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HomeMy WebLinkAbout09 1997-98 ANN'L RPT 02-16-99NO. 9 2-16-99 DATE: FEBRUARY 16, 1999 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER REDEVELOPMENT AGENCY STAFF 1997-1998 ANNUAL REPORT SUMMARY: Redevelopment Law requires that the Redevelopment Agency submit to i theLegislative BOdya-n.annUalreport for: ~the preCeding fiScal year. Redevelopment · Agen~staff recommendsthat the City CoUncil receive ~dfile the Annual Report of the: T~stin i~ommUni~: Redevel°pment Agency f°r199 7'1998 and direct a copy of this repb~ be filed With the State Co~troller, ~ . , , RECOMMENDATION It is recommended the City Council Agency take the following actions: 1. Receive and File the Annual Report for 1997-1998 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 fo l_lowing information: An independent fmancial 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. City Council Report Annual Report for 1997-98 February 16, 1999 Page 2 b. do The amount of tax increment property tax revenue generated. The amount of tax increment revenues paid to taxing agencies pursuant to Section 33401. The required report to the State Controller, . . . Any other fiscal information the Agency believes is useful. A description of the Agency's activities affecting housing and displacement containing the following information: a. The total number of households displaced or moved from their dwelling units as part of a redevelopment project during 1997-1998. be An estimate of the total number of households that will be displaced during 1998-1999. Co The total number of dwelling units housing persons and families of low-to moderate income as a part of a redevelopment project. d. The total number of Agency assisted dwelling units constructed, substantially rehabilitated, acquired or subsidized during 1997-1998 for occupancy at affordable cost by persons and families of low to moderate income. eo The status and use of the Low to Moderate Income Housing Fund, created pursuant to Section 33334.3 Any other information the Agency believes useful to explain its housing program. go Any excess surplus funds which have accumulated in the Low to Moderate Income Housing Funds. Excess funds are defmed as any unexpended or unencumbered amount in the fund greater than $1,000,000 or the aggregate amount deposited in the fund in the preceding five (5) fiscal years. Monies are deemed encumbered if committed by a legally enforceable contract or agreement. Any other information the Agency believes is useful to explain its housing program City Council Report Annual Report tbr 1997-98 February 16, 1999 Page 3 ANALYSIS The following responds to specific information required by the State. 1. Independent Financial Audit and Compliance Audit: A copy of the audit and compliance audit for 1997-1998 is attached. 2. Fiscal statement: ao The amount of outstanding indebtedness of the Redevelopment Agency, as of June 30, 1998, was reported to be $18,025,000. b. The amount of tax increment property tax revenue received by the Redevelopment Agency in 1997-1998 was $3,326,940. The amount of tax increment paid to taxing agencies pursuant to Section 33401 was $-0-. d, The required report to the State Controller is attached and will be submitted with this report. , There is no other fiscal information which the Agency believes to be useful at the present time. 4. Activities Affecting Housing and Displacement ao The total number of households displaced or moved as part of the Town Center and South Central Redevelopment projects during 1997-1998 was bo The total number of households estimated to be displaced as part of the Town Center or South Central project areas in 1998-1999 is 31. Co The total number of low to moderate income dwelling units demolished or removed from the housing stock in 1997-1998 was -0-. do The total number of Agency assisted dwelling units which were constructed, rehabilitated, acquired or subsidized in 1997-1998 for occupancy at affordable cost by persons and families of low to moderate income was 13. For 1998-1999 the Redevelopment Agency will be continuing with ongoing programs to provide additional oppommities for