Item 5: URA - Resolution Acknowledging Receipt of FY07 Financial Report

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Urban Renewal Agency Revenues by Source Taxes - 82.1% Capital grants and contributions - 2.7% Fines, fees, and charges for services - 4.7% Investment earnings - 10.5% Fund-based Financial Analysis As previously discussed, the Agency uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the Agency’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Agency’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Agency’s governmental funds reported combined ending fund balances of $12,514,732. Approximately 81% of this total amount ($10,108,571) constitutes unreserved fund balance, which is available for spending at the Agency’s discretion. The remainder of fund balance ($2,406,161) is reserved to indicate that it is not available for new spending because it has already been committed for assets held for resale. The General Fund is the chief operating fund of the Agency. At the end of the current fiscal year, the total fund balance was $2,590,811, of which $2,051,882 is unreserved. As a measure of the General Fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Unreserved fund balance is 3.5 times larger than total General Fund expenditures. General Fund Budgetary Highlights The difference between the original budget and the final amended budget was an increase of $140,757. This increase was funded by unspent resources from the prior year. Capital Assets . The Agency’s investment in capital assets for its governmental activities as of June 30, 2007 Capital assets amounted to $5,561,595 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, buildings and building improvements, improvements other than buildings, and infrastructure. è