Loading...
1987 02 18 RDA AGENDA LA QUINTA REDEVELOPMENT AGENCY An adjourned regular meeting of the La Quinta Redevelopment Agency, to be held at City Hall, 78-105 Calle Estado, La Quinta, California. February 18, 1987 7:30 p.m. 1. CALL TO ORDER 2. ROLL CALL 3. HEARINGS 4. CONSENT CALENDAR A. Approval of the Minutes of a regular meeting of the La Quinta Redevelopment Agency held February 3, 1987. 1) Motion to approve Consent Calendar. 5. BUSINESS SESSION A. 1986-1987 Redevelopment Agency Audit Report. 1) Motion to accept. 6. ADJOURNMENT BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 5.A. LA QUINTA REDEVELOPMENT A*ENCY FINANCIAL STATEMENTS WITh REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS JUNE 30, 1986 BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY June 30, 1986 CONTENTS Page Number Accountants' Report 1 General Purpose Financial Statements: Combined Balance Sheet All Fund Types and Account Group 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types 3 Notes to Financial Statements 4-8 Supplementary Information: Combining Balance Sheet Capital Project Funds 9 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Project Funds 10 Accountants' Report on Compliance with Audit Guidelines for California Redevelopment Agencies 11 BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 I 4 BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 DiEHL, EVANS AN* COMPANY A PARTNERSHIP INCLUDING ACCOUNrANCY CORPORArIONS WIN 0. PETERS. C.PA. DONALD H. PETERSON, C.P.A. C*RTI*I*D PUELIC ACCOUN*ANTS 0rNE* O**ICES Ar: DONALD E. CALLAHAN, CPA. 9*0 NORTH BUSH STREET 2985 ROOSEVELt STREET *L- PETER SCHERER, CPA. SANTA ANA, CALI*CRN,A 927O6-2*94 CARLSBAD, CALI*ORNIA 9200B-2389 RODNEY K. MCDANIEL. C.PA. RALPH H. WEINTRAUB. C.P.A. 1714) 542-4453 16191 729-2343 20 WEST WOODWARD AVENUE PHILIP H. HOLT*AMP C.PA. CALIrORNIA 92025-gggO THOMAS N. PERLOWSKI. C.RA. ESCONDIDO. EDWARD ORODS*Y, C.PA. 18,9) 741-aIAI ONE CIVIC PLAZA. SUITE 265 ELLIS C. OIEHL. C.P.A. RETIRED NEWPORT BEACH. CALIKORHIA 926EO BRYN B. EVANS. C.RA. RETIRED) September 11 1986 1714) 644-8156 A PROrESSIOkAL CORPORATION ACCOUNTANTS' REPORT Board of Directors La Quinta Redevelopment Agency La Quinta, California We have examined the general purpose financial statements of the La Quinta Redevelopment Agency, as of and for the year ended June 30, 1986, 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 general purpose financial statements referred to above present fairly the financial position of the La Quinta Redevelopment Agency at June 30, 1986 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. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the La Quinta Redevelopment Agency. The information has been sub*ected to the auditing procedures applied in the examination 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. D*1 &\r*vr** * 1- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP June 30, 1986 Governmental Account Fund Types Group Totals Capital Debt Long-Term Memorandum Projects Service Debt Only) ASSETS: Cash and temporary investments Note ic) $ 676 $ *09,321 $ $ 1109,997 Accrued interest receivable 7,826 7,826 Tax increment revenue receivable Note 3) 30,O*5 30,0115 Restricted Assets Note 5): Cash 3,107,652 3,107,652 Interest receivable 10L$,508 104,508 Amount available for retirement of long-term debt 3,659,352 3,659,352 Amount to be provided for repayment of debt 17,412,4011 17,412,404 TOTAL ASSETS $ 676 $ 3,659,352 $ 21,071,756 $ 24,731,784 LIABILITIES AND FUND EQUITY LIABILITIES NOTE 7): Bonds payable $ $ $ 20,000,000 $ 20,000,000 Due to County of Riverside 293,756 293,756 Note payable to Water District 778,000 778,000 TOTAL LIABILITIES 21,071,756 21,071,756 FUND BALANCES NOTES 6 AND 7): Reserved for debt service 3,659,352 3,659,352 Reserved for capital projects 676 676 TOTAL FUND BALANCES 676 3,659,352 3,660,028 TOTAL LIABILITIES AND FUND EQUITY $ 676 $ 3,659,352 $ 21,071,756 $ 24,731,784 See accountants' report and notes to financial statements. BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the year ended June 30, 1986 Totals Capital Debt Memorandum Projects Service Only) REVENUES: Tax increment revenue Note 3) $ 250,809 $ 1,003,237 $ 1,254,046 Interest income *62 213,162 TOTAL REVENUES 250,809 1,216,399 1,467,208 EXPENDITURES: Project expenditures: Flood control 17,458,000 17,458,000 Administrative expenditures: Bond issue costs Note id) 549,186 549,186 Administrative Note 4) 77,533 77,533 Total administrative expenditures 77,533 549,186 626,719 Debt Service: Interest 847,529 847,529 TOTAL EXPENDITURES 17,535,533 1,396,715 18,932,248 EXCESS OF REVENUES OVER UNDER) EXPENDITURES 17,284,724) 180,316) 17,465,040) OTHER FINANCING SOURCES USES): Advances from Water District Note 7) 778,000 778,000 Bond proceeds Note 7) 16,507,400 3,492,600 20,000,000 Operating transfers in 4,250,809 4,250,809 Operating transfers out 4,250,809) 4,250,809) TOTAL OTHER FINANCING SOURCES USES) 17,285,400 3,492,600 20,778,000 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 676 3,312,284 3,312,960 FUND BALANCES, JULY 1, 1985 347,068 347,068 FUND BALANCES, JUNE 30, 1986 $ 676 $ 3,659,352 $ 3,660,028 See accountants' report and notes to financial statements. 3- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY NO*ES TO FINANCIAL STATEMENTS June 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Description of funds and account group: The accounts of the La Quinta Redevelopment Agency the Agency) are organized on the basis of funds and account group, each of which is considered a separate accounting entity with a self-balancing set of accounts. The funds and account group used in the accompanying financial statements and described below are those specified for governmental units by the Governmental Accounting Standards Board GASB). Capital Project Funds Capital Project Funds are established to account for bond proceeds available for project improvements and interest income on invested funds. The funds are expended primarily for administrative expenses and redevelopment project costs. Included as a capital project fund is the low income housing fund which accounts for twenty percent of all taxes which are allocated by the Agency pursuant to the California Health and Safety Code. These funds shall be used by the Agency for the purpose of providing affordable housing. Under provisions of the Health and Safety Code such funds are referred to as Redevelopment Funds". Debt Service Fund Debt service funds are established to account for tax increment revenues, bond proceeds required to be set aside for future debt service and related interest income. The fund is used to repay principal and interest on indebtedness of the Agency. Under provisions of the Health and Safety Code, such funds are referred to as Special Funds". Long-Term Debt Group of Accounts The Long-Term Debt Group of Accounts is used to account for bonds payable and other long-term debt indebtedness of the Agency. b. Basis of Accounting: The modified accrual basis of accounting is used for all funds of the Agency. Revenues are recognized when they become measurable and available to finance expenditures of the current period. Accrued revenues include tax increment revenue and accrued interest on investments received within 60 days after year end. Expenditures are recorded when the related liability is incurred, except that principal and interest payments on long-term debt are recorded as expenditures when due. See accountants' report. BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 I LA QUINTA REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Continued) June 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED): C. Investments: Investments are stated at cost, or amortized cost, which approximates market value. d. Bond Discounts and Bond Issue Costs: As described at Note lb. above, interest on bonds payable is not accrued1 but rather is recorded as an expenditure when due. Consistent with this policy, discounts on the sale of bonds and bond issue costs are recorded as expenditures when paid in the year the bonds are issued. e. Budgetary Reporting: The budgets of the Agency are primarily long-term" budgets which emphasize major programs and capital outlay plans extending over a number of years. Because of the long-term nature of projects, 11annual" budget comparisons are not considered meaningful, and accordingly, no budgetary information is included in the accompanying financial statements. f. Total Columns on Combined Statements: Total columns on the financial statements are captioned Memorandum Only'1 to indicate that they are presented only to facilitate financial analysis and such data is not comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. HISTORY AND ORGANIZATION: The Agency was activated on July 5, 1983. The primary purpose of the Agency is to eliminate blight through the process of redevelopment. On November 29, 1983 the City Council approved and adopted the Redevelopment Plan for the La Quinta Redevelopment Project. This plan provides for the elimination of blight and deterioration which was found to exist in the project area. The project area encompasses approximately 17.5 square miles of the City. The Coachella Valley Water District is constructing the Agency's first project to correct flooding of the project area. See accountants' report. 5- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Continued) June 30, 1986 3. TAX INCREMENT FINANCING AND RELATED RECEIVABLES: The Agency's primary source of revenue comes from property taxes, referred to in the accompanying financial statements as tax increment revenue". Property taxes allocated to the Agency are computed in the following manner: a. The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. b. Property taxes related to the incremental increase in assessed values 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. The Agency has no power to levy and collect taxes and any legislative property tax de-emphasis might necessarily reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on bonds payable. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would necessarily increase the amount of tax revenues that would be available to pay principal and interest on bonds payable. The tax increment receivable of $30,0LI5 represents assessments attributable to the fiscal year ended June 30, 1986 that were remitted to the Agency by the County of Riverside after the year end. *. REIMBURSEMENT AGREEMENT: Pursuant to the terms of a reimbursement agreement, the Agency has reimbursed the City $20,000 for the use of City facilities during the past year. This amount is included in the administrative expenditures of the Capital Projects Fund. 5. RESTRICTED ASSETS: These assets are restricted in their use to the retirement of principal and interest on bonds and Water District advances see note 7), and are not available for use by the Agency for any other purpose. 