1994 RRA Financial Report1
1 Rosemead Redevelopment Agency
Rosemead, California
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1 ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 309 1994
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ROSEMEAD REDEVELOPMENT AGENCY
COMPONENT UNIT FINANCIAL REPORT
June 30, 1994
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CONTENTS
INDEPENDENT AUDITOR'S REPORT
1
COMPONENT UNIT FINANCIAL STATEMENTS
Combined balance sheet - all fund types and account groups
2 and 3
Combined statement of revenues, expenditures and changes in
fund balances - all governmental fund types
4 and 5
Combined statement of revenue, expenditures and changes in fund balances -
budget and actual - all governmental fund types
6 and 7.
Notes to financial statements
8- 16
SUPPLEMENTARY INFORMATION
Special revenue funds:
Combining balance sheet
17
Combining statement of revenue, expenditures and changes in
fund balances
18
Tax increment shift to educational augmentation revenue fund
19
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH AUDIT
GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES
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ONVA
McGLADREY & PULLEN
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Governing Board
Rosemead Redevelopment Agency
Rosemead, California
We have audited the accompanying component unit financial statements of the Redevelopment Agency
of the City of Rosemead, California (the "Agency") as of and for the year ended June 30, 1994, as
listed in the table of contents. These component unit financial statements are the responsibility of the
Agency's management. Our responsibility is to express an opinion on these component unit financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the component
unit financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the component unit financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the component unit financial statements referred to above present fairly, in all material
respects, the financial position of the Redevelopment Agency of the City of Rosemead, California as of
June 30, 1994, and the results of its operations and cash flows of its Enterprise Fund for the year then
ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the component unit financial statements
taken as a whole. The combining financial statements and schedules listed in the table of contents as
supplementary information, are presented for purposes of additional analysis and are not a required
part of the component unit financial statements of the Redevelopment Agency of the City of Rosemead,
California. Such information has been subjected to the auditing procedures applied in the audit of the
component unit financial statements and, in our opinion, is fairly presented in all material respects in
relation to the component unit financial statements taken as a whole.
San Bernardino, California
October 27, 1994
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COMPONENT UNIT FINANCIAL STATEMENTS
ROSEMEAD REDEVELOPMENT AGENCY
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1994
Governmental Fund
Special
Debt
Capital
Assets
Revenue
Service
Projects
Cash and investments
$ 3,113,756 $
-
$ 4,922,418
Cash and investments with fiscal agent
-
2,322,901
-
Other investments
2,982,925
-
17,008,262
Receivables
25,512
100,394
771,084
Due from the City of Rosemead
-
-
-
Due from other funds
423,574
Property and equipment
-
Amount available in debt service fund
Amount to be provided for retirement of
general long-term debt
Total assets $ 6,545,767 $ 2,423,295 $ 22,701,764
Liabilities and Eaui
Liabilities:
Accounts payable $ 589,914 $ - $ 26,680
Arbitrage rebate payable - - 153,976
Due to City of Rosemead - - 148,780
Due to other funds - - 423,574
Tax allocation notes and bonds - - -
Due to other governments - - -
Total liabilities 589,914 - 753,010
Agency Equity:
Investment in general fixed assets
Fund balances:
Reserved for debt service
Reserved for low-moderate income housing
Unreserved, designated for redevelopment
projects
Total equity
Total liabilities and equity
See Notes to Financial Statements.
