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City staff outline two-stage plan to defease 2015 successor-agency bonds, citing long-term savings
Summary
Finance staff and consultant proposed using residual redevelopment trust revenues to defease about $9.6 million of 2015 tax-allocation refunding bonds in two phases (June 2026 and January 2027), producing a projected collective savings of about $1.2 million and an estimated $7.6 million net benefit to the city through 2033 after a temporary revenue reduction.
The East Palo Alto finance director and the city's financial adviser told the city council that the successor agency's remaining 2015 tax-allocation refunding bonds could be retired through a cash defeasance carried out in two phases. Finance Director Tom Ooku said the bonds have roughly $9.6 million outstanding and that early defeasance would return redevelopment residual revenues to the general property-tax system sooner.
Jaime Trejo of PEFM, the city's financial adviser, said the plan would use about $4.9 million of residual RPTTF revenue…
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