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6.A. - Page 91 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 7 — BUSINESS -TYPE ACTIVITIES LONG-TERM DEBT (CONTINUED)
<br />A. Description, Continued
<br />Water Revenue Bonds Series 2015 — In May 2015, Redwood City Public Financing Authority issued
<br />$20,235,000 of bonds to refund the remaining Water Revenue Bonds Series 2006A. The refunding resulted
<br />in a decrease of total debt service payments of $3,243,691 and an economic gain of $2,117,710. Principal
<br />and interest is payable in 20 annual installments of $1,416,844 to $1,421,544 from August 2016 through
<br />February 2035 with total principal and interest remaining of $22,722,645 The bonds are payable out of net
<br />revenues of the water utility fund which are expected to equal at least 120% of the annual debt service
<br />requirement.
<br />Water Revenue Bonds Series 2017 — In February, 2017, Redwood City Public Financing Authority issued
<br />$6,300,000 of bonds to refund the outstanding Water Revenue Bonds Series 2007A. The refunding resulted
<br />in a decrease of total debt service payments of $8,191,968 and an economic gain of $1,169,839. Principal
<br />and interest is payable in 18 annual installments of $489,069 to $497,669 from February 2018 through
<br />February 2035 with total principal and interest remaining of $7,895,037. The bonds are payable out of net
<br />revenues of the water utility fund which are expected to equal at least 120% of the annual debt service
<br />requirement.
<br />The Revenue Bonds are general obligations of the City, payable solely from the Net Revenue of the Water
<br />Utility Fund. The bond covenants contain events of default that require the revenue of the City to be applied
<br />by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on
<br />debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement
<br />terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume
<br />custody or control of the City. There were no such events occurred during the fiscal year ending June 30,
<br />2019.
<br />Pledges of Future Revenues — The pledge of future water utility fund revenues ends upon repayment of the
<br />$69.5 million in remaining debt service on the bonds which is scheduled to occur in fiscal year 2035-36. For
<br />fiscal year 2018-19, water utility fund operating revenues amounted to $45,001,193 and operating expenses
<br />excluding depreciation and amortizations amounted to $32,725,719. Net revenues available for debt service
<br />amounted to $13,982,826 which represented a coverage ratio of 3.53 over the $3,965,763 in debt service.
<br />The pledge of future Port of Redwood City fund revenues ends upon repayment of the $19 million in
<br />remaining debt service on the bonds which is scheduled to occur in fiscal year 2031-32. Port of Redwood
<br />City fund operating revenues amounted to $9,335,548 and operating expenses excluding depreciation,
<br />amortizations, and subvention to the City amounted to $5,252,241. Net revenues available for debt service
<br />amounted to $4,083,307 which represented a coverage ratio of 2.99 over the $1,364,530 in debt service.
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