pages: CityCouncil/2008-06-17.pdf, 13
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CityCouncil | 2008-06-17 | 13 | the Police facility; stated Library and Golf issues in the amount of $4.9 million have rates of 3.9% to 5.75%. Mayor/Chair Johnson stated that a maximum should be set for each issuance. The City Manager stated 5.5% is a blended rate; refinancing would not go forward if expected savings are not realized. louncilmember/Authority Member Matarrese stated the 2022 date should not be exceeded the previous proposal did not go forward because there was no savings, the term was extended, and debt would be pushed back; now, debt would not be pushed back and the term would not be extended. Mr. Reynolds stated the interest rate and savings are two different numbers; a $317,600 savings is the underwriter's best guess based on current market conditions; 5.5% would produce less than $317,600 in savings. Mayor/Chair Johnson stated the savings goal should be approximately $317,000. Councilmember/Authority Member Gilmore stated that anything over $300,000 in savings works. ouncilmember/Authority Member deHaan stated that he would like the first two-year savings to be at least $400,000. Mayor/Chair Johnson stated that deferring debt payments is not the best way to do budgeting. Mr. Reynolds stated that bond counsel drafted the resolution with the idea that a limit would be placed on the average interest rate. Mayor/Chair Johnson stated the most important issue is savings ; management's goal is to defer payments to limit budget cuts; that she does not want to pay more and save less due to deferring. Mr. Reynolds stated an interest only payment would be made; savings would be limited in the first two years; the present value savings would change slightly with annual savings versus up front savings. Councilmember/Authority Member Matarrese moved adoption of resolutions as long as the duration of the bond would be the same and the savings threshold would not be less than $300,000. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and 3 Redevelopment Authority, and Community Improvement Commission June 17, 2008 | CityCouncil/2008-06-17.pdf |