The City of Alameda Comprehensive Annual Financial Review (CAFR) document is not online yet, but a copy was available for review at last night’s City Council meeting. Here are two quick items of interest from the report.
Civic Center Parking Structure Loan
The City took out a HUD loan to help pay for the Alameda Civic Center Parking Loan under the Brownfields Economic Development Initiative (BEDI) program. The loan is for $7 million, and the first $4 million drawdown as in September 2006, and the second $3 million drawdown was in August 2006, both amounts (the full $7 million) being applied in full to construct the parking garage. The loan is to be re-paid with parking garage revenues and lease revenues from the theatre complex. Interesting observation: parking garage revenues are around $75,000 per year, so, if only those funds were to be used to pay back the loan, it would take over 93 years.
“Loan” From City of Alameda General Fund to Alameda Power & Telecom
In December 2003, Mayor Johnson and Councilmembers Gilmore and Matarrese approved a transfer of $2.2 million from the general fund to the money-pit that was AP&T’s telecom division. (AP&T is now called “Alameda Municipal Power.”) It appears that now the City is trying to retroactively classify that transfer as a “loan”, as the CAFR calls it such and indicates that the money is to be paid back from Alameda Municipal Power on June 1, 2009. To date, we’ve found no evidence that City Council or AP&T considered the transfer to be a “loan” at the time.