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City of Redwood City <br />Notes to the Basic Financial Statements (Continued) <br />For the Year Ended June 30, 2025 <br /> <br /> <br />99 <br />Note 8 – Long-Term Liabilities (Continued) <br /> <br />C. Business-Type Activities (Continued) <br /> <br />Pledges of Future Revenues <br /> <br />The pledge of future Port of Redwood City fund revenues ends upon repayment of the $9.6 million in remaining <br />debt service on the bonds which is scheduled to occur in fiscal year 2031-32. For fiscal year 2025, the Port of <br />Redwood City fund’s operating revenues and investment income amounted to $13,029,420 and operating expenses <br />excluding depreciation, amortization, and subvention to the City amounted to $8,701,248. Net revenues available <br />for debt service amounted to $4,328,172 which represented a coverage ratio of 3.20 over the $1,351,681 in debt <br />service. <br /> <br />The pledge of future water utility fund revenues ends upon repayment of the $35.9 million in remaining debt service <br />on the bonds which is scheduled to occur in fiscal year 2034-35. For fiscal year 2025, the Water Utility Fund <br />operating revenues amounted to $52,114,552 and operating expenses excluding depreciation and amortization <br />amounted to $44,623,739. Net revenues available for debt service amounted to $7,490,813 which represented a <br />coverage ratio of 2.22 over the $3,380,888 in debt service. <br /> <br />The Revenue Bonds are payable solely from the Net Revenue of the Water Utility Fund. The bond covenants contain <br />events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the <br />agreement if any of the following conditions occur: default on debt service payments; the failure of the City to <br />observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if <br />any court or competent jurisdiction shall assume custody or control of the City. There were no such events occurred <br />during the fiscal year ending June 30, 2025. <br /> <br />D. Fiduciary Fund Private Purpose Trust Funds - Successor Agency <br /> <br />A summary of changes in the long-term liabilities of the fiduciary fund financial statements for the year ended <br />June 30, 2025, is as follows: <br /> <br />Balance Debt Debt Balance Due within Due in More <br />July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year <br />Successor Agency: <br />Bonds payable: <br />2003 Tax Allocation Bonds 7,827,060$ -$ (1,090,125)$ 6,736,935$ 1,025,984$ 5,710,951$ <br />Accreted interest on capital appreciation bonds 17,501,554 - (1,128,538) 16,373,016 1,321,414 15,051,602 <br /> plus: unamortized bond premium 276,940 - (30,772) 246,168 - 246,168 <br />Total bonds payable 25,605,554 - (2,249,435) 23,356,119 2,347,398 21,008,721 <br />Total 25,605,554$ -$ (2,249,435)$ 23,356,119$ 2,347,398$ 21,008,721$ <br />Classification <br /> <br /> <br />Tax Allocation Bonds, Series 2003 <br /> <br />In October 2003, the former Redevelopment Agency issued $33,997,448 in bonds to finance various downtown <br />improvements. These bonds consist of current coupon bonds and capital appreciation bonds. The current coupon <br />bonds pay interest-only through January 15, 2010. Principal on the current coupon bonds is paid in annual <br />installments of $1,225,000 to $3,045,000 from July 15, 2010 to July 15, 2015. Payments reflecting interest and <br />principal on the capital appreciation bonds are due in annual installments of $1,615,139 to $2,826,082 from <br />July 15, 2016 through July 15, 2032. Total principal and interest remaining on the bonds is $23,109,951. Payments <br />are made from property tax increment generated by the former redevelopment agency fund. <br />7.C. - Page 131 of 269 <br />150