HomeMy WebLinkAboutItem No. 3AGENDA COVER SHEET
MEETING OF 6ri f 3
City Council F—] Redevelopment Agency a Other
DEPARTMENT: A A tM IY1
CONSENT:
APPEAL _
E-1 BUSINESS:
s
E RESOLUTION: � ORDINANCES � PUBLIC HEARING
ATTACHMENTS:
Report emailed to Clerk
.......................................... ...............................
FOLLOW UP DIRECTION:
............................... ............................... a..........
Submitted by:
Approved by:
Department Hi
Finance Direct
City Manager:
Date: 02 %ZOO
Date: /;7-
2C�fJ
Date:
Date:
C9
CITY OF ^
LADE L LSIIYORT
l ` DREAM EXTREME-
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES
CITY MANAGER
DATE: APRIL 9, 2013
SUBJECT: ANNUAL FINANCIAL REPORTS FOR THE FISCAL YEAR ENDING
JUNE 30, 2012
Recommendations
It is recommended that City Council receive and file these reports
Background
The City's auditors completed their audit field work on March 27, 2013 for the fiscal year
ending June 30, 2012. This is the eighth year that the auditors, White Nelson Diehl
Evans LLP have performed the audit services for the City. The audit reports include the
City and its component units as well as the Single Audit of Federally Assisted Grant
Programs. The Lake Elsinore Redevelopment Agency financial statements are for the
seven months ended January 31, 2012. The Agency was dissolved on February 1,
2012 in accordance with California law.
The following annual reports are being presented for the fiscal year ending June 30,
2012, with the exception of the Lake Elsinore Redevelopment Agency, which is for the
seven months ending January 31, 2012:
• City of Lake Elsinore Comprehensive Annual Financial Report (CAFR)
• Lake Elsinore Public Financing Authority Component Unit Financial Statements
• Lake Elsinore Recreation Authority Component Unit Financial Statements
• Lake Elsinore Redevelopment Agency Component Unit Financial Statements
• City of Lake Elsinore Single Audit of Federally Assisted Grant Programs
• Appropriations Limit Worksheet No. 6 with Independent Accountant's Report on
Agreed -upon Procedures Applied to Appropriations Limit Worksheets
AGENDA I "PEM NO. 3
Page 1 of 190
Annual Financial Reports
April 9, 2013
Page 2
• Audit Communication Letter
Report on Internal Controls (Management Letter)
The above reports are bound or included as separate letters and have been included
with this agenda separately.
Discussion
Comprehensive Annual Financial Report (CAFR)
The "Management's Discussion and Analysis" section on pages 3 to 14 of the
Comprehensive Annual Financial Report provides a narrative overview and analysis of
the financial activities of the all the entities and funds of the City of Lake Elsinore
combined for the fiscal year ended June 30, 2012.
Single Audit of Federally Assisted Grant Programs
The auditors performed a Single Audit in accordance with Government Auditing
Standards and OMB Circular A -133 related to internal control and compliance. Issues
noted and the related response of staff are included in the report.
Appropriations Limit Worksheet No. 6 With Independent Accountant's Report on
Agreed -upon Procedures Applied to Appropriations Limit Worksheet
The auditors performed agreed -upon procedures to ensure that the City's appropriation
limit calculations were correctly calculated and adopted in accordance with Article XIIIB
of the California Constitution and adopted by City Council. No exceptions were noted.
Audit Communication Letter
No significant exceptions were noted.
Report on Internal Controls (Management Letter)
During the audit, the auditors noted certain matters involving the internal control
structure and its operation that are typically communicated in a "management letter'.
Items noted and the related response of staff is included in the letter.
Fiscal Impact
There is no fiscal impact.
Prepared by: James R. Riley
Director of Admi i trative Services
Approved by: Grant Yates
City Manager
Page 2 of 190
Annual Financial Reports
April 9, 2013
Page 3
Attachments:
City of Lake Elsinore Comprehensive Annual Financial Report (CAFR)
Lake Elsinore Public Financing Authority Component Unit Financial Statements
Lake Elsinore Recreation Authority Component Unit Financial Statements
Lake Elsinore Redevelopment Agency Component Unit Financial Statements
City of Lake Elsinore Single Audit of Federally Assisted Grant Programs
Appropriations Limit Worksheet No. 6 with Independent Accountant's Report on Agreed -
upon Procedures Applied to Appropriations Limit Worksheets
Audit Communication Letter
Report on Internal Controls (Management Letter)
Page 3 of 190
LAKE ELSINORE PUBLIC
FINANCING AUTHORITY
COMPONENT UNIT
FINANCIAL STATEMENTS
WITH REPORT ON AUDIT
BYINDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
JUNE 30, 2012
Page 5 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
TABLE OF CONTENTS
June 30, 2012
Independent Auditors' Report
Basic Financial Statements:
Statement of Net Assets
Statement of Activities
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance
Sheet to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities
Notes to Basic Financial Statements
Supplementary Information:
Other Governmental Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Page
Number
1 -2
3
4
5
6 -7
9
10 - 11
12
13 -44
45
46-47
48-49
Page 7 of 190
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Lake Elsinore Public Financing Authority
Lake Elsinore, California
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the Lake Elsinore Public Financing Authority
(the Authority), (a component unit of the City of Lake Elsinore, California), as of and for the year
ended June 30, 2012, which collectively comprise the Authority's basic financial statements, as listed
in the table of contents. These financial statements are the responsibility of the Authority's
management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the basic financial statements are free of material misstatement. An audit includes
consideration of internal control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Authority's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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 opinions.
As described more fully in Note IA, the basic component unit financial statements present only the
Authority and are not intended to present fairly the financial position and results of operations of the
City of Lake Elsinore, California in conformity with accounting principles generally accepted in the
United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the Authority as of June 30, 2012, and the respective changes in
financial position thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
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2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offlas located in Omirge and San Dieu Counties Page 9 of 190
Management has not presented the management's discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. Our opinion on the basic financial statements is not affected by this missing
information.
Our audit was made for the purpose of forming opinions on the financial statements that collectively
comprise the Lake Elsinore Public Financing Authority's basic financial statements. The combining
schedules, identified as supplementary information in the table of contents, are presented for purposes
of additional analysis and are not a required part of the basic financial statements of the Authority.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
Irvine, California
March 27, 2013
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Page 10 of 190
BASIC FINANCIAL STATEMENTS
3-
Page 11 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
STATEMENT OF NET ASSETS
June 30, 2012
TOTAL ASSETS 133,556,271
LIABILITIES:
Interest payable 1,905,608
Noncurrent liabilities (Note 4):
Due within one year 5,320,000
Due in more than one year 115,032,362
TOTAL LIABILITIES 122,257,970
NET ASSETS:
Restricted for:
Debt service 11,298301
TOTAL NETASSETS $ 11,298,301
See independent auditors' report and notes to basic financial statements.
4-
Page 12 of 190
Governmental
Activities
ASSETS:
Cash and investments (Note 2)
$ 511,944
Interest receivable
1,167,899
Due from City ol'Lake Elsinore
3,105,784
Loans receivable from Successor Agency (Note 3)
58,580,000
Interest receivable from Successor Agency
811,968
Unamortized bond issuance costs
3,229,281
Restricted assets (Note 2):
Cash and investments with fiscal agents
66,149,395
TOTAL ASSETS 133,556,271
LIABILITIES:
Interest payable 1,905,608
Noncurrent liabilities (Note 4):
Due within one year 5,320,000
Due in more than one year 115,032,362
TOTAL LIABILITIES 122,257,970
NET ASSETS:
Restricted for:
Debt service 11,298301
TOTAL NETASSETS $ 11,298,301
See independent auditors' report and notes to basic financial statements.