affordable City Council Report Annual Report for 1997-98 February 16, 1999 Page 4 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 and completion of a Planning Study for Housing Opportunities in the South Central Project Area.. As of June 30, 1998, the accrued balance inthe Agency's low to moderate income fund for the South Central Project Area was $2,870,947. There are excess surplus funds in the Housing Fund for the South Central Project Area in the amount of $752,315. As of June 30, 1998, the accrued balance in the Agency's low to moderate Income Fund for the Town Center Project Area was $2,998,790. There are excess surplus funds in the Housing Fund for the Town Center Project Area in the amount of $915,608. Agency staff will be happy to respond to any questions at the Agency's meeting of February 16, 1999. David Gottlieb Senior Redevelopment Project Manager TUSTIN COMMLrNITY REDEVELOPMENT AGENCY Annual Financial Report June 30, 1998 TUSTIN CO1VfMUN1TY REDEVELOPMEN2 AGENCY Annual Financial Report June 30, 1998 TABLE OF CONTENTS FINANCIAL SECTION Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet- All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Govemmental Fund Types Notes to Financial Statements SUPPLEMENTAL INFORMATION Combining Balance Sheet- All Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Debt Service Funds Combining Balance Sheet - All Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Capital Projects Funds COMPLIANCE AND INTERNAL CONTROL SECTION Independent Auditors' Report on Compliance (Including the Provisions Contained in the Guidelines for Compliance Audits of Redevelopment Agencies) and on Internal'Control Over Financial Keporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards PAGE 14 16 18 20 22 m oreland CERTIFIED PUBUC ACCOUNTANTS 1201 DOVE STREET, SUITE 680 NEWPORT BF_..ACH, CALIFORNIA 92660 (949) 221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 September 30, 1998 The Board of Directors of the Tustin Community Redevelopment Agency Independent Auditors' Reporl; We have audited the accompanying general purpose financial statements of the Tustin Community Redevelopment Agency, a component unit of the City of Tustin, California as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Tustin Community Redevelopment Agency management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose finanCial statements referred to above present fairly, in all material respects, the financial position of the Tustin Community Redevelopment Agency as of June 30, 1998, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditine Standards, we have also issued a report dated September 30, 1998 on our consideration of the Tustin Community Redevelopment Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining financial statements listed as supplemental information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Tustin Community Redevelopment Agency. The information has been subjected to the auditing procedures applied in the audit of the general purpose finan~al statements and, in our opinion, is fairly stated in all mater/al respects in relation to the general purpose finandal statements taken as a whole. TUSTIN ,.'fl2MUNITY REDEVELOPMEN. aENCY Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types For the Year Ended June 30, 1998 Revenues: Taxes Use of money and property Intergovernmental revenue Other revenue Total Revenues Expenditures: Current: General government Charges fi-om City of Tustin Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over ExpenditUres · Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balances, Beginning Fund Balances, Ending Debt Capital Service Projects $ 3,326,940 $ 837,565 215,956 1,004,375 99,341 22,870 1,129 Totals (Memorandum Only) 1998 1997 4,164,505 1,220,331 99,341 23,999 $ 3,917,009 1,132,745 1,760 3,565,766 1,942,410 5,508,176 5,051,514 48,152 662,694 710,846 1,725,494 355,415 355,415 669,584 472,016 472,016 729,251 450,000 1,373,018 450,000 1,373,018 874,848 1,386,759 2,226,585 1,134,710 3,361,295 5,385,936 1,339,181 807,700 2,146,881 (334,422) 6,055,512 (6,055,512) 1,339,181 807,700 2,146,881 (334,422) 2,786,380 17,982,385 20,768,765 