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CITY OF PLEASANTON
<br />
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2022
<br />
<br />
<br />Note 6: Long-Term Liabilities (Continued)
<br />
<br />The City's outstanding notes from direct borrowing related to governmental activities
<br />of $636,000 are secured with collateral for a second priority lien on the real property on
<br />nine parcels beginning at a point on the northwestern line of Railroad Avenue.
<br />Additionally, the direct borrowing related to governmental activities contain a provision
<br />that in an event of default, all right, title, and interest of the City in and to the guaranteed
<br />loan funds and guaranteed loan funds investment accounts shall immediately vest in the
<br />Secretary of Housing and Urban Development for use in making payment on the note.
<br />Furthermore, the direct borrowing related to governmental activities contain a subjective
<br />provision clause that allows the lender to accelerate payment of the principal amount.
<br />
<br />Annual debt service requirements to maturity are as follows:
<br />
<br />For the Year
<br />Ending June 30 Principal Interest Total
<br />2023 50,000$ 18,455$ 68,455$
<br />2024 50,000 17,164 67,164
<br />2025 50,000 15,843 65,843
<br />2026 50,000 14,491 64,491
<br />2027 50,000 13,092 63,092
<br />2028-2032 250,000 42,973 292,973
<br />2033-2035 136,000 6,464 142,464
<br />Total 636,000$ 128,482$ 764,482$
<br />Direct Borrowing
<br />HUD Section 108 Loan
<br />
<br />b. Business-Type Activities
<br />
<br />Golf Course Finance Purchase Agreement
<br />
<br />On February 10, 2016, the City entered into a finance purchase agreement
<br />(Master Agreement) with U.S. Bancorp Government Leasing and Finance, Inc.
<br />(U.S. Bancorp) for golf course maintenance equipment (Property Schedule No.1). The
<br />cost of the financed equipment was $321,373. The City makes quarterly payments of
<br />$16,830 over a finance period of 60 months, including interest payments at a rate of
<br />1.78 percent. At the end of the term, the equipment becomes the property of the City.
<br />
<br />On November 7, 2016, the City entered into a finance purchase agreement with Yamaha
<br />Motor Finance for golf course maintenance equipment. The cost of the financed
<br />equipment was $12,319. The City makes monthly payments of $287 over a finance period
<br />of 48 months, including interest payments at a rate of 5.98 percent. At the end of the term,
<br />the equipment becomes the property of the City.
<br />
<br />On August 8, 2018, the City entered into a finance purchase agreement with U.S. Bancorp
<br />Government Leasing and Finance, Inc. for golf course maintenance equipment
<br />(Property Schedule No. 2). This is an addendum to the Master Agreement with U.S.
<br />Bancorp dated February 10, 2016. The cost of the financed equipment was $119,597.
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