HomeMy Public PortalAboutA 2012-12-18OB_LSAThis Agenda contains a brief general description of each item to be considered. Copies of the
Staff reports or other written documentation relating to each item of business referred to on the
Agenda are on file in the Office of the City Clerk and are available for public inspection. Any
person who has a question concerning any of the agenda items may call the City Manager at
(310) 603-0220, ext. 200.
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
TO THE DISSOLVED LYNWOOD REDEVELOPMENT AGENCY
AGENDA
REGULAR MEETING
DECEMBER 18, 2012
3:00 P.M.
E)u8\ �GSTQCI
REEIVED
DEC 13 2012
CITY OF LYNWOOD
COUNCIL CHAMBERS CITY CLERKS OFFICE
LYNWOOD CITY HALL ')ariq Q'�roneZ
11330 BULLIS ROAD, LYNWOOD, CA 90262 CFS.) 0 e y l< b� ( F—
DR. KEITH CURRY
VICE CHAIR
MALCOLM BENNETT
BOARD MEMBER
SARAH MAGANA WITHERS
BOARD MEMBER
LUIS VALENZUELA
CHAIR
MICHELLE BANKS-ORDONE
BOARD MEMBER
OPENING CEREMONIES
CALL TO ORDER
BRUNO NAULLS
BOARD MEMBER
PETER WONG
BOARD MEMBER
2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
3. ROLL CALL OF BOARD MEMBERS
Michelle Banks-Ordone
Malcolm Bennett
Bruno Naulls
Sarah Magana Withers
Peter Wong
Dr. Keith Curry
Luis Valenzuela
4. PLEDGE OF ALLEGIANCE
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NEW BUSINESS
5 MINUTES OF PREVIOUS MEETINGS:
Special Meeting — October 9, 2012
Regular Meeting — October 16, 2012
6. APPROVAL OF DUE DILIGENCE REVIEW RPORT #2
Comments:
Pursuant to California Health and Safety Section 34179.6(b), upon receipt of the Due
Diligence review required to be prepared for All Other Funds ("Due Diligence Review
Report") under Section 34179.5, the Oversight Board is required to convene a public
comment session on the review at least five business days before the Oversight Board
holds an approval vote on the review.
Recommendation:
Staff recommends that the Honorable Chair and Members of the Oversight Board
approve the Due Diligence Review Report #2 — All Other Funds.
OVERSIGHT BOARD ITEMS
NONE
ADJOURNMENT
THE NEXT REGULAR OVERSIGHT BOARD MEETING WILL BE POSTED AS NEEDED. THE
NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF CITY HALL, 11330
BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
TO THE DISSOLVED LYNWOOD REDEVELOPMENT AGENCY
MINUTES
SPECIAL MEETING
TUESDAY, OCTOBER 9, 2012
3:00 P.M.
COUNCIL CHAMBERS
LYNWOOD CITY HALL
11330 BULLIS ROAD, LYNWOOD, CA 90262
1. CALL TO ORDER
The meeting was called to order at 3:00 p.m.
2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
Rhonda Rangel, Secretary, confirmed that the Agenda was posted correctly.
3. ROLL CALL OF BOARD MEMBERS
Rhonda Rangel, Secretary, called the roll.
Board Members Present
Chair Luis C. Valenzuela
Vice Chair Dr. Keith Curry (arrived at 3:13 p.m.)
Board Member Malcolm Bennett
Board Member Bruno Naulls
Board Member Sarah Magana Withers
Board Member Peter Wong
Board Member Michelle Banks-Ordone
4. PLEDGE OF ALLEGIANCE
Chair Valenzuela led the Pledge of Allegiance
5. PRESENTATIONS
There were none. 1.
ITEM
PUBLIC ORAL COMMUNICATIONS
There were no public comments.
Lynwood Oversight Board
10-09-12
Page 2
NEW BUSINESS
6. MINUTES OF PREVIOUS MEETINGS:
Regular Meeting- August 21, 2012
Special Meeting -August 28, 2012
On motion of Board Member Bennett, seconded by Chair Valenzuela, duly
carried by the following vote, the Board approved the Regular Meeting
minutes of August 21, 2012 and the Special Meeting minutes of August 28,
2012:
AYES: Board Members Bennett, Wong, Withers, Naulls, Vice Chair
Curry and Chair Valenzuela
NOES: None
ABSTENTIONS: Board Member Banks-Ordone
7. PUBLIC COMMENT SESSION ON DUE DILIGENCE REVIEW REPORT #1 -
LOW AND MODERATE INCOME HOUSING FUND
Lorry Hempe, Public Works Special Projects Manager, provided an overview of
the staff report disseminated to the Board including the requirements of the
Public Comment Session that must be held for five business days. She added
that the Due Diligence Review (DDR) was prepared by Vasquez and Company
LLP, and requested the Board to hold a Special Meeting on October 16, 2012 for
approval of the DDR.
Fred Galante, City Attorney, stated that the DDR is a review of the former
Redevelopment Agency's housing assets and the Board approved DDR must be
submitted to the Department of Finance by October 15, 2012. There are no
penalties for submitting the DDR past the deadline. However, the Department of
Finance requests that a tentative date of submittal be provided to them.
