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Home My WebLink About12 1998-99 ANN'L RPT 12-06-99NO. 12 12-06-99 DATE: DECEMBER 6, 1999 inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER REDEVELOPMENT AGENCY STAFF 1998-1999 ANNUAL REPORT RECOMMENDATION It is recommended the City Council Agency take the following actions: 1. Receive and File the Annual Report for 1998-1999. 2. Direct a copy of this report be filed with the State Controller. FISCAL IMPACT There is no fiscal impact associated with this action. BACKGROUND California Health and Safety Code Section 33080.1 requires the preparation and filing of an annual report by a redevelopment agency with its legislative body. A copy of this report must be filed with the State Controller and also with the State Department of Housing and Community Development. The annual report must contain the following information: An independent financial audit of the previous fiscal year. The audit must include an opinion of the Agency's compliance with laws, regulations and administrative requirements governing activities of the Agency. 2. A fiscal statement containing the following information: a. The amount of outstanding indebtedness of the Agency. b. The amount of tax increment property tax revenue generated. City Counci'l Report Annual Report for 1998-99 City Council Report "" Annual Report for 1998-99 December 6, 1999 Page 4 income was eleven (11). For 1999-2000 the Redevelopment Agency will be continuing with ongoing programs to provide additional opportunities for affordable housing. These programs include the First Time Homebuyers Downpayment Assistance Program, Mortgage Credit Certificate Program, and rehabilitation of dwelling units through the Housing Rehabilitation Program. In addition, the Agency will complete a; planning study for Housing Opportunities in the South Central Project Area, an updated Comprehensive Affordable Housing Strategy, and an updated second five- year Housing Implementation Plan. e. As of june 30, 1999, the final balance in the Agency's low to moderate income fund for the South Central Project Area was $ 3,150,732. There were no excess surplus funds in the Housing Fund for the South Central Project Area. As of June 30, 1999, the accrued balance in the Agency's low to moderate Income Fund for the Town Center Project Area was $ 1,953,932. 'There were no excess surplus funds in the Housing Fund for the Town Center Project Area.. Agency staff will be happy to respond to any questions at the Agency's meeting of December 6, 1999. ~hristine A. Shingletff Assistant City Manag4r David Gottlieb Senior Redevelopment Project Manager Nov-28-~9 08:Z3pm From-~RELAND & ASSOCIATES +9492210035. T-171 P.25/26 F-323 .. October 2~, 1999 The Board of Directors of~h¢ Tustin Community Redevelopment Agency Independent Auditors' Rep0rt,0n Compliance (hae_lu~ lng the Provisions Con*-~ned in the Gu, idelines for Compliance AuditspfR..~,.~ velopment Agen.eies) and on ~ntemfl Control over Finsneial ReporfinA Bmsed o! an Audit of Fin.ancifl,. .Statements Perform.ed in Aeco~rdan~ with Govemm~t .A..u, difing Standard-~ We h~ve ~udited the accomp~ general purpo~ finsncial statements of the Tustin Community l~edevelopment Agency, a componem unit of the City o~ Tustin,I ~s ~ ami_ for _the year ended ~une 30, '1999, ~' ~sted in the tsble. 0.f conten~ ~nd-l~ve iSsUed Our[report thereon dat~l October 22, 1999. We conducted our audit m accordance with. generally aC~pted ~uditing standards mad the standards applic~le to financial ~udits contained tn Govemm4nt_Auditing Standards, issued by the Comptroller General of the United State~. Compliance As pm of obt~fing re~sonsble essurence ~bout whether the ge nerd purpose finsncLd statements of the Tustin Community Redevelopment Agency ge free cErnsterial misstatement, we performed tests of its compliance with certain provisions of hws, r~,gulations, contracts znd grants, fin~ndM statement mamunts. Such prows~ons include those p~'owmons of' laws and regulstions identified in the Guidelines for Comvlience Audit~ of Californii R_edevelopment Agencies ismed · -'' ' ' ' 'd' &n by