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HomeMy WebLinkAboutRDA Packet 1997/03/25 Notice is hereby given that the Chair of the Redevelopment Agency has called and will convene a special joint meeting of the Redevelopment Agency/Council, Tnesday, March 25,1997 at 6:00 p.m., immediately following the regular City Council meeting, in Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following: '" doc!cre <,n'er pendty of pcr;!lry that I am ~~ em'lo e1 OJ t:le City 0; ('°"'0 "," in the Coc:....'t![>ú'!"!o~r::". end that I posted tho "i.on.L,!;io',,;:, on at the -- trley Horton, Chair Fu:ic,ervca"~wlr..,,; . .:,-,1101 DATE;~SIG:'E.DÌ'Î:¡~"Ul ~~1 .. Tuesday, March 25, 1997 I Council Chambers 6:00 p.m. Public Services Building (immediately following the City Council meeting) Special Joint Meeting of the Redevelooment Agencv/Council of the Citv of Chula Vista CALL TO ORDER I. ROLL CALL: Agency/Council Members Moot -' Padilla_, Rindone -' Salas -' and Chair/Mayor Horton - CONSENT CALENDAR ( Items 2 through 3 ) (Will be voted on immediately following the Council Consent Calendar during the City Council meering) The staff recommendations regarding the following item listed under the Consent Calendar will be enacted by the Agency/Council by one motion without discussion unless an Agency/Council member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 2. APPROVAL OF MINUTES: March 11, 1997 (Special Joint Meeting); March 18, 1997 (Regular Meeting) 3. REPORT: AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 1996npresented for Council/Agency information and acceptance are the Audited Financial Statements for the fiscal year ended June 3D, 1996, as prepared by the independent audit firm of Moreland & Associates. Both the City's and the Agency's Annual Financial Reports received unqualified opinions from the independent audit firm. Staff recommends the Council and Agency accept the Fiscal Year 1995,96 Financial Statements. (Director of Finance) Continued from the meeting of 3/11/97. * * * END OF CONSENT CALENDAR * * * ADJOURNMENT TO CITY COUNCIL MEETING ............. Agenda ,2, March 25, 1997 ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete a "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. ITEMS PULLED FROM THE CONSENT CALENDER This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency Members. OTHER BUSINESS 4. DIRECTOR'S/CITY MANAGER'S REPORT(S) 5. CHAIR'S/MAYOR'S REPORTlS) 6. AGENCY/COUNCIL MEMBER COMMENTS ADJOURNMENT The meeting will adjourn to a Special Redevelopment Agency Meeting on April 8, 1997 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. [M: IH OMEICOMMD EVIAGEND ASIO3, 25,97. A GD] ""',' j,."t I am ,'\ ~~"-" "" - '" t\1e em:' ";<"1~t\:1C"'rl '0'" """"." (}:¡J"" ~~,c.G::C:"" " ",-::::']:1 .. OATE:.:l.)"f- r.'!.j . - - MINUTES OF A SPECIAL JOINT MEETING OF THE REDEVELOPMENT AGENCY/COUNCIL OF THE CITY OF CHULA VISTA Tuesday, March II, 1997 Council Chamhers 6:40 p.m. Public S"rvices Building CALL TO ORDER I. ROLL CALL: PRESENT: Agency/Councilmembers John S. Moot, Stephen C. Padilla, Jerry R. Rindone. Mary Salas, and Chair/Mayor Shirley A. Horton ALSO PRESENT: John Goss, Director/City MaQager; John M. Kaheny, Legal CounsellCity Attorney; Beverly A. Autheld, City Clerk; and Patricia Schwenke, Deputy City Clerk. CONSENT CALENDAR (Item pulled: 3) THE BALANCE OF THE CONSENT CALENDAR WAS OFFERED BY COUNCILMEMBER SALAS, reading of the text was waived, title read, passed, and approved unanimously 5,0. 2. APPROVAL OF MINUTES: February 4, i997 (Regular meding); Fehruary II. 1997 (Speclalmeding) 3. REPORT: AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 1996n Presented for CouncillAgency information and acceptance are the Audited Financial Statements lor the liscal year ended June 30, 1996, as prepared by the independent audit lirm of Moreland & Associates. Both the Clty's and the Agency's Annual Financial Reports received unqualified opinions from the independent audit lirm. Stalt recommends the Council and Agency accept the Fiscal Year i995'96 Financial Statements. MSC (Salas/Horton) to cnntinue to 3/25/97, approved unanimously 5,0. Councilmember Rindone requested when this item rdums to the Agency/CounCIl IÒr stall to report on the $7 mill,,) ] debt service and indicate if there is a way the City can pay this hack. He also requested stall to explain In the" report why the trallic signal special revenue fund is $956,068 in the red. * * * END OF CONSENT CALENDAR * * * ORAL COMMUNICATIONS None. ITEMS PULLED FROM THE CONSENT CALENDAR (Item 3 ,The minutes will rellect the published agenda ordeL) OTHER BUSINESS 4. DIRECTOR'S/CITY MANAGER'S REPORT(S): None. d- r - Minute, MarchJJ.J997 Page 2 5 CHAIR'S/MA YOR'S REPORTiS): None. (, AGENCY/COUNCILMEMBER COMMENTS: None. ADJOURNMENT The medong adJourned at 6:45 r.m. Resrectfu[ly submitted, BEVERL Y A.. AUTHELET, CMC/AAE by: Patricia Schwenke, Deputy City Clerk d-d- - . JOINT COUNCIL/REDEVELOPMENT AGENCY AGENDA STATEMENT Item ..3 Meeting Date !lll1~vh OUt 'PH"'; ~ /:..~ 97 ITEM TITLE: Audited Financial Statements for Fiscal Year ended June 30, 1996 SUBMITTED BY: Director of Financ~ REVIEWED BY: City Manager;55 (4/5ths Vote: Yes---No~) Presented for council/Agenhý information and acceptance are the Audited Financial Statements for the fiscal year ended June 30, 1996, as prepared by the independent audit firm of Moreland & Associates. Both the city's and the Agency's Annual Financial Reports received unqualified opinions from the independent audit firm. RECOMMENDATION: That Council and the Agency accept the fiscal year 1995-96 Financial Statements. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: Pursuant to the City Charter Section 1017, an annual audit is performed of the City's financial records by an independent accounting firm. The firm of Moreland & Associates has examined the general purpose financial statements of the City of Chula vista and the Redevelopment Agency, and issued their opinion that those statements "present fairly, in all material respects, the financial position of the City and Agency at June 30, 1996, and the results of operations for the year then ended in conformity with generally accepted accounting principles." In order to form a basis for their opinion, Moreland & Associates evaluated the internal control procedures of the city and found no conditions worthy of corrective recommendations to Council. This is a marked improvement over the previous year when there were several recommendations which Finance Department staff worked diligently to implement. Although these reports are being presented more than six months earlier than the FY 1993-94 reports and almost two months earlier than last year's reports, staff recognizes that there is still a need for significant improvement in the speed with which they are produced in order to improve their usefulness. Please be assured that staff will continue to work with the independent auditors to streamline the year-end process, improve the financial statements, and still present them in a more timely manner. ~-( Page 2, Item ..3 Meeting Date ~ ~/;¿s(qÎ The accounting firm also produced a Single Audit Report as required by the Federal Government for grant recipients. This report is available at your request. The Single Audit Report includes a summary of the City's federal grants, primarily Community Development Block Grants and statements of compliance with federal grant regulations. Again, the auditors found no significant incidences of non-compliance during this audit period, which is a marked improvement over previous years. A representative from Moreland & Associates is available to answer any questions you may have. FISCAL IMPACT: There is no fiscal impact to the City or Agency from this action. The contract for the audit services totaled $39,663 for the year reported. 4-.;l.. 1201 DOVE STREET, SUITE 680 M O~~!:?u~C~~ NEWPORT BEACH, CALIFORNIA 92660 (714) 221,0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (619) 752.3390 November 8, 1996 The Honorable City Council of the City of Chula Vista We have audited the general purpose financial statements of the City of Chula Vista, California for the year ended June 30, 1996, and have issued our report thereon dated November 8, 1996. Under generally accepted auditing standards, we are providing you the attached information related to our audit. Our responsibility under generally accepted auditing standards is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with generally accepted accounting principles. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by us. In addition, we considered the internal control structure of the City of Chu]a Vista. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control structure. Significant Accounting Policies The significant accounting policies of the City are described in note 1 to the general purpose financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no significant, unusual transactions during the year, or transactions for which there is a lack of authoritative guidance or consensus. Management Judgments and Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. The judgments and estimates which may significantly effect the City's general purpose financial statements include recording a liability for general liability and workers' compensation claims. ..3-3 The Honorable City Council of the City of Chula Vista November 8, 1996 Page 2 During our audit of the general purpose financial statements, we have performed procedures to determine the reasonableness of the estimates used by management. These procedures included but were not limited to inquiries of the City Attorney and Risk Manager. Based on these other procedures performed, we were able to conclude that the liability recorded by management was reasonable. Significant Audit Adjustments As a result of our audit related testwork, we proposed several corrections of the financial statements that, in our judgment, either individually or in the aggregate, had a significant effect on the City's financial reporting process. Other Information in Documents Containing Audited Financial Statements Our responsibility for other information in documents containing the City's general purpose financial statements and our report thereon does not extend beyond financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. Disagreements With Management There were no disagreements with management on financial accounting and reporting matters that, if not satisfactorily resolved, would have caused a modification to our report on the City's 1996 financial statements. Consultation With Other Accountants We are not aware of any instances where management has consulted with or obtained opinions, written or oral, from other independent accountants during the past year that were subject to the requirements of Statement on Auditing Standards No. 50, Reports on the Application of Accounting Principles. Major Issues Discussed With Management Prior to Retention We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. These discussions occurred in the normal course of our professional relationship. This information is intended solely for the use of the City Council, and should not be used for any other purpose. However, we understand that this document may be public information. /11. ~ ~..l ~ t&..tccI¡¿;fr"!:. 3- c/ - , 1201 DOVE STREET. SUITE 680 M °E~!:~~ci:~ NEWPORT BEACH. CALIFORNIA 92660 (714)2nO025 570 RANCHEROS DRIVE SUITE 260 SAN MARCOS. CA COMMUNITY DEVElOPMENt \ (619) 752-3390 8 FEB 2 0 I9Øl November 8, 1996 ,----"--"" ._w To the City Council of the City of Chula Vista, California Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets We have applied the procedures enumerated below to the accompanying Appropriations Limit worksheet No.6 (or other alternative computation) of the City of Chula Vista, California for the year ended June 30, 1996. These procedures, which were agreed to by the City of Chula Vista, California and the League of California Cities (as presented in the League publication entitled Article X/lIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the City of Chula Vista, California in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed worksheets No.1 through No.7 (or other alternative computations) and determined that the limit and annual adjustment factors were adopted by resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. 2. For the accompanying Appropriations Limit worksheet No.6, we added line A, last year's limit, to line E, total adjustments, and agreed the resulting amount to line F, this year's limit. 3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet No.6 to the other worksheets described in No. 1 above. ...3-S" To the City Council of the City of Chula Vista, California November 8, 1996 Page 2 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet No.6 to the prior year appropriations limit adopted by the City Council during the prior year. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have corne to our attention that would have been reported to you. This report is intended solely for the use of the City of Chula Vista, California and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. 