RPVCCA_IA_SR_2010_03_02_02_IA_Mid_Year_Financial_ReportCfTYOF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Project Manager:
HONORABLE CHAIR &COMMISSION MEMBERS
DENNIS McLEAN,DIRECTOR OF FINANCE &~
INFORMATION TECHNOLOGY ~
MARCH 2/'2010
FY09·10 IMPROVEMENT AUTHORITY MIDYEAR
FINANCIAL REPORT
CAROLYN LEHR,CITY MANAGER ·ciL
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
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FY09·10 Improvement Authority Midyear Financial Report
March 2,2010
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accounted for in the Portuguese Bend Maintenance Fund.
DISCUSSION
Fund Summary
Portuguese Bend
Abalone Cove
Portuguese Bend Fund
At this time,revenue,expenditures and operating transfers are not expected to
materially deviate from the budgeted amounts for FY09-10.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 FY09-10.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 2009 Five-Year Financial Model
indicates that this fund will no longer be able to fund an ACLAD contribution after FY11-
12.
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