the Stste Controller'~ Office, D~vzsm~ of Ae.e~unfing mxcl l~x'po~g. However, provz mg °p'mlon on compliance with tho~e provisions was not ~n objective of' our ~udit ~nd, accordingly, we do n.ot express such an opinion. The results of om[tests, disclosed n~ ~es of noncompllm~ce that are required to be reported under Govcrnmint Au_tilting Standards. Internal Control Over Finsncisl Reportin~ In planning and performing our audit, wc considered the T Agent's internal comrol over financhl reporting in order to for the purpos~ of~xpressing our opinion on the financ~l stat~ on the internal cantrol over financial reporting. Our conside~ finan6-~ reporting would n~t necessarily disclose &Il matter~ in reporting th~ might be material weflcnesse~. A nmtefi~ we ~stin Community Redevdopment etemgne our sudifing procedures ~ents and not to provide ~uranoe atlon of the internal control over the int~nal control over financ'~l ~ness is a condition in which the Nov-ZS-I~l} OS:23pm From-~RELAND & ASSO¢IATHS +{4~221083S P. ZH/ZH F-32~ design or operation of one or more of the internal control relatively low level the risk that misststements in amounts that -~ financial statements being audited may occur and not be der employees in the normal course of performing their assigned involving the internal control over financial reporting and its material weaknesses. However, we noted other matters involv. reporting that we have reported to management of the City ol October 22, 1999 relating to both the City and the Agency. This report is intended solely for the information and use manageanent of the Tusfin Community Redevdopment Agency Division of~unting and Reporting and is not intended to be other than these speca_'~ed parties. · components does not reduce to a ,ould be material in relation to the ected within a timely period by ~nctions. We noted no matters ~peration that wc confider to be ng internal control over financial Tusfin in a separate letter dated of the Board of Directors and md the State Controner's Office, ~ad should not be used by anyone 23 ~ov-ZG-66 08:14pm From-iJORELAND J ~$OClATE$ +646ZZ100S~- T-171 P.OZ F-3Z3 TUSTIN COMMUNITY REDEVELOP~ AGENCY Annual Fi.anclal Report June ;~0, 1999 NOV-2~-~ 08:15Pa From-~RELAND &.ASSOCIATES +94~22i009~ T-171 P.03 F-323 TUS/YN COM/viLrNIrY REDEVELOP~ Annual Pinan¢ial Report ~unc 30, 1999 TARLR 01: FINANC/AL S FLTION Independent Auditord P,~port Omc.mi Pu~ose Finan¢~I Smtemmts: Combined B-lmace Sheet - All Fund Types and Account G Combined Statemera of Revenues, Expenditure% and Changes in Fund B_-lances - All Govcrnmen~ Fund T AGENCY oup$ Notes ~o Financial statements · SUPP_r. .MENTAL XNFO TION Combining Balance Sheet - All Debt Service Funds Combh~ng Statement of Rcvenu~ Expenditures, and C..hm~gc~ ~n Fund B~danccs - All. Debt Service Funds Combining Balance Sheet- All Capitol Proj ec~ Funds Combining Statexne~t ofRevenuea. ~ture% ~nd Changes in Fund Balances - All Capital Projccts Funds COMPLIANCE AND INTER_,NAL CONTKOL SECTION Independent Auditors' RePOrt on Compliance (Including the Contained in the Guidelines for Compliance Audits of R Agencies) m~l on Internal Control Over Financial Repor~ on an Andit af Financial Stat~nents Peff~ in Accox Government Audi,finK Standar~ PAGE_ 13 14 16 18 20 N~v-28-gg 08:15pm. From-~RELAND &~$OCIATES +g4g221DO$~ T-171 P.04 F-323 Thc Board ofD~ offl~ Tusfin Comnum/ty ReAcvclopmcn~ Ag~cy based on our audit p~ fmsnc~ ~ ~flcm. We bdiev~ d~ our audit, provides for ~i,.e year thru en8~ in c~=mi~ ~ gmamlly a=epted a~ pri~ md f~r xh~ 7car coded )uric 30, 1999, ~ ~ Tes~mibility oftt~ Tustin ~kfion o~ these gene~ pu.,pos~ finan~ ,~xiards and ~ standards applicable tn ruble assurance about whed= the gcncral pr~ fgrly, in all ~ r~'pects, gz 30, 1999, and r)~ rcsuhs of iix operagons ~l~s. Tt~ y~ar 2000 supplementary informalion, on pag.~ 13 is .not: ~a hav~ appliccl ccrrain ~ procedure, which co-,,~t~l_ pru~~ o~.~ m~l. um~.o~ mana$~ [~_.l~__.~i .,. m~hods of measu~ and presea.ta~.-on af th, suppl~mentary ~b~y~2000~p' ~ ~ Y . ~~ a~. 