HomeMy WebLinkAboutAG RPTS 2000 0216 RDA REGESTABLISHED
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Resolution No. 2000 -90
1' OF
MOORPARK REDEVELOPMENT AGENCY
REGULAR MEETING AGENDA
WEDNESDAY, FEBRUARY 16, 2000
6:30 P.M.
Moorpark Community Center 799 Moorpark Avenue
1. CALL TO ORDER:
2. ROLL CALL:
3. PUBLIC COMMENT:
4. PRESENTATION /ACTION /DISCUSSION:
5. CONSENT CALENDAR:
A. Consider Approval of Minutes of Special Redevelopment
Agency Meeting of July 21, 1999.
Consider Approval of Minutes of Special Redevelopment
Agency Meeting of February 2, 2000.
Staff Recommendation: Approve minutes as processed.
B. Consider the FY 1998 -99 Annual Financial Report. Staff
Recommendation: Receive and file the Moorpark Redevelopment
Agency's Annual Financial Report for the year ended June
30, 1999.
6. CLOSED SESSION:
7. ADJOURNMENT:
--------------------------------------------------------------------------------------------------
Any member of the public may address the Agency during the Public Comments portion of the Agenda,
unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to
address the Agency concerning a Public Hearing or Presentations /Action /Discussion item must do so
during the Public Hearing or Presentations /Action /Discussion portion of the Agenda for that item.
Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the
Public Comments portion of the meeting and for Presentation /Action/ Discussion items prior to the
beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker
Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A
limitation of three minutes shall be imposed upon each Public Comment and
Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be
imposed upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu
of speaking orally for open Public Hearings and Presentation /Action/ Discussion items. Copies of
each .item of business on the agenda are on file in the office of the City Clerk and are available
for public review. Any questions concerning any agenda item may be directed to the City Clerk at
529 -6864.
In compliance with the Americans with Disabilities Act, if you need assistance to participate in
this meeting, please contact the City Clerk's Department at (805) 529 -6864. Notification 48 hours
prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility
to this meeting (CFR 35.102 - 35.104 ADA Title II).
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) ss
CITY OF MOORPARK
AFFIDAVIT OF POSTING
I , Deborah S . Traffenstedt, declare as follows :
That I am the City Clerk of the City of Moorpark and that an agenda
for a Regular meeting of the Moorpark Redevelopment Agency to be
held on February 16, 2000, at 6 : 30 P.M. in the Council Chambers of
the Moorpark Community Center, 799 Moorpark Avenue, Moorpark,
California, was posted on February 11, 2000, at a conspicuous place
at the Moorpark Community Center, 799 Moorpark Avenue, Moorpark,
California .
I declare under penalty of perjury that the foregoing is true and
correct .
Executed on February 15, 2000
Deborah S . Traffenste , City Clerk
ITEM -5.*
CITY OF MOORPAR.K, CALIFORNIA
Redevelopment Agency Meeting
of
ACTION: � e
mac, .
MOORPARK REDEVELOPMENT AGENCY
AGENDA REPORT BY.
TO: Honorable Agency Board of Directors
FROM: John E. Nowak, Assistant Executive Director -:::L�
DATE: 27 January 2000 (Agency Meeting of 02- 16 -00)
SUBJECT: Consider the FY 1998 -99 Annual Financial Report
BACKGROUND: The Redevelopment Agency is required to
conduct an annual independent audit of its financial
statements. The firm of Vavrinek, Trine, Day & Co., LLP
conducted the audit this year.
DISCUSSION: The firm of Vavrinek, Trine, Day & Co., LLP
conducted the independent audit of the Moorpark
Redevelopment Agency's general financial statements for the
fiscal year ended June 30, 1999. The auditors' opinion is
of conformity with generally accepted accounting principals
(unqualified opinion) .
Further, pursuant to Health and Safety Code Section
33080.2(a), the Agency Board is advised that no major
violations, as defined in Health and Safety Code Section
33080.8(i), were identified by the independent financial
audit report.
The report has been previously provided to Council.
STAFF RECOMMENDATION: To receive and file the Moorpark
Redevelopment Agency's Annual Financial Report for the year
ended June 30, 1999.
00000
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REDEVELOPMENT AGENCY OF
THE CITY OF MOORP ARK, CALIFORNIA
(A Component unit of the City of Moorpark, California)
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
CONTENTS
Independent Auditors' Report
All Fund Types and Account Groups
Balance Sheet
PAGE
All Governmental Fund Types
Statement of Revenues, Expenditures and Changes In Fund Balances 4
Statement of Revenues, Expenditures and Changes In Fund Balances
— Budget and Actual
Notes to Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Year 2000 Issues
0
15
Report on Compliance and On Internal Control Over Financial Reporting Based on an 16
Audit of Financial Statements Performed in Accordance With Government Auditing
Standards
This page left blank intentionally.
