title

CC:PFA - ACTION ITEM: Adoption of Respective Resolutions of the City Council and the Culver City Public Finance Authority Board of Directors Approving the Disclosure Statement for the Culver City Public Finance Authority Lease Revenue Bonds, Series 2026A and Series 2026B (Federally Taxable).

body

Meeting Date:  November 9, 2026

Contact Person/Dept:                     Erin Spragan/Finance Department

Phone Number:  (310) 253-5865

Fiscal Impact:  Yes []    No [X]                                                                General Fund:  Yes []     No [X]

Attachments:   Yes [X]    No []

Public Notification:  (Email) Meetings and Agendas - City Council (11/04/2026); (Email) Ongoing Topics - Fiscal and Budget Issues (11/04/2026)

Department Approval: Erin Spragan, Chief Financial Officer (11/04/2026) _____________________________________________________________________

RECOMMENDATION

Staff recommends that the City Council and the Board of Directors of the Culver City Public Finance Authority (the “Authority”) each adopt a resolution approving the Disclosure Statement dated June 30, 2026 (the “Disclosure Statement”) relating to the Culver City Public Finance Authority Lease Revenue Bonds, Series 2026A and Series 2026B (Federally Taxable) (the “Series 2026 Bonds”), authorizing its execution and delivery, and authorizing related actions.

BACKGROUND

On June 8, 2026, the City Council (Resolution No. 2026-R058) and the Authority Board (Resolution No. 2026-PFA002) approved the issuance of the Series 2026 Bonds and the related financing documents. The Series 2026 Bonds, in the aggregate principal amount of $42,690,000 (Series 2026A: $16,060,000; Series 2026B (Federally Taxable): $26,630,000), were purchased directly by Barclays Bank PLC (the “Original Purchaser”) under a Purchase Contract dated June 18, 2026, and were delivered on June 30, 2026.

The Series 2026 Bonds are payable from Base Rental Payments to be made by the City under a Lease Agreement with the Authority, which is a General Fund obligation of the City. Bond proceeds financed and refinanced park, community facility and City infrastructure improvements; City and Housing Authority affordable housing commitments, including the Jubilo Village Project; interim support for the Culver City Unified School District; capitalized interest; and costs of issuance.

Because the Series 2026 Bonds were placed directly with the Original Purchaser, no official statement was prepared. As contemplated by the Purchase Contract, the Disclosure Statement was prepared for use by the Original Purchaser as provided in the Purchase Contract and the Certificate of the Purchaser delivered on June 30, 2026.

DISCUSSION

City staff has worked with the City’s Disclosure Counsel, Orrick, Herrington & Sutcliffe LLP, the City’s Municipal Advisor, PFM Financial Advisors LLC, and the Original Purchaser and its counsel, Stradling Yocca Carlson & Rauth LLP, to finalize the Disclosure Statement. The Disclosure Statement summarizes:

1.                     the terms of the Series 2026 Bonds;

2.                     financial and operating information concerning the City, including the Fiscal Year 2026-27 Budget adopted by the City Council on June 8, 2026; and

3.                     the City’s General Fund lease obligation.

Among other things, the Disclosure Statement reports that:

• The Fiscal Year 2026-27 Adopted Budget is balanced, with a projected ending General Fund balance of approximately $122.1 million.
• The Adopted Budget restores $12 million to the Contingency Reserve, increasing it to approximately $54.7 million (27% of the $205.3 million General Fund operating budget), and establishes a $2.3 million Operating Reserve and a $3.0 million reserve for lease payments to the Authority. These reserves are not pledged to the Series 2026 Bonds, and no debt service reserve fund was established for the Series 2026 Bonds.
• The Contingency Reserve target under City Council Policy 5002 is 30% of the General Fund operating budget. On June 8, 2026, the City Council temporarily reduced the target to 27% until the earlier of four years or the date the Contingency Reserve reaches 30%.
• The City intends to engage Ernst & Young LLP to prepare a long-term financial plan, including an evaluation of the City’s reserve requirements. As of June 30, 2026, that engagement had not been finalized.

The Disclosure Statement speaks as of June 30, 2026. Each resolution approves the Disclosure Statement and authorizes the Authorized Officers to execute and deliver it to the Original Purchaser, with changes approved by the City Attorney or Authority Counsel, as applicable, and Disclosure Counsel. Each resolution also authorizes certificates as to the information in the Disclosure Statement as of a later date, if required by the Purchase Contract or reasonably requested by the Original Purchaser. The proposed action does not change any terms of the Series 2026 Bonds or the related financing documents.

The Disclosure Statement is on file with the City Clerk. Before taking action, members of the City Council and the Authority Board should review the Disclosure Statement and are advised that they are responsible for the accuracy and completeness of the information concerning the City that it contains.

In connection with the delivery of the Disclosure Statement, City staff will represent that as of such date of delivery, the (City is not aware of any untrue statement of a material fact in the Disclosure Statement or any omission to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made.

This action is not a “project” under the California Environmental Quality Act, as it is a fiscal and administrative action that will not result in a physical change to the environment.

FISCAL ANALYSIS

Adoption of the resolutions has no fiscal impact. The City’s General Fund lease obligation for the Series 2026 Bonds was authorized by Resolution No. 2026-R058 and Resolution No. 2026-PFA002, and no new appropriation or budget amendment is required.

ATTACHMENTS

1.                     2026_11_09 ATT1 - Proposed Resolution of the Board of Directors of the Culver City Public Finance Authority Approving Disclosure Statement for the Culver City Public Finance Authority Lease Revenue Bonds, Series 2026A and Series 2026B (Federally Taxable)

2.                     2026_11_09 ATT2 - Proposed Resolution of the City Council of the City of Culver City Approving Disclosure Statement for the Culver City Public Finance Authority Lease Revenue Bonds, Series 2026A and Series 2026B (Federally Taxable)

3.                     2026_11_09 ATT3 - Disclosure Statement Series 2026A and 2026B Lease Revenue Bonds

recommended action

MOTIONS

That the City Council, sitting as the City Council and as the Board of Directors of the Culver City Public Finance Authority:

1.                     Adopt a Resolution of the City Council of the City of Culver City approving, and authorizing the execution and delivery of, the Disclosure Statement dated June 30, 2026, relating to the Culver City Public Finance Authority Lease Revenue Bonds, Series 2026A and Series 2026B (Federally Taxable), sold and delivered to Barclays Bank PLC as Original Purchaser; and,

2.                     Adopt a Resolution of the Board of Directors of the Culver City Public Finance Authority approving, and authorizing the execution and delivery of, the Disclosure Statement dated June 30, 2026, relating to the Culver City Public Finance Authority Lease Revenue Bonds, Series 2026A and Series 2026B (Federally Taxable), sold and delivered to Barclays Bank PLC as Original Purchaser.