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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 30,2006
<br />
<br />7. LONG-TERM DEBT
<br />
<br />Summary of changes in long-term debt for the year ended June 30, 2006 was as follow:
<br />
<br /> Amount Amount
<br /> Balance Balance Due Within Due In More
<br /> July 1, 2005 Additions Retirements June 30, 2006 One Year Than One Year
<br />1997 Tax Allocation Refunding Bond $ 8,940,000 $ $ (1,105,000) $ 7,835,000 $ 1,160,000 $ 6,675,000
<br />Tax Allocation Bond, Series 2003A 33,997,448 33,997,448 33,997,448
<br />Accreted interest payable 1,895,111 1,221,520 3,116,631 3,116,631
<br />Unamortized premium 861,598 (30,771) 830,827 30,771 800,056
<br />Loans Payable 338,568 (42,321) 296,247 42,321 253,926
<br /> Total $ 46,032,725 $ 1,221,520 $ (1,178,092) $ 46,076,153 $ 1,233,092 $ 44,843,061
<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, 2006 the Refunding Public
<br />Financing Authority Bonds had a remaining balance outstanding of $7,835,000. 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. At June 30, 2006 the 1997 Tax Allocation Refunding Bonds had a remaining balance outstanding
<br />of $7,835,000.
<br />
<br />The annual debt service requirements are shown below:
<br />For the Fiscal Year
<br />Ended June 30, Principal Interest Total
<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 1,395,000 111,278 1,506,278
<br />2012 1,470,000 37,853 1,507,853
<br /> $ 7,835,000 $ 1,240,433 $ 9,075,433
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