SR-413-001 (28)~_
City Council and
~ ~,ty of Redevelopment Agency Report
Santa Monica"'
Redevelopment Agency Meeting: December 5, 2006
Agenda Item: g~
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 receive the Annual Report for Fiscal Year 2005-
2006 for the Redevelopment Agency of the City of Santa Monica.
Staff recommends that the Redevelopment Agency direct the Executive Director of the
Redevelopment Agency to transmit the report to the Controller of the State of California
for filing.
Executive Summary
The Annual Report of the Redevelopment Agency complies with California Health &
Safety Code 33080.1 which requires the Redevelopment Agency to present an annual
report to the City Council and file this report with the Controller of the State of California
no later than December 31, 2006. The attached report includes the following
components:
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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 P.C. completed an independent
financial audit for the fiscal 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 P.C. 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 P.C. 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.
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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 budgetlfiscal 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 Mana ement Deqart ent
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Attachment A- Annual Report Summary
Attachment B- Mayer Hoffman and McCann P.C. 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
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