Section H DEBT REDEMPTION SCHEDULES

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1 Section H

2 DEBT REDEMPTION SCHEDULE SUMMARY Introduction DESCRIPTION Debt Redemption is payment of principal and interest according to a pre-determined schedule to holders of City obligations resulting from the issuance of bonds, notes, or certificates of participation for particular infrastructure projects. CAPITAL FINANCING AND DEBT MANAGEMENT The City uses debt financing only for one-time capital improvements whose life will exceed the term of the financing and where expected revenues are sufficient to cover the long-term debt. The City does not use long-term debt financing for any recurring purpose such as current operating and maintenance expenditures. ASSESSMENT DISTRICTS The 1992 Street Improvement Assessment and the 1993 Camino Real Improvement Bonds are bond-backed assessment districts created to improve street conditions in the area of specific new developments. Assessment Districts 7, 9, and 10 have been loaned funds from the City s Wastewater Fund in lieu of a bond issuance. The proceeds from the loan were used to construct the sewer improvements. A special tax, or assessment, is levied on those individuals and businesses that benefit from the improvements in order to repay the Wastewater fund. Assessment District 4 is a bond-backed district established to construct sewer improvements. The assessment is used to repay the holders of the bonds according to a pre-determined schedule. H-1

3 1989 Certificates of Participation Fund 489 Debt Service 989 DESCRIPTION In 1989, the City issued $2,000,000 in Certificates of Participation in order to purchase property for the Lake Park and to help fund construction of Police Headquarters and the Lake Park Pavilion. The original certificates were issued at 6.3% to 7.8%. On September 23, 1997, the City refinanced this issue by executing a private placement lease. The lease was issued for a total principal amount of $1,374,000 and carries a 5.75% interest rate. The City made the final payment on the debt service for this lease in fiscal year DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL The terms are as follows: Issue: 1989 Certificates of Participation 2010 $ - $ - $ - Type of Debt: Lease Dated: September 23,1997 $ - $ - $ - Principal Issued: $1,374,000 Interest Rates: 5.75% Maturity Dates: July 1, July 1, 2009 Obligated Funds: Police Impact Fees Fund, Park & Recreation Impact Fees and the General Fund H-2

4 1989 Certificates of Participation Fund 489 Debt Service 989 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Principal $ 135,000 $ 142,000 $ 151,000 $ 151,000 $ - $ Interest 24,610 16,847 8,690 8, Total Debt Service $ 159,610 $ 158,847 $ 159,690 $ 159,690 $ - $ - H-3

5 1992 Street Improvement Assessment Fund 492 Debt Service 992 DESCRIPTION This fund is used to account for fees assessed in the 1992 Street Improvement Assessment District and the related debt service payments. This assessment district was formed in 1992 in order to construct street improvements in two non-contiguous sections of the City: the Las Encinas area and the 3F Meadows area. In accordance with the original bond agreement, the District called $180,000 in aggregate principal bonds on September 2, The debt service schedule below reflects this revision. The City made the final payment on the debt service for bond issue in fiscal year DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL 2010 $ - $ - $ - The terms are as follows: Issue: Las Encinas & 3F Meadows Improvement Bonds $ - $ - $ - (1992 Street Improvement Bonds) Type of Debt: 1915/1913 Act Assessment Bonds Dated: August 19, 1993 Principal Issued: $903,356 Interest Rates: 3.00% to 6.20% Maturity Dates: September 2, 1994 to September 2, 2008 Obligated Funds: Assessments levied within the Assessment District for this purpose. H-4

6 1992 Street Improvement Assessment Fund 492 Debt Service 992 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Principal $ 60,000 $ 60,000 $ 65,000 $ 65,000 $ - $ Interest 9,595 5,890 2,020 2, Trustee Fees 2,054 2,054 2,300 2, District Administration 3,192 1,142 3,400-7, Arbitrage Calculation , Total Debt Service $ 74,841 $ 69,086 $ 72,720 $ 71,180 $ 7,000 $ - DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT District Administration Services provided to close out assessment district Estimate $ 7,000 $ - H-5

