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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2019
<br />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 $1,121,078, which is equal to
<br />the "Reserve Requirement" for the 2014 Bonds. Neither the balance in the reserve account nor the Reserve
<br />Requirement for the 2014 Bonds has changed since such date.
<br />At June 30, 2019, future debt service requirements for the 2014 Tax Allocation Refunding Bonds are as
<br />follows:
<br />For The Year
<br />Ending June 30
<br />Principal
<br />Interest
<br />Total
<br />2020
<br />$ 405,000
<br />$ 527,700
<br />$ 932,700
<br />2021
<br />485,000
<br />505,450
<br />990,450
<br />2022
<br />675,000
<br />476,450
<br />1,151,450
<br />2023
<br />720,000
<br />441,575
<br />1,161,575
<br />2024
<br />740,000
<br />405,075
<br />1,145,075
<br />2025-2029
<br />4,025,000
<br />1,439,750
<br />5,464,750
<br />2030-2034
<br />3,805,000
<br />420,538
<br />4,225,538
<br />2035-2035
<br />380,000
<br />6,650
<br />386,650
<br />$ 11,235,000
<br />$ 4,223,188
<br />$ 15,458,188
<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 $25,998,412 as of June 30, 2019.
<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 TABS.
<br />Proceeds from the 2018A TABS 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.
<br />H11
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