4-
Page 12 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
STATEMENT OF ACTIVITIES
For the year ended June 30, 2012
Total governmental
activities $ 6372,471
General revenues:
Investment income
Other revenues
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
- 5 -
6,244,625
425,465
6,670,090
297,619
11,000,682
$ 11,298301
Page 13 of 190
Net (Expense)
Revenue and
Changesin
Program Revenues
Net Assets
Charges Operating Capital
for Grants and Grants and
Governmental
Functions /programs
Expenses
Services Contributions Contributions
Activities
Governmental activities:
General govemment
$ 168,296
$ - $ - $ -
$ (168,296)
Interest on long -term debt
6,204,175
- - -
(6,204,175)
Total governmental
activities $ 6372,471
General revenues:
Investment income
Other revenues
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
- 5 -
6,244,625
425,465
6,670,090
297,619
11,000,682
$ 11,298301
Page 13 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
BALANCE SHEET
GOVERNMENTALFUNDS
June 30, 2012
Loans receivable from Successor Agency (Note 3)
TOTAL ASSETS $ 31,496,865 $ 19,688,491
FUND BALANCES
FUND BALANCES:
Nonspendable:
Loans receivable from Successor Agency
Restricted for:
Debt service
TOTAL FUND BALANCES
See independent auditors' report and notes to basic financial statements.
-6-
31,496,865 19,688,491
$ 31,496,865 $ 19,688,491
Page 14 of 190
Debt Service Funds
2003
2008
Series H
Series A
Bonds
Bonds
ASSETS
Cash and investments (Note 2)
$ 497,945
$ 3,562
Cash and investments with fiscal agents (Note 2)
28,063,507
19,514,468
Interest receivable
286
-
Due from City of Lake Elsinore
2,935,127
170,461
Loans receivable from Successor Agency (Note 3)
TOTAL ASSETS $ 31,496,865 $ 19,688,491
FUND BALANCES
FUND BALANCES:
Nonspendable:
Loans receivable from Successor Agency
Restricted for:
Debt service
TOTAL FUND BALANCES
See independent auditors' report and notes to basic financial statements.
-6-
31,496,865 19,688,491
$ 31,496,865 $ 19,688,491
Page 14 of 190
Debt Service Funds (Continued)
2010 2010
Series A Series C
Rnn(I, Rnn.ie
Id din Ann 7R 75?G nnn
Other Total
Governmental Governmental
Funds Funds
$ 10,437 $ 511,944
18,571,420 66,149,395
4 290
196 3,105,784
15345,000 58,580,000
$ 14,450,000 $ 28,785,000 $ 33,927,057 $ 128,347,413
$ 14,450,000 $ 28,785,000 $ 15,345,000 $ 58,580,000
18,582,057 69,767,413
$ 14,450,000 $ 28,785,000 $ 33.927,057 $ 128,347,413
'rE
Page 15 of 190
THIS PAGE INTENTIONALLY LEFT BLANK
rz
Page 16 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2012
Fund balances for governmental funds $ 128,347,413
Amounts reported for governmental activities in the Statement of Net Assets are
different because:
Long -term assets are not available to pay for current period expenditures and,
therefore, are not reported in the fund financial statements
Interest receivable from Successor Agency
$ 811,968
Interest receivable on investments
1,167,609
Unamortized bond issuance costs
3,229,281
5,208,858
Long -term liabilities and related items are not due and payable in the current period
and are not reported as fund liabilities. Interest on long -term liabilities is not
accrued in governmental funds, but rather is recognized as an expenditure
when due. All liabilities, both current and long -term, are reported in the
Statement of Net Assets. Balances as of June 30, 2012 are:
Interest payable
(1,905,608)
Deferred amount on refunding
238,015
Bond premium
(175,377)
Long -term liabilities
(120,415,000)
(122,257,970)
Net assets of governmental activities
$ 11,298,301
See independent auditors' report and notes to basic financial statements.
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Page 17 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For the year ended June 30, 2012
REVENUES:
Investment income
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Professional services
Debt service:
Bond issuance costs
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Local agency bonds issued
Payment to refunding bond escrow agent
Bond discounts
Debt Service Funds
2003 2008
Series H Series A
Bonds Bonds
$ 1,948,732 $ 902,109
80,684 -
2,029,416 902,109
5,782 45
850,000 1,340,000
1,628,856 692,335
2,484,638 2,032,380
(455,222) (1330,271)
TOTAL. OTHER FINANCING SOURCES (USES) - -
CHANGES IN FUND BALANCES (455.222) (L130171)
FUND BALANCES - BEGINNING OF YEAR 31,952,087 20,818,762
FUND BALANCES - END OF YEAR $ 31,496,865 $ 19,688,491
See independent auditors' report and notes to basic financial statements.
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Page 18 of 190
Debt Service Funds (Continued)
2010 2010
Series A Series C
Bonds Bonds
Other Total
Governmental Governmental
Funds Funds
$ 686,781 $ 1,083,714 $ 1,706,692 $ 6,328,028
- - 344,781 425,465
686,781 1,083,714 2,051,473 6,753,493
162,469 168,296
-
-
238,290
238,290
305,000
650,000
800,000
3,945,000
686,781
1,083,714
1,762,131
5,853,817
991,781
1,733,714
2,962,890
10,205,403
(305,000)
(650,000)
(911,417)
(3,451,910)
-
-
2.692
2,692
-
-
(1692)
(2,692)
-
-
1,405,000
1,405,000
-
-
(11345,000)
(1,345,000)
-
-
(30,000)
(30,000)
-
-
30,000
30,000
(305,000)
(650,000)
(881,417)
(3,421,910)
14,755,000
29,435,000
34,808,474
131,769,323
$ 14,450,000
$ 28,785,000
$ 33,927,057
$ 128,347,413
Page 19 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2012
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are
different because:
The issuance of long term debt provides current financial resources to governmental
funds, while the repayment of the principal of long term -debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net assets. These amounts are the net effect of these differences
in the treatment of long -term debt.
Debt issued or incurred:
Refunding bonds issued
$ (1,405,000)
Payment to refunding bond escrow agent
1,345,000
Issuance costs
238,290
Principal payments
3,945,000
Governmental funds report bond issuance costs as an expense in the full amount
as current financial resources are used. However, in the Statement of Activities
the cost is amortized over the life of the debt.
Amortization bond issuance costs (194,724)
Amortization bond premium 21,922
Amortization of deferred amount on refunding (29,752)
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and are not reported as governmental fund
expenditures.
Interest and fiscal charges
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the governmental funds.
Investment income
Change in net assets of governmental activities
Sec independent auditors' report and notes to basic financial statements.
-12-
$ (3,421,910)
4,123,290
(202,554)
(117,804)
(83,403)
$ 297,619
Page 20 of 190
NOTES TO BASIC FINANCIAL STATEMENTS
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Page 21 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2012
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES:
A. Description of the Reporting Entity:
The Lake Elsinore Public Financing Authority (the Authority) is a joint exercise of powers
between the City of Lake Elsinore (the City) and the Lake Elsinore Redevelopment Agency
(the Agency), created by a joint powers agreement dated July 25, 1989. The Lake Elsinore
Redevelopment Agency was dissolved effective February 1, 2012, but the Authority continues
to function. The purpose of the Authority is to provide financing for public capital
improvements for the City and the former Redevelopment Agency, the acquisition by the
Authority of such public capital improvements and /or the purchase by the Authority of local
obligations within the meaning of the Bond Law under the Marks -Roos Bond Pool Act of 1985.
