HomeMy WebLinkAboutRPT 2 RDA ANNUAL REPORT 12-18-84 REPORTS
NO, 2
32-18-84
D Ar
CHATE: December li , 1984 Inter - Com s��
Honorable Mia y)r and Members of City Counci 1 � .G"a
TO:
Ronald A. t, Finance Director
FRAM:
1983-84 Red velopment Annual Report
SUBJECT:
RECOMMENDATION
Review and file.
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19$3-84 ANNUAL REPORT
REDEVELOPMENT
AGENCY
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ANNUAL REPORT
CITY OF TUSTIN
REDEVELOPMENT AGENCY
FY 1983-a4
RDA BOARD
Ursula E. Kennedy, Chairperson
Frank H. Greinke, Chair Pro-Tempore
Donald J. 5altarelli
Ronald B. Hoesterey
Richard B. Edgar
STAFF
Bill Huston, Executive Director
Ron Hault, 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
Submitted by:
William A. Huston
Executive Director
December 3, 1984
TABLE OF COlITEKTS
PAGE
I. INTRODUCTION 1
II. REDEVELOPMENT AGENCY REVIEW 2
A. Purpose and Activities 2
B. Personnel 2
C. Resources and Expenditures 3
D. Projected Revenues 4
III. CHRONOLOGICAL HISTORY OF THE TUSTIN REDEVELOPMENT 5
AGENCY 1983-84
IV. 14AJOR PUBLIC PROJECTS WITHIN REDEVELOPMENT AREA 7
V. MAJOR PRIVATE PROJECTS WITHIN REDEVELOPMENT AREA 8
VI. GOALS AND ACHIEVEMENTS FOR 1983-84 9
VII. GOALS AND PROJECTS FOR 1984-85 9
VIII. RECOMMENDATIONS FOR NEEDED LEGISLATION lO
IX. HOUSING AND DISPLACEMENT 11
X. AUDIT REPORT (SEPARATE COVER)
I. INTRODUCTION
The City of Tustin Redevelopment Agency was created by Ordinance No. 596 on
October 4, 1976 for the purpose of revitalizing commercial properties in the
Town Center (TC).
On August 1, 1984, Ordinance No. 890 was adopted creating the South/Central
Project (S/C) for the purpose of removing blight, constructing missing public
improvements and improving housing conditions for low and moderate income
households. The project areas are identified by Exhibit I.
This report is submitted pursuant to Division 24, Part I, Chapter I, Article 5,
Section 33080 of the Health and Safety Code of the State of California. The
report contains the following:
a. An independent financial audit;
b. A work program and goals for the coming year;
C. An examination of the previous 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 public and private sector
within the project areas.
Amendments to Article 5, Part 1, Division 24 of the California Health and Safety
Code, effective January 1, 1985, will require different reporting information
and format from that of previous years.
The 20% housing fund set aside is not applicable to the Town Center Project Area
since the project was created prior to this requirement of law. No property tax
increment was received for FY 1983-84 from the South/Central Project Area and no
housing funds have been accumulated. It is anticipated that $20,000 will be
accumulated in a housing fund during FY 84-85 from property tax increment.
The outstanding accomplishment for FY 1983-84 was the creation and adoption of
the South/Central Project Area. This project was adopted without protest and
with the support of a citizens' advisory committee comprised of residents of the
area and representatives of community organizations.
The following sections are a review of the agency's activities during FY 83-84.
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r '
II. REDEVELOPMENT AGENCY REVIEW
A. 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, undergrounding 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.
