AgdaPkt 2006-01-09 - Laserfiche WebLink

Browse Search

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES A. Reporting Entity The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City's operations and are reported as an integral part of the City's financial statements. This City's component units which are described below are all blended. The City Council serves in separate session as the governing bodies of the Redwood City Redevelopment Agency, the Redwood City Facilities and Infrastructure Authority, and the Public Financing Authority, although these agencies are legal entities apart from the City. Under the City Charter, the City Council appoints the Board of Port Commissioners who oversee the operations of the Port of Redwood City, which is considered a department of the City of Redwood City. The Redwood City Redevelopment Agency, Redwood City Facility and Infrastructure Authority, and Public Financing Authority are included as component units in the accompanying financial statements. The financial activities of the foregoing entities have been aggregated and merged (termed "blending") with those of the City in the accompanying financial statements, as each meets the criteria for inclusion as set forth in Governmental Accounting Standards Board Statement No. 14. Information concerning the Bay Cities Joint Powers Insurance Authority and South Bayside System Authority are presented in the notes to the financial statements, as the City's relationship to these organizations does not meet the aforementioned criteria for presenting these organizations as component units. 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 (Original 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 from various sources, including assistance from the City, the state and federal governments, property tax increments, interest income, and the issuance of Agency bonds. Redwood City Facilities and Infrastructure Authority (RCFISA) was established in 1986 to finance the construction of certain public facilities such as the Main Fire Station, City Hall, and Main Library. After acquiring certain properties from the City, RCFISA leased them back to the City. The lease money provided the funds for the debt service for the certificates of participation issued by the RCFISA to acquire the properties from the City. The Public Financing Authority (PFA) was established in 1991 to finance construction of the new Police Facility, to finance the defeasance of outstanding certificates of participation issued by the RCFISA, and to issue tax increment bonds on behalf of the Redevelopment Agency. The PF A has since issued various types of debt on behalf of the City and the Redevelopment Agency. Component unit financial statements for each of the above entities may be obtained from the City of Redwood City, Finance Department, 1017 Middlefield Road, Redwood City, CA 94063. The Port of Redwood City was established under the City Charter as a department of the City and is managed by the Port Commission of Redwood City, whose members are appointed by the City Council. This commission is a semi-autonomous body and has full authority to manage the Port. Its financial system is maintained separately from the City by the Port's own financial staff. The Port's Treasurer and Legal Counsel are the City's Finance Director and the City Attorney, respectively. The financial transactions of the Port are incorporated as an enterprise fund. 29