Redevelopment Agency Meeting: December 5, 2006

Agenda Item: 8-B  

 

To:                   Mayor and City Council

                        Chairperson and Redevelopment Agency

 

From:              Martin Kennerly, Acting Director, Resource Management Department

Subject:          Annual Report for Fiscal Year 2005-2006 for the Redevelopment Agency of the City of Santa Monica

 

Recommended Action

Staff recommends that the City Council:

1)             Receive and file the Annual Report for Fiscal Year 2005-2006 for the Redevelopment Agency of the City of Santa Monica.

 

Staff recommends that the Redevelopment Agency:

1)         Direct the Executive Director of the Redevelopment Agency to transmit the report to the Controller of the State of California.

            .                       

Executive Summary

The purpose of the Annual Report of the Redevelopment Agency is to comply with California Health & Safety Code 33080.1 which requires that the Redevelopment Agency present an annual report to the City Council and file such report with the Controller of the State of California no later than December 31, 2006. The attached report includes the following components:

1)     Annual Report Summary which summarizes the Agency’s programs and activities for Fiscal Year 2005-2006 (Attachment A);

2)     An independent financial audit and report conducted in accordance with generally accepted auditing standards (Attachment B);

3)     A fiscal statement that provides information on the outstanding indebtedness and the amount of tax increment revenue generated by the Agency in total and by each project area (Attachment C); and

4)     A description of the Agency’s activities including those affecting housing and displacement (Attachment D).

 

 

Discussion

The accounting firm of Mayer Hoffman and McCann completed an independent financial audit for the financial year from July 1, 2005 to June 30, 2006, in compliance with standards set out in Section 33080.1 of the California Health and Safety Code. Mayer Hoffman and McCann issued an unqualified audit report, which means the basic financial statements of the Agency present fairly, in all material aspects, the financial position of the Redevelopment Agency as of June 30, 2006.  Additionally, Mayer Hoffman and McCann performed tests of the Agency’s compliance with certain provisions of laws, regulations, contracts, and grants, the results of which disclosed no instances of noncompliance under government auditing standards. 

 

The attached annual report provides specific information on housing and other activities

 

of the Redevelopment Agency in Fiscal Year 2005-2006. Presentation of the annual report to the City Council is required prior to its transmittal to the State Controller.

 

Additionally, in FY 05-06, the Agency, in accordance with Chapter 610, Statutes of 2004 (which requires redevelopment agencies to shift property tax revenues to K-12 schools and community colleges), and subdivision (d) of Health and Safety Code Section 33681.9, forwarded $2,941,553.59 from available tax increment to the County of Los Angeles for the Education Revenue Augmentation Fund (ERAF) shift.

 

Budget/Financial Impact

There is no budget/fiscal impact resulting from the approval of the Redevelopment Agency’s Annual Report of Fiscal Year 2005-2006.

 

Prepared by:

 

Tina Rodriguez, Redevelopment Administrator

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Martin Kennerly, Acting Director,

Resource Management Department

 

 

 

 

 

P. Lamont Ewell

City Manager

 

 

Attachment A -           Annual Report Summary

Attachment B -           Mayer Hoffman and McCann Independent Auditor’s Report

Attachment C -          State Auditor Controller’s Report of Financial Transactions

Attachment D -          State Housing and Community Development Department Annual Report of Housing Activity of Community Redevelopment Agencies