HomeMy WebLinkAboutAGENDA REPORT 1994 0202 CC REG ITEM 08YITEM S. y
AGENDA REPORT
CITY OF MOORPARK
Y.
TO:
�: 1
The Honorable City Council
Steven G. Hayes, Economic Development Manager
DATE: January 18, 1994 (CC Meeting of 2 -2 -94)
SUBJECT: Moorpark Redevelopment Agency Annual Report
DISCUSSION:
Attached is the Annual Report of the Moorpark Redevelopment Agency as required by the
California Community Redevelopment Law, Section 33080 and independent financial audit as
required by Section 33080.1.
The Annual Report includes: (1) an Executive Summary, (2) an Introduction, (3) description of
Redevelopment Activities, (4) the Annual Report of Housing Activities, and (5) the Independent
Audit Prepared by KPMG Peat Marwick.
The Annual Report is to be presented to the legislative body (Moorpark City Council) for review
and any action deemed appropriate. The report when approved by the City Council will be
transmitted to the Department of Housing and Community Development.
RECOMMENDATION:
Staff recommends that the City Council review and accept the Annual Report for filing with the
appropriate Agencies.
MRA /SGH9401 OIAGN 101 /24/94
MOORPARK REDEVELOPMENT AGENCY
ANNUAL REPORT TO THE
MOORPARK CITY COUNCIL
FOR FISCAL YEAR 1992.1993
PREPARED BY
THE MOORPARK REDEVELOPMENT AGENCY
JANUARY 211 1994
MOORPARK REDEVELOPMENT AGENCY
ANNUAL REPORT TO THE
MOORPARK CITY COUNCIL
FOR FISCAL YEAR 1992/1993
PREPARED BY
THE MOORPARK REDEVELOPMENT AGENCY
JANUARY 22. 1494
TABLE OF CONTENTS
Section ___ Page
I. Executive Summary ... . ............................. 1
II. Introduction ........ ............................... 2
III. Moorpark Redevelopment Agency Activities
A. Redevelopment Activities ....................... 3
B. Housing Activities ............................. 3
C. Economic Development Activities ................ 4
IV. Annual Report Of Housing Activity of
Community Redevelopment Agencies for
Fiscal Year Ended 0600 %93 .......................... 6
V. Independent Audit Prepared by
KPMG Peat Marwick ... 10
SGH065
SECTION A
EXECUTIVE SUMMARY
The California Community Redevelopment Law (CCRL) Section 33080
requires that a financial report, which includes an independent
financial audit, be prepared and submitted to the legislative
body each Fiscal Year for ail redevelopment agencies. The
legislative body of the city shah review the report and take any
action which it deems appropriate on the report submitted
pursuant to Section 33080.1.
This Financial Report to the City Council of the City of Moorpark
has been prepared in accordance with the California Community
Redevelopment Law and includes a brief description of the
activities of the Moorpark Redevelopment Agency for Fiscal Year
1992/1993. The Activities described are (1) Redevelopment
Activities, (2) Housing Activities, (3) Economic Development
Activities, and (4) an Independent Audit Report.
The Independent Audit Report was prepared by KPMG Peat Marwick,
Certified Public Accountants, in accordance with generally
accepted auditing standards and the Rules Governing Audit Reports
promulgated by the State Board -f Accountancy.
The results of the audit performed by KPMG Peat Marwick indicated
that, with respect to the items tested, the Moorpark
Redevelopment Agency complied, in all material respects, with the
provisions of laws and regulations contained in the Guidelines
for Compliance Audits of California Redevelopment Agency issued
by the State Controller's Off -e. Division of Local Government
Fiscal Affairs.
With respect to items not tested, nothing came to the attention
of KPMG Peat Marwick that caused them to believe that the
Moorpark Redevelopment Agency had not complied, in all material
respects, with all provisions of law and standards governing the
financial activities of the Ager-v.
The Audit Report prepared is matter of public record and its
distribution is not limited.
