IA SR 20170307 D - FY16-17 IA Midyear Financial ReportIMPROVEMENT AUTHORITY MEETING DATE: 03/07/2017
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to receive and file the Fiscal Year 2016-17
Improvement Authority Midyear Financial Report.
RECOMMENDED IMPROVEMENT AUTHORITY ACTION:
(1) Receive and file the 2016-17 Improvement Authority Midyear Financial Report.
FISCAL IMPACT: None
Amount Budgeted: N/A
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 F',. -
ATTACHED SUPPORTING DOCUMENTS: N/A
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 solely rely on an annual subsidy transfer from the City's
General Fund.
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Fund Summary
FY16-17 COMBINED SUMMARY OF FUNDS
Actual Estimated
Fund Balance Fund Balance
Fund 6/30/2016 Revenues Transfers In Expenditures Transfers Out 6/30/2017
Portuguese Bend 281,490 1,100 - 114,900 167,690
Abalone Cove 1.054.933 3.400 38.000 (74.600) 1.021.733
GRAND TOTALS 1,336,423 I 4,500 38,000 (189,500) - 1,1
Portuauese Bend Fund
At this time, revenue, expenditures and operating transfers are not expected to
materially deviate from the budgeted amounts for FY16-17. 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 FY16-17. 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 FY16-17. The remaining fund balance will be used to finance repair and
maintenance activities in future periods.
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