pages: CityCouncil/2009-02-07.pdf, 28
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CityCouncil | 2009-02-07 | 28 | Interim Finance Director responded in the affirmative. Councilmember Matarrese inquired whether a formula could be applied that would use some of the gain to pay the incremental [OPEB] increase. The Interim Finance Director responded in the affirmative; stated the maximum amount of capital would be obtained in the first five years in spite of the difficult economic situation; if the economy recovers in five year, there might be additional options. Mayor Johnson inquired what interest rates were used, to which the Interim Finance Director responded since the bond would be taxable, the variable coupon rate would have a range of 3.5 to 4% for the first five to six years and go to 7.2% 30 years from now numbers would be obtained if Council is comfortable with the concept. In response to Mayor Johnson's inquiry regarding future OPEB payments, the Interim Finance Director listed the payment amounts. The Interim Finance Director continued her presentation. Councilmember Matarrese stated interest earned on the savings should be calculated. The Interim Finance Director continued her presentation. The City Attorney gave a brief explanation of the validation action. Vice Mayor deHaan inquired whether the idea has been presented to the City Treasurer and FSC . The Interim Finance Director responded in the negative; stated that she talked to the City Treasurer about leveraging debt; a presentation has not been made to the FSC, but doing so would not be a problem. Councilmember Matarrese stated the FSC is considering a debt vehicle as one options. Mayor Johnson stated the City Treasurer had to leave, but could not comment since he had not seen the details; the matter should be discussed with the City Treasurer and he could bring it to the FSC. In response to Mayor Johnson's request, the Interim Finance Director provided a breakdown of the annual payment structure. Special Meeting Alameda City Council 28 February 7, 2009 | CityCouncil/2009-02-07.pdf |