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 be fully 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 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Total Principal 480,000 440,000 405,000 375,000 345,000 315,000 290,000 270,000 2,920,000 Interest 220,832 182,928 148,114 115,978 86,314 59,122 34,196 11,124 858,608 Total 700,832 622,928 553,114 490,978 431,314 374,122 324,196 281,124 3,778,608

It should be noted that the original amount of this outside debt was $18.7 million, however, a significant portion 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 Pavilion Lease 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% to the rate earned by the State pool, LAIF, estimated at 0.25-3.0%) and a reduction in debt costs over the life 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 Loan: Low/Mod Housing Set-Aside Fund (RDA) Loan: Workers Compensation Fund Total

3,000,000 3,000,000 2,000,000 $ 8,000,000

As per Councils authorization on 9/21/2009, the General Fund has been paying interest on the internal debt 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 Councils authorization on 9/21/2009, structured repayment of the principal internal loan balances must start no later than FY 2014-15. The 10-Year Plan for the Pavilion Fund currently schedules

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