Financial Report - Moreno Valley

Note 6: Long Term Debt (Continued)
City of Moreno Valley
Notes to Financial Statements
Year Ended June 30, 2011 (Continued)
The annual debt service requirements for the Lease Revenue Bonds, 2005 payable
outstanding at June 30, 2011, are as follows:
Compensated Absences
2005 Lease Revenue Bonds
Principal Interest
Year Ending June 30,
2011-2012 $ 885,000 $ 1,758,466
2012-2013 920,000 1,715,641
2013-2014 970,000 1,670,691
2014-2015 1,020,000 1,626,041
2015-2016 1,050,000 1,579,390
2017-2021 6,050,000 7,134,100
2022-2026 7,585,000 5,561,355
2027-2031 9,440,000 3,666,562
2032-2036 11,740,000 1,327,813
Totals $ 39,660,000 $ 26,040,059
At June 30, 2011, the amount of compensated absences liability was $5,214,212. This
amount consists of $4,686,168 for governmental funds, principally paid by the general fund,
and $528,044 for internal service funds.
Portable Classroom Loans
In January 1999, the City entered into two agreements with the California Department of
Education to finance the purchase and construction of two portable classrooms. Under the
terms of the agreements, the City was granted two non-interest bearing loans totaling
$246,585. The loans are payable in monthly installments of $2,055 beginning February 2001,
for 10 years. These loans were fully repaid as of June 30, 2011.
Note Payable - Price Company
The Redevelopment Agency had recorded a long-term payable in the original amount of
$2,433,744 under a development and disposition agreement and promissory note with Price
Company for the reimbursement of costs of construction of a 130,000-square-foot retail store.
The note bears interest at 8% per annum and is payable solely from 50% of site-generated
sales tax. Any remainder payable after September 2015 will be forgiven. The amount
outstanding as of June 30, 2011 was $1,736,067.
RDA 2007 Tax Allocation Bonds Series A
Redevelopment Agency 2007 Tax Allocation Bonds, Series A, in the original issue amount of
$43,495,000 were issued in November 2007 for the purpose of financing various
redevelopment activities and other undertakings permitted under the Redevelopment Law, to
fund a reserve for the bonds and to pay issuance costs. The bonds mature in serial and term
fashion through August 1, 2038 and bear interest ranging from 3.5% to 5.0%. The bonds are
subject to both optional and mandatory redemption prior to maturity beginning on
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