HomeMy WebLinkAboutMINUTES - 01252000 - C71 . � . ell
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TO: REDEVELOPMENT AGENCY `�'� -__ i•
011
FROM: Phil Batchelor
Executive Director
DATE: January 25, 2000
SUBJECT: Acceptance of 1998 - 1999 Audit Report
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ACCEPT the June 30, 1999 Audited Financial Statements of the Redevelopment Agency
as performed by 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 requirements of Health and
Safety Code Section 33080.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOM ENDATION OF AGENC)
COMMITTEE IX APPROVE OTHER
SIGNATURE(S):
ACTION OF AGENCY ON January 25, 2000 APPROVED AS RECOMMENDED X 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
Orlg: Redevelopment Agency ATTESTED January 25, 2004
cc: County Administrator PHIL BATCHELOR
County Counsel AGENCECRE ARY
Auditor-Controller
Community Development / ,
JK:ets BY , DEPUTY
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CONTRA COSTA COUNTY
REDEVELOPMENT AGENCY
Independent Auditor's Reports,
General-Purpose Financial Statements,
Required Supplementary Information,and
Combining and Account Group Statements
For the Fiscal Year Ended June 30, 1999
CONTRA COSTA COUNTY
REDEVELOPMENT AGENCY
For the Fiscal Year Ended June 30, 1999
Table of Contents
Page(s)
Independent Auditor's Report.......................... ........... ....... ................................................ ..............................I
General-Purpose Financial Statements:
Combined Balance Sheet-
All Governmental Fund Types and Account Group................................................ ........... ........... .................2
Combined Statement of Revenues,Expenditures and
Changes in Fund Balances-All Governmental Fund Types..................... .............. ........................................3
Notes to the General-Purpose Financial Statements...............I........... ......................11-......-.1............4- 10
Required Supplementary Information(Unaudited):
Disclosures about the Year 2000 Issue. ................-.......................... ................................................ ........ 11 - 12
Combining and Account Group Statements:
Capital Projects Funds:
CombiningBalance Sheet............. ......... ...................................................................................................13
Combining Statement of Revenues,Expenditures and
Changesin Fund Balances.............. .................................................. ........................................ ..14
Special Revenue Funds:
CombiningBalance Sheet.................................................................................................................................15
Combining Statement of Revenues,Expenditures and
Changesin Fund Balances(Deficit)............ ................ ..................._...............................-..........................16
Debt Service Funds:
CombiningBalance Sheet...................-...................-.......... ............................... ......... ............... ............17
Combining Statement of Revenues,Expenditures and
Changesin Fund Balances............................... ....................................... .....................................18
General Long-Term Obligations Account Group:
Statement of Changes in General Long-Tenn Obligations Account Group.....................................................19
Other Required Report:
Independent Auditor's Report on Compliance
and on Internal Control over Financial Reporting
Based on an Audit of General-Purpose Financial Statements
Performed in Accordance with Government Auditing Standards...............................................................20-21
Mt.Diablo Plaza
Partners 2175 N.California Boulevard
Kenneth A.Macias Suite 620
Ernest J.Gini Walnut Creek,CA 94596-3565
Kevin J.O'Connell
Macias,Gini&Company,.Le 925.274.0190
Certlfled Public Ac 0 malts 925.274.3819 FAX
wwwmaciasgini.com
Directors of the
Contra Costa County Redevelopment Agency
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying general-purpose financial statements of the Contra Costa County
Redevelopment Agency, California (Agency), a component unit of Contra Costa County, California, as of and for
the year ended June 30, 2999. 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 Standard's, issued by the Comptroller General of the United
States. Those standards require that we plan and perform 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, 1999, 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 November 2, 1999 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.
The required supplementary information listed in the table of contents is not a required part of the general-purpose
financial statements but is supplementary information required by the Governmental Accounting Standards Board.
We have applied certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However, we did not audit
the information and do not express an opinion on it. In addition,we do not provide assurance that the Agency is or
will become year 2000 compliant,the Agency's year 2000 remediation efforts will be successful in whole or in part,
or that parties with which the Agency does business are or will become year 2000 compliant.
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 stated in all material respects in relation to the general-purpose financial
statements taken as a whole.
,. ) . . (4 k,. OF
Certified Public Accountants
Walnut Creek,California
November 2, 1999 OFFICE LOCATIONS
Sacramento • Los Angeles • San Francisco Bari Area
2 �,
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Combined Balance Sheet
All Governmental Fund Types and Account Group
June 30, 1999
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 $ 38,976,558 $ 4,489,813 $ 1,824,730 $ - $ 45,291,201
Restricted cash and investments 4,055,000 - 4,597,705 - 8,752,705
Accrued investment income - - 29,235 - 29,235
Accounts receivable 125,813 - - - 126,813
Due from Contra Costa County 19,588 315 - - 19,903
Due from other funds 167,000 - - - 167,000
Prepaid items and deposits - 5,814 - - 5,814
Land held for resale 1,848,891 789,450 - - 2,638,351
Notes receivable - 2,993,085 - - 2,993,086
Other debits.