- 2,423,295
6,353,876 -
(398,023) - 21,948,754
5,955,853 2,423,295 21,948,754
$ 6,545,767 $ 2,423,295 $ 22,701,764
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Totals
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Account Group
(Memorandum Only)
General
General
Fixed
Long-Term
'
Assets
Debt
1994
1993
$
$ -
$ 8,036,174
$ 3,247,403
-
2,322,901
3,889,464
1
-
19,991,187
9,334,961
-
896,990
550,039
423,574
970
692,386
4,542,729
-
4,542,729
4,199,509
1
-
2,423,295
2,423,295
3,922,838
-
34,462,035
34,462,035
14,682,690
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$ 4,542,729
$ 36,885,330
$ 73,098,885
$ 40,520,260
1
$ $ - $ 616,594
$ 40,432
_ _ 153,976
213,721
1
148,780
99,764
- 423,574
692,386
_ 36,710,000 36,710,000
18,430,240
1
175,330 175,330
175,288
36,885,330 38,228,254
19,651,831
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4,542,729 - 4,542,729
4,199,509
1 2,423,295 3,922,838
6,353,876 7,633,478
1 21,550,731 5,112 604
4,542,729 - 34,870,631 20,868,429
i $ 4,542,729 $ 36,885,330 $ 73,098,885 $ 40,520,260
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ROSEMEAD REDEVELOPMENT AGENCY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year Ended June 30, 1994
Special Debt Capital
Revenue Service Projects
Revenue:
Property tax increment
Use of money and property
Other
Expenditures:
Current:
Improvements to project area
Professional fees
City administrative services
Intergovernmental
Capital outlay
Debt service:
Principal
Interest
Certificate refunding
Issuance costs
Arbitrage rebate expense (credit)
Revenues over (under) expenditures
Other Financing Sources (Uses):
Proceeds from sale of bonds, net of discounts of
$701,815
Payments to refunding escrow agent
Operating transfers:
From other funds
(To) other funds
Revenue and other financing sources over
(under) expenditures and other financing
uses
Fund Balance, beginning
Fund Balance, ending
See Notes to Financial Statements.
$ - $ - $ 3,185,746
257,989 168,395 966,619
71,106 - 65,876
329,095 168,395 4,218,241
1,837,331 - 821,431
19,389 - 57,123
150,000 - 981,317
- - 175,295
- 20,966
- 2,055,000 -
- 1,137,474 -
- 2,651,000 -
- 183,403 -
- - 139,/431
2,006,720 6,026,877 1,996,387
(1,677,625) (5,858,482) 2,221,854
- 18,374,765 17,633,419
- (17,034,949) -
3,019,123
- (3,019,123)
(1,677,625) (1,499,543) 16,836,150
7,633,478 3,922,838 5,112,604
$ 5,955,853 $ 2,423,295 $ 21,948,754
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Totals
(Memorandum Only)
1994 1993
$ 3,185,746 $ 3,379,446
1,393,003 843,974
136,982 228,779
4,715,731 4,452,199
2,658,762
1,506,595
76,512
66,115
1,131,317
1,110,245
175,295
580,791
20,966
5,170
2,055,000
1,900,000
1,137,474
669,813
2,651,000
-
183,403
-
(59,745)
213,721
10,029,984
6,052,450
(5,314,253)
(1,600,251)
36,008,184
(17,034,949) -
3,019,123 2,247,787
(3,019,123) (2,247,787)
13,658,982 (1,600,251)
16,668,920 18,269,171
$ 30,327,902 $ 16,668,920
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ROSEMEAD REDEVELOPMENT AGENCY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND '
BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES
Year Ended June 30, 1994 '
Special Revenue Funds
Revenue:
Property tax increment
Use of money and property
Other
Expenditures:
Current
Improvement to project area
Professional fees
City administrative services
Intergovernmental
Capital outlay
Debt service:
Principal
Interest
Certificate refunding
Issuance costs
Arbitrage rebate expense
Revenues over (under) expenditures
Other Financing Sources (Uses):
Proceeds from sale of bonds, net of discounts of
$701,815
Advance refunding
Operating transfers from other funds
Over
(Under)
Budget Actual Budget
- 257,989 257,989
500 71,106 70,606
500 329,095 328,595
933,000 1,837,331 904,331
70,000 19,389 (50,611)
150,000 150,000
3,320,000 (3,320,000)
4,473,000 2,006,720 (2,466,280)
(4,472,500) (1,677,625) 2,794,875
Revenue and other financing sources over (under)
expenditures and other financing uses $ (4,472,500) (1,677,625)$ 2,794,875
Fund Balance, beginning 7,633,478
Fund Balance, ending $ 5,955,853
See Notes to Financial Statements.