Vavrinek, Trine, Day & Co., LLP
Certified PUNIC AC(Mintonts
y4Cmhers
Alnerican Instltuic of Certified PuNic :accountants
• SI_C Practice SC(Aicx:
• California Sociciv of Certified 11tiNic Accountm)ts
• western Association 0f ACCountin9 f=irms
INDEPENDENT AUDITORS' REPORT
The Honorable Board of Directors
Redevelopment Agency of
The City of Moorpark, California
We have audited the accompanying component unit financial statements of the Redevelopment Agency of the
City of Moorpark (the "Agency ") as of and for the year ended June 30, 1999. as listed in the accompanying table
of contents. These component unit financial statements are the responsibility of the Agency's management. Our
responsibility is to express an opinion on these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable
to financial audits contained in Governmental Auditing Standards, issued by the Controller of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
component unit financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the component unit financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the component unit financial statements referred to above present fairly, in all material respects,
the financial position of the Redevelopment Agency of the City of Moorpark as of June 30, 1999, and the results
of operations for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated October 19, 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.
With Offices Located: Fresno
8270 Aspen Street • Rancho Cucamonga. Cli 91730 Pleasanton
PA). BOX 4.107 • RiII1010 Cucarnonga. CA 9172c)4407 LilgLA a 1 lilts
1909) 4-6f j-441 0 • 1'AX (900) 466 -4431 San Jose
w��w.f�ancholnfoCo tdcl)a.corr) CarmicJ ael
The year 2000 supplementary information as included within the report, is not a required part of the basic
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 supplementary information. However, we did
not audit the information and do not express an opinion on it. In addition, we do not provide assurance the
Redevelopment Agency of the City of Moorpark is or will become year 2000 compliant. that the Redevelopment
Agency of the City of Moorpark's year 2000 remediation efforts will be successful in whole or in part, or that
parties with which the Redevelopment Agency of the City of Moorpark does business are or will become year
2000 compliant.
V C�t,ru.�.�- , �- w►.=e— , �cwk � C.� , L. tr�
Rancho Cucamonga, California
October 19, 1999
REDEVELOPMENT AGENCY OF THE CITY OF NIOORPARK
BALANCESHEET
GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 1999
ASSETS AND OTHER DEBITS
Cash and Investments
Restricted cash and investments
Accounts and interest receivable, net
Votes receivable
Land held for resale
Property and equipment
Amount available for debt service
Amount to be provided for retirement
of general long -term debt
Total Assets
LIABILITIES
Liabilities:
Accounts payable and accrued liabilities
Employees compensated absences payable
Deposits, principally from developers
Long -term advance from City General Fund
Tax allocation bonds payable
Total Liabilities
FUND EQUITY AND OTHER CREDITS
Fund balances and other credits:
Investment in general fixed assets
Fund balances:
Reserved for encumbrances
Reserved for receivables due after one year, net
Reserved for land held for resale
Reserved ter debt services
Reserved for lowimoderate income housing
Unreserved:
Designated for business incentives
Designated for capital projects
Total Fund Equity and Other Credits
Total Liabilities and Fund Equity
GOVERNMENT.SL FUND TYPES ACCOUNT GROUPS TOTALS
Special Capital Debt General General -Long (Memorandum
Revenue Projects Service Fixed Assets Term Debt Only)
S 1.290.861 S 6,659,455
$ 803.234
155.821 471.530 3,611
3.687.414
1.500.000
S 7.950.316
803,234
630,962
3,687,414
1,500,000
S 1,209,283 1,209,283
S 806,845 806.845
13,438.535 13.438,535
S 2.946.682 S 10.818.399 S S06.845 $ 1.209,283 S 14,245,380 S 30.026.589
8,192 123.650
131,842
20,011
20,011
25.000 2,370
27,370
4,365,369
4.365,369
9,860,000
9,860,000
33.192 126,020 14,245,380
14,404,592
1.209,283 1,209,283
The accompanying notes are an integral part of these financial statements.
127,635
127,635
140.284
3.775,112
3.915,396
1,500,000
1,500,000
803.234
303.234
1,273,206
1.273.206
233,678
233,678
6555.954
3,611
6,559,565
2.913.490
10.692379
806.845 1,209,283
15.621,997
S 2.946.682
S 10.818.399
S 806.845 S 1,209.283 S 14,245,380 S
30.026,589
The accompanying notes are an integral part of these financial statements.
