|
CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2022
<br />NOTE 7 – LONG-TERM DEBT (Continued)
<br />2020 Bank of America Equipment Lease
<br />On January 22, 2021, the City entered into a direct borrowing Lease/Purchase Agreement (Climatec
<br />Lease)with the Bank of America, LLC to Lease/Purchase Equipment in the amount of $7,624,924. The
<br />Equipment was for the installation of energy efficiency equipment. The loan bears an interest rate of
<br />1.989% per annum. Principal and interest payments are payable annually on January 22. The debt is
<br />secured by Water Pollution Control Plant Enterprise Fund’s operating revenues.
<br />At June 30, 2022, future debt service requirements for the Climatec Lease are as follows:
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2023 450,042$ 142,883$ 592,925$
<br />2024 458,993 133,932 592,925
<br />2025 468,123 124,802 592,925
<br />2026 477,434 115,491 592,925
<br />2027 486,930 105,995 592,925
<br />2028 - 2032 2,583,836 380,789 2,964,625
<br />2033 - 2036 2,258,301 113,400 2,371,701
<br />7,183,659$ 1,117,292$ 8,300,951$
<br />C.Debt Covenants and Restrictions
<br />For fiscal year 2021-22, the City complied with all general and specific covenants regarding debt
<br />proceeds usage and debt repayment. In accordance with bond official statements, the City also
<br />maintained adequate reserves for all debt issues.
<br />NOTE 8 – COMPENSATED ABSENCES
<br />The City’s compensated absences consist of accrued vacation pay, sick leave, and accrued compensatory
<br />time. The total amount of the accrued liability is recorded in the Government-wide Financial Statements
<br />and charges for compensated absences expense is charged to the various program activities in the
<br />Governmental funds, primarily the General Fund, Internal Service funds, and all Proprietary funds.
<br />A summary of changes in compensated absences for the year ended June 30, 2022 is as follows:
<br />Balance Balance Due within Due in more
<br />July 1, 2021 Additions Retirements June 30, 2022 one year than one year
<br />Governmental Activities 4,070,917$ 820,192$ 1,768,836$ 3,122,273$ 881,441$ 2,240,832$
<br />Business-type Activities 703,366 64,439 122,802 645,003 161,251 483,752
<br />Total 4,774,283$ 884,631$ 1,891,638$ 3,767,276$ 1,042,692$ 2,724,584$
<br />72
|