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Home My WebLink AboutAGENDA ADDENDUM 12-17-907. 8. 9. ADDENDUM TO THE AGENDA REGULAR MEETING OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY DECEMBER 17, 1990 TUSTIN COMMUNITY REDEVELOPMENT AGENCY ANNUAL FINANCIAL REPORT Senate Bill 1822 requires that Redevelopment Agencies (RDA) submit an Annual Report to the State Controller' s Of f ice prior to December 31 of each calendar year. Recommendation: Receive and file subject report as recommended by the Finance Department. OTHER BUSINESS ADJOURNMENT The next regular meeting of the Redevelopment Agency is scheduled for Monday, January 7, 1991, at 7:00 p.m. REDEVELOPMENT AGENCY AGENDA ADDENDUM DECEMBER 17, 1990 4f LAQ�J a _�o DATE: TO: FROM: SUBJECT: DECEMBER 14, 1990 RDA 'No . 7 12-17-90 Inter - Com WILLIAM A. HUSTON, EXECUTIVE DIRECTOR TUSTIN COMMUNITY REDEVELOPMENT AGENCY RONALD A. NAULT, TREASURER TUSTIN COMMUNITY REDEVELOPMENT AGENCY TUSTIN COMMUNITY REDEVELOPMENT AGENCY ANNUAL FINANCIAL REPORT RECOMMENDATION: Receive and file. DISCUSSION: Senate Bill 1822 requires that Redevelopment Agencies (RDA), submit an Annual Report to the State Controller' s Of f ice prior to December 31 of each calendar year. A component of the report is the Agency's Annual Financial Report which must have been received by the Agency prior to December 31. The report submitted to you at this time is lifted directly from the City's Comprehensive Annual Financial Report (CAFR), which has been completed and reviewed by the City's Audit Committee. The RDA Report is submitted to you at this time in order to comply with Senate Bill 1822. The complete CAFR, will be submitted to the City by the Audit Committee as a part of their Annual Report to the City Council. Ronald A. Nault, T easurer RAN: 1s Attachments a:tcrdasen.bil �, m I z WOR: 41 wV It z I v• DI �, �1 • ' I • h PDndwI e20b D )601 T !**; 1.w: NO JUNE 30, 1990 0 VA OOwelECODU- 2601U 9 June 30, 1990 REM MM me•_- 91 Independent Auditors' Report 1 General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Group 2 Combined Statement of Revenues, DTenditures, and Changes in Fund Balances - All Governmental Fund Types 3 Notes to Financial Statements 4 - 10 Supplementary Information: Combining Balance Sheet - All Capital Projects Funds 11 Combining Statement of Revenues, Expenditures,, and Changes in Fund Balances - All Capital Projects Funds 12 Combining Balance Sheet - All Debt Service Funds 13 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Debt Service Funds 14 Independent Auditors' Report on C;onpliance with Audit Guidelines for California Redevelop-nent Agencies 15 DIEHL, EVANS &COMPANY CERTIFIED PUBLIC ACCOUNTANTS A PARTNERSH P NCUMM AOOOLWAN Y MPYORATIOM 18401 VON KARMAN, SUITE 200 IRVINE • CALIFORNIA 92715-1542 PHONE (714) 757-7700 FAX (714) 757-2707 September 18, 1990 Agency Members Tustin Ccmmlunity Redevelopment Agency Tustin, California We have audited the general purpose financial statements o Redevelopment Agency as of and for the year ended June 30, the table of contents. These financial statements are the Agency's management. Our responsibility is to express financial statements based on our audit. OTHER OFFICES AT: 2965 ROOSEVELT ST. CARLSBAD, CA 92008-2389 (619) 729-2343 120 WEST WOODWARD AVE. ESCONDIDO. CA 92025-9990 (619)741-3141 f the Tustin Com nity 1990, as listed in responsibility of the an opinion on these We conducted our audit in accordance with generally accepted auditing standards. 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 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 Ciity Redevelopment Agency as of June 30, 1990, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The financial statements of the individual funds listed 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 Comminity Redevelopment Agency. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. -1- •• Ire . 