71t. ~~ f! ~'c.IJt!'S ~- C, CITY OF CHULA VISTA APPROPRIATIONS UMIT WORKSHEET #6 FY 1995-96 BUDGET AMOUNT 1$142,437,9281 A. LAST YEAR'S UMIT, AS AMENDED B. ADJUSTMENT FACTORS 1. Population % 2. Inflation % Total Adjustrnent % I 12.95% I 1 $18,445,7121 C. ANNuAL ADJUSTMENT D. OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total I - 1 1 $18,445,7121 E. TOTAL ADJUSTMENTS 1$160,883,640 I F. CURRENT YEAR'S UMIT .J - 7 March 21, 1997 SUBJECT: :::nH:~O::::~ ::::r':::g::::J(;~i~\ city/Agency Annual Financial statttent~ for FY 1995-96 TO: FROM: At the Council/Agency meeting of March 11, 1997, during consideration of the subject report, Councilman Rindone posed two questions. Attached is a memo from the Director of Finance in response to those questions, which was inadvertently omitted from the packets that went out yesterday. This is transmitted for your information. JDG:mab COUNCIL INFORMATION DATE: March 21, 1997 FROM: Honorable Mayor and city Council John D. Goss, City Manage~ Robert W. Powell, Director of Finance~ FINANCIAL STATEMENT QUESTIONS FROM MARCH 11, 1997 TO: VIA: . SUBJECT: The following information is provided in response to questions posed by Councilmember Rindone at the Council/Agency meeting of March 11, 1997, at which time consideration of the City/Agency Annual Financial Statements for Fiscal Year 1995-96 was continued until tonight. Question: "The report seems to indicate that there is a annual debt service requirement of almost $7 million (page 33). How is the City going to be able to fund such a requirement?" Response: It should be noted that the table on page 33 of the city Financial Report includes both city and Agency Debt, with the city portion represented by the Notes Payable, Certificates of Participation, and Pension Obligation Bonds totaling $3.8 million of the $6.3 million requirement for FY97. The Agency annual debt requirement for that same year is represented by Tax Allocation Bonds for $2.5 million. The city's overall debt service payments, excluding assessment districts, have averaged approximately $6.5 million since the late 1980' s when the city/Agency became very active in issuing debt for redevelopment purposes. When viewed as a percentage of the General Fund Budget, the $3.8 million requirement is approximately 6.2 percent of the budget. Municipal financial analysts would consider this to be a very manageable level of debt and not cause for concern unless it reaches a level above 10 percent. -2- Ouestion: "The statement on page 68 of the City Financial Report appears to indicate that the Traffic Signal Special Revenue Fund ended the year with a deficit of almost $1 million. Please explain." Response: The statement referred to is one that compares the actual performance in each Fund to the adopted budget. The first column reflects the budget, the second column reflects the actual revenues, expenditures, and transfers between Funds, and the third column reflects any variance between the budget and actual performance. Rather than indicating that the Traffic Signal Fund ended the fiscal year with a deficit, the statement indicates in the second column that the Fund had a positive Fund balance of $653,232. The third column does indicate that the Fund experienced a significant variance compared to the adopted budget as the result of transfers to other city Funds without a corresponding budget amount. This is an unfortunate implication since all such transfers were approved by Council to the Capital Improvement Fund for capital proj ects related to traffic signal improvements. Although somewhat duplicative, it may be beneficial in the future to record a budget entry in the various special revenue Funds that provide funding via transfers to the Capital Improvement Program Fund in order to avoid the appearance of a negative budget variance on this statement. I would be happy to elaborate further on either of these questions during the meeting, or to address any further questions you might have. MEMORANDUM March 19, 1997 FROM: Mayor Shirley Horton, C\f\ John D. Goss, City Manager ~'oJG ~ \ ~ . Chris Salomone, Director of Community Development C. TO: VIA: Special Joint Redevelopment Agency/Council Meeting - March 25, 1997 SUBJECT: Staff requests you call a special joint meeting of the Redevelopment Agency/Council for March 25, 1997 to discuss, deliberate and act upon the following item: . REPORT ON AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 1996 By signing below you will authorize calling the meeting. I hereby call a special joint meeting of the Redevelopment Agency/Council for March 25, 1997 Sh;'~~ ((md) M:\HOME\COMMDEV\STAFF.REP\03-25-97\SPMTG.MEM (March 19, 1997 (10:53am)]