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Debt Service Nand Capital Projects Funds
Over Over
(Under) (Under)
Budget Actual Budget Budget Actual Budget
$ - $ - $ - $ 3,200,000 $ 3,185,746 $ (14,254)
60,000 168,395 108,395 181,500 966,619 785,119
- - - 35,000 65,876 30,876
60,000 168,395 108,395 3,416,500 4,218,241 801,741
1,296,000 821,431
(474,569)
29,000 57,123
28,123
1,036,570 981,317
(55,253)
- 175,295
175,295
20,966
20,966
2,055,000 2,055,000
- - - -
496,781 1,137,474
640,693 - - -
- 2,651,000
2,651,000 - - -
183,403
183,403 - - -
- -
- - (59,745) (59,745)
2,551,781 6,026,877
3,475,096 2,361,570 1,996,387 (365,183)
(2,491,781) (5,858,482) (3,366,701) 1,054,930 2,221,854 1,166,924
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_ 18,374,765
(17,034,949)
2,551,781 3,019,123
18,374,765
(17,034,949)
467,342 (2,551,781)
17,633,419 17,633,419
(3,019,123) (467,342)
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$ 60,000 (1,499,543) $
_(1,559,543) $ (1,496,851)
16,836,150 $ 18,333,001
3,922,838
5,112,604
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$ 2,423,295
$ 21,948,754
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ROSEMEAD REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups,
and Significant Accounting and Reporting Policies
The Redevelopment Agency (the "Agency") was established in Rosemead pursuant to State of
California Health and Safety Code Section 33000, entitled Community Redevelopment Law. Its
purpose is to finance street, park and utility improvements. It also acquires and constructs major
capital facilities all within the Rosemead Project Area No. 1. The reporting entity also includes the
financial information of the Community Facilities District No. 1990-1.
The financial statements of the Agency have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant of the Agency's accounting
principles are described below:
Reporting entity: As required by generally accepted accounting principles, these financial statements
present the government and its component unit, an entity for which the government is considered to be
financially accountable. A blended component unit, although a legally separate entity, is, in substance,
part of the government's operations and so data from this unit is combined with data of the primary
government.
The blended component unit included in the Agency's reporting entity is:
The Rosemead Housing Development Corporation ("the Corporation"): The Corporation is a
California nonprofit public benefit corporation organized under Section 501(c)(3) of the Internal
Revenue Code. The Corporation accounts for the construction and financing of low and moderate
income housing.
The Agency is a component unit of the City of Rosemead, California. The financial activities of the
Agency have been included in the general purpose financial statements of the City as a blended
component unit.
Fund Accounting: The accounts of the Agency are organized on the basis of funds or account groups,
each of which is considered to be a separate accounting entity. The operations of each fund are
accounted for by providing a separate set of self-balancing accounts which comprise its assets,
liabilities, equity, revenue and expenditures. The various funds and account groups are presented as
follows:
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ROSEMEAD REDEVELOPMENT AGENCY
I NOTES TO FINANCIAL STATEMENTS
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' Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups,
and Significant Accounting and Reporting Policies (Continued)
1 Governmental Fund Types:
The Special Revenue Funds account for the proceeds of specific revenue resources (other than special
assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for
specified purposes. The Special Revenue Funds and their purpose are as follows:
The Low-Moderate Income Rousing Set-aside Fund accounts for the 20% of gross property tax
increment revenue received by the Agency to fund future projects involving the replacing or
rehabilitation of low and moderate income housing within City limits.
i The Rosemead Rousing Development Corporation accounts for the construction and financing of
low and moderate income housing.
S The Debt Service Fund accounts for the accumulation of resources for the payment of general
long-term debt principal, interest and related costs.
' The Capital Projects Fund accounts for the financial resources of the Agency to be used for the
acquisition or construction of major capital facilities within the Agency.
f Account Groups:
' The General Fixed Assets Account Group accounts for all Agency general fixed assets except for
public domain fixed assets (e.g., streets, bridges, sidewalks, curbs, gutters and storm drainage
systems).
' The General Long-Term Debt Account Group accounts for the outstanding principal balances of
all Agency long-term debt expected to be financed from Governmental Fund Types.
' Significant accounting and reporting policies:
Basis of accounting: Governmental Fund Types are accounted for using the modified accrual basis
of accounting. Revenue is recognized in the accounting period in which it becomes both measurable
and available. Available means collectible within the current period or soon enough thereafter to
pay current liabilities.
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ROSEMEAD REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
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Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups,
and Significant Accounting and Reporting Policies (Continued)
In determining when to recognize intergovernmental revenues, the legal and contractual
requirements of the individual programs are used as guidance. There are, however, essentially two
bases for this revenue recognition. In one, monies must be expended on the specific purpose or
project before any amounts will be paid to the Agency; therefore, revenues are recognized based
upon the expenditures recorded. In the other, monies are virtually unrestricted as to purpose of
expenditure and nearly irrevocable, i.e., revocable only for failure to comply with prescribed
compliance requirements, e.g., equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the criterion of availability.
