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1989/11/14 Community Development Agency Minutes COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MINUTES November 14, 1989 The Members of the Community Development Agency of the City of Rohnert Park met this date immediately after the City Council meeting at approximately 10:35 p.m. in the City Offices, 6750 Commerce Boulevard, Rohnert Park, with Chairman Cochran presiding. Call to Order Chairman Cochran called the meeting of the Community Development Agency of the City of Rohnert Park to order at approximately 10:35 p.m. Roll Call Present: (5) Agency Members Eck, Hollingsworth, Hopkins, Spiro and Chairman Cochran. Absent: (0) None. Staff present for all of part of the meeting: City Manager Callinan, City Attorney Flitner, Director of Administrative Services/Assistant to City Manager Netter, and Assistant to the City Manager Leivo. Approval of Minutes Upon motion by Agency Member Hopkins, seconded by Agency Member Hollingsworth, and unanimously approved, the minutes of October 24, 1989 were approved as submitted. Approval of Bills Upon motion by Agency Member Hopkins, seconded by Agency Member Hollingsworth, and unanimously approved, the bills presented per attached list in the amount of $868, 118.35 were approved. Acknowledging The Executive Director/Secretary's report on the posting of the Executive Director/ agenda was acknowledged. Secretary's Report Unscheduled Public Chairman Cochran stated that in compliance with State Law, (The Appearances Brown Act) , anyone in the audience who wished to make a comment may do so at this time. No one responded. Budget/1989-1990 City Manager Callinan said that review of the fiscal year 1989-90 budget would be deferred to the next Agency meeting. City Manager Callinan explained necessity of emergency item and resolution for consideration asking the County to advance funds against the City's increment of which the Sonoma County Board of Supervisors approved today. A motion was made by Agency Member Hollingsworth, seconded by Agency Member Hopkins, and unanimously approved to put the County funds transfer request on tonight's agenda as an emergency item. COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MINUTES (2) November 14, 19 ?esolution No. RESOLUTION OF THE GOVERNING BOARD OF THE COMMUNITY DEVELOPPEM 39-09 AGENCY OF THE CITY OF POHNERT PARK, A DISTRICT OF THE COUNTY 1 SONOMA, STATE OF CALIFORNIA, REQUESTING FUND TRANSFER UND1 ARTICLE XVI, SECTION 6 OF THE STATE CONSTITUTION City Manager Callinan explained the resolution. Upon motion by Agency Member Hollingsworth, seconded by Agent Member Spiro, and unanimously approved, Resolution No. 89-1 was adopted. Fiscal Year 1988-89 City Manager Callinan explained that copies had been provided 1 Annual Report Agency members of the Community Development Agency's Annual Repo] for fiscal year 1988-89 (a copy of which is attached to tt original set of these minutes. A motion was made by Agency Member Hollingsworth, seconded 1 Agency Member Hopkins, and unanimously approved, to approve tt Fiscal Year 1988-89 Annual Report. Adjournment There being no further business, Chairman Cochran adjourned tt meeting at approximately 10:42 p.m. L / ( ' l. 14L---. pep Seary//? , Chairman 4 ANNt_JAL R E PC7RT FISCAL YEAR 1988-1989 THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MEMBERS OF THE COMMISSION Charlie Cochran, Chairman David L. Eck Arthur F. Hollingsworth, Jr . Warren K. Hopkins Linda Spiro EXECUTIVE DIRECTOR Peter M. Callinan November 14, 1989 The Conmulity Developmer►t Agency of the City of Rohnert Park 6750 Counurce Boulevard Rohnert Park, Sonoma County, California 94928 Telephone: (707)795-2411 COMMUNITY DEVELOPMENT AGENCY of the CITY OF ROHNERT PARK 6750 Commerce Boulevard Rohnert Park, Sonoma County, California 94928 Telephone (707) 795-2411 FAX (707) 664-8474 November 14, 1989 This report is issued to inform residents, taxpayers, and business persons on the activities and the financial condition of the Community Development Agency of the City of Rohnert Park. It is issued because a properly infoiired citi- zenry best protects our system of self-government. One project was completed during this first full year of Agency operation. Agency funds were used to finance paving of a parking lot and installation of turf on a play field at Crane Elementary School thigh is adjacent to Colegio Vista Park. Mach was initiated through the auspices of the Community Development Agency during the past year. Agency funds were used to initiate construction of a Performing Arts Center. Construction started on an extension of the Rohnert Park Expressway west to Stony Point Road. Construction design plans for Roberts Lake Road were prepared and a construction contract was awarded in July, 1989. The project includes a commuter parking lot. The office building