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Home My WebLink About1991-12-17; Housing & Redevelopment Commission; 196; 1990-91 Annual ReportTITLE: ANNUAL REPORT OF THE CARLSBAD REDEVELOPMENT AGENCY FOR FISCAL YEAR 1990 - 1991 RECOMMENDED ACTION: Receive and file the Annual Redevelopment Report of the Carlsbad Redevelopment Agency for Fiscal Year 1990 - 1991; direct staff to transmit a copy of this report and the Redevelopment Agency Annual Financial Report as required to the State of California Department of Housing and Community Development. ITEM EXPLANATION: The Carlsbad Redevelopment Agency is required to prepare an Annual Report for review by the members of the Housing and Redevelopment Commission in accordance with the provisions of Section 33080.1 of the State of California Health and Safety Code. Also in accordance with the Health and Safety Code, a copy of the Annual Report must be forwarded to the State of California Department of Housing and Community Development. FISCAL IMPACT: There is no fiscal impact as a result of this recommendation, EXHIBITS: I - Report titled “Annual Report of the Carlsbad Redevelopment Agency for Fiscal Year on file in the Housing and Redevelopment Department., and also attached. 1990 - 1991,” ANNUAL REPORT OF THE CARLSBAD REDEVELOPMENT AGENCY FOR FISCAL YEAR 1990 - 1991 In accordance with the provision of Section 33080.1 of the State of California Health and Safety Code, this report has been prepared for the Carlsbad Redevelopment Agency for Fiscal Year 1990 - 1991. The “audit report” as defined in subsection (a) of Section 33080.1 was prepared by the Agency’s independent financial auditors, KPMG Peat Marwick. The Carlsbad Redevelopment Agency has one project area. The Village Redevelopment Project Area which is generally within the northwest portion of the City. There have been no amendments to the plan during Fiscal Year 1990 - 1991. The following report is for the Village Redevelopment Project Area. - I. VILLAGE REDEVELOPMENT PROJECT AREA - REVIEW OF GOALS & ACHIEVEMENTS On June 19, 1990, a work program was approved by the Carlsbad Redevelopment Agency for Fiscal Year 1990 - 1991. This budget outlined a series of projects which had been proposed through the adoption of the Village Redevelopment Plan on July 7, 1981. Well into this multi-year work plan, the 1990-91 program continued to address many deficiencies within the project area as well as encourage investment by private developers. The total cost is shown for those projects completed during the 1990 - 1991 Fiscal Year. The following is a review of the goals and achievements for the 1990 - 1991 Fiscal Year: A. PROJECTS UNDERTAKEN BY THE CARLSBAD REDEVELOPMENT AGENCY DURING FISCAL YEAR 1990-91: PROJECT NUMBER PROJECT DESCRIPTION PROJECT VALUE STATUS 3003 Santa Fe Depot - Interior 3737 Santa Fe Depot - Rest Rooms 3738 Tyler Alley Improvements 3736 Historic Resource Survey 3288 Streetscape Phase I & II 3291 Streetscape Phase Ill - Parking Land Acquisition and Facilities 3343 Carlsbad Village Drive Improvement 2479 Economic and Promotional Activities $ 30,000 Completed 15,000 Completed 31,906 Completed 45,861 Completed 3,106,275 Completed 1,002,000 Completed 190,000 Completed 11,000 Completed B. REDEVELOPMENT PERMIT APPLICATIONS RECEIVED BY THE AGENCY DURING FISCAL YEAR 1990-91: PROJECT DESCRIPTION DEVELOPER/APPLICANT VALUATION DATE Streetscape I & II Roosevelt Parking Lot Professional/Retail Center Expansion at Roosevelt St. & Grand Ave. Office Building Carlsbad Village Drive Permit Extension for Hotel Project at Carlsbad Blvd. & Beech Mixed Use Professional/Retail - 30,000 S.F. Parking Expansion Redevelopment Agency $3,050,000 07/24/90 Redevelopment Agency 200,000 09/I g/90 Roosevelt Center 100,000 1 o/93/90 Redevelopment Agency $190,000 01/l 8i91 California Builders 2,250,OOO 01/08/91 Beverly Centre 2,655,OOO 63/l g/91 Brfttany Court 3,000 03i27i91 c:\WPIl \FILES\ANNRED.RPT Rev. 12/11/M Carlsbad Redevelopment Agency Annual Report - F’Y 1990/91 Page 2 PROJECT DESCRIPTION DEVELOPER/APPLICANT VALUATION DATE Professional Office Building wi four (04) Garages - 3,600 SF. Underground Utilities Service Station Upgrade Coffee House - 3076 Carlsbad BI. Beauty SUPP~ Hall/Martin Vista Sewer Interceptor Texaco Gillespies Perl Family Trust 270,000 06/05/g 1 1,759,347 06/05/g 1 6,000 06/05/91 22,685 06/l 9i91 25,000 06/l 9/91 C. REDEVELOPMENT PROPOSALS REVIEWED BY THE AGENCY DURING FISCAL YEAR 1990-91: PROJECT DESCRIPTION PROJECT SPONSOR PROJECT VALUE Master Plan for Army Navy Academy (private school). The project is located on both sides of Carlsbad Blvd. between Pacific Ave. and Beech Ave. The Master Plan is a blueprint for a 20-year plan to rebuild, renovate and construct new buildings at the academy. The proposed improvements will prevent the school facility from becoming obsolete. Major Redevelopment Permit to demolish existing retail building and to construct a two-story 3,000 S.F. retail building at 2933 Roosevelt Street in the Village Redevelopment Area. Major Redevelopment Permit to construct a 2,057 SF. ARC0 gas station and mini-mart on Carlsbad Village Drive at Harding Street. Major Redevelopment Permit to construct an 8,800 SF. two-story professional office building with parking below. Major Redevelopment Permit to construct a 89,450 S.F. mixed-used senior condominium project with 23,750 of parking (including one level underground) and 3,250 S.F. of commercial space on Carlsbad Boulevard. Major Redevelopment Permit to redevelop St. Michael’s Church site into a 60,000 S.F. master plan project on Carlsbad Boulevard. Musser & Cox, Architects (for the Army Navy Academy) $20,000,000 Mark Davis, Architect (for Clark Knapp, property owner) Desert Petroleum, Inc. 652,000 Robert Mance Rick Webb (for St. Michael’s Church) Art Kuene, Architect (for St. Michael’s Church) 700,000 $ 990,000 7,307,ooo 530,180 C:\WP51\FILES\ANNRED.RPT Rev. 12/11/91 Carlsbad Redevelopment Agency Annual Report - FY 1990/91 Page 3 PROJECT DESCRIPTION PROJECT SPONSOR PROJECT VALUE Major Redevelopment Permit to expand Town Square by adding 2,100 S.F. of retail space and 1,588 S.F. apartment and 85 parking spaces on Carlsbad Boulevard. Sarah Marquez 440,000 Major Redevelopment Permit to construct the Carlsbad North County Transit District 1,000,000 Village Transit Center as the first of two commuter rail stations in Carlsbad. D. PROJECT ADMINISTRATION TO ASSIST LOW/MOD INDIVIDUALS Redevelopment Agency’s efforts to assist low and moderate income persons in Carlsbad during fiscal year 1990-91 include administration of the federal Community Development Block Grant (CDBG) Program and negotiations with local private, for-profit and/or non- profit developers to provide affordable housing in Carlsbad. I. The following projects were funded through Carlsbad’s CDBG program during fiscal year 1990-91 and administered by staff of the Redevelopment Agency: PROJECT PROJECT TlTLE AGENCY/SPONSOR VALUE Shelter for abused or neglected children Emergency Homeless Shelter Single Men Homeless Shelter Day Care Center for Victims of Alzheimer’s Disease Information Referral for Disabled Persons Fire Sprinkler System Center for the Blind Casa de Amparo North County Lifeline Ecumenical Service Center Western Institute Foundation for Mental Health Disabled Network Center Boys and Girls Club of Carlsbad San Diego Service Center for the Blind $ 15,000 7,300 10,244 $ 12,180 1,500 30,000 40,000 Property Acquisition for Affordable Housing City of Carlsbad 147,000 C:\WPSl\FILES\ANNRED.RPT Rev. 12/11/91 - Carlsbad Redevelopment Agency Annual Report - F’Y 1990/91 Page 4 II. The following Affordable Housing Projects were proposed by local private (for-profit and non-profit) developers and/or residents and reviewed by Redevelopment Agency staff during fiscal year 1990-91: PROJECT DESCRIPTION SPONSOR PROJECT VALUE Mixed-use project proposed for corner of Carisbad Blvd. and Beech Street in the project area. The project includes 10,000 S.F. of retail, 30 condominiums and 220 single-room occupancy units. 