AgdaPkt 2002-01-14 - Laserfiche WebLink

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7, REDEVELOPMENT AGENCY OF TI-W~ CITY OF REDWOOD CITY Notes to Component Unit Financial Statements I NOTE 5 - LOW AND MODERATE INCOME HOUSING SET ASIDE The Agency is required to set aside a portion of the property tax increments it receives to increase and improve the City's supply of low and moderate income housing. The amount set aside must equal twenty percent of each year's property tax increments for the Original and First Amendment Area and approxU'nately forty-two percent of the net tax increment for the Second Amendment Area. The total set aside for all areas is approximately twenty-five percent of the property tax increment. INOT 6-INT U ' SAC ONS I A. Operating Transfers During the year ended June 30, 2001 the Redevelopment Special Revenue Fund transferred $1,105,841 and the Low and Moderate Income Housing Special Revenue Fund transferred $276,460 to the Redevelopment Debt Service Fund for debt service requirements on the 1997 Tax Allocation Refiaading Bonds. Advance from the City of Redwood City During the year ended June 30, 1993 the City of Redwood City Parlcing Enterprise Fund advanced $434,203 to the Agency to fund the Agency's Education Kevenue Augmentation Fund payment for fiscal year 1992-93. As of the year ended June 30, 2001, the Agency has repaid the remaining balance. A. 199 7 Tax Allocation Refunding Bonds The Agency issued $15,430,000 of 1997 Tax Allocation Refunding Bonds m July 1997 to advance refund the outstanding balance of the 1991 Redwood City Public Financing Authority Bonds - Series B. The proceeds of the 1997 Refunding Bonds, along with Refunded Public Financing Authority Bonds reserve fund monies held by the Trustee were used to purchase U.S. government securities wtxich were deposited m an irrevocable trust with an escrow agent to provide for all future debt service payments on the Refunded Bonds. As a result, the Refunded Bonds were considered to be defeased and the liability for those obligations was removed from the City's financial statements. At June 30, 2001 the Refunded Public Financing Authority Bonds had a remaining balance outstanding of $12,910,000. The refunding produced a net reduction in debt service of $759,000 over the next 14 years. The economic gain (the difference between the present value of the debt service payments of the refunded and refunding debt) is $590,000 or 4.23% of the reft.reded principal. The 1997 Tax Allocation Refunding Bonds are due in annual installments of $417,805 to $1,525,880 through July l, 2011, payable from the Redevelopment Agency Tax Increment. Annual debt service requirements for the 1997 Refunding Bonds are shown below: