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NOTE 16 - CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS As of June 30, 2005, the City had the following commitments (which were encumbered): $4,198,932 for the Redwood Shores/101 interchange project, $5,191,031 for the underground parking garage/cinema project, $4,438,575 for the courthouse façade renovation project, $1,202,533 for the recycled water system project, and $2,200,000 for the water conservation program. NOTE 17 - SOUTH BA YSIDE WASTE MANAGEMENT AUTHORITY Redwood City is a member of the South Bayside Waste Management Authority (SBWMA), a joint powers authority established to purchase the solid waste transfer station located in San Carlos, California from Browning-Ferris Industries, now Allied Waste Systems (Allied), and then lease the transfer station back to Allied. Currently there are 12 public entities that are members of this organization. Each of these members also, by individual and separate legislative action, has entered into a franchise agreement with Allied for solid waste collection within their respective jurisdictions. The SBWMA issued $20 million in bonds in 1999 to provide funds for the purchase of the transfer station. The lease payments received from Allied for the use of the transfer station provide funds for the SBWMA to pay the principal and interest on the outstanding bonds. The debt issued by the SBWMA is not an obligation of any of the member entities. Allied in turn includes the lease payments to the SBWMA as an eligible cost to be recovered from solid waste collection customers under the tenns of their franchise agreements. The SBWMA also serves as a regional forum for member entities to collectively pursue other solid waste management matters such as rate setting, solid waste reduction, and meeting recycling goals as required by state law. Audited financial statements are available from the SBWMA, c/o the City of San Carlos, 600 Elm Street, San Carlos, CA 94070. The following is SBWMA's condensed unaudited financial results for the year- ended June 30, 2005. Total assets Total liabilities Total equity $ 31,569,633 18,985,589 $ 12,584,044 NOTE 18 - RELATED PARTY TRANSACTIONS In June 2000, the City's Redevelopment Agency authorized a First Time Homebuyer Program targeted to City employees and school teachers from the Redwood City Elementary School District. Under the program, the Agency offers first time homebuyers financial assistance in the purchase of a home within the City of Redwood City. These loans bear no interest and are secured by third deeds of trust on the property. No payments are due until five years after the date of purchase. This loan program is extended to City employees who meet the criteria of the program. As of June 30, 2005, no employees had loans due to the City. In August 2003, the City made a housing assistance loan to the City Attorney to acquire real property in compliance with the employment agreement for $250,000 repayable in 30 years with an interest rate of 5.00% per annum on the unpaid loan balance. Interest of 3.75% per annum shall be deferred (non- compounded) and payable on the earlier of: (1) the transfer of the fee title to the property in whole or in part by the sale or otherwise; (2) within 12 months of the tennination of his employment for any reason with the City; (3) within six months after the property ceases to be his principal residence; or (4) 30 years after the recordation of the deed of trust. As of June 30, 2005, the outstanding balance of this loan receivable was $217,694. 58