21,103,187 $ 4,125,561 $ 18,790,085 22,915,646 $ 20,768,765 See Accompanying N'otes to Financial Statements. TUSTIN ~,,oMMUN1TY REDEVELOPMENT v, oENCY Notes to Financial Statements June 30, 1998 o SUMMA_KY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Reporting Entity: The Tustin Community Redevelopment Agency, a component unit of the City of Tustin, was established October 20, 1976, pursuant to the State of California Health and Safety Code, Section 33000, entitled "Community Redevelopment Law". Its purpose is to prepare and carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Tustin. The City provides management assistance to the Agency, and the members of the City Council also act as the governing body of the Agency. In accordance with GASB Cod. Sec. 2100, "Defining the Reporting Entity", the Agency's financial activities will be included (blended) with the financial activities of the City of Tustin for reporting purposes. Tax Increment Financing The Agency's primary source of revenue, other than loans and advances fi-om the City, comes fi-om property taxes. Property taxes allocated to the Agency are computed in the' following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the inCremental increase in assessed values aiier the adoption of the Redevelopment Plan are allocated to the Agency. Ail taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Agency has no power to levy and collect taxes, and any legislative property tax reduction might correspondingly reduce the amount of tax revenues that would othenvise be available to pay the principal of, and interest on, long-term debt. Broadened property tax exemptions could have a similar effect Conversely, any increase in the mx rate or assessed valuation, or any reduction or elimination of present exemptions would necessarily increase the amount of tax revenues that would be available to pay principal and interest on long-term debt Description of Funds and Account Groups: The accounting records of the Agency are organized on the basis of funds and acxmunt groups as follows: TUSTIN ,..oMMUN1TY REDEVELOPMEN, .-.GENCY Notes to Financial Statements (Continued) June 30, 1998 Governmental Funds: Debt Service Funds .are used to account for the current interest and principal payments on the long-term debt of the Agency. Capital Proje~ Funds are used to account for resources used in developing the project areas as well as the administrative costs incurred in sustaining Agency activities. Account Groups: The General Fixed Assets Account Group is used to account for capital assets of the Agency which are long-term in nature, and which are used in the operation of the Agency. The General Long-Term Debt Account Group is used to account for the Agency's outstanding long-term obligations. Basis of Accounting: Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The govemmental funds are acCounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. The Agency considers property taxes as amiable if they are remitted within 60 days after the year end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is ineun'ed. An exception to this general role is principal and interest on general long-term debt which is recognized when due. Budgetary Data: The budgets of the Agency are primarily "long-term" bUdgets which emphasize capital outlay plans extending over one year. Because of the long-term nature of redevelopment projects, "annual" budget comparisons are not considered meaning~l and accordingly, no budgetary information is included in the accompanying financial statements. Investments: Investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale), except for certain investments which have a remaining maturity of less than one year TUSTIN C~..dMUN1TY REDEVELOPMENT Notes to Financial Statements (Continued) June 30,' 1998 . when purchased, which are stated at amortized cost These investments are short term, highly liquid debt instruments including commercial paper, bankers' acceptances, and U.S. Treasury and agency obligations (See Note 2). General Fixed Assets: General fixed assets are recorded as expenditures in the governmental funds at the time of purchase. Such assets include