pages: CityCouncil/2008-06-03.pdf, 22
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CityCouncil | 2008-06-03 | 22 | (08-02 - APFA) Adoption of Resolution Approving, Authorizing and Directing Preparation and Execution of Certain Lease Financing Documents and Authorizing and Directing Certain Actions with Respect Thereto. Continued. The Finance Director gave a brief presentation. Mayor/Chair Johnson inquired what would be the cost of refinancing. The Finance Director responded the cost of the additional debt service over the new life of the issue is $594,658.75. Mayor/Chair Johnson inquired what would be the cost of issuance, to which the Finance Director responded $150,000. Mayor/Chair Johnson inquired whether the total cost would be $150,000 plus $594,000. The Finance Director responded the $150,000 is included in the $594,000. Councilmember/Authority Member Matarrese inquired whether $150,000 would be spent to save $203,000, extend the debt a couple years, and pay approximately $600,000 in interest. The Finance Director responded $600,000 would be spent over fifteen years in order to get the first year savings of approximately $600,000. Councilmember/Authority Member Matarrese stated that he has a hard time borrowing money and encumbering two extra years on someone in the future. Mayor/Chair Johnson stated the proposed refinancing would cost the City money. The Finance Director stated cash would be saved now and would be paid over the next fifteen years. Mayor/Chair Johnson inquired whether refinancing would cost $594,000. The Finance Director responded in the affirmative; stated approximately $600,000 would be saved in interest. Mayor/Chair Johnson stated that she would not call it a savings Special Joint Meeting Alameda City Council, Alameda Public 8 Financing Authority, and Community Improvement Commission Meeting June 3, 2008 | CityCouncil/2008-06-03.pdf |