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Home My WebLink AboutRPT 1 P.C. ACT AGENDA 12-18-84ACTION AGENDA TUSTIN PLAIIIIING CO)IIlSSION REGULAR MEETING DECEHBER 10, 1984 REPORTS NO. 1 12-18-84 CALL TO ORDER: 7:30 p.m., City Council Chambers PLEDGE OF ALLEGIANCE/INVOCATION White, Weil, McCarthy, Puckett, Sharp All Present. ROLL CALL: PRESENTATIONS PUBLIC CONCERNS: (Limited to 3 minutes per person for items not on the agenda) IF YOU WISH TO SPEAK TO THE COMMISSION ON A SUBJECT, PLEASE FILL OUT THE CARDS LOCATED ON THE SPEAKER'S TABLE. ALSO, PLEASE GIVE YOUR FULL NAME AND ADDRESS FOR THE RECORD. None CONSENT CALENDAR: (ALL MATTERS LISTED UNDER CONSENT CALENDAR ARE CONSIDERED ROUTINE AND WILL BE ENACTED BY ONE MOTION. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS PRIOR TO THE TIME OF THE VOTING ON l~E MOTION UNLESS MEMBERS OF THE COMMISSION, STAFF OR PUBLIC REQUEST SPECIFIC ITEMS TO BE DISCUSSED AND/OR REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.) 2. Sharp moved, Wetl second to approve Consent Calendar. Minutes from Planning Commission meeting November 26, 1984. Parcel Map 84-1027, 18231 Irvine Boulevard, Burnett Ehltne. PUBLIC HEARINGS 3. VARIANCE 84-4 Applicant: Location: Request: 5-0 Mr. William Brown 153 N. Yorba Authorization to vary from the minimum lot width, front yard setback and maximum lot coverage requirements of the Single Family (R-l) District. Jeff Davis, Assistant Planner Presentation: Wetl moved, Puckett second to continue to danuary 14, 1985. 5-0 Planning Commission Action Agenda December 10, 1984 page two 4. USE PERMIT 84-27 Applicant: Location: Request: Hughes/Calder on behalf of Lyle Foster 550 West Sixth Street Authorization to construct a storage facility with on-site caretaker's residence and to vary from the minimum parking and side yard setback requirements of the zone. Presentation: Mary Ann Chamberlain, Associate Planner Sharp moved, McCarthy second to approve Use Permit 84-27 and continue Resolution 2201 to the next mmettng to allow staff to add a clause to allow a variance due to hardship. 4-1 (Wetl opposed) ADMINISTRATIVE MATTERS Old Business None. New Business 5. EXTENSION OF USE PERMIT NO. 83-26, SALTARELLI REALTY CO. Location: Request: Presentation: Donald D. Lamm, Director of Community Development Sharp moved, Puckett second to allow a one year extension of Use Permit 83-26. 5-0 The following two items were late additions to the agenda: 5.(a) TENTATIVE PARCEL MAP 84-1033, DOW AVENUE Location: 2911 and 2961 Dow Avenue Request: To subdivide one parcel into two parcels Presentation: Mary Ann Chamberlain, Associate Planner Sharp moved, Wetl second to continue to January 14, 1985 for staff to answer the following questions: 1) What is the Council policy on sewer connection fees for individual parcels; and 2) What is the policy of the Sanitation District. 13751Redhill Avenue A one year extension of use Permit 83-26 which is due to expire on December 12, 1984. Motion carried 5-0. Planning Commission Action Agenda December 10, 1983 page three S.(b) Location: Request: Presentation: PARCEL MAP 83-1027, LAGUNA ROAD 1122 to 1192 Laguna Road To subdivide one prcel into two parcels Mary Ann Chamberlain, Associate Planner Sharp moved, McCarthy second to adopt Resolution 2133 and recommend to the City Council for approval. Motion Carried 5-0. STAFF CONCERNS 6. Report on Council Actions December 3, 1984 Presentation: Donald D. Lamm, Director of Community Development COMMISSION CONCERNS Commissioner McCarthy expressed concern over the "No Right Turn on Red" sign off the corner of Redhill and Bryan. He thought it may be giving children a false sense of security in light of the fact that the sign is violated a great deal. ADJOURNMENT Adjourn to January 14, 1985. Well moved, Puckett second to adjourn at 9:00 p.m. to January 14, 1985. GENDA NO. 2 FDAT:' December 11, 1984 TO: FROM: SUBJECT: Honorable ~a~r and Members of City Council Ronald A. ~, Finance Director 1983-84 Redevelopment Annual Report RECOMMENDATION Review and file. RAN:skr Attachment 1983-84 ANNUAL REPORT REDEVELOPMENT AGENCY ANNUAL REPORT CTTY OF TUSTIN REDEYELOPtlENT AGENCY FY 1983-84 RDA BOARD Ursula