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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2013
<br />NOTE 7 - LONG-TERM DEBT (Continued)
<br />2007 Certificates of Participation
<br />In 2007, the City issued $23,435,000 principal amount of 2007 Certificates of Participation (2007 COPS).
<br />The purpose of the 2007 COPS was to provide funds to refund the outstanding 1999 Certificates of
<br />Participation (Library and Fire Stations Project) of the City of San Leandro and the San Leandro Public
<br />Financing Authority. Interest rates vary from 4.00% to a maximum of 4.375% and are payable
<br />semiannually on each May 1 and November 1. Principal payments are payable annually on November 1.
<br />The COPS evidence fractional interest of the owners in lease payments to be made by the City for use and
<br />occupancy of San Leandro Libraries and San Leandro Fire Stations.
<br />At June 30, 2013, future debt service requirements for the 2007 COPs follows:
<br />Ending June 30
<br />Principal
<br />Interest
<br />Total
<br />2014
<br />$805,000
<br />$792,219
<br />$1,597,219
<br />2015
<br />840,000
<br />759,319
<br />1,599,319
<br />2016
<br />870,000
<br />725,119
<br />1,595,119
<br />2017
<br />910,000
<br />689,519
<br />1,599,519
<br />2018
<br />945,000
<br />652,418
<br />1,597,418
<br />2019-2023
<br />5,320,000
<br />2,648,970
<br />7,968,970
<br />2024-2028
<br />6,535,000
<br />1,399,627
<br />7,934,627
<br />2029-2030
<br />3,025,000
<br />133,766
<br />3,158,766
<br />$19,250,000
<br />$7,800,957
<br />$27,050,957
<br />The proceeds from the 1999 COP refunding issue were placed in irrevocable escrow account overseen by
<br />independent bank fiscal agents. The proceeds are generally invested in U.S. Treasury Securities, which
<br />together with earned interest, will provide amounts sufficient for future payment of interest, principal, and
<br />redemption premium on the defeased bond in the amount of $27,257,815. The escrow account is not
<br />included as assets of the City. The defeased bonds are excluded from the City's long-term obligations
<br />because the arrangement satisfies requirements of defeasance.
<br />2013 Refunding Lease Revenue Bonds
<br />In April 2013, the City issued $8,883,000 principal amount of 2013 Refunding Lease Revenue Bonds (2013
<br />RLRB). The purpose of the 2013 RLRBs was to refund the City's 2003 COPS and 2001 COPs. The 2013
<br />RLRBs bear interest rates ranging from 2.0% to 5.00% and are payable semiannually on each June 1 and
<br />December 1. Principal payments are payable annually on December 1.
<br />The refunding of the 2003 COPS resulted in a present value of savings of $928,703 of the refunded bonds.
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