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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2019
<br />NOTE 6 - LONGTERM DEBT (Continued)
<br />2016 Bank of America Equipment Lease
<br />On July 21, 2016, the City entered into a direct borrowing Lease/Purchase Agreement with Bank of
<br />America, LLC to Lease/Purchase Equipment in the amount of $5,409,045. The Equipment was for the
<br />installation of energy efficiency improvements on various City -owned facilities. The interest is 2.10%
<br />payable over 16 years.
<br />At June 30, 2019, future debt service requirements for the 2016 equipment lease follows:
<br />For The Year
<br />Ending June 30
<br />Principal
<br />Interest
<br />Total
<br />2020
<br />$ 320,156
<br />$ 102,092
<br />$ 422,248
<br />2021
<br />326,915
<br />95,334
<br />422,249
<br />2022
<br />333,816
<br />88,433
<br />422,249
<br />2023
<br />340,864
<br />81,389
<br />422,253
<br />2024
<br />348,059
<br />74,190
<br />422,249
<br />2025-2029
<br />1,853,663
<br />257,585
<br />2,111,248
<br />2030-2033
<br />1,417,705
<br />60,163
<br />1,477,868
<br />$ 4,941,178
<br />$ 759,186
<br />$ 5,700,364
<br />HUD 108 Guarantee Loan - Senior Center
<br />In 2011, the City received a direct borrowing $2,500,000 20 -year federal loan from HUD, at an interest rate
<br />of 3% to finance the acquisition and construction of senior center facility within the City of San Leandro.
<br />The loan is secured and payable from the Community Development Block Grant Fund.
<br />The loan covenants contain events of default which include collection of any funds pledged under the
<br />contract, withholding the guarantee of any or all obligations not yet disbursed to the City or the Loanee may
<br />direct the City's financial institution to refuse to release any loan funds held in loan accounts, repayment
<br />accounts and investment accounts to the City. These events may be applied by the Loanee as specified in the
<br />terms of the agreement if any of the following conditions occur: default on debt service payments; the
<br />failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt;
<br />bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the
<br />City. There were no such events occurred during the fiscal year ending June 30, 2019.
<br />At June 30, 2019 future debt service requirements for the HUD 108 Guarantee loan follows:
<br />For The Year
<br />Ending June 30
<br />Principal
<br />Interest
<br />Total
<br />2020
<br />$ 132,000
<br />$ 55,414
<br />$ 187,414
<br />2021
<br />132,000
<br />50,972
<br />182,972
<br />2022
<br />132,000
<br />46,246
<br />178,246
<br />2023
<br />132,000
<br />41,256
<br />173,256
<br />2024
<br />132,000
<br />36,135
<br />168,135
<br />2025-2029
<br />660,000
<br />99,450
<br />759,450
<br />2030-2030
<br />132,000
<br />2,911
<br />134,911
<br />$ 1,452,000
<br />$ 332,384
<br />$ 1,784,384
<br />rs
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