Page 306 - FY 2021-22 Blue Book Volume 2

Capital Finance Administration Fund

4. MICLA Lease Revenue Bonds, Series 2010-C (Recovery Zone Economic Development Bonds)

The proceeds of this issuance were used to refinance the MICLA Commercial Paper notes borrowed for the
capital improvements to various City facilities, including El Pueblo, Figueroa Plaza buildings, and Asphalt
Plant No. 1. MICLA has designated these taxable bonds as Recovery Zone Economic Development Bonds,
which allow the City to receive from the federal government direct credit subsidy payments equal to 45
percent of the interest payable to bondholders. Pursuant to the requirements of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended, refund payments to certain state and local government
filers claiming refundable credits under section 6431 of the Internal Revenue Code to certain qualified bonds
are subject to sequestration. Currently, the federal fiscal year 2021 sequestration rate is 5.7 percent. This
means the direct credit subsidy payments for these bonds will be reduced by that amount.

Lessor: Municipal Improvement Corporation of Los Angeles
Amount of Principal: $ 18,170,000
Principal Outstanding, July 1, 2021: 15,570,000
Final Payment: 2040-41

2021-22 MICLA 2010-C (Real Property) Lease Payment: $ 1,537,972

5. MICLA Lease Obligations, Series 2011-A (Qualified Energy Conservation Bonds)

The proceeds of this issuance were used for the energy retrofit of 52 buildings located in the City. In the first
three years, lease payments on these bonds were paid with federal Energy Efficiency and Conservation Block
Grant monies. In subsequent years, lease payments are offset from savings generated by the energy retrofit
of the buildings. A portion of the bonds in the amount of $1,243,797 were redeemed on November 3, 2014.
This redemption was in the amount of the bond proceeds that remained unexpended as of the three-year
anniversary of the issue date of the bonds. MICLA has designated these taxable bonds as Qualified Energy
Conservation Bonds, which allow the City to receive from the federal government direct credit subsidy
payments equal to 70 percent of the interest payable to bondholders. Pursuant to the requirements of the
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, refund payments to certain state
and local government filers claiming refundable credits under section 6431 of the Internal Revenue Code to
certain qualified bonds are subject to sequestration. Currently, the federal fiscal year 2021 sequestration rate
is 5.7 percent. This means the direct credit subsidy payments for these bonds will be reduced by that amount.
This issuance was completed through a direct loan with a bank. Additional funds are budgeted to prepay the
outstanding bonds in their entirety in 2021-22.

Lessor: Municipal Improvement Corporation of Los Angeles
Amount of Principal: $ 11,920,000
Principal Outstanding, July 1, 2021: 4,201,203
Final Payment: 2021-22

2021-22 MICLA 2011-A (Qualified Energy Conservation Bonds) Lease Payment: $ 4,830,179

6. MICLA Lease Revenue Bonds, Series 2012-A (Capital Equipment)

The proceeds of this issuance were used to refinance the MICLA Commercial Paper notes borrowed to
acquire various capital equipment items. These bonds were fully refunded in August 2020, thus no further
lease payments will be made under this issuance.

Lessor: Municipal Improvement Corporation of Los Angeles
Amount of Principal: $ 92,635,000
Principal Outstanding, July 1, 2021: --
Final Payment: --

2021-22 MICLA 2012-A (Capital Equipment) Lease Payment: $ --

772