Loading...
RPVCCA_IA_SR_2011_03_01_05_FY10-11_Midyear_Fin_RptCfTYOF MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: Project Manager: HONORABLE CHAIR &COMMISSION MEMBERS DENNIS McLEAN,DIRECTOR OF FINANCE &~ INFORMATION TECHNOLOGY YJlb MARCH 1,2011 FY10-11 IMPROVEMENT AUTHORITY MIDYEAR FINANCIAL REPORT CAROLYN LEHR,CITY MANAGER Q9- Kathryn Downs,Deputy Director of Finance &Information Technology RECOMMENDATION Receive and file the attached 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 (Le. 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 the 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 and are paid from the accumulated interest earned on $1,000,000 of County bond proceeds received in 1991.Annual transfers from the City's General fund are required to finance the repair and maintenance expenditures for Portuguese Bend landslide abatement improvementsIA 5-1 CfTYOF MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: Project Manager: HONORABLE CHAIR &COMMISSION MEMBERS DENNIS McLEAN,DIRECTOR OF FINANCE &~ INFORMATION TECHNOLOGY YJlb MARCH 1,2011 FY10-11 IMPROVEMENT AUTHORITY MIDYEAR FINANCIAL REPORT CAROLYN LEHR,CITY MANAGER Q9- Kathryn Downs,Deputy Director of Finance &Information Technology RECOMMENDATION Receive and file the attached 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 (Le. 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 the 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 and are paid from the accumulated interest earned on $1,000,000 of County bond proceeds received in 1991.Annual transfers from the City's General fund are required to finance the repair and maintenance expenditures for Portuguese Bend landslide abatement improvements FY10-11 Improvement Authority Midyear Financial Report March 1,2011 Page 2 of2 accounted for in the Portuguese Bend Maintenance Fund. DISCUSSION Fund Summary Portuguese Bend Abalone Cove Portuguese Bend Fund 243,651 1,230,233 At this time,revenue,expenditures and operating transfers are not expected to materially deviate from the budgeted amounts for FY10-11.The remaining fund balance will be used to finance repair and maintenance activities in future periods.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 FY10-11.The remaining fund balance will be used to finance repair and maintenance activities in future periods.The primary funding source for this maintenance fund is the interest revenue earned on the non-expendable $1,000,000 of County bond proceeds noted above.Currently the annual expenditure budget for this fund includes a $60,000 contribution to the Abalone Cove Landslide Abatement District (ACLAD).The 2010 Five-Year Financial Model indicates that this fund will no longer be able to fund an ACLAD contribution after FY11- 12. IA 5-2 FY10-11 Improvement Authority Midyear Financial Report March 1,2011 Page 2 of2 accounted for in the Portuguese Bend Maintenance Fund. DISCUSSION Fund Summary Portuguese Bend Abalone Cove Portuguese Bend Fund 243,651 1,230,233 At this time,revenue,expenditures and operating transfers are not expected to materially deviate from the budgeted amounts for FY10-11.The remaining fund balance will be used to finance repair and maintenance activities in future periods.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 FY10-11.The remaining fund balance will be used to finance repair and maintenance activities in future periods.The primary funding source for this maintenance fund is the interest revenue earned on the non-expendable $1,000,000 of County bond proceeds noted above.Currently the annual expenditure budget for this fund includes a $60,000 contribution to the Abalone Cove Landslide Abatement District (ACLAD).The 2010 Five-Year Financial Model indicates that this fund will no longer be able to fund an ACLAD contribution after FY11- 12.