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186 SECTION 9: SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY Pursuant to AB1x26, which dissolved redevelopment agencies in California, the City of El Cerrito elected to serve as the Successor Agency to the El Cerrito Redevelopment Agency. The Successor Agency assumed all of the Redevelopment Agency’s assets, liabilities and obligations. The City’s role is to serve as a fiduciary agent for the Successor Agency, administering payments and performance of its obligations. INTRODUCTION In June 2011, the State of California enacted AB1x26 (Dissolution Act) to dissolve all redevelopment agencies in the State of California and establish successor agencies to wind down the former redevelopment agencies’ affairs. The legislation resulted in suspension of all activities of the El Cerrito Redevelopment Agency (RDA) on July 1, 2011. On August 15, 2011, the City elected to serve as the Successor Agency to the El Cerrito Redevelopment Agency (Successor Agency). On December 29, 2011, the State Supreme Court issued a decision that dissolution of redevelopment agencies is constitutional. The RDA was dissolved on February 1, 2012 and the Successor Agency was established to settle the RDA’s affairs. The City’s role as the Successor Agency is limited to taking actions necessary to facilitate completion and/or payment of the Successor Agency’s obligations, as permitted by an oversight board and the California Department of Finance. The Successor Agency does not have budget discretion and therefore a budget is not being proposed. As the RDA was dissolved, it no longer has budget authority. For informational purposes, this section includes a reporting of the RDA’s FY2011-12 activity through its dissolution. As provided in the Dissolution Act, the City also elected to assume the RDA’s affordable housing functions. The RDA’s encumbered funds and assets related to affordable housing were transferred to a newly established City Low & Moderate Income Housing Fund to complete projects that were underway. The Housing Fund and the City’s recently established housing functions are separate from the Successor Agency, and are budgeted in the Economic Development & Housing Division of City Management in the City’s Operating Budget. The Dissolution Act no longer provides a twenty percent Low & Moderate Income Housing set-aside. All funds, assets and liabilities remaining in the RDA’s accounts as of dissolution were transferred to a Fiduciary Fund called the Redevelopment Obligation Retirement Fund (RORF) established for the purpose of administering the Successor Agency. The Successor Agency is not a component unit of the City of El Cerrito and the City did not assume the Successor Agency’s assets and liabilities. Rather, the Successor Agency is charged with disposing of the assets and using any revenues that would have gone to the former RDA to pay enforceable obligations and the City has simply elected to serve as the administrator. In El Cerrito’s case, the non-cash assets transferred were of nominal value and cash transferred was sufficient to meet the Successor Agency’s short-term obligations. ---PAGE BREAK--- 187 The Dissolution Act provides a process for authorization of payments to be made on the Successor Agency’s recognized obligations. Each spring and fall, the Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) for an upcoming six- month period, which is subject to approval of an oversight board and the California Department of Finance (DOF). Once approved, a ROPS serves as the spending plan during its operative period and the County Auditor-Controller (CAC) disburses funds sufficient for the Successor Agency to make payments on the approved ROPS. The Jan- Jun 2012 ROPS and Jul-Dec 2012 ROPS were approved by the Oversight Board in May 2012. The Jan-Jun 2013 ROPS will be prepared in November 2012. Expenditure or transfer of funds from the RORF is only permitted after consideration and approval of the payments on a ROPS by the Oversight Board, DOF and CAC. FORMER RDA FINANCES