1993 RRA Financial ReportI
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Rosemead Redevebp ent Agency
Rosemead, California
ANNUAL MNANC MLA, REPORT
MSC AL YEAR ENDED JUNE 309 1993
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ROSEMEAD REDEVELOPMENT AGENCY
COMPONENT UNIT FINANCIAL REPORT
JUNE 30, 1993
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CONTENTS
INDEPENDENT AUDITORS' REPORT 1
COMPONENT UNIT FINANCIAL STATEMENTS
Combined balance sheet, all fund types and account groups 2
Combined statement of revenue, expenditures and changes
in fund balances, all governmental fund types 3
Combined statement of revenue, expenditures and changes
in fund balances - budget and actual - special
revenue and debt service funds 4
Notes to financial statements 5 - 15
SUPPLEMENTARY INFORMATION
Special revenue funds:
Combining balance sheet 16
Combining statement of revenue, expenditures and changes in
fund balances 17
Tax increment shift to educational augmentation revenue fund 18
McGLADREY & PULLEN
Certified Public Accountants and Consultants
'
REPORT
INDEPENDENT AUDITORS
' To the Governing Board
Rosemead Redevelopment Agency
Rosemead, California
We have audited the accompanying component unit financial statements of the Rosemead
Redevelopment Agency, Rosemead, California, as of and for the year ended June 30, 1993,
' 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 financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the 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 Rosemead Redevelopment Agency,
Rosemead, California, as of June 30, 1993, and the results of its operations 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 schedule, 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
Rosemead Redevelopment Agency, 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.
I
Pasadena, California
September 21, 1993, except for Note 8, as to which the date is November 2, 1993.
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COMPONENT UNIT FINANCIAL STATEMENTS
ROSEMEAD REDEVELOPMENT AGENCY
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1993
ASSETS
Cash and investments
Cash and investments with fiscal agent
Other investments
Receivables
Due from City of Rosemead
Due from other funds
Property and equipment
Amount available in debt service fund
Amount to be provided for retirement of
general long-term debt
Total assets
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable
Arbitrage rebate payable
Due to City of Rosemead
Due to other funds
Tax allocation notes and bonds
California Budget Trailer Bill SB1135
Total liabilities
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.
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Governmental Fund Tvoes
Special
Revenue
Debt
Fund
Service
$ 3,247,403
$ -
-
3,889,464
3,618,590
-
76,983
33,374
692,386
$ 7.635.362 $ 3,922,838
$ 1,884 $
$ 1.884 $
- 3,922,838
7,633,478 -
$ 7.633.478 $ 3,922,838
,
7,635,362 $ 3.922.838
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Governmental
Fund Types
Account Groups
Totals
(Memorandum Only)
General
General
Capital
Fixed
Long-term
Projects
Assets
Debt
1993
1992
$
$
$ -
$ 3,247,403 $
3,522,238
3,889,464
4,006,652
5,716,371
-
9,334,961
11,869,974
439,682
550,039
381,536
970
-
970
6,762
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-
4,199,509
-
692,386
4,199,509
-
4,161,928
-
3,922,838
3,922,838
4,112,679
14,682,690
14,682,690
16,217,561
,279,330
6,157;023 $ 4,199,509 $ 18,605,528 $ 40,520,260 $44
38,548 $
$ -
$ 40,432
$ 584,432
213,721
-
213,721
-
'
99,764
99,764
933,559
692,386
-
692,386
-
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-
18,430,240
18,430,240
20,330,240
175.288
175.288
$ 1,044.419 $ -
$ 18,605 528
$ 19,651,831
$ 21,848,231
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$ - $ 4,199,509
$ -
$ 4,199,509
$ 4,161,928
- -
3,922,838
4,112,679
7,633,478
7,401,410
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5,112,604
5,112,604
6.755.082
$ 5.112.604 $ 4,199.509
$ -
$ 20,868,429
$ 22.431.099
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$ 6.157.023 $ 4.199.509
$ 18.605.528
$ 40.520.260
$ 44.279.330
ROSEMEAD REDEVELOPMENT AGENCY
COMBINED STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
Year Ended June 30, 1993
REVENUE
Property tax increment
Use of money and property
Other
EXPENDITURES
Current:
Improvements to project area
Professional fees
City administrative services
Intergovernmental
Issuance costs
Arbitrage rebate expense
Capital outlay
Debt service:
Principal
Interest
Revenue over (under) expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from sale of bonds, net of
discounts of $156,884
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.
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Special
Revenue Debt
Funds Service
370,567 130,502
108,677 1,683
$ 479,244 $ 132,185
$ 67,777 $
29,399
150,000
1,900,000
669,813
$ 247,176 $ 2,569,813
$ 232,068 $ (2,437,628)
2,247,787 ,
$ 232,068 $ (189,841)
7,401,410 4,112,679 '
7,633,478 $ 3,922,838 '
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Totals
Capital (Memorandum Only)
Projects 1993 1992
$ 3,379,446
342,905
$ 3,379,446
843,974
$ 3,746,398
1,125,012
118,419
228,779
228,074
$ 1840,770
$ 4,452,199
$ 5,099,484
$ 1,438,818
$ 1,506,595
$ 6,798,037
36,716
66,115
125,282
960,245
580,791
4110,245
580,791
980,747
-
-
65,382
213,721
213,721
-
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5,170
5,170
54,127
-
1,900,000
1,760,000
'
669,813
828,617
$ 3,235,461
$ 6,052,450
$ 10,612,192
$ 605,309
$ (1,600,251)
$ (5,512,708)
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-
11,568,356
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2,247,787
11,039,656
(2,247,787) (2247,787)
(11,039,656)
$ (1,642,478) $ (1,600,251)
$ 6,055,648
6,755,082 18,269,171
12,213,523
1 5,112,604 $ 16,668,920 $ 18.269.171
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ROSEMEAD REDEVELOPMENT AGENCY
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
SPECIAL REVENUE AND DEBT SERVICE FUNDS
Year Ended June 30, 1993
REVENUE
Property tax increment
Use of money and property
Other
EXPENDITURES
Current:
Improvements to project area
Professional fees
City administrative services
Intergovernmental
Issuance costs
Arbitrage rebate expense
Capital outlay
Debt service:
Principal
Interest
Revenue over (under)
expenditures
OTHER FINANCING SOURCES,
operating transfers from other funds
Revenue and other financing
sources over (under)
expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
See Notes to Financial Statements.
Debt Service Fund
Over
(Under)
Budget Actual Budget
156,000 130,502 (25,498)
1.683 1,683
$ 156.000 $ 132.185 $ (23.815)
1,900,000 1,900,000
669,813 669,813
$ 2,569,813 $ 2,569,813 $
$ (2,413,813) $ (2,437,628) $ (23,815)
2.569.813 2,247.787 322.026)
156 000 $ (189,841) (345.841)
4,112.679
3 922 838
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Special Revenue Funds
Over
(Under)
Budget Actual Budget
370,567 370,567
108,677 108,677
$ $ 479,244 $ 479,244
$ 70,000 $ 67,777 $ (2,223)
- 29,399 29,399
181,300 150,000 (31,300)
$ 251,300 $ 247,176 $ (4,124)
$ (251,300) $ 232,068 $ 483,368
251300) $ 232,068 $ 483,368
7,401,410
$ 7,633,478
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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
Reporting entity
The criteria of oversight responsibility, special financing relationships and scope of public
service were used in determining the agencies or entities which comprise the Rosemead
Redevelopment Agency (the Agency) for financial reporting purposes. Oversight
responsibility is determined by the extent of financial interdependency, control over the
selection of the governing authority and management, ability to significantly influence
operations and accountability for fiscal matters. Based on these criteria, the Rosemead
Housing Development Corporation is a component unit of the Rosemead Redevelopment
Agency and the Agency is included in the combined financial statements of the City of
Rosemead. The Agency has the same fiscal year as the City. These financial statements
contain only information for the Agency and its component unit.
After due consideration of each criteria, especially the substance of the Agency's
relationship with these organizations/entities, and using professional judgement,
management has decided to exclude certain organizations and activities from the Agency's
combined financial statements because significant oversight responsibility does not exist.
The organizations excluded from the Agency's reporting entity are the Fire Protection
District, the Library District and the County Flood Control District.
Nature of operations
Rosemead Redevelopment Agency
The Agency finances street, park and utility improvements. It also acquires and constructs
major capital facilities, all within the Rosemead Project Area No. 1.
Rosemead Housing Development Corporation
The Rosemead Housing Development Corporation accounts for the construction and
financing of low and moderate income housing. It is a California nonprofit benefit
corporation organized under Section 501(c)(3) of the Internal Revenue Code of 1986.
Description of funds and account groups
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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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
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 Housing 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.
The Rosemead Housing Development Corporation accounts for the construction and
' financing of low and moderate income housing. It is a California nonprofit public benefit
corporation organized under Section 501(c)(3) of the Internal Revenue Code of 1986.
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.
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.
t 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. Property taxes that have been levied and are due on or before
year end are recognized as revenue if they have been collected within 60 days after year
' end.
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NOTES TO FINANCIAL STATEMENTS
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
I 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
I 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
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Property taxes receivable represent the portion of the March 1, 1992 levy which was
collected after June 30, 1993 and before August 31, 1993. Property taxes attach as an
enforceable lien on property as of March 1 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.
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NOTES TO FINANCIAL STATEMENTS
Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups,
and Significant Accounting and Reporting Policies, Continued
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.
Fund balances
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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
budgeting future operations.
Memorandum totals
Total columns on the combined statements are captioned "Memorandum Only" to indicate
that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position or results of operations in conformity with generally accepted
accounting principles. Interfund transactions have not been eliminated in arriving at these
amounts.
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.
Unexpended budgeted amounts lapse at the end of the budget year.
Budget-to-actual comparisons are not presented for the capital projects funds and the special
revenue funds since the budgeted appropriations relate to all future appropriations as well
as current year appropriations.
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NOTES TO FINANCIAL STATEMENTS
Note 2. Cash and Investments
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The components of cash and investments at June 30, 1993 are as follows:
Cash in bank
$ 273,143
Time certificates of deposit
2,974,260
3.247,403
At year end, the carrying amount of the Agency's deposits was
investments, above) and the bank balance was $3,249,362. A summ
$3,247,403 (cash and
ary of collateralization
of the bank balances is presented below:
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Insured or collateralized with securities held by the City or its
agent in the City's name
$ 375,347
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Uncollateralized (in accordance with GASB 3), 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
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of state law
2,874,015
L 1219Q62
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, 1993 consisted of $1,254,512 of money
' market funds (of which $106,501 were insured or collateralized with securities held by the
City or its agent in the City's name) and $2,634,952 of U.S. government and government
agency securities (with a market value of $2,663,202).
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NOTES TO FINANCIAL STATEMENTS
Note 2. Cash and Investments, Continued
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.
Investment Type
U.S. government and
government agency
securities
State and municipal
bonds
Corporate bonds
Investment in State
Treasurer's Investment
Pool
Total other investments
Category Carrying Market
1 2 3 Amount Value
$ - $ - $ 2,573,592 $ 2,573,592 $ 2,664,953
582,114 582,114 584,112
589.584 589584 598,300
$ - $ - $ 3,745,290 $ 3,745,290 $ 3,847,365
5,589,671 5,589,671
$ 9,334,961 $ 9,437,036
The three preceding risk description categories are defined as follows:
Cateeorv 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.
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I Special Revenue Funds:
NOTES TO FINANCIAL STATEMENTS
Note 3. Receivables
Receivables as of June 30, 1993 consisted of the following:
Special
Revenue Debt Capital
Fund Service Projects Total
Property tax increment $ - $ - $ 382,366 $ 382,366
Accrued interest 76.983 33.374 57.316 167.673
$ 76.983 $ 33.374 $ 439.682 $ 550.039
Note 4. Interfund Receivables and Payables
Interfund receivables and payables as of June 30, 1993 are as follows:
Interfund
Receivables Payables
Low-moderate income housing set-aside fund $ 692,386 $ -
Capital projects fund - 692.386
$ 692386 $ 692.386
' Note 5. Reimbursement Agreements and Related Pally 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 totalled $947,300 for the
fiscal year ended June 30, 1993.
The amount due to the City totalling $99,764 as of June 30, 1993 is noninterest bearing.
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I Subordinate Lien Tax Allocation Bonds, Series 1991
NOTES TO FINANCIAL STATEMENTS
Note 6. Property and Equipment
During the year ended June 30, 1993, the changes in the general fixed asset were as follows:
Land
Buildings and improvements
Furniture and fixtures
Note 7. Long-Term Debt
Tax Allocation Notes, Series 1987
Balance Balance
June 30, June 30,
1992 Acquisitions 1993
$ 2,350,308 $ - $ 2,350,308
1,463,377 19,730 1,483,107
348.243 17,851 366,094
$ 4,161,928 $ 37,581 $ 4,199,509
In August 1987, $14,930,000 of bonds were issued by the Agency to finance public
improvements within the Agency's Project Area No. 1. The bonds outstanding bear interest
from 7.75% to 9.20% with interest payable semiannually on September 1 and March 1.
Principal matures annually on September 1 through 1995. Payment of the bonds is
collateralized by a pledge of tax revenues to be received by the Agency.
' In October 1991, the Agency issued $11,725,240 of bonds to finance public improvements
that benefit the Agency's Project Area No. 1. The bonds outstanding bear interest ranging
from 5.80% to 6.75% with interest compounded on each October 1 and April 1 and payable
' at maturity. Principal matures annually on October 1, 1996 through 2002. Payment of the
bonds is collateralized by a pledge of tax revenues to be received by the Agency.
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NOTES TO FINANCIAL STATEMENTS
Note 7. Long-Term Debt, Continued
California Budget Trailer Bill SB1135
The Agency has included amounts in the General Long-Term Debt Group of Accounts for
the amount owed the State of California for Budget Trailer Bill S131135, which was a result
of the state budget (see Note 10).
The following is a summary of the general long-term debt transactions for the year ended
June 30, 1993.
Balance, June 30, 1992
(Payments) of
principal
Additions
Tax
Tax
California
Allocation
Allocation
Budget
Bonds
Notes
Trailer
Series 1991
Series 1987
Bill SB1135 Total
$ 11,725,240 $ 8,605,000 $ $ 20,330,240
(1,900,000) - (1,900,000)
175,288 175,288
Balance, June 30, 1993
11,725,240
$ 6,705,000 $ 175,288 $ 18,605,528
The annual requirements, principal and int
erest, to amortize the outstanding debt as of
June 30, 1993 are as follows:
Tax
Tax
California
Allocation
Allocation
Budget
Years Ending Bonds
Notes
Trailer
June 30, Series 1991
Series 1987
Bill SB 1135 Interest Totals
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1994 $ - $ 2,055,000 $ 175,288 $ 496,781 $ 2,727,069
1995 - 2,230,000 - 309,312 2,539,312
1996 - 2,420,000 - 105,875 2,525,875
1997 2,065,091 - - 679,909 2,745,000
1998 1,927,813 - 817,187 2,745,000
Years thereafter 7,732,336 5,992,664 13,725,000
$ 11,725,240 $ 6,705,000 $ 175,288 $ 8,401,728 $ 27.007,256
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I prefunded in October 1991 (see Note 11).
NOTES TO FINANCIAL STATEMENTS
Note 8. Low-Moderate Income Housing Set-Aside Fund
In October 1991, the Agency funded its Low-Moderate Income Housing Set-Aside Fund
with $6,813,850 of proceeds from the Tax Allocation Notes, Series 1987. This amount was
deposited in the Low-Moderate Income Housing Fund to satisfy set-aside requirements, at
a rate of $870,700 per year, for fiscal years 1991-1992 through 2002-2003. While the law in
California is not specific on the issue, the Agency takes the position that the Housing Fund
set-aside requirement may be prepaid in this manner.
As a result of the $6,813,850 deposit described above, the $870,700, otherwise required to
be deposited in the Low-Moderate Income Housing Fund in each such year, will be made
available as tax revenues. On November 2, 1993, the $6,813,850 deposit was restructured
(see Note 11).
Note 9. Tax Increment Shift to Fund Education in California
In September 1992, the State of California passed its annual budget for the period July 1,
1992 through 1993. Included in the budget were substantial cuts in funding to cities,
including redevelopment agencies, to help offset the cost of education in California. The
funding cuts equated to $580,791 for the Agency. This amount was paid on May 10, 1993.
Of this amount ($580,791), $423,574 was borrowed for the 20% Low-Moderate Income
Housing Fund. On November 2, 1993, the Agency paid back the 2001o Low-Moderate
Income Housing Fund with a portion of the reallocation of the $6,813,850 which was
I Note 10. 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, 1993, the accumulated set-aside amount not yet funded was approximately
$3,982,000. The law requires the Agency to devise a plan to fund the accumulating amount
and to begin funding it by 1996.
' 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 $175,288 for the Agency. This amount must be paid by May 10, 1994 from the
Low-Moderate Income Housing Set-Aside Fund and will reduce the amount of property tax
revenue that the Agency will record for the fiscal year ending June 30, 1994.