1 Nov-28-gll Ol~:lSpl FroI-I~RELAND/, ASSOCIATES +g49221nn35 TUSTIN Combined Balance Sheet - All Fund Types and June 30, 1999 Ass,et; and Other Debits Cash and investments (Note 2) Investments with fiscal agent (Note 2) Taxes receivable Interest receivable Accounts receivable Deposits Loans receivable (Note 3) Land held for resale General fixed assets (Note 4) Amount avail~le in debt service funds Amount to be provided for retirement of general long-term debt Total Assets and Other Debits' ~Liabilities, Fund Balance_and 'Other ~rcdits Liabilities: Accounts payable and accrued liabilities Due to City of Tustin Bonds payable (Note 5) Total Liabilities Fund Balances and Other Credits Investment in general fixed assets Fund balances: Reserved:. Deposits Long-term loans receivable Low income housing Land held for res~le Debt service Unreserved: Designated for capital projects Total Fund Balances anti Other Credits Total Liabilities, Fund Balances and Other Credits See Accompanying Notes to l~mancial Statements. T-I~'IP.O5 F-323 C-'roups Governmental Fund Types _ Debt Capital Service Projects $ 5,006,903 1,677,364 137,309 $17,365,986 7,669 202,182 169 30,000 13,$60 2,200,000 $ 6, S21,576_ ! · . 19,819,5.66. $ 414,890 $ 457,708 1'902,000 414,890 2,359~705 6,4O6,686 30,000 13,560 5,074,664 2,2O0,000 10,216,995 6,406,686 , 17,459,858 ,$ 6~821t576 _$19,819,566 NQv-ZB-gg 08:16pm From-~RELAND & ASSOCIATES +~4~2210035_ T-lTl P.06 F-323 Ac~unt Groups General General Fixed . Long-Term Assets Debt _ $11,643,038 $ 11,643,038 -- $ 11,643,038 11,643,038 $11,643,038 $ 6~,406,686 Totals (Memorandum Only) l, 1999 ' 1998[ $ 22,372,889 $ 22,266, 0 1,677,364 801. 144,978 32 202,182 234 169 30,000 30 13,560 16 2,2.00,000 2,095 11,643,038 11,643 6,406,686 4,125 13,623~,314 13,623,314_ 13,895 $ 20,030,000__ $ 58,314,150~ $ 55,145 $ 872,598 $ 25-~ 1,902,000 2,30! _ 20~030~000. ,15,02~ 22,S04, SgS 20,5S, 11,643,038 11,64' $ 2o, o3o, ooo__ 20,030~000 30,000 3 13,560 1 5,074,664 5,79 2,200,000 2,09 6,406,686 4,13 10,216,995 ,(7s,3 0_ 35,509,582_ 58,314,180__ 20,030,000_ 594 999 435 625 410 272 000 038 561 439 ~413_ ),986 .,743 ,000 .. ;,729 _ ~,038 ),410 5,272 1,835 5,000 t,043 0,720 9,634)_ 34fid8,654_ $ 55,1~5,413 Nov-28-9~ 08:16pm -'From-~RELAND & ASSOCIATES +9492210035 T-171 P.07/26 F-323 TUSTIN COMMU1WiTY KEDEVF-¥-O?M~ Combined Statement ofl~venues, Expemi Changes in Fund Balances - Ail Government; For the Year Ended June 30, 19! Taxes Use of money and property Intergovernmental rcvem!e Other revenue Total Revenues Expenditures: Curmnt: General government Churgcs ~rom City of Tustin Capital outlay Debt servicc: Principal retirement Interest and' fiscal-charges ..... Costs of issuance Advance refunding ~scrow Total Expenditures Excess (De dency) of Kevenues Over Exp tures Other Financing Sources (Uses): Long-term debt proceeds Paid to reCunding e~crow agent Operating transfers in Operafmg tr_~n~Yers out Total Other Finmcing Sources Sources Over Expenditures Other Uses Fund Balances, Beginning Fund B~hmces, Ending Debt Capital Service _ Projects -- $ 3,341,818 $ 835,73~ 331,243 981,13C 47,73__ .. 3,673,061 · 1,$64,60¢ 41,910 1,308,85: 596,040 1,880,491 775,000 855i981 522,424 805,500 3,596,855 76,206 20,744,596 (18,545,159) 5,482 2,204,919_ 2,281,125 4,125,561 $ 6,406,686 , f A~CY litures, and FUnd Types Sec ~mpanying Notes to Financial Statements. ' 4 Totals 1999 1998 4,177,550 $ 1,312,373 47,738 II~ 5,537,661. 1,350,765 596,040 1,880,490 4,164,505 1,220,331 99,341 23,999 5,5082176 775,000 ........ 855,9_81_. 522,424 805,500 -- 3,189,34 (1,324,745) (s,4 _2)_ (1,330,2: 7) _ 18~790,0!t5 $17,459_,8f8 6,786~200 . 