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File Number: 16-511 <br />Par Amount of Refunding Bonds………….…………...$ 14,300,000 <br />Premium……………………………………………… 1,957,192 <br />Total Sources of Funds $ 16,257,192 <br />Uses of Funds <br />Refunding Escrow Deposit………………………………$ 16,041,058 <br />Underwriter’s Discount…………………………….…… 57,255 <br />Costs of Issuance……………………………………….. 158,879 <br />Total Uses of Funds $ 16,257,192 <br />Sources of funds include original issue premium on the Refunding Bonds because it is <br />assumed that coupons will be higher than yields - if this is not the case and coupons go lower <br />to be closer to yields, the premium will go down and the par amount of Refunding Bonds will <br />go up, but overall debt service will be about the same because of the lower coupons. The <br />Refunding Bond proceeds will be deposited in the 2007 COPs Refunding Escrow to retire the <br />outstanding 2007 COPs on the projected closing date of 12/2/16. A Debt Service Reserve <br />Fund will not be funded in this issue, because the City’s credit strength should allow for a <br />strong rating without needing funded reserve. The City’s credit strength also means that bond <br />insurance will not be necessary for this transaction. The Underwriter’s Discount is a fee paid <br />to the underwriter for structuring and marketing the Refunding Bonds. The Costs of Issuance <br />funds pay for legal, financial advisor, City staff, trustee, printing and other issuance costs. <br />Authorizing Resolutions <br />If the City Council elects to proceed with the refunding, the City and Authority must approve <br />the following resolutions to issue the Refunding Bonds. <br />A Resolution of the City Council of the City of San Leandro Approving Documents and <br />Actions Relating to the Refinancing of 2007 Certificates of Participation - This resolution <br />authorizes the City to issue the Refunding Bonds in an amount not to exceed $15,800,000 <br />and for an Underwriter’s discount not to exceed 0.45% and to execute the documents <br />required to complete the financing transaction. <br />Resolution of the San Leandro Public Financing Authority Authorizing the Issuance and <br />Sale of 2016 Refunding Lease Revenue Bonds to Refinance Outstanding 2007 <br />Certificates of Participation, and Approving Related Documents - This resolution <br />authorizes the Authority to enter into the Refunding Bonds transaction and execute the <br />required lease agreements, so long as minimum net present value savings to the City are at <br />least 5% of the principal amount of the outstanding 2007 COPs. <br />Bond Documents <br />The City Council and the San Leandro Public Financing Authority must approve the following <br />documents to complete the Refunding Bonds transaction. <br />Site Lease - The Site Lease is between the City and the San Leandro Public Financing <br />Authority. This is the agreement that establishes the lease of the Main Library to the <br />Authority. This agreement specifies the terms of the lease arrangement. <br />Lease Agreement - This agreement establishes the leaseback of the Main Library from the <br />Page 3 City of San Leandro Printed on 10/11/2016