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File Number: 18-139 <br />City Council Committee Review and Action <br />The Finance Committee reviewed and approved this refunding on 11/14/17. <br />Fiscal Impact <br />Under Senate Bill 450 that governs the issuance of bonds with a term greater than 13 months, the <br />following information with regard to fiscal impact was previously disclosed to the public in <br />connection with the approval of the Refunding Bonds on 12/18/17: <br />(A) The true interest cost of the Refunding Bonds, which means the rate necessary to discount <br />debt service payments over time back to the purchase price, which includes all issuance costs, is <br />currently estimated to be 3.45%. The actual true interest cost is determined when the Refunding <br />Bonds are sold to the underwriter on the day of pricing. <br />(B) The finance charge of the bonds, which means the sum of all fees and charges paid to third <br />parties, is currently estimated to be $426,117. This assumes $82,604 for underwriter’s <br />compensation, $43,513 for a surety policy in place of a funded debt service reserve fund and <br />about $300,000 for other costs of issuance such as bond and disclosure counsel, municipal <br />advisor, rating agency, trustee and fiscal consultant. <br />(C) The net proceeds of the Bonds (net of finance charges described above) is currently <br />estimated to total $25,764,872.78. Of this amount, $2,395,000 from the taxable series will be <br />used to settle the taxable use of proceeds issue involving the 2008 TABs, and the remainder of <br />the proceeds will redeem the current outstanding balance of the 2008 TABs. <br />(D) The total debt service payment of the Refunding Bonds to the final maturity date of 9/1/38 is <br />currently expected to be $29,958,369.58, compared to total debt service payment of the 2008 <br />TABs during the same period of $37,734,908.75. <br />Budget Authority <br />City of San Leandro Charter <br />Attachments: <br />Resolutions approving issuance of the Preliminary Official Statement and the Debt Management <br />Policy. <br />CONCLUSION <br />Staff recommends that City Council and the Successor Agency Board approve the resolutions <br />and documents required to issue the Successor Agency to the Redevelopment Agency of the City <br />of San Leandro Alameda County - City of San Leandro Redevelopment Project Tax Allocation <br />Refunding Bonds, Series 2018A (Series A Bonds) and Alameda County - City of San Leandro <br />Redevelopment Project Tax Allocation Refunding Bonds, Series 2018B (Federally Taxable). <br />Page 4 City of San Leandro Printed on 3/27/2018 <br />91