Loading...
2012/10/03 Successor Agency Oversight Board Agenda Packet Distribution(ec/cc): Board Members(7); City Manager; .. yA City Attorney; Board Attorney; N•.•, / Board Clerk; Public Binder; City Website; OB/SA File City of Rohnert Park • 130 Avram Avenue s Rohnert Park, California 94928 PHONE: (707) 588-2227 , FAX: (707) 792-1876 • WEB: www.rpcity.org OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY CITY OF ROHNERT PARK (Successor Agency of the Former Community Development Commission of the City of Rohnert Park) SPECIAL MEETING AGENDA Wednesday, October 3, 2012, 2:30 p.m. MEETING LOCATION: CITY HALL - COUNCIL CHAMBER 130 Avram Avenue, Rohnert Park, California The Oversight Board welcomes your attendance, interest and participation at its public meetings. Oversight Board agendas and minutes may be viewed at the City of Rohnert Park website at: www.rpcity.org. PUBLIC HEARINGS The Oversight Board may discuss and/or take action on any or all of the items listed on this agenda. If you challenge decisions of the Oversight Board or the Successor Agency City of Rohnert Park in court, you may be limited to raising only those issues you or someone else raised at public hearing(s)described in this agenda, or in written correspondence delivered to the Successor Agency City of Rohnert Park, at, or prior to the public hearing(s). PUBLIC COMMENTS For public comment on items listed or not listed on the agenda, or on agenda items if unable to speak at the scheduled time(limited to three minutes per appearance and a 30 minute total time limit,or allocation of time based on number of speaker cards submitted) PLEASE FILL OUT A SPEAKER CARD PRIOR TO SPEAKING *SEE NOTE AT THE END OF THIS AGENDA Copies of all staff reports and documents subject to disclosure that relate to each item of business referred to on the agenda are available for public inspection before each regularly scheduled Board meeting at City Hall, located at 130 Avram Avenue. Any writings or documents subject to disclosure that are provided to all, or a majority of all, of the members of the Board regarding any item on this agenda after the agenda has been distributed will also be made available for inspection at City Hall during regular business hours. ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication devices upon entering the Rohnert Park Council Chamber. Use of these devices causes electrical interference with the sound recording and TV broadcast systems. Special Meeting Agenda October 3,2012 Oversight Board for the Successor Agency City of Rohnert Park Page 2 of 2 2:30 PM 1. CALL TO ORDER/ROLL CALL(Zane_Mackenzie_Babonis_Calvert_Jenkins_ Jolley_Thompson ) 2. PUBLIC COMMENTS Persons wishing to address the Board on any Consent Calendar item or on Successor Agency City of Rohnert Park business not listed on the Agenda may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Oversight Board on any report item listed on the Agenda should submit a "Speaker Card" to the Clerk of the Board before announcement of that agenda item. 3. APPROVAL OF MINUTES A. Regular meeting of Oversight Board for Successor Agency City of Rohnert Park held on July 27,2012 4. MEETING ITEMS A. Public Comments on the Due Diligence Review of the Low and Moderate Income Housing Fund 1. Staff Report 2. Public Comments 3. Board Discussion 5. NEW MATTERS FOR FUTURE CONSIDERATION 6. PUBLIC COMMENT ON NON-AGENDA ITEMS Members of the public may address the Oversight Board on matters that are within the Oversight Board's jurisdiction and not on today's calendar. Each speaker shall have up to three minutes to make pertinent public comments unless the Oversight Board adopts a shorter period. It is strongly recommended that members of the public who wish to address the Oversight Board should fill out a "Speaker Card" provided by the Clerk,and submit the completed card to the Clerk. 7. ADJOURNMENT DISABLED ACCOMMODATION If you have a disability which requires an interpreter or other person to assist you while attending this Board meeting,please contact the Clerk of the Board at(707)588-2205 at least 72 hours prior to the meeting to ensure arrangements for accommodation by the City. Please notify the Clerk's Office as soon as possible if you have a visual impairment requiring meeting materials to be produced in another format(Braille,audio-tape,etc.) i9 rt ei CAII►nRnt' DRAFT MINUTES OF THE SPECIAL MEETING OVERSIGHT BOARD TO THE SUCCESSOR AGENCY CITY OF ROHNERT PARK Friday,July 27,2012 Rohnert Park City Hall, Council Chambers 130 Avram Avenue, Rohnert Park,California 1. CALL TO ORDER The regular meeting of the Oversight Board to the Successor Agency City of Rohnert Park was called to order by Chair Shirlee Zane at 9:03 a.m.on July 27,2012 in the Council Chambers, Rohnert Park City Hall, 130 Avram Avenue, Rohnert Park,California. Present: Shirlee Zane,Chair Absent: Kate Jolley,Board Member Jake Mackenzie, Vice Chair Mike Thompson, Board Member Linda Babonis, Board Member Denise Calvert, Board Member Darrin Jenkins, Board Member Staff present:City Manager Gabriel Gonzalez;Clerk of the Board Eydie Tacata;Finance Director Cathy Orme;Oversight Board Counsel Betsy Strauss 2. PUBLIC COMMENTS There were no comments from the public. 3. APPROVAL OF MINUTES Chair Zane announced the item. ACTION: Moved/seconded(Mackenzie/Jenkins)and carried(5-0 vote, 2 absent)to approve minutes of the meeting of June 22,2012. 4. REGULAR AGENDA A. Briefing on Assembly Bill 1484 Oversight Board Counsel Betsy Strauss provided a brief overview of provisions of Assembly Bill 1484 regarding upcoming Oversight Board responsibilities,reviewed the contents of handout entitled "Summary of AB 1484,July 27, 2012"which was distributed to the Oversight Board in their meeting packets,and answered questions from the Board Members. B. Approving the Recognized Obligation Payment Schedules(ROPS)of the Successor Agency City of Rohnert Park for the Period January 1—June 30,2013 Chair Zane announced the item. City Manager Gonzalez gave the staff report and introduced Finance Director Cathy Orme to answer questions regarding the ROPS. ACTION: Moved/Seconded(Mackenzie/Calvert)and carried(5-0 vote,2 absent)to adopt Resolution No. OSB 2012-08: A Resolution of the Oversight Board for the Successor Agency City of Rohnert Park Approving Recognized Obligation Payment Schedule(ROPS)of the Successor Agency City of Rohnert Park for the Period January 1—June 30,2013. Oversight Board—DRAFT Minutes of Regular Meeting(Page 2 of 2) July 27,2012 Successor Agency City of Rohnert Park 5. NEW MATTERS FOR FUTURE CONSIERATION The Board Members discussed the scheduling of the future Oversight Board meetings and public sessions as required by AB 1484 to gather comments from the public and consider approval of the Due Diligence Reviews. The Board Members suggested that staff use the Doodle.com online meeting scheduling application to poll Board Members for their availability for these particular Oversight Board meetings. 6. PUBLIC COMMENT ON NON-AGENDA ITEMS There were no comments from the public. 7. ADJOURNMENT ACTION: The Board members concurred to adjourn the meeting at 9:55 a.m. Eydie Tacata,Clerk of the Board Shirlee Zane,Chair Successor Agency City of Rohnert Park Oversight Board for the Successor Agency of Rohnert Park anNwe ri r'xr _ ITEM NO.4A Mission Statement "We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow." CITY OF ROHNERT PARK OVERSIGHT BOARD AGENDA Meeting Date: October 3,2012 Submitted By: Gabriel A. Gonzalez, City Manager Prepared By: Gabriel A. Gonzalez, City Manager Agenda Title: Public Comments on the Due Diligence Review of the Low and Moderate Income Housing Fund RECOMMENDED ACTION: Receive comments at a public comment session on the Due Diligence Review of the Low and Moderate Income Housing Fund,assisted by the Independent Accountants'Report on Applying Agreed-Upon Procedures pursuant to AB 1484-Low and Moderate Income Housing Fund("AUP Report")provided by Vavrinek,Trine, Day&Company, LLP(VTD)for the Successor Agency City of Rohnert Park. BACKGROUND: Health and Safety Code §34179.5 requires the Successor Agency to conduct a due diligence review of the Low and Moderate Income Housing Fund to determine the unobligated balances available for transfer to taxing entities. The Successor Agency engaged VTD,a licensed accountant firm approved by the County Auditor-Controller, to perform Agreed-Upon Procedures and produce the attached AUP Report. This AUP Report was submitted by the required deadline of October 1, 2012 to the Oversight Board,the County Auditor-Controller,the State Controller,and State Department of Finance pursuant to Health and Safety Code §34179.6. Health and Safety Code §34179.5 requires the due diligence review to be approved by the Oversight Board and then transmitted to the County Auditor-Controller,the State Controller,and State Department of Finance by October 15, 2012. Prior to the Oversight Board approval of the review, a public session must be convened to receive comments at least five business days before Oversight Board approval. This Special Meeting of the Oversight Board on October 3, 2012 includes a public session to receive comments on the due diligence review. A subsequent Special Meeting is scheduled for October 10,2012 for the Oversight Board approval of the due diligence review. DISCUSSION: VTD provided attached AUP Report, which the lists all encumbered and unencumbered low and moderate income housing fund assets and states whether or not those assets are encumbered by Enforceable Obligations. The amount shown in the AUP Report to be remitted to the County for disbursement to taxing entities is$519,954. City Manager Approval Date: 10/1/12 City Attorney Approval Date: 10/1/12 Attachments: Independent Accountants' Report on