Board Member Banks-Ordone inquired on the methods used to inform the public
of the Public Comment Session because there are many non-profit agencies that
may want to review the DDR. Mr. Galante stated that Board agendas are posted
on the City's website and in City Hall. A copy of the DDR will also be provided to
any member of the public that requests it.
Mr. Galante requested that the Board open up the Public Comment Session for
five business days, and place the DDR on the agenda for approval at the next
Special Meeting to be held on October 16, 2012
Lynwood Oversight Board
10-09-12
Page 3
On motion of Chair Valenzuela and by Common Consent, there being no
objection, the Board opened up the Public Comment Session.
No members of the public were present.
8. RE -ADOPTION OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE PERIOD OF JANUARY 1, 2013 TO JUNE 30, 2013 (ROPS III)
Lorry Hempe, Public Works Special Projects Manager, stated that the Department of
Finance (DOF) informed the City that there are items listed on ROPS III that they
would like to see corrected, clarified, deleted or revised. Ms. Hempe distributed a
revised ROPS III for the Boards review. She recommended that the Board approve
the corrected ROPS Ill and authorize staff to submit the revised ROPS III to the
DOF, Los Angeles County Auditor -Controller, Los Angeles County Chief
Administrative Office, and the State Controller's Office.
Chair Valenzuela requested an overview of each revised line item on the ROPS III.
(Board Member Curry arrived at 3:13 p.m.)
Ms. Hempe reviewed the following Line Items on the ROPS III:
Line Item 7 -Project Name: 1999 City and Agency Cooperation Agreement, Payee:
City of Lynwood
The DOF did note that this item was denied in the previous ROPS. However, there
was no appeal process at that time. The DOF advised the City to list the line item
again on the ROPS III, with the knowledge that it would be denied in order to request
at "Meet and Confer" to argue the validity of the item.
Line Item 13- Project Name: Agreement, Payee: Various Employees
Line Item 13 was lined out on the ROPS III. Although previously approved by the
DOF in past ROPS, the City wanted to ensure that there is no double counting of
salaries. The salaries of staff are now being distributed under each project
Line 14- Project Name: Agreement, Payee: Various Employees
There is a Memorandum of Understanding (MOU) with Employee Bargaining Units
that states that City employees can be compensated for unused sick time. Contrary
to what the DOF states, the City believes that this is as recognized obligation and
Staff intends to request a "Meet and Confer" for this item.
Line Item 19a -Project Name: Settlement Agreement (Rogel v. LRA), Payee: Various
developers, staffing costs, legal and miscellaneous costs
Staff provided additional clarifying information, as requested by the DOF.
Lynwood Oversight Board
10-09-12
Page 4
Line Item 19b -Project Name: Settlement Agreement (Rogel v. LRA), Payee: LMIHF
Staff provided additional clarifying information, as requested by the DOF.
Line Item 19c -Protect Name: Settlement Agreement (Rogel v. LRA), Payee: LMIHF
The item was lined out on the ROPS III.
Line Item 19d -Project Name: Settlement Agreement (Rogel v. LRA) Payee:
Counsels for Plaintiffs
Staff provided additional clarifying information, as requested by the DOF.
Line Item 20 -Project Name: Settlement Agreement (Rogel v. LRA), Payee: Glen
Campora, other consultants
Staff provided additional clarifying information, as requested by the DOF.
Line Item 21 -Project Name Settlement Agreement (Rogel v. LRA), Payee: Del
Richardson and Associates and other relocation consultants
The item was lined out on the ROPS III.
Line Item 22 -Protect Name: Settlement Agreement (Rogel v. LRA), Payee: Various
Claimants
Staff provided additional clarifying information, as requested by the DOF.
Line Item 22a -Project Name: Settlement Agreement (Rogel v. LRA), Payee: Staffing
costs, Aleshire & Wynder, MDG, miscellaneous costs, Kane, Ballmer and Berkman
Staff provided additional clarifying information, as requested by the DOF.
Line Item 30: Project Name: Settlement Agreement (Rogel v. LRA) Payee: Kane
Ballmer, and Berkman
The item was lined out on the ROPS III.
Line Item 24: Project Name: DDA Park Place, Payee: AMCAL
Staff provided additional clarifying information, as requested by the DOF. However,
the DOF was not clear on what additional information they needed. This line item
was also previously approved on past ROPS.
Lynwood Oversight Board
10-09-12
Page 5
Line Item 24a: Project Name- DDA Park Place, Payee: Various vendors, MDG,
staffing costs, legal costs, and other miscellaneous expenses
Staff provided additional clarifying information, as requested by the DOF.
Line Item 24b: DDA Park Place, Payee: AMCAL
Staff provided additional clarifying information, as requested by the DOF.
Line Item 25: Project Name: Agreement-CALHome, Payee: HCD
Staff provided additional clarifying information, as requested by the DOF.
Line Item 25a: Project Name Agreement-CALHome, Payee: Staffing Costs
Staff provided additional clarifying information, as requested by the DOF.
Line Item 26: Project Name: DDA Casa Grande, Payee: Casa Grande, Gannett
Fleming and other environmental consultants
Staff provided additional clarifying information, as requested by the DOF.
Line Item 26a -Project Name Casa Grande, Payee: Various vendors, staffing costs,
legal costs, and other miscellaneous expenses
Staff provided additional clarifying information, as requested by the DOF.
