Comprehensive Annual Financial Report - City of Cerritos

City of Cerritos
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
9. LONG-TERM DEBT, Continued
Following is a summary of long-term debt for business-type activities for the fiscal year ended June 30,
2010:
Classification
Balance Balance Due within Due in more
July 1, 2009 Additions Deletions June 30, 2010 One Year than One Year
Compensated absences - Water Fund $ - $ 257,937 $ - $ 257,937 $ 64,484 $ 193,453
Total long-term liabilities $ - $ 257,937 $ - $ 257,937 $ 64,484 $ 193,453
A. Los Cerritos Redevelopment Project 1993 Revenue Bonds, Series B
In June, 1993, the Cerritos Public Financing Authority (the Authority) issued $17,525,000 in 1993 Revenue
Bonds, Series B. $15,967,767 of the $17,525,000 issue was loaned to repay prior City loans to the Agency,
$1,323,852 was used to fund a reserve fund for the loans to the Agency, and the remaining balance was used
to pay the cost of issuance of the bonds. Interest rates on the bonds vary from 4.00% to 8.00% with interest
payable semiannually on May 1 and November 1, and principal maturing annually on November 1.
The 1993 Los Cerritos Redevelopment Project Revenue Bonds, Series B, are payable solely from and secured
by tax increment revenues received by the Authority from the Agency. Annual principal and interest
payments on the bonds are expected to require less than 25% of net revenues. The total remaining principal
and interest to be paid on the bonds is $2,296,400. Principal and interest paid for the current year and total
net revenues were $1,853,600 and $7,706,348, respectively.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2010, including
interest, are as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 1,745,000 $ 104,200 $ 1,849,200
2012 430,000 17,200 447,200
TOTAL $ 2,175,000 $ 121,400 $ 2,296,400
B. Los Cerritos Redevelopment Project 2002 Tax Allocation Revenue Bonds, Series A
In June 1993, the Authority issued $27,555,000 in Revenue Bonds, Series A. In September 2002, the
Authority issued $31,550,000 of Tax Allocation Bonds to provide funds to refund the 1993 Revenue Bonds,
Series A. A portion of the proceeds from the Bonds issued in 2002 were placed in an escrow fund to provide
the debt service on the 1993 Revenue Bonds, Series A. The advance refunding met the requirements of an
in-substance defeasance and the bonds were removed from the Agency’s long-term debt.
The 2002 bonds are broken into two segments; the Term Bonds $27,940,000 and the Special Escrow Bonds
$3,610,000.
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