Financial Report - Moreno Valley

Note 6: Long Term Debt (Continued)
Lease Revenue Bonds, 2005
City of Moreno Valley
Notes to Financial Statements
Year Ended June 30, 2011 (Continued)
Lease Revenue Bonds 2005 in the original issue amount of $48,205,000 were issued for the
purpose of financing a portion of the cost of the expansion of the public safety building,
electric utility infrastructure, construction of a fire station, various public works and
redevelopment projects, to fund a reserve for the bonds and to pay issuance costs. Of the
$48,205,000 originally issued, the portion for the electric utility infrastructure ($5,105,000)
has been separated and is shown as long-term debt for business-type activities. The bonds
mature in serial and term fashion through November 1, 2035 and bear interest ranging from
3% to 4.375%. The bonds are subject to both optional and mandatory redemption beginning
November 1, 2006. The bonds are payable from lease payments made by the City under a
project lease dated May 1, 1997, between the City and the MVPFA. The lease payments are
equal to the principal and interest on the bonds and are made by the City as rent for use of
the Public Safety Building and the City Hall. This issue is fully insured in the event of
nonpayment by the City.
The annual debt service requirements for the Lease Revenue Bonds, 2005 payable
outstanding at June 30, 2011, are as follows:
Lease Revenue Bonds, 2007
Lease Revenue Bonds, 2005
Principal Interest
Year Ending June 30,
2011-2012 $ 105,000 $ 213,337
2012-2013 110,000 208,237
2013-2014 120,000 202,762
2014-2015 125,000 197,262
2015-2016 130,000 191,513
2017-2021 735,000 864,713
2022-2026 915,000 674,273
2027-2031 1,150,000 433,094
2032-2036 1,420,000 160,781
Totals $ 4,810,000 $ 3,145,972
Lease Revenue Bonds 2007 (Taxable) in the original issue amount of $25,765,000 were
issued for the purpose of financing a City-owned 115kV to 12kV substation, an 115kV to
12kV switchyard adjacent to the substation, and other infrastructure improvements to support
planned growth of the City-owned electrical distribution system. The bonds mature in serial
and term fashion through May 1, 2038 and bear interest ranging from 5.084% to 5.75%. The
bonds are subject to both optional and mandatory redemption beginning May 1, 2017. The
bonds are payable from lease payments made by the City under a project lease dated
May 1, 2007, between the City and the MVPFA. The lease payments are equal to the
principal and interest on the bonds and are made by the City as rent for use of the 115kV to
12kV substation. This issue is fully insured in the event of nonpayment by the City.
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