Under the Bond Law, the Authority has the power to issue special revenue bonds to pay the cost
of any public capital improvement.
The Authority office and records are located at City Hall at 130 South Main Street,
Lake Elsinore, California.
The Authority is a component unit of the City and, accordingly, the financial statements of the
Authority are included in the financial statements of the City. The Authority is an integral part
of the reporting entity of the City. The funds of the Authority have been blended within the
financial statements of the City because the City Council of the City is the governing board of
the Authority and exercises control over the operations of the Authority. Only the funds of the
Authority are included herein, therefore, these financial statements do no purport to represent
the financial position or results of operations of the City.
B. Basis of Presentation:
The accounting policies of the Authority conform to accounting principles generally accepted
in the United States of America as they are applicable to governmental units. The
Governmental Accounting Standard Board (GASB) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles.
Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the Statement of Net Assets and the Statement
of Activities) report information on all of the nonfiduciary activities of the primary government
(the Authority). Governmental activities, which normally are supported by investment income
and intergovernmental revenues, are reported separately from business -type activities, which
rely to a significant extent on fees and charges for support. All Authority activities are
governmental; no business -type activities are reported in the statements.
See independent auditors' report.
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Page 22 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
B. Basis of Presentation (Continued):
Government -Wide and Fund Financial Statements (Continued)
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are expenses that are
clearly identifiable with a specific program, project, function or segment. Program revenues of
the Authority include: 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment and
2) grants and contributions that are restricted to meeting the operational or capital requirements
of a particular function or segment.
Taxes and other items that are properly not included among program revenues are reported
instead as general revenues.
Separate fund financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements. All
remaining governmental funds are aggregated and reported as other governmental funds.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation:
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all assets and liabilities (whether current or noncurrent) associated with
their activity are included on their balance sheets. Operating statements present increases
(revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting,
revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the current financial
resources measurement focus, only current assets and current liabilities are generally included
on their balance sheets. The reported fund balance (net current assets) is considered to be a
measure of "available spendable resources ". Governmental fund operating statements present
increases (revenues and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said to present a summary of
sources and uses of "available spendable resources" during a period. Noncurrent portions of
long -term receivables due to governmental funds are reported on their balance sheets in spite of
their spending measurement focus. Noncurrent portions of other long -term receivables are
offset by reporting the fund balance as nonspendable.
See independent auditors' report.
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Page 23 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued):
Under the modified accrual basis of accounting, revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, except for principal and interest on general long -term
liabilities which are recognized as expenditures to the extent they have matured. Proceeds of
general long -term liabilities are reported as other financing sources.
Interest associated with the current fiscal period is considered to be susceptible to accrual and
so it has been recognized as revenues of the current fiscal period.
The Authority reports the following major governmental funds:
The following Debt Service Funds are used to account for the accumulation of resources for,
and the repayment of, long -term debt principal, interest and related costs:
2003 Series H Bonds
2008 Series A Bonds
2010 Series A Bonds
2010 Series C Bonds
As a general rule, the effect of interfund activity has been eliminated from the
government -wide financial statements. Direct expenses have not been eliminated from the
functional categories; indirect expenses and internal payments have been eliminated.
When both restricted and unrestricted resources are available for use, it is the Authority's policy
to use restricted resources first, and then unrestricted resources as they are needed.
D. Investments:
Investments are reported at fair value, except for the investment in local obligations, which are
reported at cost, because the investments are not transferable and the fair values are not affected
by changes in interest rates. Investment income includes interest earnings, changes in fair
value, and any gains or losses related to the liquidation or sale of the investment.
See independent auditors' report.
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Page 24 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
E. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement
of Net Assets:
The "total fund balances" of the Authority's governmental funds $128,347,413 differs from
"net assets" of governmental activities $11,298,301 reported in the Statement of Net Assets.
This difference primarily results from the long -term economic focus of the statement of net
assets versus the current financial resources focus of the governmental fund balance sheets.
Interest Receivable
Interest applicable to investments and loans receivable is not collected or earned in the current
period and accordingly is not reported as fund assets. All assets are reported in the Statement
of Net Assets.
Interest receivable from Successor Agency $ 811,968
Interest receivable on investments 1,167,609
$ 1.979.577
Bond Issuance Costs
Bond issuance costs are due and payable in the current period and accordingly reported as an
expenditure for the full amount when paid in the governmental funds. However, the Statement
of Net Assets reports an asset for the unamortized portion of these costs over the life of the
bond.
Unamortized bond issuance costs
Long -Term Liabilities
$ 3.229.281
Long -term liabilities and related items such as bond premiums, deferred amounts on refunding
and interest payable on these liabilities applicable to the Authority's governmental activities are
not due and payable in the current period and accordingly are not reported as fund liabilities.
All liabilities and related items (both Curent and long -term) are reported in the Statement of
Net Assets. Balances at the end of this fiscal year were:
Interest payable
Deferred amount on refunding
Bond premium
Long -term liabilities
Long-term liabilities
See independent auditors' report.
-17-
$ (1,905,608)
238,015
(175,377)
(120,415,000)
$ (122.257.970)
Page 25 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
F. Explanation of Differences between the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances and the Statement of Activities:
The "net change in fund balances" of the Authority's governmental funds $(3,421,910) differs
from the "change in net assets" for governmental activities $297,619 reported in the Statement
of Activities. The differences arise primarily from the long -term economic focus of the
Statement of Activities versus the current financial resources focus of the governmental funds.
The effect of the differences is illustrated below.
Long -Term Debt Transactions
Some revenues and expenses reported in the Statement of Revenues, Expenditures and Changes
in Fund Balances are included as an addition or deletion of long -term liabilities in the
Statement of Net Assets.
Refunding bonds issued
$ (1,405,000)
Payment to refunding bond escrow agent
1,345,000
Issuance costs
238,290
Long -term debt principal payments
3.945,000
Total Long -term debt transactions $4.123.290
Bond Issuance Costs
Bond issuance costs are reported in the Statement of Revenues, Expenditures and Changes in
Fund Balances in the full amount as current financial resources are used. However, in the
Statement of Activities the cost is amortized over the life of the bond.
Amortization of bond issuance costs
Bond Premium
$ (194.724)
Bond premiums are reported as revenues for the full amount when bonds are issued in the
governmental funds. However, the Statement of Activities reports an increase in expense for
the unamortized portion of these costs over the life of the bond.
Amortization of bond premium $ 21 922
See independent auditors' report.
lg�
Page 26 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
F. Explanation of Differences between the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances and the Statement of Activities (Continued):
Deferred Amount on Refunding
In the governmental funds, proceeds from refunding bonds and related payment to refund bond
escrow agent are reported in the full amount in the year of the refunding. For the Statement of
Activities any gain or loss is deferred and amortized over the shorter period over which
principal is to be paid on the refunded bonds or issued bonds.
Amortization
Interest on Long -Term Debt
(29.752)
Interest payable on long -term debt does not require the use of current financial resources and is
not reported as governmental fund expenditures. However, these expenses are reported in the
Statement of Activities.
Interest and fiscal charges
Interest on Loans and Investments
(117.804)
Interest on loans receivables from LERDA and investments are not collected or earned in the
current period and accordingly is not reported as governmental fund revenues. However, these
revenues are reported in the Statement of Activities.