SECTION ;
INTRODUCTION
The Moorpark Redevelopment Agency was enacted on by the adoption
of Ordinance No. 87 on March 18, 1987. The City Council
appointed the Councilmembers to act as the Members of the Board
of the Moorpark Redevelopment Agency and in accordance with
Section 33100 of the California Community Redevelopment Law with
all of the rights, powers, duties, and privileges and immunities
vested by the California Community Redevelopment Law.
The Moorpark Redevelopment Agency initiated a study to determine
which areas of the City of Moorpark would benefit from the
adoption of a redevelopment plan, which plan would be an
implementation tool used for the elimination of blight as defined
in Section 33031 of the Health -iid Safety Codes.
On June 7, 1989, the Moorpark irty Council adopted Ordinance No.
110 thus approving the Redevelopment Plan For The Moorpark
Redevelopment Project. The Redevelopment Plan incorporates
approximately 1,217 acres of lani within the City boundary.
The Redevelopment Plan addresses the need to eliminate blight
found in the industrial, commer--ial and residential areas of the
City and demonstrates a need to increase employment opportunities
and assist in the growth of the Financial base of the City.
As stated above, the Redevelopment Plan For The Moorpark
Redevelopment Project was adopted on June 7, 1989. Shortly after
adoption the Redevelopment Plan was challenged by legal action
initiated by various affected taxing agencies. After three years
of litigation, the Agency setteled with all parties in the legal
action against the Redevelopment Plan came to a settlement. All
tax increment revenues generated throughout the period of
litigation were impounded, and on or about June 28, 1993 the
County of Ventura released the impounded funds to the Agency.
Prior to the release of tends there were virtually no
redevelopment activ -ties.
SECTION II
INTRODUCTION
The Moorpark Redevelopment Agency was enacted by the adoption of
Ordinance No. 87 on March 18, 1987. The City Council appointed
the Councilmembers to act as the Members of the Board of the
Moorpark Redevelopment Agency and in accordance with Section
33100 of the California Community Redevelopment Law with all of
the rights, powers, duties, privileges and immunities vested by
the California Community Redevelopment Law.
The Moorpark Redevelopment Agency initiated a study to determine
which areas of the City of Moorpark would benefit from the
adoption of a redevelopment plan, which plan would be an
implementation tool used for the elimination of blight as defined
in Section 33031 of the Health and Safety Codes.
On June 7, 1989, the Moorpark City Council adopted Ordinance No.
110 thus approving the Redevelopment Plan For The Moorpark
Redevelopment Project. The Redevelopment Plan incorporates
approximately 1,217 acres of land within the City boundary.
The Redevelopment Plan addresses the need to eliminate blight
found in the industrial, commeiciaL and residential areas of the
City and demonstrates a need to increase employment opportunities
and assist in the growth of the financial. base of the City.
As stated above, the Redevelopment Plan For The Moorpark
Redevelopment Project was adopted on June 7, 1989. Shortly after
adoption the Redevelopment Plan was challenged by legal action
initiated by various affected taxing agencies. After three years
of litigation, the Agency settled with all parties in the legal
action against the Redevelopment Pian and came to a settlement.
All tax increment revenues generated throughout the period of
litigation were impounded, and on or about June 28, 1993 the
County of Ventura released the impounded funds to the Agency.
Prior to the release of ftn'i5 *here were virtually no
redevelopment activities.
SECTION III
MOORPARK REDEVELOPMENT AGENCY ACTIVITIES
A. Redevelopment Activities
Part of Fiscal Year 1992/1993 the Moorpark
Redevelopment Agency was still in litigation over the
amount of pass through for various affected taxing
agencies within the adopted Redevelopment Project Area.
The lawsuits were settled on or about January 27, 1993.
Through this period of time, the Agency was negotiating
for the acquisition of property along the south side of
High Street extending east and west of Moorpark Avenue.
The property contains approximately 5.04 acres and is
zoned Planned Commercial Development (CPD) and
Industrial Park (M -1)
The Agency initiated a recruitment program to expand
staff by the addition of a redevelopment manager and
secretary in order to fulfill the needs for the
impending increase in operation and programs.
