pages: CityCouncil/2008-06-03.pdf, 23
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CityCouncil | 2008-06-03 | 23 | because the amount is deferred. Councilmember/Authority Member Gilmore stated that she totaled a $5.1 million debt; $6 million would be issued; inquired whether there is some minimum limit. The Finance Director responded $6 million is the approximate amount; stated $5,490,000 would be issued; interest rates change the numbers are based on estimated interest rates; the interest rates are favorable now. Councilmember/Authority Member Gilmore stated the matter is a cash flow issue; approximately $600,000 would not be spent in the first year; $600,000 would be spent over fifteen years. Councilmember/Authority Member deHaan inquired whether the loans were refinanced already. The Finance Director responded only the Police Building was refinanced in 1996. Councilmember/Authority Member deHaan inquired why the Police Building was refinanced. The Finance Director responded because interest rates dropped significantly. Councilmember/Authority Member deHaan stated the City gets into trouble by deferring and refinancing. Mayor/Chair Johnson inquired when the Police Building was constructed, to which the Finance Director responded 1990. Mayor/Chair Johnson inquired what was the original planned bond issue. The Finance Director responded the $2.8 million bond was issued in 1990 with interest rates of 5.8% to 7.25%. Mayor/Chair Johnson inquired when the bond would have been paid if not refinanced, to which the Finance Director responded she would guess 2010. Councilmember/Authority Member Matarrese stated that he is not in favor; savings are not being made on the interest rates and future Councils will be burdened; debt will be deferred if not paid now. Special Joint Meeting Alameda City Council, Alameda Public 9 Financing Authority, and Community Improvement Commission Meeting June 3, 2008 | CityCouncil/2008-06-03.pdf |