41,480 S.F. Senior Housing Project proposed for 870 Laguna Ave. in Carisbad. The project includes 76 senior affordable apartments. 159 affordable unit (inclusionary) housing project proposed for Aviara Master Plan Community in Southwest portion of Carisbad. 20 affordable condominium units for moderate income households on Tamarack Avenue (parallel) to railroad tracks) in Northwest Quadrant portion of Carisbad. Hallmark Development Group $ 15,000,000 Mary Steiger 5,000,OOO Hiilman Properties 16,000,OOO Rodney Miles 2,000,000 E. TAX ALLOCATION BONDS The Carlsbad Redevelopment Agency issued one $12 million Tax Allocation Bond Issue for the Village Area Redevelopment Project in April of 1988. As June 30, 1991, $1,998,674 remained in the Tax Increment Bond Debt Service Fund Balance. There were no additional bond issues during the 1990-91 Fiscal Year. F. DESCRIPTION OF THE CARLSBAD REDEVELOPMENT AGENCY’S ACTIVITIES AFFECTING HOUSING AND DISPLACEMENT Village Redevelopment Project Area - Adopted 07/07/81 1. The total number of households that were displaced or moved from their dwelling units as part of a redevelopment project of the agency during the previous fiscal year. During the 1990-91 fiscal year no households were displaced or moved in the Village Redevelopment Area Project Area. 2. The total number of households that the agency estimates will be displaced or will move from their dwellings as part of a redevelopment project of the agency during the present fiscal year. C:\WPSl\FILES\ANNRED.RPT Rev. 12/l 1 IS1 Carlsbad Redevelopment Agency Annual Report - FY 1990/91 Page 5 During the 1991-92 fiscal year the Carlsbad Redevelopment Agency anticipates that no households will be displaced as part of a redevelopment project in the Village Redevelopment Project Area. 3. The total number of dwelling units housing persons and families of low and moderate income which have been destroyed or removed from the low or moderate income housing market during the previous fiscal year as a part of a redevelopment project of the agency. During the 1990-91 fiscal year there were no dwelling units housing persons and families of low and moderate income destroyed or removed from the low or moderate income housing market in the Village Redevelopment Project Area. 4. The total number of dwelling units which the agency has caused to be constructed, rehabilitated, developed or maintained during the previous fiscal year for occupancy at an affordable housing cost by persons and families of low and moderate income. Staff monitored the continuing affordability of the following guaranteed affordable housing units located within the City of Carlsbad: PROJECT NAME TYPE AFFORDABiLiTY # UNITS ASSISTED INCOME LEVEL EXPIRATION DATE Seascape Rental Apts. 42 Park La Costa Rental Apts. 64 Soiamar Mobile Homes 9 Low/Very Low Low/Very Low Low 2005 2005 1988 until sale or demise of owner. 1014-1016 Laguna Drive Rental Condos 4 Low/Moderate 2005 HUD Section 8 Rental Assistance Program Various 390 Very Low N/A II. CARLSBAD VILLAGE REDEVELOPMENT PROJECT AREA: WORK PROGRAM FOR FISCAL YEAR 1991 - 1992 The work program for the Village Redevelopment Project Area for Fiscal Year 1991- 1992 represents the continuation of a multi-year program of implementation of the Village Redevelopment Plan as guided by the City of Carlsbad General Plan. The 1991- 1992 work program is best summarized as an undertaking of projects which both facilitate a substantial amount of private development as well as address those conditions which have a detrimental c:\WP~~\FILES\ANNFIED.RPT Rei. 12/11/91 Carlsbad Redevelopment Agency Annual Report - FT 1990/91 Page 6 and blighting impact on the project area. It should be particularly noted that as an Agency policy, service needs of other governmental agencies have been considered as an element of the Redevelopment Plan. Through the redevelopment process, joint projects have alleviated serious problems, enhanced services and facilities and encouraged development. The following is a summary of the Agency work program for the Village Redevelopment Project Area of 1991- 1992: A. CARLSBAD REDEVELOPMENT AGENCY PROJECTS AND PROGRAMS TO BE CONTINUED AND/OR COMPLETED: PROJECT NUMBER PROJECT DESCRIPTION PROJECT VALUE STATUS 3730 3731 3732 3739 3735 3740 2350 3346 3247 3347 3293 3273 3275 3276 3366 3001 Maxton Brown Park improvements Oak Street improvements Grand Avenue Sidewalk Handicap Ramps Paint-A-Thon Program Boys & Girls Club Fire Sprinkler installation Public Parking Expansion Streetscape Phase IV Streetscape Phase V I . . I I I Streetscape Phase Va . . I . . . State St. & Carisbad Blvd. intersection improvements Sidewalk improvement Project - Laguna Dr. & Rooseveit St. $ 30,000 To Be Completed FY 92-93 150,000 To Be Completed FY 91-92 30,000 To Be Completed FY 91-92 45,337 To Be Completed FY 91-92 18,560 Ongoing 30,000 To Be Completed FY 91-92 131,830 Ongoing 911,428 To Be Completed FY 91-92 3,901,200 To Be Completed FY 93-94 1,513,200 ’ ’ ’ ’ ’ 500,000 ” ’ ’ ’ ’ 115,000 To Be Completed FY 91-92 100,000 ” ’ ’ ’ 100,000 ” ’ . ’ 90,000 To Be Completed FY 93-94 14,025 To Be Completed FY 92-93 C:\WPJl\FILES\ANNRED.RPT Rev. 12fll t9l . - Carlsbad Redevelopment Agency Annual Report - FY 1990/91 Page 7 B. ECONOMIC ENHANCEMENT: Redevelopment Staff will continue to implement a Community Awareness Program in fiscal year 199192 to keep the public informed as to the activities, programs and/or projects which impact the Village Redevelopment Project Area. The program will include regular community interface with public meetings and/or workshops, newsletters, promotional materials and a speakers bureau. Some of the activities, programs and/or projects which will be given special attention through this Community Awareness Program are: the Barrio Fiesta, Carlsbad 5000, two Village Faire Events, San Diego Marathon in Carlsbad and the Streetscape Improvement Program. As necessary and appropriate, Redevelopment Staff will prepare public information brochures for distribution throughout the community. To encourage economic development within the Village Redevelopment Project Area, Redevelopment Staff will also continue to meet with all private citizens, business ‘owners/merchants, developers, etc. who are interested in opening a business, developing a project or undertaking any other activity which will create a vibrant and economically healthy business district. Redevelopment Staff will coordinate the efforts of the Planning and Engineering Departments in the City’s goal to encourage the proper design and facilitate construction of a new Commuter Rail Station in the Village Redevelopment Project Area at the corner of State Street and Grand Avenue. The Commuter Rail Station will be a very positive asset to the Village Redevelopment Project Area. It will assist in the Redevelopment Agency’s efforts to revitalize the downtown area by creating a “transportation hub”. Also, as an important part of the economic enhancement program for the Redevelopment Project Area, the