REPORT TO PUBLIC FACILITIES FINANCING CORPORATION (PFFC)
SUBJECT
Title
Action on the Federal and State Income Tax Exempt Reporting for Fiscal Year 2019/2020
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
The City Council established the City of Santa Clara Public Facilities Financing Corporation (PFFC) in 1997 mainly to render financial assistance to the City of Santa Clara by financing, refinancing, acquiring, constructing, improving, leasing and selling of buildings for the benefit of residents of the City of Santa Clara. The PFFC was the issuing agency for the 1997 Police Administration Building Project Certificates of Participation (COPs), which was refunded on July 13, 2010 by the 2010 Lease Agreement between the City of Santa Clara and the City of Santa Clara PFFC for the use of the Police Administration Building; and the 2002 COPs, Series A Bonds which were refunded March 28, 2013 by the 2013 Refunding COPs for the purpose of constructing the City's Central Park Library. Debt Service on the lease and COPs is secured by lease payments made by the City to the PFFC in exchange for the use of the Police Administration Building and Library.
Established as a tax exempt organization, the PFFC is required to file the Internal Revenue Service (IRS) Form 990 annually. The Form 990 is required to be accepted by the organization's governing body prior to its filing. Once approved by the Board, it will be transmitted to the IRS. This tax form should be filed by the 15th day of the 5th month (November 15th) after the end of the City's accounting period of June 30th. However, the City's Comprehensive Annual Financial Report (CAFR) was not completed until December 2020 and an extension was requested and granted by the IRS. The revised deadline to file the 2019-2020 fiscal year Form 990 is now May 15, 2021.
DISCUSSION
The IRS Form 990 is the reporting form that federally tax-exempt organizations must file with the IRS each year. This...
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