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CC:PFA - PUBLIC HEARING: (1) Adoption of City Council Resolution Authorizing the Execution and Delivery by the City of a Ground Lease, a Lease Agreement, an Indenture, a Purchase Contract, and a Continuing Disclosure Agreement in Connection with the Issuance by the Culver City Public Finance Authority of its Lease Revenue Bonds, Series 2026a and Series 2026b (Federally Taxable); Approving the Issuance of Such Bonds in an Aggregate Principal Amount Not to Exceed $48,000,000; and Authorizing the Execution of Necessary Documents and Certificates and Related Actions; (2) Adoption of City Council Resolution Declaring its Official Intent to Reimburse Project Expenditures with Bond Proceeds and Related Actions; (3) Adoption of Public Finance Authority Resolution Authorizing the Execution and Delivery of a Ground Lease, a Lease Agreement, an Indenture and a Purchase Contract in Connection with the Issuance of Culver City Public Finance Authority Lease Revenue Bonds, Series 2026a and Series 2026b (Federally Taxable); Authorizing the Issuance of Such Bonds in an Aggregate Principal Amount Not to Exceed $48,000,000; Authorizing the Execution of Necessary Documents and Certificates and Related Actions; and Approving a Local Debt Policy Statement.
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Meeting Date: June 8, 2026
Contact Person/Dept: Stephen Agostini/City Manager/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (Email) Meetings and Agendas - City Council (06/04/2026); (Email) Ongoing Topics - Fiscal and Budget Issues (06/03/2026)
Department Approval: Stephen Agostini, Interim Assistant City Manager and Chief Financial Officer (06/3/2026) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve and adopt the following:
1. A Resolution approving the overall financing structure for the lease obligations; indenture, purchase contract, and continuing disclosure agreement (Attachment 1);
2. A Reimbursement Resolution declaring the City’s intent to reimburse project expenditures with bond proceeds and related actions (Attachment 2);
3. The Ground Lease between the City and the Culver City Public Finance Authority (Attachment 3);
4. The Lease Agreement between the Culver City Public Finance Authority and the City (Attachment 4);
5. The Indenture between the City, the Culver City Public Finance Authority, and U.S. Bank, the trustee (Attachment 5);
6. The Purchase Contract (which includes the Letter of Representations as Exhibit B) between Barclay’s Capital and the Culver City Public Finance Authority (Attachment 6); and
7. The Continuing Disclosure Agreement provided by the City in conjunction with the issuance of debt by the Culver City Public Finance Authority (Attachment 7).
In tandem with the above actions, staff recommends that the Culver City Public Finance Authority approve and adopt:
1. A Resolution approving the overall financing structure for the lease obligations; indenture, purchase contract, and continuing disclosure agreement (Attachment 8);
2. The Ground Lease between the City and the Culver City Public Finance Authority;
3. The Lease Agreement between the Culver City Public Finance Authority and the City;
4. The Indenture between the City, the Culver City Public Finance Authority, and U.S. Bank the trustee;
5. The Purchase Contract (which includes the Letter of Representations as Exhibit B) between Barclay’s Capital and the Culver City Public Finance Authority; and
6. A debt policy for the Public Finance Authority (Attachment 9).
PROCEDURE:
1. The Mayor seeks a motion to receive and file the affidavit of mailing and posting of public notice.
2. The Mayor calls on staff for a brief staff report and City Council poses questions to staff as desired.
3. The Mayor seeks a motion to open the public hearing.
4. The City Council receives public comment.
5. The Mayor seeks a motion to close the public hearing after all testimony has been presented.
6. The City Council discusses the matter and arrives at its decision.
BACKGROUND
On April 27, 2026 the City Council established the Culver City Public Finance Authority (CCPFA), initially for this issuance of up to $48,000,000 of revenue bonds in a combination of tax-exempt and taxable debt through a purchase agreement with Barclay’s Capital. The bond proceeds are to be used to finance city capital projects using tax exempt debt and housing and economic development initiatives using taxable debt.
The proposed use of these bond proceeds was discussed by the City Council at the April 27, 2026 meeting, and the City Council subsequently provided direction regarding overall use of the proceeds, including specific projects which were to be funded by the CCPFA with these proceeds. The City Manager incorporated this direction in the subsequent Proposed Budget for Fiscal Year 2026-2027 that was submitted to the City Council on May 11, 2026.
DISCUSSION
The action items before the Council and CCPFA, referenced above, are necessary steps to be completed to issue debt through the proposed direct purchase with Barclay’s Capital. The requested approvals include:
• Approving resolutions to be adopted by both the City Council and the Board of Directors of the CCPFA for the overall transaction;
• A reimbursement resolution which will enable the City to recover any initial outlays and expenses associated with work done on the included projects in advance of the receipt of bond proceeds;
• Ground lease and lease agreement between the City and the CCPFA which will serve as the mechanism by which the debt of the CCPFA will be serviced by base rental payments;
• The indenture agreement among the City, the CCPFA and the trustee, U.S. Bank, governing disbursement of proceeds and repayment of the debt;
• The Purchase Contract with Barclay’s Capital, to be approved by the City and the CCPFA, including a Letter of Representations to be delivered by the City;
• A Continuing Disclosure Agreement between the City and a dissemination agent providing for necessary annual disclosures and certain event disclosures as they may occur - required for the issuance of the debt; and
• A Debt Policy for the CCPFA that will govern how the CCPFA utilizes debt as part of its overall operations.