The RDA was funded through tax increment generated from the City of El Cerrito Redevelopment Project Area, which was established and its Redevelopment Plan adopted in 1977. The Redevelopment Plan was amended and restated in 1993. Each year’s tax increment is the incremental difference in property tax revenue generated within the Project Area between that year and the base year of 1977. The Dissolution Act re-characterizes tax increment as Redevelopment Property Tax (RPT), but it is calculated in the same manner. Chart 9-1 illustrates the growth in assessed value of the Project Area from its inception through dissolution. Of particular note is the nine percent drop in value between the market peak of FY 2008-09 and the dissolution in FY 2011- 12. Chart 9-1 Historical Assessed Valuation City of El Cerrito Redevelopment Project Area (in millions) Market Peak $631.4M in FY08/09 $572.7M in FY11/12 Down 9% from Peak $0 $100 $200 $300 $400 $500 $600 $700 Base Assessed Value $92.9M in FY77/78 ---PAGE BREAK--- 188 Of particular note is the nine percent drop in assessed value for the Project Area between the market peak of FY2008-09 and the RDA dissolution in FY2011-12 resulting from the economic downturn. The RDA experienced a drop in tax increment revenue during the downturn, but more significant was the language of the Dissolution Act that effectively delayed RPT payments by six months. What would have been $4.3 million in tax increment revenue to the RDA paid in two installments during FY2011-12 became a single tax increment payment of $2.2 million in December 2011, with the remaining $2.1 million being paid at RPT to the Successor Agency in June 2012 to be used for RDA obligations in FY 2012-13. The impact of the Dissolution Act is illustrated in Chart 9-2. Chart 9-2 Historical Tax Increment Revenue to the El Cerrito Redevelopment Agency City of El Cerrito Redevelopment Project Area (in millions) Table 9-1 summarizes the RDA’s FY 2011-12 revenues and expenses through dissolution on February 1, 2012. RPT received and obligations paid by the Successor Agency during FY 2011-12 are not included on this table, but are described later in this section. $5.4M in FY08/09 $2.2M in FY11/12 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 ---PAGE BREAK--- 189 Table 9-1 Redevelopment Agency Operating Funds Non-Housing (801); Housing (802); Debt Service (804, 814) SUCCESSOR AGENCY FINANCES The Successor Agency’s anticipated revenues include the equivalent of the tax increment the RDA would have been entitled to collect in the City of El Cerrito Redevelopment Project Area over the life of the City of El Cerrito Redevelopment Plan through FY 2024-25 and possibly an insignificant amount of proceeds from loan receivables or asset sales. Anticipated expenses are all debts and costs to perform on obligations of the former RDA, as permitted under the Dissolution Act. Any proceeds or revenues not needed to make payments on the Successor Agency’s obligations are to be distributed to taxing entities that would have otherwise received the tax increment or property tax revenues in the Redevelopment Project Area. Property values in the Redevelopment Project Area appear to be stabilizing and perhaps returning to a positive trajectory, but there is sufficient uncertainty about the impact of redevelopment dissolution that it is prudent to use conservative growth projections. Table 9-2 is a projection of RPT that may be disbursed to the Successor Agency for its obligations through expiration of the City of El Cerrito Redevelopment Plan in FY 2024- 25. It is based on a constant three percent annual growth in assessed value. Non-Housing Housing Debt Service Total Revenues Property Taxes 4,018,809 $ 1,004,702 $ 5,023,511 $ Uses of Money 74,000 5,900 1,000 $ 80,900 Intra-Agency Transfers 1,923,694 1,923,694 Total 4,092,809 $ 1,010,602 $ 1,924,694 $ 7,028,105 $ Expenditures Personnel Services 276,375 101,771 378,146 Professional Services 275,000 97,000 372,000 Property Services 92,000 19,400 111,400 Other Services 67,940 5,220 73,160 Supplies 