|
CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2014
<br />NOTE 17 — SUCCESSOR AGENCY ACTIVITIES (Continued)
<br />2002 Tax Allocation Bonds
<br />In fiscal year 2004, the former Redevelopment Agency issued $15,935,000 principal amount of Tax
<br />Allocation Bonds (2002 TABS) to refund the 1993 Tax Allocation Bonds (1993 TABs) used to finance
<br />the redevelopment activities within the Plaza Project Area (which have been completed) and to finance
<br />new redevelopment projects as set forth in the former Redevelopment Plan. The bonds consist of serial
<br />bonds that mature annually through 2018 in amounts ranging from $305,000 to $860,000 and term bonds
<br />maturing in 2020 in the amount of $1,200,000, 2025 in the amount of $2,355,000 and 2033 in the amount
<br />of $3,520,000. Interest rates vary from 2.90% to a maximum of 6% and are payable semiannually on
<br />September 1 and March 1.
<br />The refunding of the outstanding 1993 TABs resulted in a present value loss of $70,679 or 1.1% of the
<br />principal amount of the refunded bonds. The nominal economic loss was necessary in order to raise the
<br />$8,015,000 of new money that was generated through the financing. Because of a prohibitively high
<br />additional bonds test on the 1993 TABs (225%) it was necessary to refund the outstanding bonds in order to
<br />most efficiently raise the new money. According to the analysis completed by the City's financial advisor,
<br />the Agency raised $321,000 more through using the refunding than they could have raised using a
<br />subordinate lien new money only issue.
<br />At June 30, 2014, future debt service requirements for the 2002 Tax Allocation Bonds were as follows:
<br />For The Year
<br />Ending June 30
<br />Principal
<br />Interest
<br />Total
<br />2015
<br />$ 705,000
<br />$ 627,380
<br />$ 1,332,380
<br />2016
<br />745,000
<br />588,583
<br />1,333,583
<br />2017
<br />790,000
<br />546,348
<br />1,33 6,348
<br />2018
<br />835,000
<br />500,430
<br />1,335,430
<br />2019
<br />860,000
<br />451,477
<br />1,311,477
<br />2020-2024
<br />2,580,000
<br />1,716,997
<br />4,296,997
<br />2025-2029
<br />2,520,000
<br />997,608
<br />3,517,608
<br />2030-2033
<br />2,045,000
<br />237,750
<br />2,282,750
<br />$ 11,080,000
<br />$ 5,666,573
<br />$ 16,746,573
<br />2004 Tax Allocation Bonds
<br />In 2004, the City issued $5,500,000 principal amount of 2004 Tax Allocation Bonds (2004 TABs). The
<br />purpose of the 2004 TABs was to assist the former Redevelopment Agency of the City finance
<br />redevelopment activities within the West San Leandro/MacArthur Boulevard former Redevelopment Project
<br />Area of the City. The 2004 TABs bear interest rates ranging from 5.00% to 5.75% and are payable
<br />semiannually on each March 1 and September 1. Principal payments are payable annually on September 1.
<br />The debt is secured and payable from the tax increment revenues from the West San Leandro/MacArthur
<br />Boulevard former Redevelopment Project area within the City.
<br />
|