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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2019
<br />
<br />
<br />NOTE 6 – LONG-TERM DEBT (Continued)
<br />
<br />2012 Taxable Pension Obligation Bonds
<br />
<br />In 2012, the City issued $18,305,000 principal amount of 2012 Taxable Pension Obligation Bonds (2012
<br />POB). The purpose of the 2012 POB is to refinance the “side fund” obligations of the City to CalPERS
<br />with respect solely to the Public Safety Plan. Side funds with CalPERS are retired over a fixed term with
<br />a fixed amortization schedule based on CalPERS actuarial earnings assumption rate (7.65%). 2012 POB
<br />principal is due annually on December 1 and interest is due semi-annually on June 1 and December 1
<br />through June 2024. Debt service is payable from available City resources.
<br />
<br />The 2012 POB are general obligations of the City, payable solely from any legally available moneys or
<br />funds of the City. The bond covenants contain events of default that require the revenue of the City to be
<br />applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
<br />default on debt service payments; the failure of the City to observe or perform the conditions, covenants,
<br />or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction
<br />shall assume custody or control of the City. There were no such events during the fiscal year ending June
<br />30, 2019.
<br />
<br />At June 30, 2019, future debt service requirements for the City’s portion of the 2012 POB follows:
<br />
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2020 1,680,000$ 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 />10,085,000$ 1,690,639$ 11,775,639$
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<br />
<br />2013 Refunding Lease Revenue Bonds
<br />
<br />In April 2013, the City issued $8,883,000 principal amount of 2013 Refunding Lease Revenue Bonds
<br />(2013 RLRB). The purpose of the 2013 RLRBs was to refund and retire the City’s 2003 COPs and 2001
<br />COPs. The 2013 RLRBs bear interest rates ranging from 2.00% to 5.00% and are payable semiannually
<br />on each June 1 and December 1. Principal payments are payable annually on December 1.
<br />
<br />The Refunding Bonds are general obligations of the City, payable solely from and secured by Revenues
<br />and certain funds and accounts held under the Indenture. The bond covenants contain events of default
<br />that may result in the termination of the lease, collection of rent due and other monetary charges but do
<br />not terminate the City’s right to possession of the leased property as applied by the Trustee and specified
<br />in the terms of the agreement if any of the following conditions occur: default on debt service payments;
<br />the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt;
<br />bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of
<br />the City. There were no such events occurred during the fiscal year ending June 30, 2019.
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<br />65212
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