7/27/2019 Concord Pavilion Debt Summary

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City of Concord Information (compiled by Karan Reid, Finance Director 10/21/13)

Pavilion Debt

The Concord Sleep Train Pavilion has two types of debt attached to it, outside debt and internal debt.

Below is a summary of each.

Outside Debt: The total principal outstanding as of June 30, 2013 on the outside debt is $2,920,000.Total outstanding debt, including principal and interest, is $3,778,608. These bonds are scheduled to befully retired on August 1, 2020. See the following table detailing upcoming debt service requirements.

Pavilion Outside Debt Repayment Schedule (as of 6/30/13)

Fiscal Year Principal Interest Total

2013-14 480,000 220,832 700,832

2014-15 440,000 182,928 622,928

2015-16 405,000 148,114 553,114

2016-17 375,000 115,978 490,9782017-18 345,000 86,314 431,314

2018-19 315,000 59,122 374,122

2019-20 290,000 34,196 324,196

2020-21 270,000 11,124 281,124

Total 2,920,000 858,608 3,778,608

It should be noted that the original amount of this outside debt was $18.7 million, however, a significantportion was converted to internal debt using other City funds (as noted below).

Internal Debt: On 9/21/2009, the City Council authorized internal loans to purchase Concord PavilionLease Revenue Bonds from the bondholder. The staff report for this action noted that the primary benefit

of this conversation from external debt to internal debt was a lowering of the interest rate (from 8.24% tothe rate earned by the State pool, LAIF, estimated at 0.25-3.0%) and a reduction in debt costs over thelife of the debt (estimated at more than $1 million in savings).

The total executed internal debt was $9,000,000. Of this amount, the Pavilion Fund repaid $1,000,000 of the principal that was owed to the Workers Compensation Fund on 6/30/2010. This left a total of $8,000,000 of principal internal debt. Below is a breakdown of the remaining internal loan balances.

Outstanding Principal on Internal Loans (as of 6/30/13) 

Loan: Sewer Fund 3,000,000

Loan: Low/Mod Housing Set-Aside Fund (RDA) 3,000,000

Loan: Workers Compensation Fund 2,000,000

Total $ 8,000,000

 As per Council’s authorization on 9/21/2009, the General Fund has been paying interest on the internaldebt to the Sewer and Low/Mod Housing Fund since the start of the loan. In this fiscal year (2013-14),interest payments to both funds are estimated to be $59,000 in total.

 Also, as per Council’s authorization on 9/21/2009, structured repayment of the principal internal loanbalances must start no later than FY 2014-15. The 10-Year Plan for the Pavilion Fund currently schedules

7/27/2019 Concord Pavilion Debt Summary

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repayment to begin in FY 2014-15 at $422,150 annually; with full payoff of the internal loans scheduledfor FY 2039-40.