buildings and furniture and equipment, and are capitalized at cost in the General Fixed Assets Account Group. No depreciation is provided on general fixed assets. Land Held for Resale: Land held for resale is carried at the lower of cost or estimated realizable value. The Capital Projects Fund fund balance is reserved in an amount equal to the carrying value of land held for resale because such assets are not amiable to finance the Agency's current operations. Comparative Data: Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Agency's financial position and operations. However, comparative d_~a by fund type have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Memorandum 0nly Totals: Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical Data in these columns do not present consolictated financial information. CASH AND INVESTMENTS Cash and investments at June 30, 1998 consisted 0fthe following: Pooled Deposits: Demand deposits Pooled Investments Investments with Fiscal Agents Total Cash and Investments $ 111,976 22,154,064 801,594 TUSTLN AMUN1TY REDEVELOPMEN'. Notes to Financial statements (Continued) June 30, 1998 ~ENCY The Agency follows the practice of pooling cash and invesmaents of all funds. Interest income earned on pooled cash and investments is allocated annually based on the weighted average cash balances in each fund receiving interest Authorized Investments: Under provision of the Agency's investment policy, and in accordance with Section 53601 of the California Government Code, the Agency may invest in the following types of investments: Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings and loan associations Bankers' Acceptances Medium-Term Corporate Notes Commercial Paper Local Agency Investment Fund (LAIF) U.S. Treasury Securities with a maturity of five years or less Federal agency short-term bonds or notes with a maturity of five years or less Money market mutual funds The Agency has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds. The California Govemment Code provides that these monies, in the absence of specific statutory provisions goveming the issuance of bonds, may be invested in accordance with the ordinance, resolutions or indentures specifying the types of invesmaents its trustees or fiscal agents may make. Pooled Deposits/Credit Risk: The California Government Code requires California banks and savings and loan associations to secure an Agency's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of an Agency's deposits. California law also allows financial institutions to secure an Agency's deposits by pledging first mast deed mo _rtgage notes having a value of 150°,4 of the Agency's total deposits. The Agency may x~ive collateral requirements for deposits which are fully insured up to $100,000 by federal depository insurance. In accordance with GASB Statement 3, deposits are classified as to credit risk by three categories as follows: Category 1: Insured or collateralized with securities held by the Agency or by its agent in the Agency's name. TUSTIN C~MMUN1TY REDEVELOPMEN'I ~GENCY Notes to Financial Statements (Continued) June 30, 1998 Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent in the Agency's name. Category 3: Uncollateralized Credit Risk, Carmng Amount, and Market Value of Investments: Investments that are represented by specific identifiable investment securities are classified as to credit risk by three categories as follows: Category 1: Insured or registered, or securities held by the Agency or its agent in the Agency's name. Category 2: Uninsured and unregistered with securities held by the counterparty's trust department or agent in the Agencfs name. Category 3: Uninsured and unregistered with securities held by the counterparty, or by its trust department or agent but not in the Agency's name. Deposits.and investments at June 30, 1998 by credit risk categories are as follows: Pooled Deposits..: Demand Deposits (Bank Balance) Less: O~ding Warrants Add: Deposits in Transit Demand Deposits (Book Balance) Category Bank 1" 2 3 Balance $76,368 $ 76,368 (417) 36,025 111.976 Total Pooled Deposits $76,368 $ - $ - $111,976 Pooled Investments: State of Califomia Locat Agency Investment Fund o) U.S. Govemment Securities Medium-Term Corporate Notes Category 1 2 3 $2,480,385 4,030,098 Fair Value/ Amortized Cost $15,643,581 2,480,385 4.030,098 Total Pooled Investments 6,510,483. 