Presentation TitleSecond Line
August 15, 2016
1 *City of Alameda Financing Authority is the correct entity, not the Alameda Public Financing Authority, including all references and legislation.
City of Alameda Financing Authority*
2023 Lease Revenue Bonds
For the City Aquatic Center
September 19, 2023
Background
On February 21, 2023, City Council authorized funding the City Aquatic Center, estimated to cost $30 million as follows:
Up to 50% ($15 million) of the construction cost of the Center project from the Residual General Fund Balance Financing the remainder through the issuance of long-term debt This recommended action is to authorize the issuance and sale of the 2023 Bonds for the Center in an amount not-to-exceed $16,000,000 to fund critical additional pool space to meet the increasing and unmet community needs for competitive and recreational aquatic programs.
The additional $1,000,000 of the 2023 Bond proceeds are to pay 2023 Bonds issuance costs (e.g., bond counsel fees, trustee fees, printing expenses, etc.), as well as approval of contingency for dramatic changes in market conditions prior to issuance to ensure project funds of $15 million.
The remaining funding for the Center will be provided from the GF Balance.
The cost of issuance of the 2023 Bonds is expected to remain within the total aquatic center funding of $30 million based on conceptual design. 2 Plan of Finance
2023 Lease Revenue Bonds
Leased Asset
Alameda Police Administration Building located at 1555 Oak Street Issuer
The City of Alameda Financing Authority (“Authority”)
A joint-powers authority between the City and the California Municipal Finance Authority Purpose
Finance a portion of the acquisition, construction, and equipping of a new City Aquatic Center and pay the costs of issuing the Bonds Security
Semi-annual Lease Payments made by the City’s General Fund for use and occupancy of the Leased Asset The Authority has assigned its right to receive Lease Payments from the City to the trustee to pay debt service City agrees to annually budget and appropriate Lease Payments Standard general and hazard insurance plus 2 years of rental interruption City has right to withhold lease payments if use of the Leased Asset is reduced No requirement by investors to set aside monies in a Debt Service Reserve Fund due to City’s high bond rating 4 Aquatic Center
Capital Project – Series 2023 Bonds
Funding of the project at this time provides financial certainty to lock in interest rates for the Bonds and ensure funds are available when needed 5 Aquatic Center (located at western side of Sweeney Park Projected Cost = $30 million
($15 million from General Fund Reserves and $15 million from Bond Proceeds) Competitive and recreational pools, building with locker rooms, office space and community room, and associated lighted parking lot plus other improvements City hired Griffin Structures, Inc., as project manager in July 2023 Design starting late 2023/early 2024 and construction anticipated to start by summer 2025 Project completion estimated for fall 2026
Preliminary Financing Details*
Estimated principal amount of $15.065* million
Project fund deposit of $15 million plus costs of issuance not to exceed $1 million Issuance costs anticipated lower (table below) so this includes contingency for issuance Debt Structure
Level annual debt service of approximately $907,000* with final maturity in 2053 Payment dates of May and November, principal paid in May Current market true interest cost of 4.37%
Lease payments securing the proposed 2023 Bonds repayment paid from General Fund Not-to-Exceed Parameters in Resolution
Not-to-exceed parameters of principal, true interest cost, and Underwriter’s fee allow for contingency should market conditions shift prior to securing the bond Bonds will be issued in the amount to generate $15 million in project funds and to cover costs of issuance only * Preliminary, subject to change
6 Preliminary Sources & Uses*
Sources
Principal Amount
$15,065,000
Premium
323,260
Total
$15,388,260
Uses
Acquisition and Construction Fund
$15,000,000
Costs of Issuance
388,260
Total
$15,388,260
Financing Schedule of Next Steps
Sept 5 Rating Meeting
Sept 18 Rating received
Sept 19 Council consideration of financing
If City Council approves financing on September 19:
Sept 20* Preliminary Official Statement posted
Sept 28* Pricing
Oct 17* Closing (Bond Proceeds Received)
7 * Preliminary, dates are subject to change