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City of Redwood City 6.1.E. - Page 86
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2015
<br /> NOTE 8—DEBT WITHOUT CITY COMMITMENT
<br /> A. Successor Agency Private Purpose Trust Fund Debt
<br /> Tax Increment Bonds:
<br /> 2003 Tax Allocation Bonds—In October 2003, the former Redevelopment Agency issued $33,997,448 in
<br /> bonds to finance various downtown improvements. These bonds consist of current coupon bonds and
<br /> capital appreciation bonds. The current coupon bonds pay interest-only through January 15, 2010.
<br /> Principal on the current coupon bonds is paid in annual installments of$1,225,000 to $3,045,000
<br /> from July 15, 2010 to July 15, 2014. Payments reflecting interest and principal on the capital
<br /> appreciation bonds are due in annual installments of $3,505,000 to $3,510,000 from July 15, 2015
<br /> through July 15, 2032. Total principal and interest remaining on the bonds is $63,029,814. Payments
<br /> are made from property tax increment generated by the former redevelopment agency fund.
<br /> B. Community Facilities District(Mello-Roos)Bonds
<br /> On October 17, 2000, the Community Facilities District (CFD) issued $21,000,000 of bonds on behalf of
<br /> the developer of the Pacific Shores Project to fund various transportation system improvements within
<br /> the City's right-of-way that were required as a condition of the development.
<br /> In July 2012 the CFD issued $5,555,000 Community Facilities District No. 2000-1 Pacific Shores Special
<br /> Tax Refunding Bonds, Series 2012 to refund $8,655,000 of the Series 2000A bonds. The refunding
<br /> reduced annual debt service payments by approximately 25% or $52,000, and resulted in an economic
<br /> gain of$398,000, which equates to 7.61% of the refunding bonds.
<br /> These bonds are solely obligations of the property owners in this district and are not obligations of the
<br /> City, nor has any political subdivision of the State of California pledged its full faith and credit for the
<br /> payment of these bonds. The City's only responsibilities with respect to any delinquent assessment
<br /> installments are solely advancing funds from the reserve fund (established with bond proceeds) to the
<br /> redemption fund,to the extent that such funds are available, and instituting foreclosure proceedings.
<br /> The City is not required to advance available funds of the City for payment of principal or interest or to
<br /> purchase land at a delinquent foreclosure assessment sale. As of June 30, 2015, the outstanding
<br /> principal amount was $2,840,000.
<br /> On January 17, 2001, the Shores Transportation Improvement District issued $5,045,000 of Phase I CFD
<br /> bonds, and on September 3, 2003 the District issued $7,505,000 of Phase II CFD bonds. The proceeds of
<br /> these bonds were used to fund various transportation projects that are required under development
<br /> agreements with commercial property owners in the Redwood Shores area of the City.
<br /> In December 2012 the Shores Transportation District issued $10,275,000 Redwood Shores Community
<br /> Facilities District No. 99-1 Special Tax Refunding Bonds, Series 2012B to refund $3,640,000 of the
<br /> outstanding Series 2001A Bonds and $6,675,000 of the outstanding Series 2003A Bonds. The refunding
<br /> reduced annual debt service payments by approximately 16% or$140,000, and resulted in an economic
<br /> gain of$1.7 million, which equates to 16.62%of the refunding bonds.
<br /> These bonds are solely obligations of the property owners in this district and are not obligations of the
<br /> City, nor has any political subdivision of the State of California pledged its full faith and credit for the
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