|
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 />California Clean Water State Revolving Fund (SRF) Loan
<br />
<br />In June 2015, the City entered into an agreement with the California State Water
<br />Resources Control Board for State Revolving Fund project financing in the amount of
<br />$19,875,720 to fund the City of Pleasanton Recycled Water Project. The loan is secured
<br />by and payable solely from net revenues from the ownership or operation of the City’s
<br />Water Enterprise. The agreement was amended in September 2015 to reduce the project
<br />funding to $11,317,177. The project was completed in October 2016 and the City had drawn
<br />a total of $11,088,917. The loan bears annual interest of 1.0 percent, and principal and
<br />interest payments are due October 31 of each year. The outstanding balance at
<br />June 30, 2022, was $9,577,757.
<br />
<br />Annual debt service requirements to maturity are as follows:
<br />
<br />For the Year
<br />Ending June 30 Principal Interest Total
<br />2023 339,117$ 95,778$ 434,895$
<br />2024 342,508 92,386 434,894
<br />2025 345,934 88,961 434,895
<br />2026 349,393 85,502 434,895
<br />2027 352,887 82,008 434,895
<br />2028-2032 1,818,079 356,395 2,174,474
<br />2033-2037 1,910,818 263,655 2,174,473
<br />2038-2042 2,008,290 166,185 2,174,475
<br />2043-2047 2,110,731 63,741 2,174,472
<br />Total 9,577,757$ 1,294,611$ 10,872,368$
<br />Direct Borrowing
<br />California Clean Water SRF Loan
<br />
<br />
<br />The City’s outstanding note from direct borrowings related to business-type activities
<br />of $9,577,757 is secured by a lien on and pledge of the Water Enterprise Fund, net water
<br />revenues and any water reserve fund. In addition, the agreement contains a subjective
<br />acceleration clause that allows the lender to accelerate payment of the entire principal.
<br />
<br />Water Revenue Bonds, Series 2017
<br />
<br />In February 2017, the City issued $7,100,000 of Water Revenue Bonds, Series 2017
<br />to finance certain improvements for the expansion of the municipal recycled water system
<br />of the City. The bonds bear interest at 2.15 percent with interest payments made
<br />semi-annually on February 1 and August 1, commencing August 1, 2017. Principal
<br />payments are due annually on February 1, commencing February 1, 2018. The Bonds are
<br />payable solely from net water revenues. The outstanding balance at June 30, 2022, was
<br />$2,820,000.
<br />
<br />83
|