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City of San Leandro <br />Meeting Date: September 2, 2014 <br />Staff Report <br />Agenda Section:File Number:14-359 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for Resolution Approving the Issuance of the Successor Agency <br />to the Redevelopment Agency of the City of San Leandro 2014 Tax Allocation <br />Refunding Bonds <br />SUMMARY AND RECOMMENDATION <br />Staff recommends that City Council approve the resolution and Preliminary Official Statement <br />(“POS”) associated with the Successor Agency to the Redevelopment Agency of the City of San <br />Leandro (the “Successor Agency”) 2014 Tax Allocation Refunding Bonds (the “Refunding <br />Bonds”). The proposed Refunding Bonds will be issued to refund $10,375,000 of outstanding <br />2002 Tax Allocation Bonds (“2002 TABs”) and $4,720,000 of outstanding 2004 Tax Allocation <br />Bonds (“2004 TABs”). Annual debt service on the Refunding Bonds will not exceed the annual <br />debt service currently payable on the outstanding 2002 and 2004 TABs. <br />DISCUSSION <br />Prior to the dissolution of the former Redevelopment Agency (“RDA”) of the City of San <br />Leandro, the RDA issued Tax Allocation Bonds in 2002 and 2004 (the “Prior Bonds”). The <br />proceeds of the 2002 and 2004 TABs were used to finance redevelopment activities in the <br />Plaza Redevelopment Area and West San Leandro/MacArthur Boulevard Redevelopment <br />Area, respectively. Debt service payments associated with the Prior Bonds are now the <br />responsibility of the Successor Agency and are secured and paid through the Recognized <br />Obligation Payment Schedule process. Based on an analysis conducted by Public Financial <br />Management (“PFM”) and Stifel Nicolaus & Co. (“Stifel”), it has been determined that there is <br />adequate savings to pursue a refunding of the Prior Bonds. <br />In order to pursue the refunding, the following actions have occurred: <br />·The Successor Agency approved undertaking the refunding at its meeting on June 16, <br />2014; <br />·The Successor Agency requested direction from the Oversight Board to undertake <br />proceedings for the refunding on June 25, 2014; <br />Page 1 City of San Leandro Printed on 8/26/2014