HomeMy WebLinkAboutOversight Board-Successor Agency of the RDAREGULAR MEETING
OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
OF THE CITY OF LAKE ELSINORE
AGENDA
BRIAN TISDALE, CHAIR WWW.LAKE•ELSINORE.ORG
JUSTIN CARLSON, BOARD MEMBER
DAVE OSTER, BOARD MEMBER
GENIE KELLEY, BOARD MEMBER
GEORGE LANDON, BOARD MEMBER
ROGER SCHULTZ, VICE CHAIR
PHIL WILLIAMS, BOARD MEMBER
(951) 674.3124 PHONE
(951) 674 -2392 FAX
LAKE ELSINORE CITY HALL
130 SOUTH MAIN STREET
LAKE ELSINORE, CA 92530
. ..................... ............................... u . 11......................•.•
January 8, 2013 at 3:45 P.M.
NOTE: THIS MEETING AND SUBSEQUENT MEETINGS OF THE OVERSIGHT BOARD
WILL BE HELD IN CONFERENCE ROOM "A" IN THE LAKE ELSINORE CITY HALL
LOCATED AT 130 SOUTH MAIN STREET, LAKE ELSINORE, CALIFORNIA DURING
THE SEISMIC RETROFIT OF THE LAKE ELSINORE CULTURAL CENTER.
The agenda is posted 72 hours prior to each meeting outside of the Lake Elsinore City Hall
located at 130 South Main Street and is available at each meeting. The agenda and
related reports are also available at the Lake Elsinore City Clerk's Office on the Friday prior
to the Oversight Board meeting and are available on the City's website at www.lake-
eisinore.ora. Any writing distributed within 72 hours of the meeting will be made available to
the public at the time it is distributed to the Oversight Board.
In compliance with the Americans with Disabilities Act, any person with a disability who
requires a modification or accommodation in order to participate in a meeting should
contact the Lake Elsinore City Clerk's Office at (951) 674 -3124 Ext. 262, at least 48 hours
before the meeting to make reasonable arrangements to ensure accessibility.
Oversight Board Agenda Page 2 of 3
Meeting of January 8, 2013
CALL TO ORDER - 3:45 P.M.
PLEDGE OF ALLEGIANCE
ROLL CALL
• Mayor Brian Tisdale, Chairman (City of Lake Elsinore — Mayor's appointment)
• Mr. Justin Carlson, Board Member (City of Lake Elsinore — Employee Union
Member)
• Mr. Dave Oster, Board Member (President, Storm Baseball - County Board of
Supervisor's appointment)
• Ms. Genie Kelley, Board Member (County Board of Supervisor's member of the
public appointment)
• George Landon, Board Member (County Superintendent of Schools appointment)
• Dr. Roger Schultz, Vice Chairman (Superintendent/President Mt San Jacinto
Community College District - Community College District appointment)
• Director Phil Williams, Board Member (EVMWD appointment)
PUBLIC COMMENTS — AGENDIZED ITEMS
(Please read & complete a form Request to Address the Oversight Board prior to the start of the Oversight
Board meeting and submit it to the Secretary/Clerk. The Chairperson will call on you to speak when your item
is called.)
PRESENTATIONS
Introduction of Alternate Board Members, if any
CONSENT CALENDAR
None
BUSINESS ITEMS
Public Comment Session — Due Diligence Review (All Other Funds)
Recommendations:
That the Oversight Board receive public comments and any opinions offered by the County
Auditor - Controller on the Due Diligence Review of All Other Funds prepared by White
Nelson Diehl Evans LLP on behalf of the Successor Agency of the Redevelopment Agency
of the City of Lake Elsinore pursuant to California Health and Safety Code Section 34179.5
(the "DDR Report ").
Oversight Board Agenda
Meeting of January 8, 2013
PUBLIC COMMENTS — NOWAGENDIZED ITEMS
STAFF COMMENTS
OVERSIGHT BOARD MEMBER COMMENTS
ADJOURNMENT
Page 3 of 3
The Oversight Board will adjourn this meeting to a special meeting on January 15 at 3:45
pm, at the City Hall, Conference Room A located at 130 S. Main Street, Lake Elsinore, CA.
AFFIDAVIT OF POSTING
I, Virginia J. Bloom, the City Clerk of the City of Lake Elsinore, do hereby affirm that a copy
of the foregoing Agenda of the Oversight Board to the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore Regular Meeting of January 8, 2013
was posted at City Hall 24 hours in advance of this meeting.
