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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 />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 />2018:
<br />Due Due in
<br />Balance Balance Within more than
<br />June 30, 2017 Retirements June 30, 2018 one year one year
<br />State Water Resources
<br />Control Board $ 41,057,669 $ (1,698,365) $ 39,359,304 $ 1,742,522 $ 37,616,782
<br />Marina Note 1,239,912 (235,120) 1,004,792 247,794 756,998
<br />Total $ 42,297,581 $ (1,933,485) $ 40,364,096 $ 1,990,316 $ 38,373,780
<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. The project was completed in fiscal year 2016-17.
<br />Pursuant to the agreement, the City is expected to obtain net revenues of the Water system to be equal to
<br />at least 1.20 times the total annual debt service in such fiscal year. In fiscal year 2017-18, net revenues
<br />amounted to $2,138,121 which represented coverage of 77% under the $2,765,864 in debt service. Future
<br />debt service is expected to average $3 million per year through fiscal year 2035-36 for a total of $52.6
<br />million. The City is preparing a report to propose an increase in sewer rates to meet the coverage
<br />expectation. Cash and investments are sufficient to meet any debt service requirement, until rates
<br />increased.
<br />At June 30, 2018, future debt service requirements for the State Water Resources Control Board loan are
<br />as follows:
<br />For The Year
<br />Ending June 30 Principal Interest Total
<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 1,882,004 883,861 2,765,865
<br />2023 1,930,936 834,929 2,765,865
<br />2024-2028 10,434,365 3,394,958 13,829,323
<br />2029-2033 11,863,227 1,966,095 13,829,322
<br />2034-2036 7,884,110 413,481 8,297,591
<br />$39,359,304 $ 10,426,255 $49,785,559
<br />67 532
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