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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 />B. Long-Term Debt of Business-Type and Proprietary Funds
<br />
<br />Summary of changes in long-term debt of business-type and proprietary funds for the year ended June 30,
<br />2016:
<br />
<br />Due Due in
<br />Balance Balance Within more than
<br />June 30, 2015 Additions Retirements June 30, 2016 one year one year
<br />State Water Resources
<br />Control Board 40,408,504$ 2,304,492 $ $42,712,996$ 1,655,326$ 41,057,670$
<br />Marina Note 1,683,964 217,141 1,466,823 226,911 1,239,912
<br />Total 42,092,468$ 2,304,492 $ 217,141$ 44,179,819$ 1,882,237$ 42,297,582$
<br />
<br />State Water Resources Control Board
<br />
<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. The City expects the project to be completed in early fiscal year 2017. The City drew down
<br />$2,304,492 for the current year and had a balance outstanding of $42,712,996 as of June 30, 2016.
<br />
<br />There was no debt service payment in fiscal year 2015-16, the first debt service payment of $2.8 million
<br />will be due in fiscal year 2016-17. Pursuant to the agreement, the City is expected to obtain net revenues
<br />of the Water System to be equal to at least 1.20 times the total annual debt service in such fiscal year. In
<br />fiscal year 2016, net revenues amounted to $16,863,663 which represented coverage of 610% over the
<br />$2,765,864 in debt service. Future debt service is expected to average $3 million per year through fiscal
<br />year 2035-36 for a total $55.3 million.
<br />
<br />At June 30, 2016, future debt service requirements for the State Water Resources Control Board loan are
<br />as follows:
<br />
<br />For The Year
<br />Ending June 30 Principal Interest Total
<br />2017 1,655,326$ 1,110,538$ 2,765,864 $
<br />2018 1,698,365 1,067,499 2,765,864
<br />2019 1,742,522 1,023,342 2,765,864
<br />2020 1,787,828 978,036 2,765,864
<br />2021 1,834,312 931,553 2,765,865
<br />2022-2026 9,912,229 3,917,095 13,829,324
<br />2027-2031 11,269,590 2,559,733 13,829,323
<br />2032-2036 12,812,824 1,016,496 13,829,320
<br />42,712,996$ 12,604,292$ 55,317,288$
<br />
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