TO: Financing Corporation Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Financial Statements for the First Quarter Ending September 30, 2024
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Financial Statements for the AC Transit Financing Corporation for the First Quarter Ended September 30, 2024.
Staff Contact:
Chris Andrichak, Corporation Chief Financial Officer
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BUDGETARY/FISCAL IMPACT:
Overall, accrued interest on the Certificates of Participation (COPs) through the First Quarter was $74,738 which was slightly less than the prior fiscal year and consistent with the amortization schedules. The accrued interest does not equal the interest payment due to the timing of the semi-annual cash payment of the interest expense.
In addition, the second principal payment was made in the amount of $820,000, leaving a remaining balance payable of $9,600,000 of which $840,000 will be due August 1, 2025.
BACKGROUND/RATIONALE:
The Financing Corporation was created to provide financing to 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 December 2019, the District issued Refunding Certificates of Participation Series 2019 (2019 COPS). The proceeds from the issuance of $11.66 million were used to refund and retire the 2009A COPS. In connection with this transaction, the District incurred a non-cash deferred loss on refunding that is reported as a deferred outflow of resources in the amount of $583,000 which will be recognized as a component of interest expense over the remaining life of the debt. Principal payments on these 2019 Refunding COPS began August 2022, and the fiscal year to date interest accruals were $74,738.
ADVANTAGES/DISADVANTAGES:
There are no notable advant...
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