AgdaPkt 2014-01-13 Interview, Closed and Regular

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City of Redwood City 7.1. G. - Page 44 Management's Discussion and Analysis For the year ended June 30, 2013 Business -Type Activities The $5.7 million increase in Construction in Progress resulted primarily from water pump and tank projects, and the sewer rehabilitation project. Buildings and Improvements increased primarily due to completed improvements related to the recycled water program, and the water and sewer system replacement programs. Equipment increased primarily due to equipment purchased for the sewer utility. Long -Term Debt - Issues described in detail in Notes 6 and 7 to Financial Statements. Outstanding Debt (in Millions) Governmental Business -Type Activities Activities Total 2013 2012 2013 2012 2013 2012 Variance $ $ $ $ $ $ Revenue bonds 5.882 81.347 84.217 81.347 90.099 - 9.714% Refunding lease 3.360 3.360 100.000% Loans 1.758 1.789 1.758 1.789 - 1.733% Accrued sick leave and vacation 9.536 9.882 0.968 1.002 10.504 10.884 - 3.491% Total long term debt 12.896 15.764 84.073 87.008 96.969 102.772 - 5.646% SPECIAL ASSESSMENT DISTRICT DEBT Special assessment districts in different parts of the City have also issued debt to finance infrastructure and facilities construction in their respective districts. At June 30, 2013, a total of $21.59 million in special assessment district debt was outstanding, issued by three special assessment districts. This debt is secured only by special assessments on the real property in the district issuing the debt, and is not the City's responsibility, although the City does act as these Districts' agent in the collection and remittance of assessments. PRIVATE PURPOSE TRUST FUND DEBT On February 1, 2012, the Redevelopment Agency of the City of Redwood City was dissolved pursuant to California State law, and as of that date, the long -term debt associated with the former Redevelopment Agency was transferred to a private purpose trust fund for the Successor Agency. At June 30, 2013, the Successor Agency had tax allocation bonds outstanding in the amount of $43,430,359 including unamortized premium and accreted interest payable. ECONOMIC OUTLOOK AND NEXT YEARS BUDGET Redwood City, like many cities, relies heavily upon property taxes and sales taxes to finance general governmental activities with these two revenues accounting for 42% and 21% of general fund revenues respectively. In FY 2012 -13 the City experienced significant gains in these revenues with property taxes increasing 5% and sales taxes jumping 13 %. We see the increases in each of these revenues, both of 16