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HomeMy WebLinkAboutMINUTES - 01121999 - D1 Dl TO: REDEVELOPMENT AGENCY FROM: Phil Batchelor Executive Director DATE: January 12, 1999 SUBJECT: Acceptance of 1997-98 Audit Report SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION REC MMENDATION'E ACCEPT the June 30, 1998 Audited Financial Statements of Macias, Gini & Company. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS The Redevelopment Agency is required to have an annual audit of its financial records. The audit contains no exceptions. The audit addresses the requirementsof Health and Safety Cade Section 33080. CONTINUED ON ATTACHMENT: YES SIGNATURE: N ,Zf RECOMMENDATION OF EXECUTIVE DIRECTOR T RECOMMENDATION OF ENCY COMMITTEE APPROVE OTHER SIGNATURES): ZIM4 ACTION OF BOARD ON January 12, 1999 APPROVED AS RECOMMENDED xx OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT - - - } TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Jim Kennedy 335-1255 ATTESTED January 12 , 19 9 9 cc: County Administrator PHIL BATCHELOR County Counsel AGENCY SECRETARY Auditor-Controller Community Development BY , DEPUTY JK:dc wp6\9812\audit.bos �r. wi CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Independent Auditor's Reports, General-Purpose Financial Statements, Combining and Account Group Statements, and Other Required Reports For The Fiscal Year Ended June 30, 1998 1 i 3 J CONTRA COSTA COUNTY REDEVELOPMENT AGENCY For the Fiscal Year Ended June 30, 1998 Table of Contents Pages) IndependentAuditor's Report ..................................................................................... ......................... I General-Purpose Financial.Statements: Combined Balance Sheet- All Governmental Fund Types and Account Groups.........................................................................2 Combined Statement of Revenues,Expenditures and Changes in Fund Balances- All Governmental Fund Types..............................................................3 Notes to General-Purpose Financial Statements................ ....4-9 Combining and Account Group Statements: Capital Projects Funds: CombiningBalance Sheet................................. ........................................................... ................... 10 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................................................................. 11 Special Revenue Funds: F Combining Balance Sheet.................... . 12 Combining Statement of Revenues, Expenditures and Changesin Fund Balances................................................................................... ...................... 13 Debt Service Funds: CombiningBalance Sheet......................................................................................... ....................... 14 f Combining Statement of Revenues, Expenditures and Changes in Fund Balances.................................................................................... ..................... 1 S General Long-Term Obligations Account Group: Statement of Changes in General Long-Term Obligations Account Group..................................... 16 Other Required Report: Independent Auditor's Report on Compliance(Including the Previsions Contained in the Guidelines for Compliance Audits of Redevelopment Agencies)and.on Internal Control over Financial Reporting Based on an Audit of General-Purpose Financial Statements Performed in Accordance with Government,4uditing Standards .................................................17-18 F� F� , - Partners Mt.Diablo Plaza Kenneth A.Macias 2175 N.California Boulevard Ernest J.Gini Suite 620 Kevin J.O'Connell Walnut Creek,CA 94596 Macias,Gini&Company ,.rr 925+274+0190 _ CeMfled€uWHC ACCO.n ICnts 925+274+:1819 FAX www.maciasgini.com Directors of the Contra Costa County Redevelopment Agency INDEPENDENT AUDITOR'S REPORT rgeneral-purpose financial statements of the Contra Costa Count We have audited the accompanying, y Redevelopment Agency, California (Agency), a component unit of Contra Costa County, California, as of and for the year ended June 30, 1998. These general-purpose financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these general- purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perforin the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general- purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Agency as of June 30, 1998, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated October 9, 1998 on our consideration of the Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations,contracts and grants. Our audit was made for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The combining and account group statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Agency. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole. Certified PMfic Accountants Walnut Creek,California October 9, 1998 I . OFFICE LOCATIONS Sacramento • Los Angeles • San Francisco Bay Area CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Combined Balance Sheet All Governmental Fund Types and Account Group June 30, 1998 Account Governmental Fund Types Group General Total Capital Special Debt Long-Term (Memorandum Projects Revenue Service Obligations Only) ASSETS AND OTHER DEBITS: Assets: Cash and investments $ 19,697,253 $ 1,513,312 $ 1,410,791 $ - $ 22,621,356 Restricted cash and investments - - 2,223,163 - 2,223,1:63 Accrued investment income - - 43,213 - 43,213 Accounts receivable 34,673 - - - 34,673 Due from Contra Costa County 413,892 64,776 - - 478,668 Due from other funds - 256,476 - - 256,476 Prepaid items and deposits - 6,814 - - 6,814 Land held for resale 1,848,891 1,739,460 - - 3,588,351 Other debits: Amount available in debt service funds - - - 2,871,525 2,871,525 Amount to be provided for retirement of long-term obligations - - - 24,977,704 24,977,704 Total assets and other debits $ 21,994,709 $ 3,580,838 $ 3,677,167 $ 27,849,229 $ 57,101,943 LIABILITIES AND FUND BALANCES Liabilities- Accounts payable and accrued liabilities $ 59,071 $ 21,207 $ - $ - $ 80,278 Due to Contra Costa County 870,624 39,364 69 - 910,057 Due to other funds 256,476 - - - 256,476 Accrued interest - - 805,573 - 805,573 Advances from Contra Costa County 230,000 2,807,071 - 749,229 3,786,300 Note payable - - - 1,200,000 1,200,000 Bonds payable - - - 25,900,000 25,900,000 Total liabilities 1,416,171 2,867,642 805,642 27,849,229 32,938,684 Fund balances: Reserved for: Debt service - - 2,871,525 - 2,871,525 Encumbrances 78,718 629,695 - - 708,413 Land held for resale 1,848,891 1,739,460 - - 3,588,351 Prepaid expenses and deposits - 6,814 - - 6,824 Unreserved: Designated 18,650,929 1,210,438 - - 19,861,367 Undesignated(deficit) - (2,873,211) - - (2,873,211) Total fund balances 20,578,538 713,196 2,871,525 - 24,163,259 Total liabilities and fund balances $ 21,994,709 $ 3,580,838 $ 3,677,167 $ 27,849,229 $ 57,101,943 See accompanying notes to the general-purpose financial statements. 2 �� CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types For the Fiscal Year Ended June 30, 1998 Governmental Fund Types Total Capital Special Debt (Memorandum Projects Revenue Service Only) Revenues: Property tax increment $ 2,870,681 $ 1,182,003 $ 1,857,353 $ 5,910,037 Aid from other governmental agencies 1,135,232 45,479 1,180,711 Use of money and property 1,342,304 110,367 190,736 1,643,407 Other revenue 100,545 - - 100,545 Total revenues 5,448,762 1,337,849 2,048,089 8,834,704 Expenditures: Current: General administration 740,122 873 568 741,563 Fiscal agreement passthroughs 559,356 - - 559,356 Operation and management of property 45,656 1,509 47,165 Capital outlay: Purchase of property 167,798 453,173 - 620,971 Project improvements 1,543,921 1,147,869 2,691,790 Relocation and acquisition 16,930 6,450 - 23,380 Planning, survey and design 86,444 20,314 - 106,758 Professional services 381,501 - - 381,501 Debt service: Principal repayment 160,000 - 390,000 550,000 Interest 2,391 84,103 1,932,012 2,414,506 Total expenditures 3,704,119 1,710,291 2,322,580 7,736,990 Excess (deficiency)of revenues over(under) expenditures 1,744,643 (372,442) (274,491) 1,097,710 Other financing sources(uses): Proceeds from.advances 2,391 - - 2,391 Loss on land held for resale - (450,040) - (450,000) Operating transfers in - 497,616 2,528,158 3,025,774 Operating transfers out (2,902,822) (122,952) - (3,02.5,774) Total other financing sources (uses) (2,904,431) (75,336) 2,528,158 (447,609) Excess (deficiency)of revenues and other financing sources over(under) expenditures and other financing uses (1,155,788) (447,778) 2,253,667 650,101 Fund balances, beginning of year 21,734,326 1,511,942 617,858 23,864,126 Prior period adjustments - (350,968) - (350,968) Fund balances, beginning of year, as restated 21,734,326 1,160,974 617,858 23,513,158 Fund balances,end of year $ 24,578,538 $ 713,196 $ 2,871,525 $ 24,163,259 See accompanying notes to the general-purpose financial statements. 