Agency will continue to develop the successful Streetscape Improvement Program. Two phases (IV and V) of the program remain to be completed: Phase IV includes installation of a traffic signal, infrastructure improvements and completion of the Sculpture Park located at the corner of Carlsbad Boulevard and Ocean Street, and Phase V includes all medians, sidewalk improvements and the storm drain for Carlsbad Village Drive as well as traffic signals at Grand & Jefferson, Grand and Roosevelt and Grand & State. C. MASTER PLAN FOR VILLAGE REDEVELOPMENT PROJECT AREA: During fiscal year 1991-92, the Redevelopment Agency prepare a Master Plan and Implementation Program for the Carlsbad Village Redevelopment Project Area. The primary objective of the Plan will be to complete an intensive study of the Village Redevelopment Area, including review of existing planning documents, and to create a C:\WPH \FILES\ANNRED.RPT Rev. 12/l 1191 4 Carlsbad Redevelopment Agency Annual Report - F’Y 1990/91 Page 8 comprehensive “planning and implementation” document to be used by the City of Carlsbad Redevelopment Agency to continue its efforts to appropriately implement its approved Redevelopment Plan for the area over the next fifteen (15) years. The five goals of the Master Plan and Implementation Program are 1) to identify specific areas within the Village which are, or will be, strong candidates for redevelopment within the next 15 years; 2) to provide an overall development strategy that evaluates the economic potential of various development markets as it relates to specific sites within the Village Redevelopment Project Area; 3) to establish specific site development standards for projects within the Village Redevelopment Area; 4) to shift the emphasis from publicly-funded to privately-funded revitalization efforts; and, 5) to develop a strategy for creating a strong identification or image for the Village Redevelopment Project Area as the economic center of activity for the City. In researching and preparing the Master Plan, vacant, under-productive and non- conforming land uses within the project area will be reviewed. Also, the parking needs of the Village Redevelopment Project Area will be studied and a plan developed, including financing options for additional public parking. It is estimated that the Master Plan and Implementation Program will be completed by June, 1992. D. SURVEY AREA STUDY FOR NEW REDEVELOPMENT PROJECT AREA: Redevelopment Agency Staff will be coordinating the effort to study the feasibility of establishing a second redevelopment project area in Carlsbad. E. AFFORDABLE HOUSING ACTIVITIES: FUNDING PROJECT TITLE AGENCY/SPONSOR AMOUNT Shelter for Abused or Neglected Children Emergency Homeless Shefter Homeiessness Prevention Program Migrant Workers Shefter AIDS Victims Service Referrals Single Men Homeless Shelter AIDS Victims Homeless Shefter Casa de Amparo North County Lifeline Community Resource Center Catholic Charities AIDS Foundation of San Diego Ecumenical Service Center Fraternity House $ 10,000 9,257 10,000 25,000 1,000 10,000 2,000 C:\wPSl\FILES\ANNRED.RPT Rev. 12/11/91 - z Carlsbad Redevelopment Agency Annual Report - FY 1990/91 Page 9 PROJECT TiTLE FUNDING AGENCY/SPONSOR AMOUNT Disabled Persons/Seniors Services (Employment Assistance) San Diego Mental Health Services 9,000 Day Care Center for Victims of Aizheimer’s Disease Western institute Foundation for Mental Heaith 12,359 Clubhouse Plans Fire Sprinkler System Property Acquisition for Affordable Housing Projects Paint-A-Thon Program Carisbad Girls Club Carisbad Boys & Girls Club City of Carisbad/ Redevelopment Agency City Carisbad 50,000 $ 5,990 221,000 15,859 As part of the 1991-92 “Work Program”, Redevelopment Staff will also be preparing, distributing and analyzing a Fair Housing Survey. The purpose of the survey is to determine whether or not Carlsbad residents have experienced any type of discrimination in their efforts to obtain/maintain housing in the city. The information will be used to develop a Fair Housing Program (counseling, education, complaint processing, etc.) for the City of Carlsbad. In addition to the use of federal CDBG funds for affordable housing projects, the Redevelopment Agency will develop a spending Strategy Plan to use its 20% Set-Aside funds to increase affordable housing in the redevelopment project and surrounding areas (where benefit to the project area can be shown). It is estimated that Redevelopment Agency staff will negotiate and execute development agreements with various private and/or non-profit developers for creation of at least 200 affordable housing units during fiscal year 1991-92. Appropriate Redevelopment Tax Increment (20% set-aside) will be used to assist in financing the costs of these affordable housing units (i.e., property acquisition, public improvements, payment of fees, etc.) The Housing and Redevelopment Department’s responsibilities for 1991-92 include continued administration of the federally-funded Section 8 Rental Assistance Program. This program helps qualified persons of very low income to subsidize their monthly rent. In order to qualify for the program, an applicant must have an income that is within the “very low income” range (50% or below of the Median Income for San Diego County) as set forth by the U.S. Department of Housing and Urban Development. The applicant must also meet the definition of “family” or be handicapped or disabled as defined by the Social Security Administration. It is estimated that a total of 445 very low income households will be assisted during fiscal year 1991-92 to obtain/maintain affordable housing in Carlsbad through this program. C:\WPIl\FILES\ANNRED.RPT Rev. 12/11/91 K’S 3’~’ : :<ERUx TELECW I Ei? 7’01E1 ; : IQ:ITT 534 - .SEhT BY:KPMG PEAT MARWICK .-- 4-91 : 5:03PM : SAN DIEC- CA- wrYCARL... 14: 55 Spreads: 3(M),4,5(s) 10/04/9L bb 1:oo 12/02/91 bb(lfull) l:oo 12/04/91 ht :30 ;# t U11987:f 2/lfJ r -- “-I Y-e ---- _,.. _ _ TEFITATIVE AND PRELMM~?V ORAFT FOR RfmW AND DIscLis3!i:N T;[jBj[CT TO fJiif,ijr;x ! , --__ __ _,. . i CARLSEAII REDEVELOP AGENCY Combined Financial Statements June 30, 1991 With Comparative Tot&La fol: June 30, 1990 (With Independent Auditom' Report Thereon) iv I. ...-. -I~ .LkLIII 1-m. 1-*- , SENT BY’:KPbiG PEAT MARW ICK ; 1% 1-91 I .5:04Pbi ; +-. I U-I - SAN DIEGU- CA- I” - 4341987:s 3’16 The Board of Commksionars Carlsbad Redevelopment Agency Carlsbad, California: We have audited the combined balance sheet of the Carlsbad Redevelopment Agency (a component unit of the City of Carlabad, California) as of June 30, 1991, the related combined statement of revenues, expendituree, and changee in fund balance, and the related combined statement of revenues, expenditures and change6 in fund balance - budget and actual (budgetary basis) for the year then ended. These combined financial statements are the reeponsibility of the Agency ’ a management. Cur responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit. in accordance with generally accepted auditing etandarde. Those s tandarde require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material miestatement. An audit includes examining, on a test basis, evidence supporting the amounts and discloeurss in the comb ined financial statements. An audit also includes asseseing the accounting principles used and significant eetimates made by management, a8 well a6 evaluating the overall financial statement presentation, We believe that our audit provides a reaeonable baeia for our opinion. In our opinion, the combined financial. statements referred to above present fairly, in all material respect6, the financial position of the Carlsbad Redevelopment Agency at June 30, 1991 and the results of ite operations for the year then ended in conformity with generally accepted accounting principles. October 8, 1991 , , , 2 d .3 0 u LEE, u w ~a 2 bdti*,ld -ooooo-Z.