HomeMy WebLinkAboutVII- C Annual Report
CONSENT ITEM
TO: HONORABLE CHAIRPERSON AND BOARD OF DIRECTORS
FROM: JOHN ANDREWS, ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
VIA: RICK COLE, EXECUTIVE DIRECTOR
DATE: JANUARY 21, 2003
SUBJECT: ANNUAL REPORT OF THE CITY OF AZUSA REDEVELOPMENT AGENCY
RECOMMENDATION
It is recommended that the Board of Directors adopt the Resolution authorizing the receipt and file of the attached
Annual Report for the Redevelopment Agency.
BACKGROUND
Section 33080 of the California State Health and Safety Code (Community Redevelopment Law) requires a
redevelopment agency to submit an annual report to its legislative body for review. As required by law, the Annual
Report consists of the following:
1. The Independent Financial Audit Report;
2. The Fiscal Statement which summarizes all financial transactions of the Agency, delineates the Agency's
outstanding indebtedness, provides information pertaining to tax increment usage and Agency activities,
and reports specific actions and expenditures made to alleviate blight;
3. The Housing and Housing Displacement Report;
4. A listing of Agency-owned property; and
5. A loans receivable report identifying non-complying and defaulted loans $50,000 or more. Since there
were no defaulted or non-complying loans of $50,000 or more during fiscal year 2001/02, no report is
presented herein.
Page 2
Honorable Chairperson and Board of Directors
Annual Report of the City of Azusa Redevelopment Agency
January 21, 2003
FISCAL IMPACT
When compared to FY 2000/01, Agency overall revenues increased by 3.23%. Property tax increment increased 1.15%
over last year, but sales tax receipts decreased 5%. The sale of 116 N. Azusa to Jack-In-The-Box provided additional
one-time funds.
The Agency is still operating at a deficit, albeit less than last year’s deficit. There is a combined deficit fund balance of
($562,088), in the Merged Project Tax Increment Debt Service Fund and General Agency Administration Fund. This
deficit is a result of ordinary revenues not meeting the level of ordinary expenditures and current liabilities. Although
property tax increment receipts for this Area totaled $4,635,488, 33% of that is passed through to taxing entities and
an additional 20% is set aside for low income housing requirements. Net tax increment of $2,178,678 remains to pay
debt service on the Agency’s tax allocation bonds, the City’s Certificates of Participation, the Agency’s general
administrative costs, interfund liabilities, and the Agency’s contribution to City salaries and service allocations. As a
result, administration and debt service commitments continue to be met by using capital project reserve funds.
Although there has been a long-existing deficit in the Low-to-Moderate Income Housing Fund, that deficit is
decreasing annually, and should continue to decrease. That deficit decreased by $243,645 in 2001/02, and now stands
at ($130,511). This fund should be showing a positive fund balance by the end of 2002/03, barring unforeseen financial
circumstances imposed at the State level. Agency staff continues its work program emphasis to market Agency-
owned property holdings for sale, lease, and/or development, and to increase property tax increment by promoting
new business, construction, and business retention.
Prepared by: Roseanna J. Jara, Sr. Accountant-Redevelopment
Attachments:
Resolution
Annual Report of Financial Transactions
County Statement of Indebtedness/10-1-02
HCD Annual Report of Housing Activity
U.S. Census Bureau Supplemental Report
List of Agency-Owned Property and Assets Added/Deleted
2001/02 Independent Audited Financial Statement
JPA:RJJ/cs