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<br />NOTE 6 - GOVERNMENTAL ACTIVITIES LONG-TERM DEBT
<br />
<br />A.
<br />
<br />Description
<br />
<br />Redwood City has no outstanding general obligation bonds. One improvement district has been formed
<br />within the City limits for specific improvements within the boundaries of the district. General
<br />Improvement District bonds (GID 1-64 reclamation and facilities bonds) are limited general obligations
<br />of Redwood City confined to the district boundary. The following is the list of long-term obligations of
<br />the City.
<br />
<br />Revenue Bonds:
<br />
<br />Public Financing Authority Bonds issued in August 1991 by the Redwood City Public Financing
<br />Authority, a Joint Powers Authority consisting of the City and the Redevelopment Agency, to
<br />prepay certain existing lease obligations of the City and to provide funds for the construction of a
<br />new police facility. The original amount of $26,715,000 (of which $11,280,683 was for the
<br />defeasement of the 1986 Revenue Bonds) is due in annual installments of $839,231 to $2,391,125
<br />through July 1, 2011 payable out of the Public Financing Authority Bonds debt service fund out
<br />of lease payment revenue received from the general fund. As discussed below a portion of the
<br />bonds were repaid in fiscal year 1998/99. These bonds were refunded and completely repaid in
<br />2003/04.
<br />
<br />1998 Lease Revenue Refunding Bonds - In July 1998, the City issued $12,160,000 of bonds to
<br />refund $10,995,000 of the 1991 Public Financing Authority bonds. Principal is due in annual
<br />installments of $695,000 to $1,670,000 through July 15, 2011 payable out of the 1998 Lease
<br />Revenue Refunding Bonds debt service fund out of lease payment revenue received from the
<br />general fund.
<br />
<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
<br />Hall project that was completed in August 1997. Principal payments will be made over a 23-year
<br />period commencing July 1, 2002 out of the 1998 City Hall Lease Revenue Certificates of
<br />Participation debt service fund from transfers in from the general fund. The variable rate is
<br />calculated weekly and fluctuates according to market conditions, but is capped at 12%. The
<br />average monthly interest paid in fiscal year 2003/04 was $9,292 and the interest rate in effect at
<br />June 30, 2004 was 1.10%.
<br />
<br />2003 Public Financing Authority Bonds - In December 2003, the City issued $11,475,000 of
<br />bonds to refund $6,725,000 of the 1991 Public Finance Authority bonds and to provide
<br />$4,390,000 for new projects. Principal is due in annual installments of $670,000 to $940,000
<br />through July 15, 2018 payable out of the Public Financing Authority Bonds debt service fund out
<br />of lease payment revenue received from the general fund.
<br />
<br />General Improvement District Bonds:
<br />
<br />General Improvement District No. 1-64 Facilities Series Bonds are due in annual installments of
<br />$26,500 to $1,350,000 through July 1, 2008; original amount $18,515,000 issued in 1966 for
<br />utility lines and infrastructure improvements in the Redwood Shores area. Debt service payments
<br />are made from the GID 1-64 Facilities Bonds debt service fund out of special assessment revenue.
<br />
<br />General Improvement District No. 1-64 Land Reclamation Series Bonds are due in annual
<br />installments of $300,000 to $510,000 through July 1,2008; original amount $9,510,000 issued in
<br />1966 for land reclamation in the Redwood Shores area. Debt service payments are made from the
<br />GID 1-64 Reclamation Bonds debt service fund out of special assessment revenue.
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