AgdaPkt 2007-01-08 - Laserfiche WebLink

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Fiscal Year 2006 Governmental Activities The Agency's fiscal year 2006 revenue came primarily from property tax increments, which amounted to $8.4 million, an increase of $113 thousand from the prior year. The increase in tax increment stemmed from the increase in value of properties in the Agency's project area. The decrease in other revenues resulted from the receipt in the prior fiscal year of one-time contributions in the amount of $8.5 million. Agency expenses of $8.8 million in fiscal year 2006 were principally for development-related projects amounting to $1.8 million, school district and special district Pass-throughs expense of $1.059 million, and State Educational Revenue Augmentation Fund takeaway of $679 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, 2006, the Agency's governmental funds reported combined fund balances of $16 million, which is a decrease of $14.4 million from last year. This decrease resulted primarily from the continued expenditure of previously issued $33.997 million in tax allocation bonds to finance various downtown improvements. The Agency has loaned a total of $3.7 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 $2.3 million have been made to 35 qualified homebuyers. These loans are explained in detail in Notes 3 and 9 to the financial statements. CAPITAL 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, 2006, the Agency had $36.7 million of capital assets net of depreciation. More detailed information on capital assets is resented in Note 4 to the financials statements. DEBT ADMINISTRATION Each of the Agency's debt issued is discussed in detail in Note 7 to the financial statements. In July 1997 the Agency issued $15.43 million of Tax Allocation Refunding Bonds that bear interest at 3.8% to 5.15% and are due in 2011. The proceeds from these Bonds were used to advance refund the outstanding balance of the 1991 Redwood City Public Financing Authority Bonds - Series B. In October 2003 the Agency issued $33,997,448 of Tax Allocation Bonds that bear interest at 3.5% to 5.8% and are due in 2032. The proceeds of the bonds were used to finance various downtown improvements. At June 30, the Agency's debt comprised the two Tax Allocation Bond issues and a loan from the Redwood City School District used to finance a real property purchase, all of which are secured by property tax increment revenues. 6