SR-413-001
F:\Redevelopment\Staff Reports Final\Annual Report 98-99 (v2).doc
Council Meeting: December 14, 1999 Santa Monica, California
TO: Mayor and City Council Members
Chairperson and Redevelopment Agency Members
FROM: Redevelopment Agency Staff
SUBJECT: Annual Report for Fiscal Year 1998-1999 for the Redevelopment Agency of
the City of Santa Monica
INTRODUCTION
The California Health & Safety Code requires that the Redevelopment Agency present an
annual report to the City Council and file such annual report with the Controller of the State
of California no later than December 31, 1999. This staff report presents the attached
Santa Monica Redevelopment Agency Annual Report for Fiscal Year 1998-1999, which
includes an independent financial audit, pursuant to Section 33080.1 of the California
Health and Safety Code.
BACKGROUND
The purpose of the Annual Report of the Redevelopment Agency is to provide financial
and housing data to the state legislature and other interested parties regarding the Agency
and its activities. The attached report includes the following:
1) Annual Report Summary for Fiscal Year 1998-99, which includes information
which the Agency believes useful to explain its programs and activities (Attachment
A);
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2) An independent financial audit report conducted in accordance with generally
accepted auditing standards (Attachment B);
3) A fiscal statement that provides information on the outstanding indebtedness of
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 affecting housing and displacement
(Attachment D).
DISCUSSION
The accounting firm of KPMG Peat Marwick completed an independent financial audit for
the fiscal year from July 1, 1998 to June 30, 1999 in compliance with standards set out in
Section 33080.1 of the California Health and Safety Code. KPMG Peat Marwick issued an
unqualified audit report which means that the Agency’s records fairly represent the
financial position of the various funds and account groups of the Redevelopment Agency
as of June 30, 1999.
Pursuant to the California Community Redevelopment Law, the Redevelopment Agency is
required to set aside at least 20% of the tax increment it receives each year for purposes
of increasing, improving and preserving the community’s supply of low and moderate
income housing. For fiscal year 1998-1999, a total of $2,015,504 of Agency tax increment
funds was set aside for low and moderate income housing to meet the 20% set aside
requirement as follows:
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1998-99 Redevelopment Agency Housing Set-Aside
Ocean Park 1A $ 276,605
Ocean Park 1B $ 36,365
Downtown Project $ 238,391
Earthquake Recovery $1,464,143.
$2,015,504
The attached annual report provides specific information on housing and other activities of
the Redevelopment Agency in Fiscal Year 1998-1999. Presentation of the annual report to
the City Council is required prior to its transmittal to the State Controller.
BUDGET/FISCAL IMPACT
There are no budget/fiscal impacts resulting from the approval of the Redevelopment
Agency’s Annual Report of Fiscal Year 1998-1999.
RECOMMENDATIONS
It is recommended that the Redevelopment Agency direct the Executive Director to
transmit the report to the Controller of the State of California.
Prepared by: Jeff Mathieu, Director of Resource Management
Mike Dennis, Director of Finance/Agency Controller
Robert Moncrief, Housing and Redevelopment Manager
Tina Rodriguez, Earthquake Recovery Administrator
Marty Kennerly, Administrative Services Officer
Mona Miyasato, Senior Administrative Analyst
Bill Jias, Senior Accountant
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Attachment A - Annual Report Summary for Fiscal Year 1998-99
Attachment B - KPMG Peat Marwick Independent Auditor’s Report for 1998-99
Attachment C - State Auditor Controller’s Report of Financial Transactions and
Statement of Indebtedness for Tax Year 1998-99
Attachment D - State Housing and Community Development Department Annual
Report of Housing Activity of Community Redevelopment Agencies for
Fiscal Year Ended 06/30/99
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Attachment B
KMPG Peat Marwick Independent Auditor’s Report
FINAL TO BE PROVIDED
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Attachment C
State Auditor Controller’s Annual Report of Financial Transactions and
Statement of Indebtedness for Tax Year 1998-99
TO BE PROVIDED
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Attachment D
State Housing and Community Development Department - Annual Report of Housing
Activities
TO BE PROVIDED
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