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HomeMy WebLinkAboutCity Council Meeting 01/10/2012 Agenda Item 6-Annual Financial Report FYE 6/30/2011 CITY OF ,� LADE LSINOR 11,.� DREAM EXTREME,. JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: JANUARY 10, 2012 SUBJECT: ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2011 Background The Community Redevelopment Law requires the Agency to present an Annual Report to the City Council. The Annual Report for the Fiscal Year ending June 30, 2011 included the audit financial statements from our auditors, White Nelson Diehl Evans & Company LLP as well as items required to be reported in accordance with Health and Safety Code Sections 33080.1, 33080.4 and 33080.5. The items discussed in that report are listed below, along with the related audited financial statements and state required reports. Discussion As directed by the Agency Board on December 13, 2011, the Executive Director has completed the Agency's Annual Report and submitted it to the City Council on behalf of the Agency. The Executive Director has also submitted the Annual Report of Financial Transactions component to the State Controller and the Housing Activities Report component to the Department of Housing and Community Development. The major highlights of the Redevelopment Financial Statements are as follows: • The RDA made all debt service payments. • The RDA paid $1,436,411 to the Supplemental Education Revenue Augmentation Fund (SERAF) as required by the State of California. • All bond reserve requirements are fully funded. AGENDA ITEM NO. 6 Page 1 of 3 Annual Financial Report January 10, 2012 Page 2 • Overall, total tax increment revenue (property tax revenue for the RDA) of $19,004,495 decreased from the prior fiscal year by $872,559, or approximately 4.4 %. This decrease was due to the reassessment of property value by the County Assessor in accordance with Proposition 8. • The low and moderate housing fund tax increment revenue of $3,821,776 decreased by $153,635, or approximately 3.8 %. This decrease was due to the decrease in tax increment noted above. The following are components comprise the Annual Report for Fiscal Year 2010 -2011. Copies of the Annual Report have been provided to the City Council /Agency Board Members and are available for public review in the City Clerk's office. This Report includes the following components in accordance with Health and Safety Code Sections 33080.1, 33080.4 and 33080.5: 1. Independent Financial Audit Report: This report was prepared by White Nelson Diehl Evans & Company LLP and was submitted to the State Controller's office in accordance with statutory requirements. 2. Financial Transactions Report: This report is requires copies of the Independent Financial Audit Report, the HCD Housing Activity Report and the Agency's Statement of Indebtedness that was filed with the County Auditor in October 2011 be submitted to the State Controller.. 3. California Department of Housing and Community Development Redevelopment Agency Annual Housing Activity Report: The Agency's Annual Housing Activity Report is completed on forms provided by the Department of Housing and Community Development and was submitted to HCD online. 4. Annual Report on Agency Activities: Pursuant to the requirements of Sections 33080.1 (b -h). 33080.4. 33080.5 and 33080.7, this report includes several subsections, including but not limited to Fiscal Statement, Loan Report, Property Report, Time Limit Expiration Dates, Blight Progress Reports, and Description of Housing Activities. Fiscal Impact There is no fiscal impact. Page 2 of 3 Annual Financial Report January 10, 2012 Page 3 Recommendation 1. It is recommended that the Agency Board accept the Annual Report for Fiscal of Year 2010-2011 aad nts as required b transmittal the Redevelopment Law to the State Controller those c components y and the Department of Housing and Community Development. 2. It is recommended that the City Council receive and file the Agency's Annual Report for Fiscal Year 2010 -2011. Prepared by: James R. Rile Director of Admi rative Services Approved by: Robert A. Brady (' Executive Directo ,fir Page 3 of 3