3 �' This page 6 intentionally k2 blank. ( � ! � ! , ! � | � ( � | � | � ) � ! � } � } � ] � � CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Notes to the General-Purpose Financial Statements For the Fiscal Year Ended June 30, 1998 (1) Activities of the Contra Costa County Redevelopment Agency The Contra Costa County Redevelopment Agency (the Agency) was created on;December 6, 1983, for the purpose of redeveloping certain areas of Contra Costa County (the County), designated as project areas. Currently,the members of the County Board of Supervisors serve as the Agency directors. The principal sources of funding for the Agency's activities are: • Property tax revenue attributable to increases in assessed valuations in the project areas. a Proceeds from issuance of debt. Advances and loans from the County. _ • Aid from other governmental agencies • Development fees for services provided to developers in the project areas.'. The Agency has ongoing projects in Pleasant Hill BART, Bay Point (formerly West Pittsburg), North Richmond,Oakley and Rodeo. The accompanying general-purpose financial statements are included as a blended component unit in the County's General-Purpose Financial Statements. (2) Summary of Significant Accounting Policies The significant accounting policies of the Agency used in preparation of the accompanying general-purpose financial statements are as follows: (a) Basis r�,f Presentation— Fund Accounting The accounts of the Agency are organized into funds and an account group, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for within a separate set of self-balancing accounts that comprise its assets, liabilities,fund balance, revenues and expenditures. The following funds and account group are used by the Agency. Capital Projects Funds are used to account for financial resources designated for the acquisition or construction of land and capital facilities or significant repairs or improvements thereto, Special Revenue Funds are used to account for financial resources designated for the improvement of targeted low to moderate income housing areas. 1�ebt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. General Long-Terra Obligations Account Group accounts for the Agency's long-term obligations and are expected to be financed from future tax revenues anticipated to be realized by the governmental funds. J 4 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Notes to the General-Purpose Financial Statements (Continued) For the Fiscal Year Ended June 30, 1998 (b) .Basis of Accounting The Agency follows the modified accrual basis of accounting whereby revenue is recorded when cash is received except for revenue susceptible to accrual (that is, measurable and available to finance the Agency's operations), and expenditures other than interest on long-term obligations are recorded as the liabilities are incurred if measurable. Interest on long-term obligations is generally recognized when paid. However,where resources have been provided during the current year for payment of interest due early in the following year,the expenditure and related liability are accrued. (c) Capital Expenditures Capital expenditures for certain projects, including acquisition of real property, site clearance and project improvements, are charged to expenditures when incurred. Management of the Agency intends to donate such land and infrastructure and therefore these assets have not been capitalized in the Agency's financial statements. However, appropriate records are maintained by the Agency for both management and accountability purposes. () Prod er Tax Increment Property California Redevelopment Law provides a means for financing and refinancing redevelopment projects based upon the allocation of taxes collected within a project. The assessed valuation of a project prior to adoption of the redevelopment plan, or base roll, is established and, except for any period during which the assessed valuation drops below the base roll, the taxing authorities thereafter receive the taxes produced by the levy of the current tax rate upon the base roll. Property taxes collected upon an increase in assessed valuation over the base roll are called tax increments. Each year the redevelopment project receives this incremental amount. The Agency has elected to pass through a portion of its annual tax increment to various special districts under agreements with those districts. The annual tax increment may be pledged by a redevelopment agency for the repayment of indebtedness incurred in financing or refinancing the project. Incremental property taxes are recognized as revenue when claimed and available from local taxing authorities. Property taxes are due in two equal installments, on November