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6.G. - PaZff Reed Of $i7 <br />City <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2018 <br />NOTE 5 - INVESTMENT IN SILICON VALLEY CLEAN WATER AUTHORITY (CONTINUED) <br />Cumulative Agency Balances: <br />Bel mont $ 24,060,518 <br />San Carlos 6,145,323 <br />Redwood City 37,275,076 <br />West Bay Sanitation District 12,184,942 <br />Total Net Position $ 79,665,859 <br />NOTE 6 - GOVERNMENTAL ACTIVITIES LONG-TERM DEBT <br />A. Description <br />Redwood City has no outstanding general obligation bonds. The following is the only long-term <br />obligation of the City. <br />2013 Public Financing Authority Refunding lease — In May 2013, the City entered into a lease agreement <br />with BBVA Compass Bank in the amount of $3,360,000 to refund the 2003 Public Financing Authority <br />Bonds. Net proceeds of $3,292,748 plus the 2003 Public Financing Authority Bond Reserve were utilized <br />for the purpose of establishing an irrevocable escrow to refund $5,880,000 of the City's 2003 Public <br />Financing Authority Bonds. Principal is due in annual installments of $347,486 to $687,180, with total <br />principal and interest remaining on the lease in the amount of $2,450,768 through July 15, 2018. <br />Payments are made from the Public Financing Authority Refunding Lease Debt Service fund out of lease <br />payment revenue received from the general fund, requiring less than 10% of net revenues. The <br />refunding resulted in a decrease in total debt service payments of $347,302 and an economic gain of <br />$270,485. <br />B. Changes in Long -Term Obligations <br />As of June 30, 2018, the City had the following long-term obligations outstanding: <br />At year-end, $1,063,796 of internal service fund compensated absences is included in the above <br />amounts. For the governmental activities, compensated absences are generally liquidated by the general <br />fund. <br />61 267 <br />Beginning <br />Ending <br />Due Within <br />Interest Rate <br />Balance <br />Additions Retirements <br />Balance <br />One year <br />Governmental Activities: % <br />Revenue Bonds <br />2013 PFA Refunding Lease 1.51 <br />$ 1,034,666 <br />$ $ 687,180 <br />$ 347,486 <br />$ 347,486 <br />Total Bonds and Loans <br />1,034,666 <br />687,180 <br />347,486 <br />347,486 <br />Accrued Sick Leave and Vacation <br />11,556,444 <br />896,752 432,796 <br />12,020,400 <br />444,477 <br />Total Governmental Activities Long -Term Debt <br />$12,591,110 <br />$ 896,752 $ 1,119,976 <br />$12,367,886 <br />$ 791,963 <br />At year-end, $1,063,796 of internal service fund compensated absences is included in the above <br />amounts. For the governmental activities, compensated absences are generally liquidated by the general <br />fund. <br />61 267 <br />