8. 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. Greinke
Ronald S. Hoesterey
Donald J. Saltarelli
Executive Director: William A. Huston
Treasurer: Ron Hault
Secretary/Clerk: Mary Wynn
Attorney: James G. Rourke
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• e f y
C. Resources and Expenditures
Capital Projects Fund:
$ 5,180,091
Fund Balance - June 30, 1983
Revenues:
Interest Earned $ 515,939
Other -0-
515,939
Expenditures:
General Government $ 293,205
Capital Improvements 246,894
540,099
Fund Balance - June 30, 1984 $ 5,155,931
Debt Service Fund:
Fund Balance - June 30, 1983 $2,121,713
Revenues:
Taxes $ 1,270,393
Interest Earned 176,533
Intergovernmental Revenues 82,838
1,529,764
Other Financing Sources (uses):
Bond Proceeds $ -0-
Operating Transfers Out -0-
-0-
Expenditures:
Principal Debt Retirements $ 85,000
Interest and Fiscal Charges 800,845
B85,845
Fund Balance - June 30, 1984 $ 2,765,632
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D. Projected Revenues
1. Town Center project Area
Based on approved and pending projects, tax allocation revenues
of the Tustin 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 1,B82,000
1988-89 1,B90,000
1989--90 1,897,000
1990-91 1,903,000
1991-92 1,908,000
(Source: Katz, Hollis, Coren & Associates)
2. South/Central Project Area
Housing 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
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III. CHRONOLOGICAL HISTORY OF THE TUSTIH REDEVELOPMENT AGENCY 1983-84
July 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 Midori Gardens in the amount of $9,600 for
landscape maintenance of E1 Camino Real/Main Street.
August 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.
September Approved architectural design of condominium project (Use Permit No.
83-16) at the southerly terminus of Newport Avenue in the
South/Central Project area.
October Discussion of an application for a budget motel on Laguna Road.
Subject application was withdrawn due to community protests.
November 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.
December Acknowledged receipt of the Environmental Impact Report for the I-5
and 55 Freeway Interchange modifications.
Approved design of an office building proposed for 14772 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.
January 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 El
Camino Real.
Approved the design of 13 unit townhouse at 1042-1062 Walnut Street
in the South/Central Project area.
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February Approved the design of an office building at the northwest corner of
Irvine Blvd. and Holt Avenue.
Approved a modification of the design of an office building at 14772
Plaza Drive.
Approved the design of a commercial building proposed for 14311
Newport at McFadden Avenue in South Central Project area.
March Approved design of a residential project proposed for 14851-14921
Newport Avenue.
Appropriated $18,400 for traffic signal relocation and driveway
modification for Tustin Heights Shopping Center.
Appropriated $21,000 for median modification on First Street between
"B" Street and Newport Avenue.
Approved the design of a commercial building at the southeast corner
of Centennial Way and First Street.
April Approved plans and specifications for Columbus Tustin water well .
Reorganization on April 17, 1984 with Ursula E. Kennedy as
Chairperson and Frank H. Greinke as Chair Pro Tempore.
May 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 Hydrohics for the
Columbus Tustin water well.
June Directed staff to pursue the purchase of a trailer stage.
Authorized a proclamation for Dr. Hans Vogel .
Approved the borrowing of $125,000 at 12% interest from the city' s
General Fund for the South/Central Project area.
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IV. MAJOR PUBLIC PROJECTS WITHIN REDEVELOPMENT 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 Irvine 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
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Y. }MAJOR PRIVATE PROJECTS WITHIN THE REDEVELOPMENT AREA
EXCEEDING $100,000 PERMIT VALUE (1982-83)
Town Center Area
New Developments
Office/Commercial Address Permit Value
Burnett-Ehline Dev. 18231 Irvine Boulevard $ 558,000
Lewis Properties 1.4772 Plaza Drive 493,350
El Camino Plaza 600 El Camino Real 120,000
Redevelopment and Additions
Mervyn' s Dept. Stare 18182 Irvine Blvd. $ 325,000
Mancha Development 450 E. First 126,997
South/Central Area
None *
* 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.
V I. GOALS AND ACHIEVEMENTS FOR 1983-84
The primary goal for 1983-84 was the adoption of the South/Central Redevelopment
Project area and the identification and prioritizing of projects within the
area. The South/Central Project area was approved by the City Council by
Ordinance No. 890 on August 1, 1983. The area was targeted for public
improvements and HCOA funds were committed and expended for storm drainage on
Mitchell Avenue, easterly of Newport avenue.