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NOTES TO FINANCIAL STATEMENTS
Note 11. Subsequent Event
Tax Allocation Bonds Series 1993
On November 2, 1993, the Agency issued tax allocation bonds amounting to $34,275,000
(Series 1993A) and taxable tax allocation refunding bonds amounting to $2,435,000 (Series
1993B) 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, respectively. The notes will be repaid with tax increment revenues of the
project area and are scheduled to mature as follows:
During the
Year Ending Series 1993A Bonds Series 1993B Bonds
June 30, Principal Interest Principal Interest Total
1994
$ - $ 1,892,193
$ 260,000 $
133,720
$ 2,285,913
1995
- 1,892,193
265,000
120,200
2,277,393
1996
1,892,193
280,000
106,420
2,278,613
1997
- 1,892,193
295,000
91,860
2,279,053
1998
- 1,892,193
310,000
76,520
2,278,713
'
Years thereafter
34,275,000 45,523,163
1,025,000
120,780
80,943,943
e Total $ 34,275,000 $ 54,984J28 $ 2.435MO $ 649,500 $ 92,343,628
The Agency received proceeds from the Series A and B bonds of $33,375,635 and
$2,382,551, respectively. Of these amounts, $14,652,398 of Series A and $2,382,551 (i.e., all)
t of Series B proceeds, along with the existing reserve amounts of $1,231,983 and $2,651,000,
will be 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 Notes of 1987 as described in
Note 7 to the financial statements.
' In addition, the $6,813,850 deposited in the Low-Moderate Income Housing Set-Aside Fund
in October 1991 (see Note 8) was reallocated as follows:
• Satisfied the housing set-aside. requirements for the fiscal years ended June 30, 1992
and 1993 totalling $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 1993A 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).
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SUPPLEMENTARY INFORMATION
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ROSEMEAD REDEVELOPMENT AGENCY
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
June 30, 1993
Low-Moderate
Income
Rosemead
Housing
Housing
Set-Aside
Development
Totals
ASSETS
Fund
Corporation
1993
1992
Cash and investments
$ 3,142,648
$ 104,755
$3,247,403 $
3,259,300
Other investments
3,618,590
-
3,618,590
4,050,905
Receivables
76,983
76,983
84,443
Due from the City of
Rosemead
-
-
6,762
Due from other funds
692,386
-
692,386
-
Total assets
7,530,607
$ 104,755
$ 7,635,362 $
7,401,410
LIABILITIES AND
EQUITY
LIABILITIES, accounts
payable
$ -
$ 1,884
$ 1,884 $
AGENCY EQUITY, fund
balances, reserved
for low-moderate
income housing
$ 7,530,607
$ 102,871
$ 7,633,478 $
7,401,410
Total liabilities
and equity
$ 7,530,607
$ 104,755
$ 7,635,362 $
7,401,410
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ROSEMEAD REDEVELOPMENT AGENCY
COMBINING STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
Year Ended June 30, 1993
Low-Moderate
Income
Rosemead
Housing
Housing
Set-Aside
Development
Totals
Fund
Corporation
1993
1992
REVENUE
Use of money and property $ 370,567
$
$ 370,567 $
485,942
Other 108,677
108,677
59,546
$ 479,244
$
$ 479,244 $
545,488
EXPENDITURES
Current:
Improvements to
project area
$ - $ 67,777
$ 67,777 $ -
Professional fees
47 29,352
29,399 -
City administrative
services
- 150,000
150,000 -
$ 47 $ 247,129
$ 247,176 $ -
Revenue over (under)
expenditures $ 479,197
OTHER FINANCING
SOURCES (USES),
operating transfers
$ (247,129) $ 232,068 $ 545,488
(to) from other funds (350,000) 350,000 6.855.922
Revenue and other
financing sources over
(under) expenditures
and other financing
uses $ 129,197
$ 102,871 $ 232,068 $ 7,401,410
FUND BALANCE,
BEGINNING 7,401,410 7,401,410
FUND BALANCE, ENDING 7,530,607 $ 102,871 $ 7,633,478 $ 7,401,410
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ROSEMEAD REDEVELOPMENT AGENCY
SUPPLEMENTAL SCHEDULE
TAX INCREMENT SHIFT TO EDUCATIONAL AUGMENTATION REVENUE FUND
June 30, 1993
Total tax increment to be shifted to the
Educational Revenue Augmentation Fund (ERAF)
per State Department of Finance (DOF) letter
dated October 1, 1992
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
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$ 157,217
157,217
$ 423,573
423,573
580 790
580 790
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