Virginia J. Bloom, City Clerk
OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE
TO: CHAIRMAN TISDALE AND MEMBERS OF THE OVERSIGHT BOARD
FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL
DATE: JANUARY 8, 2013
SUBJECT: DUE DILIGENCE REVIEW OF THE
SUCCESSOR AGENCY REQUIRED
SECTION 34179.5
Background
NON - HOUSING FUNDS OF THE
BY HEALTH AND SAFETY CODE
On June 27, 2012, the Legislature passed and the Governor signed Assembly Bill
( "AB ") 1484, a fiscal 2012 -13 budget trailer bill. AB 1484 makes technical and
substantive amendments to ABx1 26 and took immediate effect upon signature by the
Governor.
Discussion
AB 1484 requires a due diligence review ( "DDR ") of the low and moderate income
housing fund ( "LMIHF ") to be completed by October 1, 2012, and a due diligence review
of the remaining funds ( "Other Funds ") to be completed by December 15, 2012. The
LMIHF DDR has been completed and filed.
The Successor Agency of the Redevelopment Agency of the City of Lake Elsinore
( "Successor Agency ") engaged White, Nelson Diehl Evans LLP to conduct the due
diligence reviews. The report on the Other Funds DDR is attached (the "DDR Report").
The purpose of the review is to determine the amount of unencumbered funds, if any,
which may be available for distribution to the taxing entities. The attached DDR Report,
on Schedule 8, states that no unencumbered Other Fund monies are available for
distribution to the taxing entities.
The law requires that the Oversight Board hold a "public comment session" to hear any
public comments and any opinions offered by the County Auditor - Controller at least 5
business days before the Board takes any action with respect to the results of the DDR.
The purpose of this meeting is to hold the required public comment session.
By January 15, 2013, the Oversight Board shall review, approve, and transmit to the
Department of Finance and the County Auditor - Controller the determination of the
AGENDA ITEM 1 Page 1
Public Comment Session
January 8, 2013
Page 2
amount of cash and cash equivalents that are available for disbursement to taxing
entities as determined according to the method provided in Section 34179.5. The
Oversight Board may adjust any amount provided in the review to reflect additional
information and analysis. The review and approval shall occur in public sessions. The
Oversight Board may request from the Successor Agency any materials it deems
necessary to assist in its review and approval of the determination.
After the public comment meeting has been held, the Board will be required to take
action on the DDR Report at its special meeting on January 15, 2013. The Board must
determine the amount of unencumbered Other Funds available, if any, to be transferred
by the Successor Agency to the County Auditor - Controller.
The Oversight Board's determination is due to the DOF and the County Auditor -
Controller by January 15, 2013. There are no express statutory penalties in the event
these tasks are completed later than specified. The DOF has the authority to reject the
determination of the Oversight Board and to adjust the DDR Report numbers. DOF
may take such actions through April 1, 2013. The Successor Agency may contest the
DOF findings and request a meet and confer session within 5 business days of receipt
of the DOF's determination.
Recommendations
That the Oversight Board receive public comments and any opinions offered by the
County Auditor - Controller on the Due Diligence Review of All Other Funds prepared by
White Nelson Diehl Evans LLP on behalf of the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore pursuant to California Health and
Safety Code Section 34179.5.
Prepared and approved by: Barbara Leibold,
City Attorney /Successor Agency Counsel
Attachment: Independent Accountants' Report
AGENDA ITEM 1 Page 2
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT)kGENCY
Independent Accountants' Report on Applying Agreed -Upon Procedures
On the Lake Elsinore Redevelopment Agency's
And
The Successor Agency to the Lake Elsinore Redevelopme"gancy's
All Other Funds
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
Table of Contents
Page
Independent Accountants' Report on Applying Agreed -Upon Procedures
Related to All Other Funds
t
Attachment A - Agreed-Upon Procedures and Findin g s Related to All Other Funds 2
SUPPORTING SCHEDULES AND EXHIBITS:` . x
Nn I
th
Schedule 1 - Listing of Assets Transferred to Successor Agency
as of February 1, 2012
Schedule 2 - Transfers to the City of Lake Elsinore
Schedule 3 - Reconciliation of Financial Transactions for the Perio sided
June 30, 2010, June 30, 2011, January 31, 202 and June 30, 2012
Schedule 4 - Listing of Assets as of June' 2012;
Schedule 5 - Calculation of Unrestricted Asset Balance for I2 4ention
Schedule 6 - Schedule of Cash Balances for Retentivit�to Meq#Enforceable
Obligations in Fiscal Year 2012,201
Schedule 7 - Summary of Balance Available fot Alation to Affected
Taxing Agencies "-
Exhibit I - Launch Ramp Project
Redevelopment A
City of Lake Elsi
Taxing Agenc
Exhibit 2 - City Reimj�urse rrrr nt```JJJJ
Exhibit 3 - City Bo d t
Exhibit 4 - Redev e en
Exhibit 5 - Seismic f roje
Exhibit 6 - Stad uu A ement
emat Agreement Between the
�'*�"City of Lake Elsinore and the
as of March 10, 2011
Requirements LERA
Plan Amendments
Exhibit 7 - n and Development Agreements Dated December 26, 2002
Laing -CP Lake Elsinore LLC and Civic Partners- Elsinore LLC
ated March 8, 2011 - McMillin Summerly LLC
fixhYpi - MG /Chelsea Outlet OPA (BOPS 1, Pages I and 2, Line 8)
Exhibit +9 Agreements for Cooperation Between the Riverside County
Flood Control and Water Conservation District, the City
of Lake Elsinore and the Redevelopment Agency of the
City of Lake Elsinore
Independent Accountants' Report on Applying
Agreed -Upon Procedures Related to All Other Funds
Oversight Board of the Successor Agency
to the Lake Elsinore Redevelopment Agency
Lake Elsinore, California
We have performed the minimum required agreed -upon procedures (AUP) enumerated in
Attachment A, which were agreed to by the California Department `o Finance, the California State
Controller's Office, the Riverside County Auditor - Controller, and the Successor Agency to the Lake
Elsinore Redevelopment Agency (Successor Agency), (collectively, Ae ,Specified Parties), solely to
assist you in meeting the statutory requirements of Health and Safety Code Section 34179.5 related to
all other funds except for the Low and Moderate Income. Housing Fund (All Other Funds) of the
former Lake Elsinore Redevelopment Agency and the,- Successor Agency. Management of the
Successor Agency is responsible for meeting the statutry requirements of Health and Safety Code
Section 34179.5 related to All Other Funds. This agreed "'trppn procedures engagement was conducted
in accordance with attestation standards establisfied'�by fhe American Institute of Certified Public
Accountants. The sufficiency of these procedures is: °solcly the responsibility of those parties specified
in the report. Consequently, we make,po representation regarding the sufficiency of the procedures
described below, either for the purpose for which this report has been requested or for any other
purpose.
The scope of this engagement was Jimitbd to performing the agreed -upon procedures as set forth in
Attachment A. Attachment A ,,a_lso.; identifies the findings noted as a result of the procedures
performed.
We were not engaged to aif&did not conduct an audit, the objective of which would be the expression
of an opinion on whether the Successor Agency has met the statutory requirements of Health and
Safety Code Se6uon�'34179.5 related to All Other Funds. Accordingly, we do not express such an
opinion .o1 [aii, we=performed additional procedures, other matters might have come to our attention that
would°havAeen reported to you.
This report i's intended solely for the information and use of the Oversight Board and management of
the Successor Agency to the Lake Elsinore Redevelopment Agency, the California Department of
Finance, the California State Controller's Office, and the Riverside County Auditor - Controller, and is
not intended to be, and should not be, used by anyone other than these specified parties.
Irvine, California
DATE
1
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
Procedure:
Obtain from the Successor Agency a listing of all assets that were transferred from All Other
Funds of the former redevelopment agency to the Successor Agency on February 1, 2012. Agree
the amounts on this listing to account balances established in the accounting�records of the
Successor Agency. Identify in the Agreed -Upon Procedures (AUP) report thei amo bf the
assets transferred to the Successor Agency as of that date.
Finding:
We agreed the amounts listed on Schedule I to the Success 1 ` xc� accounting records
without exceptions. The former redevelopment agency transfW'ed $66, . 4,177 in assets from All
Other Funds to the Successor Agency as detailed in Schedule 1.
2A. Procedure:
Obtain a listing prepared by the Successor
and services) from All Other Funds of the :
the redevelopment agency for the period f
each transfer, the Successor Agency should
what sense the transfer was required
legal requirements. Provide this latin an
21pof t`rb'§fers (excluding payments for goods
deveIV' ent agency to the city that formed
ge ay 1, 2011 through January 31, 2012. For
the purpose of the transfer and describe in
the Agency's enforceable obligations or other
iment to the AUP report.
Finding:
)_Y
g
The former redeve cy transferred assets totaling $12,073,008 to the City of Lake
Elsinore other tha e` for goods and services from All Other Funds during the period
from January 1,2011 t} rpugh January 31, 2012 as shown in Schedule 2.
2B. Procedure
Obtain; a Ilsting prepared by the Successor Agency of transfers (excluding payments for goods
arE l sgrvic #' from All Other Funds of the Successor Agency to the city that formed the
redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each
transfer, the Successor Agency should describe the purpose of the transfer and describe in what
sense the transfer was required by one of the Agency's enforceable obligations or other legal
requirements. Provide this listing as an attachment to the AUP report.
Finding:
The Successor Agency transferred assets totaling $3,382,492 to the City of Lake Elsinore other
than payments for goods and services from All Other Funds during the period from
February 1, 2012 through June 30, 2012 as shown in Schedule 2.
