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17 Debt Administration. At the end of the current fiscal year, the City’s total long-term debt outstanding is $59.9 million, a decrease of $30.1 million from the prior fiscal year primarily due to the transfer of debts from the private purpose trust fund due to the dissolution of the Redevelopment Agency. The City’s new general obligation debt in the governmental activities is for the refunding of the CalPERS Public Safety side fund. On August 2011, the city entered into an agreement with the State Water Resources Control Board (SWRCB) for the financing of the improvements to the Wastewater system improvement project. As of June 30, 2012 the city obtained $6.7 million from the SWRCB which repayment is scheduled to begin on July 31, 2015. Additional information on the City’s long- term debt obligations can be found in Note 7 of the notes to the financial statements. The following is a summary of the City’s outstanding debt: City of San Leandro Outstanding Debt Year Ended June 30,2012 (in thousands) 2012 2011 2012 2011 2012 2011 Revenue bonds and notes 18,305$ 44,920$ -$ -$ 18,305$ 44,920$ (backed by specific tax and fee revenues) Certificates of participation 29,515 34,420 29,515 34,420 Other loans 3,153 8,268 8,979 2,463 12,132 10,731 Total 50,973$ 87,608$ 8,979$ 2,463$ 59,952$ 90,071$ Governmental Activities Business-Type Activities Total ECONOMIC FACTORS AND NEXT YEAR’S BUDGET Like most cities in California, the City of San Leandro continues to face an uncertain economy. The financial turbulence in the global markets, the nationwide mortgage crisis, and related regional housing downturn, as well as the state’s on-going budget crisis have a direct impact on our local economy. The recession that ended three years ago has been followed by the weakest economic recovery that continues today. City finances and the community services that depend on those resources have been strained as San Leandro deals with one of the nation’s worst recessions in the last three decades. The most significant impact to the City is the state’s dissolution of the Redevelopment Agency, wherein City‘s net assets decreased by $3.5 million While there are some indications that the national economy is showing mild signs of recovery, the local economy, especially as it affects the municipal sector, is lagging. Unemployment remains high and many economists predict that it will take years before the region see employment at pre-recession levels. Usually workers’ pay rises as the economy picks up momentum but that is not the case. As a result, pay raises haven’t kept up with even the modest levels of inflation and consumer confidence grew concerned about the job market and the overall economy. The housing market is picking up as existing home sales