Amount available in debt service funds - - - 5,887,548 5,887,548
Amount to be provided for retirement
of long-term obligations - - - 51,324,072 51,324,072
Total assets and other debits $ 45,203,950 $ 8,279,488 $ 6,551,670 $ 57,211,620 $ 117,246,728
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 195,528 $ 6,757 $ 10,245 $ - $ 212,530
Due to Contra Costa County 405,991 16,106 210 422,307
Due to other funds - 167,000 - - 167,000
Accrued interest - - 653,667 - 653,667
Deferred revenue 123,750 2,993,086 - - 3,116,836
Advances from Contra Costa County 679,805 3,478,351 - 501,620 4,659,776
Bonds payable - - - 56,710,000 55,710,000
Total liabilities 1,405,074 6,661,300 664,122 57,211,620 65,942,116
Fund balances:
Reserved for:
Debt service - - 5,887,548 - 5,887,548
Encumbrances 129,517 - - - 129,517
Prepaid items and deposits - 6,814 - - 6,814
Land held for resale 1,848,891 789,460 - - 2,638,351
Unreserved:
Designated 41,820,468 3,976,202 - - 45,796,670
Undesignated(deficit) - (3,154,288) - - (3,154,288)
Total fund balances 43,798,876 1,618,188 5,887,548 - 51,304,612
Total liabilities and fund balances $ 45,203,950 $ 8,279,488 $ 6,551,670 $ 57,211,620 $ 117,246,728
See accompanying notes to the general-purpose financial statements.
2
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'o"
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, 1999
Governmental Fund Types Total
Capital Special Debt (Memorandum
Projects Revenue Service Only)
Revenues:
Property tax increment $ 3,149,015 $ 1,249,234 $ 1,847,916 $ 6,246,165
Aid from other governmental agencies 26,465 26,250 - 52,715
Use of money and property 1,176,620 84,962 260,214 1,521,796
Other revenue 64,374 - -- 64,374
Total revenues 4,416,474 1,360,446 2,108,130 7,885,050
Expenditures:
Current:
General administration 936,044 581 419 937,044
Fiscal agreement pass-throughs 700,623 - - 700,623
County administration fee 54,473 13,618 - 68,091
Operati6n and management of property 57,744 24,075 - 81,819
Capital outlay:
Purchase of property 96,605 380,478 - 477,083
Project improvements 1,774,704 1,606,023 3,380,727
Professional services 184,056 - - 184,056
Debt service:
Principal repayment 250,000 1,200,000 415,000 1,865,000
Advance refunding escrow - - 1,205,207 1,205,207
Interest and fiscal charges 656,138 178,595 1,628,909 2,463,642
Total expenditures 4,710,387 3,403,370 3,249,535 11,363,292
Deficiency of revenues
under expenditures (293,913) (2,042,924) (1,141,405) (3,478,242)
Other rinancing sources (uses):
Proceeds from advances 2,391 - - 2,391
Proceeds from issuance of bonds 23,671,081 2,950,000 17,411,700 44,032,781
Payment to refund bond escrow agent - - (13,415,577) (13,415,577)
Operating transfers in 159,221 161,305 320,526
Operating transfers out (159,221) (161,305) - (320,526)
Total other financing sources(uses) 23,514,251 2,947,916 4,157,428 30,619,595
Excess of revenues and other
financing sources over expenditures
and other financing uses 23,220,338 904,992 3,016,023 27,141,353
Fund balances, beginning of year 20,578,538 713,196 2,871,525 24,163,259
Fund balances, end of year $ 43,798,876 $ 1,618,188 $ 5,887,548 $ 51,304,612
See accompanying notes to the general-purpose financial statements.
3
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements
For the Fiscal Year Ended June 30, 1999
(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 County and Agency entered into a joint exercise of powers agreement dated April 7, 1992 establishing the
County of Contra Costa Public Financing Authority (the Authority). The Authority is also governed by the
Board of Supervisors, and as such, is an integral part of the County and Agency. Accordingly, all of the
Authority's debt activity relating to the Agency is blended within the accompanying general-purpose financial
statements. See the Long-Term Obligations note for debt issued by the Authority. The Authority's general-
purpose financial statements may be obtained from the Capital Facilities and Debt Management Office at 651
Pine Street, 6'Floor,Martinez,CA 94553.
The accompanying general-purpose financial statements are included as a blended component unit in the
County's General-Purpose Financial Statements.
The principal sources of funding for the Agency's activities are:
• Property tax revenue attributable to increases in assessed valuations in the project areas,
• Proceeds from issuance of debt,
• Advances and loans from the County,
• Aid from other governmental agencies,and
• Development fees for services provided to developers in the project areas.