E. Kennedy, Chatrpersofl Frank H. Gretnke, Chair Pro-Tempore Donald J. Saltarelll Ronald B. Hoesterey Richard B. Edgar STAFF Bill Huston, Executive Director Ron Nault, Treasurer Mary Wynn, Secretary/Clerk James B. Rourke, Attorney ASSOCIATE STAFF Robert Ledendecker, Public Works Director Donald D. Lamm, Director of Community Development R. Kenneth Fleagle, D.P.A. Consultant Submttted by: William A. Huston Executive Director December 3, 1984 II. III. IV. Ve VI. VII. VIII. IX. TABLE OF COl(TENTS INTRODUCTION REDEVELOPMENT AGENCY REVIEW A. Purpose and Activities B. Personnel C. Resources and Expenditures O. Projected Revenues CHRONOLOGICAL HISTORY OF THE TUSTIN REDEVELOPMENT AGENCY 1983-84 MAJOR PUBLIC PROJECTS WITHIN REDEVELOPMENT AREA MAJOR PRIYATE PROJECTS WITHIN REDEVELOPMENT AREA GOALS ANO ACHIEVEMENTS FOR 1983-84 GOALS AND PROJECTS FOR 1984-85 RECOMMENOATIONS FOR NEEDED LEGISLATION HOUSING AND OISPLACEMENT AUDIT REPORT (SEPARATE COVER) PAGE 10 11 I. The Cl~y of Tusttn Redevelopment Agency was created by Ordinance No. 696 on October 4, 1976 for the purpose of revitalizing commercial propertJes tn the Town Center (TC). On August 1, 1984, Ordinance No. 890 was adopted creattng the South/Central Project (S/C) for the purpose of removtng bltght, constructing mtsstng publlc Improvements and Improving houstng conditions for low and moderate tncome households. The project areas are Identified by £xhlb~t I. Thts report ts submitted pursuant to Dtvtston 24, Part I, Chapter I, Article 6, Sectton 33080 of the Health and Safety Code of the State of CallfornJa. The report contains the following: a. An Independent financial audtt; A work program and goals for the coming year; c. An examination of the prevtous year's achievements related to the goals of the work program; d. Recommendations for needed legislation; e. A description of the Agency's activities affecting housing and displacement. The Annual Report for FY 1983-84 follows the same format as previous years, Indicating major Improvements and projects of the publlc and prtvate sector wtthtn the project areas. Amendments to Arttcle 6, Part 1, Otvtston 24 of the California Health and Safety Code, effective January 1, 1985, wtll requtre different reporting Information and format from that of prevtous years. The 20; housing fund set astde ts not applicable to the Town Center Project Area stnce the project was created prtor to thts requirement of law. No property tax increment was received for FY 1983-84 from the South/Central Project Area and no houstng funds have been accumulated. It ts anticipated that $20,000 wtll be accumulated in a houstng fund durtng FY 84-85 from property tax increment. The outstanding accomplishment for FY 1983-84 was the creation and adoptton of the South/Central Project Area. Thts project was adopted wtthout protest and wtth the support of a citizens' advisory committee comprised of residents of the area and representatives of community organizations. The following secttons are a review of the agency's activities during FY 83-84. -1- II. A. REDEYELOPI~JUIT AGE#CY REVI£)i Purpose and Activities The basic purpose, goals and objectives of the Redevelopment Agency as contained in the Community Redevelopment Law and ordinances of the city remain in effect. The proceeds of the $8.5 million Tax Allocation Bonds are programed for senior citizen housing, undergroundtng of utilities, construction of parking facilities, water system improvements, and land acquisition for private commercial development. Tax increment revenues from the South/Central Project Area are allocated to housing assistance for low and moderate income households and public improvements including storm drainage and street projects. Personnel There was no change in the membership and staff of the Redevelopment Agency from the previous year, with the exception of Ursula E. Kennedy assuming the office of chairperson upon reorganization on April 17, 1984. The Redevelopment Agency, as of June 30, 1984, was comprised of the following: Chairperson: Ursula E. Kennedy Members: Richard B. Edgar Frank H. Gretnke Ronald B. Hoesterey Donald J. Saltarellt Executive Director: William A. Huston