La Quinta takes on low interest rate

Public Record, The, Nov 01, 1996 by Hercules, Neil

LA QUINTA--The second city in the Valley to take advantage of lower municipal bond interest rates is going into the bond market.

Searching for a favorable "reseal" of $8.8 million in bonds, used to refinance the La Quinta Civic Center, is Solana Beach based Miller & Schroeder, an underwriting firm.

Palm Springs was scheduled to close its $24,135,000 combined bond issue on October 31 through San Francisco based Stone & Youngberg.

That city expected to improve its cash position by $1.2 million in the first year and $750,000 each year thereafter.

Meantime, La Quinta set its target to obtain about $700,000 to use for Civic Center improvements, such as laying new curb and gutter on a street adjoining the City Hall and improving the parking lot and the adjoining Senior Center.

According to Robin Thomas, who is handling the bond sale for Miller & Schroeder, there is no target date for the bond sale closing; she will look for the most favorable interest rate environment, and when she is close to matching the city's savings target she will proceed with the bond sale.

In actuality, the sale will be made for the La Quinta Financing Authority, which leases the Civic Center buildings to the city under a 1991 sublease agreement, when the initial financing was approved.

When the bonds are paid off in 2018, title will be transferred to the City of La Quinta. The bonds are rated AAA and are insured.