710,846 355,415 472,016 450,000 1,373,018 3,361,295 · (1,245,539), 2,146,881 20,744,596 (18,545,159) 5.482 (5,4S2)_ 2,199,437 950,898 2,146,881 22,915~646 20,768fl65 -- $ 23,866,544 $ 22,915,646. Nov-ZB-9~ OB:lTpm From-iJORELAND & ASSOCIATES +~492Z10035 T-171 P.08/26 F-323 , TUSTIN Colv~ KEDEVELOP~ Notes to Financial St~ments June 30, 1999 s~Y OF SIGNIFICANT ACCOUNTINO POLIC] DescaTi.'ption 0fthe Reoorting Entiw The Tustin Communi~ Redevelopment Agency', a compon~ established October 20, 1976, pursuant to ~he Sta~ of Ca Section 33000, entitled "Community Redevelopment La~ can~ out plans for improvement, rehabilitation and redevc the texri~rial limits of the City of Tustir~ The City provic Agency, and the members of the City Council alsb act as th In aecor~ with GA.qB Cod. See. 12100, 'Defining tht finmeial activities witl be included (blended) with thc Tusfin for reporting purpose~ Tax Increment Financing -The-Xgen s primary sour of mm io comes from property tax~ Property taxes allocaled to · followin~ mann~ The assessed valuation of'all property within the pfc of adoption of the p,~..lopmcnt Plato Property taxes re~ to the ir~emenml increase in of the Redevelopment Plan are allo~ to the A assessed valuation of the property are alloested t~ th reduction might correspondingly reduce the amount of' m available to pay the principal of, and interest on, long-t~ exemptions could hsve a similar effect. Conversely, any valuation, or any redtu:tion or elimination of ~esent ,xe~ the emount of'tax revenues the~ would be available to pe~ debt. Description of Punds and Ac~. umGrouus: The accounting r~cords of' the Agency are organizM groups as follows: , .jI~NC¥ nt unit of the City of Tustin, was igornia Health and Safe~ Code, '. Its purpose is to prepare and .opment of blighted areas' within ; Sort, ming body of the Agency. Reponiug Agme s nane~ activities o~ the City as and advances, bom the_City, ~e Agency are cornp~ in the area i~ determined on th~ da~e assessed values af~ the adoption ~ency. All taxes on the ."frozen" City and other distriet~ and an~ lcgisl~ve pro~ tax ~ues that would oth=wig be ,~n d~.St Broadened property tax nptions would ~ly mc~ea~ 'p~u~pal and interest on long-t=m Goverrune~t~ Funds: ',Debt Serve.ce Funds. are used to account for thc on tho long-term debt c~the Agency, C~pitol Projects Funds are used to account ~ m'eas ~ well as the Mministr'afive costs inmu'r~ in interest and principal payments used in developing the project · ' Agency aetivitie~ Account Groups: Thc C~meraJ Fixed Assets A .e~.ount Orou~_ is used account for cap/tal ~ of the Agmey which ~re long-term in nsnn~ ~nd which are used in the operation of the The Oeneral Long-Term Del~t Account Oroup is to a~.ount for the Agency's _ o~g long-tezm obligsfion.~ Basis oi'aoeo~g refer~ to when revenues and and reported in the finandal ~ents. Basis of acem measuremems made, regardl~s of the meastm~ent The go~rmnenlal funds an: accounted for using thc mo Their rev~ues are recogniz~ when they become mess, are recognized in ttm ~.ounts maing rclaIes to the timing ~t' the ,applied. i lifted accnml basis of accounting. ruble mad available a~ net currem assets. The Agency considers property rexes as available ~f they are remit~ within 60 days ~ the year end. . .~ the relamd fund liability is incurr~. An exception to this gene~ ~ is principal and interest on gmersl long-term debt which is reco~ v~ Budgetsrv D~_' The budgets of the Agency are primarily 'long-term' outlay plans exIe~mding over one year. Becamse of the projee~ 'annual' budset comparisons ~re nnt consider budgeta~ inf~on is included in the aeeom~g i Invesuuer~ ~re ~t~ed ~ 'fair value (thc value ~ whi exchanged in a curre~ ~on between willing part{ sale), except for certain invesUnmts which have a rem. .6 due. budgets which emph~ capital long-term n~re of rede~opmemI gl meaninl~ul and ~_.o,~r&~, no nancial gammm~ a finane~ L-~rummt could be other 6urn a famed or liquidation aining reality o/'lmm than on~ year Nov-2~-~t O8:lFpm From-UORELAND & ASSOCIATES +~4~2210035 T-171 P.10/26 F-323 TUST~ coMMtnvrrY RF_z)E~~?