REPORT TO PUBLIC FACILITIES FINANCING CORPORATION (PFFC)
SUBJECT
Title
Action on the Federal and State Income Tax Exempt Reporting for Fiscal Year 2022/2023
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. The PFFC's purpose is mainly to render financial assistance to the City of Santa Clara by financing, refinancing, acquiring, constructing, improving, leasing, and selling of City facilities. The PFFC is the issuing agency for the 2013 Refunding Certificates of Participation (COPs), which refunded: (1) the outstanding 2002A COPs for the construction of the City's Central Park Library and (2) the 2023 Wastewater Revenue COPs for the construction of the San Jose/Santa Clara Regional Wastewater Facility Project.
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 Annual Comprehensive Financial Report (ACFR) was not completed until December 2023 and an extension was requested and granted by the IRS. The revised deadline to file the 2022-2023 fiscal year Form 990 is now May 15, 2024.
DISCUSSION
The IRS Form 990 is the reporting form that federally tax-exempt organizations must file with the IRS each year. This form allows the IRS and the public to evaluate a nonprofit's operations. As an organization exempt from income tax, the PFFC is required to file Form 990 under section 501(c) of the Internal Revenue Code. The form is referred to by the IRS as the year beginning the fiscal year, in this case 2022.
The PFFC is also required to file...
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