-i al’cIWIu~WTIU m c ” Y mJY w c Cl 0 0 01 .o > c ‘A .rl m~aJusolbma* - > 2 > 0 > 0.d 9 aJ 4~L4L4”L4v)v)“O 9aJal’o)C~o)~ ln*m.rlulb4a 3 TlaJal)oI cxtio: 25 .’ I I 25 . * da r-- 3 .z ” . -Id .-. s;z 0-r a ” 5s ,” z I I 1 I I I I 91/9 #:L86lfM +v3 ~YXI~ ws : Wd9O:S : 16-P 41: X31 AWN IVJd !NdW: A54 .LUS EC ’ ; BY.: xEPU-/ TELE’XP I ER 7c3 10 ; ;I - 4-91 : 5:07m :’ SENT BY:KPMG PEAT MARRICK CC I T_Z_ G3+ _ ;# ” SAN DIEGC .A* 4341987:# 7~6 CARLRRAD REDEVELOPM Notes to Combined’Financial Statements June 30, 1991 (1) O~ganization and Aureraary of S&nificant &xQ.u&~~ Polk& The Carlsbad Redevelopment Agency (the Agency) was established in July 1976 with the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant to the California Community Redevelopment Law, now codif ied as Part 1, Division 24, of the state of California Health and Safety Code. The Agency has the broad authority to acquire, rehabilitate, develop, administer and sell or lease property. The principal ob jet tives of the Agency are to eliminate blighted influences within the “Village Area” of the City of Carlebad, stimulate and attract private investment, generate added employment through increased specialty goods and services and expand the City’s sales tax revenue. The Agency is an integral part of the reporting entity of the City of Carlabad (the City). The funds and account group of the Agency have been included within the ecope of the general purpose financial statements of the City because the City Council exercises oversight responeibility over the operations of the Agency. Only the funds and account group of the Agency are included herein; therefore, these financial statements do not purport to represent the financial position or resulte of operations of the City of Carlsbed, California. The accounting policies of the Agency conform to generally accepted accounting principles as applicable to governmental urlit6. The following is a summary of the more significant policies: (a) B&s of . PresentatlQn ! The accounts of the Agency are organised on the basis of funds or account group, each of which is considered to be a septarate accounting entity. The operations of each fund or account group are accounted for by providing a separate aat of self-balancing accoun ta that comprise its askets, liabilities, fund balance, revenues, and expenditures . The various funds and account group are sumrnarized by type in the financial statement8. The fund types and account group used by the Agency are as follows: Governmental funds are used to account for the Agency’s expendable financial resources and related liabilities. The measurement f ocua is upon determination of changes in financial position. The following are the Agency’s governmental fund typee: (Continued) RI,‘,) BY : XEROX TELECOP I ER 701EIl - &IT BY:KPMG PEAT MARWICK :. - 4-91 : 5:07PM :’ cc - I333 SAN DIE&. CA- ;# 8 4341987:s 8/16 , ‘; _ 1 ,‘, ,,’ ,‘, I’, ’ ,’ ., * ;, ; , /I., > I , ,’ ‘i ,i.;;, IIs. ,, .I 2 * ,. ..I!.$ .* ‘.i ,, ‘,, , , : .; ‘ : . CARLSBAD REDEVELOPMENT AGENCY Notee to Combined Financial Statements, Continued , . (1) mation and S-y of Saafica nt Accounting Policies, Contw (a) Baeis of tientation, Cgntinued: SDecial Revwe Funda Special revenue funds are used to account for revenues derived from specific sources (other than major capital projects) that are restricted by law or administrative regulation to expenditures for specified purposes. . Debt fbrnce FUn& Debt eervice funds are used to account for the accumulation of resources for, and payment of general long-term debt principal, interest and related coats. Capi ta1 projects fund8 are used to accow t for financial resources to be used for the acquisition or eonatruction of major capital facilities. CWem-TERM DWCCOUNT GEQU .: This account group ie used to establish accounting control and accountability for the Agency's general long-term debt. It ie used to account for all long-term obligationa of the Agency. . (b) MeasuxementFocueand fo r Acc~ : Governmental fund types are accounted for on a “spending” measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets, and the reported fund balance provides an indication of available, a pendab le reEource8. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable ree+ources. (Continued) f?C’.I B'Y : ;rERW TtLtf,ur I m 'MIIIJ i t .,, --1 SENT B~:KPMG PEAT MARWICK --- 4-91 : 5:08PN : SAY Dl+ CA* - x341987:2 a/i6 CARLSBAD REDEVELOPMENT AGENCY I -.. Notes to Combined Financial Statemente, Continued . . (1) Q~nization an&Summarv of S-a nt AccoUg Policies t CQntirlucd The modified accrual basis of accounting ie utilized by the governmental fund types. Revenues are recognized when susceptible to accrual, i.e., both measurable and available. Available mean6 collecl’tihle within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include the tax increment on real property taxes and interest income. Real property taxes are levied on October 15 against owners of record at March 1. The taxes are due in two installments, on November 1 and February 1, and become detinquent after December 10 and April 10, respectively. Tax liens attach annually as of L2:Ol a.m. on the first day of March in the fiecal years for which the taxes are levied. Under the provisions of NCGA interpretation 3, property tax revenue ie recognized in the fiscal year for which the taxes have been levied, provided It ie collected within 60 days of the end of the fiscal year. Governmental fund expenditures are recognized when the liability is incurred, except for principal and interest on long-term debt which ig recognieed when due. Encumbrance accounting, under which purchase orders, contracte and other commitments for the expenditure of moniee are recorded in order to reserve that portion of the applicable appropriation, is employed ae an extension of formal budgetary control in the governmental funds. Encumbrances outstanding at year-end do not constitute expenditures or liabilities, but are repor ted as reservations of fund balance fur subsequent-year expenditures. (d) Cash ti Investmenta: The Agency participates in the pooled cash and investment fund of the City of Carlsbad. Pooled investments are stated at cost or amortized co6 t. The Agency’s equity in the pooled cash is included in the financial statements as cash and investments. Interest earned as a result of the pooling is allocated to the Agency based on its average monthly balances. (Continued) . RC’J BY: XEROX TELECOPIER 7EllB - : r-f--T G3-r - ; #lr17 - 'SENT I3Y:KPMC PEAT MARWICK .- 4-91 : 5:09PM : SAN DIEL . CA-, 4341987:+10/16 4 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (1) Oraanizatfon and Summ~ of ginnificant Accoufltinfr p 1. 13~ ConGn,U& Vacation pay is payable to employees at the time used or upon termination of employment, Sick leave accrued but unused is cumulative from year to year. The co8 t of accumulated vacation and sick leave expected to be paid in the next 12 months is recorded aa a fund liability and amounts expected to be paid after 12 monthe (if any) is recorded in the general long-term debt account group. Total columne on the accompanying combined ffnancial statements are captioned “To tale (Memorandum Only)” to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changea in fund balance in conformity with generally accepted accounting principles. Neither is such data comparable . to a consolidation. Interfund eliminations have not been made in the aggregation of this data. The budget for the Agency is established by the City of Carlebad. The City’8 Manager is authorized to make transfers of appropriated amounts within a fund and function for up to $f5,000. Revisions that alter the total appropriations of any fund or function must be approved by the City Council. A mid-year budget review ie conducted each year. Any major changes to the adopted budget are approved by the City Council at that time. Budge t 8 are adopted on the modif ied accrual basis, except that encumbrancea are treated as budgeted expenditurea in the year purchases are committed. Expenditurea may not exceed budgeted appropriations at the departmental level. Unencumbered appropriations lapse at year-end. Annual budgets are adopted for the special revenue and debt service fund@. There were no encumbrances outstanding for the special revenue or the debt service funds as of June 30, 1991. (Continued) RQ$ &f : YEl?OX TELt’Ai- I tK lwlw I .SEVT RY:KPMG PEAT MARWICK ---- 4-91 ; 5:ugp)j ; SA?4 DIEf* CA- - 4311987;$11!16 ; -. il’f” fi,jii’: ‘:’ . , , ,: , ‘d. .-,/., sj ,.., t “.r\..’ / r.qj; pi i’ ‘$ ;$,) /a’:,;’ ! .i*C,‘jrl;;: ;,I!:,! j 5 1 . __ . :.r:,i~,,,+~ ‘; ; I ,‘A ‘(1,‘. ‘:I ( ,ir ,4,:t, .,a. ,,.-Ib _ . .... . .,.... _ ~._ _ i ‘- . . . . L.. 1 . .,.. CARLSBAD REDEVELOPMENT AGEIWY Notes to Combined Financial Statements, Continued (3) f&&2nLJandvestmenta The Agency participates in the pooled cash fund of the City. In addition, some depO8it8 are held separately by several of the Agency’e funds. Authoritv mosits & Inveew : The Agency’s investment policy and atate statutes authorize the Agency to invest in demand and time deposits, obligation8 of the U.S. Treasury, its agencies and inetrumentalitics, commercial paper rated A-l by Standard and Poor’8 Corporation or P-l by Moody’8 Commercial Paper record, banker ’ 8 acceptance8 with a maximum maturity of 270 days, repurchase and reverse repurchase agreements, certificates of depoeit with national and etate liccneed or obartered banks or federal or state saving6 and loan associations, money market and mutuztl funds whose portfolio8 consist of one or more of the foregoing investments, and the State Treasurer'8 investment pool. State statutes require that all depO8it8 be insured or collateralieed. Depo6itOrie8 holding public funda on deposit are required to maintain collateral in the form of a pool of securities with the agent of the depository having a market value of at least 10 to 50 percent in excess of the total amount of all public fund8 on deposit. The following summary present8 the amount of the Agency deposit8 which are fully ineured or collateralized with eecutities held by the Agency or it8 agent in the Agency’s name (Category One), those depoai ts which are collateralieed with securitiee held by the pledging financial inetitution’s trust department or agent in the Agency’s name (Category TwQ), and thoee deposit8 which are not collateralized or are collateralized with aecuritiea held by the pledging financial institution or its trust department or agent but not in the Agency’s name (Category Three) at June 30, 1991. Total Category Category category Bank Carrying Tilsw?..f: Balance Ammmt Cash on deposit with trustee S& L415.089 J.151.165 4.566.254 h.566.254 (Continued ) i ‘d’, LJ I . “LO’~,, I LLL’d’JI ,L,\ ,C’J.U I , ._._ I I I ‘-1-I’ >ENT B‘;.:KPMG PEAT MARWICK :-- 4-91 : 5:10PM : S.Qi DIET- CA- - , TiLi X341987:$12/16 .----.-... . .._.. _, ..-*., ._.. . _ _ 7y+u Af31’J &,,J$&iry ‘IfA ‘.s. .... -..._.__,__ 6 I- W!? !il‘!‘ii’l~l, $fjj;J ;;:,:yrr,+ ;,,tiI i I . . ,.I,‘.!;,.‘,: ,?.:.~~~ q:(l) ;(I “;.L’,,,. :,il; - .., . i CARLSBAD REDEVELOPMENT AGENCY ” . . / Notes to Combined Financial Statements, Continued (3) llaeh,and XnvWte. Continued Invee tlR&,g : At June 30, 1991, the Agency had $3,250,667 invested in the pooled cash fund of the City. As securitiee are not used a8 evidence of the Agency’s investment in this fund, these amounts cannot be claeeified according to the level of risk assumed by the Agency. The Agency’8 employees are included in the City’s pension plan which is administered by the California Public Employees Retirement System (PERS), PERS ie an agent multiple-employer public employee retirement system that acts a8 a common investment and adminietrative agent for participating public entities within the state of California. All full-time employees are eligible to participate as members of the PERS. Benefits vest after an employee hae been a member of the plan for five years, Employees are eligible to retire after the age of 50 with 5 yeara of credited service, Annual retirement benef i ta are determined based on age at retirement, the length of membership eervice and the amount of earninga baeed on the highest twelve consecutive months average, The PERS also’ provides death alld disability benefits, These benefit provisions and all other requirements are established by state statute. Employees are required to make contributions equaling 7 percent of gross PRY* Thie is paid by the City for the benefit of the employee8 in lieu of salary. The City is aleo required to contribute the remaining amount8 necessary to fund the benefits for its membera, using the actuarial basis recommended by the PERS actuaries and actuarial consultants and adopted by the PER3 Board of Administration. Additional disclosures required by Governmental Accounting Standards Board Statement No. 5 are not: available for the Agency as a separate entity. Thie information for the City’s reporting entity is presented in the Compreheneive Annual Financial Report of the City of Carlsbad. (Continued 1 I\'&< Yl . .i, .Y,/ *-LL--, *-.* .-..- , ,SENT B’i:KPMG PEAT MARWICK -‘- d-91 ; ,j:llf'M ; SAN Dl+- Ci: - 4341987:*13:16 .., ‘,;, ,$ .’ ,, I. 4. 4 ,‘.,,, I, :, ,, ,,: I; 1 7 *. ., -,y-. _.,, -,:‘?.’ c,,,.: ,, ‘A. .:$ c’ * i ; cARLSBAD REDEVELOPMENT AGENCY . -.. t ‘-. . . . .._( ,; Notes to Combined Financial Statements, Continued (5) m-term Debt The following is a summary of changes in long-term debt for the year ended June 30, 1991: Advances from the City of Carlsbad Principal Principal Balance Balance July 1, Addftional Principal June 30, Qllupati m u!u :‘, $ 6,488,451 531,203 Bonds payable l=iumL!! I.- 25S.QDO 1147459QQQ $ J8.488.QJ, 531.203 2iiiuQQ .76&a Since activation of the Redevelopment Agency in July 1976, the City has advanced the Agency monies for approved expenditures. Advances from the City require interest at 10% per year. There is no stated maturity date. The Bonds payable consist of $11,745,000 in 1988 Carlsbad Houaing and Redevelopment Commieeion Tax Allocation Bonds. Principal is due in amounts ranging from $255,000 to $595,000 on April 1 of each year through 2003, a principal payment of $2,890,000 on April 1, 2007, and a principal payment of $3,950,000 on April 1, 2011. The principal payments of $2,890,000 and $3,950,000 are subject to mandatory sinking fund redemption which amounts are reflected in the debt service requirements below. Interest is payable on October 1 and April I of each year at rates varying from 5.5% to 7.55% per annum. (Continued) JLI t I y I v nl mu L LA I wu~n I Ln .l~‘- f-ill , .J.111-31 ’ ,.J.-i;‘l u 1 cuv. L-4’ iJfL’JUi ,=l-lil” _ _ . -. ,” .I. “’ I / I PI’,;‘,, ;’ a,, . 