TO: Financing Corporation Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Financial Statements for the Third Quarter Ending March 31, 2023
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Financial Statements for the AC Transit Financing Corporation for the Third Quarter Ended March 31, 2023.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
BUDGETARY/FISCAL IMPACT:
Overall, accrued interest on the Certificates of Participation (COPs) through the Third Quarter was $248,953 which was slightly less than the prior fiscal year and consistent with the amortization schedules. The accrued interest does not equal the cash interest paid due to the timing of the semi-annual cash interest payment.
In addition, the first principal payment in the amount of $435,000 was paid during the First Quarter, leaving a remaining balance payable of $11,220,000. The next annual payment in the amount of $800,000 will be due August 1, 2023.
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 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 retire the 2009A COPS, which was originally issued to fund the purchase of the land for the District GO.
In connection with the COPS 2019 Refunding, the District incurred a non-cash deferred loss of $583,000, which will be recognized as a component of interest expense over the 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 District Financing Corporation Financial Statements for the Third Quarter ended March 31, 2023.
Prepared by:
Kenneth Myers, Controller
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer