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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2016
<br />
<br />
<br />NOTE 6 - LONG-TERM DEBT (Continued)
<br />
<br />2012 Taxable Pension Obligation Bonds
<br />
<br />In 2012, the City issued $18,305,000 principal amount of 2012 Taxable Pension Obligation Bonds (2012
<br />POB). The purpose of the 2012 POB is to save the City money, the interest rate, including the cost of
<br />issuance, must be significantly less than the interest rate the CalPERS charges to amortize the public
<br />safety side fund which is distinct from the City’s other CalPERS plans. Side funds are retired over a
<br />fixed term with a fixed amortization schedule based on CalPERS actuarial earnings assumption rate
<br />(7.75%). Principal is due annually on December 1 and the interest is due semi-annually on June 1 and
<br />December 1 through June 2024. Debt service is payable from available City resources.
<br />
<br />At June 30, 2016, future debt service requirements for the City’s portion of the 2012 Taxable Pension
<br />Obligations Bonds follows:
<br />
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2017 1,305,000$ 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 1,835,000 441,164 2,276,164
<br />2022-2024 6,570,000 730,359 7,300,359
<br />14,345,000$ 3,591,387$ 17,936,387$
<br />
<br />2012 Fire Truck Lease
<br />
<br />On November 9, 2011, the City entered into a Lease/Purchase Agreement with Oshkosh Capital to
<br />Lease/Purchase Equipment in the amount of $971,090. The Equipment was for the Fire Department’s
<br />2010 Triple Combination Pumper Truck. The interest is 2.20% payable over five years.
<br />
<br />At June 30, 2016, future debt service requirements for the 2012 Lease Purchase Agreement follows:
<br />
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2017 202,762$ 4,461$ 207,223$
<br />202,762$ 4,461$ 207,223$
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