AGENDA ITEM NO. 17
Meeting Date: January 9, 2007
Subject/Title: Approve the Filing of the Redevelopment Agency Financial
Statements for Fiscal Year 2005/2006
Prepared by: Kerry Breen, Business Services Manager
Submitted by: Pamela Ehler, Agency Treasurer
Approve the filing of the 2005/06 Redevelopment Agency Financial Statements
as prepared by the Finance Department and examined by the independent
accounting firm of Vavrinek, Trine, Day & Co., LLP.
The audit firm of Vavrinek, Trine, Day & Co., LLP has completed its review
and examination of the Agency’s financial transactions and statements for
the year ended June 30, 2006. The audit was conducted in accordance with
generally accepted auditing standards. It is the opinion of the auditors
that the financial statements fairly represent the financial position of the
Redevelopment Agency as of June 30, 2006, and that the statements were
prepared in conformity with generally accepted accounting principles. The
Finance Department provided significant support with the year-end closing,
the coordination of the audit process, and the preparation of the Financial
The Finance Department incorporates the Redevelopment financial data into
the Financial Statements for the Redevelopment Agency which includes the
• Auditor’s opinion regarding the financial statements;
• Management’s Discussion and Analysis providing a narrative overview of the
Redevelopment Agency’s activities, economic factors, and a 2006/07 budget
• Basic financial statements which provide information on the Redevelopment
Agency as a whole in the Statement of Net Assets and the Statement of
Activities and Changes in Net Assets, as well as provide financial
information on each individual Redevelopment Fund, including budgetary data,
in the Combining Statement of Revenues, Expenditures and Changes in Fund
• Notes to the Financial Statements which is an addendum to the financials.
Complete financial information as of June 30, 2006 is contained in the
Financial Statements. Key information is summarized below.
• The Redevelopment Agency’s total Fund Balance is $16,190,246, which
represents an increase of $1,526,490 for the fiscal year.
• Net assets for the Redevelopment Agency are $(3,751,409), which represents
an increase of $1,926,077 during the fiscal year. Liabilities typically
exceed assets in Redevelopment Agencies due to the fact that long-term debt
is required to be issued in order to finance the redevelopment activity. The
incremental tax revenue is then realized in future years to repay the debt.
• The total revenues and all transfers in from all sources were $6,882,427
as compared to the total cost for all Agency programs of $5,355,937.
There is no fiscal impact associated with the Agency’s action.