Ms. Hempe added that all of the additional items and information that the DOF
requested have been provided by the Successor Agency and they are awaiting a
reply.
Board Member Wong requested clarification on Line Item 7: Project Name: 1999 City
and Agency Cooperation Agreement, regarding the outstanding debt and the interest
rate. Ms. Hempe stated that she will verify the amounts and the interest rates and
will provide the information to the Board at a future meeting.
Board Member Bennet requested clarification on why the DOF is challenging
Cooperative Agreements. Fred Galante, City Attorney, explained that AB1484 only
recognizes city and successor agency agreements that were entered within the first
two years of the formation of the former redevelopment agency. He added that there
are clauses in California Health and Safety Code, Division 24, Part 1. Community
Redevelopment Law, which states it is appropriate to provide loan agreements
between cities and redevelopment agencies and that the loans must be repaid.
Lynwood Oversight Board
10-09-12
Page 6
Board Member Banks-Ordone thanked staff for their preparation of the ROPS III.
She also requested clarification on Line Item 24a: Project Name- DDA Park Place, in
regards to whether or not the DOF was provided with an itemized breakdown of the
payees. Ms. Hempe stated that the Successor Agency does have an itemized
breakdown of the salaries, legal fees, etc. which will be provided to the DOF during
the "Meet and Confer' process.
On motion of Board Member Banks-Ordone, seconded by Vice Chair Curry,
unanimously carried by the following vote, the Board adopted a Resolution
approving a Third Recognized Obligation Payment Schedule covering the
Period of January 1, 2013 to June 30, 2013:
AYES: Board Members Banks-Ordone, Bennett, Wong, Withers,
Naulls, Vice Chair Curry and Chair Valenzuela
NOES: None
ABSTENTIONS: Board Member Withers on Line Item 49, 13, and 14 as they
relate to compensation and Board Member Naulls on any
line items relating to salary costs
9. LOS ANGELES COUNTY NOTICE OF OBJECTIONS TO ROPS III
Lorry Hempe, Public Works Special Projects Manager, provided and overview of a
letter that was received from the Los Angeles County Auditor -Controller's office
advising the Successor Agency of some objections to items on the January 2013
through June 2013 Recognized Obligation Payment Schedule (ROPS III).
Chair Valenzuela inquired if a response to the letter was sent to the County. Ms.
Hempe stated that the Successor Agency is working on a response to advise them
that they are in receipt of the letter and although they recognize their objections, they
are going to make their case to the Department of Finance.
Fred Galante, City Attorney, added that the County does not have the authority to
approve the ROPS and the Successor Agency is not addressing the County's
concerns.
On motion of Chair Valenzuela, and by Common Consent, there being no
objection, the Board received and filed the report.
Lynwood Oversight Board
10-09-12
Page 7
OVERSIGHT BOARD ITEMS
There were none.
ADJOURNMENT
On motion of Chair Valenzuela, and by Common Consent, there being no
objection the meeting was adjourned at 3:42 p.m. The next Special Meeting is
scheduled for Tuesday, October 16, 2012 a 3:00 p.m. in Council Chambers, 11330
Bullis Road, Lynwood, CA 90262.
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
TO THE DISSOLVED LYNWOOD REDEVELOPMENT AGENCY
MINUTES
REGULAR MEETING
TUESDAY, OCTOBER 16, 2012
3:00 P.M.
COUNCIL CHAMBERS
LYNWOOD CITY HALL
11330 BULLIS ROAD, LYNWOOD, CA 90262
1. CALL TO ORDER
The meeting was called to order at 3:03 p.m.
2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
Rhonda Rangel, Secretary, confirmed that the Agenda was posted correctly.
3. ROLL CALL OF BOARD MEMBERS
Board Members Present
Chair Luis C. Valenzuela
Vice Chair Dr. Keith Curry (arrived at 3:05 p.m.)
Board Member Michelle Banks-Ordone
Board Member Bruno Naulls
Board Member Sarah Magana Withers
Board Members Absent
Board Member Malcolm Bennett
Board Member Peter Wong
4. PLEDGE OF ALLEGIANCE
Chair Valenzuela led the Pledge of Allegiance.
5. PRESENTATIONS
PUBLIC ORAL COMMUNICATIONS
There were no public comments.
Lynwood Oversight Board
10-16-12
Page 2
NEW BUSINESS
6. APPROVAL OF DUE DILIGENCE REVIEW REPORT #1
Amanda Roberson, Controller/Audit Manager, provided a brief overview of the
staff report disseminated to the Board, which included a copy of the Due
Diligence Review (DDR). She stated that the Board held the Public Comment
Session for 5 business days from October 9, 2012 through October 16, 2012 as
required by Health and Safety Section 34179.6(b). Ms. Roberson added that the
audit (DDR) determined that there are no monies due to the County.
On motion of Board Member Ordone, seconded by Vice Chair Curry,
unanimously carried (Board Member Bennett and Wong being absent), the
Board approved the Due Diligence Review Report #1.
OVERSIGHT BOARD ITEMS
There were none.
ADJOURNMENT
On motion of Chair Valenzuela, and by common consent, there being no
objection (Board Member Bennett and Wong being absent), the meeting
was adjourned at 3:07 p.m.
