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Note 6: Long Term Debt (Continued)<br />
City of <strong>Moreno</strong> <strong>Valley</strong><br />
Notes to <strong>Financial</strong> Statements<br />
Year Ended June 30, 2011 (Continued)<br />
the owners of the taxable land within the District and from certain other funds pledged under<br />
the Fiscal Agent Agreement dated May 1, 2007 by and between the City for and on behalf of<br />
the District and Wells Fargo Bank, National Association, as fiscal agent. The Special Taxes<br />
are to be levied according to the rates and method of apportionment approved by the City<br />
Council, the legislative body of the District, and the qualified electors within the District.<br />
Except for the Special Taxes, no other taxes are pledged to the payment of the Bonds. The<br />
City is in no way liable for repayment but is acting as an agent for the property owners in<br />
collecting the assessments and forwarding the collections to bondholders. Interest on the<br />
Bonds will be payable on September 1, 2007 and semiannually thereafter on each March 1<br />
and September 1 thru 2037. Interest rates range from 4.00% to 5.00%. Principal on the<br />
Bonds is due each September 1 beginning 2009 and ending 2037. The outstanding balance<br />
at June 30, 2011 was $5,805,000.<br />
Changes in Long-Term Debt - Business-Type Activities<br />
The following is a schedule of changes in business-type activities long-term debt of the<br />
entity for the fiscal year ended June 30, 2011:<br />
Balance<br />
Balance Due Within One<br />
July 1, 2010 Additions Deletions June 30, 2011 Year<br />
Electrical Cabinet Capital Leases $ 36,404 $ - $ 33,922 $ 2,482 $ 2,482<br />
Lease Revenue Bonds, 2005<br />
4,910,000<br />
- 100,000 4,810,000 105,000<br />
Lease Revenue Bonds, 2007<br />
25,375,000<br />
- 405,000 24,970,000 430,000<br />
Less Deferred Issuance (295,516)<br />
- (10,945) (284,571)<br />
-<br />
Compensated Absences<br />
32,789<br />
- 18,505<br />
14,284<br />
14,284<br />
Totals<br />
$ 30,058,677 $ - $ 546,482 $ 29,512,195 $ 551,766<br />
Electrical Cabinets Capital Lease<br />
Between January 2004 and August 2006, the City entered into nine separate lease purchase<br />
agreements to lease electrical cabinets in the amount of $65,000 each. The term of each<br />
lease is for 60 months. The outstanding balance as of June 30, 2011 was $2,482.<br />
The annual debt service requirements for the Electrical Cabinets Capital Lease payable<br />
outstanding at June 30, 2011, are as follows:<br />
Electrical Cabinets Capital<br />
Lease<br />
Year Ending<br />
June 30, Principal Interest<br />
2011-2012 $ 2,482 $ 18<br />
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