~]m Notes to Fin~e~ Statement~ June 30, 1999 AGENCY when purclmsed, whleh are st~ 8t amortized cost highly liquid debt insmmaents including commercial Treasu~ and agency obligations (See Note 2). General Fixed Assr: General fixed assem are recorded as expenditures in the purchase. Such assets include buildings and fimfiture cost in the General Fixed Ass~ Account Crroup. lqo Land Held for Resale: Land held for resale is carried at the lower of co~t or Projects Fund fund balauee is reserv~ in au mnount for resale because such assets are not available to finmee Dam:. Comparative total data for the prior year have been s~.anenta in order to provide an undeaxtanding and operatlon[ I~wever, comparative data by fund the statements finee ~r inelusi°n would make the to read. Memorandum Only Totals: Columns in the accompanying financial statements are not necessary £or a fair present'on of the generally aocepted ~.oo~~ prlndplcs, but ar, Dina in these columns do not present ~li 2. Cash and investments at June 30, 1999 cone[,e~d of the Pooled Deposits: Dm, rand deposits Pooled Investments Invemnents with Fiscal Agents Total Caah and Invemmenm inv=mnmts are short term, bankers' ~,cepmnc~ and U.S. funds at the time of equipment, and are eapi~ at is provided on general realizable value. The Capital to the eanying value of lend held Agene~s current operations. in the accompanying financial in the Agency's financial position · have not been presmted in each at' unduly complex and difficult "Totals (Memorandum Only)" st~~ts in aeeor~ with as additional analytical dam information. $ 1,300,7g0 21,072,109 1,677.364 $24:950:253_ Nov-ZS-~g 08:lSpm From-J,4ORELAND & ASSOCIATES +~4~2210035 T-171 P.11/28 F-325 TUSTIN ~OMMLSN'rrY REDEV~OPM~. 'T AGENCY Notes to Financial Smmnents (ContriVed) ~un¢ 30, 1999 Thc Agency follows the pm~c~ of pdoling ~ and in.me eameA on pooled cash and invesm~ents is average cash bal~ in each fund rec~ving ~ Authorized ~ent~: under provision of the Agencys inve.~nt policy, and i~. tim California Govemme~ Code, tho Agency may The Agency has monies held by trustees or fis,~ agems of certain bond~ The Cal/fom/a Govemm~ Code absence of specific stamm~ provisions governing the i.ssu a~:~ardance with the ordinanc~ resolutions ca' indentur~ it~ tru~tee, s or fiscal agents may make. Pooled Deposits/Credit Risk The Califamia Oovemmmt Code requires C~_lifomi assodations m se,~u~ an Agency's deposim by pledging The market value of pledged seeufitie~ mug equal at le California law al~ allow, fnmaeial in.~mtions to seeun ~ tn~ deed mortgage note~ having a value of 150% of The Agency may w~ve col~ requirements for del~ $100,000 by federal depository insurance. Ia ammrdane~ with GASB Statement 3, deposits categories as ~nllows: Cale~ory 1: ~ ar collaie~ized with secu a~em in the Agenc~s n~rn& of all ~nds. ~ annually based an the weightezl with Section 53601 of in the.~xllowing type~ cfi le~ of five years or less ed to the payment or security rovides ttmt these monies, in tl~ ,~ee of'bonds, rosy be in~ in i banks ~ ssvings mad loan ov~nment semmifies ~ collateral st 110% of an Agency's deposits. ~n Agent. deposks by pledging the Agenc~s total deposit~ Nov-28-~9 08:lBpm From-~RELAND & ASSOCIATES +~4~ZZI0035 T-i?I P.IZ/Z6 F-3Z$ TUSTiNL-O~ EEDEVELOPlVIE~ Notes to Financial SmIernents (Contin~ect) ~'une 30, 1999 Category 2: Collatealized with securid~ held by trua department or agent in the Agen Ca~ory 3: Unco~izeA Credit R;~k, _C~ Amount, and M___arket Value of'Laves Investments that are represented by specific idenfifi~le i ss to credit risk by three caegories as follows: . C~legory 1: Insured or regi~ or securities he Agents name. Category 2: Uninsurvai and unregistered with se trust depm'tment or agent in thc Category 3: Uninsured and unregistered with .............. by its trust department or agem but n Deposits and invesUnents at lune 30. 1999 by credit risk c Pooled De!~osits: Less: Outsl~eling Warranm Add: Deposits in Transit Demand Deposits (Book Balan~) Total Pooled Deposits Pooled In~ents: State of Califixnia Local Asency · Invesm~emt ~ U.E. Government Se.c~ties Total Pooled Investments $135,~ $ 4,948,851 21,072.109 ~e plccll~/ng finannial institution's men~: ~vesunent securities are d by the Agency or its agent in the :urities held by the eountv, rparty's ~tegories are as follows: B~lance 135,604 (39,8:24) 1,2os,ooo 1300,781. .~gor~ 2 3 I~air Value/ Amortized Cost -- $16,123,258c° 4,948.g5_1 21,072,109 Nov-ZS-gg 08:lgpm From-MORELAND & ASSOCIATES +9492210035 T-I?I P.13/Z6 F-323 TUSTIN COMMUNITY RF_DEV~-T~OPMEN J Notes to Firmncid Statement~ (Continu .Tune 30, 1999 Inv__~m_ ents wkh Fiscal Agents - Mon~ Marl~ M~ F~n~ U.S. Government Securities ToM InvesUncras with Fiscal Agents Total 1 1,677,36~_ AGENCY :d) Fair Value/ 2 3 _ Co~t 1,677,012 352. 