(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 of Presentation—FundAccounfing
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.
Debt 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-Term Obligations Account Group accounts for the Agency's long-term obligations and
is expected to be financed with future tax increment,
4
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 1999
(b) Basis of Accounting
The Agency follows the modified accrual basis of accounting. On this basis, revenue is recorded when
cash is received except for revenue susceptible to accrual (that is, measurable and available to finance the
Agency's operations). Revenues considered susceptible to accrual include property taxes and interest
income. 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.
(d) Property Tax Increment
California Redevelopment Law provides a means for financing and refinancing redevelopment projects
based upon the allocation of taxes collected within a project area. The assessed valuation of a project area
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 area
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 area. Incremental property taxes are recognized as revenue when claimed and
available from local taxing authorities. Contra Costa County assesses, collects and apportions property
taxes as follows:
Secured Unsecured
Lien dates January 1 January 1
Levy dates January I January I
Due dates 50%on November I January 1
50%on February 1
Delinquent as of December 10(for November) August 31
April 10(for February)
'faxes are secured by liens on the property being taxed. The term "unsecured" refers to taxes on personal
property other than land and buildings. Supplemental property taxes are levied based on changes in
assessed values between the date of real property sales and construction and the next normal assessment
date.
(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.
5
,q '
c, fir'
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 1999
()} Budgetary Data
The budgets of the Agency are primarily tong-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.
(g) Unreserved---Designated Fund.balance
The Agency designates unreserved fund balances in all project areas for capital and housing projects,
except for the Pleasant Hill BART Special Revenue Fund as there is no available fund balance due to
liabilities exceeding its assets.
(h) Investments
The Agency records investment transactions on the trade date. Investments in nonparticipating interest-
earning investment 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.
(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.
(j) 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 consolidated financial information. Interfund eliminations
have not been made in the aggregation of this data.
(3) Cash and Investments
The Agency's cash and investments consist of the following at.lune 30, 1999:
Cash and investments $ 45,291,201
Restricted cash and investments 8,762,705
Total cash and investments $ 54,053,906
As permitted by the Government Code,the Agency directs the County Treasurer to make specific investments
separate from the County pool of investments. Statutes and bond indentures authorize the Agency to invest in
the State Treasurer's Local Agency Investment Fund(LAIF); obligations of the U.S. Treasury or its agencies;
negotiable certificates of deposit; bankers acceptances; commercial paper; mutual funds invested in U.S.
Government securities; and investment agreements in form and substance approved by the Trustee (including
certain guaranteed investment contracts).
The County Treasurer's investment pool,which encompasses its cash 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 cash pool is the same as the value of the cash pool shares.
6
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Nates to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 1999
The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The .Board consists of
five members as designated by State Statute. The value of the pool shares in LAIF which may be withdrawn is
determined on the amortized cost basis, which is different from the fair value of the Agency's position in the
pool.
As of June 30, 1999, the Agency's proportionate share of structured notes and asset-backed securities held by
the LAIF was$402,714 or 5.27%of the Agency's investment in LAIF. Information is not available on whether
the various mutual funds in which the Agency has invested, used, held, or wrote derivative financial products
during the year ended June 30, 1999.
A summary of the Agency's investments at June 30, 1999 is shown below. 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.
Carrying
Amount/Fair
Value
Category 1 investments:
U.S. Government securities $ 2,167,000
Uncategorized cash and investments:
Guaranteed investment contracts 29,928,747
Mutual funds 13,906,415
State Treasurer's Local Agency Investment Fund 7,641,641
County Treasurer's cash pool 410,103
Total cash and investments $54,053,906
Under the provisions of the tax allocation bond indentures, a portion of the proceeds were deposited in an
amount required to be held in reserve accounts by the fiscal agent as trustee. These reserve accounts are
reported in debt service funds. As of June 30, 1999, the amount held by the trustee was $4,697,705,which is
equal to or in excess of the amount required at that date.
During the year, proceeds from the issuance of the 1999 tax allocation bonds were deposited into an escrow
fund for the benefit of the Pleasant Hill BART Project Area. These funds are reported in a capital projects fund
and will be released to the Agency as certain tax increment to debt service ratios are met. Any funds not
released as of June 15, 2002, due to deficient tax increment, will be used to refund certain bonds. As of June
30, 1999,the amount held by the trustee was$4,065,000.
(4) Investments—Land Held 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.
During the year, the Pleasant Hill BART Project Area sold property with a net realizable value of$950,000 to
developers of the Coggins Square Housing Project. The Agency received$600,000 in cash,which was used to
repay a portion of the note payable to California Federal Savings, and a promissory note in the amount of
$350,000,which is secured by a deed of trust on the property.
7
�r
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Dotes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 1999
(5) Dotes Receivable
A summary of notes receivable,by project, in the Special Revenue Funds at June 30, 1999 is shown below.