I and February 1, and become delinquent on December 10 and April 10, respectively. (e) Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation, is employed by the Agency. Encumbrances outstanding at year-end are reported as a reservation of fund balance since they do not constitute expenditures or liabilities. (t) Budgetary Data The budgets of the Agency are primarily long-term project-length budgets which emphasize major programs and capital outlay plans extending over a number of years. Annual budgetary data is not presented as it would not provide a meaningful comparison to actual revenues and expenditures because { of its long-term project-length focus. i 5 dan 1 nS{� CONTRA COSTA COUNTY REDEVELOPMENT AGENCY � Notes to the General-Purpose Financial Statements (Continued) For the Fiscal Year Ended June 30, 1998 (g) Unreserved—Designated Fund Balance The Agency designates portions of unreserved fund balance for all project areas except for Pleasant Hill BART and North Richmond in the Special Revenue Funds because these project areas have an overall fund deficit and a reserve for encumbrances that exceed available fund balance, respectively. (h) Governmental Accounting Standards Board(GASB)Statement No. 31 The Agency implemented the provisions of Governmental Accounting Standards Board Statement No. 31, Accounting and Financial Reporting fir Certain Investments and for External Investment fools (GASB 31). The Agency records investment transactions on the trade date. Investments in nonparticipating interest earnings contracts (guaranteed investment contracts) are reported at cost, and all other investments are at fair value. Fair value is defined as the amount that the Agency could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by quoted market prices. The effect of this new standard on the Agency's general-purpose financial statements is immaterial. (i) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the general-purpose financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual +� results could differ from those estimates. { Total(Memorandum Only) Column The "Total" column on the general-purpose financial statements is presented only to facilitate financial analysis. Data in this column does not present financial position or results of operations in conformity with generally accepted accounting principles nor is such data comparable to a consolidation since interfund eliminations have not been made. (3) Cash and Investments The Agency pools its investments with the County Treasurer for the purpose of maximizing earnings. As t permitted by the Government code, the Agency directs the County Treasury to make specific investments •t separate from the pool. Statutes authorize the County to invest in obligations of the U.S. Treasury, federal agencies, municipalities, commercial paper rated A-1 by the Standard & Poor's Corporation or P-1 by Moody's Commercial Paper Record, bankers' acceptances, repurchase agreements or reverse repurchase agreements. The County Treasurer's investment pool is subject to regulatory oversight by the Treasury Oversight Committee, as required by the California Government Code Section 27134. The fair value of the Agency's position in the pool is the same as the value of the pool shares. For financial reporting purposes, investments are categorized to give an indication of the level of custodial credit risk assumed by the entity at year-end. Category i includes investments that are insured or registered, or with securities held by the Agency or its agent in the Agency's name. Category 2 includes uninsured and unregistered investments, with securities held by the counterparty's trust department or agent in the Agency's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty,or by its trust department or agent, but not in the Agency's name. 6 CONTRA COSTA COUNTY REDEVELOPN1ENT AGENCY Notes to the General-Purpose Financial Statements (Continued) For the Fiscal Year Ended June 30, 1998 The Agency's cash and investments consist of the following at June 30, 1998: Cash and investments $ 22,62I 356 Restricted cash and investments held by trustee bank 2,223,163 Total cash and investments $ 24,844,519 Carrying Amount/Fair Category 2 Value Investments subject to categorization: U.S. Government securities $ 338,129 $ 338,129 Noncategorized deposits and investments: Guaranteed investment contracts 1,867,830 Mutual funds 13,558,758 County Treasurer's investment pool 9,079,802 Total cash and investments $ 24,844,519 Under the provisions of the Agency's 1992 and 1995 tax allocation