HomeMy WebLinkAbout12/28/2004 PFA Reports
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AGENDA
PUBLIC FINANCE AUTHORITY MEETING
CITY OF LAKE ELSINORE
183 NORTH MAIN STREET
LAKE ELSINORE, CALIFORNIA
TUESDAY, DECEMBER 28, 2004
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CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS -. AGENDIZED ITEMS
CONSENT CALENDAR ITEMS
1. Annual Financial Reports.
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RECOMMENDATION:
Concur with Council Action to
Receive & File.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS
EXECUTIVE DIRECTOR COMMENTS
AUTHORITY MEMBER COMMENTS
LEGAL COUNSEL COl\'IMENTS
ADJOURNMENT
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CITY OF LAKE ELSINORE
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REPORT TO THE CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
DICK W A TENP AUGH, CITY MANAGER
DATE:
DECEMBER 28, 2004
SUBJECT: ANNUAL FINANCIAL REPORTS
BACKGROUND
The City's auditors completed their audit field work on September 23, 2004 for the
fiscal year ending June 30, 2004. The audit reports include the City and its
component units. The following annual reports are being presented:
. Comprehensive Annual Financial Report (CAFR) ......,
. Lake Elsinore Redevelopment Agency Financial Statements
. Lake Elsinore Public Financing Authority Financial Statements
. Lake Elsinore Recreation Authority Financial Statements
. Independent Accountant's Report on Agreed-upon Procedures Applied to
Appropriations Limit Worksheets
. Report on Internal Controls
DISCUSSION
Comprehensive Annual Financial Report (CAFR)
Please see the Management's Discussion and Analysis section on pages 3 to 12 for
an overview of the financial activities.
Lake Elsinore Redevelopment Agency Financial Statements
The major highlights of the report are as follows:
. The RDA made all debt service payments
. All bond reserve requirements are fully funded
. Tax increment revenue (property tax revenue for the RDA) increased from
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Annual Financial Reports
December 28, 2004
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the prior fiscal year by $717,433, $585,238, $116,101 in project areas I, II,
and III, respectively. Increases represent an increase of 23%, 15%, 17% in
project areas I, II, and Ill, respectively.
· The tax increment recorded in project area I was reduced $1,514,949 and
deferred as a result of the $3,000,000 "Cap" on tax increment.
· The low and moderate housing fund revenue decreased by $15,019, or -1 %
as a result of the Cap.
· The low and moderate housing fund fund balance increased by $675,714.
· Fund balance increased (decreased) from the prior fiscal year by $(316,271),
$664,427, $(89,552) in project areas I, II, and III, respectively.
Lake Elsinore Public Financing Authority Financial Statements
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The purpose of the Authority is to provide financing for public capital
improvements for the City and the Agency, the acquisition by the Authority of
such public capital improvements and/or the purchase by the Authority of local
obligations within the meaning of the Bond Law under the Marks-Roos Bond Pool
Act of 1985.
During the fiscal year, all regular debt service scheduled payments were
adequately funded and paid. Interest expense increased by $991,884, or 15%.
Principal payments increased by $560,000, or 38% and interest income increased
by $687,294, or 11 %. The reserve requirements are fully funded as of June 30,
2004.
Lake Elsinore Recreation Authority Financial Statements
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The purpose of the Recreation Authority is to provide, through the issuance of
reVenue bonds, a financing pool to fund capital improvement projects.
Specifically, the Recreation Authority has one variable rate bond issue outstanding
of $15,660,000. The proceeds were provided to finance the Recreation Authority's
lease of the Stadium from the City for lease back to the City. The City makes lease .
payments to the Recreation Authority in amounts equal to the debt service
requirements and the Recreation Authority then makes the debt service payments
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Annual Financial Reports
December 28, 2004
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on the bonds. The first principal payment is not due until fiscal year 2004/2005
and interest only payment are paid monthly. The variable rate has been favorable
for the past year. Total interest expense of $150,616 was paid during the fiscal
year, which is an average rate of 0.96%. This is a decrease of $35,972, or 19%
from the prior year.
Independent Accountant's Report on Agreed-upon Procedures Applied to
Appropriations Limit Worksheets
The auditors performed agreed upon procedures to ensure that the City's
appropriation limit calculations were correctly calculated and adopted in
accordance with Article XIIIB of the California Constitution and adopted by City
Council. No exceptions were noted.
Report on Internal Controls
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No exceptions were noted.
FISCAL IMPACT
There is no fiscal impact.
RECOMMENDATION
It is recommended that City Council receive and file these reports and the Agency
Board receive and file the RDA financial statements.
PREPARED BY:
Matt N. Pressey, Direct of Administrative Services
APPROVED FOR
AGENDA LISTING:
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Dick Watenpaugh, Ity M' ager
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