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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2018
<br />I NOTE 16 -SUCCESSOR AGENCY ACTIVITIES (Continued)
<br />On the date of issuance of the 2014 Bonds, the Successor Agency deposited into the reserve account for the
<br />2014 Bonds a municipal bond debt service insurance policy in the amount of $1,121,078, which is equal to
<br />the "Reserve Requirement" for the 2014 Bonds. Neither the balance in the reserve account nor the Reserve
<br />Requirement for the 2014 Bonds has changed since such date.
<br />At June 30, 2018, future debt service requirements for the 2014 Tax Allocation Refunding Bonds were as
<br />follows:
<br />For The Year
<br />Ending June 30 Principal Interest Total
<br />2019 $ $ 537,825 $ 537,825
<br />2020 405,000 527,700 932,700
<br />2021 485,000 505,450 990,450
<br />2022 675,000 476,450 1,151,450
<br />2023 720,000 441,575 1,161,575
<br />2024-2028 3,920,000 1,638,375 5,558,375
<br />2029-2033 4,280,000 607,213 4,887,213
<br />2034-2035 750,000 26,425 776,425
<br />$ 11,235,000 $ 4,761,013 $ 15,996,013
<br />2018 Tax Allocation Refunding Bonds Series A
<br />On May 8, 2018, the Successor Agency issued Tax Allocation Refunding Bonds (2018A TABs) in the
<br />amount of $16,845,000. The proceeds of the bonds will be used to refund the 2008 Tax Allocation Bonds,
<br />Series 2008. Principal payments of the 2018A TABs are due annually on September from 2023 to 2039 in
<br />amounts ranging from $430,000 to $1,370,000 and bear interest at rates ranging from 3.375% to 5.000%.
<br />Interest is payable semiannually March 1 and September 1. The Bonds are payable solely from tax
<br />increment revenue generated in the Alameda County -City of San Leandro Redevelopment Project Area.
<br />Total principal and interest remaining to be paid on the Bonds was $26,170,146 as of June 30, 2018.
<br />The refunding resulted in an overall debt service savings of $5,396,926. The net present value of the debt
<br />service savings, called an economic gain, amounted to $3,752,681.
<br />The bonds were issued at a premium of $1,809,519 which is being amortized over the 21-year life of the
<br />bonds resulting in an annual amortization of $86,168.
<br />On the date of issuance of the 2018A TABs, the Successor Agency deposited into the reserve account for
<br />the 2018A TABs a municipal bond debt service insurance policy in the amount of $1,431,438, which is
<br />equal to the "Reserve Requirement" for the 2018A T ABs.
<br />Proceeds from the 2018A T ABs were deposited in an irrevocable trust with an escrow agent to provide
<br />funds to fully redeem, on June 5, 2018, the outstanding principal and accrued interest of the 2008 Tax
<br />Allocation Bonds.
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