AgdaPkt 2015-01-12 Joint SA Amended

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ATTACHMENT 1 7.1.A. - Page 5 Special Revenue Funds Highlights Special revenue funds are used to account for revenue received from specific taxes or other dedicated revenue sources (other than debt service or capital projects) restricted by law or formal Council action to expenditures for specified purposes. The transportation fund receives revenue from the San Mateo County Transportation Authority based on the voter approved (Measure A) countywide one -half of one percent sales and use tax levied for transportation- related programs and projects. In FY 2013- 14, the City received $1.66 million in "Measure A" revenue, representing a 2.7% increase over the $1.61 million in FY 2012 -13. This fund received additional state grant revenue in the amount of $0.247 million for the rubberized pavement program. Gas tax revenues (received from the State through gasoline taxes paid by motorists) increased by $0.69 million or 38% in FY 2013 -14 primarily due to an increase in the amount allocated under section 2103 of the State Streets and Highway Code motor vehicle fuel excise tax, which was added in FY 2010 -11 as a replacement to the previous Proposition 42 revenue allocation. This increase resulted from the prior year correction by the State of misallocations in FY 2012 -13. These funds may only be used for roadway maintenance and construction purposes as defined in sections 2101, 2105, 2106 and 2107 of the State Streets and Highway Codes. Debt Service Funds Highlights General Fund (Public Financing Authority Bonds and Lease Revenue Refunding_ Bonds /Lease) The City issued $26.7 million in bonds in 1991 to refinance (at a lower interest rate) the 1986 bonds (issued to fund construction of the Main Fire Station and Main Library) and to provide funds for constructing the Police Facility. In 1998, $12.2 million of these bonds was refunded to realize savings from lower interest rates. In FY 2003 -04, the City issued $11.5 million of bonds to refund the balance ($6.7 million) of the 1991 bonds and to provide $4.4 million for new projects. The annual debt service for both of these bond issues was paid by proceeds from the utility users' tax and communications users' tax. During FY 2012 -13 the City entered into a lease agreement with BBVA Compass Bank in the amount of $3,360,000 to refund the 2003 bonds to realize savings from lower interest rates. This debt will be retired in July 2018. Successor Agency The former Redevelopment Agency issued $34 million of bonds in FY 2003 -04 to finance various downtown improvements. On February 1, 2012 the Redevelopment Agency was dissolved and the outstanding debt of $31.5 million was transferred to the successor agency private purpose trust fund. Through FY 2013 -14, $5.375 million of principal has been retired, leaving a balance of $26.132 million as of June 30, 2014. This debt will be retired in July 2032. Page 4 of 7