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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 />2003 Certification of Participation
<br />In 2003, the City issued $12,550,000 principal amount of 2003 Certificates of Participation (2003 COPs). The purpose
<br />of the 2003 COPs was to refund the City's 1993 COPs and raise capital funds for a new aquatics center. The 2003 COPs
<br />bear interest rates ranging from 2.5% to 5.00% and are payable semiannually on each June I and December 1. Principal
<br />payments are payable annually on June 1. The COPs evidence fractional interests of the owners in lease payments to be
<br />made by the City for use and occupancy of the San Leandro City Hall.
<br />The 2003 COPs resulted in a present value of savings of $1,166,751 or 11.75% of the refunded bonds. Through a five-
<br />year extension of debt service on the outstanding COPS, the city was able to generate $2,750,000 of capital improvement
<br />funds and a slight reduction in the annual debt service payment.
<br />At June 30, 2010, future debt service requirements for the 2003 Certificates of Participation were as follows:
<br />For the Year
<br />Ending
<br />June 30,
<br />Principal
<br />Interest
<br />Total
<br />2011
<br />$ 370,000
<br />$ 504,700
<br />$ 874,700
<br />2012
<br />385,000
<br />489,900
<br />874,900
<br />2013
<br />400,000
<br />474,500
<br />874,500
<br />2014
<br />420,000
<br />454,500
<br />874,500
<br />2015
<br />440,000
<br />433,500
<br />873,500
<br />2016-2020
<br />2,570,000
<br />1,813,000
<br />4,383,000
<br />2021-2025
<br />3,275,000
<br />1,103,250
<br />4,378,250
<br />2026-2028
<br />2,385,000
<br />242,500
<br />2,627,500
<br />Total debt service
<br />$ 10,245,000
<br />$ 5,515,850
<br />$. 15,760,850
<br />64
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