1, ,!’ ” , (. 8 ;! .,.a_ CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (5) b-term Debt. Continued (6) v Under Onertat;inn Lea- 2$!, ” 1 . /.-’ Debt service requiremente to maturity for the bond@, including sinking fund payments ,-are as follows: 1992 $ 1,133,328 1993 1,137,938 1994 1,135,828 1995 1.142.222 1996 1,146,598 1997-2001 5,771,612 2002-2004 5,844,526 2007-201.1 5,929.949 Lea6 amounts repreeenting interest Bonds payable 23,241,992 11,49h,992 ULdLUUl At June 30, 1991, the Agency was in compliance with all signif icant debt covenan t8, In June 1988, the Agency entered into an agreement to lease a parking lot from a private party. The lease requiree annual rental payments of $37,020 for twenty yeare. Rent expenee was $37,020 for the year ended June 30, 1991, In May 1990, the Agency entered into an agreement to lease a parking lot on Carlsbad Village Drive from a private party. The leaee requires monthly rental payments of $4,350 commencing July 1, 199: for five years. Total annual rent expense is $52,200. ‘i t! I ,!L (Continued) ECU BY: ::ERO.:< TELEIIIP IER 7010 L ; Q-ATT Es+ - : 81: - ,SENT BY:KPMCi PEAT MARH'ICK ,- 4-91 : 5:12PM : S.W DIE CA+ CARLSBAD REDEVELOFMENT AGENCY Notes to Combined Financial Statemento, Continued (6) Qldig&ha Undo . r OP- Leases. The following is a schedule by year of future minimum rental payments required under the operating lease at June 30, 1991: June 30, 1992 1993 1996 1995 1996 Thereafter Annual Rentalmneee $ 89,220 89,220 89,220 89,220 37,020 Total minimum lease payments !hiuda! (7) Fund Balances Reserves for loan receivable and low and moderate income housing are eatabliehed to show that certain assets are already committed to other purposes and are not available for discretionary expendituree. Reserve for debt service represents reeourcee legally restricted to the payment of general long-term debt principal and interest maturing in future yenre. Reeerve for encumbrances represent commitments related to unperformed contracts for services and undelivered goods. Unrestricted-designated for approved capital projecta represents the fund balance expected to be used for the acquisition or construction of major capital facilities. Unreserved-undesignated balsncee represent the fund balance remaining after reduction for reserved and designated fund balances. (8) Q&her wired I&&,&$&, Fund Dm Expenditures exceeded appropriations in the following funds: Special Revenue Fund: General government &penditrw AooroPtiatian @I”7 S 3,199 Debt Service Fund: General government 15,275 Interest and fiscal charges 1,408,355 1,378,603 PC’J * BY : XEROX TEiECOP I EE 7’018 ; _ SENT BY:KF’MG PEAT YARffICK - 2- J-91 : 5:12PM ;’ - .’ ‘IL 1 TT 1:34 _ SAN D: . !, CA- ; #lE, 434i987mm ” P” .- . . ,., 1’ ‘I,, )I.?. I# i 4 ‘I 11 : 1 ._’ !I>.. ,, !?. . / j ;; y. ,,, 1; 1 ::.q “h:; il’p ,:;,, :.’ ;- . ‘1 .: .\ : ,. ‘b . _. .’ .‘, .’ “,, . . ,, L, F Independent Auditore’ Report On Compliance With Audit Guidelines . For Nia RedevPloPme&hnenczeR The Board of Commissioners Carlobad Redevelopment Agency Carlsbad, California: We have audited the combined financial statements of the Carlsbad Redevelopment Agency (a component unit of the City of Carlabad, California) as of and for the year ended June 30, 1991, and have issued our report thereon dated October 8, 1991. These combined financial statements are the responsibility of the Agency’6 management. Our responsibility fs to express an opinion on these combined financial etatements based on our audit. In connection with our audit, we performed the procedures contained in the publication entitled Guiw. for C-e AU&R of CaUfomia ede elooment Aaenciu ae promulgated by the Controller of the State of R v California in connect& with a review of the Agency’s compliance with laws, regulatione and adminie trative requirementa governing activities of the Agency, as required by Section 33080.1(a) of the Health and Safety Code of the State of California. The procedures we preformed would not necessarily disclose instances of noncompliance because they were bat,ed on selective teats of accounting records and related data. During the performance of the aforementioned procedures, nothing came. to our attention that would lead ua to believe that the Carlsbad Redevelopment Agency of the City of Carlabad did not comply with applicable laws, regulations and administrative requirementa governing it8 activities. This report is to be used solely for filings with appropriate regulatory agencies and is not intended for any other purpose. This restriction is not intended to limit the dfstribution of this report which, upon acceptance by the agency, ie a matter of public record. October 8, 1991 CARLSBAD REDEiVELOPMENT AGENCY Combined Financial Statements June 30, 1991 With Comparative Totals for June 30, 1990 (With Independent Auditors' Report Thereon) Certified Public Accountants 750 B Street San Diego, CA 92101 IndeDendent Auditors’ Reoort The Board of Commissioners Carlsbad Redevelopment Agency Carlsbad, California: We have audited the combined balance sheet of the Carlsbad Redevelopment Agency (a component unit of the City of Carlsbad, California) as of June 30, 1991, the related combined statement of revenues, expenditures, and changes in fund balance, and the related combined statement of revenues, expenditures and changes in fund balance - budget and actual (budgetary basis) for the year then ended. These combined financial statements are the responsibility of the Agency’s management. Our responsibility is to express an opinion on these combined 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 combined financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined 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 combined financial statements referred to above present fairly, in all material respects, the financial position of the Carlsbad Redevelopment Agency as of June 30, 1991 and the results of its operations for the year then ended in conformity with generally accepted accounting principles. October 8, 1991 L-4030 -lPlv\O omwo ^ ^ - . dr-mm -44w-3 d hW m ^ 9d 4 ^ 01 z 0 I d s 3 I- D I - m z a + ;2 m ^ I r- N 3 r-.b 2 I - N ,” I I z 0 - I z In c d r‘r- CUO 4 cI1 OQ\ - -I 1. di- 44 4 .I% F-l.0 “,gz -I I 0; -; a * P, 4 cn ^ d I I I I I I I I I I I I : u m % I r-r- N 5: d m 9 m 0 N 2 i I c-7 0 N ^ G 0 w ” 4-l .,-I s> 0: cn $2 NO - -I c-49 NO mc4 * II u-l a < : .F L 0 > al ” .rl p u I -gi 0: : J j 4 . : : . I I I I I I I i 2 2 ” A Q u * .d w I I I h s;z 0-f e . 55 * ^ 44 F-r- *VI 03 . ^ :; FIJO . - dd I I I I I I . . u.4 0 5 on a .5 h 5 w 0 ..