Investment income
G. Fund Balance:
(83.403)
In the governmental fund financial statements, governmental fund types report nonspendable
and restricted fund balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific propose.
See independent auditors' report.
-19-
Page 27 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
H. Use of Estimates:
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenditures /expenses during the reporting period. Actual results could differ
from those estimates.
2. CASH AND INVESTMENTS:
Cash and Investments
Cash and investments at June 30, 2012 are classified in the accompanying financial statements as
follows:
Cash and investments at June 30, 2012 consisted of the following:
Deposits with financial institutions $ 185,428
Investments 66,475,911
Total Cash and Investments 66,661.339
See independent auditors' report.
-20-
Page 28 of 190
Government -
Wide
Statement of
Net Assets
Cash and investments
$ 511,944
Restricted assets:
Cash and investments with fiscal agents
66,149,395
Total Cash and Investments
66.661.339
Cash and investments at June 30, 2012 consisted of the following:
Deposits with financial institutions $ 185,428
Investments 66,475,911
Total Cash and Investments 66,661.339
See independent auditors' report.
-20-
Page 28 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
2. CASH AND INVESTMENTS (CONTINUED):
Investment Authorized by the California Government Code and the Authority's Investment
Policy
The table below identifies the investment types that are authorized for the Authority by the
California Government Code (or the Authority's investment policy, where more restrictive). The
table also identifies certain provisions of the California Government Code (or the Authority's
investment policy, where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk. This table does not address investments of debt proceeds held by bond
trustee that are governed by the provisions of debt agreements of the Authority, rather than the
general provisions of the California Government Code or the Authority's investment policy.
Authorized Investment Type
United States Treasury Obligations
United States Government Sponsored
Agency Securities
State and Local Agency Obligations
Banker's Acceptances
Insured or Collateralized Time
Certificate of Deposits
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium -Term Corporate Notes
Local Agency Investment Fund (LAIF)
California Asset Management Program (CAMP)
Money Market Fund
N /A- Not Applicable
Maximum
Maturity
5 years
5 years
5 years
180 days
Maximum
Percentage
of Portfolio*
None
None
None
40%
Maximum
Investment
in One Issuer
None
40%
None
10%
5 years
None
None
270 days
15%
10%
5 years
30%
None
30 days
None
None
92 days
10%
None
5 years
30%
None
N/A
None $
50,000,000
N/A
None
None
5 years
20%
None
* - Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
See independent auditors' report.
-21 -
Page 29 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
Authority's investment policy. Investments authorized for funds held by bond trustee include,
United States Treasury Obligations, United States Government Sponsored Agency Securities,
Guaranteed Investment Contracts, Commercial Paper, Local Agency Bonds, Banker's Acceptance
and Money Market Mutual Funds. There were no limitations on the maximum amount can be
invested in one issuer, maximum percentage allowed or the maximum maturity of an investment,
except for the maturity of Banker's Acceptance which are limited to one year.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the Authority manages its
exposure to interest rate risk is by pm-chasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
Information about the sensitivity of the fair values of the Authority's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the Authority's investments by maturity:
Investment Type
LAIF
Local Obligation Bonds
Money Market Mutual Funds
See independent auditors' report.
Remaining
Maturity (in Months)
1 -24
25-60
More Than
Months
Months
60 Months
Total
$ 326,518 $
-
$ -
$ 326,518
5,618,806
11,669,253
40,937,401
58,225,460
7,923,933
7,923.933
$I 869 257 R 11,669,253 S=40 937 401 X66.475.911
-22-
Page 30 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where
applicable) the California Government Code, the Authority's investment policy, or debt
agreements, and the actual rating, by Standard and Poor's, as of year end for each investment type:
Investment Type
LAIF
Local Obligation Bonds
Money Market Mutual Funds
N/A - Not Applicable
Concentration of Credit Risk
Minimum Total as of
Legal
June 30,
Rating
2011
N/A
$ 326,518
N/A
58,225,460
A
7,921933
AAA Unrated
$ - $ 326,51.8
- 58,225,460
7,923,933
$ 7.923,233 $19Z$
The investment policy of the Authority contains no limitations on the amount that can be invested
in any one issuer beyond that stipulated by the California Government Code. Investments in any
one issuer that represent 5% or more of total Authority's investments are as follows:
Community Facilities District
88 -3 Bonds, 2008 Series A
Subordinate
Community Facilities District
88 -3 Bonds, 2008 Series A
Community Facilities District
98 -1 Bonds
Community Facilities District
2003 -2, 2010 Series A
Lake Elsinore PEA (Summerly
Project) Bonds, 2011 Series A
See independent auditors' report.
Reported
Investment Type Amount
Local Agency Bond $ 6,325,000
Local Agency Bond 18,600,000
Local Agency Bond 17,440,000
Local Agency Bond 7,340,000
Local Agency Bond 4,610,000
-23-
Page 31 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
2. CASH AND INVESTMENTS (CONTINUED):
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker - dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The California Government Code and the
Authority's investment policy do not contain legal or policy requirements that would limit the
exposure to custodial credit risk for deposits or investments, other than the following provision for
deposits: The California Government Code requires that a financial institution secure deposits
made by state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental unit). The
market value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to secure
the Authority's deposits by pledging first trust deed mortgage notes having a value of 150% of the
secured public deposits. At June 30, 2012, the Authority's deposits (bank balances) were fully
insured by the Federal Deposit Insurance Corporation.
Investment in State Investment Pool
The Authority is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the Treasurer of
the State of California. The fair value of the Authority's investment in this pool is reported in the
accompanying financial statements at amounts based upon the Authority's pro -rata share of the fair
value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records maintained by
LAIF, which are recorded on an amortized cost basis.
See independent auditors' report.
-24-
Page 32 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
3. LOANS RECEIVABLE:
On June 29, 2011, the California Legislature passed Assembly Bill ABx 26 (Dissolution Act)
which dissolved Redevelopment Agencies (RDA's). A lawsuit was filed petitioning the Court to
overturn the Dissolution Act. On December 29, 2011, the California Supreme Court upheld the
Dissolution Act and dissolved Redevelopment Agencies as of February 1, 2012. On June 27, 2012,
the AB 1484 was passed by the California Legislature which made technical and substantive
amendments to the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each "Dissolved RDA ") was
dissolved, and the sponsoring community that formed the Dissolved RDA or a designated local
authority became the "Successor Agency" to the Dissolved RDA effective as of February 1, 2012.
Each Successor Agency is required to wind down the affairs of the Dissolved RDA. On
January 24, 2012, the City elected to serve as the Successor Agency of the Redevelopment Agency
of the City of Lake Elsinore.
The Dissolution Act also created oversight boards which monitor the activities of the successor
agencies. The roles of the successor agencies and oversight boards is to administer the wind down
of each Dissolved RDA, including making payments due on enforceable obligations, disposing of
the assets (other than housing assets) and remitting the unencumbered balances of the Dissolved
RDAs to the County Auditor- Controller for distribution to the affected taxing entities.
The Dissolution Act and AB 1484 also establish roles for the County Auditor - Controller, the
California Department of Finance (the "DOF ") and the California State Controller's office in the
dissolution process and the satisfaction of enforceable obligations of the Dissolved RDAs.
The County Auditor - Controller is charged with establishing a Redevelopment Property Tax Trust
Fund (the "RPTTF ") for each Successor Agency and depositing into the RPTTF for each six -month
period the amount of property taxes that would have been redevelopment property tax increment
had the Dissolved RDA not been dissolved. The deposit in the RPTTF fund is to be used to
distribute to the Successor Agency funds required to pay the amounts due on the Successor
Agency's enforceable obligations for the upcoming six -month period.
The Successor Agency is required to prepare a recognized obligation payment schedule ( "ROPS ")
approved by the oversight board setting forth the amounts due for each enforceable obligation
during each six month period covered by the ROPS (January through June and July through
December). The ROPS is submitted to the DOF for approval. Once approved by DOF, the County
Auditor - Controller will make disbursements to the Successor Agency from the RPTTF fund based
on the ROPS amount approved by the DOF.
See independent auditors' report.
-25 -
Page 33 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
3. LOANS RECEIVABLE (CONTINUED):
The Lake Elsinore Public Financing Authority ( "Authority ") entered into loan agreements with the
former Redevelopment Agency of the City of Lake Elsinore ( "Agency ") whereby the Authority
loaned the proceeds of the 2010 Series A, B and C Tax Allocation Revenue Bonds and the
2011 Series A 'Tax Allocation Bonds issued by the Authority to the Agency to retire debt and
provide funds for certain public improvements in Agency project areas. As a result of the
dissolution of the Agency, the obligation to pay the loans to the Authority was transferred to the
Successor Agency to the Redevelopment Agency of the City of Lake Elsinore ( "Successor
Agency "). The principal and interest are payable in installment payments payable not less than
three days prior to the due date on the related bonds payable. These loans are recorded as a
receivable in the Authority's Debt Service Fund on the Governmental Fund Balance Sheet. For the
Government -Wide financial statements, the loan receivable is eliminated.
The following table represents the balance of net proceeds loaned to the Successor Agency at
June 30, 2012:
Total $ 58.580.000
The loans have not been challenged as enforceable obligations of the Successor Agency by the
California Department of Finance. The Authority expects repayment of these loans from property
tax revenues allocated to the Successor Agency. See Note 20 for additional information related to
the dissolution of the former Redevelopment Agency.
See independent auditors' report.
-26-
Page 34 of 190
Loans
Tax Allocation
Receivable
Revenue Bonds
Balance
2010 Series A Issue
$ 14,450,000
2010 Series B Issue
9,795,000
2010 Series C Issue
28,785,000
2011 Series A Issue
5,550,000
Total $ 58.580.000
The loans have not been challenged as enforceable obligations of the Successor Agency by the
California Department of Finance. The Authority expects repayment of these loans from property
tax revenues allocated to the Successor Agency. See Note 20 for additional information related to
the dissolution of the former Redevelopment Agency.
See independent auditors' report.
-26-
Page 34 of 190
LAKE ELSINORE_ PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES:
See independent auditors' report.
-27-
Page 35 of 190
Date of
Years of
Rate of
Amount
Issue
Maturity
Interest
Authorized
Local Agency
Revenue Bonds:
1996 . Series E
3/96
1997 -2026
5.25% -7.50%
$ 1,750,000
1999 Series G
2/99
2000 -2015
5.00% -5.80%
4,035,000
2003 Series H
2/03
2003 -2033
2.75 % - 6.375%
31,570,000
2008 Series A
1/08
2008 -2020
3.5% -4.30%
22,295,000
2008 Series B
3/08
2008 -2038
4.5 %- 6.875%
3,265,000
2010 Series A
11 /10
2013 -2040
3.25% -6.25%
7,430,000
2011 Series A
6/11
2012 -2038
3.00 % - 6.125%
5,365,000
2011. Series
11/11
2012 -2026
1.75% -5.50%
1,405,000
Tax Allocation
Revenue Bonds:
2010 Series A
2/10
2010 -2033
2.00 % - 5.25%
15,435,000
2010 Series B
5110
2010 -2025
2.00 % - 4.75%
10,855,000
2010 Series C
10 /10
2011 -2030
2.00 % - 5.00%
29,435,000
2011 Series
1 /11
2012 -2021
4.00 % -6.00%
5,550,000
See independent auditors' report.
-27-
Page 35 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES:
The following is a summary of long -tern liability transactions for the year ended June 30, 2012:
$ 124.229 532 $ 1.405.000 �(.;i,2$2. 174) $ 120 352 362 $ 5.320.000
See independent auditors' report.
-28-
Page 36 of 190
Outstanding
Outstanding
Due
June 30,
June 30,
Within
2011 Additions
Retirements
2012
One Year
Local Agency
Revenue Bonds:
1996 Series E
$ 1,345,000 $ -
$ (1,345,000) $
-
$ -
1999 Series G
1,440,000 -
(255,000)
1,185,000
275,000
2003 Series 14
27,290,000 -
(850,000)
26,440,000
940,000
2008 Series A
18,085,000 -
(1,340,000)
16,745,000
1,425,000
2008 Series B
3,265,000 -
-
3,265,000
5,000
2010 Series A
7,430,000 -
-
7,430,000
-
2011 Series A
5,365,000 -
-
5,365,000
135,000
2011 Series B
- 1,405,000
-
1,405,000
85,000
Tax Allocation
Revenue Bonds:
2010 Series A
14,755,000 -
(305,000)
14,450,000
310,000
2010 Series B
10,340,000 -
(545,000)
9,795,000
560,000
2010 Series C
29,435,000 -
(650,000)
28,785,000
1,140,000
2011 Series A
5,550,000
5,550,000
445,000
124,300,000 1,405,000
(5,290,000)
120,415,000
5,320,000
Add (less) deferred amounts:
Bond premium
197,299 -
(21,922)
175,377
-
On refunding
(267,767) -
29,752
(238,015)
-
$ 124.229 532 $ 1.405.000 �(.;i,2$2. 174) $ 120 352 362 $ 5.320.000
See independent auditors' report.
-28-
Page 36 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds:
In February 1990, the Authority was authorized to issue $500,000,000 in revenue bonds for the
purpose of enabling the Authority to acquire certain qualified obligations (the Local
Obligations) of the City or the Agency for whose benefit the program has been designed, or of
any other local agencies in the State of California (the Local Agencies). The Bonds were issued
to provide funds to finance the acquisition or construction of land, buildings, equipment and
other capital improvements. The Bonds will constitute special obligations of the Authority and
will be issued in Series from time to time pursuant to Supplemental Indentures. These bonds
will be payable solely from the repayment by Local Agencies of their obligations and any
available surplus revenues.
1996 Series E
In March 1996, $1,750,000 principal amount of 1996 Local Agency Revenue Bonds, Series E,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $15,000 to $135,000 from October 1, 1997 through October 1, 2026; interest at
5.25% to 7.50 %. The bonds maturing on or before October 1, 2005, are not subject to optional
redemption prior to maturity. The bonds maturing on or after October 1, 2006 are subject to
redemption under certain circumstances, at the option of the Authority, from funds deposited in
the Series E redemption account on or after October 1, 2005, at a specified redemption price
together with accrued interest. The Series E Bonds are also subject to special mandatory
redemption on various specified dates at specified redemption prices under certain
circumstances, as provided in the Bond Indenture Agreement. The 1996 Series E 1996 Local
Agency Revenue Bonds were refunded by the 2011 Series B Local Agency Revenue Bonds in
October 2011.
See independent auditors' report.
-29-
Page 37 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
1999 Series G
In February 1999, $4,035,000 principal amount of 1999 Local Agency Revenue Bonds,
Series G, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $165,000 to $370,000 from September 2, 2000 through
September 2, 2015; interest at 5.00% to 5.80 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 2, 2008 at specified redemption prices. At
June 30, 2012, the Authority has a cash reserve balance for debt service of $118,516, which is
sufficient to cover the Bond Indenture Reserve Requirement of $118,500.
