pages: CityCouncil/2009-02-07.pdf, 5
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CityCouncil | 2009-02-07 | 5 | out of the reserve if the fund did not have a reserve, funds would have to come from operating expenses, which would have impacted staffing. Vice Mayor deHaan inquired whether the funds had been obligated, to which the Development Services Director responded in the negative. The Interim Finance Director stated it would take 15 years to accumulate the amount of cash needed for a redevelopment project; debt is the nature of redevelopment. Mayor Johnson stated redevelopment transforms blighted areas into positive parts of the community. Councilmember Matarrese stated ISF touch other funds ; the balance sheet has a $5 million negative liability; inquired whether $2. 7 million needs to be made up from other funds. The Interim Finance Director responded in the affirmative stated alternatives would be reviewed after lunch; continued the debt presentation. In response to Mayor Johnson's inquiry regarding Golf Course debt, the Interim Finance Director stated Certificates of Participation (COP) were used for driving range improvements. Mayor Johnson stated a policy needs to be in place to ensure that debt does not extend to the life of the project the driving range needs major renovations and the previous renovations have not been paid off. The City Manager stated the issue would be added to the issue bin. Councilmember Tam stated the COP were financed at a 4.5% interest rate; inquired whether the amount is lower now. The Interim Finance Director responded in the negative; stated tax- exempt issues in the market today are at 9%. Mayor Johnson stated the State's historically low bond rating has a direct impact on cities and local government; the City's bond rating has not changed, but the ability to obtain bonds is affected. The Interim Finance Director stated the City had to respond to a series of questions from a bond-rating agency due to an outside claim that the City is going into bankruptcy. Special Meeting Alameda City Council 5 February 7, 2009 | CityCouncil/2009-02-07.pdf |