Expenditures are generally recognized in the accounting period in which the fund liability is
incurred, if measurable, except expenditures for debt service on long-term obligations, which are
recognized when paid.
Cash cash investments and other investments: The Agency pools cash and investment resources of
some of its funds in order to facilitate the management of cash. Cash applicable to a particular fund
is readily identifiable. The balance in the pooled cash accounts is available to meet current
operating requirements.
Cash investments and other investments are accounted for at cost or amortized cost. No loss is
recognized when market values decline below cost, since it is the policy of the Agency to hold such
investments until they mature. Investment earnings are allocated based on the source of funds.
Receivables: Property taxes receivable represent the portion of the March I, 1993 levy, which was
collected after June 30, 1994 and before August 31, 1994. Property taxes attach as an enforceable
lien on property as of March I and are due and payable in two equal installments on the following
November 1 and February 1. Unpaid taxes become delinquent on December 10 and April 10. An
allowance based on historical collection experience is provided for uncollectible taxes.
All other receivables are reported at their gross value and, where appropriate, are reduced by the
estimated portion that is expected to be uncollectible.
Property and equipment: All property and equipment of the Agency are accounted for in the
general fixed assets account group. Public domain (infrastructure) general fixed assets consisting of
certain improvements other than buildings, such as roads, sidewalks and bridges, are not
capitalized. Property and equipment acquired or constructed for general governmental operations
are recorded as expenditures in the fund making the expenditure and capitalized in the General
Fixed Assets Account Group.
All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by
gift or bequest are recorded at their fair market value at the date of transfer. No depreciation is
recorded on general fixed assets.
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ROSFMEAD REDEVELOPMENT AGENCY
I NOTES TO FINANCIAL STATEMENTS
' Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups,
and Significant Accounting and Reporting Policies (Continued)
' Fund balances: The reserved portion of the fund balances represents that amount which has been
legally identified for the specific purpose or it represents that amount which is not available to
liquidate current liabilities. The unreserved portion represents the amount available for future
' appropriations. Designated fund balances represent tentative plans for future use of financial
resources.
' "Memorandum Only" columns total: Included on the combined financial statements are total
columns captioned "Memorandum Only" to indicate that they are presented only for informational
purposes. Adjustments to eliminate interfund transactions have not been recorded in arriving at
' such amounts and the memorandum totals are not intended to fairly present the financial position or
'
a summarized comparison with comparable 1994 amounts and are not intended to present all
information necessary for a fair presentation of financial position and results of operations in
accordance with generally accepted accounting principles.
Budget matters: Budgets presented in this report for comparison to actual amounts are presented in
accordance with generally accepted accounting principles. The modified accrual basis of accounting
is employed in the preparation of the budget. Reported budget amounts represent the original
adopted budget as amended.
i Unexpended budgeted amounts lapse at the end of the budget year.
1 Note 2. Cash and Investments
The components of cash and investments at June 30, 1994 are as follows:
' Cash in bank $ 4,525,277
Time certificates of deposit 3,510,897
$ 8,036,174
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results of Additionally, the operations 1993 of the totals primary presented in the " government and Memorandum reporting Only" entity taken columns as a are whole. included to provide
ROSEMEAD REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
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Note 2. Cash and Investments (Continued)
At year end, the carrying amount of the Agency's deposits was $8,036,174 (cash and investments,
above) and the bank balance was $8,050,592. A summary of collateral ization of the bank balances is
presented below:
Insured or collateralized with securities held by the Agency or its agent
in the Agency's name
Uncollateralized, this category includes any bank balance that is
collateralized with securities held by the pledging financial institution
or by its trust department or agent but not in the Agency's name,
although balances so collateralized meet the requirements of state law
State statutes authorize the Agency to invest any available funds in securities issued or guaranteed by
the United States Treasury or agencies of the United States, bank certificates of deposit, bankers
acceptances, negotiable certificates of deposit, the State Treasurer's Investment Pool, repurchase
agreements, commercial paper and bonds, registered warrants or treasury notes of the State of
California and its local agencies.
