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Issuance of 2018 Tax Allocation Refunding Bonds December 20, 2017 All fees associated with issuing the Refunding Bonds will be paid from bond proceeds. Sources and Uses of Funds Staff projects the following sources and uses of funds for the Refunding Bonds financing transaction. $20,795,000 Series 2018 par $23,324,363 Series 2008 refunding escrow 1,202,050 Original issue premium 427,891 Costs of issuance & misc. 1,836,845 Series 2008 reserve fund 81,008 Underwriter's discount 42,011 Series 2008 d/s account 42,644 Surety (3% of MADS) $23,875,906 Total sources of funds $23,875,906 Total uses of funds Sources of funds include original issue premium on the Refunding Bonds because it is assumed that coupons will be higher than yields — if this is not the case and coupons go lower to be closer to yields, the premium will go down and the par amount of Refunding Bonds will go up, but overall debt service will be about the same because of the lower coupons. The Refunding Bond proceeds will be deposited in the Series 2008 refunding escrow to retire the outstanding 2008 TABS on the projected closing date of 3/21/18. The City hopes to purchase a surety in place of funding a debt service reserve fund, because this should increase refunding savings. The underwriter's discount is a fee paid to the underwriter for structuring and marketing the Refunding Bonds. The costs of issuance account funds pay for legal, financial advisor, trustee, printing and other issuance costs including a City administrative fee to pay for City staff time. Authorizing Resolutions The Oversight Board of the Successor Agency must approve the following resolutions to issue the Refunding Bonds. Resolution of the Oversight Board for the Successor Agency to the Redevelopment Agency of the City of San Leandro Approving Issuance of Refunding Bonds, Making Certain Determinations with Respect to the Refunding Bonds and Providing Other Matters Relating Thereto — This resolution authorizes the issuance of Refunding Bonds in an amount not to exceed $23,000,000 and directs the Successor Agency to execute the documents required to complete the financing transaction. Bond Documents The Successor Agency has approved the following agreements and documents: Indenture of Trust — This agreement is between the Successor Agency and U.S. Bank as trustee, and sets forth the guidelines for the administration, investment and treatment of the proceeds of the Refunding Bonds. Irrevocable Refunding Instructions — These instructions direct U.S. Bank as trustee to establish a Series 2008 refunding escrow with proceeds of the refunding bonds that will redeem the 2008 TABS on the first optional call date on 9/1/18. Bond Purchase Agreement — This agreement is between the Successor Agency and Raymond James as underwriter by which the underwriter purchases the Refunding Bonds. The agreement