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6.A. - Page 93 of 191
<br />CITY OF REDWOOD CITY
<br />NOTES TO THE BASIC FINANCIAL STATEMENTS
<br />For the Fiscal Year Ended June 30, 2019
<br />NOTE 8 — DEBT WITHOUT CITY COMMITMENT (CONTINUED)
<br />B. Community Facilities District (Mello -Roos) Bonds
<br />On October 17, 2000, the Community Facilities District (CFD) issued $21,000,000 of bonds on behalf of the
<br />developer of the Pacific Shores Project to fund various transportation system improvements within the City's
<br />right-of-way that were required as a condition of the development.
<br />In July 2012 the CFD issued $5,555,000 Community Facilities District No. 2000-1 Pacific Shores Special
<br />Tax Refunding Bonds, Series 2012 to refund $8,655,000 of the Series 2000A bonds. The refunding reduced
<br />annual debt service payments by approximately 25% or $52,000, and resulted in an economic gain of
<br />$398,000, which equates to 7.61% of the refunding bonds. In September 2016, the final payment was made
<br />and this obligation was paid in full.
<br />On January 17, 2001, the Shores Transportation Improvement District issued $5,045,000 of Phase I CFD
<br />bonds, and on September 3, 2003 the District issued $7,505,000 of Phase II CFD bonds. The proceeds of
<br />these bonds were used to fund various transportation projects that are required under development
<br />agreements with commercial property owners in the Redwood Shores area of the City.
<br />In December 2012 the Shores Transportation District issued $10,275,000 Redwood Shores Community
<br />Facilities District No. 99-1 Special Tax Refunding Bonds, Series 2012B to refund $3,640,000 of the
<br />outstanding Series 2001A Bonds and $6,675,000 of the outstanding Series 2003A Bonds. The refunding
<br />reduced annual debt service payments by approximately 16% or $140,000, and resulted in an economic gain
<br />of $1.7 million, which equates to 16.62% of the refunding bonds.
<br />These bonds are solely obligations of the property owners in this district and are not obligations of the City,
<br />nor has any political subdivision of the State of California pledged its full faith and credit for the payment of
<br />these bonds. The City's only responsibilities with respect to any delinquent assessment installments are
<br />solely advancing funds from the reserve fund (established with bond proceeds) to the redemption fund, to the
<br />extent that such funds are available, and instituting foreclosure proceedings.
<br />The City is not required to advance available funds of the City for payment of principal or interest or to
<br />purchase land at a delinquent foreclosure assessment sale. As of June 30, 2019, the outstanding principal
<br />amount was $7,805,000.
<br />On April 5, 2011, the Community Facilities District (CFD) issued $5,760,000 of bonds on behalf of the
<br />developer of the One Marina Project to fund various transportation system improvements within the City's
<br />right-of-way that were required as a condition of the development.
<br />These bonds are solely obligations of the property owners in this district and are not obligations of the City,
<br />nor has any political subdivision of the State of California pledged its full faith and credit for the payment of
<br />these bonds. The City's only responsibilities with respect to any delinquent assessment installments are
<br />solely advancing funds from the reserve fund (established with bond proceeds) to the redemption fund, to the
<br />extent that such funds are available, and instituting foreclosure proceedings.
<br />In June 2016, Community Facilities District No. 2010-1 issued $4,350,000 Community Facilities District No.
<br />2010-1 (One Marina) 2016 Special Tax Refunding Bonds to refund the outstanding 2011 Bonds.
<br />The City is not required to advance available funds of the City for payment of principal or interest or to
<br />purchase land at a delinquent foreclosure assessment sale. As of June 30, 2019, the outstanding principal
<br />amount was $4,100,000.
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