Page 86 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 6. Long-term Debt (Continued)

2021 Refunding Lease Revenue Bonds

Refunding Lease Revenue Bonds 2021 consolidated both the 2015 Lease Revenue Bonds and
the 2016 Refunding Lease Revenue Bonds for a cumulative amount of $30,985,000. The 2015
Lease Revenue Bonds (Taxable) with the original issue amount of $10,430,000 were issued
for the purpose of financing certain capital improvements of the City including installation of
new electrical substation and associated feeders. The 2016 Refunding Lease Revenue Bonds
with the original issue amount of $24,655,000 were issued for the purpose of retiring the
outstanding portion of the 2007 Lease Revenue Bonds, as well as certain costs related to the
issuance of the bonds.

The bonds are comprised of a combination of serial and term bonds with maturities between
2024 and 2045 and bear interest ranging from 0.183% to 3.100%. The bonds are payable from
lease payments made by the City as rent for the use of the Kitching Electrical Substation, the
Moreno Beach Electrical Substation and the Conference and Recreation Center pursuant to a
master facility sublease between the City and the Moreno Valley Public Financing Authority
(MVPFA) dated December 15, 2015. The transaction resulted in a net present value of savings
of $4.6 million.

The annual debt service requirements for the 2021 Refunding Lease Revenue Bonds outstanding
at June 30, 2025, are as follows:

2021 Refunding Lease Revenue Bonds
Year Ending June 30, Principal Interest Total
2026 $ 1,470,000 $ 604,780 $ 2,074,780
2027 1,490,000 588,022 2,078,022
2028 1,505,000 566,939 2,071,939
2029 1,535,000 542,633 2,077,633
2030 1,560,000 514,174 2,074,174
2031 - 2035 8,345,000 2,029,432 10,374,432
2036 - 2040 6,470,000 862,116 7,332,116
2041 - 2045 2,525,000 239,475 2,764,475

Totals $ 24,900,000 $ 5,947,571 $ 30,847,571

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