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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2010
<br />NOTE 7 - LONG-TERM DEBT, Continued
<br />A. Governmental Activities Long -Term Debt, Continued
<br />2002 Tax Allocation Bonds
<br />In fiscal year 2004, the City's Redevelopment Agency issued $15,935,000 principal amount of Tax Allocation Bonds
<br />(2002 TABS) to refund the City's 1993 Tax Allocation Bonds (1993 TABS) used to finance the redevelopment
<br />activities within the Plaza. Project Area (which have been completed) and to finance new redevelopment projects as set
<br />forth in the Redevelopment Plan. The bonds consist of serial bonds that mature annually through 2018 in amounts
<br />ranging from $305,000 to $860,000 and term bonds maturing in 2020 in the amount of $1,200,000, 2025 in the amount
<br />of $2,355,000 and 2033 in the amount of $3,520,000. Interest rates vary from 2.90% to a maximum of 6% and are
<br />payable semiannually on September 1 and March 1. The debt is secured and payable from the property tax increment
<br />revenues from the Joint Project Area within the City.
<br />The refunding of the outstanding 1993 TABS resulted in a present value loss of $70,679 or 1.1 % of the principal amount
<br />of the refunded bonds. The nominal economic loss was necessary in order to raise the $8,015,000 of new money that was
<br />generated through the financing. Because of a prohibitively high additional bonds test on the 1993 TABS (225%) it was
<br />necessary to refund the outstanding bonds in order to most efficiently raise the new money. According to the analysis
<br />completed by the City's financial advisor, the Agency raised $321,000 more through using the refunding than they could
<br />have raised using a subordinate lien new money only issue.
<br />At June 30, 2010, future debt service requirements for the 2002 Tax Allocation Bonds were as follows:
<br />For the Year
<br />Ending
<br />June 30, Principal Interest Total
<br />2011
<br />$ 575,000 $
<br />757,194
<br />$ 1,332,194
<br />2012
<br />605,000
<br />728,413
<br />1,333,413
<br />2013
<br />635,000
<br />697,095
<br />1,332,095
<br />2014
<br />670,000
<br />663,482
<br />1,333,482
<br />2015
<br />705,000
<br />627,380
<br />1,332,380
<br />2016-2020
<br />3,990,000
<br />2,490,740
<br />6,480,740
<br />2021-2025
<br />2,300,000
<br />1,572,228
<br />3,872,228
<br />2026-2030
<br />2,580,000
<br />844,976
<br />3,424,976
<br />2031-2033
<br />1,505,000
<br />131,250
<br />1,636,250
<br />Total debt service
<br />$ 13,565,000 $
<br />8,512,758
<br />$ 22,077,758
<br />63
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