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<br /> . . . . . - <br /> Manager Somers said it takes time to refund the old bonds and reissue new bonds. She <br /> said, "We will borrow only the amount necessary to refund the bonds, and we will not use <br /> bond proceeds for any other purpose. The terms of the bonds will not be extended. The <br />- fees of the underwriters, bond counsel and financial advisor are paid only when and if the <br /> bonds are refunded. Cost to the City is minimal if the target is never met and the bonds <br /> are never refinanced. We have been informed by Moody's Investor Services that the <br /> bonds will be rated AI." Manager Somers explained the bond rating system, stating that <br /> AAA is never given to municipalities; AA is given to municipalities only for General <br /> Obligation bonds; and A1 is essentially the best rating a municipality can receive for <br /> Revenue bonds. <br /> Manager Somers introduced Virginia Horler from Dain Rauscher, the City's underwriters; <br /> David Casnocha from Stradling, Yocca, Carlson & Rauth, the bond counsel; and William <br /> Euphrat, the City's financial advisor. <br /> In response to Commissioner Leipzig's comments, Manager Somers confirmed that this <br /> action was similar to a homeowner refinancing his/her home, no money was being cashed <br /> out, and the term of the bonds would not be extended. She said the amount of the bonds <br /> would "increase only by the amount of the cost of issuance which is overcome by the debt <br /> service going down. The net effect is a savings to the City." <br /> Chairperson Howard asked if anyone in the audience who would like to speak to this <br /> issue. No one came forward. <br />- MIS: HARTNETTIIRA. TITLE READ. <br /> RESOLUTION NO. PFA 98-01 OF THE COMMISSION OF THE CITY OF REDWOOD CITY <br /> PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF 1998 LEASE <br /> REVENUE REFUNDING BONDS (CAPITAL FACILITIES PROJECT), AUTHORIZING AND <br /> DIRECTING EXECUTION OF LEGAL DOCUMENTS, APPROVING AN OFFICIAL <br /> STATEMENT AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO <br /> ADOPTED BY UNANIMOUS ROLL CALL VOTE. <br /> 3. ADJOURNMENT <br /> MIS: HARTNETTIRUSKIN TO ADJOURN THE MEETING <br /> CARRIED BY UNANIMOUS VOICE VOTE AND MEETING ADJOURNED AT 7:43 P.M. <br /> ~c~ <br /> Arlyn C. Jorgenson <br /> City Clerk <br />- <br /> REGULAR PUBLIC FINANCING AUTHORITY MEETING MINUTE BOOK NO. 56 FEBRUARY 9,1998 <br /> MINUTES Page No. 277 PAGE 2 <br />