5A Public Hearing 2018 1203 - Laserfiche WebLink

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File Number: 18-607 $20,000,000 of net bond proceeds to fund the Capital Facilities, as described below. The par value of the 2018 Bonds will not exceed $22 million, the true interest cost (“TIC”) will not exceed 5%, and the final maturity date will not exceed November 1, 2048. DISCUSSION The $20 million in net proceeds of the 2018 Bonds will be combined with other appropriations to fund the five capital improvement projects described in the table below. Projects Est. Cost Bond Funding Est. Bid Opening Police Bldg. & South Office $9,417,000 7,093,000*October 2018 Mulford-Marina Library 3,800,000 2,500,000 September 2019 Manor Park Competition Pool 5,800,000 5,600,000 March 2019 Farrelly Pool 3,500,000 1,200,000 June 2019 Casa Peralta Improvements 4,410,000* 3,607,000 August 2019 $27,650,000 20,000,000 *Amounts listed reflect changes requested as part of the Police Building / South Office project awarded on November 5, 2018. Net proceeds of the 2018 Bonds are expected to be used for the projects described above, but the City has the discretion to substitute other projects at any time. With the exception of the Mulford-Marina Branch Library project, all of the listed projects are funded with existing appropriations. The estimated cost of the Mulford-Marina Branch Library is $1.0 million more than the existing appropriations. Nevertheless, the City intends to build the library as envisioned. To fully fund the project, staff will look first at revenues from the Shoreline development to cover the shortfall. Should that project not generate sufficient revenue, staff would explore re-allocating from other projects or using CIP funding from the upcoming two-year budget. Funding options for this project will be brought forward for City Council consideration when more information becomes available regarding the fiscal impacts of the Shoreline development project. Financing Structure In December 2016 the Authority issued $14,125,000 principal amount of 2016 Refunding Lease Revenue Bonds (2016 Bonds) to refinance 2007 certificates of participation, which the City had caused to be executed and delivered to finance improvements to the Main Library and the acquisition and construction of two fire stations. The 2016 Bonds are secured by lease payments made by the City to the Authority pursuant to a lease agreement for use of the Main Library; the Main Library is leased by the City to the Authority pursuant to a Site Lease. The 2016 lease agreements used the Main Library as the leased asset; using an existing essential-function asset makes for a stronger financing. The Main Library has sufficient value to serve as the leased asset for both the outstanding 2016 Bonds and the proposed 2018 Bonds. The City will make debt service payments for the 2018 Bonds (just like the 2016 Bonds) in the form of lease payments from the General Fund. Page 2 City of San Leandro Printed on 11/27/2018