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
2C. Procedure:
For each transfer, obtain the legal document that formed the basis for the enforceable obligation
that required the transfer. Note in the AUP report the absence of any such legal document or the
absence of language in the document that required the transfer.
Finding:
Schedule 2 shows the details for the enforceable obligation or other legal requirement supporting
the transfers.
3A. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from All Other Funds of the former redevelopment agency to any other public
agency or to private parties for the period from January,1;,2011 through January 31, 2012. For
each transfer, the Successor Agency should describe the purpose of the transfer and describe in
what sense the transfer was required by one of flee Agency's enforceable obligations or other
legal requirements. Provide this listing as an attachment to the AUP report.
Finding:
This procedure is not applicable as'the former redevelopment agency did not make any transfers
to other public agencies or private, parties other than payments for goods and services from All
Other Funds during the period }from:January 1, 2011 through January 31, 2012.
313. Procedure:
Obtain a listing, prepared` by the Successor Agency of transfers (excluding payments for goods
and services),rfro n All Other Funds of the Successor Agency to any other public agency or to
private parties fortle period from February 1, 2012 through June 30, 2012. For each transfer, the
Successor',Agency should describe the purpose of the transfer and described in what sense the
transfer was -required by one of the Agency's enforceable obligations or other legal requirements.
Provide this listing as an attachment to the AUP report.
This procedure is not applicable as the Successor Agency did not make any transfers to other
public agencies or private parties other than payments for goods and services from All Other
Funds during the period from February 1, 2012 through June 30, 2012.
SUCCESSOR AGENCY TO T14E LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
3C. Procedure:
For each transfer, obtain the legal document that formed the basis for the enforceable obligation
that required the transfer. Note in the AUP report the absence of any such legal document or the
absence of language in the document that required the transfer.
Finding:
This procedure is not applicable since no transfers were identified as a result of "Procedures 3A
and 3B.
w�
4. Procedure: K
Obtain from the Successor Agency a summary of the financial Transactions of the Redevelopment
Agency and the Successor Agency for the fiscal periods',, "ended June 30, 2010, June 30, 2011,
January 31, 2012 and June 30, 2012. Ascertain th4tjor4 each period presented, the total of
revenues, expenditures and transfers account fullyAor Ih`6 Changes in equity from the previous
fiscal period. Compare amounts for the fiscal period ended«ibne 30, 2010 to the state controller's
k
report filed for the Redevelopment Agency�f&�,,th�a°eriod. Compare the amounts for the other
fiscal periods presented to the account balances rn the accounting records or other supporting
schedules. r�
Finding:
A reconciliation of the fnanctal transactions of the Redevelopment Agency and the Successor
Agency for the fis l eijo dsnded June 30, 2010, June 30, 2011, January 31, 2012 and
June 30, 2012 is presentedn schedule 3.
5. Procedure:
Obtain from the Successor Agency a listing of all assets from All Other Funds as of
June, 1!2Q, Agree the assets on the listing to the accounting records of the Successor Agency.
Finding:
As of June 30, 2012, the Successor Agency's total assets related to All Other Funds of the former
redevelopment agency amounted to $67,697,875 as shown in Schedule 4.
4
SUCCESSOR AGENCY TO THE LAKE ESLSTNORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
6. Procedure:
Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that were
restricted for the following purposes:
• unspent bond proceeds,
• grant proceeds and program income restricted by third parties, and
• other assets with legal restrictions.
6A. Procedure - Unspent Bond Proceeds: '4
Obtain the Successor Agency's computation of the restricted 'bai -ce�s"and trace individual
components of this computation to related account balances in'the accounting records, or to other
supporting documentation. Obtain the legal document that sets forth the restriction pertaining to
these balances.
Finding:
The Successor Agency has $4,136,905 in cash an8,invcstments held by Union Bank as reserve
balances on bonds issued by the former rede elopme6t agency. The balance of $4,136,905 is
restricted to pay for debt service under the bdhd,'ci,o - cuments and indenture.
613. Procedure- Grant Proceeds arM Prag-ramIncome Restricted by Third Parties:
Obtain the Successor Agcncy`sx-,,computation of the restricted balances and trace individual
components of this computation tc4elated account balances in the accounting records, or to other
supporting documentatiom"', n a copy of the grant agreement that sets forth the restriction
pertaining to these bal
Finding:
This procodur6"istoot applicable as the Successor Agency did not hold any grant proceeds or
`inc -
program lome
,, as of June 30, 2012.
6C. Pr4ce'dure - Other Assets Considered to be Legally Restricted:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records or other
supporting documentation. We obtained the legal document that sets forth the restriction
pertaining to these balances.
Finding:
As of June 30, 2012, the Successor Agency's other legally restricted assets related to All Other
Funds of the former redevelopment agency amounted to $6,905,977 as shown in Schedule 5.
