Note 7 Long Term Debt FY 2013/2014

Meeting Date: November 13, 2014

Agenda Item #11

Note from TheGardeningSnail: Parts of this page may have been prepared by running a PDF Image Document through a program which converts image to text. My apologies for any Textual Gremlins that may have slipped in.

Note 7 Long Term Debt

Note 7 –Long-Term Debt (Continued)

Long-term debt payable at June 30, 2014 was comprised of the following individual issues:

Note Payable – In January 2007 the City borrowed funds from Dunmore Homes to facilitate the purchase of 12.6 acres of land for a future sports complex and drainage facilities. The note calls for six semi-annual payments of $138,329 and is non-interest bearing. However, as the note is only repayable from the Storm Drain Impact Fee fund and that fund has a fund balance of $107,730 at June 30, 2014, there are currently no payments due.

Street Sweeper Capital Lease – On December 15, 2010, the City entered into a capital lease to finance the purchase of a street sweeper. Payments of $4,406 are due monthly through December 15, 2014. The lease has an interest rate.of approximately 3.94%.

Capital Lease Obligations – In 1999, the City entered into a capital lease to finance the construction of the police station. The lease had an interest rate of approximately 2.5%. The lease obligation was retired in the current fiscal year.

HCD Payable – The City entered into an agreement with the California Department of Housing and Community Development (HCD) to return Community Development Block Grant funds received for the Court Theatre Project. As the objective of the grant was not met the City has agreed to repay the funds in three equal installments of $147,147 through September 30, 2014. The agreement does not bear interest.

Refunding Revenue Bonds – On March 26, 2003, the City issued Refunding Revenue Bonds, Series A and Series B in the amounts of $5,000,000 and $4,545,000, respectively. The proceeds of the Bonds were used to refund the balance of the Installment Agreement of 2001. The principal payments are made each March 1 beginning in 2004 through 2043. Interest is to be paid semi-annually on March 1 and September 1through 2043. The interest rate is 4.5%.

Safe Water Loan – In December 1993, the City received a loan from the California Statewide Communities Development Authority to refinance a loan with the State of California Department of Water Resources that Was originally used for Water Department expansion and improvements. Principal and interest at 6.35% were payable semi-annually through June 2014. The remaining balance of the loan was paid off in the current year.

FHA Water Department Loan – In 1977, the City entered into an agreement for drought relief with the Farmers Home Administration in the aggregate principal amount of $308,000. Principal and interest at 5% are payable annually each December through 2019.

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Note 7 – Long-Term Debt (Continued)

The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2014 were as follows:

Note 7 Long Term Debt 2

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