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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 />2007 Certification of Participation
<br />In 2007, the City issued $23,435,000 principal amount of 2007 Certificates of Participation (2007 COPs). The purpose
<br />of the 2007 COPs was to provide funds to refund the outstanding 1999 Certificates of Participation (Library and Fire
<br />Stations Project) of the City of San Leandro and the San Leandro Public Financing Authority. Interest rates vary from
<br />4.00% to a maximum of 4.375% and are payable semiannually on each May 1 and November 1. Principal payments
<br />are payable annually on November 1. The COPS evidence fractional interest of the owners in lease payment to be
<br />made by the City for use and occupancy of San Leandro Libraries and San Leandro Fire Stations.
<br />For the Year
<br />Ending
<br />June 30,
<br />Principal
<br />Interest
<br />Total
<br />2011
<br />$ 715,000
<br />$ 883,419
<br />$ 1,598,419
<br />2012
<br />745,000
<br />854,219
<br />1,599,219
<br />2013
<br />775,000
<br />823,819
<br />1,598,819
<br />2014
<br />805,000
<br />792,219
<br />1,597,219
<br />2015
<br />840,000
<br />759,319
<br />1,599,319
<br />2016-2020
<br />4,730,000
<br />3,254,594
<br />7,984,594
<br />2021-2025
<br />5,765,000
<br />2,190,922
<br />7,955,922
<br />2026-2030
<br />7,110,000
<br />803,906
<br />7,913,906
<br />Total Debt Service
<br />$ 21,485,000
<br />$ 10,362,416
<br />$ 31,847,417
<br />The proceeds from the 1999 COP refunding issue were placed in irrevocable escrow account overseen by independent
<br />bank fiscal agents. The proceeds are generally invested in U.S Treasury Securities, which together with earned
<br />interest, will provide amounts sufficient for future payment of interest, principal, and redemption premium on the
<br />defeased bond in the amount of $27,257,815 .The escrow account is not included as assets of the City. The defeased
<br />bonds are excluded from the City's long-term obligations because the arrangement satisfies requirements of
<br />defeasance.
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