Coggins Square Apartments $ 350,000
Parkway Estates 733,000
North Richmond Senior Housing Project 581,660
Golden Oak Manor 780,000
Oakley Main Street/Silver Oak Apartments 473,426
Rodeo Senior Housing Project 75,000
$ 2,993,086
(6) Advances from Contra Costa County
The $3,166,523 in advances from the County to the Pleasant Hill BART Special Revenue Fund was originally
made for the purchase of land,and increased during the year by accrued interest and a new loan of$600,000 for
the partial repayment of the note payable to California Federal Savings. Repayment of these advances will be
made when sufficient tax increment funds become available. The advance bears interest at 3%per annum.
The $311,828 advance from the County to the North Richmond Special Revenue Fund was made for specific
project costs related to the North Richmond Senior Center. Repayment of this advance will be made when
sufficient tax increment funds become available. The advance bears interest at 3%per annum.
The $679,805 advance from the County to the North Richmond Capital Projects Fund was made for specific
project costs related to 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, 1999
represent$501,620 received to finance operations and improvements not associated with specific projects. This
balance includes unpaid interest on those advances. Repayment of these advances will be made when sufficient
tax increment funds become available. During the year, unpaid accrued interest of$2,391 was added to the
outstanding balance of the North Richmond Capital Projects Fund advance and a repayment of$250,000 was
made from the Pleasant Hill BART 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) Long-Term Obligations
Changes in long-term obligations for the year ended June 30, 1999 is presented below:
Balance, Balance,
July 1, 1998 Additions Retirements June 30, 1999
Advances from County $ 749,229 $ 2,391 $ 250,000 $ 501,620
Notes Payable 1,200,000 - 1,200,000 -
Tax Allocation Bonds:
1992 Series A 21,600,000 - 13,740,000 7,860,000
1995 Series A 1,605,000 - 25,000 1,580,000
1995 Series B 2,695,000 - 40,000 2,655,000
1999 Series A - 44,615,000 - 44,615,000
Total $27,849,229 $44,617,391 $ 15,255,000 $57,211,620
8
C, 1
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Dotes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 1999
During the year, the Agency repaid the $1,200,000 note payable to California Federal Savings. The note was
originally used to purchase the property,which was sold during the year as part of the Coggins Square Housing
Project in the Pleasant Hill BART Special Revenue Fund. The note was repaid with proceeds from the sale of
land,together with a$600,000 advance borrowed from the County.
On May 15, 1992, the Authority, on behalf of 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 Association of Bay Area Governments, on behalf of the Agency, issued $1,645,000 in
Tax Allocation Bonds, Series A, with an average interest rate of 6.41% to fund expenditures for the North
Richmond Project Area. Principal is paid annually on August 1 and matures on August 1,2025,
On December 21, 1995 the Authority, on behalf of the Agency, issued $2,735,000 in Tax Allocation Bonds,
Series B,with an average interest rate of 6.66%to fund expenditures for the Bay Point Project Area. Principal
will be paid annually beginning August 1, 1997 and matures on August 1,2025.
On May 1, 1999, the Authority, on behalf of the Agency, issued $44,615,000 of Tax Allocation Bonds with
interest rates ranging from 4.00%to 5.125%to finance the acquisition and construction of certain public capital
improvements throughout the Agency. The Agency will use proceeds of bonds to (a) finance certain
redevelopment activities, (b) to advance refund $13,390,000 of the 1992 Tax Allocation Revenue Bonds, (c)
fund reserve funds, (d)capitalize interest on certain loans, and(e)pay the costs of issuing the bonds. The net
proceeds of the new debt amounted to $44,032,781, which included an original issue discount of$582,219.
The portion of the proceeds pertaining to the refunding of the 1992 Tax Allocation Revenue Bonds was used to
purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow
agent to provide for the debt service payments on the 1992 Tax Allocation Bonds through August 1,2002. As
a result, this portion of the 1992 Tax Allocation Bonds is considered to be defeased, and the corresponding
liability for these bonds has been removed from the general long-term obligations account group. The Agency
completed the refunding increasing its total debt service over the next 30 years by $2,379,742 and generating
an economic gain of$1,154,247. Principal is due annually each August 1 and matures on August 1,2014.
On June 30, 1999, the 1992 Tax Allocation Bonds considered defeased have an outstanding balance of
$13,390,000.
The schedule of debt service requirements to maturity for the bonds payable, excluding advances from Contra
Costa County,is presented as follows:
June 30:
2000 $ 3,066,596
2001 3,830,714
2002 3,838,496
2003 3,906,882
2004 3,910,870
Thereafter 96,719,090
Total debt service 115,272,648
Less amounts representing interest (58,562,648)
Total principal outstanding $ 56,710,000
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.
9
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 1999
(8) Deficit Fund Balance
At June 30, 1999,the Pleasant Hill BART Special Revenue Fund had a deficit fund balance of$2,554,288.This
deficit is expected to be cured through the collection of future tax increment revenue.
(9) 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, 1999, the Agency paid approximately $1,939,581 to the County for
project improvements and administrative services incurred by the Agency.
(10)Due To/From Other Funds
At June 30, 1999, the North Richmond Capital Projects Fund loaned$167,000 to the North Richmond Special
Revenue Fund to cover project improvements. The loan is short-term and does not bear interest.
(11)Fiscal Agreement Pass-throughs
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 1999, the County passed
through increments totaling$700,623 directly to these agencies.
(12)Commitments and Contingencies
The Agency is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. 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, 1999, 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.
Additional disclosures required under GASB Statement Nos. 10 and 30 and information regarding the County's
insurance is presented in the notes to the County's general-purpose financial statements,which can be obtained
from the Auditor-Controller's Office,625 Court Street,Martinez,CA 94553-1282.
10
REQUIRED SUPPLEMENTARY INFORMATION(UNAUDITED)
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Required Supplementary Information(Unaudited)
For the Fiscal Year Ended June 30, 1999
Disclosures about the Year 2000 Issue
Many computer hardware and software systems were designed to record the date year using only the one's and
ten's digits and do not record the century. Thus, the year 1900 and the year 2000 are considered by these
systems to be the same year, On January 1, 2000, these systems that use the date in their operation or
calculations will fail to function or will provide erroneous or unreliable results which could cause a disruption
of government services. In addition to equipment normally considered or associated with computers, many
other types of equipment contain and depend upon microprocessors for their function. A few examples of this
(Imbedded Chip)technology include building access, climate control and security systems, irrigation systems,
communications systems and medical equipment.
Since 1995, the County has been vigorously pursuing a program to identify and fix all affected systems and
equipment. The County's multifaceted program includes remediation in the data centers, wide area network,
local area networks, imbedded chips, legal due diligence, business and disaster resumption and recovery
planning, and community awareness. The County had a large commitment of staff time and the cost of
replacement equipment and software, however as of June 30, 1999, the County had no contracts with vendors
to assist in the Year 2000 remediation project.
Data center systems were remediated, tested, and placed back into production prior to April 1, 1999. The
County has been using these systems as "Year 2000 compliant" since that date, and is in the final stages of
testing 100 external interfaces with the State of California's applications. This includes routines that will bridge
both two and four digit date data between the County's compliant systems and non-compliant systems. Wide
Area Network infrastructure components were completed by August of 1999, and have been in full production
for four months prior to January 1,2000.
The table below summarizes the status of the County's Year 2000 remediation project as of June 30, 1999. The
areas being addressed are on the left and are defined below. Across the top are the four stages of the Year 2000
remediation process as defined in the GASB Technical Bulletin No.98-1.
Validation
Awareness Assessment Remediation &Testing
County Data Center Complete Complete Complete Complete
LAN 1 Desktop
Computers Complete Complete Complete In Progress
Imbedded Chips Complete Complete In Progress In Progress
Due Diligence Complete Complete In Progress In Progress
Community
Awareness Complete Complete In Progress In Progress
County Data Center: Mainframe and minicomputer systems that are maintained at the Department of
Information Technology's data center. Most are large-scale applications covering areas of criminal justice,
property taxes, general government, finance, human resources, etc. These systems were tested by an
independent contractor (Alydaar Corporation) in January and February of 1999. They are certified with an
overall error rate of"one seven thousandth of one percent" per 100,000 lines of COBOL code and JCL.
11
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Required Supplementary Information(Unaudited)
For the Fiscal Year Ended June 30, 1999
Disclosures about the Year 2000 Issue—(Continued)
LAN/Desktop Computer: Local area networks(LANs)are networks of desktop computers and in some cases
a minicomputer that are maintained by individual County departments. Some stand-alone desktop computers
are maintained by individual County departments which are also used for important applications.
Imbedded Chips: Includes any other equipment that contains an imbedded microprocessor. The General
Services Department is coordinating with the other departments to address this equipment.
Due Diligence: This is the County's process of documenting its planning, methodology, progress, results and
present status of the Year 2000 remediation project, This is done through various means both electronically
and on paper. This also includes related programs of the Office of Emergency Services, Environment Health,
County Fire, County Sheriff,private business organization,etc.
Community Awareness: This is the County's program for communicating a proactive,positive stance with the
entire community regarding the County's readiness to deal with the Year 2000 issue.
Since 1996,the County has been recognized as a national public sector leader with respect to Year 2000 issues.
County senior management and County Year 2000 managers have spent more than two years authoring
technical and business issue articles, appearing in government sponsored videos, providing seminars,
developing web-based technical and business assistance to other public and private sector organizations.