13,200 700 13,900 Property & Capital - Principal/Interest Payments 288,215 44,000 1,924,694 2,256,909 Other Objects, incl. Pass Thru Payments 1,303,292 13,921 1,317,213 Loans & Grants 477,297 477,297 Transfers to General Fund 1,016,031 218,350 1,234,381 Transfers to CIP Fund - Total 3,332,053 977,659 1,924,694 6,234,406 Intra-Agency Transfers 1,321,792 601,902 1,923,694 Total 4,653,845 $ 1,579,561 $ 1,924,694 $ 8,158,100 $ ---PAGE BREAK--- 190 Table 9-2 Projected Redevelopment Property Tax through FY2024-25 City of El Cerrito Redevelopment Project Area Fiscal Year ROPS period Projected RPT County Admin AB1x26 Admin Projected RPT Disbursement 2011-12 Jan-Jun 636,454 $ 636,454 2012-13 Jul-Dec 2,177,214 (48,673) $ 2,128,541 Jan-Jun 2,866,324 (73,010) $ 2,793,314 2013-14 Jul-Dec 2,605,749 (54,721) $ 2,551,028 Jan-Jun 2,966,882 (82,081) $ 2,884,801 2014-15 Jul-Dec 2,427,449 (53,943) $ 2,373,505 Jan-Jun 3,081,600 (80,915) $ 3,000,685 2015-16 Jul-Dec 2,521,309 (56,029) $ 2,465,280 Jan-Jun 3,188,616 (84,044) $ 3,104,572 2016-17 Jul-Dec 2,608,868 (57,975) $ 2,550,893 Jan-Jun 3,298,843 (86,962) $ 3,211,880 2017-18 Jul-Dec 2,699,053 (59,979) $ 2,639,074 Jan-Jun 3,412,376 (89,968) $ 3,322,408 2018-19 Jul-Dec 2,791,944 (62,043) $ 2,729,901 Jan-Jun 3,529,316 (93,065) $ 3,436,251 2019-20 Jul-Dec 2,887,622 (64,169) $ 2,823,452 Jan-Jun 3,649,763 (96,254) $ 3,553,509 2020-21 Jul-Dec 2,986,170 (66,359) $ 2,919,811 Jan-Jun 3,773,824 (99,539) $ 3,674,285 2021-22 Jul-Dec 3,087,675 (68,615) $ 3,019,060 Jan-Jun 3,901,607 (102,922) $ 3,798,685 2022-23 Jul-Dec 3,192,224 (70,938) $ 3,121,286 Jan-Jun 4,033,224 (106,407) $ 3,926,816 2023-24 Jul-Dec 3,299,910 (73,331) $ 3,226,579 Jan-Jun 4,168,789 (109,997) $ 4,058,792 2024-25 Jul-Dec 3,410,827 (75,796) $ 3,335,031 Jan-Jun 4,308,421 (113,694) $ 4,194,726 Totals $ 83,512,052 $ (812,573) $ (1,218,859) $ 81,480,620 Note that RPT projected for each ROPS period is actually tax revenue collected and distributed by the CAC during a prior ROPS period as the Dissolution Act arbitrarily shifted the funding perspective by six months. For example, the $2.18 million projected for Jul-Dec 2012 is property tax paid by tax payers in FY2011-12, but then distributed by the CAC on June 1, 2012 for the purposes of payment Jul-Dec 2012 ROPS items in the subsequent fiscal year. Also note that the $636,454 shown in the first line of the table is the amount of tax increment paid to the RDA prior to dissolution that remained unspent as of January 31, 2012 and was swept to the RORF on February 1, 2012. OBLIGATIONS The Successor Agency is responsible for the former RDA’s debts and obligations, which were compiled on an initial Recognized Obligations Payment Schedule in February 2012. Those obligations are as follows: ---PAGE BREAK--- 191 Tax Allocation Bond Payments. The RDA had four tax allocation bonds issuances with payments due on January 1 and July 1 of each year. Due to the timing of the payments, they are included on the ROPS prepared for the period prior to the due date so that the Successor Agency can collect the funds and fund the payments with the bond trustee 15 days in advance. Debt service obligations on the Successor Agency’s ROPS are summarized in Table 10-3 as follows: Table 9-3 Tax Allocation Bond Debt Service Summary El Cerrito Redevelopment Agency Debt Issue Balance (Jan 31, 2012) ROPS for Jan-Jun/2012 ROPS for Jul-Dec 2012 & Jan-Jun 2013 1997A – Refunding of 1991 Bonds (Del Norte Area Projects) $4,662,048 $470,868 $553,805 1998B - Refunding of 1993 Bonds (Del Norte Place Project) $1,071,038 $195,200 $216,750 2004A - Public Improvements (Tax- Exempt) $13,636,426 $213,114 $971,228 2004B - Economic Development & Affordable Housing Projects (Taxable) $481,045 $481,045 $0 Note that all taxing entities affected by the Redevelopment Plan had subordinated their pass-through payments to payments on the RDA’s bond debt, so if insufficient tax increment or RPT Revenue are available to make bond debt service payments, pass- through payments will be deferred to a future ROPS. Valente Note. The principal balance