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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2024
<br />NOTE 8 – 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 $7,624,924. The
<br />Equipment was for the installation of energy efficiency equipment. The loan bears an interest rate of
<br />1.989% per annum. Principal and interest payments are payable annually on January 22. The debt is
<br />secured by Water Pollution Control Plant Enterprise Fund’s operating revenues.
<br />At June 30, 2024, future debt service requirements for the Climatec Lease are as follows:
<br />For The Year
<br /> Ending June 30 Principal Interest Total
<br />2025 468,123$ 124,802$ 592,925$
<br />2026 477,434 115,491 592,925
<br />2027 486,930 105,995 592,925
<br />2028 496,615 96,310 592,925
<br />2029 506,493 86,432 592,925
<br />2030 - 2034 2,687,643 276,983 2,964,626
<br />2035 - 2036 1,151,386 34,464 1,185,850
<br />6,274,624$ 840,477$ 7,115,101$
<br />C.Debt Covenants and Restrictions
<br />For fiscal year 2023-24, 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 9 – 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, 2024 is as follows:
<br />Balance Balance Due within Due in more
<br />July 1, 2023 Additions Retirements June 30, 2024 one year than one year
<br />Governmental Activities 3,875,973$ 1,269,564$ 644,769$ 4,500,768$ 1,260,218$ 3,240,550$
<br />Business-type Activities 667,631 - 78,757 588,874 147,219 441,655
<br />Total 4,543,604$ 1,269,564$ 723,526$ 5,089,642$ 1,407,437$ 3,682,205$
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