01 M DO 21 CC ' 0 120 e 0• 11�1 For the year ended June 30, 1990 Taxes (Note 2) Interest Other EXPENDITURES: Current: General government Capital expenditures Other expenditures Debt service (Note 4) : Principal retirement on bonds Interest and fiscal charges Payments on loans fram city TOTAL EXPENDITURES OTHER FINANCING SOURCES: IDans from(Note EXCESS OF r1� OTHER SOURCES • Ei' .9► PENDITT)RES AND 1 OTHER USES FUND &UANCES , END OF YEAR Totals Capital Debt (Memorandum Only) Projects Service 1990 1989 $ 311,761 $ 31463,516 $ 31775,277 $ 31800,396 328,350 530,364 858,714 736,083 3.576 640,111 3,993,880 4,633,991 41540,055 885,826 - 885,826 934,367 328,005 - 328,005 464,100 - - - 170,646 255,000 255,000 25,000 - 658,913 658,913 636,336 842,000 842,000 1,704,789 11213,831 11755,913 2,9691744 3,935,238 (573,720) 2,237,967 11664,247 604,817 1,342,000 - 1,342,000 803,250 768,280 21237,967 31006,247 11408,067 318471512 5,321,378 91168,890 71760,823 $ 4,615,792 $ 71559,345 $12,175,137 $ 9,168,890 See independent auditors' report and notes to financial statements. -3- NOTES TO FINANCIAL S'I'ATHNTS (Continued) June 30, 1990 1. Mg4A Y OF SIGTMCWr ACCO NrING POLICIES (CON'MU] D) : D. Budgetary Reporting: 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 meaningful and accordingly, no budgetary information is included in the aeccupanying financial statements. E. Investments: Investments are stated at cost. No loss is recorded when market values decline below cost as such declines are considered temporary. The Agency intends to either hold the investments until maturity, or until market values equal or exceed cost. F. Total Columns on Combined Statements: The combined financial statements include total colum-is, which aggregate the financial statements of the fund types and account group. The columns are designated "memorandum only" because the totals are not ccuparable to a consolidation. The Tustin C =inity Redevelopment Agency was established in 1976 for the purpose of providing needed public improvements and facilitating economic development within the Town Center Project Area and the South Central Redevelopment Project Areas. The City Council serves as the Agency Board of Directors and City staff provide required Agency staff support. The Agency is administered in accordance with the Town Center Area Redevelopment project Area and the South Central Project Area plans and State redevelopment law. Agency expenses include capital improvement projects and operating costs which include required staff support and consultant services. The Agency's primary source of revenue comes from property taxes, referred to in the accon-panying financial statements as "tax increment revenue". The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. See independent auditors' report. -5- TUSTIN COMMUNITY REDEVEMPMENT AGENCY NarES TO FINANCIAL STATEMENTS (Continued) June 30, 1990 3. CASH AND INVESTMENT'S (CONTINUED) : Under provisions 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 instruments: a. Bankers acceptances. b. Negotiable certificates of deposit. c. C xmw-rcial paper. d. Repurchase agreements. e. local Agency Investment Fund. The California local Agency Investment Fund (IAIF) is a special fund of the California State Treasury through which local governments may pool investments. The Agency may invest up to $10,000,000 in the fund. Investments in IAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. Classification of Deposits and Investments By Credit Risk Deposits and investments are classified into three categories of credit risk. These categories are as follows: Deposits: Category 1 - Deposits which are insured by FDIC, FSLIC, a state depository insurance fund or a multiple -financial institution collateral pool, or deposits which are collateralized with securities held by the Agency or the Agency's agent in the Agency's name. Category 2 - Deposits which are collateralized with securities held by the pledging financial institutions trust department in the Agency's name. Category 3 - Deposits which are uncollateralized, or collateralized but the pledged securities are not held in the Agency's name. Investments: Category 1 - Investments which are insured by SIPC, or where the securities are held by the Agency or the Agency's agent in the Agency's name. Category 2 - Investments which are uninsured, where the securities are held by the purchasing financial institution's trust department or agent in the Agency's name. See independent auditors' report. -7- TUSl�J QOMMUNm REDEvE DPnENr AGENCY NaIES TO FUMNCIAL STATE14ENTS (Continued) June 30, 1990 a. Tax Allocation Bonds (Continued): Bonds of $255,000 were retired during the year ended June 30, 1990. Interest on the 1987 bonds is payable semiannually on May 1 and November 1, with principal maturing annually on November 1. Debt