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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2021
<br />
<br />
<br />NOTE 6 – LONG-TERM DEBT (Continued)
<br />
<br />2016 Bank of America Equipment Lease
<br />
<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 $5,409,045. The Equipment was for the
<br />installation of energy efficiency improvements on various City-owned facilities. The interest is 2.10%
<br />payable over 16 years.
<br />
<br />At June 30, 2021, future debt service requirements for the 2016 equipment lease follows:
<br />
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2022 333,816$ 88,433$ 422,249$
<br />2023 340,864 81,389 422,253
<br />2024 348,059 74,190 422,249
<br />2025 355,407 66,842 422,249
<br />2026 362,909 59,340 422,249
<br />2027 - 2031 1,932,752 178,499 2,111,251
<br />2032 - 2033 620,300 13,067 633,367
<br />4,294,107$ 561,760$ 4,855,867$
<br />
<br />
<br />HUD 108 Guarantee Loan – Senior Center
<br />
<br />In 2011, the City received a direct borrowing $2,500,000 20-year federal loan from HUD, at an interest rate
<br />of 3% to finance the acquisition and construction of senior center facility within the City of San Leandro.
<br />The loan is secured and payable from the Community Development Block Grant Fund.
<br />
<br />The loan covenants contain events of default which include collection of any funds pledged under the
<br />contract, withholding the guarantee of any or all obligations not yet disbursed to the City or the Loanee may
<br />direct the City’s financial institution to refuse to release any loan funds held in loan accounts, repayment
<br />accounts and investment accounts to the City. These events may be applied by the Loanee as specified in the
<br />terms of the agreement if any of the following conditions occur: default on debt service payments; the
<br />failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt;
<br />bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the
<br />City. There were no such events occurred during the fiscal year ending June 30, 2021.
<br />
<br />At June 30, 2021 future debt service requirements for the HUD 108 Guarantee loan follows:
<br />
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2022 132,000$ 46,246$ 178,246$
<br />2023 132,000 41,256 173,256
<br />2024 132,000 36,135 168,135
<br />2025 132,000 30,882 162,882
<br />2026 132,000 25,496 157,496
<br />2027 - 2030 528,000 45,983 573,983
<br />1,188,000$ 225,998$ 1,413,998$
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<br />68329
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