Cash and investments with fiscal agent as of June 30, 1994 consisted of $1,101 of money market funds
(all of which was insured or collateralized with securities held by the City or its agent in the City's
name) and $2,321,800 invested in a Guaranteed Insurance Contract which pays interest semiannually at
a 5.80% interest rate, maturing October 1, 2023.
The Agency's other investments are categorized in the following schedule to give an indication of the
level of risk assumed by the entity at year end.
Category
Carrying
Market
Investment
1 2 3
Amount
Value
U.S. Government and government
agency securities
$ - $ - $ 7,361,201
$ 7,361,201
$ 5,628,826
State and municipal bonds
- - 19,535
19,535
18,900
Corporate bonds
- - 8,726,101
8,726,101
7,224,660
$ 407,444 '
7,643,148
$ 8,050,592 '
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$ - $ $ 16,106,837 16,106,837 12,872,386
Investment in State Treasurer's
Investment Pool
Total other investments
3,884,350 3,884,350
$ 19,991,187 $ 16,756,736
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ROSEN EAD REDEVELOPMENT AGENCY
1 NOTES TO FINANCIAL STATEMENTS
I Note 2. Cash and Investments (Continued)
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The three preceding risk description categories are defined as follows:
Category Description
1 Investments that are insured, registered or for which the securities are held by the
Agency or its agent in the Agency's name.
2 Uninsured and unregistered investments for which the securities are held by the
counterparty's trust department (if a bank) or agent in the Agency's name.
3 Uninsured and unregistered investments for which the securities are held by the
counterparty's trust department (if a bank) or agent but not in the Agency's name.
Note 3. Receivables
Receivables as of June 30, 1994 consisted of the following:
Special
Revenue Debt Capital
Fund Service Projects Total
Property tax increment $ - $ - $ 395,310 $ 395,310
Accrued interest 25,512 100,394 375,774 501,680
$ 25,512 $ 100,394 $ 771,084 $ 896,990
I Note 4. Interfund Receivables and Payables
I Interfund receivables and payables as of June 30, 1994 are as follows:
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Interfund
Funds Receivables Payables
' Special Revenue Fund, Low-moderate income housing
set-aside fund
Capital projects fund
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$ 423,574 $
- 423,574
$ 423,574 $ 423,574
ROSEMEAD REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
Note 5. Reimbursement Agreements and Related Party Transactions
The Agency has entered into various reimbursement agreements with the City of Rosemead which
require the City to install certain public improvements for the benefit of the Rosemead Redevelopment
Agency Project Area No. 1. In addition, the City is to provide administrative services, facilities and
other operating services which totaled $1,097,300 for the fiscal year ended June 30, 1994.
The amount due to the City totaling $148,780 as of June 30, 1994 is noninterest bearing.
Note 6. Property and Equipment
During the year ended June 30, 1994, the changes in the general fixed asset were as follows:
Balance Balance
June 30, June 30,
1993 Acquisitions 1994
Land
Buildings and improvements
Furniture and fixtures
$ 2,350,308 $ - $ 2,350,308
1,483,107 306,870 1,789,977
366,094 36,350 402,444
$ 4,199,509 $ 343,220 $ 4,542,729
Note 7. Long-term Debt
The following is a summary of general long-term debt transactions for the year ended June 30, 1994:
Tax
Tax
California
Tax
Tax
Allocation
Allocation
Budget
Allocation
Allocation
Bonds
Bonds
Trailer
Bonds
Bonds
Series 1991
Series 1987
Bill SB1135
Series A 1993 Series B 1993
Total
Balance, June 30, 1993
$ 11,725,240
$ 6,705,000
$ 175,288
$ -
$ - $
18,605,528
(Payments) of principle
-
(2,055,000)
(175,288)
-
-
(2,230,288)
Additions
-
-
175,330
34,275,000
2,435,000
36,885,330
Advance refunding
(11,725,240)
(4,650,000)
-
(16 375 240)
Balance, June 30 1994
$ -
$ -
$ 175,330
$ 34,275,000
$ 2,435,000 $
36,885,330
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ROSEMEAD REDEVELOPMENT AGENCY
I NOTES TO FINANCIAL STATEMENTS
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' Note 7. Long-tent[ Debt (Continued)
In November 1993, the Rosemead Redevelopment Agency issued tax allocation bonds amounting to
' $34,275,000 (Series 1993A) and taxable tax allocation refunding bonds amounting to $2,435,000
(Series 19938) to finance a portion of the cost of the redevelopment area known as Project Area No. 1.
