San Marcos City Council
June 9, 2026

Tranche Principal ($) APR** Term (Months) Interest Total Paid Tranche 1 $3,939,191.00 3.73% 24 304,611$ 4,243,802$ Tranche 2 $4,000,000.00 3.73% 12 151,777$ 4,151,777$ $7,939,191.00 $456,389 $8,395,580
Exhibit 1: FC021 Fire Station 5 Reserve Loan Repayment Plan* Summary
Interest compounds monthly and is accrued towards the balance. Each tranche is paid in full at maturity with total interest earned. *The use of one-time recurring savings/opportunity reserves shall be utilized as directed by City Council at the Fire Station 5 public workshop held 7/22/2025. The use of reserves helps meet the required construction schedule, and results in a total cost savings of approximately $1.75M-$2.6M in interest payable to external financing options. This replenishment plan is intended to deliver the project with the most cost effective option for construction delivery and interest earnings to reserves, per General Fund Reserve Policy 2012-04. Should future financial conditions warrant modification of the repayment schedule, the replenishment plan may be modified with a period not exceeding 10 years, per the requirements of General Fund Reserve Policy No. 2012-04. ** Interest rate as of March 2026 for estimation purposes only. Actual interest each month will match current interest rate that reserve funds would have earned