RPVCCA_IA_SR_2015_03_03_04_FY_2014-15_IA_Midyear_Financial_ReportCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE CHAIR &COMMISSION MEMBERS /I�
FROM: KATHRYN DOWNS, ACTING FINANCE DIRECTOR 1�(/
DATE: MARCH 3, 2015
SUBJECT: FY14-15 IMPROVEMENT AUTHORITY MIDYEAR
FINANCIAL REPORT
REVIEWED: CAROLYNN PETRO, DEPUTY CHIEF ADMINISTRATIVE
OFFICER
RECOMMENDATION
Receive and file the FY14-15 Improvement Authority Midyear Financial Report.
BACKGROUND
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.
While the improvements were under construction, repair and maintenance expenditures
were budgeted and accounted for by both the Agency and the City. 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
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FY14-15 Improvement Authority Midyear Financial Report
March 3, 2015
Page 2 of 2
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.
Portuguese Bend 362,456 640 40,000
Abalone Cove 1,681,548 2,300 35,000
Portuguese Bend Fund
22,
280,496
At this time, revenue, expenditures and operating transfers are not expected to materially
deviate from the budgeted amounts for FY14-15. 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 FY14-15. 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.
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