HomeMy WebLinkAbout2008-12-23 CC-Recreation Authority No.1 CITY OF
LA. E 5 LSINOR
DREAM EXTREME,
REPORT TO RECREATION AUTHORITY
TO: HONORABLE CHAIRMAN
AND MEMBERS OF THE RECREATION AUTHORITY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: DECEMBER 23, 2008
SUBJECT: ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING
JUNE 30, 2008
Background
The Recreation Authority's auditors completed their audit field work on November 21,
2008 for the fiscal year ending June 30, 2008. This is the fourth 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. Specifically, the
Recreation Authority has one variable rate bond issue outstanding of $14,435,000. 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 $325,000.
The variable rate started the year at 3.61% and ended the year at 1.32 %. During the
2007 -08 fiscal year, total interest expense was $406,202 (average of 2.79 %). Total
interest expense of $270,221 (average of 1.73 %), $432,836 (average of 2.87 %) and
$520,608 (average of 3.45 %) was paid during the three fiscal years for 2004 -05, 2005-
06 and 2006 -07, respectively.
Fiscal Impact
There is no fiscal impact.
Agenda Item No. 1
Page 1 of 2
Annual Financial Report
December 23, 2008
Page 2
Recommendation
1. It is recommended that the Authority Board receive and file the report
Prepared by: James R. Riled /;
Acting Director otdministrative Services
Approved by: Robert A. Brady
Executive Directo
Agenda Item No. 1
Page 2 of 2