Comprehensive Annual Financial Report - City of Cerritos

City of Cerritos
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. INTERFUND TRANSACTIONS, Continued
B. Fund Financial Statements, Continued
Advances To/From Other Funds - At June 30, 2010, the City had the following advances to/from other
funds:
Advances to Other Funds
Governmental Funds
Redevelopment
Agency
General Capital Projects
Advances from Other Funds Fund Fund Total
Governmental Funds:
Redevelopment Agency Debt Service Fund $ 93,600,000 $ 11,812,007 $ 105,412,007
Enterprise Fund:
Electric Utility Enterprise Fund 8,184,752 - 8,184,752
Total $ 101,784,752 $ 11,812,007 $ 113,596,759
Advances from the General Fund to the Redevelopment Agency were provided to fund capital
improvement projects in both the Los Cerritos and Los Coyotes projects areas. Interest on the outstanding
balance on advances payable of $93,600,000 is charged at an annual rate of 8% to the Agency. The Agency
remits the interest payment to the City on a quarterly basis. All payments to the City for the interest on
advances payable were paid by August 31, 2010.
Advances made to the Electric Utility Enterprise Fund in the amount of $8,184,752 from the General Fund
were used for initial working capital. Interest on the outstanding balance on advances payable is charged at
an annual rate of 12% to the Electric Utility Enterprise Fund. As of June 30, 2010, interest in the amount of
$876,938 was incurred and added to the outstanding loan balance.
Advances from the Low and Moderate Income Housing Capital Project Fund to the Los Cerritos and Los
Coyotes Redevelopment Agency Debt Service Funds were used to make the payment for the Agency’s
share of the Supplemental Educational Revenue Augmentation Fund (SERAF) due to the State of California.
No interest is charged on the outstanding balance on advances payable of $11,812,007. The Debt Service
Funds remit the interest payments to the Low and Moderate Income Housing Fund on a quarterly basis.
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