of the loan was $2.3 million on January 31, 2012. Payments of $288,215 are due March 5th of each year. The purpose of the note was seller financing of land acquisition for a key site for revitalization of the Del Norte BART area with transit-oriented development. The note is secured by a third-party deed of trust on the property, now owned by the El Cerrito Municipal Services Corporation (MSC). The MSC recorded a performance deed of trust against the property, which is an asset of the Successor Agency, agreeing to develop the property pursuant to Health & Safety Code 33433 and return any proceeds from future development to the RDA. The current value of the property is less than the balance due on the note. The Successor Agency will need to coordinate with both the note holder and the MSC on future transactions involving development of the property and/or repayment or the note. Cooperation Agreement with the El Cerrito Municipal Services Corporation. In February 2011, the RDA entered into a Public Improvements and Cooperation Agreement for the City of El Cerrito Redevelopment Project Area with the City of El Cerrito. The City partially assigned the Cooperation Agreement to the MSC, which is a separate nonprofit, public benefit corporation. The balance of the contract on January 31, 2012 was $105 million, based on projections made in February 2011 of tax increment available and project/program costs in the RDA’s Five-Year Implementation Plan. The total of all payments on the draft ROPS through FY 2024-25 totaled $23 ---PAGE BREAK--- 192 million, based on the projects and programs likely to be implemented given the more limited funding availability. No payment was included on the Jan-Jun 2012 ROPS, but the combined payments on ROPS for FY2012-13 is $1.287 million. Projects to be funded include economic development activities, development of MSC-owned land, coordination with City and other transit agencies on sustainable transit-oriented development efforts. The Cooperation Agreement is key to increasing the property tax base and will benefit the City and all taxing entities serving the Redevelopment Project Area over the long term. When insufficient RPT is available, payments will be rolled forward to a subsequent ROPS. Undisbursed Loan Commitments. On January 31, 2012, the RDA had contracts with two affordable housing developers to make predevelopment loans on housing projects already underway. Eden Housing is pursuing an affordable senior housing/mixed-use project adjacent to City Hall on City-owned property. The outstanding commitment on the loan on January 31, 2012 was $310,000. The balance was listed as an obligation for the Jan-Jun 2012 ROPS period, but will be rolled forward to a subsequent ROPS should insufficient RPT be available. Ohlone Gardens LP has already entitled an affordable multi-family/special needs project on Portola Drive on property purchased in part with a loan from the RDA. Ohlone Gardens LP is relying upon the remaining predevelopment loan commitment to secure other funding sources. The balance of $471,152 on January 31, 2012 was listed as an obligation for the Jan-Jun 2012 ROPS, but will be rolled forward to a subsequent ROPS should insufficient RPT be available. Cooperation Agreement with the City of El Cerrito. In February 2011, the RDA entered into a Public Improvements and Cooperation Agreement for the City of El Cerrito Redevelopment Project Area with the City of El Cerrito, which included the affordable housing program funded with the Low & Moderate Income Housing twenty percent set- aside. The balance of the contract on January 31, 2012 was $50 million, based on projections made in February 2011 of tax increment available and project/program costs in the RDA’s Five-Year Implementation Plan. The total of all payments on the draft ROPS through FY 2024-25 totaled $8 million, based on the projects and programs likely to be implemented given the more limited funding availability. Annual payments through 2025 are based on projections made in February 2011 of tax increment available and