16 ATTACHMENTS 1-11 - Laserfiche WebLink

CITY OF PLEASANTON NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 Note 6: Long-Term Liabilities (Continued) a. Governmental Activities California Energy Commission (CEC) Loan On June 7, 2013, the City entered into an agreement with the California Energy Resources Conservation and Development Commission to borrow up to $2,755,000 for the LED Street Light Retrofit Capital Improvement Project. Loan funds totaled $1,716,976 and were disbursed to the City on a reimbursement basis based on eligible invoices paid. Interest accrues at 1 percent per annum on the unpaid principal, computed from each disbursement date. Principal and interest payments began on December 22, 2016 and continues on each June 22 and December 22 of each year until the loan is paid in full. Loan payments are made from the Miscellaneous Capital Improvement Programs Capital Project Fund. The outstanding balance at June 30, 2022, was $93,907. The City's outstanding notes from direct placement related to governmental activities of $93,907 are secured with collateral of the promissory note. Additionally, the direct placement related to governmental activities contain a provision that in an event of default, the lender may declare the promissory note evidencing this loan to be immediately due and payable if the City is unable to make payments. Furthermore, the direct placement related to governmental activities contain a provision of termination related to (1) if the City is in breach of the terms or covenants in the agreement, (2) significant change in Energy Commission or State policy where the work or product being funded would not be supported by the Energy Commission, (3) reorganization to a business entity unsatisfactory to the energy commission and (4) that the Energy Commission may terminate the agreement without cause upon giving thirty days advance notice in writing to the City. Annual debt service requirements to maturity are as follows: For the Year Ending June 30 Principal Interest Total 2023 93,907$ 471$ 94,378$ Total 93,907$ 471$ 94,378$ Direct Placement California Energy Commission (CEC) HUD Section 108 Loan On August 28, 2015, the City entered into an agreement with the U.S. Department of Housing and Urban Development to borrow up to $1,250,000. The City used these funds to reimburse Axis Community Health, Inc. for construction costs of their new health clinic. In FY 2015/16, the City requested an advance of $950,000 on this loan. Principal payments are due August 1 of each year. Loan payments are made from the Community Development Block Grant Special Revenue Fund. The outstanding balance at June 30, 2022, was $636,000. 80