7 1993 Camino Real Improvement Bond Fund 493 Debt Service 993 DESCRIPTION The Assessment District was formed to construct and dedicate off-site improvements and utility services to serve the Factory Outlet Center development. On July 8, 1993, the City issued $2,100,000 in 1915/1913 Act Assessment Bonds at interest rates of 4.50% to 7.25%. Proceeds from these assessment bonds were used to construct street improvements, sewer lines, water mains, electrical and telephone utility extensions, street lighting, traffic signalization, landscaping, and storm drains in and around the Factory Outlet Mall. On February 17, 1999, the City defeased the outstanding bonds and issued new lower interest bonds. (Prior to the refinancing there was $1,700,000 in bonds outstanding at 5.75% to 7.25%.) The schedule below reflects debt service on the 1999 (new) bonds. DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL 2010 $ 130,000 $ 37,077 $ 167,077 The terms are as follows: ,000 29, ,722 Issue: 1993 Camino Real Improvement Bonds ,000 21, ,846 Type of Debt: 1915/1913 Act Assessment Bonds ,000 13, ,475 Dated: January 26, ,000 4, ,600 Principal Issued: $1,590,000 $ 720,000 $ 106,720 $ 826,720 Interest Rates: 4.40% to 5.75% Maturity Dates: September 2, 2000 to September 2, 2013 Obligated Funds: Assessments levied within the Assessment District for this purpose. H-6

8 1993 Camino Real Improvement Bonds Fund 493 Debt Service 493 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Principal $ 110,000 $ 115,000 $ 125,000 $ 125,000 $ 130,000 $ 135, Interest 56,443 50,479 44,030 44,030 37,080 29, Trustee Fees 2,120 2,385 2,340 2,390 2,670 2, District Administration Total Debt Service $ 168,607 $ 167,908 $ 171,430 $ 171,470 $ 169,950 $ 168,020 DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT Principal Scheduled repayment of principal Agreement $ 130,000 $ 135, Interest Current year interest on debt Agreement 37,080 29, Trustee Fees Payment to Bank of New York for trustee services Estimate 2,670 2, District Administration provided in accordance with original debt agreement Services provided for assessment district administration Estimate H-7

9 Assessment District #3 Debt Service Fund 403 Debt Service 903 DESCRIPTION This fund is used to account for fees assessed in Assessment District #3 and the related debt service payments. This assessment district was formed to construct sewer improvements in the Marchant Avenue area. Rather than issue bonds to construct the necessary sewer improvements, the Assessment District received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct the necessary sewer improvements. DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL 2010 $ - $ - $ - The terms are as follows: $ - $ - $ - Issue: Marchant Avenue Sewer Improvement Loan Type of Debt: Dated: July 28, 1986 Principal Issued: Interest Rate: Maturity Dates: Obligated Funds: (Assessment District #3) Loan from the City's Wastewater Fund Assessments levied within the Assessment District for this purpose. (No City funds are obligated.) H-8

10 Assessment District #3 Debt Service Fund 403 Debt Service 903 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Contract Services $ - $ - $ - $ - $ 770 $ - Total Debt Service $ - $ - $ - $ - $ 770 $ - DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT Contract Services Services provided to close out assessment district Estimate $ 770 $ - H-9

11 Assessment District #4 Debt Service Fund 404 Debt Service 904 DESCRIPTION This fund is used to account for fees assessed in Assessment District #4 and the related debt service payments. This assessment district was established in 1986 in order to construct sewer improvements in the areas known as Seperado/Cayucos. The City made the final payment on the debt service for bond issue in fiscal year DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL 2010 $ - $ - $ - The terms are as follows: $ - $ - $ - Issue: Seperado/Cayucos Assessment Bonds Type of Debt: (Assessment District #4) 1915 Act Assessment Bonds Dated: December 2, 1986 Principal Issued: $1,070,227 Interest Rate: 5.00% to 7.50% Maturity Dates: September 2, 1988 to September 2, 2007 Obligated Funds: Assessments levied within the Assessment District for this purpose. (No City funds are obligated.) H-10

12 Assessment District #4 Debt Service Fund 404 Debt Service 904 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Principal $ 80,000 $ 90,000 $ - $ - $ - $ Interest 9,750 3, Trustee Fees 1, , District Administration 1,665-5,300-7,000 - Total Debt Service $ 93,140 $ 93,818 $ 7,030 $ - $ 7,000 $ - DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT District Administration Services provided to close out assessment district Estimate $ 7,000 $ - H-11

13 Assessment District #7 Debt Service Fund 407 Debt Service 907 DESCRIPTION The Assessment District was formed to bring sewer services to an area referred to as East Santa Rosa Road pursuant to a Regional Water Quality Control Board Cease and Desist Order prohibiting septic systems in the area. Rather than issue bonds to construct the necessary sewer improvements, the Assessment District received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct a sewer main extension and the related necessary sewer improvements needed to comply with the Cease and Desist Order. DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL The terms are as follows: 2010 $ 14,715 $ 736 $ 15, Issue: East Santa Rosa Road Sewer Improvement Loan $ 14,715 $ 736 $ 15,451 Type of Debt: (Assessment District #7) Loan from the City's Wastewater Fund Dated: September 2, 1994 Principal Issued: $220,728 Interest Rate: 5.00% Maturity Dates: March 2, 1996 to March 2, 2010 Obligated Funds: Assessments levied within the Assessment District for this purpose. H-12

