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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2012
<br />
<br />
<br />98
<br />
<br />NOTE 18– REDEVELOPMET AGENCY DISSOLUTION AND SUCCESSOR AGENCY
<br />ACTIVITIES, continued
<br />
<br />H. Long-Term Debt Obligations, continued
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<br />2002 Tax Allocation Bonds
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<br />In fiscal year 2004, the City’s Redevelopment Agency issued $15,935,000 principal amount of Tax Allocation Bonds
<br />(2002 TABs) to refund the City’s 1993 Tax Allocation Bonds (1993 TABs) used to finance the redevelopment
<br />activities within the Plaza Project Area (which have been completed) and to finance new redevelopment projects as set
<br />forth in the Redevelopment Plan. The bonds consist of serial bonds that mature annually through 2018 in amounts
<br />ranging from $305,000 to $860,000 and term bonds maturing in 2020 in the amount of $1,200,000, 2025 in the
<br />amount of $2,355,000 and 2033 in the amount of $3,520,000. Interest rates vary from 2.90% to a maximum of 6%
<br />and are payable semiannually on September 1 and March 1. The debt is secured and payable from the property tax
<br />increment revenues from the Joint Project Area within the City.
<br />
<br />The refunding of the outstanding 1993 TABs resulted in a present value loss of $70,679 or 1.1% of the principal amount
<br />of the refunded bonds. The nominal economic loss was necessary in order to raise the $8,015,000 of new money that
<br />was generated through the financing. Because of a prohibitively high additional bonds test on the 1993 TABs (225%) it
<br />was necessary to refund the outstanding bonds in order to most efficiently raise the new money. According to the
<br />analysis completed by the City’s financial advisor, the Agency raised $321,000 more through using the refunding than
<br />they could have raised using a subordinate lien new money only issue.
<br />
<br />At June 30, 2012, future debt service requirements for the 2002 Tax Allocation Bonds were as follows:
<br />
<br />For the Year
<br />Ending
<br />June 30,Principal Interest Total
<br />2013 635,000$ 1,053,739$ 1,688,739$
<br />2014 670,000 663,483 1,333,483
<br />2015 705,000 627,380 1,332,380
<br />2016 745,000 588,583 1,333,583
<br />2017 790,000 546,348 1,336,348
<br />2018-2022 3,345,000 2,066,448 5,411,448
<br />2023-2027 2,410,000 1,291,966 3,701,966
<br />2028-2032 2,605,000 531,450 3,136,450
<br />2033 480,000 14,400 494,400
<br />Total Debt Service 12,385,000$ 7,383,795$ 19,768,795$
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