HomeMy WebLinkAboutStaff Report 3.A 04/17/2017i
DATE:
TO:
FROM:
SUBJECT
Agenda Item #3.A
April 17, 2017
Honorable Mayor and Members of the City Council through City Manager
William Mushallo, Finance Director
Petaluma Public Financing Corporation Status Report and Audited Financials for
Fiscal Year 2015 -16.
RECOMMENDATION
It is recommended that the Petaluma Public Financing Corporation Board of Directors Accept
the Status Report and Audited Financials for Fiscal Year 2015 -16.
BACKGROUND
The City of Petaluma Public Financing Corporation (PPFC), a 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 no COP's outstanding. The 2003 COP, which was originally issued by the
PPFC and used to refinance the airport portion of the 1993 COP and to provide additional
financing for the current airport hangar expansion project was retired in FY2015 -16. This debt
was the responsibility of the Airport Fund. The FY 2016 principal and interest payments were
made by the City and were included in the City's 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 Fund.
FINANCIAL IMPACTS
None
ATTACHMENT
Memo dated April 17, 2017 on the status of activity for FY 2015 -16 from the Finance Director.
ATTACHMENT 1
CITY OF PETALi1MA, CALIFORNIA
MEMORANDUM
Finance Department, 11 English Street, Petaluma, CA 94952
(707) 778 -4352 Fax (707) 778 -4428 E -mail: finance@acipetahona.ca.us
DATE: April 17, 2017
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 2015 -2016 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 17, 2017 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 COP's
were retired during fiscal year 2015 -2016 with the issuance of the 2016 Airport Lease
Obligation. They are no longer part of the Public Financing Corporation.
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.
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