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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2021
<br />NOTE 6 – LONG-TERM 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 />2021:
<br />Due Due in
<br />Balance Balance Within more than
<br />Direct Borrowings June 30, 2020 Additions Retirements June 30, 2021 one year one year
<br />State Water Resources
<br />Control Board 35,828,954$ -$ (1,834,312)$ 33,994,642$ 1,882,004$ 32,112,638$
<br />Marina Note 498,054 - (270,587) 227,467 93,273 134,194
<br />Climatec Lease - 7,624,924 - 7,624,924 441,265 7,183,659
<br />Total 36,327,008$ 7,624,924$ (2,104,899)$ 41,847,033$ 2,416,542$ 39,430,491$
<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 2020-21, net revenues
<br />amounted to $6,336,849 which represented coverage of 229% under the $2,765,865 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 />$41.5 million. The City is authorized under prop 218 to increase up to 9.5% and in fiscal year 2021, we
<br />requested a 7% increase. The City will evaluate its current financial situation and might propose another
<br />hike to meet the coverage expectation. Cash and investments are sufficient to meet any debt service
<br />requirement, until rates increased.
<br />At June 30, 2021, future debt service requirements for the State Water Resources Control Board loan are
<br />as follows:
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2022 1,882,004$ 883,861$ 2,765,865$
<br />2023 1,930,936 834,929 2,765,865
<br />2024 1,981,140 784,724 2,765,864
<br />2025 2,032,650 733,215 2,765,865
<br />2026 2,085,499 680,366 2,765,865
<br />2027 - 2031 11,269,590 2,559,733 13,829,323
<br />2032 - 2036 12,812,823 1,016,496 13,829,319
<br />33,994,642$ 7,493,324$ 41,487,966$
<br />69330
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