|
City of Redwood City 6.1.D. - Page 85
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2016
<br />NOTE 7 — BUSINESS -TYPE ACTIVITIES LONG-TERM DEBT (Continued)
<br />Port of Redwood City 2015 Revenue Bonds — In June 2015, bonds were issued in the amount of
<br />$6,940,000 to (a) refund the 1999 Bonds, (b) purchase the 2016 Reserve Fund Policy in lieu of cash funding
<br />a reserve fund for the 2016 Bonds, and (c) pay a portion of the costs of issuance of the 2016 Bonds. The
<br />refunding of the 1999 Bonds resulted in an economic gain of $745,800. The bonds are due in annual
<br />installments of $385,000 to $611,000 through 2030, with total principal and interest remaining of
<br />$8,453,570. The bonds are payable out of net revenues of the Port, which are expected to equal at least
<br />120% of the annual debt service requirement.
<br />Water Revenue Bonds Series 2007A — In February 2007, Redwood City Public Financing Authority issued
<br />$15,150,000 of bonds to finance a portion of the City's recycled water project. Principal and interest is
<br />payable in 28 annual installments of $728,072 to $950,950 from August 2007 through February 2035, with
<br />total principal and interest remaining of $17,069,663. The bonds are payable out of net revenues of the
<br />water utility fund which are expected to equal at least 120% of the annual debt service requirement.
<br />Water Revenue Bonds Series 2013 — In June 2013, Redwood City Public Financing Authority issued
<br />$26,870,000 of bonds to refund the remaining Water Revenue Bonds Series 2005A. The refunding resulted
<br />in a decrease of total debt service payments of $2,386,569 and an economic gain of $1,231,113.
<br />Principal and interest is payable in 21 annual installments of $1,584,262 to $2,063,000 from August 2013
<br />through February 2034, with total principal and interest remaining of $35,032,914. The bonds are payable
<br />out of net revenues of the water utility fund which are expected to equal at least 120% of the annual debt
<br />service requirement.
<br />Water Revenue Bonds Series 2015 — In May 2015, Redwood City Public Financing Authority issued
<br />$20,235,000 of bonds to refund the remaining Water Revenue Bonds Series 2006A. The refunding resulted
<br />in a decrease of total debt service payments of $3,243,691 and an economic gain of $2,117,710.
<br />Principal and interest is payable in 20 annual installments of $1,205,491 to $1,421,544 from August 2016
<br />through February 2035 with total principal and interest remaining of $29,991,236. The bonds are payable
<br />out of net revenues of the water utility fund which are expected to equal at least 120% of the annual debt
<br />service requirement.
<br />Pledges of Future Revenues — The pledge of future water utility fund revenues ends upon repayment of
<br />the $82.1 million in remaining debt service on the bonds which is scheduled to occur in fiscal year 2034-
<br />35. For fiscal year 2015-16, water utility fund operating revenues amounted to $36,906,034 and operating
<br />expenses excluding depreciation and amortizations amounted to $28,248,490. Net revenues available for
<br />debt service amounted to $8,657,544 which represented a coverage ratio of 2.06 over the $4,209,627 in
<br />debt service.
<br />The pledge of future Port of Redwood City fund revenues ends upon repayment of the $15.9 million in
<br />remaining debt service on the bonds which is scheduled to occur in fiscal year 2031-32. Port of Redwood
<br />City fund operating revenues amounted to $6,779,863 and operating expenses excluding depreciation,
<br />amortizations, and subvention to the City amounted to $2,417,147. Net revenues available for debt
<br />service amounted to $4,362,716 which represented a coverage ratio of 3.11 over the $1,402,323 in debt
<br />service.
<br />58
<br />
|