project/program costs in the RDA’s Five-Year Implementation Plan. No payment was included on the Jan-Jun 2012 ROPS, but the combined payments on ROPS for FY2012-13 is $458,000. Both current housing projects and ongoing housing activities are funded through this Cooperation Agreement. More specifically, the Cooperation Agreement funds project-related staffing and ongoing compliance monitoring obligations. Creation of affordable housing has an indirect fiscal impact on the City and taxing entities serving the Redevelopment Project Area over the long term, and is crucial to equitable and sustainable revitalization of San Pablo Avenue by increasing residential density and quality development. When insufficient RPT is available, payments will be rolled forward to a subsequent ROPS. ERAF and SERAF Loan Payments. In prior years, the RDA borrowed housing funds from the Low & Moderate Income Housing Fund to make payments to the State for the Educational Revenue Augmentation Fund (ERAF) in 2005 and 2006 and the Supplemental ERAF in 2010. The combined balance of the loans on January 31, 2012 ---PAGE BREAK--- 193 was $1,663,091. There are four annual payments due in June of 2012 through 2015 of $415,773. State law requires repayment of the loans in full by June 2015 to the City’s Low & Moderate Income Housing Fund for use on affordable housing. When insufficient RPT is available, payments will be rolled forward to a subsequent ROPS. Pass-through payments to taxing entities. There are multiple interpretations of the Dissolution Act regarding the calculation of payments to taxing entities. As of May 2012, the Successor Agency was provided a calculation of the pass-through payments that would have been due to taxing entities for FY 2011-12 if the RDA had not been dissolved, which totaled $922,714. The portion of pass-through payments that would have been paid in December 2011 totaling $507,493 was included on an amended Jan- Jun 2012 ROPS. However, based on the projections provided by the County Auditor- Controller, there will be insufficient RPT available to make the debt service payments due on July 1, 2012, so the Successor Agency has informed the County Auditor- Controller that the FY 2011-12 pass-through payments should be subordinated. The FY 2011-12 pass-through payments will be rolled forward to a subsequent ROPS when sufficient RPT is available to make the payments. Administrative cost allowance. The Successor Agency is entitled to an administrative cost allowance of $250,000 per fiscal year. The Successor Agency has a separate obligation to prepare a budget for approval by the Oversight Board, but the amount of the allowance is $250,000 regardless. However, should there be insufficient funds available for obligations payable in any ROPS period, the administrative allowance for that ROPS period will be the first item to be reduced or deferred. When insufficient RPT is available, any unpaid administrative allowance will be rolled forward to a subsequent ROPS. Table 9-4 is a summary of the Successor Agency’s projected obligations through FY 2024-25 including the Successor Agency’s Administrative Allowance, but excluding pass-through payments, pending determination of their calculation method. Any residual amount between the RPT collected and paid on the Successor Agency’s obligations will be distributed to the taxing entities. Recognized Obligations Payment Schedules submitted for Jan-Jun 2012 and Jul-Dec 2012 were based on these initial amounts. Table 9-4 Summary of Draft Recognized Obligation Payment Schedule Through FY2024-25 City of El Cerrito Redevelopment Project Area Fiscal Year ROPS Period Debt Service Promissory Note Hsg Loans ERAF & SERAF MSC Agmt Hsg Agmt Admin Allow Total 2011-12 Jan-Jun $ 1,543,109 $ 288,215 $ 781,152 $ 415,773 $ 250,000 $ 3,278,249 2012-13 Jul-Dec 406,139 - 643,500 229,000 250,000 $ 1,528,639 Jan-Jun 1,591,139 288,215 415,773 643,500 229,000 $ 3,167,627 2013-14 Jul-Dec 379,705 - 675,500 241,500 250,000 $ 1,546,705 Jan-Jun 1,694,705 288,215 415,773 675,500 241,500 $ 3,315,693 2014-15 Jul-Dec 