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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 />72
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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 />2012 Taxable Pension Obligation Bonds
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<br />In 2012, the City issued $18,305,000 principal amount of 2012 Taxable Pension Obligation Bonds (2012 POB). The
<br />purpose of the 2012 POB is to save the City money, the interest rate, including the cost of issuance, must be
<br />significantly less than the interest rate the CalPERS charges to amortize the public safety side fund which is distinct
<br />from the City’s other CalPERS plans. Side funds are retired over a fixed term with a fixed amortization schedule
<br />based on CalPERS actuarial earnings assumption rate (7.75%). Principal is due annually on December 1 and the interest
<br />is due semi-annually on June 1 and December 1 through June 2024. Debt service is payable from available City
<br />resources. For fiscal year 2012, principal and interest paid were $1,615,144.
<br /> Ending
<br />June 30,Principal Interest Total
<br />2013 720,000$ 895,144$ 1,615,144$
<br />2014 910,000 742,962 1,652,962
<br />2015 1,120,000 729,403 1,849,403
<br />2016 1,210,000 708,123 1,918,123
<br />2017 1,305,000 678,236 1,983,236
<br />2018-2022 8,470,000 2,533,309 11,003,309
<br />2023-2024 4,570,000 379,845 4,949,845
<br />18,305,000$ 6,667,022$ 24,972,022$
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<br />2010 Master Equipment Lease/Purchase Agreement
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<br />In 2010, the City entered into a Lease/Purchase Agreement with Oshkosh Capital to Lease/Purchase Equipment in the
<br />amount of $461,717. The Equipment was for the Fire Departments 2010 Triple Combination Pumper Truck. The
<br />interest rates range from 3.80% payable in five (5) years.
<br />
<br />At June 30, 2012, future debt service requirements for the 2010 Master Equipment Lease Purchase Agreement were as
<br />follows:
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<br />For the Year
<br />Ending
<br />June 30,Principal Interest Total
<br />2013 92,202$ 11,483$ 103,685$
<br />2014 95,881 7,804 103,685
<br />2015 99,707 3,978 103,685
<br />Total debt service 287,790$ 23,265$ 311,055$
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