TO: Financing Corporation Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2019-20 Internal Second Quarter Financial Statements
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Financial Statements for the AC Transit Financing Corporation for the Second Quarter Ended December 31, 2019.
Body
BUDGETARY/FISCAL IMPACT:
Consistent with the amortization tables, accrued interest on the sole remaining Certificates of Participation (COP) fiscal year to date as of December 31, 2019 was $287,000, $52,000 lower than that of the prior fiscal year due to the overall maturity of the debt portfolio and the refinancing of the COPS 2009 with COPS 2019 new financing.
BACKGROUND/RATIONALE:
The Financing Corporation was created to provide financing assistance to the Alameda-Contra Costa Transit District. The Board receives quarterly and annual reports on the Financing Corporation's financial results. The financial statements reflect the remaining Certificates of Participation (COP) financing as follows:
* Series 2009 secured financing for the purchase of the 66th Avenue property and has payments scheduled to August 2034. Fiscal year-to-date principal payments and interest were $465,000 and $287,000 respectively.
* The District has refunded this issuance to benefit from lower interest rates. The final payment of $11,000,0000 in principal and $287,000 in interest was made on January 10, 2020.
* Savings from the refunding were approximately $2 million, in present value, over the remaining term of the certificates.
ADVANTAGES/DISADVANTAGES:
This report is provided for informational purposes.
ALTERNATIVES ANALYSIS:
An alternative analysis does not apply to this report.
ATTACHMENTS:
1. AC Transit District Financing Corporation Financial Statements for the first quarter ended December 31, 2019 which do not reflect or include the results of the 2019 COPS refunding.
Prepared by:
Kenneth Myers, Finance Administrator
Approved/Rev...
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