The bonds bear interest ranging from 4.6% to 5.6% and 5.2% to 5.9% for Series 1993 A and B,
1 respectively. From these proceeds, $14,652,398 of Series A and $2,382,55 of Series B proceeds,
along with the existing reserve amount of $2,651,000 on deposit with the fiscal agent, were used to
purchase U.S. Government securities. Those securities were deposited in an irrevocable trust with an
' escrow agent to provide for all future debt service payments on the 1987 and 1991 Tax Allocation
Bonds. As a result, the 1987 and 1991 Tax Allocation Bonds are considered to be defeased and the
liability for those bonds has been removed from the general long-term debt account group.
The Agency advance refunding of the 1987 and 1991 Tax Allocation Notes increased its total service
payments over the next forty years by almost $19,200,000; however, the Agency has experienced an
' economic gain (difference between the present values of the debt service payments on the old and new
debt) of approximately $85,000.
' The annual requirements, principal and interest, to amortize the outstanding debt as of June 30, 1994
are as follows:
' Series 1993A Bonds Series 1993B Bonds
During the Year Ending June 30, Principal Interest Principal Interest Total
' 1995 $ - $ 1,892,193 $ 260,000 $ 126,960 $ 2,279,153
1996 1,892,193 265,000 113,310 2,270,503
1997 1,892,193 280,000 99,140 2,271,333
1998 - 1,892,193 295,000 84,190 2,271,383
' 1999 - 1,892,193 310,000 67,995 2,270,188
Years thereafter 34,275,000 44,577,067 1,025,000 157,905 80,034,972
' $ 34,275,000 $ 54,038,032 $ 2,435,000 S 649,500 S 91,397,532
The Agency received proceeds from the Series A and B bonds of $33,589,000 and $2,418,685,
respectively. Of these amounts, $14,652,398 of Series A and $2,382,551 of Series B proceeds, along
' with the existing reserve amount of $2,651,000, were used to retire the $11,725,240 Tax Allocation
Bonds of 1991 and the $4,650,000 (remaining balance as of November 2, 1993) tax allocation bonds of
1987.
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ROSEMEAD REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
Note 7. Long-term Debt (Continued)
In addition, the $6,813,850 deposited in the Low-Moderate Income Housing Set-Aside Fund in
October 1991 was reallocated as follows:
Satisfied the housing set-aside requirements for the fiscal years ended June 30, 1992 and 1993
totaling $812,342 and $847,147, respectively,
Repayment of the ERAF loan from the housing fund in the amount of $423,574, which is payable
on June 30, 2003 (assuming a present value factor equal to the Agency's Series 1993 A Bonds),
The fiscal year ending June 30, 1994, 1995 and 1996 obligation is deferred until the fiscal year
ending June 30, 2023, as provided by the Agency's adoption of a housing deficit repayment plan,
and
Satisfies the housing set-aside requirements for the fiscal years ending June 30, 1997 through
June 30, 2022 at a rate of $451,187 per year (assuming a present value factor equal to the Agency's
Series 1993A bonds).
Tax Increment Shift to Fund Education in California: In June 1993, the State of California adopted
Budget Trailer Bill SB1135 requiring redevelopment agencies to help offset the cost of education in
California. The Trailer Bill affected cities by 5.675% of net property tax increment of the 1990-1991
fiscal year, which equates to approximately $175,000 for the Agency. This amount was paid by May
10, 1994 from the Low-Moderate Income Housing Set-Aside Fund. An additional $175,330 is due in
May 1995.
Note 8. Commitments and Contingent Liabilities
Under state law, the Agency is required to set aside a portion of its property tax increment revenues
for low and moderate income housing. The Agency has made findings that, for the year ended
June 30, 1991, it was allowed to defer funding of the set aside. As of June 30, 1994, the accumulated
set-aside amount not yet funded was approximately $4,737,431. The law requires the Agency to
devise a plan to fund the accumulating amount and to begin repayment by 1996.
