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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2012
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<br />69
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<br />NOTE 7 - LONG-TERM DEBT, Continued
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<br />A. Governmental Activities Long-Term Debt, Continued
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<br />2003 Certificates of Participation
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<br />In 2003, the City issued $12,550,000 principal amount of 2003 Certificates of Participation (2003 COPs). The purpose
<br />of the 2003 COPs was to refund the City’s 1993 COPs and raise capital funds for a new aquatics center. The 2003 COPs
<br />bear interest rates ranging from 2.5% to 5.00% and are payable semiannually on each June 1 and December 1. Principal
<br />payments are payable annually on June 1. The COPs evidence fractional interests of the owners in lease payments to be
<br />made by the City for use and occupancy of the San Leandro City Hall.
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<br />The 2003 COPs resulted in a present value of savings of $1,166,751 or 11.75% of the refunded bonds. Through a five-
<br />year extension of debt service on the outstanding COPs, the city was able to generate $2,750,000 of capital improvement
<br />funds and a slight reduction in the annual debt service payment.
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<br />At June 30, 2012, future debt service requirements for the 2003 Certificates of Participation are as follows:
<br />For the Year
<br />Ending
<br />June 30,Principal Interest Total
<br />2013 400,000$ 474,500$ 874,500$
<br />2014 420,000 454,500 874,500
<br />2015 440,000 433,500 873,500
<br />2016 465,000 411,500 876,500
<br />2017 490,000 388,250 878,250
<br />2018-2022 2,830,000 1,549,500 4,379,500
<br />2023-2027 3,610,000 767,750 4,377,750
<br />2028 835,000 41,750 876,750
<br />Total debt service 9,490,000$ 4,521,250$ 14,011,250$
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<br /> 2004 Tax Allocation Bonds
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<br />In 2004, the City issued $5,500,000 principal amount of 2004 Tax Allocation Bonds (2004 TABs). The purpose of the
<br />2004 TABs was to assist the Redevelopment Agency of the City finance redevelopment activities within the West San
<br />Leandro/MacArthur Boulevard Redevelopment Project Area of the City. The 2004 TABs bear interest rates ranging
<br />from 5.00% to 5.75% and are payable semiannually on each March 1 and September 1. Principal payments are payable
<br />annually on September 1. The debt is secured and payable from the tax increment revenues from the West San
<br />Leandro/MacArthur Boulevard Redevelopment Project area within the City.
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<br />Prior to February 1, 2012, tax increment revenues were used to fund debt service on the Bonds. As a result of the
<br />dissolution of the Redevelopment Agency pursuant to state law (See note 18), a Successor Agency assumed the debt
<br />and receives tax revenues used to pay debt service and fund other activities of the former Redevelopment Agency.
<br />Future debt service repayments on these bonds will be made by the Successor Agency from the Redevelopment
<br />Property Tax Trust Fund allocation (see Note 18).
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