This page left blank intentionally.
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
REVENUES
Property taxes
Maintenance assessments
Charges for current services
Interest
Other
Total Revenues
EXPENDITURES
Current:
General government
Public services
Capital outlay
Debt service
Principal
Interest and fiscal
Cost of issuance
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Proceeds from bond issuance
Payment to refunded bond escrow agent
Operating transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
Fund Balances. Peginning of Year
Fund Balances. End of Year
GOVERNMENTAL FUND TYPES
674,182
Special
Capital Debt
TOTALS
Revenue
Projects Service
(.Memorandum Only)
45,662
S 1,785,733
S 1,785.733
111,894
(2,250)
(2.250)
240,000
112.299
112,299
S 66,971
1,058,656 S 23,081
1,148.708
226
22,495
22,721
67,197
2976.933 23.081
3.067.211
95,884 (1,743,475) (38,876) (1,686,467)
2.517.606 12.435.854 845.721
5 2. 913,490 S 10.692,379 S 506.845 S
The accompanying notes are an integral part of these financial statements.
4
16.099.181
14.412.714
674,182
276
674,458
50,377
50,377
45,662
66,232
111,894
163,202
2,500,000
240,000
2,903,202
7,800
475,000
539,239
1,022,039
231,113
231,113
267,041
3,715,414
1,010.628
4.993,083
(1992844)
(738,481)
(987,547)
(1,925,872)
295,728
709,266
1,004,994
9,737,134
9,737.134
(9.497,729)
(9,497,729)
(1,004,994)
(1,004.994)
295.728
(1,004,994)
948,671
739,405
95,884 (1,743,475) (38,876) (1,686,467)
2.517.606 12.435.854 845.721
5 2. 913,490 S 10.692,379 S 506.845 S
The accompanying notes are an integral part of these financial statements.
4
16.099.181
14.412.714
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURE S AI D
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
FOR THE FISCAL YEAR ENDED TUNE 30, 1999
The accompanying notes are an integral part of these financial statements.
5
SPECIAL REVENUE FUNDS
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Property taxes
Maintenance assessments
Charges for current services
Interest
S 41,000 S
66,971
S 25,971
Other
226
226
Total Revenues
41,000
67,197
26.197
EXPENDITURES
Current:
General government
Public services
370,458
501377
320,081
Capital outlay
45,650
45.662
(12)
Debt service
Principal
163,202
163,202
Interest and fiscal
7.800
7,800
Cost of issuance
Total Expenditures
587.110
267,041
320.069
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
(546,110)
(199,844)
346.266
OTHER FINANCING SOURCES (USES)
Operating transfers in
2'_5,000
295.728
70,728
Proceeds from bond issuance
Proceeds from long -term advance general fund
87,378
(87,378)
Pap rtent to refunded bond escrow agent
Operating transfers out
Total Other Financing Sources (Uses)
312.378
295,728
(16.650)
EXCESS iDEFICIENCYl OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
S 1233. -2)
95.884
S 329.b16
Fund Balances. Beginning ol'Year
2.817.606
Fund Balances. End of Year
S
'.913.490
The accompanying notes are an integral part of these financial statements.
5
S (2.528.500) 11. ?43.475) S 785.025 9. »80.001 (38,876) 5 (9,518.877) S 6.717.769 (1.686.467) S (8.404,236)
2.4- 35.854 845.721 16.099.181
S 10.692.379 S 806.845 S 14..112.'14
J
TOTAL_
CAPITAL PROJECTS FUNDS
DEBT SERVICE
(Memorandum Only)
Variance
Variance
Variance
Favorable
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
5 1,350.000
S 1,785.733
S 435.733
S 1,350,000
S 1,785.733 S
435,733
(2,250)
(2,250)
(2.250)
(2,250)
106,929
112,299
5,370
106.929
112,299
5.370
440,000
1,058,656
618.656
S 23,500
S 23.081
S (419)
504.500
1.148,;08
644,208
22,495
22,495
22.721
22,721
1,896,929
2.976.933
1.080,004
23.500
23.081
(419)
1,961.429
3.067,211
1,105,782
753,888
674.182
79.706
276
(276)
753,888
674,458
79,430
370,458
50,377
320,081
359,841
66,232
293.609
405,491
111,894
293,597
2,500.000
2.500:000
240.000
240,000
2.903,202
2,903.202
475,000
475.000
560.199
539,239
20,960
1,042,999
1,022,039
20,960
380,000
231,113
148,887
380.000
231,113
148.887
4,088,729
3,715,414
373.315
1,180.199
1,010.628
169,571
5.856,038
4.993.083
862.955
(2.191,800)
(738,481)
1.453,319
(1,156.699)
(987,547)
169,152
(3.894,609)
(1.925.872)
1.968,737
776,700
709,266
(67,434)
1,001.700
1,004,994
3,294
9,860,000
9,737,134
(122,866)
9.860.000
9,737,134
(122,866)
665,000
(665.000)
752,378
(752,378)
(9,497,729)
(9,497,729)
(9,497,729)
(9,497,729)
(1.001'700)
(1.004,994)
(3.294)
(1.001,700)
(1.004.994)
(3.294)
(336,700)
11.004,994)
(668.294)
10.636.700
948.671
(9.688,029)
10,612,378
239.405
(10.372,973)
S (2.528.500) 11. ?43.475) S 785.025 9. »80.001 (38,876) 5 (9,518.877) S 6.717.769 (1.686.467) S (8.404,236)
2.4- 35.854 845.721 16.099.181
S 10.692.379 S 806.845 S 14..112.'14
J
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
:VOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
;VOTE '1 -.V, <1 TURE AND OPERA TIO S OF THE AGENCY
The Redevelopment Agency of the City of Moorpark, California (Agency) was created by the City of Moorpark
(City) City Council Ordinance No. 87, adopted on March 18, 1987. The City Council appointed the Board of
Directors and established bylaws of the Agency on May 20, 1987, by Resolution Flo. 87-387. The City Council
sits as the Board of Directors of the Agency. The Agency was established pursuant to the Community
Redevelopment Law of the State of California Health and Safety Code.
For financial reporting purposes, the Agency is considered to be a component financial reporting unit of the
City, however, for operational and financing purposes, the Agency functions as a separate legal entity, distinct
form the City of Moorpark. In accordance with generally accepted accounting principles, the financial activities
of the Agency are included in the Annual Financial Report of the City of Moorpark because of the financial and
administrative oversight aspects of the City Council's involvement in the Agency's activities.
NOTE 72 — SU11L1MARY OF SIGNIFICANT ACCOUNTING POLICIES
The Redevelopment Agency of the City of Moorpark (the Agency), accounts for its financial operations in
accordance with generally accepted accounting principles applicable to governmental units. Accordingly, the
Agency uses several fund types and account groups as described below.
A. Fund Types and Account Groups
• Special Revenue Fund — This fund is used to account for revenues derived from specific sources that are
usually required by law or administrative regulation to be accounted for in separate funds.
• Debt Service Fund — This fund is used to account for the payment of interest and principal on its long-
term obligations. Principal sources of revenue for this fund are property taxes and investment earnings.
• Capital Projects Fund — this fund is used to account for all revenues and expenditures which are not
accounted for by the Debt Service Fund and Special Revenue Fund, including acquisition of properties,
costs of site improvements and other costs of benefit to project areas and administrative expenditures
incurred in sustaining Agency activities.
• General Fixed Assets Account Group — This account group is used to account for property and
equipment purchased or received by the Agency.
• General Lonu -Term Debt Account Group This account group is used to account for the Agency's
outstanding long -term indebtedness in a separate self - balancing group of accounts.
6
REDEVELOPMENT AGENCY OF THE CITY OF NIOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
,VOTE n2 — SU111,WARI' OF SIGNIFICANT.WCOUNTING POLICIES (Continued)
B. Basis of Accounting
The modified - accrual basis of accounting is followed by all funds of the Agency. Under the modified -
accrual basis, expenditures (other than interest and principal on long -term debt which is recorded when due,
unless paid early in a subsequent period) are recorded when the liability is incurred, and revenues are
recorded when received in cash unless susceptible to accrual (i.e., measurable and available to finance the
Agency's operations in the current period or of a material amount and not received at the normal time of
receipt). Revenues considered susceptible to accrual include investment earnings and incremental property
taxes.
C. Budizetary Data
The Board of Directors approves each year's budget submitted by the Executive Director prior to the
beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Board of
Directors. Supplemental appropriations, where required during the period, are also approved by the Board
of Directors. In most cases, expenditures may not exceed appropriations at the function level. At fiscal
year -end, all operating budget appropriations lapse. Overall, budgets are adopted on a basis consistent with
generally accepted accounting principles (GAAP).
D. Total (Memorandum Only) Columns
The combined financial statements include certain "memorandum only" totals which represent mathematical
summations of account totals by fund type and account group and do not reflect the elimination of interfund
transactions. Such totals are for information purposes only and do not present consolidated financial
information.
E. Land Held for Resale
Land held for resale in the Low- and Moderate - Income Housing Special Revenue Fund represents land
purchased by the Agency for investment purposes. Such land is valued at the lower of cost or estimated net
realizable value (as determined by a disposition and development agreement between the Agency and a
developer) and has been offset by a reservation of fund balance to indicate that assets constitute future
capital projects and are not available spendable resources.
F. Property and Equipment
General fixed assets are recorded as expenditures in the Governmental Fund Types at the time of purchase.
These assets are stated at cost in the General Fixed Assets Group. No depreciation is provided on general
fixed assets.
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE {Z -SL .WittlRY OF SIGVIFIC,4.VT.4CCOL VT1.,VG POLICIES (Continued)
G. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is
employed in the governmental funds. Open encumbrances are recorded as reservations of fund balance
since the commitments will be paid by subsequent years' budget appropriations. Encumbrances do not
constitute expenditure or liabilities.
H. Property Taxes
The Agency receives incremental property taxes on property within its project area over a base - assessed
valuation on the date the project area was established.
The duties of assessing and collecting property taxes are performed by the Ventura County assessor and Tax
Collector, respectively. Tax levies cover the period from July 1 to June 30 of each year. All tax liens attach
annually on the first day in March preceding the fiscal year for which the taxes are levied. Taxes are levied
on both real and personal property as it exists on that date.
Secured property taxes are levied against real property and are due and payable in two equal installments.
The first installment is due on November 1 and becomes delinquent if not paid by December 10. The
second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured
personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by
August 31.
The Agency records incremental property tax revenues in the fiscal year to which they are due rather than at
the related lien date. Delinquent property taxes at year -end (June 30) if any are reserved to the extent they
are deemed to be uncollectible within 60 days thereafter.
NOTE =3 - CASH AND INVESTWENTS
At June 30, 1999, the Agency's investments are stated at fair value. The Agency's cash, investments and
restricted cash and investments consist primarily of investments in the State Treasurer's Local Agency
Investment Fund, certificates of deposit and other money market investments. Interest income earned on cash
and investments is allocated to the various funds based on each fund's averaize cash and investment balance.
A. Cash and Investments with Fiscal AggW
A portion of the Agency's funds are also held by tnistees or fiscal agents and pledged to the payment or
security of certain bonds. The California Government Code provides that these monies, unless otherwise
required by statute, may be invested in accordance with the ordinances, resolutions or indentures, which
;pecify the types of investments the trustees or fiscal agents may make.
e
REDEVELOPMENT .-AGENCY OF THE CITY OF MOORPARK
NOTES TO FINANCIAL. STATEMENTS
JUNE 30, 1999
,VOTE ;+3 — CASH,4,VD I.VVESTMEiVTS (Continued)
B. Cash and Investments
Cash and non - negotiable certificates of deposit are classified in three categories of custodial risk as follows:
Category 1: Includes deposits that are insured or collateralized with securities held by the City or its agent
in the Citv's name.
Category 2: Includes deposits that are collateralized with securities held by the pledging financial
institution's trust department or agent in the City" name.
Category 3: Deposits, which are uncollaterlized, or collateralized with securities held by the pledging
financial institution or by its trust department or agent but not in the City's name.
Investments are also classified in three categories of custodial risk as follows:
Category 1: Insured or registered, securities held by the entity or its agent in the entity's name.
Category 2: Uninsured and unregistered, with securities held by the counterparty's trust department or
agent in the entity's name.
Category 3: Uninsured and unregistered, with securities held by the counterparty's trust department or
agent but not in the entity's name. Investments in pools managed by other governments or in
mutual funds are not required to be categorized.
The Agency's deposits and investments at June 30, 1999 are categorized below:
BANK BALANCE -
CATEGORY BANK CARRYING
1 2 3 BALANCES AMOUNTS
Deposits:
Cash S 75.864 S - S - S 75.864 S 62,922
9
REDEVELOPMENT AGENCY OF THE CITY OF `'IOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
!VOTE #3 — CASH AND 11\1VESTLIE,TS (Continued)
BANK BALANCE -
CATEGORY FAIR
1 2 3 VALUE
Investments:
Local Agency Investment Fund (LAIF) (1) $ 7,887,394
Investments held in trust by fiscal agents
guaranteed investment agreement with
Transamerica, maturity date 10/1/2018 771,100
Fidelity U.S. Treasury Portfolio III
Money Market Fund 32,134
Total investments S - S - S - $ 8.690.628
* Not required to be categorized.
(1) The management of the State of California Pooled Money Investment Account (generally referred to as
LAIF) has indicated to the Agency that as of June 30, 1999. the carrying amount of the pool was
536,849,505,673 and the estimated market value for the pool (including accrued interest) was
537,0201937,097. The Agency's proportionate share of that value is 57,887,394. Included in LAIF's
investment portfolio are certain derivative securities or similar products in the form of structured notes
totaling S1.524,350,000, and asset - backed securities totaling 5351,942,000. LAIF's (and the Agency's)
exposure to risk (credit, market or legal) is not currently available.
Fair Value of Investments
:Accounting pronouncement GASB Statement 31 generally applies to investments in external investment
pools (State of California LAIF & county treasury investment pools), . investments purchased with maturities
greater than one year, mutual funds, and certain investment pools. Generally, governmental entities need to
report the "fair value" changes for these investments at year -end and records these gains or losses on their
income statement.
State of California State Treasurer's Local Agency Investment Fund (LAIF): The Agency holds an
investment in LAIF that is subject to being adjusted to "fair value ". The Agency is required to disclose its
methods and assumptions used to estimate the fair value of its holdings in LAIF. The Agency relied upon
information provided by the State Treasurer in estimating the Agency's fair value position of its holding in
LAIF. The Agency had a contractual withdrawal value of 57.887394 whose pro -rata share of fair value was
estimated by the state Treasurer to be S7.887,394. The fair value change in this investment for the year
came to an amount that was not material. for presentation in the financial statements.
The State Treasurer's Local Agency Investment Fund ( "LAIF ") is a governmental investment pool managed
and directed by the California State Treasurer and is not registered with the Securities and Exchange
Commission. An oversight committee, comprised of California State officials and various participants,
provide oversight to the management of the fund. The daily operations and responsibilities of LAIF tall
under the auspices of the State Treasurer's office. The Agency is a voluntary participant in the investment
Pool.
t0
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE #4 — PROPERTY AND EQUIPMENT
A summary of changes in general fixed assets during the year ended June 30. 1999 is as follows:
Land
Building and structures
Equipment
Totals
NOTE #5 — GENERAL LONG -TERM DEBT
Balance
Beginning of
Year Additions
S 1,051,409 S 45,000
78,558
21.113 13.203
Balance
End of
Deletions Year
S 1,096,409
78.558
S 1,151,080 S 58.203 S - $ 1,209,283
The following is a schedule of changes in long -term debt for the fiscal year ended June 30, 1999.
A. Employee Compensated Absences
B. 1993 Tax Allocation Bonds
C. Long -Term Advances from the City
D. 1999 Tax Allocation Bonds
Totals
Balance Balance
Beginning of End of
Year Additions Deletions Year
$ 13,921 S 6,090 $ 20,011
9,150,000 S9,150,000
7,028,571 2,663,202 4,365,369
S9,860,000 9.860.000
$16,192,492 S 9,866,090 511.813,202 $14,245,380
Tax Allocation Bonds are secured by all tax increment revenue, which is deposited directly with the fiscal agent
and recorded in the Debt Service Fund. Cash and investments in the custody of the fiscal agent are restricted by
the bond resolutions for payment of principal and interest on the Tax Allocation Bonds. In addition, the bond
resolutions require retention of funds held by the fiscal agent prior to use for other than debt service.
REDEVELOPMENT AGENCY OF THE CITY OF vi00RPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE #5 — GENERAL LONG -TER -M DEBT (Continued)
The Agency is in compliance with the covenants contained in debt indentures, which require the establishment
of certain specific accounts for the Tax Allocation Bonds.
A. Employee Compensated Absences Payable
In accordance with generally accepted accounting principles, the Agency recognizes the long -term portion
of accumulated employee compensated absences in the Long -Term Debt Account Group.
B. Advances from the City of Moorpark
The City's General Fund has paid for services and start -up expenditures incurred by the Redevelopment
Agency. During the fiscal year ended June 30, 1994, the City's General Fund advanced $3.5 million of
Low- and Moderate - Housing Funds to purchase certain properties within the Redevelopment Agency
project area. These advances accrue interest at 10 percent and are to be repaid over and indeterminate
period. During the 1998 -99 fiscal year, the Agency paid down the advances due to the General Fund. The
Low and Moderate Housing fund paid off the short-term advance of $163,202, and the Agency Capital
Projects fund paid down $2,500,000 of its advance leaving a balance of $865,369. The total advances
outstanding at June 30, 1999 include the remaining Capital Projects advance of 5865,369, plus the long -term
portion discussed above of 53,500,000. The balance of advances from the General fund totaled $4,365,369
at June 30, 1999.
C. 1999 Tax Allocation Bonds
In 1999, the Redevelopment Agency issued a 59,860,000 aggregated principal amount of Moorpark
Redevelopment Project 1999 Tax Allocation Refunding Bonds (the Bonds). The purpose of the Bonds was
to advance refund the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax
Allocation Bonds. The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the
Redevelopment Plan, including low -and moderate- income housing projects. The 1999 Bonds bear interest
at rates ranging from 3.05 percent to 4.875 percent per annum, payable semi - annually on April 1 and
October 1 of each year, commending on October 1, 1999 and are subject to mandatory sinking fund
redemption commencing on October 1, 2009 and on each October 1 thereafter. The Bonds are payable from
and secured by the tax revenues to be derived from the project area.
The bonds are secured by all property tax increment revenue, which is deposited directly with the fiscal
agent and recorded in the Debt Service Fund. Cash and investments in the custodv of the fiscal agent are
restricted by the bond resolutions for pavment of principal and interest on the Tax Allocation Bonds. In
addition, the bond resolutions require retention of funds held by the fiscal agent prior to use for other than
debt service.
The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which
require the establishment of certain specific accounts for the Tax :allocation Bonds.
12
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE #5 — GENERAL LONG -TERM DEBT (Continued)
Debt service payments on the 1999 Tax Allocation Refunding Bonds payable will be made from the Debt
Service Fund. Annual debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30,
Principal
Interest
Total
2000
$ 320,000
$ 394,303
$ 714,303
2001
345,000
420,193
765,193
2002
355,000
408,638
763,638
2003
365,000
396,124
761,124
2004
380,000
382,710
762,710
Thereafter
8,095,000
3,248,068
11,343,068
Total
$ 9,860,000
$ 5,250,036
$ 15,110,036
D. Defeased Debt
On May 6, 1999 the Redevelopment Agency of the City of Moorpark (the Agency) issued the 1999 Tax
Allocation Refunding Bonds of $9,860,000 with interest rates ranging from 3.05% to 4.85% to advance
refund the 1993 Tax Allocation Bonds with interest rates ranging from 3.30% to 6.0 %. The Agency issued
the 1999 refunding bonds to provide resources to purchase U.S. government securities that were deposited
in an irrevocable trust with an escrow agent for the purpose of generating resources for all future debt
service payments of the refunded debt. The advance refunding met the requirements of an in- substance
defeasance and as a result, the refunded bonds are considered defeased and the liability has been removed
from the general long -term debt account group. This advance refunding was undertaken to reduce total debt
service payments over the next 20 years by $230,836 and to obtain an economic gain (the difference
between the present value of the debt service payments of the refunded and refunding bonds) of $181,304.
NOTE #6 — LOW- AND MODERATE- INCOME HOUSING SET ASIDE
The California Health and Safety Code Section 33334.2 requires a redevelopment agency to use at least 20
percent of tax increment revenues generated by a redevelopment project area to increase and improve the supply
of low -and moderate - income housing in the community. Accordingly, the Agency's unspent commitment for its
low- and moderate - income housing program amounted to $2,913,490 and has been reflected as a reservation of
fund balance in the Agency's Special Revenue Fund.
191
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE #7 — PASS -THRO UGH A GREEMENTS
The Agency has entered into agreements with various governmental agencies to pass through a portion of tax
increment received in the project area. Such Transactions are recorded within the Agency's special revenue
fund. The various agencies and the tax increment passed through to those agencies for the year ended June 30,
1999 are as follows:
Ventura County Superintendent of Schools $ 1,865
City of Moorpark Vector Control 19,252
Moorpark Unified School District 415
Ventura County Community College District 14,582
City of Moorpark/School District Passthrough * 104,213
Total S 140,327
In addition, the Agency was not subject to transfer any tax increment to the State's Education Revenue
Augmentation Fund (ERAF) for the year ended June 30, 1999.
* This amount was used by the City of Moorpark towards construction of community tennis courts.
NOTE #8 — LAND HELD FOR RESALE
The following is a summary of changes in land held for resale during the year ended June 30, 1999:
Balance
Beginning of
Year Additions
Balance
End of
Deletions Year
Totals $ 1,500,000 $ 1,500,000
14
REQUIRED SUPPLEMENTARY INFORMATION
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REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK
REQUIRED SUPPLEMENTARY INFORMATION
YEAR 2000 ISSUES
JUNE 30.1999
Since the Redevelopment Agency of the City of Moorpark is a component unit of the City of Moorpark, all
financial /computer systems are maintained by the City for the Agency. Therefore, the information given below
also applies to the Agency. The year 2000 issue is the result of shortcomings in many electronic data processing
systems and other electronic equipment that may adversely affect the government's operations as early as fiscal
year 1999.
The City of Moorpark has completed an inventory of computer systems and other electronic equipment that may
be affected by the year 2000 issue and that are necessary to conduction City operations:
• The financial systemigeneral ledger the City uses, Business Records Corporation, is off the shelf
software that was purchased from an outside vendor. The City has received a letter from the vendor
that the financial system appears to be year 2000 compliant. Validation and testing of this system
has not been completed.
• The City uses Automated Data Processing ( ADP) for its payroll processing. The City has received a
letter from ADP stating that the payroll system is year 2000 compliant. ADP is responsible for
remediating these systems and is solely responsible for any costs associated with the project.
• The City uses a server /network for managing most of the City's software applications. The system
was replaced during the 1998 -99 fiscal year. As a part of purchasing the new system, the City
required assurance from the vendor that the system is year 2000 ready. Consequently,
Remediation/Validation/Testing for this system has not been completed.
• The City's traffic control system is run and maintained by Signal Maintenance, Inc. The City and
the State of California are responsible for remediating these systems depending upon the ownership
of the traffic signals. The costs associated with the remediation is solely responsibility of the
respective owner of such signals. The City has completed the validation and testing stage for the
signals owned by the City and has determined that they are year 2000 ready. The State of California
is responsible for all remediation for the systems they own.
• Tax collection for the City is handled by Ventura County, The County is responsible for
remediating this system, and is solely responsible for any costs associated with this project.
• Various revenues such as sales tax, motor vehicle in lieu fees, etc. are collected by the State of
California. The State is responsible for remediating this system, and is solely responsible for any
costs associated with this project.
• The City has deposits with Bank of America. Bank of New York, and the Local Agency Investment
Fund (LAIF). These institutions /agencies provide banking/investment services for the City and are
responsible for remediating their systems and are solely responsible for any costs associated with
the project.
• The City owns office space for City Hall with power, heating, and air - conditioning systems. The
City is responsible for remediating all applicable systems and is solely responsible for any costs
associated with the project.
Because of the unprecedented nature of the Year 2000 issue, its effects and the success of related remediation
efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the City
of Moorpark is or will be Year 2000 ready. that the City's remediation efforts will be successful in whole or in
part, or that parties with whom the City does business will be year 2000 ready.
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Vavrinek, Trine, Day & Co., LLP
<;CrtiliPrl i,ublic , \L('ouniants
Nicmhers:
• Anu'rican I11Slilllte of Certliied Ilublic Accountants
• SRC Prac'ticc Section
• Caliiornia Society of Certified Public Accounants
• Wostcrn :ASSO(-i<ltion of ACCOUMillg5 Firms
Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance
With Government Auditing Standards
The Honorable Board of Directors
Redevelopment Agency of
the City of Moorpark, California
We have audited the financial statements of the City of Moorpark Redevelopment Agency, as of and for the year
ended June 30, 1999 and have issued our report thereon, dated October 19, 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 Controller of the United States.
Compliance
As part of obtaining reasonable assurance about whether the financial statements of the City of Moorpark
Redevelopment Agency are free of material misstatements, 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 financial statement amounts. Such provisions included 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.
8270 Sirect • Rancho Cuciarnonga. CA 91 730
PA,). IioN 4407 • Rancho (Juc<)tA1011til. CA 4) 1729 -4407
(904)) 466-44 1 0 • ':AX ((X)4)) 4.66 -44:3 1
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16
With (((ices Located: Fresno
Pleasanton
1_aglina I tills
San Jose
C:arrr.ichacl
Internal Control Over Financial Reportinz
In planning and performing our audit, we considered the City of Moorpark Redevelopment Agency's internal
control over financial reporting in order to determine our auditing procedures for the purpose of expressing our
opinion on the 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 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 considered to be material weaknesses.
This report is intended for the information of the board of Directors, management, and the State Controller.
However, this report is a matter of public record and its distribution is not limited.
Rancho Cucamonga, California
October 19, 1999
a
r