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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2018
<br />I NOTE 6 -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 />(7.65%). 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, 2018, 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 Principal Interest Total
<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 2,000,000 350,516 2,350,516
<br />2023 2,185,000 247,716 2,432,716
<br />2024 2,385,000 132,127 2,517,127
<br />$ 11,625,000 $ 2,276,283 $ 13,901,283
<br />2013 Refunding Lease Revenue Bonds
<br />In April 2013, the City issued $8,883,000 principal amount of 2013 Refunding Lease Revenue Bonds (2013
<br />RLRB). The purpose of the 2013 RLRBs was to refund and retire the City's 2003 COPs and 2001 COPs.
<br />The 2013 RLRBs bear interest rates ranging from 2.00% to 5.00% and are payable semiannually on each
<br />June 1 and December 1. Principal payments are payable annually on December 1.
<br />At June 30, 2018, future debt service requirements for the City's portion of the 2013 RLRB follows:
<br />For The Year
<br />Ending June 30 Principal Interest Total
<br />2019 $ 621,000 $ 253,811 $ 874,811
<br />2020 641,000 234,881 875,881
<br />2021 661,000 215,351 876,351
<br />2022 681,000 191,816 872,816
<br />2023 710,000 163,996 873,996
<br />2024-2028 3,961,000 412,792 4,373,792
<br />$ 7,275,000 $ 1,472,647 $ 8,747,647
<br />64 529
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