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Issuance of 2018 Tax Allocation Refunding Bonds December 20, 2017 Allocation Nominal Savings PV Savings Taxing Entity 12% $1,019,208 $540,783 City of San Leandro 25% $2,123,350 $1,126,632 County of Alameda 46% $3,906,964 $2,073,003 School districts 17% $1,443,878 S766,110 Special districts 100% $8,493,400 $4,506,528 Financing Structure and Process State law now allows only for the issuance of refunding tax allocation bonds and does not allow for funding new projects. After the Successor Agency Board approves the initial financing documents for the Refunding Bonds, the Oversight Board must approve the issuance of refunding bonds and then the State Department of Finance has 60 days after receipt of these approvals to give its authorization. This long approval process is why pricing is not expected until March 2018. This refunding is structured as an "advance" refunding, meaning the closing date is anticipated to be more than 90 days in advance of the first optional call date of 9/1/18 on the 2008 TABS. Congressional tax reform efforts include proposals to prohibit advance refundings, which means local agencies throughout the country would be limited to "current" ref endings, where the refunding closing date is within 90 days of the first optional call date on the debt to be refunded. There is a possibility that we may have to delay pricing to May 2018 so that we can close in early June to be within the 90-day current refunding window. There is no way to accurately predict what will happen to interest rates during this period. The Financing Team Staff has been working with the firms listed below to bring this financing transaction for approval. Name of Firm Raymond James & Associates, Inc. Kitahata & Company Jones Hall, APLC U.S. Bank National Association Capacity Underwriter Municipal Advisor Bond Counsel & Disclosure Counsel Trustee & Escrow Agent Raymond James was chosen through a request for proposals to a select list of underwriters experienced in the refunding of California TABS. Kitahata & Company was chosen last year via a separate request for proposals for municipal advisors that will expire with the issuance of the Refunding Bonds. The primary reasons for the selection of both firms included relevant experience, pricing, and structuring creativity. Jones Hall has been the City's bond counsel dating back to 1979. Jones Hall ranks as one of the top bond counsel in the number of state and local bond issues in California during each of the past ten years, and similarly has ranked as one of the top disclosure counsel in California during this same period. U.S. Bank is the existing bond trustee for the 2008 TABS to be refunded. U.S. Bank is one of the top five municipal bond trustees in the country and most recently served as trustee for the City's 2016 Refunding Lease Revenue Bonds. U.S. Bank also serves the City with two local branch offices. The municipal advisor for the Refunding Bonds attests that the fees proposed by Jones Hall and U.S. Bank are equal to or below comparable fees for such services charged for similar financings.