HomeMy WebLinkAboutAUDITS-Redevelopment Agency 12/12/85 - City Loan For AudiREQUE T FOR CITY COUNC
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RH 85-70 30 v ?d
Submitted to
Submitted by
Prepared by
Subject
Date
Honorable Mayor and City Council Members �
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Charles lY Thompson, City Administrator -
Douglas N La Belle, Deputy City Administrator/Redev
CITY LOAN FOR AUDIT OF BASE YEAR ASSESSORS
Consistent with Council Policy?
December 12, 1985
[ l New Policy or Exception
Statement of Issue Recommendation Analysis Fundinq Source Alternative Actioris,�ttachments
STATEMIENT OF ISSUE
Wien a Redevelopment Project Area is adopted the county establishes the 'Value of the
Base i ear Assessors Rolls This figure is significant since all future years' tax
increment will be predicated upon this value Staff is recommending that an audit of
the Base tear Value of Assessors Rolls be conducted under the existing contract with
tie consultant firm of Katz Hollis
RFCOMAlEhDATION
Loan the Redevelopment Agency $7,500 from the General Fund Non -Department
Contractu-al Services - Auditing (Account No 101395) to pay the cost of an auott of
the Base Year Assessors Rolls for each of the five (5) adopted Reae'Velopment Project
Areas to be performed by Katz Hollis under the terms of this firm's existing contract
with the Redevelopment Agency
ANALYSIS
At the time the city adopted each of the current five (5) Redevelopmenf Project Areas
the county, determined the assessed value in each project area for its base year The
determination of this value is critical in calculating the tax increment to be recei'Ved b'V
the Redevelopment Agency The only way to confirm this value is to perform an audit
of the Assessors Rolls for the point in time at which the project area became
effective Such co-ifirmation is the responsibility of the Redevelopment Agency
The Redevelopment Agency has urder contract the consultant firm of Matz Hollis to
perform a %ariety of financial consultation serxices This contract was appro%ed by the
Redevelopment Agency on April 5, 1985 and its Scope of Ser'Vices accommodates the
audit function contemplated herein How ever, the Redevelopment Agency Dudget for
this contract does not contain sufficient funds to permit undertaking this acts'Vity and a
transfer of city funds is recommended
ALTERNATI� ES
Do not approve this loan This will pre-empt the conduct of an audit of the Base I ear
Rolls for each of the five (5) project areas
M
P10 4/84
RIJ 85-70
December 12, 1985
Page Two
FUNDING SOURCE
Account No 101395 General Fund Non -Departmental Contractu-al Services - Auditing
This funding source determined b� Chief of Administrative Services Such loan will
become i debt of the Redevelopment Agency and will be incorporated into the next
amendment of the Operative Agreement between the city and the Redevelopment
Agencv which documents all such debts
ATTACHI4°ENT
Fiscal Impact Statement
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FISCAL IMPACT STATEMENT CHECKLIST
PRELIMINARY FEASIBILITY STUDY FOR
AUDIT OF BASE YEAR ASSESSORS ROLLS
I 11 by is this item not in the budget9
Adhisability of undertaking Base Year Audit result of Administrative Services
Department recommendation and analysis of Agency Financial Status by Katz Hollis
all of which occurred after budget approval
II What will be the cost9
A Direct Cost
I Current Fiscal Year Cost $7,500
2 Future Year(s) Cost -0-
B Indirect Cost
1 Cash Flow Because adopted Redevelopment Project Areas are relatively
new very little tax increment is generated as revenue to the
Redevelopment Agency Loans from the city to the Redevelopment
Agency are repayable through standing operative agreements and
suusequent amendments to these documents The Redevelopment Agency
is pledged to pay 10 percent interest on such debt which currently exceeds
the average investment yield for city funds
2 Maintenance
a Current Fiscal -1 ear -0-
b Future Fiscal Year(s) -0-
3 Overhead (not applicable)
4 Grant Requirements (not applicable)
III Funding Source
A Fund General Fund Non -Departmental, Contractural Services - Auaiting
(Accounting No 101395)
B Revenue Source Repayment to be generated from future tax increment
C Alternative Funding Sources
N one
IV History
A The Redevelopment Agency has prex iously established debt with the city for
various redevelopment activities within the plain -Pier and the other project
areas
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