352 1fi77~364 · 4.948_.851 _ $ - $22_749.47_3_ Not subject to cat~orization. ....... Or similar-products in the form of mu~ note% baoked sce~fi~ totalling $351,942,000. I.AIF's (credit, market or legal) is not ~ mrail~le. The management of the State of Califorrda Pooled Investment Account (generally refexred to as LAIF) has indicaxe, d to thc Agctmy that as of June 30, 1999 thc amortized cost value of the pool was ~6,849,505,673 and the fidr value of thc p0ol was $36,801,515,428. IncludeA in LAIrs investment ,lio arc certain derivative securities $i,524,350,000, and asset:. the Agcnc~s) exposure to risk 3. LOA2qS The Agency has provided, a commerdal lorn progrmn to ~rnall businesses for malting improvements. These loans ge bearing, Due to the long-term nature of the loans, the e. ney has reserved fund balance. . GENERAL FIXED 'ASSETS TI~ specific fixed assets included in ~e Om=al 1999 m'~ as follows: Balane~ Assets 'Ae~unt Cn-oup at June 30, Add' Balance Deletions ~ne 30, 1999_ Building-Civic Center Fumitm-e, flxtur~ and equipment $11,024,198 618.84__0 -- gl 1_643.03_~ $ -- 10 $11,024,198 618.$4o -- $11.643.038 , OB:lgpm From-UORELAND & ~[~OCI~TES +g4~2210035 _ TUST r .sm, cY Notes to Financial Statement~ (Contimmd) 3'une 30, 1999 O~qEDT. LONG-TI3-RM DEBT. The £ollowing is a ~umnm'y of thc chang~ in the Genera for the year ended June 30, 1999: July 1, 1998_ Additions_ Tax alloc~on bon& $_18.025:000 _$'20.8.0.5.000 Tax Alloe~on Bonds: On July 1, 1998, th~ Tus~m Community Ked~,.lopmm: Agony isled $20,805,000 Tax Alloc~on R.~ Bonds to r~ .~nd the Agency's Town Center Ar~a Redevelopment Proj ,.c-/. Tax Allocation Refunding Bon~ S~ri~ 1987 in aggreg~ amount of $5,145,000 ~nd th~ Ag~ncy:s Town C~ ~r Are~ .ae,;abp/ nt-?roj t Su ord mo z on non, 1991 in aggrega~ prirmipal amount of $12,880,000. The n~t pr~s of $20,192,172 (aft~ payrne~ of $55:1,423 in under~6n~ £~, imurm~ md o~r i~u~ corn) ~ere u~ to purcha~ U.S. go~nmt ~uriti~. The 1987 bo ~ts were · fully red~ and s~cudfies for 1991 bonds were depos ted in an irrevocable trust with nn ~row agent to provide for dl future payments when Tax Allomaion Bonc~ Seti~ 1991 nre ~le.d tar rede.mpfiom As a result, the 1987 Tax Anocafon t dunding Bonds and 1991 Tax Alloc~on Bonds have be~ remc veal ~om th~ gm~tal long-term account group. As of Jun~ 10, 1999, $12,830,000 ofth¢ dd~ 1991 bonds are outstanding The re. funding r~sulted in a reduction of ~t~l dd~t payments of $271,105 and aa ~o gain (differeno between tho present values ot debt service payments on fl~ old and debt) Serial bonds ~r~ pay~blo in ~u~l im~lmm~ mu ;ing ~am $775,000 oommencing on D~.~rnb~ 1, 1998. In~ '.~ p~tablo semiannually on ~une 1 and ~b~ 1, wit~ ~ rat ~ing f~om D~.~mber 1, 2~9, ~re subject to md~nption prior to m ~nrity as whole or in :p~t, ~ th~ op~on of tl~ A~, on ~y i~ on or ~ D~mb~ 1, 2008 ~ prices nm~ f~om 10C~/~ t 101% of 11 T-1H P, 14/Z6 F-3Z3 I Long-Tem~ Debt Account Group Ba~nce l~.ctirernen~ June 30, 199~ S20.030_000 Nov-28-gg OS:2Opm From-~RELAND ~ ASSOCIATES +g49221Pnq6 T-lTl P. IS/Z6 F-323 .. TUSTIN COMMLSxqTY KEDEVFX-OPMEN] Notc~ to Financial Statements (Con~u lune 30, 1999 The annual rcqu~ tn amortize the tax allocation rcfm Year Ending ....June 30. _ Principal 2000 $ 760,000 2001 795,000 2002 825,000 2003 850,000 2004 890,000 Ther~ .15,910,00Q, Tota1 $20~030_000 Interest_ $ 894,29~ 864,92~ 833,53' 800,45~ 765,20: $9:605..18 [ 'AGENCY ~ding bonds me as follows: Total _ $ 1,654,293 1,659,929 1,658,537 1,650,450 1,655,205 21,356,767 $29_635.18) 6. DTgPosrrION AND DBVEIOPMlaNT AOl~]~- In December 1995, the Agency entered into an agreern~t with a developer whereby the ............... Agency ia to loan the developer an amo~ nat to exceed $397,183 for the development and operation of a 145 unit, aingle-family, 0Whet-occupied Project-In-accordance with the ~reement, the amounts disbursed shsll me interest at t~ t¢ ra~e of' 7% per year, compounded monthly, from the applicable dstes of disbursemen~ I torfion~ ~ the principal ~ related . , accxued interest ~hall be forgiven upon th~ clos~ of e hundred-ninth of the units, and the rcrnaining principal m upon the close of escrow for the last of the one hundred fc are repay~le only upon devdoper default under tern contingent repayment schedule, the Agency records an 'ex is made and no receivable is included in the ~3nancial s outing at Sune 30, 1999 is $44,932. AND CONTINGENCmS The C~llqomia Health and S~ Code requires rede percent of their tax ineremmt from projcct areas ~ modera~ income housin~ Between ~ years 1985-86 Red~opment Agency deferred a total 0/'.