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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2014
<br />NOTE 7 - LONG-TERM DEBT (Continued)
<br />2012 Taxable Pension Obligation Bonds
<br />In 2012, the City issued $18,305,000 principal amount of 2012 Taxable Pension Obligation Bonds (2012
<br />POB). The purpose of the 2012 POB is to save the City money, the interest rate, including the cost of
<br />issuance, must be significantly less than the interest rate the CalPERS charges to amortize the public
<br />safety side fund which is distinct from the City's other CalPERS plans. Side funds are retired over a
<br />fixed term with a fixed amortization schedule based on CalPERS actuarial earnings assumption rate
<br />(7.75%). Principal is due annually on December 1 and the interest is due semi-annually on June 1 and
<br />December 1 through June 2024. Debt service is payable from available City resources.
<br />At June 30, 2014, future debt service requirements for the City's portion of the 2012 Taxable Pension
<br />Obligations Bonds follows:
<br />For The Year
<br />Ending June 30
<br />2015
<br />2016
<br />2017
<br />2018
<br />2019
<br />2020-2024
<br />Principal
<br />$ 1,120,000
<br />1,210,000
<br />1,305,000
<br />1,415,000
<br />1,540,000
<br />10,085,000
<br />$ 16,675,000
<br />2010 Master Equipment Lease/Purchase Agreement
<br />Interest Total
<br />$ 729,404
<br />$ 1,849,404
<br />708,124
<br />1,918,124
<br />678,236
<br />1,983,236
<br />636,868
<br />2,051,868
<br />585,644
<br />2,125,644
<br />1,690,639
<br />11,775,639
<br />$ 5,028,915
<br />$ 21,703,915
<br />On November 23, 2009, the City entered into a Lease/Purchase Agreement with Oshkosh Capital to
<br />Lease/Purchase Equipment in the amount of $461,717. The Equipment was for the Fire Department's
<br />2010 Triple Combination Pumper Truck. The interest rate is 3.99% payable over five years.
<br />At June 30, 2014, future debt service requirements for the 2010 Master Equipment Lease Purchase
<br />Agreement follows:
<br />For The Year
<br />Ending June 30 Principal Interest Total
<br />2015 $ 99,707 $ 3,978 $ 103,685
<br />63
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