|
City of Redwood City 6.1.D. - Page 87
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2016
<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 from
<br />July 15, 2010 to July 15, 2014. Payments reflecting interest and principal on the capital appreciation bonds
<br />are due in annual installments of $3,505,000 to $3,510,000 from July 15, 2016 through July 15, 2032. Total
<br />principal and interest remaining on the bonds is $59,595,000. Payments are made from property tax
<br />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 Tax
<br />Refunding Bonds, Series 2012 to refund $8,655,000 of the Series 2000A bonds. The refunding reduced
<br />annual debt service payments by approximately 25% or $52,000, and resulted in an economic gain of
<br />$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, 2016, the outstanding principal
<br />amount was $1,430,000.
<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
<br />
|