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
Procedure:
Obtain from the Successor Agency a listing of assets of All Other Funds of the former
redevelopment agency as of June 30, 2012 that are not liquid or otherwise available for
distribution and ascertain if the values are listed at either purchase cost or marline# value as
recently estimated by the Successor Agency. For assets listed at purchased cost, trace tine, amount
to a previously audited financial statement or other accounting records of the Successor Agency
and note any differences. For any differences noted, inspect evidence qf, a, set disposal
subsequent to January 31, 2012 and ascertain that the proceeds were deposited, into, 'the Successor
Agency's trust fund. For assets listed at recently estimated market.;yalue, innspect evidence
supporting the value and note the methodology used.
F
Finding:
4
As of June 30, 2012, the Successor Agency's nonliquid assets related to All Other Funds of the
former redevelopment agency amounted to $43,665,598 as,shown in Schedule 7.
8A. Procedure:
If the Successor Agency identified that exNti sset balances were needed to be retained to
satisfy enforceable obligations, obtain d schedule of asset balances (resources) as of
June 30, 2012 that were dedioated es rcted for the funding of enforceable obligations.
Compare the information on the 44&dullrto the legal documents that formed the basis for the
dedication or restriction of the ur alance in question. Compare all current balances which
needed to be retained to satisfy en ceable obligations to the amounts reported in the accounting
records of the Successor:`Agency or to an alternative computation. Compare the specified
enforceable obligation ) tl%9se that were included in the final Recognized Obligation Payment
Schedule (ROPS)? roved by the California Department of Finance. If applicable, identify any
listed balances for wh li the Successor Agency was unable to provide appropriate restricting
language in tlre,legal document associated with the enforceable obligation.
J
Finding.: .
As:of June 30, 2012, the Successor Agency's asset balances to be retained in order to satisfy
enforceable obligations reported on ROPS 1 amounted to $9,236,277 as detailed in Schedule 6a.
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
8B. Procedure:
If the Successor Agency identified that future revenues together with balances dedicated or
restricted to an enforceable obligation are insufficient to fund future obligation payments and
thus retention of current balances is required, obtain from the Successor Agency a' }schedule of
approved enforceable obligations that include a projection of the annual spending requirements to
satisfy each obligation and a projection of the annual revenues available 6� ,fund those
requirements. Compare the enforceable obligations to those that were approybd by the California
Department of Finance for the six month period from January 1, 2012 throughdurie 30, 2012 and
for the six month period July 1, 2012 through December 31, 2012 ompare the forecasted
annual spending requirements to the legal document supporting'tiiC' ne gable obligation and
obtain the Successor Agency's assumptions relating to he forecasted annual spending
requirements. Obtain the Successor Agency's assumptions fcYtt'the f4ecasted annual revenues.
Disclose the major assumptions for the forecasted annual spending requirements and the
forecasted annual revenues in this AUP report.
Finding:
This procedure is not applicable as the Sir sor Agency did not identify any assets to be
retained under this procedure.
8C. Procedure:
If the Successor Agency identifi`ed,thaf orcjected property tax revenues and other general purpose
revenues to be received by the Stiricessor Agency are insufficient to pay bond debt service
payments (considering both thetiming and amount of the related cash flows), obtain a schedule
demonstrating this insufficiency. Compare the timing and amounts of bond debt service
payments to the relateil:,.bond debt service schedules in the bond agreement. Obtain the
assumptions for the' forecasted property tax revenues and other general purpose revenues and
disclose them,imthis AUP report.
Finding:
This procedure is not applicable as the Successor Agency did not identify any assets to be
retained under this procedure.
8D. Procedure:
If Procedures 8A, 8B and 8C were performed, calculate the amount of unrestricted balances
necessary for retention in order to meet enforceable obligations. Combine the amount identified
as currently restricted balances and the forecasted annual revenues to arrive at the amount of total
resources available to fund enforceable obligations. Reduce the total resources available by the
amount of forecasted annual spending requirements. Include the calculation in this AUP report.
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
8D. Finding:
The unrestricted balances necessary for retention to meet enforceable obligations is detailed in
Schedule 6a. The Successor Agency does not expect any revenues to pay for these enforceable
obligations.
9. Procedure:
If the Successor Agency identified that cash balances as of June 30, 2012sneed to-be retained to
satisfy obligations on the Recognized Obligation Payment Schedule (ROPS)''for the period of
July 1, 2012 through June 30, 2013, obtain a copy of the fina1;�OPS' for the period of
July 1, 2012 through December 31, 2012 and a copy o&,,the tins BOPS for the period
January 1, 2013 through June 30, 2013. For each obligation I to on`the ROPS, the Successor
Agency should identify (a) any dollar amount of existing cash'`tl�at was needed to satisfy the
obligation, and (b) the Successor Agency's explanation as'lito why the Successor Agency believes
that such balances were needed to satisfy the obligation. _ Include this schedule as an attachment
to this AUP report.