The following budgeted capital improvement projects were completed:
Undergrounding at Holt and Newport $ 20,000
First and Prospect signal modification 55,000
Irvine Blvd. median landscape and irrigation
between Prospect and Halt 60,836
First Street median island pavement between
"B" Street and Newport Avenue 21,000
Irvine Blvd. signal interconnect and new
installation at Fashion Lane 36,764
Relocation of signal and driveway at
Irvine Blvd. and Old Irvine 18,400
The following projects were initiated during FY 1983-84 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 in total or the project initiated in 1983-84 with completion
scheduled for FY 1984-85.
VII. GOALS AND PROJECTS FOR FY 1984-85
Capital Improvement Projects budgeted for 1984-85 include the following:
Town Center Projects
Project Budget Allocation
Undergounding and Street Lighting:
Holt Avenue between Newport and Irvine Blvd.* $ 90,000
Irvine Blvd. between Holt Ave. and Newport Ave. 82,500
Newport Ave. between Holt Ave. and 250' northerly 50,000
Water supply and distribution:
Construct water well/test hole * 250,000
Nitrate blending line for wells No. 2 and 3 * 150,000
s—M,500
�* continuing projects)
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r '
South Central Projects
Project Budget Allocation
Newport Avenue Extension
EI R and PITC Application $ 3,000
Preparation of plans and specifications 56,000
59,00
Goals for 1984-85 include the implementation of the Town Center Plan. It is
proposed that consultant services will prepare a design element and solicit
developer proposals for the redevelopment of commercial properties on El Camino
Real .
The Agency will cooperate and promote the redevelopment of the Irvine/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, Redhill, 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 Edinger into the area proposed for amendment to
the South/Central Project Area.
VIII. 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. 49, October
1984)
A8 203 may eliminate the threat of litigation.
-10-
If the intent of the Legislature remains as originally stated in the Community
Redevelopment Law, Section 33353.5 of the Health and Safety Code should he
amended by adding: "The Redevelopment Agency shall not be obliged 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
di splacement.
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.
A. Households displaced during FY 1.983-84 0
B. Households estimated to be displaced during FY 84-85 0
C. Demolitions:
1. Total number of dwelling units housing low
and moderate income families demolished FY 84-84 4
2. Total number of dwelling units demolished as
part of a redevelopment project during FY 83-84 0
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 1982-83. 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 Tustin as follows:
7 Single family rehabilitation loans $ 100,650
1 Apartment house (4-unit) 30,000
1 Mobilehome 3,000
133,650
E. 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.
X. AUDIT REPORT
(Separate cover. )
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TUSTIN COMMUNITY REDEVELOPMENT AGENCY
ANNUAL FINANICAL REPORT
JUNE 30, 1984
Table of Contents
June 30, 1984
Page
FINANCIAL SECTION
Accountants' Report 1
General Purpose Financial Statements:
Combined Balance Sheet 2
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Governmental
Fund Types 3
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balance Budget and Actual -
Capital Projects Funds 4
Notes to Financial Statements 5
Combining and Individual Fund Financial Statements :
Combining Balance Sheet - All Capital Projects Funds 9
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Capital Projects Funds 10
Statements of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - Capital Project Funds:
South Central Project Area 11
Town Center Project Area 12
COMPLIANCE SECTION
Compliance Letter 13
onis m 610 NEWPORT CENTER DRIVE.SUITE 500
`a"'j y NEWPORT BEACH,CALIFORNIA 92660
(714)640-1333
loreland
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.
