AgdaPkt 2013-01-28 - Laserfiche WebLink

Browse Search

City of Redwood City 6.1.F. - Page 97 Notes to the Basic Financial Statements For the year ended June 30, 2012 NOTE 14—DISSOLUTION OF THE REDWOOD CITY REDEVELOPMENT AGENCY�CONTINUED� Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss recognized in the governmental funds was not the same amount as the extraordinary loss that was recognized in the fiduciary fund financial statements. The difference between the extraordinary loss recognized in the fund financials statements and the extraordinary loss in the fiduciary fund financial statements is reconciled as follows: Total extraordinary loss reported in governmental funds- Increase to net assets of the Successor Agency Trust Fund $ 4,323,843 Capital assets recorded in the government-wide financial statements—increase to net assets of the Successor Agency Trust Fund 19,069,048 Unamortized bond issuance costs recorded in the government-wide financial statements—increase to net assets of the Successor Agency Trust Fund 1,023,592 Accrued bond interest reported in the government-wide financial statements —decrease to net assets of the Successor Agency Trust Fund (24,643) Long-term debt reported in the government-wide financial statements— decrease to net assets of the Successor Agency Trust Fund (43,553,356) Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers(equal to amount of extraordinary gain reported in the (519,161,516) government-wide financial statements of the City) In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The City's former Redevelopment Agency had entered into agreements with certain public entities whose jurisdictions were within the territory of the former Redevelopment Agency under which these entities received a specified share of the property tax increment received by the former Redevelopment Agency. Under Assembly Bill X1 26 the responsibility for making these payments has been shifted to the County of San Mateo. NOTE 1S—LITIGATION AND CONTINGENT LIABILITIES The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become fixed or determinable in amount. There are lawsuits pending in which the City is a party. In the opinion of the City Attorney, the City has adequate legal defenses and/or reserves to cover such liability if it does arise. 69