1990 RRA Financial ReportI
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
.1
Rosemead Redevelopment Agency
Rosemead, California
ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 309 1990
a
1
1
r m■■■■►
AMEMEMEEk
MMMMMMMMM
■ @19MEQ 0
■M.... ■
IM■M■■■■r
L~iiio!j
11
i
[J
I ROSEMEAD REDEVELOPMENT AGENCY
' COMPONENT UNIT FINANCIAL REPORT
JUNE 30, 1990
1
I
1
h
1
1
1
1
C O N T E N T S
Page
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
Statement of revenue, expenditures and changes
in fund balances - budget and actual - debt service fund 4
Notes to financial statements 5 - 10
1
McGLADREY & PULLEN
' Certified Public Accountants and Consultants
I INDEPENDENT AUDITORS' REPORT
To the Governing Board
Rosemead Redevelopment Agency
Rosemead, California
1 We have audited the accompanying component unit financial statements of Rosemead
Redevelopment Agency, Rosemead, California, as of and for the year ended June
t 30, 1990, 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
t 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 Rosemead
Redevelopment Agency, Rosemead, California, as of June 30, 1990, and the results
' of its operations for the year then ended in conformity with generally accepted
accounting principles.
' Pasadena, California
October 10, 1990
- 1 -
ROSEMEAD REDEVELOPMENT AGENCY
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1990
ASSETS
Cash and cash investments
Cash and investments with
fiscal agent
Other investments
Receivables
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
Due to City of Rosemead
Tax allocation notes
Total liabilities
EQUITY
Investment in general
fixed assets
Fund balances:
Reserved for debt service
Unreserved, designated
for redevelopment
projects
Total equity
Total liabilities
and equity
Governmental Fund Types Account Groups
General General
Capital Debt Fixed Long-Term
Projects Service Assets Debt
$ 3,803,232 $ - $ $
- 2,973,099
8,366,402 -
1,072,143 106,027
- - 3,428,577
3,079,126
- 8.915.874
$13.241.777 $ 3.079.126 $ 3,428.577 511,995.000
$ 448,958 $ $ $
168,896 -
11,995,000
$ 617,854 $ $ $11,995,000
$ $ $ 3,428,577 $
3,079,126
12.623.923
$12,623,923 $ 3,079.126 $ 3,428.577 $
513.241.777 $ 3,079.126 1_1. 85 7 7 111.995.000
See Notes to Financial Statements.
- 2 -
1
1
1
Total
(Memorandum Only)
1990 1989
$ 3,803,232 $ 5,414,400
2,973,099
2,842,587
8,366,402
11,657,829
1,178,170
1,311,619
3,428,577
1,760,105
3,079,126 2,948,614
8.915.874 10.561.386
$31.744.480 $36.496,540
$ 448,958 $ 509,909
168,896 144,479
11,995.000 13,510,000
$12,612.854 $14,164,388
$ 3,428,577 $ 1,760,105
3,079,126 2,948,614
12.623.923 17.623.433
$19.131.626 $22.332.152
$31.744.480 $36.496.540
I
1
1
I
ROSEMEAD REDEVELOPMENT AGENCY
COMBINED STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
Year Ended June 30. 1990
REVENUE
Property tax increment
Interest
Other
EXPENDITURES
Current:
Improvements to project area
Professional fees
City administrative services
Intergovernmental
Debt service:
Principal
Interest
Revenue (under)
expenditures
OTHER FINANCING SOURCES (USES)
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.
Total
Capital
Debt
(Memorandum Only)
Projects
Service
1990
1989
$ 3,204,232
$ -
$ 3,204,232
$ 3,921,667
1,223,582
268,778
1,492,360
1,923,184
95.842
13.462
109.304
71.841
$ 4,523.656
$ 282,240
$ 4.805.896
$ 5.916.692
$ 6,421,291
$ -
$ 6,421,291
$ 5,937,552
28,024
-
28,024
37,073
274,114
-
274,114
261,876
334,705
-
334,705
-
-
1,515,000
1,515,000
1,420,000
-
1.101.760
1.101.760
1,218.143
$ 7,058.134
$ 2.616.760
$ 9.674.894
$ 8.874.644
$(2,534,478) $(2,334,520) $(4,868,998) $(2,957,952)
2,465,032 2,465,032 2,155,042
(2,465.032) (2.465,032) (2.155,042)
$(4,999,510) $ 130,512
17.623.433 2,948.614
$12.623.923 I-1-0Z9 ,126
- 3 -
$(4,868,998) $(2,957,952)
20,572,047 23.529.999
$15.703.049 $20.572.047
ROSEMEAD REDEVELOPMENT AGENCY
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
DEBT SERVICE FUND
Year Ended June 30, 1990
REVENUE
Interest
Other
EXPENDITURES
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.
Over
(Under)
Budget Actual Budget
$ 210,000 $ 268,778 $ 58,778
13,462 13,462
$ 210,000 $ 282,240 $ 72,240
$ 1,515,000 $ 1,515,000 $
1,101,760 1,101,760
$ 2,616,760 $ 2,616,760 $
$(2,406,760) $(2,334,520) $ 72,240
2,616,760 2,465,032 (151,728)
S 210.000 $ 130,512 S (79.488)
2,948,614
$ 3,079,126
- 4 -
ROSEMEAD REDEVELOPMENT AGENCY
' NOTES TO FINANCIAL STATEMENTS
Note 1. Nature of Operations, Significant Accounting and Reporting. Policies
and Description of Funds and Account Groups
' Nature of Operations
The Rosemead Redevelopment Agency (the Agency) finances street, park
' and utility improvements within the Rosemead Project Area No. 1.