�l
. I
Tustin Community Redevelopment Agency
Combined Balance Sheet
June 30, 1984
Governmental Fund Types AccoounntapGroup Totals
i a e eneral Long- {Memorandum Orly)
Projects Service Term Debt 1984 1983
Assets
Cash and investments $5,160,300 $2,699,963 $ 7,860,263 $ 7,341,180
Taxes receivable 42,125 42,125 19,572
Accrued interest receivable 99,122 23,544 122,666 121 ,315
Due from City of Tustin 105,182 105,182
Amount available in debt
service fund $2,765,632 2,765,632 2,121,713
Amount to be provided for long-
term debt 5,649,368 5,649,368 6,378,287
Total Assets $5,364,604 $2,765,632 $8,415,000 $16,545,236 $15,982,067
Liabilities and Fund Balances
Liabilities:
Accounts payable and accrued
expenses $ 17,259 $ 17,259 $ 4,858
Due to City of Tustin 191 ,414 191,414 175,405
Long-term debt (Note 2) $8,415,000 8,415,000 8,500,000
Total Liabilities 208,673 8,415,000 8,623,673 8,680,263
Fund Balances:
Reserved for debt service $2,765,632 2,765,632 2,121,713
Unreserved:
Designated for Capital
Outlay 5,155,931 5,155,931 5,180,091
Total Fund Balances 5,155,931 2,765,632 7,921,563 7,301,804
Total Liabilities and
Fund Balances $5,364,604 $2,765,632 $8,415,000 $16,545,236 $15,982,067
See 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, 1984
Governmental Fund Types Totals
Capita Debt— memorandum n y
Projects Service 1984 1983
Revenues:
Taxes $1,270,393 $1,270,393 $1,201,369
Interest $ 515,939 176,533 692,472 568,311
Intergovernmental revenues 32,838 82,838 133,984
Other 136,747
Total Revenues 515,939 1,529,764 2,045,703 2,040,911
Expenditures;
Current:
General government 293,205 293,205 1,211,270
Capital expenditures 246,894 246,894 2,272,363
Debt service:
Principal retirement 85,000 85,000
Interest and fiscal charges 800,845 800,845 399,576
Total Expenditures 540,099 885,845 2,425,944 3,883,209
Excess (Deficiency) of
Revenues over Expenditures (24,160) 643,919 619,759 (1,842,298)
Other Financing Sources:
Band proceeds 8,252,961
Excess (Deficiency) of
Revenues and other
Financing Sources over
Expenditures (24,160) 643,919 619,759 6,410,663
Fund balances, beginning
of year 5,180,091 2,121,713 7,301,804 891,141
Fund balances, end of year $5,155,931 $2,765,632 $7,921,563 $7,301,804
See Accompanying Notes to Financial Statements.
3
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
1984 1983
Variance
Favorable
Budget _ Actual (Unfavorable) Actual
Revenues:
Interest earned $ 425,000 $ 515,939 $ 90,939 $ 387,087
Other 136,747
Total Revenues 425,000 515,939 90,939 523,834
Expenditures:
General government 358,243 293,205 65,038 1,211,270
Capital expenditures 618,300 246,894 371,406 2,272,363
Total Expenditures 976,543 540,099 436,444 3,483,633
Excess (Deficiency)
of Revenues over
Expenditures (551,543) (24,160) 527,383 (2,959,799)
Other Financing Sources:
Bond proceeds 6,991,549
Operating transfers in 257,200
Total Other Financing
Sources 7,248,749
Excess (Deficiency) `
of Revenues and
Other Financing
Sources over
Expenditures (551,543) (24,160) 527,383 4,288,950
Fund balance, beginning
of year 5,180,091 5,180,091 891,141
Fund balance, end of year $4,628,548 $5,155,931 $527,383 $5,180,091
See Accompanying Notes to Financial Statements.
4
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 Projects Funds - The Capital Projects Funds are used to account for
ti nancia resources Eo 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 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
financial position. It is not involved with measurement of results of
operations.