The County has been very proactive and positive about discussing pertinent Year 2000 issues within the local
business and government community. The County's Chief Information Officer(CIO)co-chairs the California
State Association of CIO's Year 2000 Intergovernmental Task Force with the state CIO, The County's CIO has
been selected as an advisory board member of the governor's"Follow the Sun" Year 2000 water project.
The County expects the Validation and Testing Stages of all critical systems to be completed by December
1999. However, because of the unprecedented nature of the Year 2000 issue and its effects, the success of
related remediation efforts will not be fully determinable until the Year 2000 and thereafter. Therefore,
management does not guarantee that the County is or will be fully Year 2000 compliant, that the County's
remediation efforts will be successful in whole of in part, or that parties with whom the County does business
will be fully prepared by December 1999.
12
COMBINING AND ACCOUNT GROUP STATEMENTS
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY ,r''d,
Capital Projects Funds
Combining Balance Sheet
Tune 30, 1999
Pleasant
Hill Bay North
BART Point Richmond Oakley Rodeo Total
ASSETS
Cash and investments $ 20,418,244 $6,033,094 $2,594,434 $7,651,473 $2,279,413 $38,976,658
Restricted cash and investments 4,065,000 - - - - 4,065,000
Accounts receivable 126,250 - - 563 - 126,813
Due from Contra Costa County - - - - 19,588 19,588
Due from other funds - - 167,000 - - 167,000
Land held for resale - - - 1,848,891 - 1,848,891
Total assets $ 24,609,494 $6,033,094 $2,761,434 $9,500,927 $2,299,001 $45,203,950
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and
accrued liabilities $ 20,800 $ 96,105 $ 64,480 $ 10,285 $ 3,858 $ 195,528
Due to Contra Costa County 48,510 9,823 332,385 15,273 - 405,991
Deferred revenue 123,750 - - - - 123,750
Advances from Contra Costa County - - 679,805 - - 679,805
Total liabilities 193,060 105,928 1,076,670 25,558 3,858 1,405,074
Fund balances:
Reserved for:
Encumbrances 920 13,621 104,568 304 10,104 129,517
Land held for resale - - - 1,848,891 - 1,848,891
Unreserved:
Designated 24,415,514 5,913,545 1,580,196 7,626,174 2,285,039 41,820,468
Total fund balances 24,416,434 5,927,166 1,684,764 9,475,369 2,295,143 43,798,876
Total liabilities and fund balances $ 24,609,494 $6,033,094 $2,761,434 $9,500,927 $2,299,001 $45,203,950
13
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY / s'
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended June 30, 1999
Pleasant
Hill Bay North
BART Point Richmond Oakley Rodeo Total
Revenues:
Property tax increment $ 1,110,626 $ 574,439 $ 267,828 $ 830,110 $ 366,012 $ 3,149,015
Aid from other governmental agencies - 14,466 10,500 - 1,499 26,465
Use of money and property 781,100 176,613 26,914 169,524 22,469 1,176,620
Other revenue 64,374 - - - - 64,374
Total revenues 1,956,100 765,518 305,242 999,634 389,980 4,416,474
Expenditures:
Current:
General administration 284,102 168,871 142,756 175,410 164,905 936,044
Fiscal agreement pass-throughs 162,788 188,838 - 276,136 72,861 700,623
County administration fee 26,270 8,148 5,054 11,234 3,767 54,473
Operation and
management of property 28,016 4,329 4,123 17,035 4,241 57,744
Capital outlay:
Purchase of property - - - - 96,605 96,605
Project improvements 329,824 807,351 531,917 105,612 - 1,774,704
Professional services 22,050 76,815 15,242 26,216 43,733 184,056
Debt service:
Principal repayment 250,000 - - - - 250,000
Interest and fiscal charges 314,529 116,326 66,802 110,748 47,733 656,138
Total expenditures 1,417,579 1,370,678 765,894 722,391 433,845 4,710,387
Excess (deficiency)of revenues
over(under) expenditures 538,521 (605,160) (460,652) 277,243 (43,865)
(293,913)
Other financing sources(uses):
Proceeds from advances - - 2,391 - - 2,391
Proceeds from issuance of bonds 12,436,676 2,977,525 1,921,912 4,219,446 2,115,522 23,671,081
Operating transfers out (107,315) - (51,906) - (159,221)
Total other financing sources (uses) 12,329,361 2,977,525 1,872,397 4,219,446 2,115,522 23,514,251
Excess of revenues and other
financing sources over expenditures
and other financing uses 12,867,882 2,372,365 1,411,745 4,496,689 2,071,657 23,220,338
Fund balances, beginning of year 11,548,552 3,554,801 273,019 4,978,680 223,486 20,578,538