AGENDA STAFF REPORT
DATE: December 18, 2012
TO: Honorable Chair and Members of the Oversight Board
APPROVED BY: Roger L. Haley, City Manage
PREPARED BY: Amanda Roberson, Controller/Audit Manager"
SUBJECT: Approval of Due Diligence Review Report #2
Recommendation:
Staff recommends that the Honorable Chair and Members of the Oversight Board
approve the Due Diligence Review Report #2 — All Other Funds
Background:
Pursuant to California Health and Safety Section 34179.6(b), upon receipt of the Due
Diligence Review required to be prepared for All Other Funds ("Due Diligence Review
Report") under Section 34179.5, the Oversight Board is required to convene a public
comment session on the review at least five business days before the Oversight Board
holds an approval vote on the review. The review was transmitted to the Oversight
Board and posted online on the City's/Successor Agency's Internet web site on
December 13, 2012. The review was provided to the Oversight Board on December 13,
2012.
Per the requirements of Health and Safety Section 34179.6(b), the Board should review
the Due Diligence Review Report and provide an opportunity for any interested member
of the public to make comments regarding the Due Diligence Review Report. The
public comment session was from December 13, 2012 through December 18, 2012.
As the public comment session has ended, staff recommends that the Board approve
the Due Diligence Review Report.
Fiscal Impact:
None
Coordinated With:
City Attorney
ITEM
Community Development
Finance Department
Attachments:
Agreed-upon Procedures Report Pursuant to Health and Safety Code Sections
34179.5 and 34179.6 (AB 1484) Prepared by Vasquez and Company
Successor Agency to the Dissolved Redevelopment Agency
of the City of Lynwood
All Other Funds
Agreed-upon Procedures Report
Pursuant to Health and Safety Code Sections 34179.5 and 34179.6 (AB 1484)
Table of Contents
PAGE
INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING
AGREED-UPON PROCEDURES
ATTACHMENTS
Attachment A
Agreed-upon Procedures
2
Attachment B
Summary of Results
10
Attachment B-1
Schedule of Assets Transferred to the City of Lynwood
is
Attachment B-2
Schedule of Assets Transferred to Other Public Agencies or
Private Parties
18
Attachment B-3
Summary of Financial Transactions
19
Attachment B-4
List of Assets as of June 30, 2012
20
Attachment B-5
Calculation of Legally Restricted Balances - Unspent Bond
Proceeds
21
Attachment B-6
List of Assets That are Not Cash and Cash Equivalents
22
Attachment B-7
Calculation of Current Balances Needed to Satisfy
Obligations on the ROPS
23
Attachment B-8
Summary of Balances Available for Allocation to Affected
Taxing Entities
24
INDEPENDENT ACCOUNTANTS' REPORT
ON APPLYING AGREED-UPON PROCEDURES
Oversight Board
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
We have performed the agreed-upon procedures enumerated in Attachment A, which we have been
advised were developed by the California Society of Certified Public Accountants and generally agreed to
by the California State Controller's Office and Department of Finance, solely to assist you in ensuring that
the Successor Agency to the dissolved Redevelopment Agency of the City of Lynwood (Successor
Agency) is complying with certain statutory requirements with respect to Health and Safety Code Sections
34179.5 and 34179.6, as they apply to all other funds of the Successor Agency. Management of the
Successor Agency is responsible for the accounting records pertaining to statutory compliance. This
agreed-upon procedures engagement was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the
responsibility of those parties specified in the report. Consequently, we make no representation regarding
the sufficiency of the procedures described in Attachment A either for the purpose for which this report has
been requested or for any other purpose.
The scope of this engagement was limited to performing the agreed-upon procedures as set forth in
Attachment A, as they apply to all other funds of the Successor Agency.
Attachment B identifies the results of the procedures performed.
We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of
an opinion as to the appropriateness of the results summarized in Attachment B. Accordingly, we do not
express such an opinion. Had we performed additional procedures, other matters might have come to our
attention that would have been reported to you.
This report is intended solely for the information and use of the Successor Agency to the dissolved
Redevelopment Agency of the City of Lynwood, and applicable State agencies, and is not intended to be
and should not be used by anyone other than these specified parties. This restriction is not intended to limit
distribution of this report, which is a matter of public record.
Los Angeles, California
December xx, 2012
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
List of Procedures for Due Diligence Review
Citation:
34179.5(c)(1) The dollar value of assets transferred from the former redevelopment agency
to the successor agency on or about February 1, 2012.
Suggested Procedure(s):
Obtain from the Successor Agency a listing of all assets that were transferred from the
former redevelopment agency to the Successor Agency on February 1, 2012. Agree the
amounts on this listing to account balances established in the accounting records of the
Successor Agency. Identify in the Agreed -Upon Procedures (AUP) report the amount of the
assets transferred to the Successor Agency as of that date.
Citation:
34179.5(c)(2) The dollar value of assets and cash and cash equivalents transferred after
January 1, 2011, through June 30, 2012, by the redevelopment agency or the successor
agency to the city, county, or city and county that formed the redevelopment agency and the
purpose of each transfer. The review shall provide documentation of any enforceable
obligation that required the transfer.
