pages: CityCouncil/2008-06-03.pdf, 27
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CityCouncil | 2008-06-03 | 27 | two-year extension. The Finance Director responded the payments for total debt services for all three funds is about $573,000 each year. Councilmember/Authority Member Gilmore stated the deferred payments not being made over the first two years are slightly under a million dollars. Mayor/Chair Johnson stated the added interest and cost of restructuring is an additional $594,000. The City Treasurer stated bills should be paid when due. The City Auditor stated money needs to be spent to refinance; he does not see the benefit in pushing obligations into the future; tough decisions need to be made now. louncilmember/Authority Member Gilmore stated deferred payments over the first two years are approximately $1 million; $594,000 is the delta between what would need to be spent if nothing is done and what would need to be spent for refinancing; inquired whether the savings would be the difference between $1 million and $594,000. The Finance Director responded there is no savings because the $1 million is part of the calculation of the $594,000. Mayor/Chair Johnson stated the non-payment years cannot be counted as savings inquired whether payments would be higher in the third year because of the restructuring. The Finance Director responded the payments go up to $567,00 in year three; in year three payments would be $610,000 as compared to $567,000; payments start to decline in 2017 because the 1996 Police Building debt would be paid in 2015 the existing debt service would decline to $369,000; the new debt service would stay in the $570,000 range. The City Treasurer stated the situation is whether to borrow money over the next two years to balance the budget and pay it back over the next twenty years. louncilmember/Authority Member Gilmore moved approval of tabling the item pending budget discussions. Special Joint Meeting Alameda City Council, Alameda Public 13 Financing Authority, and Community Improvement Commission Meeting June 3, 2008 | CityCouncil/2008-06-03.pdf |