EXISTING POLICY
Action Statement 7.1D.1g of the Fiscal Sun-Element of the General Plan states that staff shall "prepare and provide the City Council with periodic summary financial reports by fund, comparing actual revenues and expenditures to budgeted amounts." This report is in accordance with this action statement.
In addition, the City Charter Section 1318 requires that "At the end of each fiscal year, a final audit and report shall be submitted by [a Certified Public Accountant] to the City Council." The Agency’s Basic Financial Statements are in accordance with this section.
DISCUSSION
BUDGETARY YEAR-END FINANCIAL REPORT
Staff has reviewed the Agency’s financial results and hereby provides an analysis of the changes between last May’s projected revenues and expenditures and the actual year-end results.
Revenues
The Agency’s revenues for the fiscal year ended June 30, 2002 were as follows:
The Agency’s property taxes consist of tax increment revenues generated from the project area (the downtown area). Due to the passage of Proposition 13, the Agency’s tax increment revenues were significantly reduced. In addition, since that time, the State has enacted several laws that placed further restrictions on redevelopment agencies. Tax increment revenues were higher this fiscal year than what was estimated in May and they were higher than amounts collected last fiscal year. Staff has been informed that this higher revenue is due to an over collection by the County of Santa Clara on the owners of the Town Center Mall, which will be adjusted during the current fiscal year.
Rents and concessions are amounts paid to the Agency by the City pursuant to a lease agreement for use of a two-level parking structure at the Town Center Mall.
Interest income is generated from monies in trust with fiscal agents, which are reserved for debt service payments. This revenue source was lower due to the lower interest rates and the general condition of the stock market.
The transfers in consisted of a loan from the City designated for the Downtown Public Improvement Project.
Expenditures
The Agency’s expenditures for the fiscal year ended June 30, 2002 were as follows:
The Agency’s activities consist of repayment of long-term debt, capital projects, general redevelopment operations, and repayment of advances made to the Agency by the City General Fund.
The Agency’s bonded debt consists of two debt issues: the 1992 Central Core Redevelopment Project Tax Allocation Bonds and the 1998 Parking Facility Certificates of Participation. At June 30, 2002 the 1992 Tax Allocation Bonds had a balance of $7,625,000 with annual debt service payments at approximately $665,000 per year. The 1998 Certificates of Participation had a balance of $15,915,000 with annual debt service payments at approximately $1.2 million per year.
Projects appropriated for the Agency are long-term in nature and require several years for completion. At the end of fiscal year 2001/2002, the Agency’s projects that were not completed were as follows: the Town Center Parking Structure Maintenance, which had unexpended appropriations of $602,056; the Redevelopment Plan Project Area Economic Analysis, which had unexpended appropriations of $93,493; and the Downtown Public Improvements, which had unexpended appropriations of $1,499,710. As a result, a total of $2,195,549 was carried over to the next fiscal year.
The Agency’s operations are accounted for in the City’s Economic Prosperity program. Expenditures for this program were within budgeted amounts.
The Agency is also indebted to the City for advances made for improvements and operations under the terms of the first repayment agreement signed in 1977. At June 30, 2002, the Agency’s debt to the City was $42,511,398. Payments are made to the City as tax increment revenues become available after the payments of bonded indebtedness.
Fiscal Impact
The fiscal impact of the Agency’s results of operations is discussed in the body of the report.
PUBLIC CONTACT
Public contact was made through posting of the Agency Board’s agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page and the availability of the report in the Library and City Clerk’s office.
RECOMMENDATION
Staff recommends that the Agency Board receive and file the Basic Financial Statements of the Redevelopment Agency of the City of Sunnyvale.
Prepared by:
Nasi Raissian
Finance Manager, Accounting
Reviewed by:
Mary Bradley
Treasurer
Approved by:
Robert S. LaSala
Executive Director