HomeMy WebLinkAboutPetaluma Public Financing Corporation Agenda 04/06/2015(i)
DATE: April 6, 2015
TO:
FROM:
SUBJECT:
Petaluma Public Financing Corporation
Honorable Mayor and Members of the City Council through City Manager
William Mushallo, Finance DirectorrA `—/
Annual Meeting of the City of Petaluma Public Financing Corporation
RECOMMENDATION
It is recommended that the Petaluma Public Financing Corporation Board of Directors approve
the Annual Meeting minutes of April 7, 2014, Open the Meeting for Public Comment, and
Accept the Public Financing Corporation's Annual Report.
BACKGROUND
The City of Petaluma Public Financing Corporation (PPFC), not-for-profit public benefit
corporation, was created in October, 1990 to provide financial assistance to the City by
acquiring, constructing and financing various facilities and then leasing them back to the City.
The PPFC issues debt in the form of Certificates of Participation (COPS). The by-laws of the
corporation require an annual meeting and a report on fiscal year activity.
DISCUSSION
Currently the City has one COP outstanding, the 2003 COP, which was originally issued by the
PPFC. The 2003 COP proceeds were used to refinance the airport portion of the 1993 COP and
to provide additional financing for the current airport hangar expansion project. This debt is the
responsibility of the Airport Fund. The FY 2014 principal and interest payments were made by
the City, and are current. The outstanding balance of the debt, $4,650,000, was included in the
City Annual Financial Report and additional information was disclosed in the notes to the
financial statements. This report is contained in the City's Comprehensive Annual Financial
Report because PPFC is a blended component unit of the City, for financial reporting purposes,
and does not issue its own financial statements. All activity is accounted for in the Airport Fluid.
FINANCIAL IMPACTS
None
ATTACHMENTS
1. Memo dated April 6, 2015 on the status of activity for FY 2013-14 from the Finance
Director
2. Petaluma Public Financing Corporation Annual Meeting Minutes from April 7, 2014.
2
ATTACHMENT 1
CITY OF PETALUMA, CALIFORNIA
MEMORANDUM
Finance Department, 11 English Street, Petaluma, CA 94952
(707) 778-4352 Fax (707) 778-4428 E-mail. fnnanct, ci petalunm.ca.rns
DATE: April 6, 2015
TO: John Brown, Chief Financial Officer
City of Petaluma Public Financing Corporation
FROM: William Mushallo, Finance Director
SUBJECT: City of Petaluma Public Financing Corporation Annual Report
The City of Petaluma Public Financing Corporation (PPFC) was created in October, 1990 to
provide financial assistance to the City by acquiring, constructing, and financing various
facilities, and then leasing them back to the City. The PPFC is a nonprofit public benefit
corporation, which has been used to issue debt in the form of one Certificate of Participation
(COP).
The by-laws of the PPFC require an annual meeting and a report on fiscal year activity. Below is
a report on the fiscal year 2013-2014 activity to comply with the requirements of the by-laws.
The City Council serves as the board for the Petaluma Public Financing Corporation and the
annual meeting is scheduled for April 6, 2015 to accept this report.
The 1993 Certificate of Participation (COP) was refunded in December, 2003. All of the debt
service requirements of the 2003 COP are the responsibility of the Airport Fund. The
outstanding balance as of June 30, 2014 for the 2003 COP was $4,650,000.
The debt service activity of the corporation is conducted by the City of Petaluma for the 2003
COP's. The City makes the principal and interest payments and the debt payments are current.
The debt and the related payments are recorded on the City's financial statements. The City
discloses the PPFC as a blended component unit in its notes to the financial statements.
ATTACHMENT 2
Excerpt from the Petaluma City Council Minutes of April 7, 2014:
ADJOURN TO ANNUAL MEETING OF THE PETALUMA PUBLIC FINANCING CORPORATION
Annual Meeting of the Petaluma Public Financing Corporation. (Mushallo))
Approval of Minutes of April 1, 2013; and,
Status Report and Audited Financials for Fiscal Year 2012-13
PRESENT: Chris Albertson, Teresa Barrett, David Glass, Mike Harris, Mike Healy, and Gabe Kearney.
ABSENT: Kathy Miller.
Finance Director Bill Mushallo
Chair Glass
Chair Glass opened PUBLIC COMMENT for the Petaluma Public Financing Corporation meeting.
Seeing no persons wishing to speak, Chair Glass closed PUBLIC COMMENT for the Petaluma
Public Financing Corporation meeting.
Motion to Approve A. Minutes of the Petaluma Public Financing Corporation Meeting of April 1,
2013, as presented. made by Teresa Barrett, seconded by Mike Harris.
Vote: Motion carried 6 - 0.
Yes: Chris Albertson, Teresa Barrett, David Glass, Mike Harris, Mike Healy, and Gabe Kearney.
Absent: Kathy Miller.
Chair Glass
General Counsel Eric Danly
Chair Glass
RECONVENE REGULAR MEETING OF CITY COUNCIL/PETALUMA COMMUNITY DEVELOPMENT
COMMISSION SUCCESSOR AGENCY (PCDSA)