TO: Financing Corporation Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY2019-20 Internal Third Quarter Financial Statements
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Financial Statements for the AC Transit Financing Corporation for the Third Quarter Ended March 31, 2020.
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BUDGETARY/FISCAL IMPACT:
Consistent with the amortization tables, accrued interest on the retired Certificates of Participation (COPS) 2009 and new COPS 2019 Refunded fiscal year to date as of March 31, 2020 was $334,000, $167,000 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 (COPS) 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 $11,000,000 in principal and $287,000 in interest was made on January 10, 2020.
* Savings from the refunding is expected to save the District over $1,970,000, in present value, over the remaining term of the certificates.
ADVANTAGES/DISADVANTAGES:
This report does not recommend a course of action with notable advantages or disadvantages.
ALTERNATIVES ANALYSIS:
An alternative analysis does not apply to this report.
PRIOR RELEVANT BOARD ACTION/POLICIES:
None
ATTACHMENTS:
1. AC Transit District Financing Corporation Financial Statements for the third quarter ended March 31, 2020, Staff Report 2...
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