Finding:
The Successor Agency has identified $$ 1b,'857 in cash balances be retained to satisfy
obligations on the Recognized- Obligatior✓Payment Schedule (ROPS 2) for the period of
July 1, 2012 to December 31, 2012rassh6wn in Schedule 6b.
_r
10. Procedure:
Present a schedule dejakin computation of the Balance Available for Allocation to Affected
AA Taxing Agencid A included in the calculation should agree to the results of the
procedures perf ove. Agree any deductions for amounts already paid to the County
Auditor- ContOo July 12, 2012 as directed by the California Department of Finance to
evidence QM)' a ttt.
Finding:
The computation of the Balance Available for Allocation to Affected Taxing Agencies shows
that the Successor Agency has a deficit of $1,390,739 and there are no amounts to be remitted to
the County for disbursement to affected taxing agencies as shown in Schedule 8.
SUCCESSOR AGENCY TO THE LAKE ESLSINORE REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED -UPON PROCEDURES AND FINDINGS
RELATED TO ALL OTHER FUNDS
11. Procedure:
Obtain a representation letter from management of the Successor Agency acknowledging their
responsibility for the data provided and the data presented in the report or in any schedules or
exhibits to the report. Included in the representations is an acknowledgment that niariagement is
not aware of any transfers (as defined by Section 34179.5) from either the formerredevelopment
agency or the Successor Agency to other parties for the period from January 1 2011 through
June 30, 2012 that have not been properly identified in this AUP report and,its related schedules
or exhibits. Management's refusal to sign the representation letter should be:noted in the AUP
report as required by attestation standards.
Finding:
No exceptions were noted as a result of this Procedure.
N
SUCCESSOR AGENCY TO LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
LISTING OF ASSETS TRANSFERRED TO SUCCESSOR AGENCY
As of February 1, 2012
ASSETS
Cash and investments
Cash with fiscal agent (Bond Trustee)
Accounts receivable
Interest receivable
Due from other governments
Due from other Redevelopment Agency Funds
Land held for resale
SUBTOTAL TOTAL ASSETS (MODIFIED ACCRUAL)
Capital assets
Deferred bond issue costs
TOTAL ASSETS
SCHEDULEI
Total
Assets
as of
Febriiarysl, 2012
17,389,207
2,699,312
S 66,184,177
8,733,489
`� =5zib
41136,111
ka
R,
1,598
97,381
17,038,599
6,088,480
46.095,658
17,389,207
2,699,312
S 66,184,177
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SUCCESSOR AGENCY TO THE LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS
RECONCILIATION OF FINANCIAL TRANSACTIONS FOR THE PERIODS ENDED
JUNE 30, 2010, JUNE 30, 2011, JANUARY 31, 2012 AND JUNE 30, 2012
Assets (modified accrual basis)
Cash and investments
Accounts receivable
Due from other governments
Notes receivable
Prepaid items
Other Assets
Land held for Resale
Due from Other RDA Funds
Due from the City of Lake Elsinore
Total Assets
Liabilities (modified accrual basis)
Accounts payable
Accrued liabilities
Due to other governments
Redevelopment
Redevelopment
Agency
Agency
12 Months Ended
12 Months Ended
6/30/2010
6/30/2011
$ 40,606,222 $ 32,103,301
53,930 6,833
- 6,256
173,732 11,947,361
106,108 60,914
8,803,167 6,136,849
54,440,355 54,992,846
$ 104,183,514 $ 105,254;360
$ 4,051,618 $` 4,632,9,44
7,715 996 -
= 6,526,179
83,246
37,954,247
17,038,599
31,930,218
Net change in equity
Beginning Equity
Ending Equity
Other Information (show year end
balances for all three years presented):
Capital assets as of end of year
(20,567,397)
39,181,625
$ 18,614,228
SCHEDULES
Redevelopment
Successor
Agency
Agency
7 Months Ended 5
Months Ended
1/31/2012
'' 60/2012
31.348,735
$ 30,621,249 "$,
31,135,063
2203 , ::.
496
97101
-
11 094 176 +�
9 6,088,480
B 17,038,599
$ 103,285,456 $ 54,262,638
$ 2,372,041 $ 2,113,670
4,395,837
4,387,841
12,236
288,828
38,295,000
38,536,786
17,038,599
17,038,599
31.348,735
98,165,433 93,462,448 62,365,724
7,088,927 9.823.008 (8,103.086)
$ 105,254,360 $ 103,285,456 $ 54,262,638
$ 60,222,712 $ 12,049,426
(71,748,013) (9,315,345)
940,298 684,405
(940,298) (684,405)
(11,525,301)
18,614,228
$ 7,088,927
2,734,081
7,088,927
$ 9,823,008
$ 5,562,121
(1,954,532)
(3,444,984)
(18,087,015)
(1,684)
(17,926,094)
9,823,008
$ (8,103,086)
$ 17,795,119 $ 17,839,207 $ 17,839,207 $ 17,839,207
Long -term debt as of end of year $ 65,736,530 $ 68,179,095 $ 66,489,245 $ 62,867,692
SUCCESSOR AGENCY TO LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
LISTING OF ASSETS TRANSFERRED TO SUCCESSOR AGENCY
June 30, 2012
ASSETS
Cash and investments
Cash with fiscal agent (Bond Trustee)
Interest receivable
Due from other Redevelopment Agency Funds
Land held for resale
SUBTOTAL TOTAL ASSETS (MODIFIED ACCRUAL)
Capital assets
Deferred bond issue costs
TOTAL ASSETS
SCHEDULE4
Total
Assets
as of
'June -30r 2012
$_ >'19,894,876
-� 4,136,905
496
17,038,599
6,088,480
47,159,356
17,839,207
2,699.312
$ 67.697,875
SCHEDULE 5
SUCCESSOR AGENCY TO THE LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
OTHER LEGALLY RESTRICTED ASSETS
June 30, 2012
Enforceable Obligation/Other Legal
Payee Description Amount Requirement Supporting Retention
Diamond Stadium Capital fund balance at $ 598,223 Pursuant to Section 8.2 of the Agredmont, lhc�_kgeney is
k..
June 30, 2012 required to make annual cunmlative:depgsits into a
Stadium capital repair and imprpvemenCfj rid in the
aggregate amount of $300,OOO,1'Pper ffi1 year. Proceeds
of the deposits are to be for; @vital repairs,
replacements and ancements. This is the
amount accu ate ,._ug a 3Q, 2012. See
Exhibit 6. 'J
Civic Partners - Elsinore, DDA Obligation not on 393,310 This amount is p le under an amended and restated
LLC ROPS1 DDAaAf. oxabotDecember26,2002,the
Redevelopment Agency of the City of Lake Elsinore
(Ageuey) „entered into a Disposition and Development
F' Agreemegj with Laing -CP Lake Elsinore LLC (Laing)
and,CiA&Parttlers- llsinore LLC (Civic). The
7-'' ownership rights of this DDA were assigned to
Summerly LLC pursuant to an amended and restated
mss''
Disposition and Development Agreement dated March
_..
MG /Chelsea Outlet OPA Payable ”' 4 ? ^,fiO3 Pursuant to the OPA, the Agency is required to
pn reimburse the Participant the annual special assessment
^' levied by Northwest Sewer Assessment District 86 -1
which was formed to provide the sewer system to the
outlet center project. The bonds issued by Northwest
Sewer Assessment District 86-1 mature in the year
2015 and the annual special assessment is
approximately $109,513. As of June 30, 2012, the
Agency owes $1,526,603 under the OPA. See
Exhibit 8.
Riverside Cougiy Flood' Due W other governments 4,387,841 These amounts are tax increment pass through amounts
Control District set -aside under agreements dated June 27, 1989 and
;yy January 10, 1984 between the Riverside County Flood
Control and Water Conservation District, the City of
Lake Elsinore and the Redevelopment Agency of the
City of Lake Elsinore. The amounts were set -aside for
fiscal year 1995 -96 to fiscal year 2008 -09 and have not
been paid. Amounts of pass through after fiscal year
2008 -09 have been paid annually. See Exhibit 9.
$ 6,905.977
Payee
Civic Partners -
Elsinore, LLC
Union Bank, N.A.
Union Bank, N.A.
Union Bank, N.A.
Union Bank, N.A.