22.154,064 Investments with Fiscal Agents Money Market Mutual Funds (1) 801,594 Total Cash and Investments $6,586.85! $ - o . . TUSTIN._.)MMUN1TY REDEVELOPME1..xGENCY Notes to Financial Statements (Continued) June 30, 1998 Not subject to categorization. The management of the State of Califomia Pooled Money Investment Account (generally referred to as LAIF) has indicated to the Agnecy that as of June 30, 1998 the amortized cost value of the pool ws $31,920,000,841 and the estimated fair value of the pool was $31,932,227,970. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes, totalling $977,100,000, and asset- backed securities totalling $388,537,000. LAIFs (and the Agency's) exposure to risk (credit, market or legal) is not currently available. Maturities for medium-term corporate notes range from September 1998 through June 1999. LOANS RECEIVABLE The Agency has provided a commercial loan program to small businesses for making improvements. These loans are non-interest bearing. Due to the long-term nature of the loans, the Agency has reserved fund balance. $16,272 GENERAL FIXED ASSETS The specific fixed assets included in the General Fixed Assets Account Group at June 30, 1998 are as follows: Balance Balance July 1.1997 Additions Deletions June 30. 1998 Building-Civic Center Fumiture, fixtures and equipment $11,024,198 $11,024,198 577,090 $41,750 618.840 $11,601,288 $41..750 $ - $11,643,038 GENERAL LONG-TERM DEBT The following is a summary of the changes in the General Long-Term Debt Account Group for the year ended June 30, 1998: Balance Balance July 1, 1997 Additions Retirements June 30, 1998 Tax allocation bonds $18,475,000 $ - $450,000 $18,025,000 10 TUSTIN C~,MMUN1TY REDEVELOPMENT ~oENCY Notes to Financial Statements (Continued) June 30, 1998 Tax Allocation Bonds: In August 1987, the'Agency issued $8,060,000 Town Center Area Redevelopment Project Tax Allocation Refunding Bonds, Series 1987, in order to advance refund its outstanding $8,105,000 1982 Tax Allocation Bonds. Serial bonds are payable in annual installments ranging from $25,000 to $745,000 commencing on November 1, 1988. Interest is payable semiannually on May 1 and November 1, with rates ranging from 4.40% to 7.50% per annum. $ 5,145,000 In July 1991, the Agency issued $13,100,000 Tax Allocation Bonds, Series 1991, for the purpose of renovating the Civic Center, which is located within the Town Center Redevelopment Project Area. Serial bonds are payable in annual installments ranging from $40,000 to $895,000 commencing December 1, 1993. Term Bonds of $11,380,000 are due on December 1,2016. Interest on all bonds is payable semiannually on June 1 and December 1 with rates ranging from 5.25% to 6.80% per annum. 12,880,000 Total Tax Allocation Bonds $18:025:000 The annual requirements to amortize the tax allocation bonds are as follows: Year Ending June 30. Principal Interest Total 1999 $ 475,000 $ 1,234,505 $ 1,709,505 2000 510,000 1,200,195 1,710,195 2001 550,000 1,162,750 1,712,750 2002 590,000 1,121,915 1,711,915 2003 630,000 1,078,088 1,708,088 Thereafter 15,270,000 7,943,820 23 ~213,820.. Total $18,025,000 $13,741,273 $31,766,273 11 TUSTIi DMMUN1TY REDEVELOPME1 ,GENCY Notes to Financial Statements (Continued) June 30, 1998 o , DISPOSITION AND DEVELOPMENT AGREEMENT In December 1995, the Agency entered into an agreement with a developer whereby the Agency is to loan the developer an amount not to exceed $397,183 for the development and operation of a 145 unit, single-family, owner-occupied project. In accordance with the agreement, the amounts disbursed shall accrue interest at the rate of 7% per year, compounded monthly, from the applicable dates of disbursement Portions of the principal and related 'accrued interest shall be forgiven upon the close of escrow of the ninety-first and one- hundred-ninth of the units, and the remaining principal and accrued interest shall be forgiven upon the close of escrow for the last of the one