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. Taxes are
considered to be measurable when collected by an intermediary and are
recognized as revenue at that time. 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 due.
Other Accounting Policies and Accounting and Reporting Practices
' Cash investments and other investments
Cash investments and other investments are accounted for at cost or
amortized cost. No loss is recognized when market values decline
below costs since it is the policy of the Agency to hold such
investments until they mature. Substantially all Agency investment
' activity is conducted in a pooled investment account. Investment
earnings are allocated based on the source of funds or other
systematic basis.
Property and equipment
All property and equipment purchases are recorded as expenditures of
the governmental funds at the time of acquisition. Such assets are
recorded in the general fixed asset account group at cost.
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. Neither is such data comparable to a consolidation
' because interfund eliminations have not been made in the aggregation
of this data.
I - 5 -
NOTES TO FINANCIAL STATEMENTS
Note 1. Nature of Operations, Significant Accounting and Reporting Policies
and Description of Funds and Account Groups, Continued
Description of Funds and Account Groups
The accounts of the Agency are organized on the basis of funds or
groups of accounts, 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:
General Fund Types
The Capital Proiects Fund accounts for the financial resources of the
Agency to be used for the acquisition or construction of capital
projects.
The Debt Service Fund accounts for the accumulation of resources for
the payment of general long-term debt principal, interest and related
costs.
' 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.
Note 2. Cash and Cash Investments
' The components of cash and cash investments at June 30, 1990, are as
follows:
Cash in bank
$ 253,232
'
Time certificates
of deposit
3.550.000
S 3.803.232
'
At year-end, the
carrying amount of the Agency
s deposits was
$3,803,232 and the bank balance
was $3,804,965. All
deposits at year-
end were entirely
covered by
federal depository
insurance or by
collateral held by
the bank in
the Agency's name.
I - 6 -
I
1
I
I
I
D
1
I
0
1
0
I
NOTES TO FINANCIAL STATEMENTS
Note 2. Cash and Cash Investments, Continued
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.
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 Category Carrying Market
Type 1 2 3 Amount Value
U.S. govern-
ment and
government
agency
securities $1,402,514 $ - $ - $1,402,514 $1,386,026
State and
municipal
bonds
Corporate
bonds
Investment
in State
Treasurer's
Invest-
ment Pool
Total other
invest-
ments
193,301 - 193,301 196,039
4,680,587 4,680,587 4,556,715
$1,595,815 $4,680,587 $ $6,276,402 $6,138,780
2.090.000 2.090.000
$8.366.402 $8.228.780
I -7
' NOTES TO FINANCIAL STATEMENTS
Note 2. Cash and Cash Investments, Continued
i 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 broker's or dealer's trust
department
or agent in the Agency's name.
3 Uninsured
and unregistered investments for which the
securities
are held by the broker or dealer, or by its
trust department or agent but not in the Agency's name.
p
Note 3. Receivables
e
Receivables as of June
30, 1990 consisted of the following:
Capital Debt
B
Proiects Service
Property tax increme
nt $ 900,261 $ -
Accrued interest
171.882 106,027
S 1.072.143 $ 106.027
Note 4. Reimbursement Agreemen
ts 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 service
s, facilities and other operating services for
a nominal fee.
'
The amount due to the
City totaling $168,896 as of June 30, 1990 is
noninterest-bearing.
i - 8 -
Note 5
1
R Note 6
Y
NOTES TO FINANCIAL STATEMENTS
Property and Equipment
During the year ended June 30, 1990, the changes in the general fixed
asset were as follows:
Balance Balance
June 30, June 30,
1989 Acquisitions 1990
Land
Buildings and
improvements
Furniture and
fixtures
$ 517,808 $ 1,655,000 $ 2,172,808
1,041,361
1,041,361
200.936 13.472 214,408
$ 1.760.105 $ 1.668.472 S 3.428.577
Long-Term Debt and Prior Year Defeasance of Debt
The following is a summary of general long-term debt transactions for
the year ended June 30, 1990, which consisted entirely of the Tax
Allocation Notes Series 1987.
Balance, June 30, 1989 $13,510,000
Retirements 1.515.000
Balance, June 30, 1990 $11.995.000
Prior-year Defeasance of Debt:
In prior years, the Agency defeased its tax allocation bonds Series
1983 by placing a portion of the proceeds of new tax allocation notes
Series 1987 in an irrevocable trust to provide for all future debt
service payments on the old bonds. Accordingly, the trust account
assets and the liability for these defeased bonds are not included in
these financial statements. At June 30, 1990, $1,275,000 of these
defeased bonds remain outstanding.
' The annual requirements, principal and interest, to amortize the
outstanding Tax Allocation Notes Series 1987 as of June 30, 1990 are
as follows:
Years
' Ending
June 30. Principal Interest Total
1991
$ 1,630,000
$ 972,350
$ 2,602,350
'
1992
1,760,000
828,617
2,588,617
1993
1,900,000
669,813
2,569,813
'
1994
1995
2,055,000
2,230,000
496,781
309,312
2,551,781
2,539,312
Thereafter
2.420.000
105.875
2.525.875
I $11.995.000 S 3.382.748 515.377.748
9
I
I
NOTES TO FINANCIAL STATEMENTS
Note 7. 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 i
ncome housing.
The Agency has made findings that, for the year ended
June 30, 1990,
'
it was exempt from funding any of the set aside. As of
June 30, 1990,
the accumulated set aside amount not yet funded was
approximately
$2,974,000. The law requires the Agency to devise a plan to fund the
accumulating amount and to begin funding it by 1996.
I
I
I
1
I
I - 10 -