Future debt requirements for the 1999 Series G Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
Totals
See independent auditors' report.
Principal
$ 275,000
285,000
305,000
320,000
Interest
$ 60,755
44,515
27,405
9,280
$ 1.185,000 $ 141.955
-30-
Total
$ 335,755
329,515
332,405
329,280
$ 1.326.955
Page 38 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2003 Series H
In February 2003, $31,570,000 principal amount of 2003 Local Agency Revenue Bonds,
Series H, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $375,000 to $1,850,000 from October 1, 2003 through October 1, 2033;
interest at 2.75% to 6.375 %. The bonds are subject to mandatory redemption, without premium,
prior to their maturity dates commencing October 1, 2014 in the case of bonds maturing
October 1, 2015, October 1, 2016 in the case of bonds maturing October 1, 2020,
October 1, 2021 in the case of bonds maturing October 1, 2026, and October 1, 2027 in the case
of bonds maturing October 1, 2033, from Sinking Account payments under the Indentures. The
bonds are subject to optional redemption prior to maturity in a manner determined by the
Authority on October 1, 2013, and on any date thereafter at a redemption price equal to the
principal amount thereof, plus accrued interest to the date of redemption, plus a specified
premium. At June 30, 2012, the Authority has a cash reserve balance for debt service of
$2,636,785, which is sufficient to cover the Bond Indenture Reserve Requirement of
$2,636,508.
Future debt requirements for the 2003 Series H Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2034
Totals
See independent auditors' report.
Principal Interest
$ 940,000
1,055,000
1,160,000
1,280,000
1,165,000
6,660,000
4,055,000
6,580,000
3,545,000
$ 26.440.000
-31 -
$ 1,583,519
1,531,737
1,472,144
1,405,044
1,334,894
5,431,900
3,915,000
2,253,563
230,934
19.158.735
Total
$ 2,523,519
2,586,737
2,632,144
2,685,044
2,499,894
12,091,900
7,970,000
8,833,563
3,775,934
&___45 .598.735
Page 39 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2008 Series A
In January 2008, $22,295,000 principal amount of 2008 Local Agency Revenue Bonds,
Series A, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $940,000 to $2,520,000 from September 1, 2008 through
September 1, 2020; interest at 3.5% to 4.3 %. The bonds were issued to refund the
1997 Series F. Local Agency Revenue Bonds. The advance refunding resulted in an economic
gain of $3,145,273 and a decrease in cash flows of $4,693,375. The proceeds from the 2008
Series A Bonds were used to fully redeem the 1997 Series F Bonds. The bonds are subject to
call and redemption prior to their stated maturity commencing September 1, 2008 at specified
redemption prices. At June 30, 2012, the Authority has a cash reserve balance for debt service
of $1,114,940, which is sufficient to cover the Bond Indenture Reserve Requirement of
$1,1 14,750.
Future debt requirements for the 2008 Series A Local Agency Revenue Bonds are as follows:
Year Ending
June 30
2013
2014
2015
2016
2017
2018 -2021
Totals
See independent auditors' report.
Principal Interest
$ 1,425,000
1,515,000
1,620,000
1,720,000
1,830,000
8,635,000
$ 643,948
588,710
526,010
459,210
388,210
731,215
$ 16.745.000 � 3.337.303
-32-
Total
$ 2,068,948
2,103,710
2,146,010
2,179,210
2,218,210
9,366,215
20.082,303
Page 40 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2008 Series B
In March 2008, $3,265,000 principal amount of 2008 Local Agency Revenue Bonds, Series B,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $5,000 to $285,000 from September 1, 2008 through September 1, 2038;
interest at 4.5% to 6.875 %. The bonds are subject to call and redemption prior to their stated
maturity commencing September 1, 2008 at specified redemption prices. At June 30, 2012, the
Authority has a cash reserve balance for debt service of $308,896, which is sufficient to cover
the Bond Indenture Reserve Requirement of $308,844.
Future debt requirements for the 2008 Series B Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2037
2038-2039
Totals
See independent auditors' report.
Principal Interest
$ 5,000
10,000
15,000
20,000
30,000
245,000
490,000
795,000
1,100,000
555,000
$ 3.265.000
-33-
$ 220,374
220,024
219,430
218,573
217,308
1,052,947
935,000
712,766
390,156
38,672
4.225,250
Total
$ 225,374
230,024
234,430
238,573
247,308
1,297,947
1,425,000
1,507,766
1,490,156
593,672
$ 7.490.250
Page 41 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2010 Series A
In November 2010, $7,430,000 principal amount of 2010 Local Agency Revenue Bonds,
Series A, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $10,000 to $735,000 from September 1, 2013 through
September 1, 2040; interest at 3.25% to 6.25 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 2013 at specified redemption prices. At
June 30, 2012, the Authority has a cash reserve balance for debt service of $743,126, which is
sufficient to cover the Bond Indenture Reserve Requirement of $743,000.
Future debt requirements for the 2010 Series A Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2037
2038-2041
Totals
See independent auditors' report.
Principal Interest
10,000
20,000
25,000
40,000
380,000
780,000
1,365,000
2,210,000
2,600,000
$ 7.430.000
-34-
$ 447,138
446,975
446,463
445,644
444,375
2,180,450
2,032,522
1,727,491
1,182,813
342,188
$ 9.696,059
Total
$ 447,138
456,975
466,463
470,644
484,375
2,560,450
2,812,522
3,092,491
3,392,813
2,942,188
17.126.059
Page 42 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2011 Series A
In June 2011, $5,365,000 principal amount of 2011 Local Agency Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $135,000 to $370,000 from September 1, 2012 through September 1, 2038;
interest at 3.0% to 6.125 %. The bonds are subject to call and redemption on and after their
stated maturity commencing September 1, 2016 at redemption price equal to principal amount.
At June 30, 2012, the Authority has a cash reserve balance for debt service of $427,588, which
is sufficient to cover the Bond Indenture Reserve Requirement of $427,175.
Future debt requirements for the 2011 Series A Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2037
2038-2039
Totals
See independent auditors' report.
Principal Interest Total
$ 135,000
140,000
145,000
145,000
155,000
865,000
1,100,000
1,470,000
995,000
215,000
5.365.000
-35-
$ 285,925
281,800
277,525
273,175
268,288
1,234,969
972,663
596,463
169,209
13,322
4.373.339
$ 420,925
421,800
422,525
418,175
423,288
2,099,969
2,072,663
2,066,463
1,164,209
228,322
9.738.339
Page 43 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATLMENTS
( CONTINUED)
June 30, 2012
4. LONG- TERMLIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2011 Series B
In October 2011, $1,405,000 principal amount of 2011 Local Agency Revenue Bonds, Series B,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $75,000 to $120,000 from October 1, 2012 through October 1, 2026; interest at
1.75% to 5.5 %. The bonds are subject to call and redemption on and after their stated maturity
commencing October 1, 2022 at redemption price equal to principal amount. At June 30, 2012,
the Authority has a cash reserve balance for debt service of $139,113, which is sufficient to
cover the Bond Indenture Reserve Requirement of $139,111
Future debt requirements for the 2011 Series A Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
Totals
See independent auditors' report.
Principal Interest Total
$ 85,000
75,000
80,000
75,000
80,000
460,000
550,000
$ 61,594
59,912
57,875
55,556
52,838
207,031
76,738
$ 146,594
134,912
137,875
130,556
132,838
667,031
626,738
$1 405 000 $ 571.544 �1 976 544
-36-
Page 44 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG-TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds:
2010 Series A
In February 2010, $15,435,000 principal amount of Tax Allocation Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The term bonds are due in
annual installments of $305,000 to $2,910,000 from September 1, 2010 through
September 1, 2033; interest at 2.00% to 5.25 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 2024, at specified redemption prices.