$2'776,042 housing obligafiom On February 1, 1993, the Agency a in subaequcnt yearn ~REQIJIRg-D IND~UAL FUND DI~ICI~SURES The Marine Base Capital Projects l%md has a defi~t fu 1999. The Agency's nmnagemer~ intends to eYa'Kmam revmu~ or by transferring fun& from the other City/Ag 12 =ow of' tho ninety-first ~ one- d accrued interest shall be forgiven ~rty-five units. Principal and interest is of the agreement. Due to the ~enditure when a portion of the loan ~ements. The balance of the loan ,dopmmt agemci~ to set aside 20 ablished before 1976 for Iow and and 1991-92, ~ Tustin Conmaunity from its low and moderat.-inmn~ iopted a plan to elimin~ tl~ deficit wl balanee of $75,361 as of June 30, this defi~ fund balar~ flora furore Nev-ZS-~ OB:ZOpm From-MORELAND &~AS~O¢IATE$ +94~ZZ10035_ T-lTl P.16/Z$ F-323 Year 2000 Issue The Year 2000 i~ue is the result of shortcomings in rn~y dec other electronic equipment th~ may adver~y affect the govern year 1999. The Agency uses the City o~~'s accounting As of June 30, the City has indlea~ed it believes it is capable date. Because of the unprecedented n~ure of the year 2000 asm~'maees that the City has or will achieve complete year 2~ completed all year 2000 corrective actions and relamd testing. if any on City operations should entities external to the City (oth suppliers, service providers~ cusmmers~ taxpayers, business compliance in a timely manner. 13 ~ .~GElqCY audited) ironic di~a processing systems and ment's operations ss early ~s fiscal :em to record financial information. ;procassh~ dsm v~h the y~ar 2oo0 issue it is not possible tn provide K)0 complhmce, even ai~ having Or can the City detente the effec~ ~ governments, significant vendors, etc.) .fail to achieve year 2O0O Nov-28-gg 08:21pm From-I,tORELAND z ASSOCIATES +g4gZzlon~5 T-17I P.IT/Z$ F-3Z3 TUSTIN CO~TY KEDEVELOPM~ Combining Balance Sheet - All Debt Sea' ]'une 30, 1999 Cash and investments Investments with fiscal agents Taxes receivable Total Assets South Central $ 2,60~,502 111,119 · $ 2,719,621 Liabilities and Fun~ Balances Liabilities: Accounts payable ~ accrued liabilities Due to City of Tusfin Total Liabilities $ 45,709 45,709 Fund Balances: Reserved for debt service Unreserved and undesignated Total Fund Balances Total Liabilities and Fund Balances 2,673,912 2,673,9121 $ 2,719,621 ,q'T AGENCY ~ice Funds Tove'n $ 2,398,401 1,677,364 26,190_ Marine Project ,Area $ 4,101~955 $ - ,___ - $ 369,181 369,181 3,732,774 3,732,774 $ 4~101,955 $ - _ 14 No¥-28-~ OB:Zlpm From-UORELAND & ~SO¢IATE$ +~49221003~. T-171 P.18/25 F-323 Totals $ 5,006,903 $ 3,671,563 1,677,364 801,594 137~309 _ 26,399_ $ 6,821,576 _$ 4,499,556 -- $ 414,890 $ 15,5B0 355,415 414,$90 373,995___ 6,406,686 4,131,043 (5,482)_ 6,406,686 , 4,125~561 $ 6,82!,576 ,$ 4,499,556 ,,_,- 15 ~ov-28-gg 08:2lp= From-I, IORELAND = ~$O¢IATES +g4~22]0~5 T-]71 P. lg/26 F-323 Combining Statement of Revenues, Changes in Fund Balances - All Debt For the Year Ended June 30, 19.~ Taxes' Use of money and property Other revenue Total Revenues South Central Proieet Area $1,472,923 107,614 · 1,580,537 AGENCY and Funds Town Marine Centex Base $ 1,868,895 223,629 2,092,524__ Expenditures: Current: General government Charges from City of'Tustin Debt service: Principal rctireaXtent Intekcst and fiscal charges Costs of issuance Advance rc~.nding ese. row Tot~l Expenditures Excess (Defideney) of Revenues Over Expenditures. Other Financing Sources (-Uses): Long-term debt proceeds - Paid to rffunding escrow agent Operating trax.fie, rs in Total Other ~Financing Sources (Uses) Excess of Revenues and Other Sources Over Expenditures and Other Uses Fund B~lances, Beginning Fund Balane. es, Ending 141,119 ..... 