|
City of Redwood City
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2017
<br />
<br />
<br />
<br />NOTE 7 – BUSINESS‐TYPE ACTIVITIES LONG‐TERM DEBT (CONTINUED)
<br />
<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
<br />funding a reserve fund for the 2016 Bonds, and (c) pay a portion of the costs of issuance of the 2016
<br />Bonds. The bonds are due in annual installments of $385,000 to $611,000 through 2030, with total
<br />principal and interest remaining of $7,845,983. The bonds are payable out of net revenues of the Port,
<br />which are expected to equal at least 120% of the annual debt service requirement.
<br />
<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 was
<br />payable in 28 annual installments of $728,072 to $950,950 from August 2007 through February 2035.
<br />During the year, these were refunded with the issuance of Series 2017 bonds.
<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
<br />resulted in a decrease of total debt service payments of $2,386,569 and an economic gain of
<br />$1,231,113. Principal and interest is payable in 21 annual installments of $1,584,262 to $2,063,000 from
<br />August 2013 through February 2034, with total principal and interest remaining of $35,032,912. The
<br />bonds are payable out of net revenues of the water utility fund which are expected to equal at least 120%
<br />of the annual debt service requirement.
<br />
<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
<br />resulted in a decrease of total debt service payments of $3,243,691 and an economic gain of
<br />$2,117,710. Principal and interest is payable in 20 annual installments of $1,205,491 to $1,421,544 from
<br />August 2016 through February 2035 with total principal and interest remaining of $25,558,981. The bonds
<br />are payable out of net revenues of the water utility fund which are expected to equal at least 120% of the
<br />annual debt service requirement.
<br />
<br />Water Revenue Bonds Series 2017 – In February, 2017, Redwood City Public Financing Authority issued
<br />$6,300,000 of bonds to refund the outstanding Water Revenue Bonds Series 2007A. The refunding
<br />resulted in a decrease of total debt service payments of $8,191,968 and an economic gain of
<br />$1,169,839. Principal and interest is payable in 18 annual installments of 493,588 to $496,800 from
<br />February 2018 through February 2035 with total principal and interest remaining of $8,877,694. The
<br />bonds are payable out of net revenues of the water utility fund which are expected to equal at least 120%
<br />of the annual debt service requirement.
<br />
<br />Pledges of Future Revenues – The pledge of future water utility fund revenues ends upon repayment of
<br />the $69.5 million in remaining debt service on the bonds which is scheduled to occur in fiscal year 2035‐
<br />36. For fiscal year 2016‐17, water utility fund operating revenues amounted to $36,744,157 and operating
<br />expenses excluding depreciation and amortizations amounted to $31,415,115. Net revenues available for
<br />debt service amounted to $5,329,042 which represented a coverage ratio of 1.34 over the $3,974,194 in
<br />debt service.
<br />
<br />60
<br />6.1.E. - Page 83
|