IA SR 20160301 D - FY15-16 Midyear Financial ReportRANCHO PALOS VERDES
IMPROVEMENT AUTHORITY
AGENDA REPORT
MEETING DATE: March 1, 2016
AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration of the Fiscal Year 2015-16 Improvement Authority Midyear Financial
Report.
RECOMMENDED COUNCIL ACTION:
Receive and file the 2015-16 Improvement Authority Midyear Financial Report.
FISCAL IMPACT:
None
Amount Budgeted: $0
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Allan Kaufman, Senior Administrative Analyst
REVIEWED BY: Deborah Cullen, Director of Finance .
APPROVED BY: Doug Willmore, Chief Administrative Officer
BACKGROUND AND DISCUSSION:
On September 4, 1990, the City Council approved a Joint Powers Agreement between
the City and Redevelopment Agency (the Agency). The Agreement requires separate
accounting of repair and maintenance activities of the improvements constructed (i.e. de-
watering wells) within the Abalone Cove and Portuguese Bend landslide project areas.
Beginning in FY97-98 accounting for the activities of the Authority was separated from
the City and Agency. Since that time an operating budget has been adopted annually by
the Improvement Authority Commission.
The Improvement Authority is separated into two funds - the Abalone Cove Maintenance
Fund and the Portuguese Bend Maintenance Fund. In accordance with the
Reimbursement and Settlement Agreement (Horan Agreement), the repair and
maintenance costs associated with the Abalone Cove landslide improvements are
recorded in the Abalone Cove Maintenance Fund to be funded from interest earnings on
$1,000,000 of County bond proceeds received in 1991. The interest earnings are not
sufficient to fund repair and maintenance; therefore an annual subsidy transfer from the
City's General Fund is necessary. The Portuguese Bend Fund does not have a dedicated
revenue source, and must rely solely on an annual subsidy transfer from the City's
General Fund.
1
2,520
57,000 (113,200)
9,400
37,000 (71, 900)
1,392,695 11,920
Fund Summary
Fund
FY15-16 COMBINED SUMMARY OF FUNDS
Actu a l
Fund Balance
6/30/2015 Revenues Transfers In Expenditures Transfers Out
Portuguese Bend 333,189
Abalone Cove 1,059,506
GRAND TOTALS
94,000 (185,100)
Estimated
Fund Balance
6/30/2016
279,509
1,034,006
1,313,515
Portuguese Bend Fund
At this time, revenue, expenditures and operating transfers are not expected to materially
deviate from the budgeted amounts for FY15-16. The remaining fund balance will be
used to finance repair and maintenance activities in future periods. As noted above, the
only funding source for this maintenance fund is an annual General Fund subsidy.
Abalone Cove Fund
At this time, revenue, expenditures and operating transfers are not expected to materially
deviate from the budgeted amounts for FY15-16. The remaining fund balance will be
used to finance repair and maintenance activities in future periods. As noted above, the
interest revenue earned on the non -spendable $1,000,000 of County bond proceeds
noted above is insufficient to provide for maintenance; and the primary funding source is
an annual General Fund subsidy.
CONCLUSION
At this time, revenue, expenditures and operating transfers for the Portuguese and
Abalone Cove funds are not expected to materially deviate from the budgeted amounts
for FY15-16. The remaining fund balance will be used to finance repair and
maintenance activities in future periods.
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