TO: Financing Corporation Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Financial Statements for the Third Quarter Ending March 31, 2026
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the Financial Statements for the AC Transit Financing Corporation for the Third Quarter Ended March 31, 2026.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
BUDGETARY/FISCAL IMPACT:
Through the third quarter, accrued interest expense on the Certificates of Participation (COPs) totaled $204,452. This figure is slightly lower than the prior fiscal year and remains fully consistent with the established amortization schedules. Please note that the variance between accrued interest expense and actual interest payments is due to the timing of the semi-annual interest payment. The fourth principal payment of $840,000 was made in August 2025, reducing the remaining payable balance to $8,760,000. The next principal obligation payment of $865,000 is scheduled for August 1, 2026.
BACKGROUND/RATIONALE:
The Financing Corporation was created to provide financing for the Alameda-Contra Costa Transit District. The Board receives quarterly and annual reports on the Financing Corporation financial results. The financial statements reflect the current Certificate of Participation financing as follows: In 2009, the District issued Certificates of Participation Series 2009A (2009A COPS) to finance the acquisition of the 66th Avenue property. In December 2019, the District subsequently issued Refunding Certificates of Participation Series 2019 (2019 COPS). The proceeds from this $11.66 million issuance were utilized to refund and retire the 2009A COPS. This transaction resulted in a non-cash deferred loss on refunding of $583,000, which is reported as a deferred outflow of resources and will be recognized as a component of interest expense over the remaining life of the debt.
ADVANTAGES/DISADVANTAGES:
There are no notable advantages or disadvantages to receiving this report.
ALTERNATIVES ANALYSIS:
There are no significant alternatives to receiving the report and information presented.
PRIOR RELEVANT BOARD ACTION/POLICIES:
None
ATTACHMENTS:
1. AC Transit Financing Corporation Financial Statements for the Third Quarter Ended March 31, 2026.
Prepared by:
Kenneth Myers, Controller
In Collaboration with:
Jennifer Sherman, Finance Administrator
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer