HomeMy WebLinkAboutMINUTES - 01152002 - C.96 Contra
Costa
TO: REDEVELOPMENT AGENCY (aunty
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FROM: John Sweeten
Executive Director
DATE: January 15, 2002
SUBJECT: Audited Financial Report
SPECIFIC REQUESTS) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ACCEPT the Fiscal Year 2001 Audited Financial Report prepared by Macias, Gini, and
Company.
FISCAL IMPACT
None.
BACKGROUND
The Agency is required to complete an annual independent audit of its financial statements.
The independent auditor, Macias, Gini, and Company, has issued its report and an unqualified
opinion on the Agency's compliance with generally accepted accounting standards.
CONTINUED ON ATTACHMENT: YES SIGNATURE: f
xr
._,.A,,n-RECOIVIMENDA71ON OF EXECUTIVE DIRECTOR / ECOMM N`DATION OF ENCY
COMMITTEE APPROVE OTHER
SIGNATURE(S): '
ACTION OF AGENJ6 ON January 15, 2002 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 ATTESTEDajanusry 15, 2002
prig: Redevelopment
cc: County Administrator's Office JOHN SWEETEN
County Counsel AGENCY SECRETARY
Auditor-Controller
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BY , DEPUTY
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W:RDA.BoardOrder. 1 . 15 . 02 .auditedfinancial .rpt .
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CONTRA COSTA COUNTY
REDEVELOPMENT AGENCY
Independent Auditor's Reports,
General-Purpose Financial Statements and
Combining and Account Group Statements
For the Fiscal Year Ended June 30, 2001
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CONTRA COSTA COUNTY
REDEVELOPMENT AGENCY
For the Fiscal Year Ended June 30`200l
Table mfContents
Independent Auditor's Report.... ..................... ............................................................. ........................ ..............
..I
General-Purpose Financial Statements:
Combined Balance Sheet—All Governmental Fund Types,
Expendable Trust Fund and Account Group....................................... .......... ................. ............. __........2-3
Combined Statement ofRevenues,Expenditures and
ChangeoboBundBalancea-ADGovernmonta Fond Types and
ExpendableTrust Fund............................. ...................... ....................................................... .........................4
Notes to theGeneral-Purpose Financial Statements..............--.......................................................... .........5 - 12
Combining and Account Group Statements:
Capital Projects Funds:
CombiningBalance Shcet—.......................—..— ........ ...................... .............................................................l3
Combining' Stutementcf Revenues, Expenditures and
Changes ioFund Balances............—.— .................................................. --............... ............................... l4
Special Revenue Funds:
CombiningBalance Sheet......................................................... ................................. —. .................... ..........15
Combining Statement ofRevenues,Expenditures and
Changes toFund Balances —......................... ........................ ......................... ......... ......... ..........1d
Debt Service Funds:
CombiningBalance Sheet..........................—. ............. ..................................................................................I7
Combining Statement of Revenues,Expenditures and
ChangesiuFund Balances..... .......................... ........... ................... —.......... .............................................. 18
General Account Group:
Statement of ChangesboGeneral Long-Term Obligations Account Group..................--......... ....................l9
Other Report:
Independent Auditor's Report ooCompliance
and onInternal Control over Financial Reporting
Based mzaoAudit ofGeneral-Purpose Financial Statements
PecforzrediuAouozdmouo-witbGavarnmentAuditing Standards..........--....... —.............................. ..............20
Partne) Mt. Diablo Plaza
# Kennetiz A. Macias,Niztnagirg Partner 2175 N.California Boulevard
........... Ernest J.Gini Suite 620
Kevin i.O'Connell Walnut Creek,CA 94596-3565
Macias, in &Co an L P
Richa:ci A.Green 92'5.2-74.0190
Cettlttad Pupltc RCcountants and
Mansgamont Consultants fan A. Rosati
925.274.3319 Fa,x
fames V.Godsev
www.mac.iasgrruxoin
To the Board of Directors of the
Contra Costa County Redevelopment Agency
Martinez, California
DEPENDENT AUDITOR'S REPORT
We have audited the accompanying general-purpose financial statements of the Centra Costa County Redevelopment
Agency, (the Agency), a component unit of Contra Costa County, California, as of and for the year ended June 30,
2001, as listed in the table of contents. 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 auditing standards generally accepted in the United States of America
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 plana 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 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
uncial position of the Agency as of June 30, 2001, and the results of its operations for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing standards, we have also issued our report dated November 2, 2001 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. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in considering
the results of our audit.
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 f
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.
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Walnut Creek,California
November 2,2001
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'CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Types and Expendable'frust Fund
For the Fiscal Year Ended June 30, 2001
Fiduciary Fund
Governmental Fund Types Type
Oakley Total
Capital Special Debt Expendable (Memorandum
Projects Revenue Service - Trust Fund Only)
Revenues: -
Property tax increment $ 2,833,222 $ 1,399,852 $ 2,766,184 $ - $ 6,999,258
Aid from other governmental agencies 353,724 140,594 - - 494,328
Intergovernmental revenue - - - 9,196,643 9,196,643
Use of money and property 2,394,922 291,311 397,606 398,554 3,482,393
Other revenue 248,722 - - 532,955 782,677
Total revenues 5,830,590 1,831,757 3,163,790 10,128,152 20,954,289
Expenditures: - -
Current:
General administration 768,361 1,243 1,127 24,708 795,439
Fiscal agreement passthroughs 574,071 - - - 574,071
County administration fee 56,400 14,100 - - 70,500
Operation and management of property 18,634 - - - 18,634
Capital outlay: -
Project improvements 913,543 1,783,063 - - 2,696,606
Relocation and acquisition - 614,843 - - 614,843
Planning,survey, and design 310,347 - - - 310.347
Professional services 225,285 - - - 225,285
Debt service:.
Principal repayment 164,337 - 665,000 125,000 9544,337
Interest 23,310 83,810 2,595,267 217,458 2,919,845
Intergovernmental - 8,424,765 132,058 639,820 2,799,174 11,995,817
Total.expenditures 11,479,053 2,629,117 3,901,214 3,166,340 21,175,724
Excess(deficiency)of revenues
over(under)expenditures (5,648,463) (797,360) (737,424) 6,961,812 (221,435)
Other financing sources(uses):
Operating transfers in 56,408 - 649,594 - 706,002
Operating transfers out (464,645) (241,357) - - (706,002)
Total other financing sources(uses) (408,237) (241,357) 649,594 -
Excess(deficiency)of revenues and i -
other financing sources over(under)
expenditures and other financing uses _ (6,056,700) (1,038,717) (87,830) 6,961,812 (221,435)
Fund balances,beginning of year, as previously
reported 43,485,122 1,841,772 5,620,916 - 50,947,810
Prior period adjustment - - (87,283) - (87,283)
Fund balances, beginning of year, as restated 43,485,122 1,841,772 5,533,633 - 50,860,527
Fund balances, end of year $ 37,428,422 $ 803,055 $ 5,445,803 $ 6,961,812 $ 50,639,092
See accompanying notes to the general-purpose financial statements.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements
For the Fiscal Year Ended June 30, 2001
(1) Reporting Entity
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 nate for debt issued by the Authority.
The accompanying general-purpose financial statements are included as a blended component unit in the
County's general-purpose financial statements.
As of June 30, 2001, the Agency consists of four project areas: Pleasant Hili BART; Bay Point; North
Richmond; and Rodeo. Effective July 1, 2000, the Agency entered into a Jurisdictional Transfer Agreement
(JTA) with the City of Oakley Redevelopment Agency (Oakley RDA), which provides that Oakley RDA take
over the operations of the Oakley Project Area. The JTA provides that the Oakley RDA will have all the rights,
powers and responsibilities provided in the California Redevelopment Law with respect to the Oakley Plan and
Project Area. In addition, the Oakley RDA will assume all debts and obligations of the Agency in connection
with the Oakley Plan and Project Area, including but not limited to the Agency's 1)Debt Obligations; 2) Lean
Agreement, 3) Continuing Disclosure Certificate, 4) Pass-through Agreements, and 5) Oakley Real Property,
Agreement.
The 1999 Tax Allocation Bonds issued by the Authority included proceeds for the Oakley Project Area. This
debt will remain a debt of the Authority and the Agency will continue to report the debt reserves for these bonds
and unspent bond proceeds for the Oakley Project Area,within the expendable trust fund. The JTA requires that
the Oakley RDA request from the Agency approval for all unspent bond proceeds for the Oakley Project Area.
The Agency may only disapprove a request if it determines that the expenditures of the requested fiends are not
permitted under the loan agreement, the California Redevelopment Law, or any other state or federal law
applicable to the expenditure. A portion of the Oakley Project Area tax increment is withheld by the County and
paid to the Agency's expendable trust fund for the Oakley RISA portion of the debt obligation for the 1999 Tax
Allocation.Bonds.
The Agency established an expendable trust fund to account for any activity related to the Oakley Project Area.
As a result of the JTA, net assets related to the Oakley Project Area, totaling $9,196,643, were treated as
intergovernmental expenditures in the Oakley Capital Projects, Special Revenue and Debt Service Funds and as
intergovernmental revenues in the Expendable Trust Fund.
The following is a brief description of disbursements/transfers made to the Oakley RDA from the Expendable
'frust Fund during the year:
Cash $ 950,283
Land(previously reported as land held for resale) 1,848,891
Total disbursements/transfers $ 2,799,174
In addition, the Agency transferred to the City of Oakley's Redevelopment Agency long-term notes receivable in
the amount of$3,053,426.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2001
(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) Pronouncements Implemented During the Current Year
Governmental Accounting Standards Board Statement(GASB)No. 33
The Agency implemented GASB Statement No, 33,Accounting and Financial Reporting for Nonexchange
Transactions, during the current year. There was no significant impact as a result of the implementation,
and accordingly,a restatement of begiming fund balance was not necessary.
(b) Pronouncements to be Implemented in Future Years
GASB Statement Nos.34 and 37
In June 1999 and in. June 2001, the GASB issued Statement No. 34, Basic Financial Statements - and
Management's Discussion and Analysis -for State and Local Governments, and Statement No. 37, Basic
Financial Statements - and Management's Discussion and Analysis -for State and Local Governments:
Omnibus. These statements establish new financial reporting requirements for state and local governments
throughout the United States. When implemented, it will create new information and will restructure much
of the information that governments have presented in the past. The Agency is in the planning stages and
anticipates various complex analyses to be required before the full impact of certain financial statements can
be estimated.
GASB Statement No.38
In June 2001, the GASB issued Statement No. 38, Certain Financial Statement..Note Disclosures. This
statement modifies, adds and deletes various not disclosure requirements. Those requirements address
disclosure requirements for revenue recognition policies, actions taken in response to legal violations, debt
service requirements, variable-rate debt,receivable and payable balances, interfund transfers and balances,
and short-term debt.
GASB Statements Nos. 34, 37 and 38 are required to be implemented concurrently for the fiscal year
ending June 30,2002.
(c) ,iasis of 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
elfbalancing accounts that comprise its assets, liabilities, fund balance, revenues and expenditures. The
following funds and account group are used by the Agency.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2001
Governmental.Fund Types:
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.
The Expendable Trust Fund (a Fiduciary Fund Type) is used to account for the assets held by the
Agency in a trustee capacity for the City of Oakley Redevelopment Agency. The expendable trust fund
is accounted for in essentially the same manner as governmental fund types.
General Long-Term Obligations Account Croup accounts for the Agency's long-term obligations and
is expected to be financed with future tax increment.
(d) 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,
intergovernmental revenues, 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.
9
(e) 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. s
{f} Property Tax Increment
California Redevelopment Law provides a means for financing and refinancing redevelopment projects 1
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 REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2001
Contra Costa County assesses, collects and apportions property taxes as follows:
Secured Unsecured
Lien dates January 1 January 1
Levy dates January 1 January I
Due dates 50%on November 1 January 1
50%on February 1
Delinquent as of December 10(for November) August 31
April 10(for February)
Taxes 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.
(g) 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.
(h) Budgetary Data
The budgets of the Agency are primarily long-term project-length budgets that 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) 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. The unreserved fund balance in the Expendable Trust Fund is designated for future
capital projects to be funded with the unspent bond proceeds of the Oakley Project Area. tP
(} 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.
(k) Land held far resale
Land acquired by the Agency for future sale is capitalized at cast. 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.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2001
(l) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America 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.
(m) 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.
(n) .Prior Period Adjustment
The Agency decreased the North Richmond Debt Service Fund's beginning fund balance and the reported
amount in the General Long Term Obligations Account Group in an amount of$87,283 to recategorize the
outstanding balance of the advance from the County made in prior fiscal years.
(3) Cash and Investments
The Agency's cash and investments consist of the following at June 30,2001:
Cash and investments $ 51,173,762
Restricted cash and investments 4,969,814
Total cash and investments $ 56,143,576
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 C
the Treasury Oversight Committee, as required by the California Goverment 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.
The Local Investment Advisory Board (Board) has oversight responsibility for LAIR The Board consists of
five members as designated by State Statute. The value of the pool shares in LAID that 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, 2001, the Agency's proportionate share of structured notes and asset-backed securities held by
the LAIF was $683,629 or 4.506%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 30,2001.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2041
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 1 includes investments that are insured or registered, or with
securities held by the Agency or its agent in the Agency's name. Investments not represented by marketable
securities are not subject to custodial credit risk and, accordingly, are not required to be categorized. A sumimry
of the carrying amount and fair value of the Agency's investments at June 30,2001 is as follows.
Category 1 investments:
U.S.Government securities $ 5,403,961
Uncategorized cash and investments:
Guaranteed investment contracts 26,854,847
Mutualfunds 7,995,447
State Treasurer's Local Agency Investment Fund 15,1.71,522
County Treasurer's cash pool 717,799
Total cash and investments $56,143,576
Linder 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, 2001, the amount held by the trustee was $4,462,754, which is
equal to or in excess of the amount required at that date.
A portion of the proceeds from the issuance of the 1999 tax allocation bonds in the amount of$4,065,000 were
deposited into an escrow fund for the benefit of the Pleasant Hill BART Project Area Capital Projects Fund until
a certain tax increment to debt service ratio requirement was met. Can February 27, 2001, the Agency met the
required tax increment to debt service ratio and the proceeds held in escrow were released.
(4) Nates Receivable
A summary of notes receivable, by project, in the Special Revenue Funds at June 30, 2001 is shown below.
Excluding the Parkway Housing Note, the notes listed below have been offset with deferred revenue, as the
promissory notes are long-term and not considered available.
Coggins Square Apartments $ 350,000
Parkway Estates 733,000
North Richmond Senior Housing Project 581,660
Rodeo Senior Housing Project 75,000
Parkway Housing 872000
$ 1,826,660
(5) Advances from Centra Costa County
The outstanding advance of$3,294,318 in the Pleasant Hill BART Special Revenue Fund was made for the
purchase of land and subsequent repayment of a note payable related to that land.The advance bears interest at
3% per annum, which was $63,810 for the current year. Repayment of these advances will be made when
sufficient tax increment funds become available.
The outstanding advance of$595,948 in the North Richmond Special Revenue Fund was originally made for
specific project costs related to the North Richmond Senior Center. The advance bears interest at 3% per
annum, which was $20,000 for the current year. Repayment of this advance will be made when sufficient tax
increment funds become available.
CON1'TRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2001.
The outstanding advance of$800,305 in advances the North Richmond Capital Projects Fund was originally
made for specific project costs related to the North Richmond Commercial Center Project. The advance bears
interest at 3% per annum, which was $23,310 for the current year. Repayment of this advance will be made
when sufficient tax increment funds become available.
The advance in the amount of $87,283 from the County to the North Richmond Project Area previously
recorded in the General Long-Term Obligations Account Group at June 30, 2000 has been recategorized to the
North Richmond Debt Service Fund. Repayment of this advance will be made when sufficient tax increment
funds become available. In addition, the Pleasant hill BART Capital Projects Fuad paid off the advance from.
the County in the amount of$164,337.
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,motes or similar Agency obligations.
(6) Long-Term Obligations
Changes in long-term obligations for the year ended June 30,2001 is presented below:
Balance, Debt assumed
July 1,2000, by the Balance,
as Restated Retirements Oakley RDA June 30,2001
Advances from Contra
Costa County* $ 164,337 $ (164,337)
Tax Allocation Bonds:
1992 Series A 7,725,000 (145,000) $ 7,580,000
1995 Series A 1,555,000 (25,000) 1,530,000
1995 Series B 2,615,000 (45,000) 2,570,000
1999 Series A 44,255,000 (450,000) $ (7,540,000) 36,265,000
Total $ 56,314,337 $(829,337) $(7,540,000) $47,945,004
* The beginning balance$87,283 was restated as of July 1,2000,to report the advance in the North Richmond Debt Service Fund.
Effective July 1, 2001, $7,540,000 of the 1999 Tax Allocation.Bonds associated with the Oakley Project Area
was assumed by the Oakley RDA. The Agency's long-term obligation was reduced by this amount, as reflected
in the above schedule.
On May 15, 1992, the Authority, on behalf of the Agency, issued $29,315,000 in Tax Allocation Revenue
Bonds with interest rates ranging from 5.25% to 7.2%. The proceeds were used to fixed ongoing 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 interest rates ranging from 3.9% to 6% to fund expenditures for the ?worth
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 interest rates ranging from 4.5% to 7.25°foto fiord expenditures for the Bay Point Project Area.
Principal will be paid annually beginning August 1, 1997 and matures on August 1,2025.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the General-Purpose Financial Statements (Continued)
For the Fiscal Year Ended.lune 30, 2001
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% to 5.125% to finance the acquisition and construction of certain public capital
improvements throughout the Agency. A portion of the proceeds were used to partially advance refund the 1992
Tax Allocation Revenue Bonds, On Tune 30, 2001, the 1992 Tax Allocation Bonds considered defeased have
an outstanding balance of$12,910,000. Principal is due annually each August 1 and matures on August 1,2014.
The schedule of debt service requirements to maturity for the bonds payable is presented as follows:
June 30;
2002 $ 3,335,736
2003 3,402,829
2004 3,407,568
2005 3,403,969
2006 3,388,198
Thereafter 77,486,229
Total debt service 94,424,529
Less amounts representing interest (46,479,529)
Total principal outstanding $47,945,000
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.
(7) Deficit Fund Balance
At June 30,2001,the Pleasant Hill BART Special Revenue Fund had a deficit fund balance of$2,319,954.This
deficit is expected to be cured through the collection of future tax increment revenue.
(8) 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 and provides administrative services for projects. For the year ended June 30, 2001, the
Agency paid approximately $1,079,806 to the County for project improvements and administrative services
incurred by the Agency.
(9) 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 year 2000/01, the County
passed through increments totaling$574,071 directly to these agencies.
(Its)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, 2001, 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.
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Capital Projects Funds
Combining Balance Sheet
June 30, 2041
Pleasant
Hill Bay North
BART Point Richmond Rodeo Total
ASSETS ANIS QTIIER DEBITS
Cash and investments $ 27,296,276 $ 5,493,788 $ 2,589,900 $ 2,698,272 $ 38,078,236
Accrued investment income 55,769 - - - 55,769
Accounts receivable - - - 563 563
Due from Contra Costa County 142,595 9,374 27,821 28,910 208,700
Due from other funds 138,905 81,350 19,375 25,131 264,761
Total assets and other debits $ 27,633,545 $ 5,584,512 $ 2,637,096 $ 2,752,876 $ 38,608,029
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and
accrued liabilities $ 77,220 $ 69,047 $ - $ 475 $ 146,742
Due to Contra Costa.County 14,614 65,102 12,0171 46,078 137,865
Due to other funds - 3,414 91,281 - 94,695
Advances from Contra Costa County - - 800,305 800,305
Total liabilities 91,834 137,563 903,657 46,553 1,179,607
Fund balances.
.Reserved for:
Encumbrances 13,092 69,271 40,566 8,300 131,229
Unreserved:
Designated 27,528,619 5,377,678 1,692,873 2,698,023 37,297,193
Total fund balances 27,541,711 5,446,949 1,733,439 2,706,323 37,428,422
Total liabilities and fund balances $ 27,633,545 $ 52584,512 $ 2,637,096 $ 2,752,876 $ 38,608,029
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, 2€301
Pleasant
Mill Bay North
BART point Richmond Oakley Rodeo Total
Revenues:-
Property tax increment $ 1,581,589 $ 536,060 $ 271,065 $ - $ 444,508 $ 2,833,222
Aid from other governmental agencies - 230,000 - - 123,724 353,724
Use of money and property 1,800,740 340,534 127,574 - 126,074 2,394,922
Other revenue 205,657 43,065 - - - 248,722
Total revenues 3,587,986 1,149,659 398,639 - 694,306 5,830,590
Expenditures:
Current:
General administration 302,100 211,689 148,494 - 106,078 768,361
Fiscal agreement passthroughs 180,643 236,388 - - 157,040 574,071
County administration fee 35,622 9,636 5,898 - 5,244 56,400
Operation and
management of property 12,910 - 131 - 5,593 18,634
Capital outlay:
Project improvements 164,774 652,675 28,794 - 67,303 913,543
Planning, survey, and design 309,643 744 - - - 310,347
Professional services 119,986 57,889 7,561 - 39,849 225,285
Debt service:
Principal repayment 164,337 - - - 164,337
Interest - - 23,310 - - 23,310
Intergovernmental - - - 8,424,755 - 8,424,765
Total expenditures 1,289,971 1,169,022 214,188 8,424,765 381,147 11,479,053
Excess(deficiency)of revenues
over(under)expenditures 2,298,015 (19,363) 184,451 (8,424,765) 313,199 (5,648,463)
Other financing sources(uses)-
Operating transfers in - 2,662 - - 53,746 56,408
Operating transfers out (464,645) - - - (464,645)
Total other financing sources(uses) (464,645) 2,662 - 53,746 (408,237)
Excess(deficiency)of revenues and other
financing sources over(under)
expenditures and other financing uses 1,833,370 (16,701) 184,451 (8,424,765) 365,945 (6,055,700)
Fund balances, beginning of year 25,708,341 5,453,650 1,548,988 8,424,765 2,339,378 43,485,122
Fund balances, end of year $ 27,541,711 $ 5,446,949 $ 1,733,439. $ - $ 2,706,323 $ 37,428,422
14
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Special revenue Funds
Combining Balance Sheet
June 30, 2041
Pleasant
Hill Bay North
BART Point Richmond Rodeo Total
ASSETS
Cash and investments $ 976,300 $ 1,508,360 679,097 $ 1,056,664 $ 4,22(
Accounts receivable - 550 - -
Due from Contra Costa County 14,054 2.,343 6,944 7,.227 3(
Due from other funds - 91,026 91,774 4,554 18
Notes receivable 350,000 - 1,401,660 75,000 1,82(
Land held for resale - 189,450 - - 189
Total assets $ 1,340,354 $ 1,791,739 $ 2,179,475 $ 1,143,445 $ 6,455
LIABILITIES AND FUND BALANCES
Liabilities:
Due to Contra Costa County $ 7,095 $ 46 $ 24 $ 44 $ 7
Due to other funds 8,905 3,045 1,572 1,311 14
Deferred revenue 350,000 - 1,314,650 75,000 1,739
Advances from Contra Costa County 3,294,318 - 595,948 3,89U
Total liabilities 3,660,318 3,091 1,912,204 76,355 5,651
Fund balances:
Reserved for:
Land held for resale - 189,460 - - 189
Unreserved:
Designated. - 1,599,188 2.67,271 1,057,090 2,933
Undesignated deficit (2,319;954) - - - (2,319
Total fund balances (deficit) (2,319,954) 1,788,548 257,271 1,067,090 803
Total liabilities and fund balances $ 1.,340,364 $ 1,791,739 $ 2,179,475 $ 1,143,445 $ 6,455
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, 2001
Pleasant
Hill Bay North
BART Point Richmond Oakley Rodeo Total
Revenues:
Property tax increment $ 843,696 $ 266,040 $ 141,364 $ - $ 148,752 $ 1,399,852
Aid from other governmental agencies - 114,344 26,250 - - 140,594
Use of money and property 50,629 141,922 51,175 - 41,585 291,311
"Total revenues 894,325 522,306 218,789 - 196,337 -1,831,757
Expenditures:
Current:
General administration 633 221 130 - 259 1,243
County administration fee 8,9005 2,409 1,475 - 1,.311 14,100
Capital outlay:
Project improvements 553,150 1,063,650 41,814 - 124,449 1,783,063
Relocation and acquisition 114,843 500,000 - - - 614,843
Debt service:
Interest and fiscal charges 63,810 - 20,010 - _ 83,810
Intergovernmental - - 132,058 - - --- - 132,0358
Total expenditures 741,341 1,566,2803 63,419 132,058 126,019 2,629,117
Excess(deficiency)of revenues
over(under)expenditures 152,984 (1,043,974) 155,370 (132,058) 70,318 (797,360)
Other financing cues:
Operating transfers out (2,034) (98,214) (76,636) - (64,473) (241,357)
Excess(deficiency)of revenues
over(under) expenditures
and other financing uses 150,950 (1,142,188) 78,734 (132,058) 5,845 (1,038,717)
Fund balances(deficit),beginning of year (2,470,904) 2,930,836 188,537 132,058 1,061,245 1,841,772
Fund balances(deficit), end of year $ (21319,954) $ 1,788,648 $ 267,271 $ 1,067,090 $ 803,0155
16
CONTRA. COSTA COUNTY REDEVELOPMENT AGENCY
Debt Service Funds
Combining Balance Sheet
June 30, 2001
Pleasant
Hill Bay North
BART Point Richmond Roden Total
ASSETS
Gash and.investments 1,520,203 $ 595,891 $ 225,500 $ 105,666 $ 2,447,26
Restricted cash and investments 2,774,079 951,099 512,875 .224,701 4,462,75
Accrued investment income 45,325 10,661 9,463 5,383 70,83
Due from other funds - - 97 - 9
Total assets $ 4,339,607 $ 1,557,651 $ 747,935 $ 335,750 $ 6,980,94
LIARILIMS AND FUND BALANCES
Liabilities:
Due to Contra Costa County $ 82 $ 57 $ 60 $ 22 $ 22
Due to other funds 130,000 169,824 14,486 28,374 342,6&
Accrued interest 681,142 234,900 121,176 67,734 1,104,95:
Advances from Contra Costa County - - 87,283 - 87,28:
Total liabilities 811,224 404,781 223,005 96,130 1,535,141
Fund balances:
Reserved for debt service 3,528,383 1,152,870 524,930 239,620 5,445,80:
Total liabilities and fund.balances $ 4,339,607 $ 1,557,651 $ 747,935 $ 335,750 $ 6,980,94;
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, 2001
Pleasant
Mill Bay North
BART Point Richmond. Oakley Rodeo Total
Revenues:
Property tax increment $ 1,793,197 $ 528,100 $ 294,391 $ - $ 150,495 $ 2,766,18z
Use of money and property 279,633 80,210 20,305 - 17,458 397,60E
Total revenues 2,072,830 608,310 314,696 - 167,954 3,163,79(
Expenditures:
Current:
General administration 221 261 538 - 107 1,12',
Debt service:
Principal repayment 360,000 165,000 85,000 - 55,000 665,OOC
Interest on bonds and notes 1,577,026 564,356 291,135 - 162,750 2,595,267
Intergovernmental - - - 639,820 - 639,82C
Total expenditures 1,937,247 729,617 376,673 639,820 217,857 3,901,214
Excess(deficiency)of revenues
over(under)expenditures 135,583 (121,307) (61,977) (639,820) (49,903) (737,424
Other financing sources:
Operating transfers in 415,711 95,552 76,635 - 61;695 649,594
Excess(deficiency)of revenues and other
financing sources over(under)
expenditures 501,294 (25,755) 14,659 (639,820) 11,792 (87,830
Fund balances,beginning of year, as previously
reported 2,977,089 1,178,625 597,554 639,820 227,828 5,620,916
Prior period adjustment - - (87,283) - - (87,283
Fund balances, beginning of year, as restated 2,977,089 1,178,625 510,271 539,820 227,828 5,533,633
Fund balances, end of year $ 37528,383 $ 1,152,870 $ 524,930 $ - $ 239,620 $ 5,445,803
18
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Statement of Changes in general Long-Term Obligations Account Group
For the Fiscal Year Ended June 30, 2001
Balance Balanc
July 1,2000 Additions Deletions June 30,
Pleasant Hill.BART:
1992 Tax Allocation Bands $ 7,725,000 $ - $ 145,000 $ 7,58C
1999 Tax.Allocation Bonds 21,550,000 - 215,000 21,33~
Advance from Contra Costa County 164,337 - 164,337
29,439,337 - 524,337 2$,915
Bay Paint:
1995-B Tax Allocation Bonds 2,615,000 - 45,000 2,570
1999 Tax Allocation Bands 7,940,000 - 120,000 7,82E
10,555,000 - 165,000 10,3907
North Richmond:
1995-A Tax..Allocation Bowls 1,555,000 - 25,000 1,530
1999 Tax Allocation Bonds 3,930,000 _ 50,000 3,870
5,485,000 - 85,000 5,4070
Oakley:
1999 Tax Allocation Bonds `* 7,540,000 - 7,540,000
Rodeo:
1999 Tax Allocation Bonds 3,295,000 - 55,000 3,240
Total long-term obligations * $ 56,314,337 $ - $ 8,369,337 $ 47,945
* The County decreased the beginning balance of the General Lang-Term Obligation Account Group
by$87,283 to recatogorize an advance from the County to the North Richmond Debt Service Fund.
** Effective July 1,2000,this obligation was reduced by$7,540,000 when the City of Oakley Redevelopment
Agency assumed the portion of the 1999 Tax Allocation.Bonds related to the Oakley Project Area.
T9
Partners Mt.Dial Plaza
Kenneth A.Macias,Managing Partner 2:75 N.California Boulevard
<ti
Ernest J.Gini Suite 620
Kevin J.O'Connell Walnut Creek,CA 94576-3565
Macias,Gini&Company LL Richard A,Greer.
925-274-0190
Certltied Public Accountants 911,dp
Mane#$meat cansnttnnts & Rosati
JA. 925.274.3819:ax
James V.Godsey
www.maciasginixom
To the Board of Directors of the
Contra Costa County Redevelopment Agency
Martinez,California
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 U.DITING STANDARDS
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 Tune 30, 2001, and
have issued our report thereon dated November 2,2001. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America 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 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.
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.
Certified Public accountants
Walnut Creaky California Or LOCATIONS
November 2,20303 Sacramentov Los Angeles Fresno San Francisco Bay Area
20