REPORT:
Finance Committee
SYNOPSIS:
The Finance Committee met Friday March 8, 2002 and discussed the issues
detailed in the Committee report.
RECOMMENDED ACTION:
Receive and file this report.
Norma J. Glover, Chairman
Finance Committee
Attendance: Present were Committee members Jane Carney, Norma
Glover and Leonard Paulitz. Absent were Committee members Michael Antonovich
and William Burke.
Discussion Item:
Midyear Budget Report: Rick Pearce, Chief Financial
Officer, briefed the Committee on the current status of the FY 2001-02
Budget. As of January 2002, the Board has approved several budget amendments
totaling approximately $6 million, bringing the FY 2001-02 amended Budget to
just over $102 million. At midyear (seven months) the AQMD had expended 55%
of its budget and collected 56% of the estimated revenues. Based on a
comparison of midyear and year-end actuals for the prior budget year, it is
projected that the AQMD will end this year balanced with approximately $97.1
million in expenditures and estimated revenues of $97.2 million. The
Committee also discussed the financial impacts on the AQMD from the proposed
State cutbacks in Subvention funding to local air quality districts.
Status on Evaluation of 3rd Floor North Diamond Bar
Facility: Sylvia Oroz, Business Services Manager, updated the
Committee on the analysis being performed regarding completion of 3rd
Floor North, which would add approximately 16,000 sq. ft. of additional
space available for leasing. The analysis will look at factors that could
impact the build-out of the 3rd Floor. These factors include
parking; relocation of AQMD storage; limitation of leasing space for private
use; possibility of additional space vacated by the Dept. of Treasury;
review of leasing market in the area; and the financial feasibility of the
project requirements for additional parking and leasing options.
Proposed Refunding of Diamond Bar Installment Sale Revenue Bonds –
Series 1992: Rick Pearce briefed the Committee on the proposed
Current Refunding of callable outstanding debt. The Diamond Bar Facility has
twelve years remaining (2014) on its debt payments. The current par amount
of its bonds outstanding is $56.2 million with $25.4 million callable. The
District, through the AQMD Building Corporation, is proposing to refund the
callable portion of its debt resulting in estimated present value savings of
$1.3 million and to restructure the debt payments to even out payments over
the remaining twelve years. Based on the briefing, the Committee discussed
the advantages/disadvantages of fixed rate versus variable rate bonds. Mr.
Pearce explained that at present both bond rates are at historic lows. The
Committee felt that it was to the AQMD’s advantage to lock in low fixed rate
debt for the remaining twelve years rather than risk the uncertainties of
variable rate bonds. In addition, based on the outcome of a separate
analysis regarding the economics and feasibility of completing the 3rd
Floor North, the Committee discussed the possible use of this refunding to
borrow additional monies if required to complete the 3rd Floor
North building and build a parking structure if needed.
Other Business: None
Public Comment: None
/ / / |