The Agency was also preparing to issue a $10,000,000
Tax Allocation Bond in order to help finance the
anticipated land acquisition, initiate start up
programs and be in a position to help fund various
public works projects that would aid in the elimination
of blight in the Proje -" area.
B. Housing Activities
The Moorpark Redevelopment Agency, due to the on going
legal actions against the Plan, did not receive any tax
increment funds for the most of Fiscal Year 1992/1993.
Tax increment funds were received by the Agency on or
about June 28, 1993. Therefore, there were no funds
available for housing projects from tax increment
revenues or bond proceeds.
The City of Moorpark, in its efforts to address the
needs for low and moderate housing in the community,
did establish several housing programs as follows:
1. Le Club Apartment Proj_tct,
This is a 370 unit apartment complex that has 37
very low- income and 37 moderate - income rental
units with a 3f' year agreement that expires in
2015.
2. Charles Street Seniors
.,A _partments..
This senior apartment complex houses 30 low- income
senior rental «nits (owned by Ventura County
Housing Authority. of which the City is a member
agency).
3. Villa Campesina Subdivision.
This subdivision consists of a total of 62 low -
and very low- income, owner occupied houses, which
the owners helped to build through a program
called "sweat equity" (originally 25 of the homes
were very low- income units and 37 were low- income
units). Community Development Block Grant funds
were used to provide deferred payments and second
mortgages.
4. Griffin Campus__. Hills Subdivision.
Five single - family homes were sold in 1990 to
moderate - income, first time home buyers (the
program agreements are for 30 years). The City
holds a second mortgage for $30,000 for each of
these units and will share in equity when sold.
5. Westland _ Market -Rate ..and-.-Affordable Housing
Project
In 1991 the City approved the Westland project
which is required to include 10 single - family
units and 90 multi- family units for affordable to
moderate- income, first time home buyers.
1
6. Gisler Housinq__Development
After the end of the 1992/1993 Fiscal year, the
Moorpark Redevelopment Agency purchased
approximately 29 acres of land of which 7 to 8
acres is to be devcted to low and moderate income
housing.
7. Griffin Single__F.amily Housing-Unit
The City of Moorpark recently purchased a single
family housing unit that was in default by the
owners. The City is preparing to resell the unit
to a low to moderate income family.
While the Moorpark Redevelopment Agency has been delayed in
its housing program, the City of Moorpark for the last
several years has earnestly addressed the needs of
affordable housing in the community.
The Agency has identified some $2,367,478 in tax increment
revenue set -aside funds and twenty percent (20 %) bond
proceeds for housing projects for Fiscal Year 1993/1994.
C. Economic Development Activities
The Moorpark Redevelopment Agency and City of Moorpark
initiated various Economic Development Programs and
developed a list of over 100 programs and projects that
would encourage new development, increase the
employment opportunities and expand the economic base
of the Project Area !Many of these programs are
ongoing and are in conjunction with the Moorpark
Chamber of Commerce.
SECTION IV
ANNUAL REPORT OF HOUSING ACTIVITY
OF COMMUNITY REDEVELOPMENT AGENCIES
FOR FISCAL YEAR ENDED 06/30/93
Attached is the form for reporting to the Department of Housing
and Community Development (HCD). As can be seen, the Moorpark
Redevelopment Agency is included in a category that shows no
activity for this reporting year. This is because the County of
Ventura did not release the Tax Increment Revenues owing to the
Agency until after the end of tf:e reporting year.
A statement of this fact is attached to the reporting form as an
explanation of the lack of hosing activities in the Moorpark
Redevelopment Project Area.
6
ANNUAL REPORT OF HOUSING ACTIVITY
OF COMMUNITY REDEVELOPMENT AGENCIES
FOR FISCAL YEAR ENDED 06 30_ _x.__93 _
Agency Name and Address: County of Jurisdiction:
Moorpark Redevelopment Agency C,nlntV of Venf„ra
799 Moorpark Ave.
Moorpark, CA 93021
Pursuant to Health and Safety Code Section 33080. 1, redevelopment agencies must annually report on their housing activities and Low
& Moderate Income Housing Fund balances, and per Section 33080.3 file a copy of this report with the Department of Housing and
Community Development (HCD). Section 33080.6 requires HCD to annually compile and publish a report of redevelopment agencies'
housing activity.
Please answer each of the following questions to determine which HCD Schedules your agency must prepare to provide a complete report
of housing activity and fund balances for the reporting period.
How many active adopted project areas did the agency have during this reporting period? 0
(A project area is considered "active" if it received any tax increment revenues, made any deposits to
or expenditures from the L&M Fund, or has any development activity in progress.)
If 1 or more, prepare and submit a separate copy of SCHEDULE HCD -A for each active project area.
If none, you need not submit Schedule HCD -A.
2. Did the agency conduct any housing activity outside of adopted redevelopment project areas?
Yes. Prepare and submit one copy of SCHEDULE HCD -B for the agency.
No. You do not need to submit Schedule HCD -B
Did the agency have any active project areas, or housing activity outside of redevelopment project areas, or any funds in the
Low & Moderate Income Housing Fund'?
Yes. Prepare and submit one copy of SCHEDULE HCD -C for the agency.
_X No. You need not submit Schedule HCD -C.
To the best of my knowledge the representations made in the above statement and the disclosures contained in the HCD schedule(s)
submitted herewith are true and correct.
November 1. 1993. C
Date signature of Authorized gency, presentative
Redevelupment Manager
litlr-
(805) 529 -6864 ex. 225
Telephone number
14(l) ,
P.ge I of I
January 22, 1994
MOORPARK
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
Department of Housing
and Community Development
Division of Housing Policy Development
Thomas B. Cook, Deputy Director
1800 Third Street, Room 430
P.O. Box 952053
Sacramento, CA 94252 -2053
Dear Mr. Cook:
This is a letter of explanation of the responses listed on your
HCD -Cover for the Annual Report Of Housing Activity Of Community
Redevelopment Agencies For Fiscal Year Ended 06/30/1993, Page 1
of 1.
The Moorpark Redevelopment Agency was enacted by Ordinance No. 87
on March 18, 1987. The Redevelopment Plan for the Moorpark
Redevelopment Project was adopted by the Moorpark City Council by
Ordinance No. 110 on June 7, 1989
Shortly after the Moorpark Redevelopment Plan was adopted,
several affected taxing agencies filed a lawsuit against the Plan
as adopted. The litigation was in the courts for some three
years, and during that time ili tax increment funds were
impounded.
In late Fiscal Year 1992/1993, the Agency came to settlement with
all affected taxing agencies and on or about June 28, 1993, the
tax increment revenues owed to the Agency were released by the
County of Ventura. These funds were not placed in the
appropriate fund accounts unti.1 -fter July 1, 1993 (Fiscal Year
1993/1994).
8
PAUL W. LAWRASON JR. SCOTT MONTGOMERY PATRICK HUNTER BERNARDO M. PEREZ JOHN E. WOZNIAK
Mayor Mayor Pro Tem Councilmember Councilmember Councilmember
Prtnfed on RoeveW P-
Therefore, according to the guidelines for completion of
Schedules HCD -A through HCD -C, the Agency was not active for this
period of time.
If you have any question regarding this matter, please contact my
office and (805) 529 -6864, ext, :12�.
Sincerely,
Steven G. Hayes
Redevelopment Manager
Moorpark Redevelopment Agency
9
SECTION V
INDEPENDENT AUDIT PREPARED BY
KPMG PEAT MARWICK
The remainder of this report is allocated to the independent
audit prepared by KPMG Peat Marwick in accordance with the
California Community Redevelopment Law Section 33080.1 (a) (1).
As stated in the Executive Summary, the Independent Audit Report
was prepared by KPMG Peat Marwick, Certified Public Accountants,
which audit was conducted in accordance with generally accepted
auditing standards and the Rules Governing Audit Reports
promulgated by the State Board f Accountancy.
The results of the audit performed by KPMG Peat Marwick indicated
that, with respect to the items tested, the Moorpark
Redevelopment Agency complied, in all material respects, with the
provisions of laws and regulations contained in the Guidelines
for Compliance Audits of California Redevelopment Agency issued
by the State Controller's Offi -r, Division of Local Government
Fiscal Affairs.
With respect to items not tested, nothing come to the attention
of KPMG Peat Marwick that caused them to believe that the
Moorpark Redevelopment Agency had not complied, in all material
respects, with all provisions of lair and standards governing the
financial activities of the Agency.
The Audit Report prepared is a !nattez of public record and its
distribution is not limited.
i
�fl�''Peat Marwick
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Annual Financial Report
June 30,1993
(With Independent Auditors' Report Thereon)
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Anual Financial Report
June , (U, I LW
Table of Contents
Pa g,,(2
Independent Auditors' Report
Component Unit Financial Statements:
Combined Balance Sheet - Governmental Fund Types and Account Group
Combined Statement of Revenues, Expenditures and Changes in Fund
Balances - All Governmental Fund Types
Statement of Revenues, Expenditures and Changes in Fund Balance
(Accumulated Deficit) - Budget and Actual - Capital Projects Fund
Notes to Component Unit Financial Statements
Independent Auditors' Report on Compliance 11
PM4r Peat Marwick
Certified Public Accountants
125 Sot.iri f ir.l,�,�rUt� ireet
nr,;jkde : ;. rA _30011
INDEPENDENT AUDITORS' REPORT
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, California (Agency), a component unit of the City of Moorpark,
California, as of and for the year ended June 30, 1993, 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. 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,
California as of June 30, 1993 and the results of its operations for the year then ended in conformity
with generally accepted accounting principles.
October 29, 1993
<•,,,elij F1 z. V. k I
Assets and Other Debits
Cash and investments (note 3) 5
Restricted cash and investments (note 3)
Interest receivable
Taxes receivable
Amount available for debt service
Amount to be provided for retirement of
general long -term debt
Total assets and
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Competent Unit of
the City of Ma)rpark, Californiat
Combined balance tihvet
Governmental Fund Type and Account Group
lune 10 t`+9:
Governmental Fund Tvoes
Special
Capital
Debt
Revenue
Projects
Service
Fund
Fund
Fund
—
101,97 471
37,654
1,780,651
7,114
917A61
4,209
1144
-
-
14
—
Long -Term
Total
Debt Account
(memorandum
Group
only)
10,697,471
—
2,618,112
—
37,654
—
7,114
810,761
810,761
9,189,239 9,189,239
other debits 5 1,784,860 10738,11.10 637A61 10,000,000 23,360,351
Liabilities and Fund Balances
Liabilities.
Accounts payable 9
Advances to the City of Moorpark
Tax allocation bonds payable (note 4)
Total liabilities
Fund balances:
Reserved for low /moderate income
housing (note 5)
Reserved for debt service (note 4)
Unreserved - designated for capital
Projects
Total fund balances
Total liabilities and fund
81.IX7 26,700 — 10707
2,237,851
— 10,()00,000 10,000,000
2 319,1 ?1t 2b,700 10,i)00,0W 12,345,7,38
1,784,860 — — 1,784,860
310,761 — 810,761
8A 18,992 — — 8A18,992
1,784,860 8A18.992 810,761 — 11,014,613
balances S 1,784,860 10,738,030 837A61 10,000,000 23,360,351
See accompanying notes to component unit financial statements
N
REDEVELOPMENT AGENCY OF
THE CM OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Combined Statement of Revenue, Lxpendr.ur(, and
Changes in Fund Balances -
All Govemmental Fund Typ e
Year ended Juno 10 1`+91
Accumulated deficit, July 1, 1992
Fund balanm, June 30, 1993
(2,171) — (2371)
5 1,784,860 8A18,992 810,761 11,014,613
See accompanying notes to component unit financial statements.
i
Governmental Fund Types
Special
Capital
Debt
Total
Revenue
Projects
Service
(memorandum
Fund
Fund
Fund
only)
Revenues
Property taxes $
1,469,789
—
1A69,789
Interest
4209
101,244
—
105A53
Total revenues
4209
071,033
—
1575,242
Fxpendnures.
General government
1;9 ,262
—
159,262
Public ---r-,ices
4,062
—
4A62
Capital outlay
26,072
—
26,072
Debt service
Interest on payable to City of Moorpark
99,714
—
99,714
Bond issuance costs
-
—
26,700
26,700
Total expenditures
—
289,110
26,700
315,810
Fxcess (deficiency) of revenues over
expenditures
4'104
128192,1
(26,700)
1259,432
Other financing sources - proceeds from issuance of
long -term debt (note 4)
1,780.1,51
7,139,440
837A61
9,757,552
Excess of revenues and other financing sources
over expend itures
1 784 K60
s,421;163
810,761
11,016,984
Accumulated deficit, July 1, 1992
Fund balanm, June 30, 1993
(2,171) — (2371)
5 1,784,860 8A18,992 810,761 11,014,613
See accompanying notes to component unit financial statements.
i
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Statement of Revenues, Fxpenditures and
Changes in Fund Balance (Accumulated Deficit) - Budget and Actual
Capital Projects f=und
Year ended June ,10, 1993
Revenues:
Property taxes $
Interest income
Total revenues
Expenditures:
General government
Public services
Capital outlay
Debt service - interest on payable
to City of Moorpark
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources - proceeds
from issuance of long -term debt
Excess (deficiency) of revenues
and other financing sources
over expenditures
Accumulated deficit, July 1, 1992
Fund balance (accumulated deficit),
June 30, 1993
Budget
Variance -
favorable
Actual (unfavorable)
1,469,789
100,000 101,244
100,000 1,571,033
35,000
159,262
62,318
4,062
1,770,932
26,072
88,000
99,714
1,956,250
289,110
(1,856,250)
(1,856,250)
(2,371)
1,281,923
7,139,440
8,421,363
(2,371)
1,469,789
1,471,033
(124,262)
58,256
1,744,860
(11,714)
1,667,140
3,138,173
7,139,440
10,277,613
$ (1,858,621) 8,418,992 10,277,613
See accompanying notes to component unit financial statements.
4
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Notes to Component Unit Financial Statements
June 3(1, 11)93
(1) Nature and Operations of the Agency
The Redevelopment Agency of the City of Moorpark (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 No. 87 -387. 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 from the City of Moorpark. Accordingly, the financial activities
of the Agency are included in the annual financial report of the City of Moorpark.
(2) Summary of Significant Accounting Policies
Funds and Account Group
Each fund and account group is considered a separate accounting entity as discussed below:
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, including acquisition of properties,
costs of site improvements and other costs of benefit to project areas and administrative
expenditures incurred in sustaining Agency activities.
Long -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.
Basis of Accoun"n
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.
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Dotes to Component Unit Financial Statements, Continued
Budeetary Data
The Governing Board 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
Governing Board. Supplemental appropriations, where required during the period, are also
approved by the Governing Board. 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).
Capital Project expenditures in excess of appropriations for the year were as follows:
General government $ 124,262
Debt service - interest on payable to City of Moorpark 11,714
Total (Memorandum Only) Columns
The component unit 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.
Cash and Investments
The cash of the Agency is pooled with that of the City of Moorpark for investment purposes.
Excess cash and restricted assets consist primarily of investments in the Local Agency
Investment Fund, certificates of deposit and other money market investments. Investments are
stated at cost, which approximates market value.
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 (see note 2).
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 I 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.
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Notes to Component Unit Financial Statements, Continued
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.
Advances from the City of Moorpark
The City of Moorpark has paid for services and start up expenditures incurred by the Agency.
The payable is due on demand, or on June 30, 1994 if demand is not made, and is expected to be
repaid as rental property tax revenues are received. The advance accrues interest at the Local
Agency Investment Fund rate, compounded monthly
(3) Cash and Investments
The Agency follows the practice of pooling cash with the City of Moorpark for investment
purposes. Interest income earned on pooled cash and investments is allocated to the various
funds based on each fund's average cash and investment balance.
Cash and Investments with Fiscal Agent
The Agency's funds are also held by trustees 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 specifying the types of investments the trustees or fiscal agents may make.
Credit Risk, Carrying Amount and Market Value
Cash and nonnegotiable certificates of deposit are classified in three categories of credit risk as
follows:
Category I - Insured or collateralized with securities held by the entity or by its agent in
the entity's name
Category 2 - Collateralized with securities held by the pledging financial institution's
trust department or agent in the entity's name
Category 3 - Uncollateralized.
Investments are also classified in three categories of credit risk as follows:
Category 1 - Insured or registered, or securities held by the entity or its agent in the
entity's name
Category - Uninsured and unregistered, with securities held by the counterparty's trust
department or agent in the entity's name
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Notes to Component Unit Financial Statements, t ontinued
C:ateyory 3 - Uninsured and unregistered, with securities held by the counterparty, or by
its trust department or agent but not in the entity's name. Investments in pools managed
by other government, or in mutual funds are not required t,: be categorized.
Not required Carrying
Category Category Category to be amount,
Actual 1 2 3 categorized June 30,1993
Cash 5 WNW — 10,248,401 , — 10,348,408
Investments held by
financial
institutions (fiscal
agent) on behalf of
the Redevelopment
Agency of the City
of Moorpark
(restricted cash) —
Bank
balance/
market value
June 30,1993
10,348,408
837,461 -- 837,461 937,461
State Treasurer's
Local Agency
Investment Fund — — — 2,129,714 2,129,714 2,129,714
Total cash and
investments 5 100,000 — 11,085,869 2,129,714 13,315,583 13,315,583
(4) Tax Allocation Bonds Payable
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.
The Agency is in compliance with the covenants contained in debt indentures, which require the
establishment of certain specific accounts for the Tax Allocation fends.
1993 Bonds
On June 1, 1993, the Agency issued $10,000,000 aggregate principal amount of the Agency's
Moorpark Redevelopment Project, 1993 Tax Allocation Bonds (the Bonds). The purpose of the
Bonds was to finance a portion of the costs of implementing the Redevelopment Plan, including
the redevelopment of low- and moderate- income housing projects. The Bands bear interest at
8
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Notes to Component Unit Financial Statements, Continued
rates ranging from 3.30`7: to 6.00% per annum payable semiannually on April 1 and October l of
each year commencing on October 1, 1993 and are subject to mandatory sinking fund redemption
commencing on October 1, 2008 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 subject to optional redemption on any interest payment date on or after October 1,
2003, by lot within a maturity, at the option of the Agency at a redemption price equal to the
principal amount to be redeemed together with accrued interest to the redemption date
(expressed as a percentage of the principal amount of &)nds to be redeemed) as follows:
Redemption
Redemption dates price
October 1, 2003 and April 1, 2004 1027
October 1, 2004 and April 1, 2005 101
October 1, 2005 and thereafter 1(i0
A reserve fund is required to be maintained in an amount equal to the lesser of (i) the maximum
annual debt service ($788,200) or (ii) the maximum amount permitted to be deposited in the
Debt Service Reserve Account ($1,000,000). The balance or the reserve fund at June 30, 1993 is
$788,200.
Debt service payments on the 1993 Tax Allocation Bonds payable will be made from the Debt
Service Fund. Annual debt service requirements to maturity are as follows:
Fiscal year
Principal
Interest
Total
1993 -94
$ —
193,380
193,380
1994 -95
410,000
573,539
983,539
1995 -96
215,000
564,929
779,929
1996 -97
225,000
555,469
780,469
1997 -98
240,000
545,119
785,119
Thereafter
8,910,000
7,301,281
16,211,281
Total
$ 10,000,000
9,733,717
19,733,717
The following is a schedule of changes in long -term debt of the Agency for the fiscal year ended
June 30,1993:
Balance,
July 1, 1992
Addition
Payments
Balance,
June 30,1993
$ — 10,000,000 — 10,0()0,000
REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK, CALIFORNIA
(A Component Unit of
the City of Moorpark, California)
Notes to Component Unit Financial Statements, Continued
(5) Low- and Moderate - Income Housing Set Aside
The Health and Safety Code Section 33334.2 requires a Redevelopment Agency to use at least
20% 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 commitment for its low- and moderate - income housing program from the issuance of
the 1993 Tax Allocation Bonds described in note 4 amounted to $1,784,860 and is reflected as a
reservation of fund balance in the Special Revenue Fund.
(6) Pass - Through Agrreements
On January 23, 1991, the Agency entered into an agreement with the Ventura County
Superintendent of Schools Office (Superintendent) whereby 2% of each fiscal year's tax
increment generated within the Agency Redevelopment Project Area shall be paid into the
Superintendent's Building Fund. The pass- through amount accrued for the fiscal year ended
June 30, 1993 was $49,312.
On June 5, 1992, the Agency entered into an agreement with the Moorpark Mosquito Abatement
District whereby 20% of each fiscal year's tax increment shall be paid into the Agency's
Housing Fund to be used for the purpose of increasing and improving the community's supply of
low- and moderate - income housing, with 87-1/2% of the remainder to be paid to the District.
The pass - through amount accrued for the fiscal year ended June 30, 1993 was $18,100, including
the appropriate amount set aside for low- and moderate - income housing.
On January 26, 1993, the Agency entered into an agreement with the Moorpark Unified School
District whereby 14 %, of each fiscal year's tax increment generated within the Agency
Redevelopment Project Area shall be paid to the District commencing with fiscal year 1995 -96.
Accordingly, no pass - through amount was required in fiscal year 1992 -93.
On January 27, 1993, the Agency entered into an agreement with the County of Ventura whereby
55.82% of each fiscal year's tax increment in excess of $1,750,000 shall be paid to the County on
behalf of the County Library District, County Fire Protection District and County Flood Control
District. For the fiscal year 1992 -93, no pass - through amounts were required to be made to these
County Taxing Entities as the tax increment generated did not exceed the minimum threshold
within the Agency Redevelopment Project Area
On February 11, 1993, the Agency entered into an agreement with the Ventura County
Community College District whereby 14% of each fiscal year's tax increment, generated within
the Agency Redevelopment Project Area and restricted for capital improvements at the
District's Moorpark College, shall be paid to the District commencing with fiscal year 1993 -94.
Accordingly, no pass - through amount was required in fiscal year 1992 -93.
1 ()
Peat Marwick
Certified Public Accountants
125 Soull F guorua Street
I us Angelas. ( "A 9(r: )1 I
INDEPENDENT AUDITORS' REPORT ON THE REDEVELOPMENT AGENCY OF THE
CITY OF MOORPARK, CALIFORNIA'S COMPLIANCE BASED ON THE AUDIT OF THE
COMPONENT UNIT FINANCIAL STATEMENTS
Honorable Board of Directors
Redevelopment Agency of the
City of Moorpark, California:
We have audited the component unit financial statements of the Redevelopment Agency of the City
of Moorpark, California (Agency) as of and for the year ended June 30,1993 and have issued our report
thereon, dated October 29, 1993. We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the component unit financial statements are free of material misstatement.
Compliance with laws, regulations, contracts and grants applicable to the Agency is the
responsibility of the Agency's management. As part of obtaining reasonable assurance about whether
the component unit financial statements are free of material misstatement, we performed tests of the
Agency's compliance with provisions of laws and regulations contained in the Guidelines for
Compliance Audits of California Redevelopment Agencies issued by the State Controller's Office,
Division of Local Government Fiscal Affairs.
The results of our tests indicated that, with respect to the items tested, the Agency complied, in all
material respects, with the provisions referred to in the preceding paragraph. With respect to items
not tested, nothing came to our attention that caused us to believe that the Agency had not complied,
in all material respects, with those provisions.
This report is intended for the information of the Board of Directors and management of the Agency
and the State Controller's Office. However, this report is a matter of public record and its
distribution is not limited.
-k�1746r -R&z �?
October 29,1993
11
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