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6.C. - Page 92 of 196
<br />CITY OF REDWOOD CITY
<br />NOTES TO THE BASIC FINANCIAL STATEMENTS
<br />For the Fiscal Year Ended June 30, 2020
<br />NOTE 5 — INVESTMENT IN SILICON VALLEY CLEAN WATER AUTHORITY (CONTINUED)
<br />During the fiscal year ended June 30, 2020, the City contributed $11,999,292 toward the cost of operating
<br />and maintaining the facility and paid debt principal and interest of $10,885,435 that included the state
<br />revolving fund loan and the financing agreements to finance the construction and rehabilitation of the
<br />SVCW's wastewater system. The City also contributed $1,329,312 toward capital improvements and capital
<br />reserves.
<br />At June 30, 2020, the total obligation for the 2009, 2014, 2015, 2018 revenue bonds and 2019 Notes is
<br />$466,435,000. The City's direct obligation is $259,999,897. For the fiscal year 2020-21, the City is
<br />obligated to pay debt principal and interest payments totaling $9,427,893. The financing agreements for
<br />these bonds are secured by a pledge of the City's Sewer Enterprise Fund Net Revenue as defined under the
<br />financing agreements. For the fiscal year 2019-20, gross Sewer Fund revenues, including operating revenues
<br />and non-operating interest earnings, amounted to $43,304,907. The operating and maintenance costs,
<br />including operating expenses, transfers out for overhead and administrative cost but excluding interest, and
<br />depreciation or amortization amounted to $21,610,151. Net revenues available for debt services amounted to
<br />$21,694,756, which represented coverage of 1.99 times over the total of debt services of $10,885,435.
<br />In October 2015, SVCW issued the 2015 wastewater revenue bonds in the amount of $70.2 million.
<br />Pursuant to the financing agreement, the City's allocable share of the 2015 bonds is approximately 51.3%.
<br />Of the total bond proceeds, $8.5 million will be used to refund, on an advance basis, certain maturities of the
<br />2008 Bonds and approximately $49.8 million will be used to refund, on an advance crossover basis, certain
<br />maturities of the 2009 Bonds.
<br />In February 2018, SVCW issued $140,955,000 in Revenue Bonds. The Bonds were issued to finance the
<br />acquisition and construction of capital improvements to SVCW's wastewater system and pay costs of issuing
<br />the Bonds. Pursuant to the financing agreement, the City's allocable share of the 2018 bonds is
<br />approximately 58.32 %.
<br />Proceeds associated with the Refunded 2009 Bonds have been deposited into the "2009 Escrow Fund" until
<br />the crossover date of August 1, 2019, when all of the outstanding Refunded 2009 Bonds will be redeemed,
<br />without premium. Prior to the crossover date, the Refunded 2009 Bonds will continue to be secured by and
<br />payable from the revenues that were originally pledged for the payment of the 2009 Bonds.
<br />Audited financial statements are available from Silicon Valley Clean Water Authority, 1400 Radio Road,
<br />Redwood City, CA 94065.
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