Treasurer: Ron Nault Secretary/Clerk: Mary Wynn Attorney: James G. Rourke -2- Resources and Expenditures Capital Projects Fund: Fund Balance - June 30, 1983 Revenues: Interest Earned Other $ 515,939 Expenditures: General Government Capital Improvements $ 293,205 246,894 Fund Balance - June 30, 1984 Debt Service Fund: Fund Balance - June 30, 1983 Revenues: Taxes Interest Earned Intergovernmental Revenues $ 1,270,393 176,533 82,838 Other Financing Sources (uses): Bond Proceeds Operating Transfers Out Expenditures: Principal Debt Retirements Interest and Fiscal Charges $ 85,000 800,845 Fund Balance - June 30, 1984 $ 5,180,091 515,939 540,099 $ 5,155,931 $2,121,713 1,529,764 -0- 885,845 $ 2,765,632 -3- D. Projected Revenues 1. Town Center Project Area Based on approved and pendtng projects, tax allocation mvenues of the Tusttn Town Center Project Area are projected as follows: Year Revenue 1983-84 $ 1,392,000 1984-85 1,501,000 1985-86 .1,720,000 1986-87 1,873,000 1987-88 i1,882,000 1988-89 1,890,000 1989-90 1,897,000 1990-91 1,903,000 1991-92 1,908,000 (Source: Katz, Ho111s, Coren & Associates) 2. South/Central Project Area Houstng Total Year RDA Set-Aside (20~) Revenue 1983-84 -0- -0- -0- 1984-85 $ 80,000 $ 20,000 $ 100,000 1985-86 120,000 30,000 150,000 1986-87 .156,800 39,200 196,000 1987-88' 568,000 142,000 710,000 1988-89 740,000 185,000 925,000 * Assumes South/Central Project Amendment -4- III. July August September October November December January CHRONOLOGZCAL HISTORY OF THE TUSTTN REDEYELOPHE#I* AGENCY 1983-84 The Redevelopment Agency and City Council conducted a public hearing and approved the South/Central Redevelopment Plan on July 18, 1983. Ordinance No. 891 was adopted as an urgency ordinance and Ordinance No. 890 was introduced approving the South/Central Project. A contract was awarded to Midort Gardens in the amount of $9,600 for landscape maintenance of E1 Camtno Real/Main Street. Ordinance No. 890 was unanimously adopted by the City Council approving the South/Central Redevelopment Project. Conduit installation and sidewalk replacement along the frontages of Irvine Blvd., Holt and Newport Avenue were approved in the amount of $20,500. Approved a6chttectural design of condominium project (Use Permit No. 83-16) at the southerly terminus of Newport Avenue in the South/Central Project area. Discussion of an application for a budget motel on Laguna Road. Subject application was withdrawn due to community protests. The Agency Budget and Appropriations Revenue of the Agency for FY 1983-84 was approved by RDA Resolution No. 83-6. The annual report for FY 1982-83 was approved and transmitted to the City Council. Acknowledged receipt of the Environmental Impact Report for the I-$ and 55 Freeway Interchange modifications. Approved design of an office building proposed for [4772 Plaza Drive. Approved design of an office building proposed for 18352-18376 Irvine Blvd. Directed staff to implement undergrounding in conjunction with Tustin Commerce Center. Authorized soliciting bids for water well test drilling at Columbus Tustin and Peppertree Park sites. Approved the design of commercial building at Sixth Street and E1 Camtno Real. Approved the design of 13 unit townhouse at 1042-1062 Walnut Street in the South/Central Project area. -5- February ~arch April M~y June Approved the destgn of an offlce buildtng at the northwest corner of [rvine Blvd. and Holt Avenue. Approved a modification of the destgn of an office building at 14772 Plaza Orive. Approved the design of a commercial building proposed for 14311 Newport at McFadden Avenue in South Central Project area. Approved design of a residential project proposed for 14851-14921 Newport Avenue. Appropriated $[8,400 for traffic stgnal relocation and drtveway modification for Tusttn Heights Shopping Center. Appropriated $2[,000 for median modification on First Street between "8" Street and Newport Avenue. Approved the design of a commercial butldtng at the southeast corner of Centennial Way and First Street. Approved plans and specifications for Columbus Tusttn water well. Reorganization on April 17, [984 with Ursula E. Kennedy as Chairperson and Frank H. Gretnke