AgdaPkt 2002-01-14 - Laserfiche WebLink

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REDEVELOPMENT AGENCY OF TIlE CITY OF REDWOOD CITY Notes to Component Unit Financial Statements NOTE OF SIGNIFIC~ ACCOLrNTING POLICIES ] 1 SLrMMARY A. General The Redevelopment Agency of the City of Redwood City was created under the provisions of the Community Redevelopment Law (California Health and Safety Code) to redevelop certain areas in the City of Redwood City. A Redevelopment Plan was originally adopted in July 1982 (Chfginal Area), it was amended in May 1985 (First Amendment) and again in December 1989 (Second Amendment) to provide an improved physical, social and economic environment in the Agency's project area. The Agency is authorized to finance the Plan fi:om various sources, including assistance fi:om the City, the State and federal governments, property tax increments, interest income and the issuance of Agency bonds. The Agency is an integral part of the City of Redwood City and the accompanying component unit f'mancial statements are included as a component unit of the general purpose financial statements prepared by the City. B. Fund Accounting In order to ensure the proper identification of individual revenue sources and the expenditures made from those revenues, the accounts of the Agency are organized on the basis of individual funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. The Agency's resources are accounted for in these individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. In the Combined Financial Statements, these fimds are grouped into the fund types and categories discussed below. GOVERNMENTAL FUNDS Special Revenue Funds - The Special Revenue Funds account for revenue sources legally restricted for expenditures for specified purposes, including Low and Moderate Income Housing funds of the Agency. Debt Service Fund - The Debt Service Fund accounts for tax increment revenues, bond proceeds and related interest income required to be set aside for future debt service. The funds are used to repay principal and interest on indebtedness of the Agency. Debt Service Funds are referred to as "Special Funds" by the California Health and Safety Code and the Agency's bond resolutions. Capital Project~ Funds - The Capital Projects Fund accounts for loans from the City of Redwood City, bond proceeds available for project improvements, interest income on invested funds and certain miscellaneous income. Expenditures fi:om these Funds are primarily for redevelopment project costs. Capital Projects Funds are referred to as "Redevelopment Funds" by the California Health and Safety Code and the Agency's bond resolutions.