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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 8 – Long-Term Liabilities (Continued)
<br />
<br />B. Governmental Activities
<br />
<br />A summary of changes in the long-term liabilities of the governmental activities for the year ended June 30, 2025,
<br />is as follows:
<br />
<br />Balance Debt Debt Balance Due within Due in More
<br />July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year
<br />Bonds payable:
<br />Lease Revenue Bonds, Series 2021 55,680,000$ -$ (1,250,000)$ 54,430,000$ 1,300,000$ 53,130,000$
<br /> plus: unamortized bond premium 6,508,629 - (241,060) 6,267,569 - 6,267,569
<br />Total bonds payable 62,188,629 - (1,491,060) 60,697,569 1,300,000 59,397,569
<br />Subscription liability 385,625 1,147,551 (490,631) 1,042,545 495,953 546,592
<br />Total 62,574,254$ 1,147,551$ (1,981,691)$ 61,740,114$ 1,795,953$ 59,944,161$
<br />Classification
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<br />2021 Lease Revenue Refunding Bonds
<br />
<br />In June 2021, $56,885,000 Lease Revenue Bonds, Series 2021 (Veterans Memorial Building/Senior Center) are
<br />issued by the Redwood City Public Facilities and Infrastructure Authority (Authority), with a bond premium of
<br />$7,231,809. The Bonds are issued to (a) finance a portion of the cost of construction of a new activity and
<br />community center known as the Veterans Memorial Building/Senior Center, (b) fund capitalized interest with
<br />respect to the bonds through January 1, 2024, and (c) pay the cost of the issuance of the bonds. Principal and interest
<br />is payable in 28 annual installments of $1,803,372 to $3,092,250 from June 1, 2024 through June 1, 2051, with total
<br />principal and interest remaining of $80,336,900.
<br />
<br />The bonds are secured by a pledge of and lien on the Revenues, consisting primarily of lease payments. The City
<br />will lease the Project and the site thereof (collectively, the "Leased Property") from the Authority pursuant to a
<br />lease agreement, dated as of June 1, 2021 (the "Lease Agreement"), by and between the Authority and the City.
<br />Under the Lease Agreement, the City is required to make Lease Payments from legally available funds in amounts
<br />calculated to be sufficient to pay principal of and interest on the Bonds.
<br />
<br />The Bonds are special limited obligations of the Authority, payable solely from and secured solely by certain
<br />proceeds of the Bonds held in certain funds and accounts pursuant to the Indenture and the Revenues and other
<br />payments made or caused to be made by the City pursuant to the Lease Agreement. The City has covenanted in the
<br />Lease Agreement to take such actions as may be necessary to include all Lease Payments due thereunder in its
<br />annual general fund budgets and to make the necessary annual appropriations therefor.
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