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Minutes - San Leandro City Council Meeting - January 19, 1993 Page - 11 - NEW BUSINESS (continued) The following Motion was then introduced: Minute Order No. 93-03. Matter of Request from Classical Philharmonic Orchestra for $5,000 Grant in Fiscal Year 1992-93. (1187/1028) On motion by Council Member Kerr, who moved its approval , seconded by Council Member Perry, and carried by the following called vote, the City Council denied the request from the Classical Philharmonic Orchestra for a $5,000 grant for Fiscal Year 1992-93. AYES: Council Members Corbett, Faria, Kerr, Myers, Perry, Polvorosa; ( 6 ) NOES: None ( 0 ) ABSENT: Mayor Karp ( 1 ) 8. PUBLIC HEARINGS A. Matter of Consideration of Approval for the Issuance by the San Leandro Housing Finance Corporation of Its Mortgage Revenue Refunding Bonds, Series 1993A (FHA Insured Mortgage Loan -- Ashland Village Apartments Section 8 Assisted Project) . This being the time and place for the Public Hearing on the above matter, John Jermanis, Director of Finance, said, in 1982, the City Council formed the San Leandro Housing Finance Corporation, a non- profit corporation, to provide low-income housing, which was provided in the Ashland area. He said, at the time, bonds in the amount of $7.5 million were issued. He said the City now has its first opportunity to refinance those bonds from the current 10%o interest rate to less than 7%. He said the City Council Agenda contains a Resolution that will approve authorizing the Housing Corporation to issue the bonds and includes a series of items which provide for bond counsel , underwriter, etc. Council Member Corbett said it appeared this would be an annual savings of $150,000. Mr. Jermanis said that was correct, but half of that amount will go to the Federal Government, so it would result in a $75,000 savings to the City. The Hearing was then opened to the public. Lou Filipovich, asked a number of questions related to when the first bond was issued, its cost at the time, and its value now. Mr. Jermanis said that the developer sees no benefit out of this refinance; the mortgage payment would stay the same. He said the outstanding debt is still about $7.3 million, and to replace it will be about the same. He said it takes a long time for the principal payment to go down. He said this is not a debt of the City.