File #: 16-508    Version: 1 Name: September 7, 2016 Finance Committee Meeing Minutes
Type: Minutes Status: Passed
In control: Finance Committee
Meeting Date: 10/17/2016 Final action: 10/17/2016
Enactment date: Enactment #:
Title: Highlights of the Finance Committee Meeting of September 7, 2016
Sponsors: David Baum Finance Director
Attachments: 1. Sign In September 7 2016 Finance Committee, 2. Budget in Brief 2016-17
Title
Highlights of the Finance Committee Meeting of September 7, 2016

Body
CITY OF SAN LEANDRO

FINANCE COMMITTEE

September 7, 2016
5:00 - 6:30p.m.

San Leandro City Hall
835 East 14th Street
San Leandro, California
(Sister Cities Gallery)

HIGHLIGHTS

1. CALL TO ORDER

Mayor Cutter called the meeting to order at 5:00 p.m.

1.A. Attendance

Committee members present: Mayor Cutter, Councilmember Lee, Councilmember Prola

City staff present: City Manager Zapata, Acting Assistant City Manager Kay, Community Development Director Battenberg, Assistant Finance Director Fuentes, Budget/Compliance Manager Perini

Public present: Holly Vocal, Corina Lopez

1.B. Announcements

None.

2. DISCUSSION ITEMS

2.A. 2016 Refunding lease Revenue Bonds

The City of San Leandro issued Certificates of Participation (COPs) in 2007 to refund prior debt, the 1999 COPs. Currently there is $16.7 million outstanding on that issuance with interest rates ranging from 4% 2016 to 4.375% in 2029. The proposed refinancing is expected to bring the average interest rate down to approximately 2%, based on current market conditions.

Holly Vocal of Stifel, Bond Underwriter, stated that the following financing strategy is now contemplated:

* The 2007 COPs will be refunded as Lease Revenue Bonds. Lease Revenue Bonds in the municipal market are perceived as a better credit than COPs.
* No Debt Service Reserve fund is necessary and that will increase cash flow savings for the City.
* Standard and Poor's will be the only rating the City will pursue and this will provide a cost savings of $25,000 and there is no impact when bringing the bonds to market.
* Allowing for issuance of additional debt. In 2007 the Library had an asset value of $22 million. Now the refinancing par value is $14 million and therefore there is at least $7 million of value in the Library value that will provide the City with more flexibility for future new money financing, which could be secured by the Li...

Click here for full text