Fund balances, enol of year $ 24,416,434 $5,927,166 $ 1,684,764 $9,475,369 $2,295,143 $ 43,798,876
14
�f
CONTRA COSTA. COUNTY REDEVELOPMENT AGENCY
Special Revenue Funds
Combining Balance Sheet
June 30, 1999
Pleasant
.Hill Bay North
BART Point Richmond Oakley Roden Total
ASSETS
Cash and investments $ 11,920 $2,587,534 $ 610,968 $ 351,332 $ 928,059 $4,489,813
Due from Contra Costa County 315 - - - - 315
Prepaid items and deposits - - 6,814 - - 6,814
Land held for resale 600,000 189,460 - - - 789,460
Notes receivable 350,000 - 1,314,660 1,253,426 75,000 2,993,086
Total assets $ 962,235 $2,776,994 $ 1,932,442 $ 1,604,758 $ 1,003,059 $8,279,488
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and
accrued liabilities $ _ $ 100 $ - $ - $ 6,657 $ 6,757
Due to Contra Costa County - 16,033 21 51 1 16,106
Deferred revenue 350,000 - 1,314,660 1,253,426 75,000 2,993,086
Due to other funds - - 167,000 - - 167,000
Advances from Contra Costa County 3,166,523 - 311,828 - - 3,478,351
Total liabilities 3,516,523 16,133 1,793,509 1,253,477 81,658 6,661,300
Fund balances:
Reserved for:
Land held for resale 600,000 189,460 - - - 789,460
Prepaid items and deposits - - 6,814 - - 6,814
Unreserved:
Designated - 2,571,401 132,119 351,281 921,401 3,976,202
Undesignated deficit (3,154,288) - - - - (3,154,288)
Total fund balances (deficits) (2,554,288) 2,760,861 138,933 351,281 921,401 1,518,188
Total liabilities and fund balances $ 962,235 $2,776,994 $ 1,932,442 $ 1,604,758 $ 1,003,059 $8,279,488
15
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit)
For the Fiscal Year Ended June 30, 1999
Pleasant
Hill Bay North
BART Point Richmond Oakley Rodeo Total
Revenues:
Property tax increment $ 578,328 $ 220,716 $ 106,100 $ 252,587 $ 91,503 $ 1,249,234
Aid from other governmental agencies - 26,250 - - - 26,250
Use of money and property 949 49,433 9,611 22,435 2,534 84,962
Total revenues 579,277 296,399 115,711 275,022 94,037 1,360,446
Expenditures:
Current:
General administration 74 180 114 145 68 581
County administration fee 6,568 2,037 1,263 2,809 941 13,618
Operation and
management of property - - 23,975 16 84 24,075
Capital outlay:
Purchase of property - 11,000 - 272,808 96,670 380,478
Project improvements 911,000 74,903 564,692 - 55,428 1,606,023
Debt service:
Principal repayment 1,200,000 - - - 1,200,000
Interest and fiscal charges 171,125 - 7,470 - - 178,595
Total expenditures 2,288,767 88,120 597,514 275,778 153,191 3,403,370
Excess (deficiency) of revenues
over(under)expenditures (1,709,490) 208,279 (481,803) (756) (59,154) (2,042,924)
Other financing sources(uses):
Proceeds from issuance of bonds - 1,495,000 545,000 - 910,000 2,950,000
Operating transfers in 107,315 - 51,906 - - 159,221
Operating transfers out - (77,106) (39,143) (45,056) - (161,305)
Total other financing sources(uses) 107,315 1,417,894 557,763 (45,056) 910,000 2,947,916
Excess(deficiency)of revenues and other
financing sources over(under)
expenditures and other financing uses (1,602,175) 1,626,173 75,960 (45,812) 850,846 904,992
Fund balances (deficit),beginning of year (952,113) 1,134,688 62,973 397,093 70,555 713,196
Fund balances (deficit), end of year $(2,554,288) $2,760,861 $ 138,933 $ 351,281 $ 921,401 $ 1,618,188
16
CONTRA COSTA COUNTY REDEVELOPMENT AGENCYs-?7
Debt Service Funds
Combining Balance Sheet
June 30, 1999
Pleasant
Hill Bay North
BART Point Richmond Oakley Rodeo Total
ASSETS - - -
Cash and investments $ 908,045 $ 593,365 $ 146,492 $ 169,678 $ 7,150 $ 1,824,730
Restricted cash and investments 2,490,334 964,611 510,849 507,211 224,700 4,697,705
Accrued investment income 15,046 6,059 3,078 3,501 1,551 29,235
Total assets $ 3,413,425 $ 1,564,035 $ 660,419 $ 680,390 $ 233,401 $6,551,670
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and
accrued liabilities $ 2,049 $ 2,049 $ 2,049 $ 2,049 $ 2,049 $ 10,245
Due to Contra Costa County 35 67 64 44 - 210
Accrued interest 365,983 133,578 71,165 57,914 25,027 653,667
Total liabilities 368,067 135,694 73,278 60,007 27,076 664,122
Fund balances:
Reserved for debt service 3,045,358 1,428,341 587,141 620,383 206,325 5,887,548
Total liabilities and fund balances $ 3,413,425 $ 1,564,035 $ 660,419 $ 680,390 $ 233,401 $6,551,670
17
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, 1999
Pleasant
Hill Bay North