At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of
$1,472,165, which is sufficient to cover the Bond Indenture Reserve Requirement of
$1,459,146.
Future debt requirements for the 2010 Series A Tax Allocation Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033
Totals
See independent auditors' report.
Principal
$ 310,000
315,000
325,000
330,000
345,000
1,895,000
2,330,000
5,230,000
3,370,000
$ 14.450.000
-37-
Interest
$ 679,081
669,707
660,106
651,106
641,806
3,019,578
2,566,963
1,823,063
177,713
$ 10,889.123
Total
$ 989,081
984,707
985,106
981,106
986,806
4,914,578
4,896,963
7,053,063
3,547,713
$ 25.339.123
Page 45 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds (Continued):
2010 Series B
In May 2010, $10,855,000 principal amount of Tax Allocation Revenue Bonds, Series B, was
issued in accordance with the indenture described above. The term bonds are due in annual
installments of $515,000 to $895,000 from September 1, 2010 through September 1, 2025;
interest at 2.00% to 4.75 %. The bonds are subject to call and redemption prior to their stated
maturity commencing September 1, 2019, at specified redemption prices. At June 30, 2012, the
Successor Agency has a cash reserve balance for debt service of $939,698, which is sufficient
to cover the Bond Indenture Reserve Requirement of $939,537.
Future debt requirements for the 2010 Series B Tax Allocation Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
Totals
See independent auditors' report.
Principal
$ 560,000
575,000
590,000
610,000
630,000
3,475,000
3,355,000
-38-
Interest
$ 371,050
354,025
336,550
318,550
299,950
1,141,388
320,175
Total
$ 931,050
929,025
926,550
928,550
929,950
4,616,388
3,675,175
$ 9.795,000
&____3 .141.688 $ 12.936.688
Page 46 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds (Continued):
2010 Series C
In October 2010, $29,435,000 principal amount of Tax Allocation Revenue Bonds, Series C,
was issued in accordance with the indenture described above. The term bonds are due in
annual installments of $650,000 to $2,115,000 from September 1, 2011 through
September 1, 2030; interest at 2.00% to 5.00 %. The bonds are subject to call and redemption
on or after their stated maturity commencing September 1, 2020, at redemption price equal to
principal amount. At June 30, 2012, the Successor Agency has a cash reserve balance for debt
service of $2,223,773, which is sufficient to cover the Bond Indenture Reserve Requirement of
$2,222,395.
Future debt requirements for the 2010 Series C Tax Allocation Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
Totals
See independent auditors' report.
Principal
$ 1,140,000
1,165,000
1,190,000
1,215,000
1,240,000
6,770,000
8,150,000
7,915,000
Interest
$ 1,065,814
1,042,764
1,019,214
994,404
965,995
4,219,084
2,768,211
779,206
$ 28,785 000 $ 12.854.692
39-
Total
$ 2,205,814
2,207,764
2,209,214
2,209,404
2,205,995
10,989,084
10,918,211
8,694,206
$__ 41.639.692
Page 47 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
4. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds (Continued):
2011 Series A
In January 2011, $5,550,000 principal amount of Tax Allocation Revenue Bonds, Series A, was
issued in accordance with the indenture described above. The term bonds are due in annual
installments of $445,000 to $700,000 from September I, 2012 through September 1, 2021;
interest at 4.00% to 6.00 %. The bonds are subject to call and redemption on and after their
stated maturity commencing September 1, 2016, at redemption price equal to principal amount.
At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of
$539,714, which is sufficient to cover the Bond Indenture Reserve Requirement of $539,623.
Future debt requirements for the 2011 Series A Tax Allocation Revenue Bonds are as follows:
Year Ending
June 30,
2013
2014
2015
2016
2017
2018-2022
Totals
See independent auditors' report.
Principal
$ 445,000
465,000
485,000
505,000
530,000
3,120,000
Interest
$ 286,613
267,250
246,481
223,550
197,675
488,513
Total
$ 731,613
732,250
731,481
728,550
727,675
3,608,513
5.550.000 $ 1.710.082 .
7 260.082
-40-
Page 48 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
5. LIABILITY, PROPERTY AND PROTECTION:
A. Description Self- Insurance Pool Pursuant to Joint Powers Agreement:
To account for risks of loss and liability claims, the Authority participates in the City's liability,
property and protection policy. The City is a member of the California Joint Powers Insurance
Authority (Insurance Authority). The Insurance Authority is composed of 123 California public
entities and is organized under a joint powers agreement pursuant to California Government
Code §6500 et seq. The purpose of the Insurance Authority is to arrange and administer
programs for the pooling of self - insured losses, to purchase excess insurance or reinsurance,
and to arrange for group purchased insurance for property and other lines of coverage. The
Insurance Authority's pool began covering claims of its members in 1978. Each member
government has an elected official as its representative on the Board of Directors. The Board
operates through a 9- member Executive Committee.
B. Self- insurance Programs of the Insurance Authority:
Each member pays an annual contribution (formerly called the primary deposit) to cover
estimated tosses for the coverage period. This initial funding is paid at the beginning of the
coverage period. After the close of the coverage period, outstanding claims are valued. A
retrospective deposit computation is then conducted annually thereafter until all claims incurred
during the coverage period are closed on a pool -wide basis. This subsequent cost re- allocation
among members based on actual claim development can result in adjustments of either refunds
or additional deposits required.
The total funding requirement for self - insurance programs is estimated using actuarial models
and pre - funded through the annual contribution. Costs are allocated to individual agencies
based on exposure (payroll) and experience (claims) relative to other members of the
risk - sharing pool. Additional information regarding the cost allocation methodology is
provided below.
See independent auditors' report.
M
Page 49 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
LIABILITY, PROPERTY AND PROTECTION (CONTINUED):
B. Self- Insurance Programs of the Insurance Authority (Continued):
General Liability Insurance - In the liability program claims are pooled separately between
police and non - police exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the formula.
(2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is
evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The
second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence
and is evaluated as a percentage of the pool's total incurred costs within the second layer.
(4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million
are distributed based on the outcome of cost allocation within the first and second loss layers.
(5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance
contract subject to a $2.5 million annual aggregate deductible. Costs of covered claims from
$10 million to $15 million are paid under two reinsurance contracts subject to a combined
$3 million annual aggregate deductible. On a cumulative basis for all 2011 -12 reinsurance
contracts the annual aggregate deductible is $5.5 million. (6) Costs of covered claims from
$15 million up to $50 million are covered through excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million per
occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with
a pooled sub -limit of $35 million per occurrence. This $35 million subsidence sub -limit is
composed of (a) $5 million retained within the pool's SIR, (b) $10 million in reinsurance and
(c) $20 million in excess insurance. The excess insurance layer has a $20 million annual
aggregate.
Workers' Compensation - In the workers' compensation program claims are pooled separately
between public safety (police and fire) and non - public safety exposures. (1) The payroll of
each member is evaluated relative to the payroll of other members. A variable credibility factor
is determined for each member, which establishes the weight applied to payroll and the weight
applied to losses within the formula. (2) The first layer of losses includes incurred costs up to
$50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to
$100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance
attachment point of $2 million are distributed based on the outcome of cost allocation within
the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory
limits are paid under a reinsurance policy. Protection is provided per statutory liability under
California Workers' Compensation Law.