at 100 Enterprise Drive was purchased. This building will be rebuilt for use as the Codling Center. The Codling Center will house senior citizen programs, among other activities. The Agency also initiated a housing rehabilitations program during the year. Low interest loans are provided to low and moderate income home owners to help rehabilitate and upgrade their homes. This housing program could not have gotten off the ground without the invalu- abl e, cooperative assistance of the Sonoma County Community Development Com- mission. It provided expert assistance in developing the housing loan program and has helped the Agency administer the program. Cooperation between the private and public sectors is an essential element of Agency projects. The success of the Performing Arts Center depends upon the active involvement of Rohnert Park citizens. The Roberts Lake Road project will enhance private development efforts in northwest Rohnert Park that will create new jobs and increase local tax revenues. The Codding Center was purchased at substantially less than appraised value through the generosity of the owner. The individual rehabilitation efforts of home owners is helping to refurbish entire neighborhoods. The success of these and future Community Development Agency projects will be assured through the cooperation of the private and public sectors, citizens and local officials. Dedicated service was provided by our excellent staff to formulate these projects and conduct the programs of the Agency. We value and appreciate the direction provided by the Commission and the assistance and input that has been received from citizens. All such contributions have contributed to the achievements of the Community Development Agency of the City of Rohnert Park. Peter M. Callihan, Executive Director COMMUNITY DEVELOPMENT AGENCY of the CITY OF ROHNERT PARK 6750 Commerce Boulevard Rohnert Park. Sonoma County, California 94928 Telephone (707) 795-2411 FAX (707) 664-8474 November 14, 1989 The Community Development Commission of the City of Rohnert Park proudly points to the many exciting projects initiated this year. These projects will substantially benefit those that live and work in Rohnert Park. What changes are taking place in our community! The Performing Arts Center, funded with Agency bonds, will be a cultural facility of the finest quality. The Center as well as other Agency projects will augment Rohnert Park's growing convention and tourism trade. We hope to consolidate programs for our senior citizens at the Cackling Center. Agency funds were used to purchase the building. This has been a year of important starts. When completed, Agency projects started this last year will have long-lasting, beneficial effects. We can take pride in the progress of our Community Development Agency. This Agency is proving a useful tool to take advantage of opportunities and meet community challenges. Charlie Cochran, Chairman 1?RCDJ"ECT S LJNINIA.Ft I E S CRANE SCHOOL/COLEGIO VISTA PARK IMPROVEMENTS Crane Elementary School serves the west central portion of the City. It is adjacent to Colegio Vista Park. The Community Development Agency provided funds for paving a parking lot and installing turf on a play field curing the fiscal year. This project is complete. PERFORMING wrs CENTER The Agency financed, in part, construction of a Performing Arts Center. This $7,000,000 facility will be paid for from fees imposed on lands annexed to the City and Agency bonds. The Center is located at the Community Center site near the intersection of the Rohnert Park Expressway and Snyder Lane. The Center includes a 500 seat theater, a second small theater, lobby and lounge area, backstage workrooms, dressing rooms, and offices. The grand opening is scheduled for early 1990. This magnificent new facility will set Rohnert Park aside from other communities. HOHNERT PARK EXPRESSWAY EXTENSION The Agency provided funds for construction of an extension of the Rohnert Park Expressway from Hinebaugh Creek to Stony Point Road, outside the City limits. When completed in fiscal year 1989-1990, the extension will be a two lane highway. The extension will create an east/west connection between U.S. 101 and Stony Point road, a major local highway and alternative route for 101 traffic. The extension will be the only connection between 101 and Stony Point Road from the Gravenstein Highway, over one mile to the south, and Wilfred Ave., 3/4 of a mile to the north. While the extension was designed so as to not encourage development along its right-of-way, it will provide an important "back door" traffic link to commercial and industrial development near U.S. 101. This street improvement project will help ease traffic conges- tion in the center of Rohnert Park and on U.S. 101. ROBERTS LAKE ROAD The Agency paid for engineering design of Roberts Lake Road