BART Point Richmond Oakley Rodeo Total
Revenues:
Property tax increment $ 1,202,685 $ 308,424 $ 156,573 $ 180,234 $ - $ 1,847,916
Use of money and property 153,518 55,566 12,453 32,025 6,652 260,214
Total revenues 1,356,203 363,990 169,026 212,259 6,652 2,108,130
Expenditures:
Current:
General administration 122 116 112 69 - 419
Debt service:
Principal repayment 246,855 79,375 42,500 46,270 - 4.15,000
Advance refunding escrow 645,737 213,422 95,023 251,025 - 1,205,207
Interest and fiscal charges 923,591 333,546 173,209 173,536 25,027 1,628,909
Total expenditures 1,816,305 626,459 310,844 470,900 25,027 3,249,535
Deficiency of revenues
over expenditures (40,102) (262,469) (141,818) (258,641) (18,375) (1,141,405)
Other financing sources (uses):
Proceeds from issuance of bonds 8,970,744 3,445,571 1,447,160 3,323,525 224,700 17,411,700
Payment to refund
bond escrow agent (7,137,004) (2,396,961) (1,065,147) (2,816,465) - (13,415,577)
Operating transfers in - 77,106 39,143 45,056 - 161,305
Total other financing sources(uses 1,833,740 1,125,716 421,156 552,116 224,700 4,157,428
Excess of revenues and other
financing sources over
expenditures and other uses 1,373,638 863,247 279,338 293,475 206,325 3,016,023
Fund balances, beginning of year 1,671,720 565,094 307,803 326,908 - 2,871,525
Fund balances, end of year $3,045,358 $ 1,428,341 $ 587,141 $ 620,383 $ 206,325 $ 5,887,548
18
X71
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Statement of Changes in General Long-Term Obligations Account Group
For the Fiscal Year Ended June 30, 1999
Balance Balance
July 1, 1998 Additions Deletions .lune 30, 1999
Pleasant Hill BART:
1992 Tax Allocation Bonds $ 15,234,480 $ - $ 7,374,480 $ 7,860,000
1999 Tax Allocation Bonds - 21,675,000 - 21,675,000
Advance from Contra Costa County 664,337 - 250,000 414,337
Note payable-Cal Fed 1,200,000 - 1,200,000 -
17,098,817 21,675,000 8,824,480 29,949,337
Stay Paint:
1992 Tax Allocation Bonds 2,430,000 - 2,430,000 -
19958 Tax Allocation Bonds 2,695,000 - 40,000 2,655,000
1999 Tax Allocation Bonds - 8,030,000 - 8,030,000
5,125,000 8,030,000 2,470,000 10,685,000
North Richmond:
1992 Tax Allocation Bonds 1,080,000 - 1,080,000 -
1995A Tax Allocation Bonds 1,605,000 - 25,000 1,580,000
1999 Tax Allocation Bonds - 3,970,000 - 3,970,000
Advance from Contra Costa County 84,892 2,391 - 87,283
2,769,892 3,972,391 1,105,000 5,637,283
Oakley:
1992 Tax Allocation Bonds 2,855,520 - 2,855,520 -
1999 Tax Allocation Bonds - 7,645,000 - 7,645,000
2,855,520 7,645,000 2,855,520 7,645,000
Rodeo:
1999 Tax Allocation Bonds - 3,295,000 - 3,295,400
Total long-term obligations $ 27,849,229 $ 44,617,391 $ 15,255,000 $ 57,211,620
19
;1
OTHER REQUIRED REPORT
,,.,� Mt.Diablo Plaza
Partners 2175 N.California boulevard
NAAKenneth A.Macias Suite 620
Ernest J.Gini Walnut Creek,CA 94596-3565
Devin J.O'Connell
Macias,Gini&Company LLr 925.274.0190
C art l flail Public Accountants
925.274.3819 Fax
www.maciasgini.com
Directors of the
Contra Costa County Redevelopment Agency
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL-PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
We have audited the general-purpose financial statements of the Contra Costa County Redevelopment Agency,
California(the Agency), a component unit of the County of Contra Costa, California, as of and for the year ended
June 30, 1999, and have issued our report thereon dated November 2, 1999. 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 and
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 for Compliance Audits of California Redevelopment Agencies, issued by the State
Controller and is interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of
California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the
California Society of Certified Public Accountants. 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 employees 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.
OFFICE LOCATIONS
Sacramento + Los Angeles • San Francisco Say Area
20
This report is intended solely for the information and use of the members of the Agency's Board of Directors,
management, and the State Controller and is not intended to be and should not be used by anyone other than these
specified parties.
-YYA OX.4 .6#.*� 4 C,
Certified Public Accountants
Walnut Creek,California
November 2, 1999
21