pages: CityCouncil/2010-07-27.pdf, 19
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CityCouncil | 2010-07-27 | 19 | (10-389A CC) Resolution No. 14481, "Establishing Appropriations Limit for Fiscal Year 2010-2011. Adopted; (10-389B CC) Resolution No. 14482, "Approving and Adopting the Operating and Capital Budget and Appropriating Certain Moneys for Said Expenditures in Fiscal Year 2010-2011.' Adopted; (10-63 CIC) Resolution No. 10-170, "Approving and Adopting the Operating and Capital Budget and Appropriating Certain Moneys for Said Expenditures in Fiscal Year 2010- 2011.' Adopted; and (ARRA) Resolution No. 48, "Approving and Adopting the Operating and Capital Budget and Appropriating Certain Moneys for Said Expenditures in Fiscal Year 2010-2011. Adopted. The Interim City Manager/Executive Director gave a presentation. Mayor/Chair Johnson requested clarification on call provisions. The Interim City Manager/Executive Director stated call provisions are structured and indentured when bond holders are able to be paid off; sometimes call provisions are limited and conditions are structured in a municipal debt as an incentive to the buyer of the municipal debt because no one wants to take X amount of dollars if the bond will be called; the debt service term has not been expanded. Mayor/Chair Johnson inquired whether doing that kind of debt made sense at the time; stated the 2000 AMP bonds that are being refinanced did not make sense even in 2000; policies need to be in place to ensure that bad debt is not done. The Interim City Manager/Executive Director stated a lot of cities do dirt bonds [Community Facilities Districts]; the best ratio is $1 of debt for every $4 of land value; the City needs more elaborate financial policies; municipal debt has variations. Mayor/Chair Johnson stated the issue with the 2000 bonds is that the bonds were taxable. The Interim City Manager/Executive Director stated in general, taxables have been at a higher rate; nowadays, cities can get taxables that are less than a municipal rate because city tax credit is not as good as some taxables; government can no longer budget for just a year. Mayor/Chair Johnson inquired whether the bond that Council did not like a couple of years ago and sent back a number of times cannot be refunded. The Interim City Manager/Executive Director responded the bond would be difficult to refund in today's market; at the time, the bond probably made sense to relieve the Special Joint Meeting Alameda City Council, Alameda Reuse 19 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 | CityCouncil/2010-07-27.pdf |