pages: CityCouncil/2008-06-17.pdf, 12
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2008-06-17 | 12 | Mayor/Chair Johnson inquired what would be the new interest rate. Bill Reynolds, Gardner Underwood & Bacon Financial Advisor, responded rates are excepted to produce present value savings in excess of 4%; stated the exact rate would not be known until the sale date; the assumption is that the rate would be in the mid 4% range. Mayor/Chair Johnson inquired whether Mr. Reynolds is confident with the assumption. Mr. Reynolds responded in the affirmative; stated the upgraded rating makes the process very competitive; refinancing would not move forward without a good rate. Mayor/Chair Johnson stated that she was opposed to refinancing before; now she is happy to see that the term would not be extended and there would be a lower interest rate. louncilmember/Authority Member deHaan inquired whether the first year would not have interest or principal payments and the second year would have interest payments only. The City Manager responded interest payments would be made in the first year. Councilmember/Authority deHaan inquired whether the cost of the loan would be amortized, to which Mr. Reynolds responded in the affirmative. Mayor/Chair Johnson inquired what would be the estimated savings, to which the City Manager responded $317,600. Mr. Reynolds stated market data would be available on the date of pricing to show comparables. Councilmember/Authority Member deHaan inquired what percentage would be the breaking point. The City Manager responded 5.5% is set in the resolution. Mayor/Chair Johnson inquired what is the old and new interest rate for each issuance. The City Manager responded the original issue rates ranging from 5.8% to 7.25% would mature in 2015; $2.77 million was issued for Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and 2 Redevelopment Authority, and Community Improvement Commission June 17, 2008 | CityCouncil/2008-06-17.pdf |