as Chair Pro Tempore. Authorized the negotiated purchase of the Southern Pacific Land Company parcel (44,660) at Newport and Irvine for a price not to exceed $10.30 per sq. ft. Awarded the bid in the amount of $214,305 to Stang Hydrohtcs for the Columbus Tustin water well. Directed staff to pursue the purchase of a trailer stage. Authorized a proclamation for Dr. Hans Vogel. Approved the borrowing of $125,000 at [2% interest from the city's General Fund for the South/Central Project area. -6- IV. RAJOR PUBLIC PROJECTS ¥IlllIM REDEI/ELOPt~gT AREAS (1983-84) Town Center Area: Street and Traffic Control Projects Median landscape and irrigation on Irvine Blvd. between Prospect and Holt Avenues. * Median island pavement on First Street between "B" Street and Newport Avenue. Undergrounding and street lighting on Holt Avenue between Newport Avenue and Irvtne Blvd. Traffic signal and interconnect on Irvine Blvd. at Fashion Lane. * Modification of traffic signal on First Street at Prospect. * Modification of driveway and signal relocation for Tustin Heights Shopping Center. Water Utility Projects Water well test hole, Beneta Way South/Central Area: None * Carry-over projects -7- Town Center Area RAOOR PRXYATE PROdECTS ~XTIIX# THE REDEVELOP~EET AREA EXCEEDX#G $100,0OO PERMXT VALUE (1982-83) New Developments Address 18231Xrvtne Boulevard 14772 Plaza Drive 600 E1Camino Real Office/Commercial Burnett-Ehline Dev. Lewis Properties E1Camtno Plaza Redevelopment and Additions Mervyn's Dept. Store 18182 Irvtne Blvd. Mancha Development 450 £. First South/Central Area ~one * Permit Value $ 558,000 493,350 120,000 $ 325,000 126,997 Residential redevelopment projects were approved in FY 1982-83 and other residential projects are proposed for FY 1984-85 in the South/Central Project area. -8- V~. GOALS AND ACH~EYE~ENTS FOR 1983-84 The prtma~y goal for 1983-84 Nas the adoptton of the South/Central Redevelopment Project area and the tdentlftcatlon and prioritizing of projects within the area. The South/Central Project area was approved by the City Council by Ordinance No. 890 on August [, [983. The area was targeted for public Improvements and HCDA funds were committed and expended for storm drainage on ~ltchell Avenue, easterly of Newport avenue. The following budgeted capttal improvement projects were completed: Undergroundtng at Holt and Newport $ 20,000 First and Prospect stgnal modification 55,000 [rvtne Blvd. median landscape and irrigation 60,836 be~een Prospect and Holt First Street median island pavement be~'~een "B" Street and Newport Avenue 21,000 [rvtne Blvd. signal interconnect and new Installation at Fashion Lane 36,764 Relocation of signal and driveway at [rvtne Blvd. and Old [rvtne 18,400 The following project~ were Initiated during FY [983-84 with completion scheduled for 1984-85: The construction of a water well/test hole and the construction of a nitrate blending line for wells No. 2 and 3. Of the $450,000 allocated, $50,000 has been expended leaving an appropriation of $400,000 for completion of the project. Goals for 1983-84 have been achieved and the work program has either been completed tn ~otal or the project initiated in 1983-84 with completion scheduled for FY [984-85. ¥[[. GOALS A#D PROJECTS FOR F~ 1984-85 Capital Improvement Pro~ec~s budgeted for 1984-85 include the following: Town Center Pro~ects Budget Allocation Undergoundtng and Street Lighting: Holt Avenue be~een Newport and [rvtne Blvd.* $ 90,000 [rvtne Blvd. be~een ~olt Ave. and Newport Ave. 82,500 Newport Ave. be~een ~olt Ave. and 250' northerly 50,000 ~ater supply and distribution: Construct water well/test hole * 250,000 Nitrate blending line for wells No. 2 and 3 * [50,000 (* continuing projects) -9- Project South Central Projects Budget Allocation Newport Avenue Extension EIR and PUC Application Preparation of plans and specifications $ 3,000 $6,000 $ 59,000 Goals for 1984-85 include the implementation of the Town Center Plan. It is proposed that consultant services will prepare a design element and solictt developer proposals for the redevelopmant of commercial properties on E1Camtno Real. The Agency will cooperate and promote the redevelopment