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6.C. - Page 94 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 7 — BUSINESS -TYPE ACTIVITIES LONG-TERM DEBT
<br />A. Description
<br />Revenue Bonds:
<br />Port of Redwood City 2012 Revenue Bonds — In June 2012, bonds were issued in the amount of
<br />$10,000,000 to finance construction of the Port's Wharf 1 & 2 Redevelopment Project. The bonds are due in
<br />annual installments of $742,294 through 2032, with total principal and interest remaining of $8,907,526. The
<br />bonds are payable out of net revenues of the Port, which are expected to equal at least 120% of the annual
<br />debt service requirement.
<br />Port of Redwood City 2015 Revenue Bonds — In June 2015, bonds were issued in the amount of
<br />$6,940,000 to (a) refund the 1999 Bonds, (b) purchase the 2016 Reserve Fund Policy in lieu of cash funding
<br />a reserve fund for the 2016 Bonds, and (c) pay a portion of the costs of issuance of the 2016 Bonds. The
<br />bonds are due in annual installments of $561,600 to $611,000 through 2030, with total principal and interest
<br />remaining of $6,033,719. The bonds are payable out of net revenues of the Port, which are expected to equal
<br />at least 120% of the annual debt service requirement.
<br />Water Revenue Bonds Series 2013 — In June 2013, Redwood City Public Financing Authority issued
<br />$26,870,000 of bonds to refund the remaining Water Revenue Bonds Series 2005A. The refunding resulted
<br />in a decrease of total debt service payments of $2,386,569 and an economic gain of $1,231,113. Principal
<br />and interest is payable in 21 annual installments of $2,058,000 to $2,063,000 from August 2013 through
<br />February 2034, with total principal and interest remaining of $28,851,300. 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 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 $21,301,802 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 $7,403,319. 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 payable solely from the Net Revenue of the Water Utility Fund. The bond covenants
<br />contain events of default that require the revenue of the City to be applied by the Trustee as specified in the
<br />terms of the agreement if any of the following conditions occur: default on debt service payments; the failure
<br />of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing
<br />by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were
<br />no such events occurred during the fiscal year ending June 30, 2020.
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