DATE: May 3, 2016
TO: Mayor and City Council;
Board of Directors of the Hayward Public Financing Authority
FROM: Director of Finance
SUBJECT
Title
Authorization for the City Council and the Hayward Public Financing Authority to Issue Certificates of Participation in an Amount Not to Exceed $23 Million to Refinance the Outstanding 2007 Refunding Certificates of Participation
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RECOMMENDATION
Recommendation
That the City Council adopts the two attached resolutions authorizing the Hayward City Council and the Board of Directors of the Hayward Public Financing Authority to issue and sell 2016 Refunding Certificates of Participation ("2016 Certificates") in the principal amount not to exceed $23 million for the purpose of refunding the outstanding 2007 Refunding Certificates of Participation (Civic Center and Capital Projects).
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BACKGROUND
In September 1996, the Hayward Public Financing Authority issued $32,595,000 Certificates of Participation to fund the construction of the Civic Center, parking facilities, and other site improvements. In 1997, additional certificates of participation were issued to complete construction on fire stations, the corporation yard, the police building, and road improvements. On August 15, 2007, the City of Hayward ("City") issued $31,820,000 of 2007 Certificates of Participation ("2007 Certificates") to refund both the 1996 and 1997 certificates of participation to capture lower interest rates and reduce interest costs.
In coordination with City staff, NHA Advisors, LLC serving as the City's municipal advisor, has determined that the 2007 Refunding Certificates of Participation can now be refinanced with significant savings to the City and its General Fund. There will be no extension of the final maturity and lower interest rates will result in cash flow savings in each of the remaining years of the financing (FY 2026).
DISCUSSION
Adoption of the ...
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