Approval of these resolutions, the documents, and the CCPFA debt policy will enable City and CCPFA staff to execute the proposed sale as directed by the City Council and CCPFA at the April 27, 2026 and May 11, 2026 meetings where the CCPFA was created and where the City Council and CCPFA provided direction on the use of the prospective proceeds.
In satisfaction of a condition of the Barclays Term Sheet, staff will return for this Council’s approval, on or about July 27, 2026, of a disclosure memorandum for use by Barclays in the event of any reoffering of the Bonds deemed necessary and appropriate including to its affiliates.
Recap: Use of Proceeds
The accompanying presentation deck (Attachment 10) provides an overview of uses of these proceeds (pages 3 and 5). As a brief recap, the Bond proceeds are proposed to finance and refinance (a) costs of the design, engineering, construction, and improvement of Jubilo Village, the Ballona Creek Affordable Housing Initiative, 11029 Washington Blvd site and/or other affordable housing projects, (b) financial assistance for the Culver City Unified School District, (c) costs of infrastructure improvements including the design, engineering and construction of City sidewalks, alleys, streets and improvements to City capital facilities and infrastructure within the right of way which could include curbs, gutters, tree canopy, and landscaping, (d) recreational improvements such as Bill Botts Field, and other City park facilities; and (e) capitalized interest with respect to the Bonds, administrative expenses and costs of issuance of the Bonds. Capital projects that are to be financed with these proceeds are included in the Proposed Budget for Fiscal Year 2026-2027.
Debt Service Payments
PFM, the City’s financial advisor, has re-modeled annual rental payments/debt service payments based on direction City Council provided to the City Manager on April 27, 2026 and May 11, 2026. This remodeling is based on the revised project list, the increased size of the issuance, the split between taxable uses and tax-exempt uses, current market conditions, and the inclusion of one year of capitalized interest and debt issuance costs. If the CCPFA proceeds with an issuance of $42,965,000, which is reflective of the direction Council provided and the uses described above, PFM estimates that annual rental payments/debt service will be approximately $2,900,000 annually.
FISCAL ANALYSIS
As we have highlighted previously, the costs associated with the issuance of the Lease Revenue Bonds, including the fees for bond counsel (Orrick), the financial advisor (PFM), and the prospective purchaser (Barclays), can be paid from bond proceeds as part of the costs of issuance. However, if the City does not move forward with the bond issuance, the City will not be responsible for paying the amount of the fees incurred. If the Lease Revenue Bonds are sold, the City will be required to make lease payments from the City's General Fund (Fund 101). The amount of the City's lease payments used to pay debt service on the Lease Revenue Bonds and the timing of the initial payment will depend on the principal amount of Lease Revenue Bonds sold and the terms of the related agreements.
ATTACHMENTS
1. 2026-06-08_ATT_1_City Council Approving Resolution for Overall Components of Debt Issuance
2. 2026-06-08_ATT_2_City Council Reimbursement Resolution
3. 2026-06-08_ATT_3_Ground Lease between the City and the CCPFA
4. 2026-06-08_ATT_4_Lease Agreement between the City and CCPFA
5. 2026-06-08_ATT_5_Indenture
6. 2026-06-08_ATT_6_Purchase Contract between the CCPFA and Barclay’s Capital
7. 2026-06-08_ATT_7_Continuing Disclosure Agreement
8. 2026-06-08_ATT_8_ CCPFA Approving Resolution for Overall Components of Debt Issuance
9. 2026-06-08_ATT_9_CCPFA Debt Policy
10. 2026-06-08_ATT_10_Slide Presentation
recommended action
MOTIONS
That the City Council:
Adopt a Resolution authorizing the execution and delivery by the City of a Ground Lease, a Lease Agreement, an Indenture, a Purchase Contract, and a Continuing Disclosure Agreement in Connection with the Issuance by the Culver City Public Finance Authority of its Lease Revenue Bonds, Series 2026a and Series 2026b (Federally Taxable); approving the Issuance of such Bonds in an aggregate principal amount not to exceed $48,000,000; and authorizing the execution of necessary documents and certificates and related actions.
That the Culver City Public Finance Authority Board:
Adopt a Resolution authorizing the execution and delivery of a Ground Lease, a Lease Agreement, an Indenture and a Purchase Contract in connection with the issuance of Culver City Public Finance Authority Lease Revenue Bonds, Series 2026a and Series 2026b (Federally Taxable); authorizing the issuance of such Bonds in an aggregate principal amount of not to exceed $48,000,000; authorizing the execution of necessary documents and certificates and related actions; and approving a Local Debt Policy Statement.