Speaker 0: All those in favor. I oppose abstentions. Motion carries unanimously. Thank you. And our next item is 60.
Speaker 1: Recommendation to accept report on sale, a successor agency to the Community Improvement Commission of the City of Alameda, 2014. Bon.
Speaker 4: If this woman off her feet.
Speaker 3: This is a really good news report, and I'm glad that I get to end with this really good news report. We recently did a refinancing of the 2003 CIC tax allocation bonds, and as a result of that refunding, the City of Alameda General Fund will receive an additional $381,000 per year over the next each year through 2003 . Now, that is a $9 million worth of savings over the life of the bonds. So the interest rates coming down, the timing of what we did, the teamwork of the underwriters and the financial advisor and the Bond Council of pulling things together in a way that got things timed just right, made it a wonderful deal for us . And the underwriters worked very hard, as you can read. And in the report one of the series was oversubscribed substantially and that is just very rare in today's market. So I want to personally thank the team for doing such a great job and it's wonderful that we are able to bring that money back to the general fund
Speaker 7: . And if I may, we're reaping the benefits of our bonds upgrades from last year.
Speaker 3: That's true.
Speaker 7: Yeah.
Speaker 5: And an American it. Our bond upgrades. The quality of our bond upgrades are a function of the quality of our city and the stability and the economic growth. And they have a community that we have. So to the extent that we continue moving forward. Obviously that's where we lead.
Speaker 3: That serves as a foundation.
Speaker 4: Well, may I just add to that? Yes. That and and I would also, because we are member de soccer and I were on that council that staff has worked diligently to chip away at our our deficit. And that was recognized by the market that rewarded us with an upgrade in our our investment in our credit rating. And so that is benefiting us as well. Thank you so much.
Speaker 0: Do we have any public speakers on this item? All right. Any other comments by members or questions member?
Speaker 8: I'll just be real quick. I want to kind of second what Councilmember De Sorkin and Councilmember Ashcraft said. You know, congrats to staff. Nice job, finance staff, city manager and the council that came before us for putting us in this position.
Speaker 6: If I could have the interim finance director repeat how many years that this is through, this is not one time revenue.
Speaker 3: No, it is not. It it's 2033. Excellent. And that's an average amount. Some years it will be higher. Some years a little bit lower, depending on what the debt service is in the new bond issue.
Speaker 6: So that's a healthy chunk. It's a thanks to all who had a part in that.
Speaker 0: Member.
Speaker 4: Ashcroft I was going to ask a question. It's probably in the weeds. Ms.. Boyer But on Exhibit one, which is the postal pricing summary letter, and this is on page three, and it's talking about credit ratings and just before that table where it compares the strengths with the weaknesses. So it says the 2014 refunding is considered a credit positive as it reduces the city's debt service of tax allocation bonds. Below is a table summarizing the primary strengths and weaknesses highlighted in the credit rating report. And I understand what they're calling our strengths, that we are in a strong taxing area and central location within the San Francisco Bay Area economy. Strong semiannual coverage on the 2014 bonds and limited ability to issue additional debt. Can you help me understand the two bullet points in the Weaknesses column there?
Speaker 3: I hope so.
Speaker 4: I mean, I know you can. So.
Speaker 3: Every every parcel gets an assessment. Each of those.
Speaker 4: So so we just start out and tell those who are listening and maybe not following along that the first.
Speaker 3: The first.
Speaker 4: Point.
Speaker 3: Yeah, the first weakness is moderate taxpayer concentration with significant outstanding assessment appeals. So every every parcel is assessed, every owner can appeal an assessment each year. And we have a. Somewhat moderate concentration. It's not a little bit and it's not a whole lot, but it's more than they would like to see of people parcels within the CIC districts. Being appealed. Well that's a result of the economy here and now we're coming out of that. In fact, we believe that we will have all of those settled in the next two year cycle. The second bullet is refunding indenture provisions that do not require the agency to set aside full annual debt service on the 2014 bonds in the first half of every bond year. This is a function of the. Redevelopment changes that the state made and what the state we have to file what are called ROPS and I'm sorry but I'm not going up the the obligation payments. So we have to file with the Department of Finance a six month request for more money. They have to approve it. They send it to the county. The county pays us for just that six months. And what the under what the right underwriting are the credit agencies would like to see is they would like to see see you getting the whole year's debt service in the first six months and d0f will not approve or has not so far approved that. I understand that there may be some changes coming and we don't know if that's going to be included or not, but that's what that weakness refers to.
Speaker 4: All right. You are a wealth of knowledge. Thank you so much.
Speaker 2: I swear.
Speaker 6: I'm just going to make a motion to accept this fine report. Good news.
Speaker 0: All those in favor. I oppose abstentions. Motion carries unanimously. Thank you very much. And now we can proceed to item number seven.
Recommendation to Accept Report on Sale of Successor Agency to the Community Improvement Commission of the City of Alameda 2014 Bonds.  (Finance 2410) (Continued from January 20, 2015)