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<br />CITY OF SAN LEANDRO <br /> <br />MEMORANDUM <br /> <br />DATE: March 16,2007 <br /> <br />TO: Finance Committee <br /> <br />FROM: JesseBa10ca, Finance Direc~ <br /> <br />SUBJECT: Refunding of the 1999 Certificates of Participation (Certificates) <br /> <br />RECOMMENDATION <br />Staff recommends Finance Committee acceptance of the proposed schedule to refund the 1999 <br />Certificates (Library and Fire Station's Financing) resulting in an approximate net present value <br />savings of $2.1 million or $150k annually. The refunding plan will also remove the fire stations <br />9, 12, and 13 as collateral for the Certificates, leaving the Library Community Center as the only <br />collateral. <br /> <br />BACKGROUND AND DISCUSSION <br />In November 1, 1999, the City executed and delivered $26 million in aggregate principal for the <br />1999 Certificates. The Certificates were sold to finance the Library and Community Center <br />Improvements for approximately $13.5 Million and the acquisition and construction of Fire <br />Stations 10 and 11 for approximately $6 Million. The Certificates were sold at a net interest cost <br />of approximately 5.70% and in today's market can be refinanced at approximately 4.15%. The <br />savings to the City as a result of the refinancing would be as follows: <br /> <br /> <br />"'-' ':'-,:',":'--".:'; ":::. '-'-\<:-"_:. ':_".",.",: ":- <br />..:l?JU'A!IijQPpt <br />. ......'e;"\hfe~(ly. . <br />".~'~<t~~~~ijilfg;. <br /> <br />',-' ;-";;--. <br /> <br /> <br /> <br />y .'. ..... ~~fl.lndjngE~tlm"~~t~g\>j~~~.~j~*l~d <br />i@ert1flc3'tesPar . A41fliUaili{l~elit!<,';~':ntllf~k <br />.A:mo.tln:.t8'erVic~(\\. '. ,. .......i~~ylfl'gs. ./ <br /> <br />$25,345,000 <br /> <br />$1,716,000 <br /> <br />$150,000 <br /> <br />$3,442,074 <br /> <br />$2,105,108 <br /> <br />8.92% <br />