during the fiscal year. This street will link Golf Course Drive, just east of the Northwestern Pacific Railroad, to South Santa Rosa Avenue. The street will run parallel to U.S. 101. Rohnert Park residents will thus be able to travel north to Santa Rosa without having to use U.S. 101. The street will provide improved access to Roberts Lake and benefit commercial development near the Red Lion Inn. Construction of this street link is expected to be completed during fiscal year 1989-1990. Construction started in August, 1989. SWIM CENTER Recreation development plans of the City of Rohnert Park stipulate that an indoor swimming pool should be built. During the fiscal year, community leaders began the process of formulating this project. The possibility was explored of building a facility capable of hosting aquatic events of national and international caliber. A tednnical advisory committee was created. The services of an architect were procured. Economic Research Associates was hired to prepare an economic feasibility analysis. The process of determining the scale and design of an indoor aquatics facility will continue during the 1989-1990 fiscal year. COMING CENTER At present, program that benefit senior citizens occur in facilities through- out the community. The Senior Drop-in Center is located downtown, Fun After Fifty use the Burton Ave. Recreation Center and the Nutrition Program provides meals for seniors at the Community Center for instance. It has long been a dream of many Rohnert Park seniors to develop a central senior center. There exist many other social service needs in the community. Community leaders have emphasized the crisis facing young residents. They envision a site where young citizens can develop friendships with older mentors, receive counseling, invigorate relationships with family, and thereby avoid the pit- falls present in today's society. The Agency took advantage of the opportunity to purdzase a centrally located building that could be converted into a service center for the community. This building is located at 100 Enterprise Drive. The Agency was able to purchase the 14,595 square foot building for just over $800,000, substantially less than the appraised value. In recognition of the kindness of the owners, the facility will be called the Coaling Center. The City of Rohnert Park obtained a $125,000 Community Development Block Grant to help pay for building modifications. Construction will begin during the 1989-1990 fiscal year. LOW AND MODERATE INCOME HOUSING FUND During the fiscal year, the Agency initiated a housing rehabilitation loan program. The goals of the program are to: 1) assure that low and prate income homes owners have safe, adequate, decent and sanitary housing; and 2) help maintain and upgrade residential neighborhoods. The Sonoma County Community Development Commission (SCCDC) assisted in the formulation of the program. In addition, the Agency contracted with the SCCDC to administer the loan assistance program. Law interest loans to low and moderate incase households for housing rehabili- tation are made available through the program. The process for obtaining a loan is as follows: 1) The household submits an application. 2) The applicant's annual income is verified. 3) The home is inspected to determine needed repairs. 4) Specifications are prepared and contractor bids are obtained. 5) Loan documents are prepared and signed. 6) SCCDC staff supervise the rehabilitation project. Operation of the program commenced on April 1, 1989. The Agency set aside S425,000 for rehabilitation loans. By the end of the fiscal year (June 30, 1989), 38 applications had been received. Processing of four applications was completed, loans approved, and construction started. F' I NAN C I A L S TA T EME N T S 11% FJ ," 1707 1"1..JG Ln7 J.r-. •.-'" Deloitte Haskins--Sells 50 Fremont Street San Francisco. California 94)05.2230 415) 393-4300 Telex: 340336 INDEPENDENT AUDITORS' REPORT Community Development Agency Board, Rohner' Park, California: We have audited the accompanying component unit financial statements of the Community Development Agency of the City of Rohnert Park (the Agency) as of and for the year ended June 30. 1989 listed in the foregoing table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these 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. such component unit financial statements present fairly. in all material respects, the financial position of the Community Development Agency of the City of Rohnert Park at June 30, 1989 and the results of its operations for the year then ended in conformity with generally accepted accounting principles. L../Z August 25, 1989 rfdtrf r. r! N Np0pp0pN u', r. a 0I NI , a .45 el O p u1Qpu�f C O rnly. O N d�[ r. n Q CO I 1-- CY ,A 'N G o el.D Nmti O [pM 0 0 o a rZO .. u1 •.., c r1 deb _, a, c' M Y ... . r+5 N r I 1 M .W lr, w' ,p .D �p co v v .r..0 v) Q • • � rl Q, a, v, a � v • V7 N fN•1 Ny 07 M ▪ y, m - w v+ I .r ♦•ten `n ��•► - = w zap b b uOC I r_ta MI o 00O I 01 � gg � OlO ! n 000 00 Q v� 0 Lel 's a CCu1 0 op x,I .' co ;la O W 0 , o a o C • �' pp [C CS` CO COa, 7 w ag 4.6 W o -a, b a o f kw O w I N N ^� 1 0 a d l c r� 1r1 ,oJ v0 NI (I C7 w1 ,o '1' CV b11 el w1 CAD �' < I I o+ Q O C7 O ao 1 1 w v Z •• C- V w r-1 Z 01 u: U ra. v O W w z z K, < 13 W 64. CO z U L PM c �, W Q :1 u �." V � AL a.. aCI cti Lu u 0 a c El) CIO W N.y .