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been paid in full, including but not limited to the addition or substitution of one or more <br />new members. Accordingly, City staff recommends that the City and the Authority <br />consider adding a new member to the Public Financing Authority. <br /> <br />Next Steps <br />A sale of bonds is scheduled for February 13, subject to the continued finding of <br />sufficient NPV savings, and the bond closing is scheduled for March 1. No further action <br />on the part of the City Council is required. <br /> <br />ALTERNATIVES <br />The Council may reject staff’s recommendation to sell refunding bonds to refinance <br />outstanding bonds, in which case no debt service savings will be realized and the debt <br />service reserve funds will not be released. <br /> <br />FISCAL IMPACT <br />This bond issue will reduce debt service on the 2007 Bonds by approximately $66,600 <br />annually. Revised debt service expense will be reflected in the City’s FY 2017-18 <br />budget. <br /> <br />Financial markets have been volatile since the November 2016 Presidential election, <br />and while the stock market has soared, bond prices, which generally move inversely to <br />stocks, have declined, which has caused anticipated NPV savings to decline by <br />approximately 7 percentage points since the election. Savings could continue to decline. <br />If the bond sale is delayed, certain issuance expenses, such as the bond ratings, are <br />not contingent on the sale of the 2017 Bonds and must nevertheless be paid. Total non- <br />contingent expenses are estimated at approximately $50,000. These expenses may be <br />recovered if and when bonds are sold. <br /> <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in CEQA Guidelines, section <br />15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br /> <br /> <br /> <br /> <br />STARLA JEROME-ROBINSON <br />ACTING ACM OF ADMINISTRATIVE SERVICES <br /> <br /> <br />8.C. - Page 5