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6.1 B
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<br /> NOTE 6— GOVERNMENTAL ACTIVITIES LONG-TERM DEBT
<br /> A. Description
<br /> Redwood City has no outstanding general obligation bonds. The following is the list of long-term
<br /> obligations of the City.
<br /> Revenue Bonds:
<br /> 1998 Lease Revenue Refunding Bonds - In luly 1998, the City issued $12,160,000 of bonds to refund
<br /> $10,995,000 of the 1991 Public Financing Authority bonds. Principal is due in annual installments of I�
<br /> $695,000 to $1,670,000, with total principal and interest remaining on the bonds in the amount of I,
<br /> $2,917,625 through July 15, 2011. Bonds are payable out of the 1998 Lease Revenue Refunding Bonds
<br /> debt service fund out of lease payment revenue received from the general fund, and annual principal
<br /> and interest payments are expected to require less than 10 percent of net revenues. ,
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<br /> 1998 City Hall Lease Revenue Certificates of Participation - In October 1998, the City issued '
<br /> $11,700,000 of variable rate demand certificates to provide permanent funding for the new City Hall
<br /> project that was completed in August 1997. Principal and interest payments were made out of the 1998
<br /> City Hall Lease Revenue Certificates of Participation debt service fund from transfers in from the general
<br /> fund. All the outstanding certificates of $8,070,000 were redeemed on November 2, 2009. Accordingly,
<br /> all the certificates were fully paid in 2009/10. �
<br /> 2003 Public Financing Authority Bonds — In December 2003, the City issued $11,475,000 of bonds to j
<br /> refund $6,725,000 of the 1991 Public Finance Authority bonds and to provide $4,390,000 for new
<br /> projects. Principal is due in annual installments of $670,000 to $940,000, with total principal and
<br /> interest remaining on the bonds in the amount of $8,422,920 through July 15, 2018, payable out of the !
<br /> Public Financing Authority Bonds debt service fund out of lease payment revenue received from the
<br /> general fund, requiring less than 10 percent of net revenues. The refunding resulted in an increase in
<br /> total debt service payments of $441,654 and an economic gain of $415,987.
<br /> Tax Increment Bonds:
<br /> 1997 Tax Allocation Refunding Bonds issued in July 1997 by the Redwood City Redevelopment Agency
<br /> to prepay a loan received by the Agency from the Redwood City Public Financing Authority. Original �
<br /> amount of $15,430,000 is due in annual installments of $417,805 to $1,525,880. The bonds are payable
<br /> solely from property tax increment generated by the redevelopment agency fund and the low and I
<br /> moderate income housing fund which is expected to produce 135% of the debt service requirements.
<br /> The outstanding principal of $2,865,000 was redeemed on December 1, 2009 and accordingly the bonds
<br /> were fully paid in 2009/10.
<br /> 2003 Tax Allocation Bonds — In October 2003, the Redwood City Redevelopment Agency issued
<br /> $33,997,448 in bonds to finance various downtown improvements. These bonds consist of current
<br /> coupon bonds and capital appreciation bonds. The current coupon bonds pay interest-only through
<br /> January 15, 2010. Principal on the current coupon bonds is paid in annual installments of
<br /> $1,225,000 to $2,850,000 from July 15, 2010 to July 15, 2015. Payments reflecting interest and principal
<br /> of the capital appreciation bonds are due in annual installments of $510,000 to $3,505,000 from July 15,
<br /> 2015 through July 15, 2032. Total principal and interest remaining on the bonds is $76,284,613.
<br /> Payments are made from property tax increment generated by the redevelopment agency fund which is
<br /> expected to produce 135% of the debt service requirements.
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