-, Z i:i .= ( 7 G G • X Ua� El CW r'1 W a u U G - "' 0 -a V -0 :'`..: ..= v Lf. - Q ; at,,• - ea , E c, :n .- — .: `. 1 v 7 - UU, U=, Q EV4a Li ` OQd r -.7C-.E-- E- II--- — r= ,n )n•a qCgn '7 ' Ctt PIASV-S'67 Str •H•S SH[1 22:VT 686Ti60/TT p COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK COMBINED STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED JLTNE 2,0. 1989 _ - GOVERNMENTAL FUND TYPES TOTAL DEBT (MEMORANDUM GENERAL SERVICE ONLY) REVENUES: Taxes $ 1 ,901 ,632 $ 1 ,901,632 Interest and rentals 1,097,322 $ 51 , 191 1 ,148,513 Total revenues 2,998,954 51 ,191 3,050,145 EXPENDITURES: Current: General administrative 424,385 424,385 Public works 107 ,215 107,215 Professional services and other 59,000 59,000 Capital outlay 5,329,265 5,329,265 Debt service: Principal retirement 300,000 115,000 415,000 Interest and fiscal charges 360,000 957 ,1307 1,317 807 Total expenditures 6,5794865 1 ,072,807 7,652,672 EXCESS OF EXPENDITURES OVER REVENUES (3,580,911) (1,021 ,616) (4,602,527) OTHER FINANCING SOURCES (USES): Operating transfers in 1 ,001 ,889 1 ,001 ,889 Operating transfers out (1,001 ,889) (1 .001 ,889) Total other financing sources (uses) (1 ,001 ,889) 1,001,889 - EXCESS OF EXPENDITURES AND OTHER USES OVER REVENUES AND OTHER SOURCES (4,582,800) (19, 727) (4,602,527) FUND BALANCES, JULY 1, 1988 14,469,768 1 , 117_,784 15,587,552 FUND BALANCES, JUN .' 30, 1989 $ 9,885,968 $1 ,09p,0177 $10,985,025 See notes to component unit financial statements. COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK STA1 E,MIENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED JUNE_ 30, 1989 - GENERAL FUND VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Taxes S2,348,910 S 1 ,901 ,632 $ (447,278) Interest and rentals 800,000 1 ,097 ,322 297,322 Total revenues 3,148,910 _ 2 ,998,954 (149,956) EXPENDITURES: Current: General administrative 424,385 424 ,385 Public works 107,215 107 ,215 Professional services and other 72,000 59,000 13 ,000 Capital outlay 3,500,000 5,329,265 (1,829,265) Debt service - interest and fiscal charges 660,000 (660,000) Total expenditures 4 , 103, 500 6,579,865 (2,476 L265) EXCESS OF EXPENDITURES OVER REVENUES (954 ,690) (3,580,911) (2,626,221) OTHER FINANCING USES - Or+erating transfers out - _ (1,001 .889) (1,001 .889) EXCESS OF EXPENDITURES AND OTHER USES OVER REVENUES S (954,690) (4,532,800) t (3.628, I1Q) FUND BALANCES, JULY 1. 1988 14,469,768 FUND BALANCES, JUNE 30, 1989 $ 9,886,968 See notes to component unit financial statements. - 4 - J.1 ca J. J.44• .I-. -�1:� .}7,>-4 ul(] �1� GGf ��7�_ Y .1CI COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK NOTES TO COMPONENT UNIT FINANCIAL STATEMENTS 1. DESCRIPTION OF THE COMMUNITY DEVELOPMENT AGENCY AND REDEVELOPMENT PLAN The Community Development Agency of the City of Rohnert Park (the Agency) was established under the provisions of the Community Redevelopment Law (California Health and Safety Code, commencing with Section 33000) primarily to assist in the clearance and rehabilitation of areas determined to be in a declining condition in the City of Rohnert Park (the City). Financial activity of the Agency commenced in fiscal year 1987. The result of this activity is the Agency's Redevelopment Plan (the Plan). Under the Plan, approved in July 1987, the Agency�prroposes to assist in the development of property located within the boundaries off` theCiity of Rolinert Park. The Agency receives incremental tax revenues on the developed property due to increases in assessed value. The Agency functions as an independent entity and its policies are determined by the City Council of the City in a separate capacity as members of the Community Development Agency Board (the Board). All staff work is performed by the officials and staff of the City, or by consultants to the Agency. For financial reporting purposes, the Agency includes all funds and the account groups of the Agency that arc controlled by the Board. The Agency is an integral part of the City, and the accompanying financial statements are included as a component of the general purpose financial statements prepared by the City. 2. SIGNIFICANT ACCOUNTING POLICIES Description of Funds and Account Groups - The accounts of the Agency are organized on the basis of funds and account groups. each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to he spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements in this report into categories as follows: • Governmental Fund Tvpes: • • General Fund is the general operating fund of the Agency. It is used to account for all financial resources except those required to be accounted for in the debt service fund. • • Debt Service Fund accounts for the accumulation of, and payment of, resources for long-term debt principal, interest and related costs. • Account Groups; • • General Fixed Assets - The general fixed assets group was established July 1, 1988. Fixed assets used in governmental fund type operations (general fixed - 5 - • i—,• ..ow ijrm7 .11 assets) are accounted for in the general fixed assets account group, rather than in governmental funds. Public domain (infrastructure) assets consist of improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. Infrastructure assets are capitalized alongwith other general fixed assets. No depreciation has been provided on general ixed assets. • • General Long-Term Debt Account Group - Long-term liabilities expected to be financed from governmental funds are accounted for in the general long-term debt account group, not in the governmental funds. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurements made, regardless of the measurement focus applied. All Agency transactions are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Revenues considered susceptible to accrual include property taxes and interest income. Expenditures are generally recognized when the related fund liability is incurred except for interest on long-term debt which is recognized when due. Budgets and Budgetary Accounting - The Agency operates under the general laws of the State of California and annually adopts a budget for its General Fund expenditures to be effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted and controlled at the Agency level, the amounts stated therein as proposed expenditures become appropriations to the Agency. The Board may amend the budget by resolution during the fiscal year. The Agency Manager may authorize transfers from one object or purpose to another within the Agency. All appropriations lapse at year-end. The Agency does not adopt a budget for its Debt Service Fund. Annual budgets are adopted on a basis consistent with the generally accepted accounting principles. The Agency prefers to leave its original budget unaltered during the year. so that the effectiveness of meeting budget objectives can he evaluated, and the adequacy of the budget itself can be judged. Expenditures in excess of budgeted amounts are allowed by law hut must he approved individually by the Agency. Cash and Investments - Investments are stated at cost, which approximates market value. The Agency maintains cash and investments in accounts separate from those of the City and investments are made in the name of the Agency. Property, Tax Levy, Collection and Maximum Rates - The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be adjusted by no more than two percent per year unless the property is sold, transferred or improved. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts and other districts. The Agency's property tax revenues include only property taxes resulting from increased assessed values on property within the Plan area. - 6 - �i• CJ 7• a707 1,4•Jr LPlz 7.f. 41=+ ��7-4]kJv) -�l� ccr KJ' O r. 1e Sonoma County assesses properties, bills for, collects, and distributes property taxes sis follows: Secured Unsecured Lien dates March 1 March 1 Levy dates July 1 July 1 Due dates 50670 on November 1 July 1 50% on February 1 Delinquent as of December 10 (for November) August 31 April 10 (for February) The term "unsecured" refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property taxes levied are recorded as revenue and receivables, net of estimated uncollectibles, in the fiscal year of levy. "Total (Memorandum Only)" Information - Columns on the accompanying component unit financial statements captioned "Total (Memorandum Only)" do not present consolidated financial information. They are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. 