HomeMy WebLinkAbout03 - ReportCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 3
July 27, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Tracy McCraner, Administrative Services Director
(949) 644 -3123 or tmccraner @newportbeachca.gov
Dan Matusiewicz, Deputy Administrative Services Director
(949) 644 -3126 or dmatusiewicz @newportbeachca.gov
SUBJECT: Newport Beach Public Facilities Corporation
RECOMMENDATION:
It is recommended the City Council convene the meeting of the City of Newport Beach
Public Facilities Corporation for the 2010 -11 fiscal year, elect officers, approve minutes
of the July 14, 2009 meeting and receive and file this brief financial report.
DISCUSSION:
Background:
A common and efficient way to finance public facilities is through the use of Certificates
of Participation (COPS) but they are dependant on a lease revenue stream between two
entities. The City of Newport Beach Public Facilities Corporation was first formed for this
purpose in 1988 in order to specifically finance the acquisition and construction of the
Cannery Village Parking Lot. The Corporation's role was later expanded to allow for the
construction of public facilities, more generally, when financing of the Central Library
construction was necessary in 1992.
The Bylaws of the Corporation call for an annual meeting of the Board of Directors. The
City Council sits as the Board, with the City Manager serving as Secretary, and the
Administrative Services Director serving as Treasurer. Normally, the Mayor will serve as
Chairperson of the Board, with the Mayor Pro -Tem serving as Vice - Chairperson.
Newport Beach Public Facilities Corporation
July 27, 2010
Page 2
The COPs for the Cannery Village Parking lot were paid off in 1993. The original
Library COPs of $7,500,000 were issued with a term of 25 years but were refunded in
1998 for a net economic gain of $495,745. The principal amount of the refunded COPs
totaled $7,330,000 and has an approximate annual debt service of $565,000. They will
reach final maturity on June 1, 2019. The current outstanding principal balance of the
refunded Library COPS is $3,990,000.
Environmental Review:
This action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical
change to the environment, directly or indirectly.
Public Notice:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Funding Availability:
There is no funding required by this action.
Alternatives:
Not applicable.
Prepared by:
Deputy Director
Administrative Services
Attachments: Agenda
Minutes of the July 14, 2009 meeting
Financial Statements
Submitted by:
C
Tracy McCr r
Director
Administrative Services
NEWPORT BEACH PUBLIC FACILITIES CORPORATION
Balance Sheet
June 30, 2010
Library
COP
Assets
Cash and investments $
Cash with fiscal agent 565,655
Due from other funds -
Other
Total Assets $ 565,655
Liabilities and Fund Balances
Liabilities:
Accounts payable $
Due to other funds
Total Liabilities
Fund balances:
Nonspendable
Restricted for:
Debt Service
Committed
Assigned
Unassigned
Total fund balance
565,655
565,655
Total liabilities and fund balance $ 565,655
NEWPORT BEACH PUBLIC FACILITIES CORPORATION
Statement of Revenues,
Expenditures and Changes in Fund Balances
For the Year ended June 30, 2010
Library
COP
Revenues:
Lease revenues $ 547,257.43
Investment income 21,999
Other -
Total revenues 569,257
Expenditures:
Current:
General government -
Public safety -
Public works -
Community development -
Community services -
Capital outlay -
Debt service:
Principal 345,000
Interest and fiscal charges 224,379
Service fees -
Total expenditures 569,379
Excess (deficiency) of revenues
over expenditures (123)
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance (123)
Fund balance, beginning 565,778
Fund balance, ending $ 565,655