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HomeMy WebLinkAboutCC 5 RDA ANN'L RPT 12-19-83December ~3, 1983 CONSENT CALENDAR NO. 5 12-19-83 FRON: SUBJECT: Honorable May~r and City Council R. K. Fleagle, Consultant ~'~j ~,,~' RDA ANNUAL REPORT J Recommendation Adoption of Resolution No. 83-[10, approving the Annual Report of the Redevelop- ment Agency for Fiscal Year 1982-83. Background Section 33080.2 of the Community Redevelopment Law requires the City Council to review the Annual Report of the Redevelopment Agency and take any action which it deems appropriJte on the'report, no later than ~he first meeting of the City Council occurring more than 21 days from ~eceipt of the report. Upon City Council approval, the report will b~ transmitted to the State Depart- ment of Housing and Community Development R. K. Fleagle es attachment RESOLUTION NO. 83-110 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE ANNUAL REPORT OF THE REDEVELOPMENT AGENCY FOR FISCAL YEAR 1982-83 WHEREAS, the Redevelopment Agency of the City of Tusttn prepared an Annual Report for.Fiscal Year 1982-83, and said repor~ was approved and trans- mitted to the City Council by Resolution No. RDA 83-7 on November 21, 1983. ? NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin, California, has reviewed the Annual Report of the Tustin Redevelopment 8 Agency for Fiscal Year 1982-83 and approves the findings, program and recom- mendations of the report, including the independent financial audit report. 9 10 11 12 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, on the lgth day of December, 1983. 18 ATTEST: 14' 15 MARY E. WYNN, CIIY CLERK ]6 STATE OF CALIFORNIA) COUNTY OF ORANGE ) CITY OF TUSTIN ) RONALD B. HOESTEREY, MRYOR MARY E. WYNN, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the mem- bers of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 83-110 was duly and regularly introduced, passed and adopted at a regular mee't~l-6~'-of the City Council held on the 19th day of December, 1983, by the follo~ng vote: 17 18 I9 20 21 22 23 24 25 AYES : NOES : ABSENT: COUNCILPERSONS: COUNCILPERSONS: COUNCILPERSONS: 26 27 28 MARY E. WYNN, City Clerk City of Tustin, California Tustin Con.unity Redevelopment Agency Annual Financial and Compliance Report June 30, 1983 _~imonls ~S~oreland ~ ~. Tustin Con.unity Redevelopment Agency Table of Contents June 30, 1983 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 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Notes to Financial Statements COMPLIANCE SECTION Compl lance Letter Page 3 ,imonis l oreland August 26, 1983 610 NEWPORT CENTER DRIVE, SUITE 1325 NEWPORT BEACH, CALIFORNIA 92860 (714) 640-1333 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, 1983, 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 statements referred to above present fairly the financial position of the Tustin Community Redevelopment Agency at June 30, 1983 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. Assets Cash and short-term investments Taxes receivable ~ccrued interest receivable ~nount available in debt I. service fund ~mount to be.provided for . payment of long-term debt Total Assets !-_.abilities and Fund Balances J~iabilities: Accounts payable and accrued expenses Due to City of Tustin Long-term debt {Note 2) I. Total Liabilities Fund Balances: Reserved for debt service Unreserved: Designated for Capital Outlay Total Fund Balances Total Liabilities and Fund Balances Tustin Community Redevelopment Agency Combined Balance Sheet June 30, 1983 Governmental Fund Types Capital Debt Projects Service Account Group Totals General Long- (Memorandum Only) Term Debt 1983 1982 $5,286,649 $2,054,531 19,572 73,705 47,610 $ 7,341,180 $2,079,672 19,572 17,231 121,315 38,437 $2,121,713 2,121,713 6,378,287 6,378,287 450,000 $5.360.354 $2.121,713 $8.500.000 $ 4,858 175.405 $8,500,000. 8,500,000 $2,121,713 180.263 2.121.713 5.180.og1 5.180.091 $5.360.354 $2.121,713. $8.500.000 $15.982.067 $2,585.340 4,858 $ 20,537 175,405 1.223.662 8,500,000 450,000 8,680,263 1,694,199 2,121,713 5.180,091 891,141 7.301.804 891.141 $15.982.067 $2.585.34K S_ee Accompanying Notes to Financial Statements. · -2- Tustin Community Redevelopment Agency 'Combined Statement of Revenues, Expenditures and Changes In Fund Balances - All Governmental Fund Types For the Year Ended June 30, 1983 T~evenues: Taxes Interest Intergovernmental revenues Other Total Revenues J£xpenditures: Current General government Capital expenditures Debt service: Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues over Expenditures Tither Financing Sources {Uses): Bond proceeds Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess {Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses :und balances, beginning I_ of year Fund balances, end of year Governmental Fund Types Capital Debt Projects 'Service $1,201,369 387,087 181,724 133,984. 