351,115 - 713,000 267,500 250,000 $ 1,581,615 Jan-Jun 1,776,115 288,215 415,773 713,000 267,500 $ 3,460,603 2015-16 Jul-Dec 319,561 - 748,500 281,000 250,000 $ 1,599,061 Jan-Jun 1,849,561 288,215 748,500 281,000 $ 3,167,276 2016-17 Jul-Dec 285,609 - 786,000 295,000 250,000 $ 1,616,609 Jan-Jun 2,010,609 288,215 786,000 295,000 $ 3,379,824 ---PAGE BREAK--- 194 2017-18 Jul-Dec 247,241 - 825,500 309,500 250,000 $ 1,632,241 Jan-Jun 1,697,241 288,215 825,500 309,500 $ 3,120,456 2018-19 Jul-Dec 213,691 - 866,500 325,000 250,000 $ 1,655,191 Jan-Jun 1,868,691 288,215 866,500 325,000 $ 3,348,406 2019-20 Jul-Dec 175,585 - 910,000 341,500 250,000 $ 1,677,085 Jan-Jun 1,545,585 288,215 910,000 341,500 $ 3,085,300 2020-21 Jul-Dec 143,850 - 955,500 358,500 250,000 $ 1,707,850 Jan-Jun 2,013,850 288,215 955,500 358,500 $ 3,616,065 2021-22 Jul-Dec 99,200 - 1,003,500 376,500 250,000 $ 1,729,200 Jan-Jun 2,109,200 288,215 1,003,500 376,500 $ 3,777,415 2022-23 Jul-Dec 51,250 - 1,053,500 395,000 250,000 $ 1,749,750 Jan-Jun 2,201,250 288,215 1,053,500 395,000 $ 3,937,965 2023-24 Jul-Dec - 1,106,000 415,000 250,000 $ 1,771,000 Jan-Jun 288,215 1,106,000 415,000 $ 1,809,215 2024-25 Jul-Dec - 1,161,500 435,500 250,000 $ 1,847,000 Jan-Jun - 1,161,500 435,500 $ 1,597,000 Totals $ 24,574,001 $ 3,746,795 $ 781,152 $ 1,663,092 $ 22,897,000 $ 8,541,000 $ 3,500,000 $ 65,703,040 ADMINISTRATIVE BUDGET The Dissolution Act requires the Successor Agency to prepare a budget for approval by the Oversight Board. Table 9-5 is the FY 2012-13 Administrative Budget approved by the Successor Agency on April 16, 2012 and by the Oversight Board on May 7, 2012. Table 9-5 Approved FY 2012-13 Administrative Budget Successor Agency to the El Cerrito Redevelopment Agency Entity/Activity Successor Agency Oversight Board Staffing Functions (Total Compensation plus Overhead for Indirect Costs) City Management $50,000 $30,000 Finance $50,000 $30,000 Risk Management $4,000 $2,000 Economic Development $25,000 $10,000 City Clerk $15,000 $10,000 Information Systems $4,000 $4,000 Legal Services $75,000 Financial & Audit Services $25,000 Bond-related Costs $10,000 Supplies $1,500 $500 Postage $250 $250 Copies $500 $500 Website $3,000 $1,500 Advertising/Legal Notices $3,000 $3,000 Property Management $1,000 Total $267,250 $91,750 Combined Total $359,000 Funding Source Redevelopment Property Tax Trust Fund $250,000 Unfunded $109,000 ---PAGE BREAK--- 195 The amounts in Table 9-5 are not budgeted in addition to the City’s Operating Budget, but rather are included within it, and are displayed here for informational purposes. Actual expenses of administering the Successor Agency will be charged to the City’s General Fund and the Administrative Allowance will be reflected as revenue in the City’s General Fund when it is reimbursed by the Successor Agency. However, should there be insufficient RPT available for obligations payable in any ROPS period, payment of the Administrative Allowance for that ROPS period will be the first item to be reduced by the CAC when distributing RPT to successor agencies. In this case, the Successor Agency will place any unpaid Administrative Allowance on a subsequent ROPS for payment when funds are available. The City is entitled to an administrative allowance of $250,000 annually, regardless of its actual expenses. As such, City staff will minimize expenses to the greatest degree possible, but the budget was prepared recognizing that setting up the Successor Agency is potentially costly given the complexity of the legislation. . ---PAGE BREAK--- 196 SECTION 10: OTHER ENTITIES The City Council of the City of El Cerrito serves as members of the governing body of two other entities: the Employee’s Pension Board and the Public Financing Authority, These entities are separate agencies from the City and the Redevelopment Agency and are accounted for separately. EMPLOYEES’ PENSION FUND The City of El Cerrito Employees’ Pension Fund is a component unit of the City of El Cerrito and a separate fund is maintained by the City to account for the Plan assets. The City