of the Irvlne/Newport commercial center by the acquisition of abandoned railroad right of way and such financial assistance as may be necessary to assure the viability of the project. Goals for the South/Central Project Area include the elimination of substandard housing, the private construction of affordable housing, and the improvement of public right-of-way. The extension of Newport Avenue is an on-going concern of the City Council and Redevelopment Agency. Funds have been allocated for the preparaton of an Environmental Impact Report and the preparation of plans and specifications. Progress in the achievement of this objective is dependent upon the consent of the Public Utilities Commission and the ultimate design of the 55 freeway modifications. An amendment of the South/Central Project Area will be considered to add the blighted industrial area bounded by Edinger, Redhtll, Valencia and the Costa Mesa Freeway. Preliminary studies for the southerly extension of Newport Avenue indicate the necessity for improving the traffic circulation for the area by extending the roadway south of Edtnger into the area proposed for amendment to the South/Central Project Area. ¥III. RECOMMENDATIONS FOR NEEDED LEGISLATION The process of blackmail of one agency of government by another agency of local government continues due to the state legislation that permits other units of government to delay or stop a redevelopment project by bringing a law suit unless they are paid off in terms of a share of the tax increment. The suit of the County of Los Angeles against the Redevelopment Agency of the City of Alhambra is a case in point. To avoid litigation, Alhambra was asked to forfeit 50% of the tax increment revenues. {Reported in CRA Newsletter, No. 4g, October 1984) AB 203 may eliminate the threat of litigation. -10- A. Households displaced during FY ~983-84 [f the lntant of the Legislature remains as originally stated in the Community Redevelopment Law, Section 33353.5 of the Health and Safety Code should be amended by adding: "The Redevelopment Agency shall not be obltged to comply with the requests of the fiscal review committee nor shall the findings of the Redevelopment Agency be the basis of litigation by other agencies of local government in the courts of the State of California." IX. HOUSING IMPACT Section 33080.4 of the Community Redevelopment law requires the annual report to include data pertaining to the Agency's activities affecting housing and displacement.. As of this report, the Redevelopment Agency has not taken action that would affect the supply of housing for low and moderate income families. Upon receipt of tax increment funds from the South/Central Project area, a pro-active position will be forthcoming. The following data is in response to the reporting requirements of the Health and Safety Code. 0 B. Households estimated to be displaced during FY 84-85 0 Demolitions: [. Total number of dwelling units housing low and moderate income families demolished FY 84-84 2. Total number of dwelling units demolished as part of a redevelopment project during FY 83-84 D. Affordable housing constructed, rehabilitated or developed during 83-84 0 The Federal Housing and Community Development Block Grant Program allocated $50,000 for residential rehabilitation loans in Tustin during FY lg82-83. For FY 1983-84, this allocation was increased to $75,000. The FY 1984-85 allocation has been reduced to $25,000 with additional funds to be allocated from Orange County administered funds to meet committed obligations. Home improvement loans have been made within the city of Tustln as follows: Single family rehabilitation loans $ 100,650 Apartment house (4-unit) 30,000 Mobilehome ~ Twenty (20~) percent set-aside funds for low and moderate income housing. The Town Center Project area is exempt from this requirement and no funds were received from tax increments from the South/Central Project area. AUDIT REPORT (Separate cover. ) -11- TUSTIN COI~IUNITY REDEVELOPMENT AGENCY ANNUAL FINANICAL REPORT JUNE 30, 1984 Table of Contents June 30, 1984 FINANCIAL SECTION Accountants' Report General Purpose Financial Statements: Combined