See independent auditors' report.
-42-
Page 50 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
5. LIABILITY, PROPERTY AND PROTECTION (CONTINUED):
B. Self - Insurance Programs of the Insurance Authority (Continued):
Workers' Compensation (Continued)
Employer's Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability
losses from $5 million to $10 million are pooled among members.
C. Purchased Insurance:
Property Insurance - The City participates in the all -risk property protection program of the
Insurance Authority. This insurance protection is underwritten by several insurance companies.
The City's property is currently insured according to a schedule of covered property submitted
by the City to the Insurance Authority. The City's property currently has all -risk property
insurance protection in the amount of $37,073,451. There is a $5,000 deductible per
occurrence except for non - emergency vehicle insurance which has a $1,000 deductible.
Premiums for the coverage are paid annually and are not subject to retroactive adjustments.
Crime Insurance - The City purchases crime insurance coverage in the amount of $1,000,000
with a $2,500 deductible. The fidelity coverage is provided through the Insurance Authority.
Premiums are paid annually and are not subject to retroactive adjustments.
D. Adequacy of Protection:
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no
significant reductions in pooled or insured liability coverage in 2011 -2012.
6. CONTINGENCIES:
As of June 30, 2012, in the opinion of the Authority's management, there are no outstanding
matters which would have a significant effect on the financial condition of the funds of the
Authority.
See independent auditors' report.
-43-
Page 51 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2012
7. SUBSEQUENT EVENTS:
Events occurring after June 30, 2012, have been evaluated for possible adjustment to the financial
statements or disclosure as of March 27, 2013, which is the date the financial statements were
available to be issued.
In December 2012, the Lake Elsinore Public Financing Authority issued $5,345,000 Local Agency
Revenue Bonds to acquire local obligations to acquire the City of Lake Elsinore Community
Facilities District No. 2003 -02 (Canyon Hills) Special Tax Bonds, 2012 Series to be issued by the
City of Lake Elsinore Community Facilities District No. 2003 -2 for the benefit of Improvement
Area C. The bonds bear interest at 2.0% to 4.75% with bonds maturing annually on September 1
annually through 2042.
In November 2012, the Lake Elsinore Public Financing Authority issued $15,435,000 Local
Agency Revenue Bonds to acquire local obligations to acquire the City of Lake Elsinore
Assessment District 93 -1 (Assessment District 93 -1) Limited Obligation Refunding Improvement
Bonds, 2012 Series A issued by the Assessment District 93 -1 to refund the 2000 Assessment
District 93- 113onds outstanding in the amount of $16,650,000.. The bonds bear interest at 2.0%
to 5.125% with bonds maturing annually on September 1 annually through 2030.
In July 2012, the Lake Elsinore Public Financing Authority issued $3,450,000 Local Agency
Revenue Bonds to acquire the City of Lake Elsinore Community Facilities District (Villages at
Wasson Canyon) 2005 -5 (CFD 2005 -5) Special Tax Bonds, 2012 Series A issued by the
CFD 2005 -5 to redeem the CFD 2005 -5 2008 Series B Bonds outstanding in the amount of
$3,265,000. The bonds bear interest at 1.5% to 5.25% with bonds maturing annually on
September 1 annually through 2038.
See independent auditors' report.
Page 52 of 190
SUPPLEMENTARY INFORMATION
-45-
Page 53 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2012
ASSETS
Cash and investments
Cash and investments with fiscal agents
Interest receivable
Due tiom City ofLake Elsinore
Loans receivable ti om Successor Agency
TOTAL ASSETS
FUND BALANCES
FUND BALANCES:
Nonspendable:
Loans receivable ti-om Successor Agency
Restricted for:
Debt service
TOTAL FUND BALANCES
See independent auditors' report.
Debt Service Funds
1995 1996 1997 1999
Series A Series E Series F Series C
Bonds Bonds Bonds Bonds
$ 4,128 $ - $ 19 $ 3,598
2 2
$ 4,130 $ - $ 19 $ 3,600
4,130 - 19 3,600
$ 4,130 $ - $ 19 $ 3,600
-46-
Page 54 of 190
ued)
Debt Service Funds
1999 2008
2010 2010
Series G Series B
Series B Series A
Bonds Bonds
Bonds Bonds
ued)
Total
2011
2011 2011 Other
Series A
Series A Series B Governmental
Bonds
Bonds Bonds Funds
$ - $ - $ - $ - $ - $ - $ 2,692 $ 10,437
1,896,725 3,138,684 - 7,237,790 - 5,065,117 1,233,104 18,571,420
4
196 - - - - - 196
- - 9,795,000 - 5,550,000 - - 15,345,000
1,896,725 $ 3,138,880 $ 9,795,000 $ 7,237,790 $ 5,550,000 $ 5,065,117 $ 1,235,796 $ 33,927,057
$ - $ - $ 9,795,000 $ - $ 5,550,000 $ - $ - $ 15,345,000
1,896.725
3,138,880
- 7,237,790
- 5,065,117
1,235,796
18582,057
$ 1,896,725
$ 3,138,880
$ 9,795,000 $ 7,237,790
$ 5,550,000 $ 5,065,117
$ 1,235,796
$ 33,927,057
47-
Page 55 of 190
LAKE ELSINORE PUBLIC FINANCING AUTHORITY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2012
REVENUES:
Investment income
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Professional services
Debt service:
Bond issuance costs
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Local agency bonds issued
Payment to refunding bond escrow agent
Bond discounts
TOTAL OTHER FINANCING
SOURCES (USES)
CHANGES IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Debt Service Funds
1995 1996
Series A Series E
Bonds Bonds
$ 10 $ 93,128
10 93,128
1997 1999
Series F Series C
Bonds Bonds
$ $ 9
9
109,376
- 109,376
10 (16,248) 9
(2,692)
(1,345,000)
(1,347,692) - -
10 (1,363,940) 9
4,120 1,363,940 19 3,591
$ 4,130 $ $ 19 $ 3,600
24
2 - 6 - 156,566
Debt Service Funds (Continued)
162,469
-
Total
1999
2008
2010
2010
2011
2011
2011
Other
Series G
Series B
Series B
Series A
Series A
Series A
Series B
Governmental
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Funds
$ 93,425
$ 239,157
$ 384,900
$ 261,195
$ 323,422
$ 299,963
$ 11,483
$ 1,706,692
56,133
45,049
-
223,312
-
-
20,287
344,781
149,558
284,206
384,900
484,507
323,422
299,963
31,770
2,051,473
24
2 - 6 - 156,566
5,871
162,469
-
- - - 90,018
148,272
238,290
255,000
- 545,000 - - -
-
800,000
76,125
220,486 384,900 446,987 323,422 181,312
19,523
1,762,131
331,149
220,488 929,900 446,993 323,422 427,896
173,666
2,962,890
(181,591) 63,718 (545,000) 37,514 (127,933) (141,896) (911,417)
- - 2,692 2,692
- (2,692)
1,405,000 1,405,000
(1,345,000)
(30,000) (30,000)
- - 1,377,692 30,000
(181,591) 63,718 (545,000) 37,514 - (127,933) 1,235,796 (881,417)
2,078,316 3,075,162 10,340,000 7,200,276 5,550,000 5,193,050 - 34,808,474
$ 1,896,725 $ 3,138,880 $ 9,795,000 $ 7,237,790 $ 5,550,000 $ 5,065,117 $ 1,235,796 $ 33,927,057
See independent auditors' report. y
-48- -49-