Suggested Procedure(s):
2. If the State Controller's Office has completed its review of transfers required under both
Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of
that report as an exhibit to the AUP report. If this has not yet occurred, perform the
following procedures:
A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the former redevelopment agency to the city, county, or city and
county that formed the redevelopment agency for the period from January 1, 2011 through
January 31, 2012. For each transfer, the Successor Agency should describe the purpose of
the transfer and describe in what sense the transfer was required by one of the Agency's
enforceable obligations or other legal requirements. Provide this listing as an attachment to
the AUP report.
B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the Successor Agency to the city, county, or city and county
that formed the redevelopment agency for the period from February 1, 2012 through June
30, 2012. For each transfer, the Successor Agency should describe the purpose of the
transfer and describe in what sense the transfer was required by one of the Agency's
enforceable obligations or other legal requirements. Provide this listing as an attachment to
the AUP report.
C. For each transfer, obtain the legal document that formed the basis for the enforceable
obligation that required any transfer. Note in the AUP report the absence of any such legal
document or the absence of language in the document that required the transfer.
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
Citation:
34179.5(c)(3) The dollar value of any cash or cash equivalents transferred after January 1,
2011, through June 30, 2012, by the redevelopment agency or the successor agency to any
other public agency or private party and the purpose of each transfer. The review shall provide
documentation of any enforceable obligation that required the transfer.
Suggested Procedure(s):
3. If the State Controller's Office has completed its review of transfers required under both
Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of
that report as an exhibit to the AUP report. If this has not yet occurred, perform the following
procedures:
A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the former redevelopment agency to any other public agency or
to private parties for the period from January 1, 2011 through January 31, 2012. For each
transfer, the Successor Agency should describe the purpose of the transfer and describe in
what sense the transfer was required by one of the Agency's enforceable obligations or
other legal requirements. Provide this listing as an attachment to the AUP report.
B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the Successor Agency to any other public agency or private
parties for the period from February 1, 2012 through June 30, 2012. For each transfer, the
Successor Agency should describe the purpose of the transfer and describe in what
sense the transfer was required by one of the Agency's enforceable obligations or other
legal requirements. Provide this listing as an attachment to the AUP report.
C. For each transfer, obtain the legal document that formed the basis for the enforceable
obligation that required any transfer. Note in the AUP report the absence of any such legal
document or the absence of language in the document that required the transfer.
Citation:
34179.5(c)(4) The review shall provide expenditure and revenue accounting information and
identify transfers and funding sources for the 2010-11 and 2011-12 fiscal years that reconcile
balances, assets, and liabilities of the successor agency on June 30, 2012 to those reported to
the Controller for the 2009-10 fiscal year.
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
Suggested Procedure(s):
4. Perform the following procedures:
A. Obtain from the Successor Agency a summary of the financial transactions of the
Redevelopment Agency and the Successor Agency in the format set forth in the attached
schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the
financial transactions should be presented using the modified accrual basis of
accounting. End of year balances for capital assets (in total) and long-term liabilities (in
total) should be presented at the bottom of the Schedule of Financial Transactions for
information purposes.
B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers
account fully for the changes in equity from the previous fiscal period.
C. Compare amounts in the Schedule of Financial Transactions relevant to the fiscal year
ended June 30, 2010 to the state controller's report filed for the Redevelopment Agency for
that period.
D. Compare amounts in the Schedule of Financial Transactions for the other fiscal periods
presented to account balances in the accounting records or other supporting schedules.
Describe in the report the type of support provided for each fiscal period.
Citation:
34179.5(c)(5) A separate accounting for the balance for the Low and Moderate Income
Housing Fund and for all other funds and accounts combined shall be made as
follows:
(A) A statement of the total value of each fund as of June 30, 2012.
Suggested Procedure(s):
5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate
Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a
listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding
the previously reported assets of the Low and Moderate Income Housing Fund) for the
report that is due December 15, 2012. When this procedure is applied to the Low and Moderate
Income Housing Fund, the schedule attached as an exhibit will include only those assets
of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of
June 30, 2012 and will exclude all assets held by the entity that assumed the housing function
previously performed by the former redevelopment agency. Agree the assets so listed to
recorded balances reflected in the accounting records of the Successor Agency. The listings
should be attached as an exhibit to the appropriate AUP report.
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
Citation:
34179.5(c)(5)(8) An itemized statement listing any amounts that are legally restricted as to
purpose and cannot be provided to taxing entities. This could include the proceeds of any
bonds, grant funds, or funds provided by other governmental entities that place conditions on
their use.
Suggested Procedure(s):
6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that are
restricted for the following purposes:
A. Unspent bond proceeds:
i. Obtain the Successor Agency's computation of the restricted balances (e.g., total
proceeds less eligible project expenditures, amounts set aside for debt service
payments, etc.)
ii. Trace individual components of this computation to related account balances in
the accounting records, or to other supporting documentation (specify in the AUP
report a description of such documentation).
iii. Obtain from the Successor Agency a copy of the legal document that sets forth the
restriction pertaining to these balances. Note in the AUP report the absence of
language restricting the use of the balances that were identified by the Successor
Agency as restricted.
B. Grant proceeds and program income that are restricted by third parties:
i. Obtain the Successor Agency's computation of the restricted balances (e.g., total
proceeds less eligible project expenditures).
ii. Trace individual components of this computation to related account balances in
the accounting records, or to other supporting documentation (specify in the AUP
report a description of such documentation).
iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth
the restriction pertaining to these balances. Note in the AUP report the absence of
language restricting the use of the balances that were identified by the Successor
Agency as restricted.
C. Other assets considered to be legally restricted:
i. Obtain the Successor Agency's computation of the restricted balances (e.g., total
proceeds less eligible project expenditures).
ii. Trace individual components of this computation to related account balances in
the accounting records, or to other supporting documentation (specify in the AUP
report a description of such documentation).
iii. Obtain from the Successor Agency a copy of the legal document that sets forth the
restriction pertaining to these balances. Note in the AUP report the absence of
language restricting the use of the balances that were identified by Successor the
Agency as restricted.
D. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the
AUP report. For each restriction identified on these schedules, indicate in the report the
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
period of time for which the restrictions are in effect. If the restrictions are in effect until the
related assets are expended for their intended purpose, this should be indicated in the
report.
Citation:
34179.5(c)(5)(C) An itemized statement of the values of any assets that are not cash or cash
equivalents. This may include physical assets, land, records, and equipment. For the purpose
of this accounting, physical assets may be valued at purchase cost or at any recently
estimated market value. The statement shall list separately housing -related assets.
Suggested Procedure(s):
7. Perform the following procedures:
A. Obtain from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid
or otherwise available for distribution (such as capital assets, land held for resale, long-term
receivables, etc.) and ascertain if the values are listed at either purchase cost (based on
book value reflected in the accounting records of the Successor Agency) or market value as
recently estimated by the Successor Agency.
B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a
previously audited financial statement (or to the accounting records of the Successor
Agency) and note any differences.
C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain
that the proceeds were deposited into the Successor Agency trust fund. If the differences
are due to additions (this generally is not expected to occur), inspect the supporting
documentation and note the circumstances.
D. If the assets listed at 7(A) are listed at recently estimated market value, inspect the
evidence (if any) supporting the value and note the methodology used. If no evidence is
available to support the value and\or methodology, note the lack of evidence.
Citation:
34179.5(c)(5)(D) An itemized listing of any current balances that are legally or contractually
dedicated or restricted for the funding of an enforceable obligation that identifies the nature of
the dedication or restriction and the specific enforceable obligation. In addition, the successor
agency shall provide a listing of all approved enforceable obligations that includes a projection
of annual spending requirements to satisfy each obligation and a projection of annual revenues
available to fund those requirements. If a review finds that future revenues together with
dedicated or restricted balances are insufficient to fund future obligations and thus retention of
current balances is required, it shall identify the amount of current balances necessary for
retention. The review shall also detail the projected property tax revenues and other general
purpose revenues to be received by the successor agency, together with both the amount
and timing of the bond debt service payments of the successor agency, for the period in which
the oversight board anticipates the successor agency will have insufficient property tax
revenue to pay the specified obligations.
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
Suggested Procedure(s):
8. Perform the following procedures:
A. If the Successor Agency believes that asset balances need to be retained to satisfy
enforceable obligations, obtain from the Successor Agency an itemized schedule of asset
balances (Schedule of Asset Balances) as of June 30, 2012 that are dedicated or restricted
for the funding of enforceable obligations and perform the following procedures. The
Schedule of Asset Balances should identify the amount dedicated or restricted, the nature
of the dedication or restriction, the specific enforceable obligation to which the dedication
or restriction relates, and the language in the legal document that is associated with the
enforceable obligation that specifies the dedication of existing asset balances toward
payment of that obligation.
i. Compare all information on the Schedule of Asset Balances to the legal
documents that form the basis for the dedication or restriction of the resource
balance in question.
ii. Compare all current balances to the amounts reported in the accounting records of
the Successor Agency or to an alternative computation.
iii. Compare the specified enforceable obligations to those that were included in the
final Recognized Obligation Payment Schedules (ROPS) approved by the
California Department of Finance.
iv. Attach as an exhibit to the report the listing obtained from the Successor Agency.
Identify in the report any listed balances for which the Successor Agency was
associated with the enforceable obligation.
B. If the Successor Agency believes that future revenues together with balances
dedicated or restricted to an enforceable obligation are insufficient to fund future obligation
payments and thus retention of current balances is required, obtain from the Successor
Agency a schedule of approved enforceable obligations that includes a projection of the
annual spending requirements to satisfy each obligation and a projection of the annual
revenues available to fund those requirements and perform the following procedures:
i. Compare the enforceable obligations to those that were approved by the
California Department of Finance. Procedures to accomplish this may include
reviewing the letter from the California Department of Finance approving the
Recognized Enforceable Obligation Payment Schedules for the six month period
from January 1, 2012 through June 30, 2012 and for the six month period July 1,
2012 through December 31, 2012.
ii. Compare the forecasted annual spending requirements to the legal document
supporting each enforceable obligation.
a. Obtain from the Successor Agency its assumptions relating to the forecasted
annual spending requirements and disclose in the report major assumptions
associated with the projections.
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
iii. For the forecasted annual revenues:
a. Obtain from the Successor Agency its assumptions for the forecasted annual
revenues and disclose in the report major assumptions associated with the
projections.
C. If the Successor Agency believes that projected property tax revenues and other
general purpose revenues to be received by the Successor Agency are insufficient to pay
bond debt service payments (considering both the timing and amount of the related cash
flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and
apply the following procedures to the information reflected in that schedule.
i. Compare the timing and amounts of bond debt service payments to the related
bond debt service schedules in the bond agreement.
ii. Obtain the assumptions for the forecasted property tax revenues and disclose
major assumptions associated with the projections.
iii. Obtain the assumptions for the forecasted other general purpose revenues and
disclose major assumptions associated with the projections.
D. If procedures A, B, or C were performed, calculate the amount of current unrestricted
balances necessary for retention in order to meet the enforceable obligations by performing
the following procedures.
Combine the amount of identified current dedicated or restricted balances and the
amount of forecasted annual revenues to arrive at the amount of total resources
available to fund enforceable obligations.
ii. Reduce the amount of total resources available by the amount forecasted for the
annual spending requirements. A negative result indicates the amount of current
unrestricted balances that needs to be retained.
iii. Include the calculation in the AUP report.
Citation:
34179.5(c)(5)(E) An itemized list and analysis of any amounts of current balances that are
needed to satisfy obligations that will be placed on the Recognized Obligation Payment
Schedules for the current fiscal year.
Attachment A
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Agreed -Upon Procedures
Suggested Procedure(s):
9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be
retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the
period of July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of
July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period January
1, 2013 through .June 30, 2013. For each obligation listed on the ROPS, the Successor
Agency should add columns identifying (1) any dollar amounts of existing cash that are
needed to satisfy that obligation and (2) the Successor Agency's explanation as to why the
Successor Agency believes that such balances are needed to satisfy the obligation. Include
this schedule as an attachment to the AUP report.
Citation:
34179.5(c)(6) The review shall total the net balances available after deducting the total
amounts described in subparagraphs (B) to (E), inclusive, of paragraph (5). The review shall
add any amounts that were transferred as identified in paragraphs (2) and (3) of subdivision (c)
if an enforceable obligation to make that transfer did not exist. The resulting sum shall be
available for allocation to affected taxing entities pursuant to Section 34179.6. It shall be a
rebuttable presumption that cash and cash equivalent balances available to the successor
agency are available and sufficient to disburse the amount determined in this paragraph to
taxing entities. If the review finds that there are insufficient cash balances to transfer or that
cash or cash equivalents are specifically obligated to the purposes described in subparagraphs
(B), (D), and (E) of paragraph (5) in such amounts that there is insufficient cash to provide the
full amount determined pursuant to this paragraph, that amount shall be demonstrated in an
additional itemized schedule.
Suggested Procedure(s):
10. Include (or present) a schedule detailing the computation of the Balance Available for
Allocation to Affected Taxing Entities. Amounts included in the calculation should agree to the
results of the procedures performed in each section above. The schedule should also
include a deduction to recognize amounts already paid to the County Auditor -Controller on
July 12, 2012 as directed by the California Department of Finance. The amount of this
deduction presented should be agreed to evidence of payment. Separate schedules
should be completed for the Low and Moderate Income Housing Fund and for all other funds
combined (excluding the Low and Moderate Income Housing Fund).
Attachment B
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Summary of Results
The results of the procedures performed, as described in Attachment A, are as follows:
Citation:
34179.5(c)(1) The dollar value of assets transferred from the former redevelopment agency to the
successor agency on or about February 1, 2012.
Procedure No. 1 Results
The former Redevelopment Agency established the following new accounting funds in preparation for the
transfer of assets from the former Redevelopment Agency to the Successor Agency:
Fund Number
1012
1014
1016
1017
1018
1019
1020
1021
Fund Description
Community Development A
Community Development B
Tax Allocation Bond Reserve 1999
Community Development A Bond Proceeds
1999 Bond Proceeds
Series 2011 A Bond Proceeds
Series 2011 B Bond Proceeds
Redevelopment Obligation Retirement
The total value of assets transferred from the former Redevelopment Agency to the Successor Agency on
February 1, 2012, amounted to $27,374,749 consisting of the following:
Type
Cash
Restricted cash
Cash with fiscal agent
Loans receivable
Accounts receivable
Land held for resale
Due from City of Lynwood
Total
Amount
$ 5,495,058
58,082
19,578,241
202,568
527
1,082,893
957,380
$ 27,374,749
The above balances were agreed to the Successor Agency's trial balance as of February 1, 2012, without
exception.
10
Attachment B
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Summary of Results
Citation:
34179.5(c)(2) The dollar value of assets and cash and cash equivalents transferred after January 1,
2011, through June 30, 2012, by the redevelopment agency or the successor agency to the city, county, or
city and county that formed the redevelopment agency and the purpose of each transfer. The review shall
provide documentation of any enforceable obligation that required the transfer.
Procedure No. 2 Results
2A. Refer to Attachment B-1 for the list of transfers made by the former Redevelopment Agency to the
City of Lynwood after January 1, 2011 through January 31, 2012.
2B. Refer to Attachment B-1 for the list of transfers made by the Successor Agency to the City of Lynwood
after February 1, 2012 through June 30, 2012.
