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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 />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 />2019:
<br />Due Due in
<br />Balance Balance Within more than
<br />Direct Borrowings June 30, 2018 Retirements June 30, 2019 one year one year
<br />State Water Resources
<br />Control Board $ 39,359,304 $ (1,742,522) $ 37,616,782 $ 1,787,828 $ 35,828,954
<br />Marina Note 1,004,792 (247,794) 756,998 258,944 498,054
<br />Total $ 40,364,096 $ (1,990,316) $ 38,373,780 $ 2,046,772 $ 36,327,008
<br />State Water Resources Control Board
<br />On August 4, 2011, the City entered into a direct borrowing Finance Agreement with the State Water
<br />Resources Control Board in the total principal amount of $43,000,000, for the purpose of financing the
<br />Wastewater System Expansion and Improvement Project. The loan bears an interest rate of 2.6%.
<br />Principal and interest payments are payable annually on July 1. The debt is secured by the WPCP
<br />Enterprise Fund operating 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 2018-19, net revenues
<br />amounted to $5,424,246, which represented coverage of 196% under the $2,765,864 in debt service.
<br />Future debt service is expected to average $3 million per year through fiscal year 2035-36 for a total of
<br />$52.6 million. The City is preparing a report to propose an increase in sewer rates to meet the coverage
<br />expectation. Cash and investments are sufficient to meet any debt service requirement, until rates
<br />increased.
<br />At June 30, 2019, future debt service requirements for the State Water Resources Control Board loan are
<br />as follows:
<br />For The Year
<br />Ending June 30 Principal
<br />Interest Total
<br />2020
<br />$ 1,787,828
<br />$ 978,036
<br />$ 2,765,864
<br />2021
<br />1,834,312
<br />931,553
<br />2,765,865
<br />2022
<br />1,882,004
<br />883,861
<br />2,765,865
<br />2023
<br />1,930,936
<br />834,929
<br />2,765,865
<br />2024
<br />1,981,140
<br />784,724
<br />2,765,864
<br />2025-2029
<br />10,705,659
<br />3,123,665
<br />13,829,324
<br />2030-2034
<br />12,171,670
<br />1,657,651
<br />13,829,321
<br />2034-2036
<br />5,323,233
<br />208,494
<br />5,531,727
<br />$ 37,616,782
<br />$ 9,402,913
<br />$47,019,695
<br />CGS]
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