3, CASH AND INVESTMENTS Cash Depos:ts - A summary of cash at June 30, 1989 follows: Carryi r,g Bank Amount Balance Cash on deposit with fiscal agent $4,579,461 $4,579,461 Certificates of deposit 1 ,386,000 1 ,386,000 Checking accounts and petry cash 33 ,493 60,199 Savings accounts 100 100 Total cash deposit $5,999,054 6 025 760 The difference between the hank balance and the carrying amount represents outstanding checks and deposits in transit. The entire bank balance was covered by federal depository insurance or by collateral held by the Agency's agent in the Agency's name. Investments - Statutes authorize the Agency to invest in obligations of the U.S. Treasury, its agencies, and instrumentalities, commercial paper, hankers' acceptances. reverse repurchase agreements, and the State Treasurer's Local Agency Investment Fund. The Agency entered into no reverse repurchase agreements during fiscal year 1989. The Agency's investments are categorized below to give an indication of the risk assumed by the Agency at June 30, 1989. Category 1 includes investments that are insured or registered or for which the securities are held by the Agency or its agent in the Agency's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the broker's or dealer's trust department or agent in the Agency's name. Category 3 includes uninsured and unregistered investments for which the - 7 - 11,t!7/ 1767 1•1•.DG 1ln' J.r. µ1r+ .r7, '4,DI L) 441-1 t r r17r1D r.1 securities are held by the broker or dealer, or by its trust department or agent but not in the Agency's name. Current Category Carrying (Market) 3 Amount Value • U.S. government securities $2,958,691 - - $ 2,958,691 $2,977,792 Centennial Government Trust Mutual Fund 504,588 504,588 State Treasurer's Local Agency investment Fund 1,999.000 1,999,000 Total investments 5,562,279 $5,581,380 Total cash deposits (discusse4 abovc) `.999,054 Total cash and investments ,$11,56R33 4. FIXED .\SSEel'S A summary of the Agency's property at June 30, 1989, follows: Land, structures, improvements and equipment $ 965,245 Construction in progress 4,364.220 Total $5,329.�"65 Construction in progress primarily represents $3,895,893 expended to date on the cultural arts facility. The remaining balance consists of expenditures related to various projects. 5. LOAN FROM AND DUE TO THE CITY OF ROHNERT PARK In 1988, the Agency borrowed $4,500,000 ($4.200,000 outstanding at June 30, 1989) from the City's General Fund for the purpose of constructing a cultural arts facility. The loan is to be repaid over 15 years in annual installments of S300,000 plus accrued interest at 8%. Debt service requirements, including interest, follow: Year ending June 30, • 1y90 $ 636,000 1991 612,000 1992 588,000 199; 564,000 1994 540,000 Thereafter 3,780,000 Total $6,720,000 The remaining $633,572 due to the City represents noninterest-hearing short-term loans to finance operations until property tax increments are available to repay these amounts. - 8 - 11YJ711'="07 14• 1p0 Vr1 .r. -+1 ,L7 ••1�VV .41a !�ao .1" 6, LONG-TERM DEBT In June 1988, the Agency issued $12,000,000 tax allocation bonds ($11,885,000 outstanding at June 30, 1989) to finance the Rohnert Park Redevelopment Project. The debt is expected to be repaid from property tax increments collected from properties within the plan area. Debt service requirements on these tax allocation bonds, including interest, follows: Interest Rates of Maturing Amount principal Year ending June 30, 1990 $ 1 ,071 ,482 5.50-6.00% 1991 1 ,074,583 5.50-6.50 1992 1,071 ,782 5.50-7 .00 1993 1 ,073,345 5.90-7 .25 1994 1 ,073 ,920 5.90-7 .25 Thereafter 25,950,738 5.90-8.00 TJtai $31,315,850 - 9 - 11/10 /171:1y 14:39 UHS S.F. 415 393-4300 41b 227 LI .5b r. 1� Deloitte Haskins—Sells 50 Fremont Street San Francisco, California 94105.2230 14151 393.4300 Telex: 340336 INDEPENDENT AUDITORS' COMPLIANCE REPORT Community Development Agency Board, Rohnert Park, California: We have audited the component unit financial statements of the Community Development Agency of the City of Rohnert Park (the Agency) for the year ended June 30, 1989 and have issued our report thereon dated August 25, 1989. Our audit was conducted in accordance with generally accepted auditing standards. Section 33080.1(a) of the Health and Safety Code of the State of California, and the procedures contained in the Controller of the State of California Guidelines for Compliance Audits of California Redevelopment Agencies. 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. The. Agency's management is responsible for the Agency's compliance with laws, regulations and administrative requirements. In connection with our audit, we performed tests of the Agency's compliance with laws, regulations and administrative requirements governing activities of the Agency, to determine the Agency's compliance with laws, regulations and administrative requirements noncompliance with which could have a material effect on the component unit financial statements of the Agency. The results of our tests indicate that for the items tested, the Agency complied with applicable laws, regulations and administrative requirements noncompliance with which could have a material effect on the component unit financial statements. Nothing came to our attention that caused us to believe that for the items not tested the Agency was not in compliance with applicable laws, regulations and administrative requirements noncompliance with which could have a material effect on the component unit financial statements. August 25, 1989