bond indentures a portion of the proceeds from these debt issuances is required to be held in reserve accounts by a fiscal agent as trustee. As of June 30, 1998, the amount invested in assets held by trustee amounted to $2,223,163 and was equal to or in excess of the amount required at that date. (4) Investments-- Land Heid for Resale Land acquired by the Agency for future sale is capitalized at cost. Such land is carried at the lower of cost or estimated net realizable value and is offset by a reservation of fund balance to indicate that the assets do not constitute available spendable resources. (5) Relationship with Contra Costa County The Agency and the County are closely related but separate legal entities. The Agency does not have any employees and does not have facilities separate from the County. Therefore, a portion of the Agency's expenditures represents services provided to the Agency by the County. In addition the County performs project improvements, provides administrative services for projects, and provides operating transfers and advances. For the year ended June 30, 1998, the Agency paid approximately $2,673,539 to the County for project improvements and administrative services incurred by the Agency. (6) Advances from Contra Costa County The $2,502,713 advance from the County to the Pleasant Hill BART Special Revenue Fund was made for the purchase of land held for resale. Repayment of this advance will be made with proceeds from the sale of such land. The advance bears interest at 3% per annum. 7 yF 3 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Notes to the General-Purpose Financial Statements (Continued) For the Fiscal Year Ended June 30, 1998 The $304,358 advance from the County to the North Richmond Special Revenue Fund was made for specific project costs. Repayment of this advance will be made when sufficient tax increment funds become available. The advance bears interest at 3% per annum. The $230,000 advance from the County to the North Richmond Capital Projects Fund was made for the construction of the North Richmond Commercial Center Project. Repayment of this advance will be made when sufficient tax increment funds become available. The advance bears interest at 3% per annum. Advances from the County recorded in the General Long-Term Obligations Account Group at June 30, 1998 represent $749,229 received to finance operations and improvements not associated with specific projects. This amount includes unpaid interest on those advances. Expenditures for interest on these advances are recorded in the period in which the payments are made. Repayment of these advances will be made when sufficient tax increment funds become available. During the year ended June 30, 1998, the Agency repaid $160,000 of principal on these advances out of the Capital Projects Fund. The pledge of tax increment funds to the County is subordinated to any such pledge of funds that the Agency makes in connection with the sale of bonds, notes or similar Agency obligations. (7) Note and Bonds Payable On March 25, 1992, the Agency borrowed $1,200,000 from a commercial savings bank to purchase land in the project areas. The note is secured by real property and accrued interest at 9% per annum until it became due on February 1, 1997. Prior to the due date, the Agency renegotiated the terms of the note extending the due date to February 1, 2002, and increasing the annual rate of interest to 11.2.5%. The interest is payable annually on February 1. On May 15, 1992, the Agency issued $29,315,000 in Tax Allocation Revenue (Bonds with an average interest rate of 7.02%. The proceeds were used to fund on-going project expenditures and to defease certain tax anticipation notes, which have since been retired. Principal and interest is due annually each August 1 and matures on August 1, 2023. On July 17, 1995, the Agency issued $1,645,000 in Tax allocation Bonds with an average interest rate of 6.41% to fund expenditures for the North Richmond project. Principal is paid annually on August 1 and matures on August 1, 2025. On December 21, 1995 the Agency issued$2,735,000 in Tax Allocation Bonds with an average interest rate of 6.66% to fund expenditures for the Bay Point project. Principal will be paid annually beginning August 1, 1997 and matures on August 1, 2025. Activity in the General Long-Term Obligations Account Group during the year ended June 30, 1998 is presented below: 1992 Tax 1995-A Tax 1995-8 Tax Advances Allocation Allocation Allocation Note From Bonds Bonds Bonds Payable County Total Balance, July 1, 1997 $21,930,000 $1,625,000 $2,735,000 $1,200,000 $906,838 $28,396,838 Additions _ _ _ _ 2,39I 2,391 Retirements (330,000) (20,000) (40,000) - (160,000) (550,000) Balance, June 30, 1998 $21,600,000 $1,605,000 $2,695,000 $1,200,000 $749,229 $27,849,229 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Notes to the General-Purpose Financial Statements (Continued) For the Fiscal Year Ended June 30, 1998 Following is a schedule of debt requirements to maturity for the note and bonds payable and excluding advances from Contra Costa County: Note Bonds Payable Payable 1999 $ 142,183 $ 2,194,178 2000 142,183 2,189,016 2001 142,183 2,186,438 2002 1,342,184 2,186,014 2003 - 2;187,503 , Thereafter - 44,248,855 1,768,733 55,192,003 f Less interest (568,733) (299292,003) ! Total principal $ 1,200,000 $ 257900,000 There are a number of limitations and restrictions contained in the various bond indentures. The Agency believes it is in compliance with all significant limitations and restrictions. (8) Deficit Fund Balance At June 30, 1998, the Pleasant Hill BART Special Revenue Fund had a deficit fund balance of$952,113. This deficit is expected to be cured through the collection of future tax increment revenue. (9) Pass-Through Agreements The Agency has property tax pass-through agreements with various taxing agencies in existence when the Agency was formed. Under these agreements, the Agency passes through to these various taxing agencies, a portion of the property tax increments it would otherwise have received. In fiscal 1998, the County passed through increments totaling $559,356 directly to these agencies. (10) Commitments and Contingencies The Agency is included as part of the County's self-insurance program for public liability. As such, the Agency is obligated to reimburse the County for the unfavorable outcome of any claims paid on behalf of the Agency. At June 30, 1998, there are no significant claims outstanding in the self-insurance program for which the Agency is obligated. There have been no claims during the past three years that have exceeded excess insurance coverage. (11) Prior Period Adjustments During the year, the Agency finalized certain loan agreements with the County. The loan agreements call for an annual interest rate of 3%, compounded using the simple interest method. The accumulation of interest expense up to June 30, 1997 was$311,902 and $39,066 for the Pleasant Hill Bart Station Area and the North Richmond Project Area, respectively. These loans are presented as Advances from Contra Costa County in the Special Revenue Fund. 9 i atJ�t CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Capital Projects Funds Combining Balance Sheet Jule 30, 1998 Pleasant Hill Bay North BART Point Richmond Oakley Roden Total ASSETS Cash and investments $ 11,580,052 $3,888,850 $ 830,563 $3,157,502 $ 240,286 $19,697,253 Accounts receivable 34,273 - - 400 - 34,673 Due from Contra Costa County 69,295 215,599 35,284 65,185 28,529 413,892 Land held for resale - - - 1,848,891 - 1,848,891 Total assets $ 11,683,620 $4,104,449 $ 865,847 $5,071,978 $ 268,815 $21,994,709 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 18,705 $ 13,472 $ 21,676 $ 5,218 $ 59,071 Due to Contra Costa County 135,068 530,943 92,880 71,622 40,111 870,624 Due to other funds 256,476 256,476 Advances from Contra Costa County - - 230,000 - - 230,000 Total liabilities 135,068 549,648 592,828 93,298 45,329 1,416,171 Fund balances: Reserved for: Encumbrances 31,569 584 28,943 6,032 11,610 78,718 Land held for resale - - - 1,848,891 - 1,848,891 Unreserved: Designated 11,516,983 3,554,217 244,076 3,123,777 211,876 18,650,929 r Total fund balances 11,548,552 3,554,801 273,019 4,978,680 223,486 20,578,538 Total liabilities and fund balances $ 11,683,620 $4,_104,449 $ 865,847 $5,Q71,978 $ 268,815 $21,994,709 i 10 .fp:. CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 1998 Pleasant Hill Bay North BART Point Richmond Oakley Rodeo Total Revenuers Property tax increment $ 894,019 $ 555,056 $ 253,200 $ 827,065 $ 341,341 $ 2,870,681 Aid from other governmental agencies - 172,602 - 923,500 39,130 1,135,232 Use of money and property 896,476 203,150 40,767 180,274 21,637 1,342,304 Other revenue 100,444 - 1 100 100,545 Total revenues 1,890,939 930,808 293,968 1,930,839 402,208 5,448,762 Expenditures: Current: General administration 227,456 145,257 106,044 138,021 123,344 740,122 Fiscal agreement passthroughs 85,906 185,595 - 228,691 59,164 559,356 Operation and management of property 27,965 2,107 - 6,647 8,937 45,656 Capital outlay: Purchase of property - - - 67,798 100,000 167,798 Project improvements 366,734 597,484 143,744 231,945 204,014 1,543,921 Relocation and acquisition 4,101 12,829 - - - 16,930 Planning, survey and design 52,848 5,392 4,943 18,599 4,662 86,444 Professional services 204,357 60,411 49,946 45,510 21,277 381,501 Debt service: Principal repayment 160,000 - - - - 160,000 Interest - - 2,391 - - 2,391 Total expenditures 1,129,367 1,009,075 307,068 737,211 521,398 3,704,119 Excess(deficiency)of revenues over(under)expenditures 761,572 (78,267) (13,100) 1,193,628 (119,190) 1,744,643 Other financing sources(uses): Proceeds from advances - - 2,391 - - 2,391 3 ratio transfers out Operating (1,459,563) (426,544) (769,737) (246,978) - (2,992,822) Total other financing sources(uses) (1,459,563) (426,544) (767,346) (246,978) - (2,900,431) Excess(deficiency)of revenues and other financing sources over(under) expenditures and other financing uses (697,991) (504,811) (780,446) 946,650 (119,190) (1,155,788) Fund balances,beginning of year 12,246,543 4,059,612 1,053,465 4,032,030 342,676 21,734,326 Fund balances,end of year $ 11,548,552 $3,554,801 $ 273,019 $4,978,680 $ 223,486 $ 20,578,538 j: 11 .......................................... CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Special Revenue Funds Combining Balance Sheet June 30, 1998 Pleasant Hill Bay North BART Paint Richmond Oakley Rodeo Total ASSETS Cash and investments $ 22,131 $ 899,840 $ 123,420 $ 397,136 $ 70,725 $ 1,513,312 Due from Contra Costa County - 45,479 19,297 - 64,776 Due from other funds - - 256,476 - 256,476 Prepaid items and deposits - - 6,814 - 6,814 Land held for resale 1,550,000 189,460 - - 1,739,460 l� Total assets $ 1,572,131 $ 1,134,779 $ 406,007 $ 397,196 $ 70,725 $3,580,838 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 21,060 $ - $ - $ - $ 147 $ 21,207 Due to Contra Costa County 471 91 38,676 103 23 39,364 Advances from Contra Costa County 2,502,713 - 304,358 - 2,847,071 C Total liabilities 2,524,244 91 343,034 103 170 2,867,642 Fund balances: Reserved for: Encumbrances 540 - 426,717 173,602 28,836 629,695 Land held for resale 1,550,000 189,460 - - - 1,739,460 Prepaid expenses and deposits - - 6,814 - - 6,814 Unreserved: Designated - 945,228 - 223,491. 41,719 1,210,438 Undesignated deficit (2,502,653) - (370,558) - - (2,873,211) Total fund balances(deficits) (952,113) 1,134,688 62,973 397,093 70,555 713,196 Total liabilities and fund balances $ 1,572,131 $ 1,134,779 $ 406,007 $ 397,196 $ 70,725 $3,580,838 12 -D/ CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 1998 Pleasant Hill Bay North BART Point Richmond Oakley Rodeo Total Revenues: Property tax increment $ 525,031 $ 216,528 $ 103,160 $ 251,949 $ 85,335 $ 1,182,003 Aid from other governmental agencies - 45,479 - - - 45,479 Use of money and property 1,943 43,602 22,049 19,745 23,028 110,367 Total revenues 526,974 305,609 125,209 271,694 108,363 1,337,849 Expenditures: Current: General administration 108 257 174 193 141 873 Operation and management of property - - 1,362 - 147 1,509 Capital outlay: Purchase of property - - - - 453,173 453,173 Project improvements 538,560 60,639 381,435 167,235 - 1,147,869 Relocation and acquisition - - 6,450 - - 6,450 Planning, survey and design - - - - 20,314 20,314 Debt service: Interest 63,811 - 16,292 - 80,103 Total expenditures 602,479 60,896 405,713 167,428 473,775 1,710,291 Excess (deficiency)of revenues over(under) expenditures (75,505) 244,713 (280,504) 104,266 (365,412) (372,442) Other financing sources (uses). Loss on land held for resale (450,000) - - - - (450,000) Operating transfers in - - 497,616 - - 497,616 Operating transfers out - (77,769) - (45,183) - (122,952) Total other financing sources (uses) (450,000) (77,769) 497,616 (45,183) - (75,336) Y Excess(deficiency)of revenues and other financing sources over(under) expenditures and other financing uses (525,505) 166,944 217,112 59,083 (365,412) (447,778) Fund balances, beginning of year (114,706) 967,744 (115,073) 338,010 435,967 1,511,942 Prior period adjustments (311,902) - (39,066) - - (350,968) Fund balances, beginning of year, as restated (426,608) 967,744 (154,139) 338,010 435,967 1,160,974 Fund balances, end of year $ (952,113) $ 1,134,688 $ 62,973 $ 397,093 $ 70,555 $ 713,196 13 E I' t��t CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Debt Service Funds Combining Balance Sheet June 30, 1998 Pleasant Hill Bay North Y BART Point Richmond ©akley Total ASSETS Cash and investments $ 839,892 $ 272,059 $ 141,457 $ 157,383 $ 1,410,791 Restricted cash and investments 1,317,380 426,544 