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City of San Leandro <br />Notes to Basic Financial Statements <br />For the year ended June 30, 2012 <br /> <br /> <br />75 <br /> <br />NOTE 7 - LONG-TERM DEBT, Continued <br /> <br />A. Governmental Activities Long-Term Debt, Continued <br /> <br />2009 San Leandro Unified School District <br /> <br />In February 2009, the City entered into a joint use agreement with the San Leandro Unified School District which <br />provides for the City use of the 9th grade gymnasium during non-school hours and the San Leandro Redevelopment <br />Agency (Agency) agreed to provide for financial contribution to the project from the Agency in the amount of <br />$2,170,800 with no interest payable by June 30, 2017. <br /> <br />Prior to February 1, 2012, tax increment revenues were used to fund debt service on the Bonds. As a result of the <br />dissolution of the Redevelopment Agency pursuant to state law (See note 18), a Successor Agency assumed the debt <br />and receives tax revenues used to pay debt service and fund other activities of the former Redevelopment Agency. <br />Future debt service repayments on these bonds will be made by the Successor Agency from the Redevelopment <br />Property Tax Trust Fund allocation (see Note 18). <br /> <br />B. Long-Term Debt of Business-Type and Proprietary Funds <br /> <br />Summary of changes in long-term debt of business-type and proprietary funds for the year ended June 30, 2012: <br /> <br />Balance Balance Due within Due in more <br />Debt Issue July 1, 2011 Additions Retirements June 30, 2012 one year than one year <br />Marina Cal Boating Notes <br />Payable 2,462,962$ -$ (182,086)$ 2,280,876$ 190,280$ 2,090,596$ <br />State Water Resource <br />Board - 6,698,278 - 6,698,278 - 6,698,278$ <br />2,462,962$ 6,698,278$ (182,086)$ 8,979,154$ 190,280$ 8,788,874$ <br /> <br />State Water Resource Control Board <br /> <br />On August 4, 2011, the City entered into a Finance Agreement with the State Water Resources Control Board in the <br />total principal amount of $43,000,000, for the purpose of financing the Wastewater System Expansion and <br />Improvement Project. The loan bears an interest rate of 2.6%. Principal and interest payments are payable annually of <br />each July 1. The debts are secured from the WPCP Enterprise Fund operating revenues. <br /> <br />At June 30, 2012, the City has drawn down $6.7 million from the State Water Resource Control Board and the <br />remaining balance of $36.3 million is expected to be drawn down in fiscal year 2012 -13. There was no debt service <br />payment in fiscal year 2011-12, with the first debt service payment of $4.2 million due in fiscal year ending 2015-16. <br />Future debt service payment is expected to average $3 million per year through fiscal year 2034 -35 for a total $58.8 <br />million.