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HomeMy WebLinkAboutRA Item No. 1CITY OF LADE TO: FROM DATE LS II`IOIZE DREAM EXTREME- REPORT TO RECREATION AUTHORITY HONORABLE CHAIRMAN AND MEMBERS OF THE RECREATION AUTHORITY ROBERT A. BRADY EXECUTIVE DIRECTOR FEBRUARY 22, 2011 SUBJECT: ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2010 Background The Recreation Authority's auditors completed their audit field work on February 7, 2011 for the fiscal year ending June 30, 2010. This is the sixth year that the auditors, Diehl, Evans & Company, have performed the audit services for the Authority. Discussion The purpose of the Recreation Authority is to provide a financing pool to fund capital improvement projects through the issuance of revenue bonds. The Recreation Authority has one variable rate bond issue outstanding of $13,740,000. The proceeds were provided to finance the Recreation Authority's lease of the Stadium from the Agency 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 on the bonds. Interest-only payments are paid monthly. The principal payment in the fiscal year was $355,000. The variable interest at June 30, 2010 was 0.20%. During the 2009-10 fiscal year, the total interest expense was $32,251. Fiscal Impact There is no fiscal impact. Recommendation 1. It is recommended that the Authority Board receive and file the report Prepared by: James R. Rile Director of Adm' trative Services Approved by: Robert A. Brady Executive Directo AGENDA 9TaM NO. PACE / - CF i