8D Consent 2007 0416 - Laserfiche WebLink

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CITY OF SAN LEANDRO APPROVED AND FORWARDED TO CITY COUNCIL STAFF REPORT DATE: April 10, 2007 TO: John Jermanis, City Manager FROM: Jesse Baloca, Finance Direc# SUBJECT: Refunding of the 1999 Certificates of Participation (Certificates) RECOMMENDATION The Proposal to refund the 1999 Certificates (Library and Fire Station's Financing) will result in an approximate net present value savings of$2.1 million or $150k annually. The refunding plan will also remove the fire stations 9, 12, and 13 as collateral for the Certificates, leaving the Library Community Center as the only collateral. In summary, staff recommends the San Leandro Public Financing Authority adopt the following Resolution: · Resolution authorizing the execution and delivery of not-to-exceed $26,000,000 City of San Leandro 2007 Certificates of Participation (Library and Fire Stations Refunding Project), authorizing and directing execution of related lease financing documents, Trust Agreement, and Escrow Agreement, approving Official Statement and authorizing official actions. Staff also recommends the City Council adopt the following Resolution: · Resolution authorizing the execution and delivery of not-to-exceed $26,000,000 City of San Leandro 2007 Certificates of Participation (Library and Fire Stations Refunding Project), authorizing and directing execution of related lease financing documents, Trust Agreement and Escrow Agreement, approving Official Statement and authorizing official actions. BACKGROUND AND DISCUSSION Cities borrow money directly from the debt market by issuing bonds and certificates of participation. This is similar to a homeowner borrowing from a bank by entering into a mortgage to purchase their home. Then from time to time as interest rates decrease, like homeowners, Cities refinance their bonds in order to reduce their annual payments. Staff Report 4 16 07