5
3
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 $3,168,974 $3,168,974
Cash with fiscal agents 2,690,659 2,690,659
Debt instruments of U.S. Government
or Agency thereof (see below) 2,D00,630 1,791,835
Total $7,860,263 $7,651,468
The market value of the debt instruments at the conclusion of the audit was
approximately $1,949,907.
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.
6
Tustin .Community Redevelopment Agenc
Notes to Financial Statements (Cont.
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.
2. 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
Balance, July 1 , 1983 $8,500,000
Debt Retired 85,000
Balance, June 30, 1984 $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:
7
Tustin Community Redevelopment Agency
Notes to Financial Statements (Cont.]
Year Ending Tax
,lune 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.
8
Tustin Community Redevelopment Agency
Combining Balance Sheet
All Capital Projects Funds
June 30, 1984
South Town
Central Center Totals 1983
Project Area Project Area
Assets
Cash and investments $ 120,965 $5,039,335 $5,160,300 $5,286,649
Accrued interest receivable 99,122 99,122 73,705
Due from City of Tustin 105,182 105,182
Total Assets $ 120,965 $5,243,639 $5,364,604 $5,360,354
Liabilities and Fund Balances
Liabilities:
Accounts payable and
accrued expenses $ 79 $ 17,180 $ 17,259 $ 4,858
Due to City of Tustin 131,035 60,379 191,414 175,405
Total Liabilities 131,114 11,559 208,673 180,263
Fund Balances:
Unreserved:
Designated for Capital
Outlay (10,149) 5,166,080 5,155,931 5,180,091
Total Fund Balances (10,149) 5,166,080 5,155,931 5,180,091
Total Liabilities and
Fund Balances $ 120,965 $5,243,639 $5,364,604 $5,360,354
9
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
South Town
Central Center Totals
Project Area Project Area 1,984 1983
Revenues:
Interest earned $ 515,939 $ 515,939 $ 387,087
Other 136,747
Total Revenues 515,939 515,939 523,834
Expenditures:
General government $ 10,149 283,056 293,205 1,211,270
Capital expenditures 246,894 246,894 2,272,363
Total Expenditures 10,149 529,950 540,099 3,483,633
Excess (Deficiency)
of Revenues over
Expenditures (10,149) (14,011) (24,160) (2,959,799)
Other Financing Sources:
Bond proceeds 6,991,549
Operating transfers in 257,200
Total Other Financing
Sources 7,248,749
Excess (Deficiency)
of Revenues and
Other Financing
Sources over
Expenditures (10,149) (14,011) (24,160) 4,288,950
Fund balances, beginning
of year 5,180,091 5,180,091 _891,141
Fund balances, end of year ${10,149} $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 1983
Variance
Favorable
Budget Actual (Unfavorable Actual
Expenditures:
General government $ 10,149 $(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 1983
Variance
Favorable
Sudget_ Actual (Unfavorable) Actual
Revenues:
Interest earned $ 425,000 $ 515,939 $ 90,939 $ 387,087
Other 136,747
Total Revenues 425,000 515,939 90,939 523,834
Expenditures:
General government 358,243 283,056 75,187 1,211,270
Capital expenditures 618,300 246,894 371,406 2,272,363
Total Expenditures 976,543 529,950 446,593 3,483,633
Excess (0eficiency)
of Revenues over
Expenditures (551,543) (14,0]1) 537,532 (2,959,799)
Other Financing Sources:
Bond proceeds 6,991,549
Operating transfers in 257,200
Total Other Financing
Sources 7,248,749
Excess (Deficiency)
of Revenues and
Other Financing
Sources over
Expenditures (551,543) (14,011) 537,532 4,288,950
Fund balance, beginning
of year 5,180,091 5,180,091 891,141
Fund balance, end of year $4,628,548 $5,166,080 $537,532 $5,180,091
12
810 NEWPORT CENTER DRIVE,SUITE 500
1 mons s NEWPORT BEACH,CALIFORNIA 92860
oreland �' (7141640.1333
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 accordinvly
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.
F. 1
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