-I u u Q Q aI al z 2 Q Q F-l 4 2 n Q u -0 5 s La Lr . :: ii e ,” Q A.8 a d Q .d 2 2 .r( w CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements June 30, 1991 (1) Ornanization and Summarv of Significant Accounting Policies The Carlsbad Redevelopment Agency (the Agency) was established in July 1976 with the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant to the California Community Redevelopment Law, now codified as Part 1, Division 24, of the state of California Health and Safety Code. The Agency has the broad authority to acquire, rehabilitate, develop, administer and sell or lease property, The principal objectives of the Agency are to eliminate blighted influences within the “Village Area” of the City of Carlsbad, stimulate and attract private investment, generate added employment through increased specialty goods and services and expand the City’s sales tax revenue. The Agency is an integral part of the reporting entity of the City of Carlsbad (the City). The funds and account group of the Agency have been included within the scope of the general purpose financial statements of the City because the City Council exercises oversight responsibility over the operations of the Agency. Only the funds and account group of the Agency are included herein; therefore, these financial statements do not purport to represent the financial position or results of operations of the City of Carlsbad, California. The accounting policies of the Agency conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant policies: (a) Basis of Presentation: The accounts of the Agency are organized on the basis of funds and an account group, each of which is considered to be a separate accounting entity. The operations of each fund and account group are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures. The various funds and account group are summarized by type in the financial statements. The fund types and account group used by the Agency are as follows: GOVERNMENTAL FUND TYPES: Governmental funds are used to account for the Agency’s expendable financial resources and related liabilities. The measurement focus is upon determination of changes in financial position. The following are the Agency’s governmental fund types: (Continued) 2 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (1) Oraanization and Summary of Significant Accounting Policies, Continued (a) Basis of Presentation. Continued: Special Revenue Funds Special revenue funds are used to account for revenues derived from specific sources (other than major capital projects) that are restricted by law or administrative regulation to expenditures for specified purposes. Debt Service Funds Debt service funds are used to account for the accumulation of resources for, and payment of general long-term debt principal, interest and related costs. Caoital Proiects Funds Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. GENERAL LONG-TERM DEBT ACCOUNT GROUP: This account group is used to establish accounting control and accountability for the Agency’s general long-term debt. It is used to account for all long-term obligations of the Agency. (b) Measurement Focus and Basis for Accounting: Governmental fund types are accounted for on a “spending” measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets, and the reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. (Continued) 3 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (1) Organization and Summarv of Significant Accounting Policies, Continued The modified accrual basis of accounting is utilised by the governmental fund types. Revenues are recognized when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include the tax increment on real property taxes and interest income. Real property taxes are levied on October 15 against owners of record at March 1. The taxes are due in two installments, on November 1 and February 1, and become delinquent after December 10 and April 10, respectively. Tax liens attach annually as of 12:Ol a.m. on the first day of March in the fiscal years for which the taxes are levied. Under the provisions of NCGA Interpretation 3, property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided it is collected within 60 days of the end of the fiscal year. Governmental fund expenditures are recognized when the liability is incurred, except for principal and interest on long-term debt which is recognized when due. (c) Encumbrances: Encumbrance accounting; under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the governmental funds. Encumbrances outstanding at year-end do not constitute expenditures or liabilities, but are reported as reservations of fund balance for subsequent-year expenditures. (d) Cash and Investments: The Agency participates in the pooled cash and investment fund of the City of Carlsbad. Pooled investments are stated at cost or amortised cost. The Agency’s equity in the pooled cash is included in the financial statements as cash and investments. Interest earned as a result of the pooling is allocated to the Agency based on its average monthly balances. (Continued) 4 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (1) Ornanization and Summarv of Significant Accountinn Policies. Continued (e) ComDensated Absences: Vacation pay is payable to employees at the time used or upon termination of employment. Sick leave accrued but unused is cumulative from year to year. The cost of accumulated vacation and sick leave expected to be paid in the next 12 months is recorded as a fund liability; there currently are no amounts expected to be paid after 12 months. (f) Total Columns: Total columns on the accompanying combined financial statements are captioned “Totals (Memorandum Only)” to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in fund balance in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. (2) Budnetarv Data The budget for the Agency is established by the City of Carlsbad. The City Manager is authorized to make transfers of appropriated amounts within a fund and function for up to $15,000. Revisions that alter the total appropriations of any fund or function must be approved by the city Council. A mid-year budget review is conducted each year. Any major changes to the adopted budget are approved by the City Council at that time. Budgets are adopted on the modified accrual basis, except that encumbrances are treated as budgeted expenditures in the year purchases are committed. Expenditures may not exceed budgeted appropriations at the departmental level. Unencumbered appropriations lapse at year-end. Annual budgets are adopted for the special revenue and debt service funds. There were no encumbrances outstanding for the special revenue or the debt service funds as of June 30, 1991. (Continued) 5 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (3) Cash and Investments The Agency participates in the pooled cash fund of the City. In addition, some deposits are held separately by several of the Agency’s funds. Authority for Deposits and Investments: The Agency’s investment policy and state statutes authorize the Agency to invest in demand and time deposits, obligations of the U.S. Treasury, its agencies and instrumentalities, commercial paper rated A-l by Standard and Poor’s Corporation or P-l by Moody’s Commercial Paper record, banker’s acceptances with a maximum maturity of 270 days, repurchase and reverse repurchase agreements, certificates of deposit with national and state licensed or chartered banks or federal or state savings and loan associations, money market and mutual funds whose portfolios consist of one or more of the foregoing investments, and the State Treasurer’s investment pool. State statutes require that all deposits be insured or collateralized. Depositories holding public funds on deposit are required to maintain collateral in the form of a pool of securities with the agent of the depository having a market value of at least 10 to 50 percent in excess of the total amount of all public funds on deposit. DeDosits: The following summary presents the amount of the Agency’s deposits which are fully insured or collateralized with securities held by the Agency or its agent in the Agency’s name (Category One), those deposits which are collateralized with securities held by the pledging financial institution’s trust department or agent in the Agency’s name (Category Two), and those deposits which are not collateralised or are collateralized with