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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 />B. Long -Term Debt of Business -Type and Proprietary Funds <br />Summary of changes in long-term debt of business -type and proprietary funds for the year ended June 30, <br />2014: <br />Balance Balance Due within Due in more than <br />June 30, 2013 Additions Retirements June 30, 2014 one year one year <br />Marina Note $ 2,090,596 $ $ 198,841 $ 1,891,755 $ 207,791 $ 1,683,964 <br />State Water Resources <br />Control Board 21,336,055 14,686,845 36,022,900 36,022,900 <br />Total $ 23,426,651 $ 14,686,845 $ 198,841 $ 37,914,655 $ 207,791 $ 37,706,864 <br />State Water Resources Control Board <br />On August 4, 2011, the City entered into a Finance Agreement with the State Water Resources Control <br />Board in the total principal amount of $43,000,000, for the purpose of financing the Wastewater System <br />Expansion and Improvement Project. The loan bears an interest rate of 2.6%. Principal and interest <br />payments are payable annually on July 1. The debt is secured by the WPCP Enterprise Fund operating <br />revenues. At June 30, 2014, the City has drawn down $36.02 million from the State Water Resource <br />Control Board and the remaining balance of $6.98 million is expected to be drawn down in fiscal year <br />2014-15. <br />There was no debt service payment in fiscal year 2013-14, with the first debt service payment of $4.2 <br />million due in fiscal year ending 2015-16. Future debt service is expected to average $3 million per year <br />through fiscal year 2034-35 for a total $58.8 million. <br />Marina Cal Boating Notes Payable <br />The City entered into various construction loan agreements with the California Department of Boating <br />and Waterways in the total principal amount of $5,331,032. The loans bear an average interest rate of <br />4.50%. Principal and interest payments are payable annually on each August 1. The debt is secured by <br />Shoreline Enterprise Fund operating revenues. <br />At June 30, 2014, future debt service requirements for the Marina Cal Boating Notes Payable are as <br />follows: <br />For The Year <br />Ending June 30 Principal Interest Total <br />2015 <br />$ 207,791 <br />$ 85,219 <br />$ 293,010 <br />2016 <br />217,141 <br />75,868 <br />293,009 <br />2017 <br />226,911 <br />66,098 <br />293,009 <br />2018 <br />237,124 <br />55,887 <br />293,011 <br />2019 <br />247,793 <br />45,216 <br />293,009 <br />2020-2024 <br />688,907 <br />76,752 <br />765,659 <br />2025-2027 <br />66,088 <br />6,218 <br />72,306 <br />$ 1,891,755 <br />$ 411,258 <br />$ 2,303,013 <br />