6. FUND BALANCE RESERVES: Under generally accepted accounting principles, a municipal entity may set up reserve5" of fund equity to segregate fund balances which are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use. Fund designations" also are established to indicate tentative plans for financial resource utilization in a future period. See accountants' report. 6- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 1 LA QUINTA REDEVELOPMENT AGENCY NQTES TO FINANCIAL STATEMENTS Continued) June 30, 1986 6. FUND BALANCE RESERVES CONTINUED). At June 30, 1986, a 1'Reserve for Capital Projects" was set up in the Capital Projects Fund to indicate that the related assets were not available" as a current asset. The entire net equity of the debt service fund is reserved for future debt service, and accordingly, is not available for general expenditures. These funds are in excess of bond indenture reserve requirements. 7. LONG-TERM DEBT: All long-term debt of the Agency originated during the year ended June 30, 1986 and include the following: Bonds payable $ 20,000,000 Due to County of Riverside 293,756 Note payable to Water District 778,000 Total $ 21,071,756 Bonds Payable La Quinta Redevelopment Project Tax Allocation Bonds, Series 1985 were issued during the fiscal year ending June 30, 1986. The bonds were issued in the amount of $20,000,000 and have an average interest rate of 9.4O*% per annum. Principal payments are paid annually on September 1, beginning in 1989. Interest payments are payable semi-annually on March 1 and September 1, beginning in 1986. Bonds maturing on or before September 1, 1995 are not subject to call and redemption prior to maturity. Bonds maturing on or after September 1, 1996 are subject to redemption on any interest payment date at par plus a premium together with accrued interest to *he date of redemption. The scheduled future debt service payments on the bonds is as follows: Year Ended June 30, Principal Interest Total 1987 $ $ 1,900,000 $ 1,900,000 1988 1,900,000 1,900,000 1989 1,900,000 1,900,000 1990 2li5,OOO 1,888,363 2,133,363 1991 265,000 1,864,138 2,129,138 All subsequent years 19,490,000 27,658,77L: 47,148,77* Total *O0O,00O $ 37,111,275 $ 57,111,275 See accountants' report. 7- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY NO*ES TO FINANCIAL STATEMENTS Continued) June 30, 1986 7. LONG-TERM DEBT CONTINUED): Due to County of Riverside Based on an agreement with the County of Riverside, the Agency shall repay to the County 50 percent of tax increment received which would have been retained by the County if the Agency did not exist. These repayments are subordinate to certain debt service of the Agency and exclude amounts allocated to the low-income housing fund. The repayments will begin when certain conditions of the bond indenture agreement have been met. Unpaid balances accrue interest at 1O* per annum. The total amount payable to the County under this agreement at June 30, 1986 is $293,756, including $8,453 of accrued interest. Notes Payable The Coachella Valley Water District advanced $778,000 to the Agency for engineering costs incurred for a flood control project. This amount accrues interest at the rate of interest being earned by funds deposited with the State of California Local Agency Inventment Fund. The Agency must begin repaying principal and accrued interest by August 15, 1990. No payment schedule has been determined. See accountants' report. BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 SUPPLEMENTARY INFORMATION BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY COMBINING BALANCE SHEET CAPITAL PROJECT FUNDS June 30, 1986 Flood Low Control Income Project Housing Totals ASSETS Cash and temporary investments $ 676 $ $ 676 FUND BALANCE: Reserved for capital projects $ 676 $ $ 676 See accountants* report. 9- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS For the year ended June 30, 1986 Flood Low Control Income Project Housing Totals REVENUES: Tax increment revenue $ $ 250,809 $ 250,809 EXPENDITURES: Project expenditures: Flood control 17,458,000 17,458,000 Administrative 77,533 77,533 TOTAL EXPENDITURES 17,535,533) 17,535,533 EXCESS OF REVENUES OVER UNDER) EXPENDITURES 17,535,533) 250,809 17,284,724) OTHER FINANCING SOURCES USES).* Advances from Water District 778,000 778,000 Bond proceeds 12,507,400 4,000,000 16,507,400 Operating transfers in 4,250,809 4,250,809 Operating transfers out 4,250,809) 4,250,809) TOTAL OTHER FINANCING SOURCES USES) 17,536,209 250,809) 17,285,400 EXCESS OF REVENUES AND OTHER SOURCES OVER UNDER) EXPENDITURES AND OTHER USES 676 676 FUND BALANCES, JULY 1, 1985 FUND BALANCES, JUNE 30, 1986 $ 676 $ $ 676 See accountants' report. 10- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02 LA QUINTA REDEVELOPMENT AGENCY September 11, 1986 ACCOUNTANTSt REPORT ON COMPLIANCE WITH AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES In connection with our examination of the financial statements of the La Quinta Redeveloprnent Agency for the year ended June 30, 1986, we have performed, to the extent applicable, the tasks contained in Sections I through V of the Guidelines for Compliance Audits of California Redevelopment Agencies" published by the State Controller. Based on the above procedures, we are of the opinion that the Agency complied in all material respects with criteria established in the State Controller' S guidelines referred to above. A * 11- BIB] 10-22-1998-U01 08:57:44AM-U01 ADMIN-U01 RDA-U02 02-U02 18-U02 1987-U02