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<br />Redevelopment Agency of the City of Redwood City
<br />Notes to Basic Financial Statements, Continued
<br />For the year ended June 30, 2005
<br />
<br />7. LONG-TERM DEBT
<br />
<br />Summary of changes in long-term debt for the year ended June 30, 2005 was as follow:
<br />
<br />Balance
<br />July 1, 2004
<br />
<br /> Amount Amount
<br /> Balance Due Within Due In More
<br /> Additions Retirements June 30,2005 One Year Than One Year
<br />$ $ (1,060,000) $ 8,940,000 $ 1,105,000 $ 7,835,000
<br /> 33,997,448 33,997,448
<br /> 1,157,427 1,895,111 1,895,111
<br /> (30,771) 861,598 30,771 830,827
<br /> (42,321) 338,568 42,321 296,247
<br />$ 1,157,427 $ (1,133,092) $ 46,032,725 $ 1,178,092 $ 44,854,633
<br />
<br />Total
<br />
<br />$ 10,000,000
<br />33,997,448
<br />737,684
<br />892,369
<br />380,889
<br />
<br />$ 45,270,706
<br />
<br />1997 Tax Allocation Refunding Bond
<br />Tax Allocation Bond, Series 2003A
<br />Accreted interest payable
<br />Unamortized premium
<br />Loans Payable
<br />
<br />A. 1997 Tax Allocation Refunding Bonds
<br />
<br />On June 15, 1997, the Agency issued $15,430,000 of 1997 Tax Allocation Refunding Bonds with a final
<br />maturity date of July 15, 2011. The purpose of the issuance is to provide funds to prepay a loan received by
<br />the Agency and defease $13,955,000 aggregate principal amount of the 1991 Local Agency Revenue Bonds,
<br />Series B (Prior Bonds), to fund a reserve account for the Bonds and to pay the costs of issuance incurred in
<br />connection with the issuance, sale and delivery of the Bonds. The purpose of the prior bonds was to finance
<br />improvements within the Agency's Redevelopment Project Area No.2. The 1997 Tax Allocation Refunding
<br />Bonds are due in annual installments of $417,805 to $1,525,880 through July 15, 2011, payable from the
<br />Redevelopment Agency Tax Increment. The bonds are secured by a first lien on the security interest in all
<br />of the tax revenue and all of the moneys deposited and held from time to time by the Trustee in the Special
<br />Revenue Fund and the Debt Service Fund, including interest account, the principal account, the reserve
<br />account and the redemption account established pursuant to the indenture. Interest rate ranges from 3.8%
<br />to 5.15%. Principal is due annually on each July 15 commencing in 1998. Interest is due semiannually on
<br />each January 15, and July 15, commencing January 15, 1998. At June 30, 2005 the Refunding Public
<br />Financing Authority Bonds had a remaining balance outstanding of $8,940,000. The refunded bonds (1991
<br />Series B Bonds) were completely paid off on July 15, 2001. The refunding produced a net reduction in debt
<br />service of $759,000 over the next 14 years. The economic gain (the difference between the present value of
<br />the debt service payments of the refunded and refunding debt) is $590,000 or 4.23% of the refunded
<br />principal.
<br />
<br />The annual debt service requirements are shown below:
<br />
<br />For the Fiscal Year
<br />Ended June 30, Principal Interest Total
<br />2006 $ 1,105,000 $ 415,056 $ 1,520,056
<br />2007 1,160,000 361,815 1,521,815
<br />2008 1,210,000 304,922 1,514,922
<br />2009 1,270,000 244,465 1,514,465
<br />2010 1,330,000 180,100 1,510,100
<br />2011-2013 2,865,000 149,130 3,014,130
<br /> $ 8,940,000 $ 1,655,488 $ 10,595,488
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