Balance Sheet Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Capital Projects Funds Notes to Financial Statements Combining and Individual Fund Financial Statements: Combining Balance Sheet- All Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Capital Projects Funds Statements of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Capital Project Funds: South Central Project Area Town Center Project Area COMPLIANCE SECTION 9 10 11 12 Compliance Letter 13 im°nis oreland 610 NEWPORT CENTER DRIVE, SUITE 500 NEWPORT BE,a~H, CALIFORNIA 92660 (714) 640-1333 August 29, 1984 The Board of Directors of the Tustin Community Redevelopment Agency We have examined the combined financial statements of the Tustin Community Redevelopment Agency as of and for the year ended June 30, 1984, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statments referred to above present fairly the financial position of the Tustin Community Redevelopment Agency at June 30, 1984 and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Tustin Community Redevelopment Agency Combined Balance Sheet June 30, 1984 Governmental Fund Types Account Group capital Debt General Long- Projects Service Term Debt Totals (Memorandum Only) 1984 1983 Assets Cash and investments Taxes receivable Accrued interest receivable Due from City of Tustin Amount available in debt service fund Amount to be provided for long- term debt $5,160,300 $2,699,963 42,125 99,122 23,544 105,182 Total Assets $5,364,604 $2,765,632 $ 7,860,263 $ 7,341,180 42,125 19,572 122,666 121,315 105,182 $2,765,632 2,765,632 2,121,713 5,649,368 5,649,368 6,378,287 $8,415,000 $16,545,236 $15,982,067 Liabilities and Fund Balances Liabilities: Accounts payable and accrued expenses Due to City of Tustin Long-term debt {Note 2) Total Liabilities $ 17,259 191,414 208,673 $8,415,000 $ 17,259 $ 4,858 191,414 175,405 8,415,000 8,500,00~, 8,415,000 8,623,673 8,680,263 Fund Balances: Reserved for debt service Unreserved: Designated for Capital Outlay Total Fund Balances Total Liabilities and Fund Balances $2,765,632 5,155,931 2,765,632 2,121,713 5,155,931 5,180,091 5,155,931 2,765,632 $5,364,604 $2,765,632 7,921,563 7,301,804 $8,415,000 $16,545,236 $15,982,067 See Accompanying Notes to Financial Statements. Tustin Community RedevelQpment Agency Combined Statement of Revenues, Expenditures and Changes In Fund Balances - All Governmental Fund Types For the Year Ended June 30, 1984 Revenues: Taxes Interest Intergovernmental revenues Other Total Revenues Expenditures; Current: General government Capital expenditures Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources: Bond proceeds Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures Fund balances, beginning of year Fund balances, end of year Governmental Fund Types Capital Debt Projects Service $ 515,939 $1,270,393 176,533 82,838 515,939 1,529,764 293,205 246,894 540,099 85,000 800,845 885,845 643,919 (24,160) (24,160) 643,919 5,180,091 2,121,713 $5,155,931 $2,765,632 Totals (Memorandum 1984 1983 $1,270,393 $1,201,369 692,472 568,811 82,838 133,984 136,747 2,045~703 2,040,911 293,205 1,211,270 246,894 2,272,363 85,000 800,845 399,576 1,425,944 3,883,209 619,759 (1,842,298) 8,252,961 619,759 6,410,663 7,301,804 891,141 $7,921,563 $7,301,804 See Accompanying Notes to Financial Statements. Tustin Community Redevelopment Agency Combined Statment of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital.Projects Funds For the Year Ended June 30, 1984 Revenues: Interest earned Other Total Revenues Expenditures: General government Capital expenditures Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources: Bond proceeds Operating transfers in Total Other Financing Sources Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures Fund balance, beginning of year Fund balance, end of year 1984 Variance Favorable . Budget Actual (Unfavorable) $ 425,000 $ 515,939 $ 90,939 425,000 515,939 90,939 358,243 293,205 65,038 618,300 246,894 371,406 ..976,5.4.3 540,099 436,444 1983 Actual $ 387,087 136,747 523,834 1,211,270 2,272,363 3,483,633 (551,543) (24,160) 527,383 (2,959,799) (551,543) (24,160) 5,180,091 5,180,091 527,383 $527,383 $4,628,548 $5,155,931 6,991,549 257,200 7,248,749 4,288,950 891,141 $5,180,091 See Accompanying Notes to Financial Statements. Notes to Financial Statements June 30, 1984 1. Summary of Significant Accounting Policies Description of Funds and Account Group Fund Accounting: The accounts of the Agency are organized on the basis of funds and an account group, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into generic fund types and broad fund categories as follows: Governmental Funds: Capital Pro~ects Funds - The Capital Projects Funds are used to account for ~inancia~ resources to be used for the acquisition or construction of major capital facilities. Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Long-Term Liabilities: The accounting and reporting treatment applied to the long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operatin9 statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a sugary of sources and uses of "available spendable resources" during a period. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The account group is not a "fund." It is concerned only with the measurement of financial position. It is not involved with measurement of results of operations. Tustin Community Redevelopment Agency Notes to Financial Statements (Cont.) 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. All governmental 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. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest on general long-term debt which is recognized when due. Encumbrances: Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the Capital Projects Funds. Unexpended and unencumbered appropriations of the governmental .funds automatically lapse at the end of the fiscal year. Cash and 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. Cash and investments consisted of the following at June 30, 1984: Cost Market Value Cash and time deposits Cash with fiscal agents Debt instruments of U.S. Government or Agency thereof (see below) Total $3,168,974 $3,168,974 2,690,659 2,690,659 2,000,630 1,791,835 $7,860,263 $7,651,468 The market value of the debt instruments at the conclusion of the audit was approximately $1,94g,907. 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 financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Tustin Community Redevelopment Agency Notes to Financial Statements (Cont.) ® Balance, July 1, 1983 Debt Retired Balance, June 30, 1984 Total Columns on Combined Statements: Total columns on the Combined Statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in the total columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Organization: In accordance with Statement 3 of the National Council on Governmental Accounting, Defining the Governmental Reporting Entity, the Agency's financial activities have been included with the financial activities of the City of Tustin for financial reporting purposes of the City. Changes in Long-Term Debt General Long-Term Debt Account Group: The following is a summary of the changes in the General Long-Term Debt Account Group for the year ended June 30, 1984. Tax Allocation Bonds $8,500,000 85,000 $8,415,000 Long-term debt payable at June 30, 1984 is comprised of.the following: Tax allocation bonds: $8,500,000, 1982 tax allocation bonds with interest ranging from 7.75% to 9.75% payable in annual principal installments ranging from $85,000 to $626,000 maturing in 2006. $8,415,000 The annual requirements to amortize debt outstanding included in the General Long-Term Debt Account Group as of June 30, 1984, including interest payments of $13,108,287 are as follows: Tustin Community Redevelopment Agency Notes to Financial Statements (Cont.) Year Ending Tax June 30 Allocation Bonds 1985 $ 883,884 1986 881,327 1987 887,996 1988 888,696 1989 895,771 Thereafter 17,085,613 $21,523,287 $2,765,632 is available in the Debt Service Fund to service the tax allocation bonds. 