City of Lake Elsinore
City of Lake Elsinore
SCHEDULE 6a
SUCCESSOR AGENCY TO THE LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
CASH BALANCES FOR RETENTION TO MEET
ENFORCEABE OBLIGATIONS IN FISCAL YEAR 2012 -2013 ON RODS I
June 30, 2012
Enforceable Obligation/Other Legal
Description Amount Requirement Suplici njRetention
DDA Obligation $ 226,662 BOPS 1, Page 1, Lmej 2
Tax Allocation Revenue Bonds,
2010 Series A
Tax Allocation Revenue Bonds,
2010 Series C
Tax Allocation Revenue Bonds, 592,756 "`ROPS 1, Page 1, Line 4
2011 Series
Local Agency Revenue Bonds, "'257,636
2011 Series A
Diamond Stadium Annual Capital 300,000
Contribution
LERA - Debt service from 83,576
February 2012 to June 2012 ,
City of Lake Elsinore Housing Fund
City of Lake Elsinore City
February 2002!Io,Jdne 2012
White Nelson Annual audif`services for
Diehl Evans, LLP , fscal year 2011 -2012
5,512,653
153,938
ROPS 1, Page 1, Line 5
BOPS 1, Page 1, Line 16
RODS 1, Page 1, Line 17
ROPS 1, Page 2, Line 19
ROPS 1. Page 3, Line 1
9,000 ROPS 1, Page 1, Line 23
$ 9.236,277
SUCCESSOR AGENCY TO THE LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
CASH BALANCES FOR RETENTION TO MEET
ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012 -2013 ON ROPS 2
June 30, 2012
Payee Description Amount
Union Bank, N.A. Tax Allocation Revenue Bonds,
2010 Series A
Union Bank, N.A. Tau Allocation Revenue Bonds,
201 O Senes B
Union Bank, N.A. Tau Allocation Revenue Bonds,
2010 Series C
Union Bank, N.A. Tax Allocation Revenue Bonds,
2011 Series A
Union Bank, N.A. Local Agency Revenue Bonds,
2011 Series A
Union Bank, N.A. Fiscal Agent Fees
McMillin Summerly DDA pledges a portion
LLC and Civic Partners- revenues through 2038.
Elsinore LLC outstanding debt or obli
estimated based on pi.;qj
revenue groelh at, w
property valuesan'd,cgi
$ 651,865.63
SCHEDULE6b
Enforceable Obligation/Other Legal
Reouirement Suporntina Retention
Reported on ROP Line j-
c Vf?
749,725.00 Reported on ROPE 2, Line 2
�t J„
1,678,606 88 Re orjed on ROPS 2, Line 3
592,756.25teported on ROPS 2, Line 4
If
ravages grol,`y_wt a ]higher or lower rate
than 2%'er annum, the total obligation
will simdarl (increase or decrease.
DDA�plcdges a portion of tax increment
' f i so long as the Agency receives tax
Diamond $tad,ipm Group
y
Annual Capital Contribution
=y
V
City oe1 akc Elsinore
City reimbursement LERA - Debt Service
Leibold McClendon &
Legal services for projects, bonds &
Mann
DDA/Stadium Agreement Compliance
HdL Coren & Cone Tax Projections for bond & DDA
Compliance
TBD Bond disclosure compliance
City of Lake Elsinore City Staff Support/ Other admin
reimbursement 2012 -2013
Reported on ROPS 2, Line 5
Reported on RODS 2, Line 6
226,662.00 Reported on ROPS 2, Line 12
300,000.00 Reported on ROPS 2, Line 16
352,000.00 Reported on ROPS 2, Line 17
96,000.00 Reported on ROPS 2, Line 20
18,750.00 Reported on ROPS 2, Line 21
13,700.00 Reported on ROPS 2, Line 22
157,380.00 Reported on ROPS 2, Page 3, Line 3
$ 5,143.856.97
SCHFDULE7
SUCCESSOR AGENCY TO LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
LISTING OF NONLIQUID ASSETS
As of June 30, 2012
Basis for
Balance at
Asset Description
Determining Value
June 30, 2012
Due from other Redevelopment Agency Funds
Cost
'' $ 17:038,599
Land held for resale
Cost
"'?;:,, 6,088,480
Capital assets
Cost
'17,839,207
Deferred bond issue costs
Cost ,.
2,699,312
$ 43,665,598
SCHEDULES
SUCCESSOR AGENCY TO THE LAKE ELSINORE REDEVELOPMENT AGENCY
AGREED -UPON PROCEDURES RELATED TO ALL OTHER FUNDS
SUMMARY OF BALANCE AVAILABLE FOR ALLOCATION TO AFFECTED TAXING AGENCIES
As of June 30, 2012
Total amount of assets held by the Successor Agency as of June 30, 2012 - (Procedure 5)
$ 67,697,875
Less assets legally restricted for uses specified by debt covenants, grant restrictions,^
or restrictions imposed by other governments - (Procedure 6)-
(11,042,882)
Less assets that are not cash or cash equivalents (e.g., physical assets) - (Procedure 7)
= < (43,665,598)
4 ='
Less balances that are legally restricted for the funding of an enforceable obligation,
(net of projected annual revenues available to fund those obligations) - (Procedure
(9,236,277)
Less balances needed to satisfy ROPS for the 2012 -13 fiscal year - (Procedure 9)
(5,143,857)
Less the amount of payments made on July 12, 2012 to the County Auditor- Cogno ="- ,
as directed by the California Department of Finance
-
ti.`s
Add the amount of any assets transferred to the City for which an enfore' rte -"
obligation with a third party requiring such transfer and obligating^t e use of
the transferred assets did not exist - (Procedures 2 and 3)
-
Amount to be remitted to County for disbursement to pfi2.cicd !axing agencies
$ (1,390,739)
f