Equipment and Vehicle Financing Program

Facts at a Glance

The City of San Diego (the "City") operates an Equipment and Vehicle Financing Program (the "EVFP") to finance essential vehicles and equipment used for City operations and public safety. To facilitate the EVFP, the City has entered into several Master Lease Agreements (collectively the "Lease Agreements"), under which lease-purchase funding(s) ("Transactions") may be made. A summary of the Lease Agreements can be found below; the summary does not purport to be complete and reference is made to the Lease Agreements for full and complete statements of their provisions. The Lease Agreements are attached hereto (see Attachments 2A - 2F).

The City is filing this information as a voluntary filing on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access ("EMMA") system. The City is not required pursuant to any continuing disclosure undertaking to file this information and makes no commitment to update this information. This information is being filed voluntarily to provide certain detailed information regarding bank loan obligations, which are otherwise reported as capital lease obligations in the City's annual audited financial statements in accordance with applicable governmental accounting standards.

This information is only accurate as of June 30 of the prior Fiscal Year. The City makes no commitment to update or provide any notice (advance or otherwise) of any amendment, modification, redemption, cancellation, or other event or circumstance with respect to the Transactions.

The provision of this information to EMMA is not intended as an offer to sell any security and the City does not intend that the Transactions involve the offering to the public of any security of the City. No representation is made as to whether this information is material or important with respect to any particular outstanding debt issue of the City or whether other events have occurred with respect to the City or its outstanding debt that might be material or important to owners of the City's outstanding debt.

Information related to the City's financial information is available on the City's Investor Information Website and can be found at http://www.sandiego.gov/investorinformation/.

CUSIP Number: No
Official Statement: No
Outstanding Principal
(as of 6/30/2016):
$42,890,978.39 (unaudited)
Total Annual Lease Payments
Fiscal Year 2016:
Principal
$13,563,932.33
Interest
$856,978.37
Total Lease Payments
$14,420,908.70
Purpose of Loans: Equipment and Vehicle Financing Program to lease-purchase essential vehicles and equipment.
Lessors:

Koch Financial Corporation (Master Lease Agreement dated April 15, 2007 as amended on June 2, 2008 - PDF icon Attachment A)

IBM Credit, LLC (Master Lease Agreement dated June 21, 2007 and as amended on June 29, 2009 and October 15, 2012 - PDF icon Attachment B)

JPMorgan Chase Bank, NA (Master Lease Agreement dated March 25, 2011- PDF icon Attachment C)

JPMorgan Chase Bank, NA (Master Lease Agreement dated July 2, 2012 as amended on November 26, 2012 - PDF icon Attachment D)

Banc of America Public Capital Corp (Master Lease Agreement dated February 5, 2014- PDF icon Attachment E)

Banc of America Public Capital Corp (Master Lease Agreement dated October 9, 2015- PDF icon Attachment F)

Lessee: City of San Diego
Tax Status of Interest: Tax-Exempt / Taxable as applicable.
Fixed Interest Rate: Yes; Fixed interest rate; varies by funding. See section titled "Equipment Lease Rate" of Article 1 of each respective Master Lease Agreement.
Dated/Closing Date: Varies.
Payment Date: Semi-annual payments; dates vary for each funding.
Repayment Terms: Fixed repayment terms range between 5 and 7 years for new leases & 1-10 years for refinancing leases.
Acceleration: Not subject to acceleration.
Interest Rate Swaps, Caps, and Other Interest Rate Management Products: No
Additional Debt Tests: No
Term-Out Provisions: No
Most-Favored Nation
(or Similar) Clause:
No
Cross Default: No
Events of Default and Remedies: Yes; See "Events of Default of Lessee" & "Remedies of the Lessor" within Article 4 of each respective Master Lease Agreement.
Transferability/Assignment: Yes; See Article 8 of each respective Master Lease Agreement.
Prepayment Provisions: See Article 7 of each respective Master Lease Agreement.
Credit Ratings: Not rated.
Annual Report Dissemination Date: Not subject to annual reporting requirements.
Security/Source for Repayment:
  • Lessor retains a security interest in the equipment funded.
     
  • Lessee covenants to include all lease payments in its annual budget, and make appropriations for all such lease payments.
     
  • Lease Payment obligations are subject to abatement and Lessee covenants to maintain rental interruption insurance for no less than 12 months of lease payments.