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6.1. B. - Page 159 <br /> REDEVELOPMENT AGENCY <br /> OF THE CITY OF REDWOOD CITY <br /> MANAGEMENT'S DISCUSSION AND ANALYSIS <br /> JUNE 30, 2011 <br /> This section of the Redevelopment Agency's annual financial report presents a <br /> narrow overview and analysis of the Redevelopment Agency's financial activities <br /> for the fiscal year ended June 30, 2011. Please read this overview in conjunction <br /> with your reading of the accompanying Basic Component Unit Financial <br /> statements. <br /> THE PURPOSE OF THE AGENCY <br /> The Agency is a component unit of the City of Redwood City; it is controlled by <br /> the City, which appoints the Agency's Board of Directors. City employees <br /> perform all the duties and functions required of the Agency. <br /> The Agency's purpose under California law is to eliminate urban blight in the City <br /> of Redwood City; it is given certain powers under the law to assist it in that <br /> endeavor. The Agency may condemn property under certain circumstances and <br /> only to the extent the City may condemn property as prescribed by the law, and it <br /> may incur indebtedness to finance redevelopment of property. The Agency may <br /> not assess or receive property taxes, but it may receive any increases in property <br /> taxes over amounts received in the year before the property in the Agency's area <br /> became subject to redevelopment (called the Base Year). The increases are <br /> called property tax Increments. One-fifth of the property tax increments received <br /> must be used to increase the supply of low and moderate income housing. <br /> FINANCIAL 2011 FINANCIAL HIGHLIGHTS <br /> Financial highlights of the year include the following: <br /> • The Agency's net assets decreased $4.3 million in fiscal year 2010-11, after a <br /> $.6 million increase in the preceding year. At June 30, 2011, the Agency's <br /> net assets were $(7.678) million. <br /> • Total Agency revenues, including transfers and contributions, were $12.145 <br /> million, a decrease of $.5 million. Expenses were $16.4 million, representing <br /> an increase of $4.4 million over the prior year. <br /> • Redevelopment Agency Fund revenues and other financing sources <br /> decreased $.4 million and expenditures and other financing uses decreased <br /> $3.5 million. Fund balance decreased $.5 million. <br /> • Low and Moderate Income Housing Fund revenues and other financing <br /> sources of $4.5 million were slightly down from the prior year, while <br /> expenditures and other financing uses of $4.5 million were $2.8 million <br /> greater than the prior year. <br /> 3 <br />