Council serves as the Pension Board. The Pension Board has exclusive control over the pension plan and accordingly, the City is financially accountable for the Plan and its operation. This Fund provides a pension system for those former employees of the City who, on February 6, 1959, chose not to be covered by Social Security or by the California Public Employees’ Retirement System. The Plan is a single-employer defined pension plan. There are three participants in this pension system—all retired. This Fund provides for the: Disbursement of appropriate pension payments; Maintenance of true and correct records of all contributions to and payments from the Pension Fund; and Services of actuaries who render a report every three years, or as needed, as to the costs of maintaining properly funded reserves for this pension fund. The most recent report was prepared as of July 1, 2009. Payments into this Fund are based upon actuarial studies of the estimated costs of meeting the City’s obligations under the retirement contract with the members of this system. The goal is to have the reserve fund balances decrease as the pension liability decreases. No new members may join this plan. The revenues and expenditures of the Employees’ Pension Board are shown in Tables 10-1 and 10-2: ---PAGE BREAK--- 197 Table 10-1 Pension Fund Revenues Revenue Source Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Contribution-General Fund $149,466 $148,500 $112,500 Total $148,466 $148,500 $112,500 Table 10-2 Pension Fund Expenditures Accounts Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Other Charges $2,490 $1,500 $1,500 Pension Payments 146,976 147,000 111,000 Total $148,466 $148,500 $112,500 PUBLIC FINANCING AUTHORITY The City of El Cerrito Public Financing Authority (PFA) has been utilized since FY 2002- 03 to account for the debt service for Measure A Lease Revenue Bonds used to fund the swim center reconstruction. In FY 2006-07 the PFA issued Lease Revenue Bonds needed to finance construction of the new City Hall and in FY 2007-08 issued Sales Tax Revenue Bonds to fund the Street Improvement Project. The Board of Directors of the Authority consists of members of the elected City Council of El Cerrito, the El Cerrito City Manager and the El Cerrito Administrative Services Director. It is being anticipated that in FY12-13 a refunding will occur that reduced the reserve requirement by half. Revenues and expenditures for the Authority are shown in Tables 11-3 through 11-8. Table 10-3 Measure A Finance Authority Revenues Revenue Source Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Interest Earnings $27 $300 $300 Xfr in-Measure A Parcel Tax 363,577 371,005 362,305 Total $363,604 $371,305 $362,305 Table 10-4 Measure A Finance Authority Expenditures Accounts Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Other Charges $6,655 $6,250 $6,250 Transfer to Reduce Reserve 185,000 Principal Payments 235,000 245,000 255,000 Interest Payments 128,577 120,055 110,800 Total $370,232 $371,305 $557,050 ---PAGE BREAK--- 198 Table 10-5 City Hall Finance Authority Revenues Revenue Source Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Interest Earnings $23 $300 $300 Xfr in- General Fund 596142 598,107 $599,000 Total $596,165 $598,407 $599,300 Table 10-6 City Hall Finance Authority Expenditures Accounts Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Other Charges $750 $1,000 $1,000 Principal Payments 195,000 205,000 215,000 Interest Payments 400,407 392,407 384,000 Total $596,157 $596,407 $600,000 Table 10-7 Street Improvement Finance Authority Revenues Revenue Source Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Interest Earnings $118 $1,000 $1,000 Xfr in- Street Imp Fund 744,037 $737,653 740000 Total $744,155 $738,653 $741,000 Table 10-8 Street Improvement Finance Authority Expenditures Accounts Actual FY 2010-11 Amended FY 2011-12 Proposed FY 2012-13 Other Charges $3,100 $1,000 $1,000 Principal Payments 240,000 245,000 245,000 Interest Payments 501,053 492,653 492,653 Total $744,155 $736,653 $738,653 ---PAGE BREAK--- 199