136.747 523.834 1.517,077 ~,211,270 2,272,363. 3.483,633 399.576 399,576 (2.959,799) 1.117,501 6,991,549 1,261,412 257,200 (257,200) {257,200) 257,200 7,248,749 1,004,212 4,288,950 2,121,713 891.141 $5.180,091 $2,121,713 $ {Memorandum Only) Interfund Eliminations 1983 $1,201,369 568,81i 133,984' 136,747 2,040,911 1,211,270 2,272,363 399.576 3,883,209 (1,842,298) 8,252,961 8,252.961 6,410,663 891.141 $7,301,804 See Accompanying Notes to Financial Statements. 1982 $1,110,858 137,232 57,627 1,305,717 166,006 1,242,83¢ 1.408,836 (103,11~ 450,00( 450,00( 346,88 544.26 $ 891,14 Tustin Conmunity Redevelopment Agency Statement of Revenues, Expenditures, and Changes-in Fund Balance - Budget and Actual Capital Projects Fund For the Year Ended June 30, 1983 Revenues: Taxes Interest earned Intergovernmental revenues 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 Rudget 35,000 35.000 1983 Actual Variance Favorable Unfavorabl e) $ 387,087 $ 352,087 136.747 136.747 523.834 488,834 1982 Actual $1,110,858 137,232 57,627 1,305,717 169,600 1,211,270 (1,041,670) I66,006 2.367.364 2.272.363 95.001 1.242.830 2.536.964 3.483.633 (946.669) 1,408.836 (2,959,799) (457,835) (103,119) 6,991,549 6,991,549 257.200 257.200 450.000 (2,501,964) 7.248,749 7,248,74q (2,501,964) 4,288,950 6,790,914 891,141 891.141 $(1,610,823) $5,180,091 $6,790,914 346,881 544.260 $ 891,141 See Accompanying Notes to Financial Statements. Tu~cin Community Redevelopment Ager,~y Notes to Financial Statements June 30, 1983 1. Summarv 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 opera- tions 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 land borad fund categories as follows: Governmental Funds: Capital Projects Fund - The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of'major capital facilities. Debt. Service Funds - The Debt Service Funds are 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 govern- mental 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 operating 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 summary 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 results of operations. Tustin Community Redevelopment Agency Notes to FinancSal Statements {Cont.) Basis of Accounting: Basis of accounting refers to when revenues an¢'expenditures are recognized in the accounts and reported in the financial statements. Basis of account- ing 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 Fund. Unexpended and unencumbered appropriations of the governmental funds automatically lapse at the end of the fiscal year,' Investments: Short-term investments are stated at cost or amoritzed cost, which approximates market. 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 s~nce their inclusion would make the statements unduly complex and difficult to read. Total Columns and Interfund Eliminations on Combined Statements: Total columns and interfund eliminations 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. Interfund eliminations have been made in the aggregation of this data. {See Note 3}. Tustin Community Redevelopment Agency Notes to Financial Statements (Cont.) 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, 1983. Balance, July 1, 1983 New Bonds Issued: 1982 Tax Allocation Bonds Debt Retired Balance, June 30, 1983 Tax Note Payable Allocation To City Of Bonds Tustin $450,000 $8,500,000 $8.500,000 Total 450,000 8,500,000 (450.000) (450,000) $ - $8,500,000 Long-term debt payable at June 30, 1983 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 $8.500,000 The annual requirements to amortize debt outstanding included in the General Long-Term Debt Account Group as of June 30, 1983, including interest payments of $13,904,147 are as follows: Year Ending Tax June 30 Allocation Bonds I984 $ 880,860 1985 883,884 1986 881,327 1987 887,996 1988 888,696 Thereafter 17,981,384 S22.404.147 $2,121,713 is available in the Debt Service Fund to service the tax allocation bonds. -7- Tustin Community Redevelopment Agency Notes to Financial Statement's (Cont.} 3.- lnterfund Eliminations Interfund operating transfers of $257,200 have been eliminated in the accompanying combined financial statements. 4. Other Disclosures The Agency was charged approximately $162,161 for administrative costs for the fiscal year ended June 30, 1983 by the City of Tustin. These charges were for salaries and supplies paid by the City for the Agency. Additionally, $60,806 of interest was c.harged by the City to the Agency for the fiscal year ended June 30, 1983 on the loans payable to the City. imonis l oreland 610 NEWPORT CENTER DRIVE, SUITE 1325 NEWPORT BEACH, CALIFORNIA 92660 (714) 640-13~3 December 1, 1983 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, 1983, and have issued our report thereon dated August 26, 1983. 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, 1983. -9-