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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2015
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<br />NOTE 7 - LONG-TERM DEBT (Continued)
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<br />2012 Taxable Pension Obligation Bonds
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<br />In 2012, the City issued $18,305,000 principal amount of 2012 Taxable Pension Obligation Bonds (2012
<br />POB). The purpose of the 2012 POB is to save the City money, the interest rate, including the cost of
<br />issuance, must be significantly less than the interest rate the CalPERS charges to amortize the public
<br />safety side fund which is distinct from the City’s other CalPERS plans. Side funds are retired over a
<br />fixed term with a fixed amortization schedule based on CalPERS actuarial earnings assumption rate
<br />(7.75%). Principal is due annually on December 1 and the interest is due semi-annually on June 1 and
<br />December 1 through June 2024. Debt service is payable from available City resources.
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<br />At June 30, 2015, future debt service requirements for the City’s portion of the 2012 Taxable Pension
<br />Obligations Bonds follows:
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<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2016 1,210,000$ 708,124$ 1,918,124$
<br />2017 1,305,000 678,236 1,983,236
<br />2018 1,415,000 636,868 2,051,868
<br />2019 1,540,000 585,644 2,125,644
<br />2020 1,680,000 519,116 2,199,116
<br />2021-2024 8,405,000 1,171,523 9,576,523
<br />15,555,000$ 4,299,511$ 19,854,511$
<br /> 2010 Master Equipment Lease/Purchase Agreement
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<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. As of June
<br />30, 2015, the balance of the lease was paid in full.
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