HomeMy WebLinkAboutPPFC Staff Report 1.A 04/16/2012 4o.e,vtd a, IteMfv#1 .A
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DATE: April 16, 2012
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Bill Mushallo, Finance Director
SUBJECT: 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 March 7, 2011, 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 2011 principal and interest payments were made by
the City, and are current. The outstanding balance of the debt, $5,250,000, was-includedin the
City Annual Financial Report (CAFR) 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
Agenda Review:
City Attorney Finance DY ecto V /City Manage�l -
ATTACHMENTS
1. Memo dated April 16, 2012 on the status of activity for FY 2010-11 from the Finance
Director
2. Petaluma Public Financing Corporation Annual Meeting Minutes from March 7, 2011
ATTACHMENT I
CITY OF PETALUMA, .CALIFORNIA
MEMORANDUM
Finance Department, 11 English Street,Petaluma, CA 94952
(707) 778-4352 Fax.(707) 778-4428 E-mail:finance@ct.petaluma.ca.us
DATE: April 16, 2012.
TO: John Brown, Chief Financial Officer
City of Petaluma.Public Financing Corporation
FROM: Bill 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 2010-2011 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 16, 2012 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, 2011. for the 2003 COP was $5,250,000.
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 March 07, 2011:
ADJOURN TO ANNUAL MEETING OF THE PETALUMA PUBLIC FINANCING CORPORATION
1. NEW BUSINESS
A. Annual Meeting of the Petaluma Public Financingtorporation.
Status.Report and Audited Financials for Fiscal Year.2009-10.
Approval of Minutes of March 1, 2010. (Mahoney)
Interim Finance Director Susan Mahoney
Public Comment on Item 1.A
No Public Comment
Interim Finance Director Susan Mahoney
Mayor Glass
Motion: Approve A. P.etaluma Public Financing Corporation Status Report and
Audited Financials for Fiscal Year 2009-10 Minutes of March 1, 2010, as
presented.
Moved by Teresa Barrett, seconded by Mike Healy.
Vote: Motion carried 4-0.
Yes: Teresa Barrett; David Glass; Mike Healy; Tiffany Renee:
No: None
Abstain: None
Absent: Chris Albertson; Mike Harris; Gabe Kearney
RECONVENE'REGULAR CITY COUNCIL/PCDC MEETING