92,400- 233,519 1,3,47,018 ,, 41,910 454,921 775,000 --763,581 522,424 805,500 3,363,336 (1,270, S 12)_ __ 20,744,596 (18,545,159) s s.,4s2 2~199,437_ 5,482 1,347,01 $ 928,625 5,482 1,326,85 $ 2,673,91: 2,804,149 , (5,482)_ 3,732,774 $ - __ 16 Nov-28-gg. 08:22pm From-blORELAND ~SOCIATES +g49221-OO~L T-171 P.20/26 F-323 Totals 1999 1998 _ $ 3,341,818 $ 3,326,940 331,:243 215,956 22,870 3,673,061 ,_ 3,565,766 41,910 48,152 596,040 355,415 775,000 450,000 ................. 855,981 ...... 1,373,018- 522,424 805,500 _ ! 3,596,855 2,226,585 76,206. 1~339,181 20,744,596 08,545,159) 5,482 ~. 2,204,919 2,281,125 4,125,561 6,406,656. 1,339,181 2,786,380 _ $ 4,125.,561_ 17 Nov-ZS-gg .08:Z2pm' From-MORELAND t ASSOCIATES +g4gZZlOa~5 T-lTl P.Z1/Z6 F-3Z3 TUSTI~ Col~: Combining Balance Sheet - All Capital June 30, 19~9 AGENCY iects Funds Cash and investments Taxes receivable Interest receivable Accounts receivable Due from other funds Deposits Loans receivable Land held ~or resale Total Assets L~_~b~lities and Fund Bslsncc Liabilities: Accounts payabI~ and sccrucd liabilities Due to City of Tustin Total Liabilities South Central Project _ $10,329,000 169 .1:345,000 $11,674,169.__ · , $ 184,543 1,750,000 1,934,543 South C~tr~l Low Income Housing ~ ., $ 3, I77,288 1,122 15,obo $ 3,193,410 $ 42,678 42,678_ Town Center Project __ , $1,778,490 202,182 13,560 855,000 $ 2,849,232 $ 158,303 158,303 Fund Balances Keserved: Deposits Long-term loans receivable Low income housing Land held for resale Unreserved: Designated for capital projects Undesignated Total Fund B,qanccs Total Liabilities and Fund Balances 1,345,000 8,394,6:26 $11,674, 15,000 3,135,732 3,150,732_ $ 3,193,410 _ 13,560 S55,000 1,822,369 2,690,929 $ 2,849,232 18 Nov-28-gg 08:22p= From-MORELAND & ,a-~OCIATES +9492210035- _. 'T-171 P.22/26 F-323 Town Center Low Income 'Marine Base Housing Project Ar~_a $ 2,000,377 $ 80,831 6,547 15,000 $ 2,021,924 $ S0;83! 67,992 $ 4,192 152,000 · 67,992 _ 156,192 Totals 1999 199: 15,000 1,953,932 .(75,361) (.75,361) $ 17,365,986 $ 18,594 7,669 6 202,182 23, 169 30,000 13,560 2,200,000__ 2,095 $ 19,819,566 $ 20,97~ $ 2,021,924 _ $ 457,708 $ 1,902,000_ 477 6OO 435 625 410 272 000 -- 819 -- _ 243 406 1,94(,;,328 2,359,708 .. 30,000 13,560 5,074,664 2,200,000 10,216,995 (75,361)_ I7,459,858 .. $ 80,831_ $ 19,819,566. 2,18; 3( 1¢ 5,79] 2,09.~ 10,87( (1, ',734 1.410 ;,272' ,,835 ;,000 },720 .,~52)_ _ 18~79t 1,085 $ 20,97!,819 19 Nov-28-gg DS:2Spm From-~RELAND ~ *~$OClATE$ +9492210,~: T-lTl P.23/25 F-323 TUSTIN COMMLrNITY REDEVELOPM[ Combining Statement of Revenues, Expo Changes in Fund Balance~ - All Capital PJ For the Year Ended June 30, 1.c Taxes · U$¢ of money and propexty Imergovemmental revenue Other revenue Total Rev~_~es Expenditures: Current: General government Capiial outlay Excess (Deficiency) of R~vcnues Over Expcncliture~ 'Other Finandng Uses: Opexating tmmfers out Excess (Deficiency) of' P~venues Over Exp~mtitures and Other Uses Fund Balance, Beginning Fund Balances, Ending South Centr; Project Area $ 566,45~ 30, 566,76 · 173,53 766,51 940,05 (373,28 (373'2~! 10,112,91 $ 9,739,6: 2O lqT AGENCY ~ditures, and 'njects Funds South Central Town Center Low Income Project Housins; , Area -- 368,305 156,396 ' $ 126,016 303 37,394___ 525,004 !,63~410 213,539 175,502 5 166,466__ -- k__-- : .... 213,539_: ...... 341,96_8____ 311,465 (17i,55g) '311,465 (178,558) 5 2,839,267 _ _2~,869,487 -- 6 ,$ 3,150,732_ $__2,699,929__ Nov-28-gg 08:23pm From-I,IORELXND & ~$OCIATE$ +g40221003G. T-171 P.24/25 F-323 Town ~enter Tow :Lqcome ~c B~se Housin~ _ proiect $ 467,427 138,671 $ (6,411) 1999. $ 835,732 981,130 304' 9.,433 . 47,738 __. _ i 606,402 3,022. 1,864~600. ,. 687,530 58,749 947,508____ -- 1,635~038. 58,749 (1,028,636) (55,727) Totals (1,028,636) (61,:209) 1,308,855 1,880,490~ _ ,_ 199~ -- 83~ ',565 1,00, i,375 9~ ,341 129 · 1~94: !,410~ 66i,694 47g,016 3,189,345-.- -. 1,13 (1,324,745) SO (5,482) . (1,330,22'7) 1,953,93:2 $ .(75,361). $ 17,459,858_ 7,700 7,700 17,912,385__ $ lg~71o, o85_ 21