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City of Redwood City 6.1.E. - Page 82
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2015
<br /> NOTE 6-GOVERNMENTAL ACTIVITIES LONG-TERM DEBT
<br /> A. Description
<br /> Redwood City has no outstanding general obligation bonds. The following is the only long-term
<br /> obligation of the City.
<br /> 2013 Public Financing Authority Refunding lease — In May 2013, the City entered into a lease
<br /> agreement with BBVA Compass Bank in the amount of $3,360,000 to refund the 2003 Public Financing
<br /> Authority Bonds. Net proceeds of $3,292,748 plus the 2003 Public Financing Authority Bond Reserve
<br /> were utilized for the purpose of establishing an irrevocable escrow to refund $5,880,000 of the City's
<br /> 2003 Public Financing Authority Bonds. Principal is due in annual installments of$347,486 to $687,180,
<br /> with total principal and interest remaining on the lease in the amount of $2,450,768 through July 15,
<br /> 2018. Payments are made from the Public Financing Authority Refunding Lease Debt Service fund out
<br /> of lease payment revenue received from the general fund, requiring less than 10% of net revenues. The
<br /> refunding resulted in a decrease in total debt service payments of $347,302 and an economic gain of
<br /> $270,485.
<br /> B. Changes in Long-Term Obligations
<br /> As of June 30, 2015,the City had the following long-term obligations outstanding:
<br /> Interest Beginning Ending Due Within
<br /> Rate Balance Additions Retirements Balance One Year
<br /> Governmental Activities: % $ $ $ $ $
<br /> Revenue Bonds
<br /> 2013 PFA Refunding Lease 1.51 3,035,258 656,858 2,378,400 666,814
<br /> Total Bonds and Loans 3,035,258 - 656,858 2,378,400 666,814
<br /> Accrued Sick Leave and Vacation 9,979,979 962,456 346,856 10,595,579 472,360
<br /> Total Governmental Activities Long-Term Debt 13,015,237 962,456 1,003,714 12,973,979 1,139,174
<br /> At year-end, $986,379 of internal service fund compensated absences is included in the above amounts.
<br /> For the governmental activities, compensated absences are generally liquidated by the general fund.
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