The Board of Directors of the Sunnyvale Financing Authority (Authority) is required to hold an annual meeting. This report summarizes the financial activities of the Authority for the fiscal year ended June 30, 2002.

The Authority was created on September 29, 1992, by the Joint Exercise of Powers Agreement between the City of Sunnyvale and the Redevelopment Agency of the City of Sunnyvale. It was established to acquire by purchase, lease, contribution, eminent domain or otherwise, real or personal property, and to plan for, develop, contract for, own, acquire, construct, finance, operate, and maintain any systems, plants, buildings, works and other facilities for the purposes of the City.

The Authority is administered by a Board of Directors consisting of seven persons, each serving in his or her individual capacity as a Director of the Authority. The sitting members of the City Council constitute the Directors of the Authority until such time as they cease to be members of the City Council.

Additionally, the Authority has four officers as follows:

Chairperson - Mayor of the City
Vice-Chairperson - Vice-Mayor of the City
Executive Director - City Manager
Treasurer - Director of Finance

The City Attorney shall serve as the General Counsel to the Authority and the City Clerk shall serve as Secretary. The Board of the Authority is required to hold at least one regular meeting each year.

At June 30, 2002, the Authority had the following outstanding bonds:

Issue Date: December 11, 2001

Description and Purpose: Water and Wastewater Revenue Bonds, Series 2001 issued to refinance the 1992 Utilities Revenue Bonds, Series A and to finance improvements to the City’s wastewater facilities.

Original Issue Amount: $32,115,000

Amount Outstanding as of June 30, 2002: $32,115,000 (Par Value)

Issue Date: April 5, 2001

Description and Purpose: 2001 Government Center Variable Rate Demand Certificates of Participation issued to finance a portion of the cost of acquiring real property for possible future construction of a new government center.

Original Issue Amount: $18,710,000

Amount Outstanding as of June 30, 2002: $18,350,000 (Par Value)

Issue Date: January 5, 1993

Original Issue Amount: $24,160,000

Amount Outstanding as of June 30, 2002: $18,975,000 (Par Value)

This debt was refinanced with the Solid Waste Revenue Refunding Bonds, Series 2003, which was issued on February 13, 2003 in the amount of $20,575,000. This refinance is not reflected on the attached report since it was issued after the Authority’s fiscal year ended June 30, 2002.

The Authority’s financial transactions and financial statements were audited by the City’s independent auditors, Caporicci & Larson, CPAs, and have received an unqualified opinion. Attachment A includes a copy of the Authority’s Basic Financial Statements and Independent Auditors’ Report. Because of the significance of the Authority’s operational and financial relationship with the City, the Authority is treated as a component unit of the City for financial reporting purposes.

Public Contact was made through posting of the Council 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.

Staff recommends that the Board accept the Sunnyvale Financing Authority’s attached Basic Financial Statements and Independent Auditors’ Report for the year ended June 30, 2002.