232,261 246,978 2,223,163 " Accrued investment income 19,629 10,827 6,624 6,133 43,213 Total assets $ 2,176,901 $ 709,430 $ 380,342 $ 410,494 $3,677,167 LIABILrIJES AND FUND BALANCES Liabilities: Due to Contra Costa County $ 40 $ 14 $ ? $ $ $ 69 Accrued interest 505,141 144,322 72,532 83,578 805,573 Total liabilities 505,181 144,336 72,539 83,586 805,642 -- -_ Fund balances: Reserved for debt service 1,671,720 565,094 307,803 326,908 2,871,525 Total liabilities and fund balances $ 2,176,901 $ 709,430 $ 380,342 $ 410,494 $3,677,167 14 i CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 1998 Pleasant Hill Bay North BART Point Richmond Oakley Total Revenues: Property tax increment $ 1,206,106 $ 311,075 $ 159,440 $ 180,732 $ 1,857,353 Use of money and property 113,147 39,497 16,907 21,185 190,736 Total revenues 1,319,253 350,572 176,347 201,917 2,048,089 Expenditures: Current: General administration 167 159 161 81 568 Debt service: Principal repayment 232,749 77,125 36,500 43,626 390,000 Interest on bonds and notes 1,213,440 346,692 171,083 200,797 1,932,012 Total expenditures 1,446,356 423,976 207,744 244,504 2,322,580 Deficiency of revenues over expenditures (127,103) (73,404) (31,397) (42,587) (274,491) Other financing sources: Operating transfers in 1,459,563 504,313 272,121 292,161 2,528,158 Excess (deficiency)of revenues and other financing sources over(under) expenditures 1,332,460 430,909 240,724 249,574 2,253,667 Fund balances, beginning of year 339,260 134,185 67,079 77,334 617,858 Fund balances, end of year $ 1,671,720 $ 565,094 $ 307,803 $ 326,908 $2,871,525 f 1 15 ��s CONTRA COSTA COUNTY REDEVELOPMENT AGENCY Statement of Changes in General Long-Term Obligations Account Group For the Fiscal Year Ended June 30, 1998 Balance Balance July 1, 1997 Additions Deletions June 30, 1998 Pleasant Rill BART: 1992 Tax Allocation Bonds $ 15,467,229 $ - $ 232,749 $ 15,234,480 Advance from Contra Costa County 824,337 - 160,000 664,337 Note payable 1,200,000 - _ 1,200,000 17,491,566 - 392,749 17,098,817 Bay Point: 1992 Tax Allocation Bonds 2,467,125 - 37,125 2,430,000 1995-B Tax Allocation Bonds 2,735,000 - 40,000 2,695,000 5,202,125 - 77,125 5,125,000 North Richmond: 1992 Tax Allocation Bonds 1,096,500 - 16,500 1,080,000 1995-A Tax Allocation Bonds 1,625,000 - 20,000 1,605,000 Advance from Contra Costa County 82,501 2,391 84,892 2,804,001 2,391 36,500 2,769,892 Oakley: ', 1992 Tax Allocation Bonds 2,899,146 - 43,626 2,855,520 Total long-term obligations $ 28,396,838 $ 2,391 $ 550,000 $ 27,849,229 16 F This page is intentionally left blank. ..... ..... .... ..:: . Partners Mt. Diablo Plaza Kenneth A.Macias 2175 N.California Boulevard d9l C13....... Ernest J.Gini Suite 620 Kevin J.O'Connell Walnut Creek,CA 94596 Macias,Gini&Company Lu Ceftittea Vu Gilc Accountants - 925.274.0190 925.274.3819 FAX y yz, Directors of the www:maciasgini.com Contra Costa County Redevelopment Agency INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE (INCLUDING THE PROVISIONS CONTAINED IN THE GUIDELINES FOR COMPLIANCE AUDITS OF REDEVELOPMENT AGENCIES)AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERWMENTAUDITIN+GST.ANDARDS :< We;have audited the general-purpose financial statements of the Contra Costa County Redevelopment Agency(the Agency), a component unit of the County of Contra Costa, California,as of and for the year ended June 30, 1998, and have issued our report thereon datedOctober 9, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Agency's general-purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of general-purpose financial statement amounts. Such provisions include those provisions of laws and regulations identified in the Guidelines far Compliance Audits of California Redevelopment Agencies, issued by the State Controller's Office, Division of Accounting and Reporting. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general-purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general-purpose financial statements being audited may occur and not be detected within a timely period by staff in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be,material weaknesses. 17 OFFICE LOCATIONS Sacramento • Los Angeles • San Francisco Bay Area This report is intended for the information of the members of the Board of Directors, management, and the State Controller's Office, Division of Accounting and Reporting. However, this report is a matter of public record and its distribution is not limited. "t,�LA'AA.A. +-C �-\-? I Certified Public Accountants Walnut Creek, California October 9, 1998 i 18 a fat