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<br />'°1\-\'-\ <br /> <br />City of Redwood City <br />Finance Department <br /> <br />H~ <br /> <br />To: Honorable Mayor Ruskin and <br />Members of the City Council /'L ^ 11 VV' <br /> <br />From: Brian Ponty, Director of Finance and Financial Planning \Il V, <br /> <br />Date: <br /> <br />June 8, 2000 <br /> <br />Re: <br /> <br />Long-Term Debt <br /> <br />General Fund Debt <br /> <br />Public Financin~ Authority <br /> <br />1991 Public Financing Authority Bonds were issued in August 1991 by the Redwood City Public Financing <br />Authority (an entity established to enable the City to issue bonds) to refmance the 1986 Redwood City <br />Infrastructure Authority bonds and to provide funds for the construction of a new Police facility. The original <br />amount issued was $26,715,000 (of which $11 ,280,683 was for refmancing of the 1986 bonds which were <br />issued to finance the construction of the Main Library and Main Fire Station). Average annual debt service is <br />$1,415,000 through July 15, 2011. As of June 30, 2000, $9,190,000 in principal will be outstanding. A portion <br />of this debt was refmanced in 1998 and replaced by the 1998 Lease Revenue Bonds (described below). <br />Sources of repayment fimds - Generalfimd revenues (utility users tax) <br /> <br />1998 Lease Revenue Refunding Bonds - In July 1998, the City issued $12,160,000 of bonds to refmance <br />$10,995,000 of the 1991 Public Finance Authority bonds. Average annual debt service is $935,000 through <br />July 15, 2011. As of June 30, 2000, $11,465,000 of principal will be outstanding. <br />Sources of repayment fimds - Generalfimd revenues (utility users tax) <br /> <br />1998 City Hall Lease Revenue Certificates of Participation - In October 1998, the City issued $11,700,000 <br />of variable rate demand certificates to reimburse itself for the cost of constructing the new City Hall project that <br />was completed in August 1997. Principal payments will be made over a 23-year period commencing July 1, <br />2002. Prior to that date, only interest payments (estimated to be $604,500 annually) will be made. Thereafter <br />and until July 1,2021, average annual debt service is estimated to be $855,000 at current interest rates. <br />Sources of repayment funds - Generalfimd revenues <br /> <br />The total combined average annual debt service of foregoing bond issues is approximately $2.3 million. This <br />entire amount is paid from the general fund (utility users tax) and is equal to about 3.5% of total general fund <br />revenues. <br />