3. Other Disclosures The Agency was charged approximately $218,315 for administrative costs for the fiscal year ended June 30, 1984 by the City of Tustin. These charges were for salaries and supplies paid by the City for the Agency. The expenditures of $10,149 of the South Central Project Area Capital Projects Fund exceeded appropriations as a budget was not adopted by the Agency for this new fund. Since there was no revenue for the fund, the expenditures resulted in a deficit fund balance of $10,149. Fund activity was financed by a loan from the City. Tustin Community Redevelopment Agency Combining Balance Sheet All Capital Projects Funds June 30, 1984 South Town Central Center Project Area Project Area Totals ~984 1983 Assets Cash and investments Accrued interest receivable Due from City of Tustin Total Assets $ 120,965 $5,039,335 $5,160,300 $5,286,649 99,122 99,122 73,705 105,182 105,182 $ii120,965 $5,243,639 $5,364,604 $5,360,354 Liabilities and Fund Balances Liabilities: Accounts payable and accrued expenses Due to City of Tustin Total Liabilities Fund Balances: Unreserved: Designated for Capital Outlay Total Fund Balances Total Liabilities and Fund Balances $ 79 $ 17,180 131,035 60,379 $ 17,259 $ 4,858 191,414 175,405 131,114 77,559 208,673 180,263 (10,149) 5,166,080 (.10,149) 5,166,080 $ 120,965 $5,243,639 5,155,931 5,180,091 5,155,931 5,180,091 $5,364,604 $5,360,354 Tustin Community Redevelopment Agency Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Capital Projects Funds For the Year Ended June 30, 1984 Revenues: Interest earned Other Total Revenues Expenditures: General government Capital expenditures Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources: Bond proceeds Operating transfers in Total Other Financing Sources Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures Fund balances, beginning of year Fund balances, end of year South Town Central Center Project Area Project Area $ 10,149 10,149 (10,149) (lO,149) $(10,149) $ 515,939 515,939 283,056 246,894 529,950 (14,011) Totals 1984 1983 515,939 $ 387,087 136,747 515,939 52~,83~ 293,205 1,211,270 246,894 2,272,363 540,099 3,483,633 (24,160) (2,959,799) 6,991,549 257,200 ,7,248,749 (14,011) (24,160) 4,288,950 5,180,091 5,180,091 891,141 $5,166,080 $5,155,931 $5,180,091 10 Tustin Community Redevelopment Agency Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund - South Central Project Area For the Year Ended June 30, 1984 1984 Budget Actual Variance Favorable (Unfavorable) 1983 Actual Expenditures: General government $ 10,14g $(10,149) Excess (Deficiency) of Revenues over Expenditures (10,149) (10,149) Fund balance, beginning of year Fund balance, end of year $ $.(10,149) $(10,149) 11 Tustin Community Redevelopment Agency Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund - Town Center Project Area For the Year Ended June 30, 1984 1984 Budget Actual 1983 Variance Favorable (Unfavorable) Actual Revenues: Interest earned Other Total Revenues Expenditures: General government Capital expenditures Total Expenditures Excess (Deficiency) of Revenues over Expendi tu res Other Financing Sources: Bond proceeds Operating transfers in Total Other Financing Sources Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures Fund balance, beginning of year Fund balance, end of year $ 425,000 $ 515,939 425,000 515,939 358,243 283,056 618,300 246,894 976,543 529,9,50 (551,543) (14,011) (551,543) (14,011) 5,180,091 5,180,091 $4,628,548 $5,166,080 $ 90,939 $ 387,087 136,747 90,939 523,8,34 75,187 1,211,270 371,406 2,272,363 446,593 3,483,633 537,532 (2,959,799) 6,991,549 257,200 7,248,749 537,532 4,288,950 891,141 $537,532 $5,180,091 12 imonis oreland 610 NEWPORT CENTER DRIVE, SUITE 500 NEWPOFff BEACH, CALIFORNIA 92660 (714) 640-1333 December 3, 1984 The Board of Directors of the Tustin Community Redevelopment Agency We have examined the general purpose financial statements of the Tustin Community Redevelopment Agency for the year ended June 30, 1984, and have issued our report thereon dated August 29, 1984. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In connection with our examination, we also performed tests of compliance as required by the "Guidelines for Compliance Audits of California Redevelopment Agencies" issued by the Controller's office of the State of California. Based on these procedures, we noted no instances of noncompliance with the regulations for the year ended June 30, 1984. 13