AgdaPkt 2007-12-17 - Laserfiche WebLink

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Redevelopment Agency of the City of Redwood City Management's Discussion and Analysis, Continued For the fiscal year ended June 30, 2007 FINANCIAL ACTIVITIES OF THE AGENCY AS A WHOLE,Continued The Agency's cash and investments declined 18.9% as the Agency expended cash on the Downtown revitalization related projects which also increased capital assets as most of these projects qualified as capital. The Agency's net assets from governmental activities increased 41% to net assets of$10.582 million in 2007 from net assets of$7.495 million in 2006. This increase resulted primarily from the excess of operating tax increment revenue over the operating expenses as more tax increment came in than anticipated and operating expenses were less than planned. Changes in Redevelopment Agency's Net Assets (in Millions) 2007 2006 Variance Revenues General revenues,Transfers and Contributions: Tax increments $9.529 $8.374 13.793% Investment earnings 0.576 0.745 -22.685% Other 0.056 0.136 -58.824% Transfer to(from)other City funds 0.527 (3.129) 116.842% Total revenues 10.688 6.126 74.469% Expenses Community development 5.297 6.507 -18.595% Interest on long term debt 2.304 2.293 0.480% Total expenses 7.601 8.800 -13.625% Change in net assets 3.087 (2.674) -215.445% Net assets-July 1 7.495 10.169 -26.296% Net assets-June 30 $10.582 $7.495 41.187% Fiscal Year 2007 Governmental Activities The Agency's fiscal year 2007 revenue came primarily from property tax increments,which amounted to $9.5 million, an increase of$1.2 million over 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 investment earnings resulted from the continued reduction in cash as bond proceeds are spent on capital outlay projects. Agency expenses of$7.6 million in fiscal year 2007 were principally for development-related projects amounting to$1.2 million, school district and special district Pass-throughs expense of$1.334 million. 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. 6