hundred forty-five units. Principal and interest are repayable only upon developer default under terms of the agreement. Due to the contingent repayment schedule, the Agency records an expenditure when a portion of the loan is made and no receivable is included in the financial statements. The balance of the loan outstanding at June 30, 1998 is $44,932. COMMITMENTS AND CONTINGENCIES The Califomia Health and Safety Code requires redevelopment agencies to set aside 20 percent of their tax increment from project areas established before 1976 for low and moderate income housing. Between fiscal years 1985-86 and 1991-92, the Tustin Community Redevelopment Agency deferred a total of $2,776,042 from its low and moderate-income housing obligation. On February 1, 1993, the Agency adopted a plan to eliminate the deficit in subsequent years. 8. REQUIRED INDIVIDUAL FUND DISCLOSURES . The Marine Base Project Area Debt Service Fund and the Marine Base Capital Projects Fund have a deficit fund balance of $5,482 and $14,152, respectively, as of June 30, 1998. The Agency's man.agement intends to eliminate this deficit fund balance from future revenues or by transferring funds from the other Agency funds. SUBSEQUENT EVENT In July 1998, the Agency issued $20,805,000 Tax Allocation Refunding Bonds, 1998 Series A with interest rates from 3.50 to 5.00 percent to refinance redevelopment activities within or of benefit to the Redevelopment Project and specifically to refund the Agency's Town Center Area Redevelopment Project Tax Allocation Refunding Bonds, Series 1987 in aggregate principal amount of $8,060,000 and the Agency's Town Center Area Redevelopment Project Subordinate Tax Allocation .Bonds, Series 1991 in aggregate principal amount of $13,100,000, of which $18,025,000 remained outstanding on these issues at June 30, 1998. 12 This page has been left blank intentionally. 13 TUSTI~ .JMMUNITY REDEVELOPMEN .,.GENCY Combining Balance Sheet - All Debt Service Funds June 30, 1998 Assets Cash and investments Investments with fiscal agents Taxes receivable Due fi.om other funds Due from City of Tustin Total Assets South Town Marine Central Center Base Project Area Project Area Project Area $ 1,440,149 $ 2,231,414 801,594 7,668 18,731 $ 1,447,81'7 $ 3,051,739 t Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities Due to other funds Due to City of Tustin Total Liabilities Fund Balances: Reserved for debt service Unreserved and undesi~m~ated Total Fund Balances Total Liabilities and Fund Balances $ 6,780 $ 11,800 114,143 235,790 5,482 120,923 247,590 5,482 1,326,894 2,804,149 (5,482) 1,326,894 2,804,149 (5,482) $ 1,447,817 $ 3,051,739 14 Totals 1998 1997 $ 3,671,563 801,594 26,399 $ 1,203,621 806,480 20,636 3,303,617 4,966 $ 4,499,556 $ 5,339,320 $ 18,580 $ 355,415 373,995 102,261 2,159,129 291,550 2,552,940 4,131,043 (5,482) 4,125,561 2,870,355 (83,975) 2,786,380 $ 4,499,556 $ 5,339,320 15 TUSTL OMMUNITY REDEVELOPMEi .GENCY Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Debt Service Funds For the Year Ended June 30, 1998 Revenues: Taxes Use of money and property Other revenue South Town Marine Central Center Base Project Area Project Area Project Area $ 1,564,205 $ 1,762,735 60,640 155,316 22,870 Total Revenues 1,624,845 1,940,921 Expenditures: Current: General government Charges from City of Tustin Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balances, Beginning Fund Balances, Ending 48,152 114,143 235,790 450,000 99,833 1,273,185 213,976 2,007,127 $ 5,482 5,482 1,410,869 (66,206) (5,482) 1,410,869 (66,206) (5,482) (83,975) 2,870,355 $ 1.326,894 $ 2,804,149 $ (5,482) 16 Totals 1998 1997 $ 3,326,940 215,956 22,870 $ 3,112,702 197,626 3,565,766 3,310,328 48,152 355,415 45O, OOO 1,373,018 2,226,585 1,339,181 36,771 669,584 420,000 1,364,710 2,491,065 819,263 2,400,000 (3,655,512) (1,255,512) 1,339,181 2,786,380 $ 4,125,561 (436,249) 3,222,629 $ 2,786,380 17 TUSTIN _..)MMUNITY REDEVELOPMEN, .JENCY Combining Balance Sheet - All Capital Projects Funds June 30, 1998 Assets South Central South Central Town Center Project Low Income Project Area Housing Area Cash and investments Taxes receivable Interest receivable Accounts receivable