14 Assessment District #7 Debt Service Fund 407 Debt Service 907 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Interest $ 2,943 $ 2,207 $ 1,480 $ 1,470 $ 740 $ District Administration Total Debt Service $ 3,410 $ 2,697 $ 2,060 $ 2,030 $ 1,490 $ - DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT Interest Current year interest on debt Agreement $ 740 $ District Administration Services provided for assessment district Estimate administration H-13

15 Assessment District #9 Debt Service Fund 409 Debt Service 909 DESCRIPTION The Assessment District was formed to bring sewer services to an area referred to as North San Gabriel Road pursuant to a Regional Water Quality Control Board Cease and Desist Order prohibiting septic systems in the area. Rather than issue bonds to construct the necessary sewer improvements, the Assessment District received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct a sewer main extension and the related necessary sewer improvements needed to comply with the Cease and Desist Order. DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL 2010 $ 21,384 $ 2,673 $ 24,057 The terms are as follows: ,384 1,604 22,988 Issue: North San Gabriel Road Sewer Improvement Loan , ,919 (Assessment District # 9) $ 64,152 $ 4,812 $ 68,964 Type of Debt: Loan from the City's Wastewater Fund Dated: September 2, 1996 Principal Issued: $320,761 Interest Rates: 5.00% Maturity Dates: September 2, 1997 to September 2, 2011 Obligated Funds: Assessments levied within the Assessment District for this purpose. (No City funds are obligated.) H-14

16 Assessment District #9 Debt Service Fund 409 Debt Service 909 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Interest $ 5,881 $ 4,811 $ 3,750 $ 3,750 $ 2,670 $ 1, District Administration Total Debt Service $ 6,496 $ 5,458 $ 4,460 $ 4,460 $ 3,570 $ 2,550 DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT Interest Current year interest on debt Agreement $ 2,670 $ 1, District Administration Services provided for assessment district Estimate administration H-15

17 Assessment District #10 Debt Service Fund 410 Debt Service 910 DESCRIPTION The Assessment District was formed to bring sewer services to an area referred to as West Santa Rosa Road pursuant to a Regional Water Quality Control Board Cease and Desist Order prohibiting septic systems in the area. Rather than issue bonds to construct the necessary sewer improvements, the Assessment District received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct a sewer main extension and the related necessary sewer improvements needed to comply with the Cease and Desist Order. DEBT SERVICE SCHEDULE FISCAL YEAR ENDING JUNE 30, PRINCIPAL INTEREST TOTAL The terms are as follows: 2010 $ 3,346 $ 342 $ 3,688 Issue: West Santa Rosa Road Sewer Improvement Loan , ,678 (Assessment District #10) $ 6,849 $ 517 $ 7,366 Type of Debt: Dated: February 13, 1996 Principal Issued: $38,280 Interest Rate: 5.00% Loan from the City's Wastewater Fund Maturity Dates: June 30, 1996 to June 30, 2011 Obligated Funds: Assessments levied within the Assessment District for this purpose. H-16

18 Assessment District #10 Debt Service Fund 410 Debt Service 910 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED DEBT SERVICE Interest $ 798 $ 653 $ 510 $ 510 $ 350 $ 180 Total Debt Service $ 798 $ 653 $ 510 $ 510 $ 350 $ 180 DETAIL BACKUP OBJECT EXPENSE NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT Interest Current year interest on debt Agreement $ 350 $ 180 H-17

ELECTED OFFICIALS. Ellen Béraud, MAYOR. Roberta Fonzi, MAYOR PRO TEMPORE Jerry L. Clay, Sr., COUNCIL MEMBER

ELECTED OFFICIALS. Ellen Béraud, MAYOR. Roberta Fonzi, MAYOR PRO TEMPORE Jerry L. Clay, Sr., COUNCIL MEMBER ELECTED OFFICIALS Ellen Béraud, MAYOR Roberta Fonzi, MAYOR PRO TEMPORE Jerry L. Clay, Sr., COUNCIL MEMBER Tom O Malley, COUNCIL MEMBER Bob Kelley, COUNCIL MEMBER Marcia McClure Torgerson, CITY CLERK Joseph