AgdaPkt 2006-01-09 - Laserfiche WebLink

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FINANCIAL ACTIVITIES OF THE AGENCY AS A WHOLE This analysis focuses on the net assets and changes in net assets of the Agency's Governmental Activities in the Agency-wide Statement of Net Assets and Statement of Activities that follow. The Agency's net assets from governmental activities decreased 9.8% to net assets of $10.169 million in 2005 from net assets of $11.269 million in 2004. This decrease is the Change in Net Assets reflected in the Statement of Activities, as explained below: . Land held for redevelopment in the amount of $2.6 million was transferred to another City fund. The decrease in land held for redevelopment was offset by an excess of revenues and transfers over expenses in the amount of $1.5 million. . Fiscal Year 2005 Government Activities The Agency's fiscal 2005 revenue came primarily from property tax increments, which amounted to $8.3 million, an increase of $262 thousand from the prior year, and developer contributions of $8.4 million. The increase in tax increment stemmed from the increase in value of properties in the Agency's project area, whereas the developer contributions represented one-time revenue associated with the downtown development. Agency expenses of $7.7 million in fiscal 2005 were principally for development-related projects amounting to $1.1 million, school district and special district Pass-through expense of $996 thousand, and State Educational Revenue Augmentation Fund takeaway of $720 thousand. The Agency has agreements with the pre-existing school and special districts in its project area under which it passes through a portion of the property tax increments it receives. These agreements are discussed in detail in note 9 to the financial statements. Additionally, the Agency incurred expense for interest on the Tax Allocation Bonds in the amount of $2.3 million. The Agency's Fund Financial Statements At June 30, 2005, the Agency's governmental funds reported combined fund balances of $30.4 million, which is a decrease of $8.4 million from last year. This decrease resulted primarily from the expenditure of previously issued $34 million in tax allocation bonds to finance various downtown improvements. The Agency has loaned a total of $1.7 million to developers to assist them in constructing low and moderate income housing. Interest on these loans is at below market rates. Additionally, the Agency has established First Time Homebuyer programs under which low-interest rate loans in the amount of $2.4 million have been made to 35 qualified homebuyers. These loans are explained in detail in Notes 3 and 9 to the financial statements. CAPIT AL ASSETS Under GASB 34, the Agency is required to record all its capital assets, including infrastructure, at their historical cost, and to depreciate these assets over their estimated useful lives. At June 30, 2005, the Agency had $24.9 million of capital assets net of depreciation. 5