Applying Agreed-Upon Procedures pursuant to AB 1484- Low and Moderate Income Housing Fund("AUP Report") V Successor Agency to the Community Development Commission of the City of Rohnert Park Independent Accountants' Report on Applying Agreed-Upon Procedures pursuant to AB 1484 (Low and Moderate Income Housing Fund) June 30,2012 VAVR1NEK, TRINE, DAY &COMPANY, LLP Certified Public Accounranrs VALUE THE DIFFERENCE INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES Oversight Board of the Successor Agency to the Community Development Commission of the City of Rohnert Park City of Rohnert Park, California We have performed the Agreed-Upon Procedures enumerated in Exhibit A, which were agreed to by the California State Controller's Office,the California Department of Finance,the County Auditor-Controller, and the Successor Agency to the Community Development Commission of the City of Rohnert Park to determine the Successor Agency Low and Moderate Income Housing Fund's unobligated balances that are available for transfer to taxing entities, solely to assist you in ensuring that the Successor Agency is complying with its statutory requirements with respect to Health and Safety Code Section 34179.5. Management of the Successor Agency is responsible for the accounting records pertaining to statutory compliance pursuant to Health and Safety Code Section 34179.5. This Agreed-Upon Procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Exhibit A, and Exhibits B through B-4 identify the procedures and findings. We were not engaged to, and did not conduct an audit, the objective of which would be the expression of an opinion as to the appropriateness of the results summarized in Exhibit A, and Exhibits B through B-4. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Successor Agency Oversight Board, the Successor Agency, the California State Controller's Office, the California Department of Finance, the County Auditor-Controller, and is not intended to he, and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report,which is a matter of public record. Ve:pir„44.t i _,�f j S Ci L.L . Pleasanton,California September 26,2012 1 5000 Hopyard Road,Suite 335 Pleasanton,CA 94588 Tel-925.734.6600 Fax:925.734.661 1 www.vtdcpa.com FRESNO • LAGUNA HILLS • PA1.O ALTO • PLF.ASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND Our procedures and findings are as follows: A. Low and Moderate Income Housing Fund of the Successor Agency For the Low and Moderate Income Housing Fund,the following procedures were performed: 1. Obtain from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency(RDA) to the Successor Agency on February I, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed-Upon Procedures(AUP)report the amount of the assets transferred to the Successor Agency as of that date. Findings — We obtained from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency to the Successor Agency on February 1,2012. We agreed the amounts on this listing to account balances established in the accounting records of the Successor Agency noting the total balance of all assets that were transferred to the Successor Agency on February 1, 2012, was $34,066,061, and consisted of cash and cash equivalents, restricted cash and cash equivalents,loans and notes receivable, and real property. We noted the housing activities and assets (i.e. assets and functions, rights. powers. duties, and obligations) of the former RDA were transferred to the City of Rohnert Park Housing Fund on February 1, 2012. We obtained Resolution 2012 - 10 authorizing the City to retain the housing assets and functions of the former RDA. See Exhibit B for details on these assets. 2. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred,perform the following procedures. A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer,the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to the city, county, or city and county that formed the redevelopment agency for the period from February 1,2012 through June 30,2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. 2 SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Findings — The Successor Agency asserted the State Controller's Office has not completed a review of transfers required under both Sections 34167.5 and 34178.8. The Successor Agency also asserted no transfers were made from the former RDA or the Successor Agency to the city for the period from January I,2011 through January 31,2012. On February 1, 2012, the Successor Agency transferred the Low and Moderate Income Housing assets to the City of Rohnert Park in accordance with HSC 34176(a)(1). A listing of the transfers for the period February 1,2012 through June 30,2012 is included as Exhibit B of the AUP report. We noted the assets transferred to the City's Housing Fund included cash and cash equivalents from bond proceeds, affordable housing assistance loans, and real property used for existing low and moderate projects. For each transfer listed on Exhibit B of the AUP report, we obtained the legal document that formed the basis for the transfer. We obtained Resolution No. 2012-10 authorizing the City to retain the housing assets and functions of the former RDA. 3. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to any other public agency or to private parties for the period from January I. 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to any other public agency or private parties for the period from February I, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Findings — The Successor Agency asserted the State Controller's Office has not completed a review of transfers required under both Sections 34167.5 and 34178.8. The Successor Agency also asserted no transfers were made from the former redevelopment agency or the Successor Agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012, and the period February 1, 2012 through June 30, 2012, respectively. As such the procedures in step 3 were not performed. 3 SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND 4. Perform the following procedures: A. Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency in the format set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this summary. the financial transactions should be presented using the modified accrual basis of accounting. End of year balances for capital assets (in total) and long-term liabilities (in total) should be presented at the bottom of this summary schedule for information purposes. B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers accounts fully for the changes in equity from the previous fiscal period. C. Compare amounts in the schedule relevant to the fiscal year ended June 30, 2010, to the State Controller's report filed for the Redevelopment Agency for that period. D. Compare amounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. Findings—Procedure 4 is not applicable to the Low and Moderate Income Housing Fund. 5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When this procedure is applied to the Low and Moderate Income Housing Fund. the schedule attached as an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that assumed the housing function previously performed by the former redevelopment agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. The listings should be attached as an exhibit to the appropriate AUP report. Findings— For the Low and Moderate Income Housing Fund, we agreed the assets listed to the recorded balances reflected in the Successor Agency's accounting records. We noted the asset balance of the Successor Agency Low and Moderate Income Housing Fund as of June 30, 2012 was S1.205,453. See Exhibit B-1 for the listing of these assets. 4 SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND 6. Obtain from the Successor Agency a listing of asset balances held on June 30,2012,that are restricted for the following purposes: A. Unspent bond proceeds: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures,amounts set aside for debt service payments, etc.). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. B. Grant proceeds and program income that are restricted by third parties: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. C. Other assets considered to be legally restricted: i. The Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such Obtain documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by Successor the Agency as restricted. D. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of time for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. Findings - The Successor Agency asserts that the Successor Agency Low and Moderate Income Housing Fund does not have any restricted balances for unspent bond proceeds,grant proceed or program income, or any other assets restricted by third parties. As such, the procedures in step 6 were not performed. 5 SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND 7_ Perform the following procedures: A. Obtain from the Successor Agency a listing of assets as of June 30, 2012, that are not liquid or otherwise available for distribution(such as capital assets, land held for resale, long-term receivables, etc.)and ascertain if the values are listed at either purchase cost(based on book value reflected in the accounting records of the Successor Agency) or market value as recently estimated by the Successor Agency. B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously audited financial statement(or to the accounting records of the Successor Agency)and note any differences. C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions (this generally is not expected to occur), inspect the supporting documentation and note the circumstances, D. If the assets listed at 7(A) are listed at recently estimated market value, inspect the evidence (if any) supporting the value and note the methodology used. If no evidence is available to support the value anchor methodology, note the lack of evidence. Findings—The Successor Agency asserted that the Successor Agency Low and Moderate Income Housing Fund does not have assets that are not liquid or otherwise available for distribution(such as capital assets, land held for resale, long-term receivables, etc.) as of June 30, 2012. As such, the procedures in step 7 were not performed. 8. Perform the following procedures: A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain from the Successor Agency an itemized schedule of asset balances (resources) as of June 30, 2012, that are dedicated or restricted for the funding of enforceable obligations and perform the following procedures. The schedule should identify the amount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal document that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payment of that obligation. i. Compare all information on the schedule to the legal documents that form the basis for the dedication or restriction of the resource balance in question. ii. Compare all current balances to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. iii. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule(ROPS)approved by the California Department of Finance. iv. Attach as an exhibit to the report the listing obtained from the Successor Agency. Identify in the report any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. 6 SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND B. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements and perform the following procedures: i. Compare the enforceable obligations to those that were approved by the California Department of Finance. Procedures to accomplish this may include reviewing the letter from the California Department of Finance approving the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012, and for the six month period July 1,2012 through December 31,2012. ii. Compare the forecasted annual spending requirements to the legal document supporting each enforceable obligation. a. Obtain from the Successor Agency its assumptions relating to the forecasted annual spending requirements and disclose in the report major assumptions associated with the projections. iii_ For the forecasted annual revenues: a. Obtain from the Successor Agency its assumptions for the forecasted annual revenues and disclose in the report major assumptions associated with the projections. C. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and apply the following procedures to the information reflected in that schedule. i. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. ii. Obtain the assumptions for the forecasted property tax revenues and disclose major assumptions associated with the projections. iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose major assumptions associated with the projections. D. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances necessary for retention in order to meet the enforceable obligations by performing the following procedures. i. Combine the amount of identified current dedicated or restricted balances and the amount of forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations. ii. Reduce the amount of total resources available by the amount forecasted for the annual spending requirements. A negative result indicates the amount of current unrestricted balances that needs to be retained. iii. Include the calculation in the AUP report. Findings - The Successor Agency asserted that $174,709 of cash balances as of June 30, 2012, need to be retained to satisfy enforceable obligation of the Successor Agency Low and Moderate Income Housing Fund. See Exhibit B-2 for additional detail. 7 SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK EXHIBIT A AGREED UPON PROCEDURES PURSUANT TO AB 1484 LOW AND MODERATE INCOME HOUSING FUND 9. If the Successor Agency believes that cash balances as of June 30, 2012, need to be retained to satisfy obligations on the ROPS for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of July I, 2012 through December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying(I) any dollar amounts of existing cash that are needed to satisfy that obligation, and(2)the Successor Agency's explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachment to the AUP report. Findings - The Successor Agency asserted that$510,790 of cash balances needs to be retained to satisfy obligation on the ROPS for the period of July 1, 2012 to June 30, 2013, of the Successor Agency Low and Moderate Income Housing fund as of June 30, 2012. See Exhibit B-3 for additional details. 10. Include (or present) a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. Amounts included in the calculation should agree to the results of the procedures performed in each section above. The schedule should also include a deduction to recognize amounts already paid to the County Auditor-Controller on July 12, 2012, as directed by the California Department of Finance. The amount of this deduction presented should be agreed to evidence of payment. The attached example summary schedule may be considered for this purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund and for all other funds combined (excluding the Low and Moderate Income Housing Fund). Findings — We have included a schedule detailing the computation of the Summary of Balance Available for Allocation to Affected Taxing Entities. See Exhibit B-4. 11. Obtain a representation letter from Successor Agency management acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachments to the report. Included in the representations should be an acknowledgment that management is not aware of any transfers (as defined by Section 341795) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. Management's refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. Findings - We have obtained managements written representations acknowledging their responsibility as outlined in procedure#11. 8 N. _ § 14 14 i2 5 � 2 J — .... | | | \pi En \ \ \ 92 x K \ \ § \ \ \ / 0oo a a a o I n ( \ \ \ £ t ) q £»t 000 \ � 0E \ Z ion § 8 ) 3 = § §� k � k } "Rf � -r. • os /}} S▪ S Al § $$$ CC r - - - { ■ \\\ II ( $ R ) i \ o a » 3 § $ § } ; Ja. A � ) § L i fr% ° _ R ; ) � ° i ) § § ) f } � 4.7 / ) \) ;▪ laF - 54 - §■ } • ) a §2a \ f ( ) ` = o » * & 44 k | 4 7 0 7 2 2 $ z 2 z Exhibit B-I Successor Agency to the Community Development Commission of the City of Rohnert Park Low and N1oderate Income Housing Fund- Listing of Assets As of June 30,2012- Unaudited Note: Excludes all assets held by the entity that assumed the housing function of the former RDA Assets Cash and investments 911-101-0001 Cash $ 1,205,453 Total - $ 1,205,453 TOTAL ASSETS AT 6/30/2012: $ 1,205,453 10 u a2 u c :a 7 C bc ,O. o :4 C • - g .^ j >, CRB Y u Fa v • r- i `+: eri ac c u c " m • d o2 N i. a C N 5 C 9 G V N 9R M O_' cC O Y. 4.' ,,7, " to N o2 n O4U u UE =' S . >, .E.,0 � ., `n 4 c u i c G di c p, _ ,, c .2c ▪ ELVu ' ` C n Y C j C C c b . V y 3 E r C C7 .o E c r.a u S cLi n �C u O — u,_ 3 v •� .d -u.„ MU ti F ; .x 8 < uEry u E e c N > 3 u L ^ O. y C v c L L c 2 a v o U u `o " u c `o :c. oU u E � n CO a Cy a E. y Q - 'L J G .. a R . = h ,� j w u o .c 2 0 C7 0 p 7 Y ; � C V 9 c 7 C . L e - i =• 8. -- C t. .= C -5 V .O O J v m 2 ? L 7+ _ n E V y :_ �, H 0 E.y u a d 3 a a EN 'd c ,� v v :a. CO U g 3 u • m E °C •u 7 u v, C o o n > o & y Q .T O i 11 c N c V V 7 ,_, v O ti . OO as A co = En G y rO� N a ,? Q^ OC §. 7 .S IL U. N CL L U O p vt� L Q E. O >% o O r0 Q R C �C O S R. g R. C W R U u a 5 M1 i.7 •_Oi O L 7 O M 8 -. .+1 O• ." - O C. et e N - 2 3 z b C: 00 ' r - g• C Z = QQ U O - W < u U4C? 5 K▪ m O r a O a x o z H y� U 'J'. T O N I I I _ L' 4 N ,p h O. O- co {iI y r7 R . < A. to EA v. C 'V O N 3 it(' 8 V� M ^J, y a N Z. V'1 4. en4 00 N N V Q W " y. 0—, N N l'- - L. a Crl v „ O ti a P.0 S c, 3 ... d Q ', H r o r • o -43 ,7i Q C In en M M — S-1 C -Cl.O `a• a CC q. u 0 oE u O. .0U a F -C `o Y C u go ' ` Y• Y 4, ......�� MCA. 'O O• 'C me Z F 'Y' d O C O Q R i .r _ a qC to 7 / " chi M 7 c •c '+. S O e D Y• O �' y d aa '-1 Vi c I�' h' I=i « Y IE 5 -" - Q LO O CA 2 : e -' L' z b d F a 9 co c T. rA Y , ^ 'C �'j g C 3 O O y 7, StLS N N L- C!i T S Q ✓ esY W ` a N ., 7' In .O Is- kJ all \ A / / \ �g \ 2 a. / -c w � k ) U Li II E ) E 2q E V @CC . i \/ / \w & § « 1 \ 7 , \ = V. 0 zk CI, / / U0r / \ - 6 k & / 7 § r ^ \ b � 2 , xz o , ,..., e \ f / £ o ■ z o a - - 7 r > z ƒ 'etc « 2 0. � 2 % n $ d - » / C N ) e Es,/ k 7. \ Ow. O. Li; % C 7 z ( k § 2 ; \ CA U c a 0 ce 2 no C. k % &ilA } \a » - 2 $ \ CO "O 7 1, « 2 k } U } _ - w @ o v § k q ao\ kk IX � \ CO , \ / kk \ t 4 2 0 § kkR � / . - CJ j k \ 1. m e, as �' `? I.. :E O o o 1E O w ws z z z - z .. in1 1 1 CT L] e v v, o o.. N _O asO 1--.. N an tra 59 69 L00 :3 J s :, "C" a c3 a, = cu 0 O CO s s. O vv-,ct a) e0 n ca. y L 6J M o C 2 - y 0 0 :: a. s v°J, c _Oa C o .'C. W N 3 c .;. a� 5 'j cnni • = N y V u, < t. C c U N U`ocd 4- .c aa, l N N 6 c -0 y 3 C bQ O e6 O G adi C0 V c C T 0 Yd r-• ti O .Co M O .y ea R ,LIO >. v o (� 0 0 c C L 0. O y CC .• R L co Cd .fl - I= M O V p O .. [V O d Op c cG -- Y i V - at C 0. v > NN Co. i E aea CO y wea N O U) y -Cy to -. Cr Q U • car) �+ ea. '� 'O N t� ti e• 0 Li c - e� an 4°J X v e t • a. o f c E o s ,• �, o 1- o u 0 �' a c°) o ev w .. -c c 0 >, -a en .jv Cl2 G MI O t U) �O. „y„ U V i V y •E .... = d >> 'd vy�i +�•� ram+ 'O 0 :O >> e9 •E w y V N co L y ` av'i u C Cl. "0 0. I- O f 001 vn7 c.. •O `" O y e«. .� c� V ✓ i R O cti O �' C O. 0 O O U p y C 4-. f. L 0 te bk o a� 0 a .- oo c s y ▪ N 4 G c0 E c0 as �' y c o c E o th b E may.. r`�.a �°' a� aE, .0 .00 Y V ¢ di u E 42 a ` enO o v'i in t.„, co rl V) I-' ¢ O O - u CID - r 1 6 - -.1