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SUPPLEMENTARY INFORMATION
ROSEMEAD REDEVELOPMENT
AGENCY
'
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
'
June 30
1994
,
Low-Moderate
Income
Rosemead
Housing
Housing
Set-Aside
Development
Totals
Fund
Corporation
1994
1993
'
Assets
Cash and investments
$
2,921,865 $
191,891 $
3,113,756 $
3,247,403
Other investments
2,982,925
-
2,982,925
3,618,590
Receivables
25,512
25,512
76,983
Due from other funds
423,574
423,574
692,386
t
Total assets
$
6,353,876 $
191,891 $
6,545,767 $
7,635,362
Liabilities and Fund Balance
'
Liabilities, accounts payable
$
- $
589,914 $
589,914 $
1,884
Agency Equity, fund balances,
reserved for low-moderate
income housing
6,353,876
6,353,876
7,633,478
Unreserved
(398,023)
(398,023)
'
Total liabilities and
equity
$
6,353,876 $
191,891 $
6,545,767 $
7,635,362
'
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ROSEMEAD REDEVELOPMENT AGENCY
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND
BALANCES - SPECIAL REVENUE FUNDS
Year Ended June 30, 1994
Low-Moderate
Income
Rosemead
Housing
Housing
Set-Aside
Development Totals
Fund
Corporation 1994 1993
Revenue
Use of money and property
Other
Expenditures
Current:
Improvements to project area
Professional fees
City administrative services
Revenue over (under)
expenditures
$ 257,989 $ - $ 257,989 $ 370,567
65,561 5,545 71,106 108,677
323,550 5,545 329,095 479,244
$ - $ 1,837,331 $ 1,837,331 $ 67,777
281 19,108 19,389 29,399
- 150,000 150,000 150,000
281 2,006,439 2,006,720 247,176
323,269 (2,000,894) (1,677,625) 232,068
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Other Financing Sources (Uses),
operating transfers (to) from other
funds (1,500,000) 1,500,000
Revenue and other
financing sources over
(under) expenditures
and other
financing uses
Fund Balance (deficit)
Beginning
Ending
1
(1,176,731) (500,894) (1,677,625) 232,068 1
7,530,607 102,871 7,633,478 7,401,410
$ 6,353,876 $ (398,023) $ 5,955,853 $ 7,633,478
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ROSEMEAD REDEVELOPMENT AGENCY
SUPPLEMENTAL SCHEDULE
TAX INCREMENT SHIFT TO EDUCATIONAL AUGMENTATION REVENUE FUND
Year Ended June 30, 1994
Total tax increment to be shifted to the Educational
Revenue Augmentation Fund (ERAF) per State
Department of
Finance (DOF) letter dated October 1, 1993
Funding Sources
Redevelopment Agency:
Agency tax increment
Other Agency funds
Total Agency funds
Agency borrowing:
From current 20% Low-Moderate Income Housing
Funds
From legislative body
Total borrowed funds
Total tax increment shift to ERAF
19
$ 175,330
$ 175,330
175,330
$ 175,330
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~ McGLADREY&PULLEN
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH AUDIT
' GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES
'
To the Governing Board
'
Rosemead Redevelopment Agency
City of Rosemead, California
Rosemead, California
We have audited the component unit financial statements of the the Redevelopment Agency of the City
of Rosemead, California (the "Agency") as of and for the year ended June 30, 1994 and have issued
our report thereon, dated October 27, 1994. These component unit financial statements are the
' responsibility of the Agency's management. Our responsibility is to express an opinion on these
component unit financial statements based on our audit.
' In connection with our audit, we performed the procedures contained in the publication entitled
Guidelines for,Compliance Audits of California Redevelopment Agencies, as promulgated by the
Controller of the State of California in connection with a review of the Agency's compliance with
laws, regulations and administrative requirements governing activities of the Agency, as required by
Section 33080.1(a) of the Health and Safety Code of the State of California. The procedures we
performed would not necessarily disclose instances of noncompliance because they were based on
selective tests of accounting records and related data.
During the performance of the aforementioned procedures, nothing came to our attention that would
' lead us to believe that the Agency did not comply with applicable laws, regulations and administrative
requirements governing its activities.
' This report is to be used solely for filing with appropriate regulatory agencies and is not intended for
any other purpose. This restriction is not intended to limit the distribution of this report which, upon
acceptance by the Agency, is a matter of public record.
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' San Bernardino, California
October 27, 1994
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