 139,800,000 | - | 13,600,000 | 126,200,000 | 14,270,000 | |
|---|
| Add: Unamortized bond premium | 3,996,060 | - | 562,560 | 3,433,500 | - | |
|---|
| Less: Unamortized bond discount | (1,374,437) | - | (79,677) | (1,294,760) | - | |
|---|
| Total | $ 142,421,623 | $ - | $ 14,082,883 | $ 128,338,740 | $ 14,270,000 | |
|---|
The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the Dissolved RDA) were issued by the Palm Desert Financing Authority, the proceeds of which were loaned to the Dissolved RDA for financing or refinancing redevelopment projects. Pursuant to the bond documents, the Authority's bonds were secured by the Dissolved RDA's (and after dissolution, are secured by the Successor Agency's) repayment of the loans were secured by tax increment (after the Dissolved RDA's dissolution, are secured by certain moneys deposited in the RPTTF, see Notes 19) and other funds as provided in the bond documents.
In January 2017, the Successor Agency issued four series of bonds: (i) the Tax Allocation Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000 (the “2017A Bonds”), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the aggregate principal amount of $140,130,000 (the “2017B Bonds”), (iii) the Tax Allocation Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000 (the “2017H-A Bonds”); and (iv) the Taxable Tax Allocation Refunding Bonds, 2017 Series H-B, in the aggregate principal amount of $45,815,000 (the “2017H-B Bonds”). As further described below, the 2017 refunding refunded all of the outstanding tax allocation revenue bonds, except for the Project Area No. 2 2003 Bonds.
None of these bonds or any interest thereon are a debt of the City, the State of California or any of its political subdivisions (except for the Successor Agency), and none the City, the State of California nor any of its political subdivisions (except for the Successor Agency) is liable on the bonds, nor in any event shall the bonds and interest therein be payable out of any funds or properties other than those provided under the respective bond documents.
The remaining outstanding Project Area No. 2 2003 Bonds were insured by MBIA Insurance Corporation ("MBIA"). On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming the risk associated with its U.S. municipal exposures, and the other (MBIA Corp) insuring the remainder of the portfolio. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation ("NPFGC").
Some (but not all) of the maturities of each series of the 2017 Bonds are insured by Build America Mutual Assurance Company.
On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the bond proceeds to the Dissolved RDA to fund various redevelopment capital projects in Project Area No. 2.