service requirements to maturity are as follows: Year Ending Principal November 1, Maturing Total Interest Debt Rate Interest Service 1990 $ 270,000 4.90 $ 531,820 $ 801,820 1991 285,000 5.20 518,590 803,590 1992 300,000 5.40 503,770 803,770 1993 315,000 5.70 487,570 802,570 1994 3351,000 5.90 469,615 804,615 1995 355,000 6.20 449,850 804,850 1996 375,000 6.40 427,840 802,840 1997 400,000 6.70 403,840 803,840 1998 425,000 7.00 3771F040 802,040 1999 455,000 7.10 347,290 802,290 2000 4901000 7.20 314,985 804,985 2001 525,000 7.30 279,705 804,705 2002 560,000 7.30 241,380 801,380 2003 605,000 7.40 200,500 805,500 2004 645,000 7.40 155,730 800,730 2005 695,000 7.50 108,000 803,000 2006 745,000 7.50 55,875 800,875 Totals $ 7,780,000 $ 5,873,400 $ 13,653,400 The Agency is required to deposit an amount equal to the lesser of 10 percent of the principal amount of the bonds or maximum annual debt service on the bonds in a reserve account. At June 30, 1990, the Agency was required to have a reserve of $801,820. The amount of cash held by fiscal agent in a reserve account was $866,827. The amount available at June 30, 1990 in the Debt Service Fund to service the tax allocation bonds was $7,5591345. See independent auditors' report. -9- RON so Pi 9 0 4 1 mi e i VA I'lem I z I Wki oll 4 F."y TUSTrIN CQV24JNITY REDEVEMPMENT AGENCY OMBINING BALANCE SHIDET - AIL CAPITAL PRWECIS FUNDS June • 1990 South 1 4: itI • A LIABILITIES: Accounts payable and accrued expenses $ 35,655 $ 721 $ - $ 36,376 $ 11,951 FUND BALANCES: Reserved for: low income housing - - 1,254,197 11254,197 857,093 Unreserved: Designated for capital outlay 11110,253 21251,342 - 3,361,595 2,990,419 TOTAL F= BALANCES 1,110,253 2,251,342 1,254,197 41615,792 3,847,512 TO'T'AL LT -ARIL r= AND FUND BALANCES S 1,145,908 S 2.252,063 S 1,254,197 S 4.652,168 S 3,859,463 See independent auditors' report. -11- Center Central LCw Project Proj ect Income Totals ASSETS Area Area Housing 1990 1989 Cash and investments $ 976,409 $ 21252,063 $ 11252,966 $ 41481,438 $ 31687,722 Taxes receivable - - 1,231 11231 71761 Accrued interest receivable 169,499 - - 169,499 164,025 TOTAL ASSETS $ 1,145,908 $ 2,252,063 $ 1,254,197 $ 4,652,168 $ 3,859,463 1 4: itI • A LIABILITIES: Accounts payable and accrued expenses $ 35,655 $ 721 $ - $ 36,376 $ 11,951 FUND BALANCES: Reserved for: low income housing - - 1,254,197 11254,197 857,093 Unreserved: Designated for capital outlay 11110,253 21251,342 - 3,361,595 2,990,419 TOTAL F= BALANCES 1,110,253 2,251,342 1,254,197 41615,792 3,847,512 TO'T'AL LT -ARIL r= AND FUND BALANCES S 1,145,908 S 2.252,063 S 1,254,197 S 4.652,168 S 3,859,463 See independent auditors' report. -11- CICMBINING EMANCE SHEEr:11: DI• M D. June 30, ••0 T.TABIISTIES AND FUND BAIANCES LIABILITIES: Due to City of Tustin $ 338,500 $ 82,500 $ 421,000 $ 706,125 FUND BALANCES: Reserved for debt service 41063,652 3,495,683 7,559,345 5,321,378 TOTAL LIABILITIES AND FUND BALANCES $ 4.402.152 S 3.578.193 S 7.980.345 S 6.027.503 See independent auditors' report. -13- Town South Center Central Project Project Totals ASSETS Area Area 1990 1989 Cash and investments $ 3,508,043 $ 31573,262 $ 71081,305 $ 5,1381761 Cash with fiscal agent 866,827 - 866,827 842,820 Taxes receivable 271,282 4,931 321,213 45,922 TOTAL ASSETS $ 41,402,152 $ 3,578,193 $ 7,980,345 $ 61,027,503 T.TABIISTIES AND FUND BAIANCES LIABILITIES: Due to City of Tustin $ 338,500 $ 82,500 $ 421,000 $ 706,125 FUND BALANCES: Reserved for debt service 41063,652 3,495,683 7,559,345 5,321,378 TOTAL LIABILITIES AND FUND BALANCES $ 4.402.152 S 3.578.193 S 7.980.345 S 6.027.503 See independent auditors' report. -13- •• 1 • �� • • ISI • !!� September 18, 1990 •�-� •� •• -�••-� • ••, I• •+ • r • � � �. • • • • • �• � • • ISI • els •�. In connection with our audit of the financial statements of the Tustin Cc=wnity Redevelopment Agency of and for the year ended June 30, 1990, we have performed, to the extent applicable, the tests of compliance as required by Health and Safety Code Section 33080.1 and Sections I through V of the "Guidelines for Compliance Audits of California Redevelopment Agencies" issued by the State Controller. Based on the above auditing procedures, we noted no instances of noncompliance with the laws, regulations and administrative requirements governing special activities of the Agency for the year ended June 30, 1990. W, I -15-