AgdaPkt 2013-01-28 - Laserfiche WebLink

Browse Search

6.1.F. - Page 60 , Notes to the Basic Financial Statements For the year ended June 30, 2012 NOTE 1—$UMMARY OF$IGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The accompanying basic financial statements present the financial activity of the City of Redwood City (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 (prior to the dissolution of the Redevelopment Agency on February 1, 2012), 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. The Redwood City Redevelopment Agency (for activity through January 31, 2012), 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 (Agency) was created under the provisions of the Community Redevelopment Law (California Health and Safety Code) to redevelop certain areas in the 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 was 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. California state law eliminated redevelopment agencies effective February 1, 2012. 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 PFA has since issued various types of debt on behalf of the City and the Agency. 32