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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2019
<br />NOTE 3 — LOANS RECEIVABLE
<br />At June 30, 2019, the City had loans receivable in the following funds:
<br />Governmental Funds:
<br />General Fund
<br />Non Major Special Revenue Funds:
<br />Affordable Housing Asset Special Revenue Fund
<br />Community Development Block Grant (CDBG)
<br />HOME Fund
<br />Housing In -Lieu
<br />Less allowance for uncollectible loans
<br />Total net loans receivable
<br />$ 2,615,050
<br />7,303,092
<br />240,753
<br />3,335,000
<br />637,000
<br />(11,218,336)
<br />$ 2,912,559
<br />At June 30, 2019, the City was owed in the General Fund, $773,608 for a loan made by the City to the
<br />San Leandro Unified School District related to property acquisition. The loan is for purchase of a property
<br />in the City that will be used to directly support the educational and administrative function of the District.
<br />The loan is evidenced by a promissory note with a term of 15 years and is to be repaid in full on August
<br />1, 2028. The interest rates range from 1.5% to a maximum of 5%.
<br />At June 30, 2019, the City was owed in the General Fund, $725,601 for a loan made by the City to
<br />Alameda County Industries Inc. (ACI). The loan is to refurbish ACI's Materials Recovery Facility in
<br />order to expand operations to take in more solid waste, recyclable, and green waste tonnage. The loan is
<br />evidenced by a promissory note with a term of 10 years and is to be repaid in full on July 1, 2025. The
<br />interest rate is 2.5% per annum.
<br />At June 30, 2019, the City was owed in the General Fund, $13,258 for loans made by the City to
<br />employees as part of the Employee Computer Purchase Loan Program. The loans are to assist regular
<br />full-time employees after completion of the one-year probationary period, "permanent" part-time
<br />employees as defined in the relevant MOU and City Council Members with the purchase of a home
<br />computer or laptop. The loans range from $500 to $3,000, are repaid over a 1 or 2 year period, and are
<br />interest free. Payments on the loans are handled as standard payroll deduction.
<br />At June 30, 2019, the City was owed in the General Fund, $260,139 for a loan made by the City to San
<br />Leandro Improvement Agency. The loan is to fund Downtown San Leandro capital improvements. The
<br />loan is evidenced by a promissory note with a term of 10 years. The interest rate is 3% per annum.
<br />At June 30, 2019, the City was owed in the General Fund, $387,337 for a loan made by the City to the
<br />Historic BAL Theatre. The loan is to promote the performing arts, music, and City's culture, which is vital
<br />to the public health and economic vitality of the City. The loan is evidenced by a promissory note with a
<br />term of 30 years. The interest rate is 3% per annum.
<br />At June 30, 2019, the City was owed in the General Fund, $455,107 for a loan made by the City to
<br />MTLG, LLC. The loan is for litigation costs between the City of San Leandro and MTLG, LLC for a
<br />proposed wind energy conversion project. The loan is evidenced by a promissory note in the amount of
<br />the loan and a deed of trust with a term of 10 years. The interest rate is 2% per annum.
<br />WFA
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