securities held by the pledging financial institution or its trust department or agent but not in the Agency’s name (Category Three) at June 30, 1991. Total Category Category Category Bank Carrying One Two Three Balance Amount Cash on deposit with trustee $ zacm 3.415-1.151.165 (Continued) 6 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (3) Cash and Investments. Continued Investments: At June 30, 1991, the Agency had $3,218,705 invested in the pooled cash fund of the City. Since securities are not used to evidence the Agency’s investment in this fund, these amounts cannot be classified according to the level of risk assumed by the Agency. (4) Pension Plan The Agency’s employees are included in the City’s pension plan which is administered by the California Public Employees Retirement System (PERS). PERS is an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the state of California. All full-time employees are eligible to participate as members of the PERS . Benefits vest after an employee has been a member of the plan for five years. Employees are eligible to retire after age 50 with 5 years of credited service. Annual retirement benefits are determined based on age at retirement, the length of membership service and the amount of earnings based on the highest twelve consecutive months average. The PERS also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. i Employees are required to make contributions equaling 7 percent of gross pay. This is paid by the City for the benefit of the employees in lieu of salary. The City is also required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS actuaries and actuarial consultants and adopted by the PERS Board of Administration. Additional disclosures required by Governmental Accounting Standards Board Statement No. 5 are not available for the Agency as a separate entity. This information for the City’s reporting entity is presented in the Comprehensive Annual Financial Report of the City of Carlsbad. (Continued) 7 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (5) Long-term Debt The following is a summary of changes in long-term debt for the year ended June 30, 1991: Principal Balance July 1, Additional Principal 1990 Oblinations Retirements Advances from the City of Carlsbad $ 6,488,651 501,203 Bonds payable 12.ooo.QQQ 255.ooo $18.488.651 2QLb2Q3 255.ooo Principal Balance June 30, 1991 6,989,854 11.745.000 18,7349-U Since activation of the Redevelopment Agency in July 1976, the City has advanced the Agency monies for approved expenditures. Advances from the City bear interest at 10% per year. There is no stated maturity date. Bonds payable consist of $11,745,000 in 1988 Carlsbad Housing and Redevelopment Commission Tax Allocation Bonds. Principal is due in amounts ranging from $255,000 to $595,000 on April 1 of each year through 2003, a principal payment of $2,890,000 on April 1, 2007, and a principal payment of $3,950,000 on April 1, 2011. The principal payments of $2,890,000 and $3,950,000 are subject to mandatory sinking fund redemption which amounts are reflected in the debt service requirements below. Interest is payable each year on October 1 and April 1 at rates varying from 5.5% to 7.55% per annum. (Continued) 8 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (5) Long-term Debt. Continued Debt service requirements to maturity for the bonds, including sinking fund payments, are as follows: 1992 $ 1,133,328 1993 1,137,938 1994 1,135,828 1995 1,142,222 1996 1,146,598 1997-2001 5,771,612 2002-2006 5,844,526 2007-2011 5,929,94Q 23,241,992 Less amounts representing interest 11.496.992 Bonds payable $11.745.o00 At June 30, 1991, the Agency was in compliance with all significant debt covenants. (6) Obligations Under Oueratinn Leases In June 1988, the Agency entered into an agreement to lease a parking lot from a private party. The lease requires annual rental payments of $37,020 for twenty years. Rent expense was $37,020 for the year ended June 30, 1991. In May 1990, the Agency entered into an agreement to lease a parking lot on Carlsbad Village Drive from a private party. The lease requires monthly rental payments of $4,350 commencing July 1, 1991 for five years. Total annual rent expense is $52,200. (Continued) 9 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (6) Obligations Under Ooeratinn Leases. Continued The following is a schedule by year of future minimum rental payments required under the operating lease at June 30, 1991: Year ending June 30, Annual Rental EXDenSeS 1992 $ 89,220 1993 89,220 1994 89,220 1995 89,220 1996 37,020 Thereafter 444.240 Total minimum lease payments hULUQ (7) Fund Balances Reserves for the loan receivable and low and moderate income housing are established to show that certain assets are already committed to other purposes and are not available for discretionary expenditures. Reserve for debt service represents resources legally restricted to the payment of general long-term debt principal and interest maturing in future years. Reserve for encumbrances represent commitments related to unperformed contracts for services and undelivered goods. Unreserved-designated for approved capital projects represents the fund balance expected to be used for the acquisition or construction of major capital facilities. Unreserved-undesignated balances represent the fund balance remaining after reduction for reserved and designated fund balances. (Continued) 10 CARLSBAD REDEVELOPMENT AGENCY Notes to Combined Financial Statements, Continued (8) Other Reauired Individual Fund Disclosures Expenditures exceeded appropriations in the following funds: Special Revenue Fund: General government Expenditure ADDroDriation $ 3,819 Debt Service Fund: General government Interest and fiscal charges 15,275 1,408,355 1,378,603 Certified Public Accountants 750 B Street San Diego, CA 92101 Independent Auditors' Report On Compliance With Audit Guidelines For California RedeveloDment Anencies The Board of Commissioners Carlsbad Redevelopment Agency Carlsbad, California: We have audited the combined financial statements of the Carlsbad Redevelopment Agency (a component unit of the City of Carlsbad, California) as of and for the year ended June 30, 1991, and have issued our report thereon dated October 8, 1991. These combined financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these combined financial statements based on our audit. In connection with our audit, we performed the procedures contained in the publication entitled Guidelines for Comnliance Audits of California Redevelo-pment Agencies as promulgated by the Controller of the State of California in connect& with a review of the Agency's compliance with laws, regulations and administrative requirements governing activities of the Agency, as required by Section 33080,1(a) of the Health and Safety Code of the State of California. The procedures we preformed would not necessarily disclose instances of noncompliance because they were based on selective tests of accounting records and related data. During the performance of the aforementioned procedures, nothing came to our attention that would lead us to believe that the Carlsbad Redevelopment Agency of the City of Carlsbad did not comply with applicable laws, regulations and administrative requirements governing its activities. This report is to be used solely for filings with appropriate regulatory agencies and is not intended for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the Agency, is a matter of public record. October 8, 1991