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City of Redwood City
<br />Notes to the Basic Financial Statements (Continued)
<br />For the Year Ended June 30, 2025
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<br />Note 4 – Lease Receivable
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<br />A. Governmental Activities
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<br />The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and
<br />commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the
<br />underlying assets at various locations owned by the City. The terms of the arrangements range from 1 to 30 years.
<br />The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2025,
<br />the City recognized $134,587 in lease revenue and $41,886 in interest revenue. Also, the City has a deferred inflow
<br />of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2025,
<br />the balance of the deferred inflow of resources was $1,756,670.
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<br />A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:
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<br />Balance
<br />July 1, 2024, Balance Due within Due in More
<br />as restated Additions Deletions June 30, 2025 One Year Than One Year
<br />Leases receivable 1,101,161$ 823,877$ (102,428)$ 1,822,610$ 160,852$ 1,661,758$
<br />Classification
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<br />As of June 30, 2025, the required payments for these leases, including interest, are:
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<br />Year Ending
<br />June 30, Principal Interest Total
<br />2026 160,852$ 43,957$ 204,809$
<br />2027 76,536 42,499 119,035
<br />2028 80,753 41,498 122,251
<br />2029 85,141 40,434 125,575
<br />2030 93,421 39,192 132,613
<br />2031-2035 414,137 174,145 588,282
<br />2036-2040 329,298 126,793 456,091
<br />2041-2045 384,063 62,801 446,864
<br />2046-2049 198,409 12,421 210,830
<br />Total 1,822,610$ 583,740$ 2,406,350$
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<br />B. Business-Type Activities
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<br />The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and
<br />commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the
<br />underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 30 years.
<br />The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2025,
<br />the City recognized $1,046,040 in lease revenue and $438,564 in interest revenue. Also, the City has a deferred
<br />inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of
<br />June 30, 2025, the balance of the deferred inflow of resources was $10,932,756.
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<br />A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:
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<br />Balance Balance Due within Due in More
<br />July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year
<br />Leases receivable 13,006,794$ -$ (1,046,040)$ 11,960,754$ 1,083,244$ 10,877,510$
<br />Classification
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