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) The City makes quarterly payments of $6,603 over a finance period of 60 months, including interest payments at a rate of 3.86 percent. At the end of the term, the property becomes the property of the City. On September 16, 2021, the City entered into a finance purchase agreement with U.S. Bancorp Government Leasing and Financing for golf course maintenance equipment (Property Schedule No. 3). This is an addendum to the Master Agreement with U.S. Bancorp dated February 10, 2016. The cost of the financed equipment was $151,273. The City makes quarterly payments of $7,954 over a finance period of 60 months, including interest payments at a rate of 1.94 percent. At the end of the term, the property becomes the property of the City. Annual debt service requirements to maturity are as follows: For the Year Ending June 30 Principal Interest Total 2023 54,922$ 3,309$ 58,231$ 2024 36,492 1,929 38,421 2025 30,537 1,281 31,818 2026 31,134 684 31,818 2027 15,794 115 15,909 Total 168,879$ 7,318$ 176,197$ Direct Borrowing Golf Course Financed Purchase The City’s outstanding notes from direct borrowings related to business-type activities of $168,879 are secured by a lien on the financed equipment. The agreements contain (1) a provision that in an event of default, the timing of repayment of outstanding amounts become immediately due, and (2) lessor may require the City to return any or all of the property. Golf Course Loan Payable On May 1, 2020, the Golf Course received loan proceeds in the amount of $291,667 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after twenty-four weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the twenty-four week period. On August 25, 2021, the total proceeds of the PPP Loan were forgiven as authorized by Section 1106 of the CARES Act. As such, the balance is $0 as of June 30, 2022. 82