Due from other funds Deposits Loans receivable Land held for resale Total Assets Liabilities and Fund Balance Liabilities: Accounts payable and accrued liabilities Due to other funds Due to City of Tustin Total Liabilities Fund Balances Reserved: Deposits Long-term loans receivable Low income housing Land held for resale Unreserved: Designated for capital projects Undesignated Total Fund Balances Total Liabilities and Fund Balances $ 10,681,273 $ 2,854,030 1,917 625 1,345,000 $ 12,026,898 15,000 $ 2,870,947 $ 158,133 $ 9,924 $ 1,940,849 234,435 410 16,272 750,000 $ 2,941,966 $ 66,629 1,755,850 21,756 5,850 1,913,983 31,680 72,479 1,345,000 15,000 2,824,267 8,767,915 410 16,272 750,000 2,102,805 10,112,915 2,839,267 2,869,487 $ 12,026,898 $ 2,870,947 $ 2,941,966 18 Town Center Low Income Housing Marine Base Project Area Totals 1998 1997 $ 2,979,107 4,683 15,000 $ 2,998,790 $ 5,350 10,872 16,222 $ 139,218 $ 139,218 $ 1,370 152,000 153,370 $ 18,594,477 6,600 234,435 625 30,410 16,272 2,095,000 $ 20,977,819 $ 241,406 1,946,328 2,187,734 $ 17,770,396 5,159 150,252 296 1,255,512 30,000 18,984 1,345,000 $ 20,575,599 $ 179,111 2,400,000 14,103 2,593,214 15,000 2,967,568 2,982,568 $ 2,998,790 (14,152) (14,152) $ 139,218 30,410 16,272 5,791,835 2,095,000 10,870,720 (14,152) 18,790,085 $ 20,977,819 30,000 18,984 4,912,678 1,345,000 11,675,723 17,982,385 $ 20,575,599 19 TUSTD4 M2MUNITY REDEVELOPMEN2 aENCY Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Capital Projects Funds For the Year Ended June 30, 1998 Revenues: Taxes Use of money and property Intergovernmental revenue . Other revenue ,~: · · TOtal Revenues Expenditures: Current: General government Capital outlay. Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in · Operating transfers out .... Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balances, Beginning Fund Balances, Ending South Central South Central Town Center Project Low Income Project Area Housing Area $ 572,827 66,0O0 12 638,839 193,939 462,306 656,245 (17,406) (17,406) 10,130,321 $ 10,112,915 $ 393,931 145,438 1,117 540,486 182,329 6,990 189,319 351,167 351,167 2,488,100 $ 2,839,267 20 $ 138,240 138,240 175,419 2,720 178,139 (39,899) (39,899) 2,909,386 $ 2,869,487 Town Center Low Income Housing $ 443,634 147,870 591,504 63,514 63,514 527,990 Marine Base Project Area $ 33,341 33,341 47,493 47,493 (14,152) Totals 1998 837,565 1,004,375 99,341 1,129 1,942,410 1997 $ 804,307 935,119 1,760 1,741,186 662,694 472,016 1,134,710 1,688,723 729,251 454,848 22,049 2,894,871 807,700 (1,153,685) 3,655,512 (2,400,,000) 1,255,512 527,990 2,454,578 $ 2,982,568 (14,152) $ (14,152) 807,700 17,982,385 $ 18,790,085 101,827 17,880,558 $ 17,982,385 21 m oreland CERTIFIED PUBUC ACCOUNTANTS 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 (949) 221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 September 30, 1998 The Board of Directors of the Tustin Community Redevelopment Agency Independent Auditors' Report on Compliance (Including the Provisions Contained in the Guidelines for Compliance Audits of Redevelopment Agencies) anJ on Intemal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards We have audited the accompanying general purpose financial statements of the Tustin Community Redevelopment Agency, a component unit of the City of Tustin, as of' and for the year ended June 30, 1998, as listed in the table of contents, and have issued our report thereon dated September 30, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards; issued by the Comptroller General of the United States. Compliance .~Ks part of obtaining reasonable assurance about whether the general purpose finag, cial statements of the Tustin Community Redevelopment Agency are fi-ce of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and _m-ants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies issued by the State Controller's Office, Division of Accounting and Reporting. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Intemal Control Over Financial Reporting In planning and performing our audit, we considered the Tustin Community Redevelopment Agency's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be .material weaknesses. A material weakness is a condition in which the 22 design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving internal control over financial reporting that we have reported to management of the City of Tustin in a separate letter dated September 30, 1998 relating to both the City and the Agency. This report is intended for the information of the Board of Directors and management of the Tustin Community Redevelopment Agency and the State Controller's Office, Division of Accounting and Reporting. However, this report is a matter of public record and its distribution is not limited. 23 zr, J ~0 · o o~8 z 0 Z >. z u u < z -< z .< o o o o x Z Z © Z © g ~---~ " CD (:D " " " " " 0 j._ o < - . . , UJ Q Uj Z Z Cl D uJ Otn ~ !-- " D l-- ~n uJ Z Z o ~. ~., ~ 0 (..9 w n- n- ~ rn Z C3 · 0 LLI o o,,,o o .._ . :s m 0 >~ LU !-- -- C) W ~. n- 0 0 0 ~< Z 4.< 0-'" CD r~ ZZ -~ z z z 8 i CALCULATION OF AVAILABLe REVENUES TAX YEAR AGENCY NAME PROJECT AREA 1998-99 Tustin Community Redevelopment Agency Town Center RECONCILIATION DATES: JULY 1, 19 97 TO JUNE 30, 19 98 1. Beginning Balance, Available Revenues (See lnsb"u~ons) . . 2. Tax Increment Received - Gross All Tax Increment Revenues, to include any Tax Increment passed through to other io~! taxing agencies. 3. Ail other Avail, able Revenu~ Received (See Instru~ons) 4. Revenues from any other source, inr_Juded in Column E of the Reconciliation Statement, but not included in (1-3) above 5. Sum of Lines 1 through 4 6. Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 7. Available Revenues, End of Year (5- 6) FORWARD THIS AMOUNT TO STATEMENT OF INDEBTED.NESS, COVER PAG=-, LINE 4 367,020 2,334,046 -0- -0- 2,701,066 2,185,023 516,043 NOTES Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Sec'don 33576. Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be v,"ashed in the above calcul.ation, and therefor omitted from Available Revenues at year end. Item 4. above: This represents any payments from any saurce other than'Tax Increment OR available revenues. For instance, an agency funds a project w~ a bond issue, i--ne previous SO! included a Disposition Development Agreement (DDA) which was fully satisfied with these bond proceeds. The DDA Would be shown on the Reconciliation' Statement as fully repaid under the "other" column (Col =--), but with funds that were neither Tax Increment, nor"Available Revenues" as defined. The amounts used to satisfy-this DDA would be included on line 4 above in order to ac,.m~rately determine ending "Available Revenues." .. Rev. .. 0 ' 0'7- O q- 0 O~:l. ~0 0 · ~3 0 CALCULATION OF AVAILABLE REVENUES AGENCY NAME PROJECT AREA TAX YEAR 1998-99 RECONCILIATION DATES: JULY 1, 19 ... Tustin Community Redevelopment Agency South Central .,, 97 ~ TO JUNE30,19. 98 1. Beginning Balance, Available Revenues (See lnstru~ons) 2. Tax ln:'ement Received - Gross All Tax Increment Revenues, to include any Tax Increment passed through to other local taxing agencies. 3. Ail other Available Revenues Received (See Instructions)' · 4. Revenues from any other source, included in Column E of the Reconciliation Statement, but not included in (1-3) above 5. Sum of Unes I through 4 -0- 1,830,457 -0- -0- 1,830,457 6. Total amoun~ paid against indebtedness in previous year. (D + E on Reconciliation Statement) 7. Available Revenues,' End of Year (5 - 6) FC~RWARD THIS AMOUNT TO STATEMENT OF INDEBTED.NESS, COVER PAG=_, LINE 4 468,228 1,362,229 NOTES Tax Increment Revenues: , The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Heal~ and Safety Code Sec'don 33676. Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at year end. Item 4. above: · This represents any p~yments from any source other than Tax Increment OR available revenues. For instance, an ' agency funds a project wi~ a bond issue. The previous SOl incJuded a Disposition Development Agreement (DDA) which was fully satisfied with these bond proceeds. The DDA would be shown on the Reconciliation' Statement as fully repaid under the 'other" column (Col E), but with funds that were neither Tax Increment, nor"Available Revenues' as defined. The amoun~ used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues.' Rev. (G/3/94)