HomeMy WebLinkAboutNC Comprehensive Report (Finance) (72)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(16) Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in
the State of California cannot enter into new projects, obligations or commitments.
Subject to the control of a newly established oversight board, remaining assets can only
be used to pay enforceable obligations in existence at the date of dissolution (including
the completion of any unfinished projects that were subject to legally enforceable
contractual commitments).
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 Bill directs the State Controller of the State of California to review the propriety of
any transfers of assets between redevelopment agencies and other public bodies that
occurred after January 1, 2011. If the public body that received such transfers is not
contractually committed to a third party for the expenditure or encumbrance of those
assets, the State Controller is required to order the available assets to be transferred to the
public body designated as the successor agency by the Bill.
Prior to dissolution of the Redevelopment Agency on February 1, 2012, the final seven
months of the activity of the redevelopment agency were reported in the governmental
funds of the City. After the date of dissolution, the assets and activities of the dissolved
redevelopment agency are reported in a fiduciary fund (private -purpose trust fund) in the
financial statements of the City, pending the liquidation and distribution of the assets and
liabilities of the former Redevelopment Agency to other taxing entities in accordance
with state law.
The transfer of the assets and liabilities of the former redevelopment agency as of
February 1, 2012 (effectively the same date as January 31, 2012) from governmental
funds of the City to fiduciary funds was reported in the governmental funds as an
extraordinary loss (or gain) in the governmental fund financial statements. The receipt of
these assets and liabilities as of February 1, 2012 was reported in the private -purpose
trust fund as an extraordinary gain (or loss).
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 (gain) recognized in the
governmental funds was not the same amount as the extraordinary gain (loss) that was
recognized in the fiduciary fund financial statements.
The City entered into an agreement to
improvements program: the loan establishes
TransNet (Prop A) fund for the last two years
matures June 30, 2015.
borrow funding for street resurfacing
a 5 year re -payment agreement with the
at an interest rate of 0.75% per annum and
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