2C. Refer to Attachment B-1
Citation:
34179.5(c)(3) The dollar value of any cash or cash equivalents transferred after January 1,2011, through
June 30, 2012, by the redevelopment agency or the successor agency to any other public agency or
private party and the purpose of each transfer. The review shall provide documentation of any enforceable
obligation that required the transfer.
Procedure No. 3 Results
3A. Refer to Attachment B-2 for the list of transfers made by the former Redevelopment Agency to other
public agency or private party from January 1, 2011 through January 31, 2012.
3B. The Successor Agency asserted that there were no transfers made to any other public agency or
private party for the period from February 1, 2012 through June 30, 2012.
3C. Refer to Attachment B-2. All transfers made to other public agency or private party were supported by
legal documents that formed the basis for the obligation that required the transfer.
Citation
34179.5(c)(4) The review shall provide expenditure and revenue accounting information and identify
transfers and funding sources for the 2010-11 and 2011-12 fiscal years that reconciles balances,
assets, and liabilities of the successor agency on June 30, 2012 to those reported to the Controller
for the 2009-10 fiscal year.
Procedure No. 4 Results
Refer to Attachment B-3.
11
Attachment B
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Summary of Results
Citation:
34179.5(c)(5) A separate accounting for the balance for the Low and Moderate Income
Housing Fund and for all other funds and accounts combined shall be made as follows:
(A) Statement of the total value of each fund as of June 30, 2012.
Procedure No. 5 Results
The asset balances in Attachment B-4 were agreed to the trial balance of the remaining funds of the
Successor Agency as of June 30, 2012, without exception.
Citation:
34179.5(c)(5)(B) An itemized statement listing any amounts that are legally restricted as to
purpose and cannot be provided to taxing entities. This could include the proceeds of any bonds,
grant funds, or funds provided by other governmental entities that place conditions on their use.
Procedure No. 6 Results
6A.(i) Refer to Attachment B-5 for the computation of unspent bond proceeds as of June 30, 2012.
6A.(ii) The individual components of the calculation of unspent bond proceeds in Attachment B-5 were
traced to the general ledger and bond official statements.
6A.(iii) We obtained a copy of the bond official statements which sets forth the restriction on the use of the
proceeds.
6B & C. Management of the Successor Agency asserted that the assets of the remaining funds of the
Successor Agency as of June 30, 2012 did not include grant proceeds and other restricted assets.
6D. Refer to Attachment B-5
Citation:
34179.5(c)(5)(C) An itemized statement of the values of any assets that are not cash or cash
equivalents. This may include physical assets, land, records, and equipment. For the purpose of this
accounting, physical assets may be valued at purchase cost or at any recently estimated market
value. The statement shall list separately housing -related assets.
12
Attachment B
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Summary of Results
Procedure No. 7 Results
7A Refer to Attachment B-6.
7B The assets listed under 7A were traced and agreed to the trial balance of the remaining funds of the
of the Successor Agency as of June 30, 2012.
7C This procedure is not applicable. We did not note any differences in 7B.
7D This procedure is not applicable. The list includes accounts receivable, loans receivable, land held
for resale and due from the City of Lynwood. The land held for resale was recorded in the books at
acquisition cost.
Citation:
34179.5(c)(5)(D) An itemized listing of any current balances that are legally or contractually dedicated or
restricted for the funding of an enforceable obligation that identifies the nature of the dedication or
restriction and the specific enforceable obligation. In addition, the successor agency shall provide a listing
of all approved enforceable obligations that includes a projection of annual spending requirements to
satisfy each obligation and a projection of annual revenues available to fund those requirements. If a
review finds that future revenues together with dedicated or restricted balances are insufficient to fund
future obligations and thus retention of current balances is required, it shall identify the amount of current
balances necessary for retention. The review shall also detail the projected property tax revenues and
other general purpose revenues to be received by the successor agency, together with both the amount
and timing of the bond debt service payments of the successor agency, for the period in which the
oversight board anticipates the successor agency will have insufficient property tax revenue to pay the
specified obligations.
Procedure No. 8 Results
8A. Not applicable. Refer to Procedure 9.
8B. Not applicable.
8C. Not applicable.
8D. Not applicable.
Citation:
34179.5(c)(5)(E) An itemized list and analysis of any amounts of current balances that are needed
to satisfy obligations that will be placed on the Recognized Obligation Payment Schedules for the
current fiscal year.
Procedure No. 9 Results
Refer to Attachment B-7.
13
Attachment B
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Summary of Results
Citation:
34179.5(c)(6) The review shall total the net balances available after deducting the total
amounts described in subparagraphs (8) to (E), inclusive, of paragraph (5). The review shall add any
amounts that were transferred as identified in paragraphs (2) and (3) of subdivision (c) if an
enforceable obligation to make that transfer did not exist. The resulting sum shall be available for
allocation to affected taxing entities pursuant to Section 34179.6. It shall be a rebuttable presumption
that cash and cash equivalent balances available to the successor agency are available and
sufficient to disburse the amount determined in this paragraph to taxing entities. If the review finds
that there are insufficient cash balances to transfer or that cash or cash equivalents are specifically
obligated to the purposes described in subparagraphs (8), (D), and (E) of paragraph (5) in such
amounts that there is insufficient cash to provide the full amount determined pursuant to this
paragraph, that amount shall be demonstrated in an additional itemized schedule.
Procedure No. 10 Results
Refer to Attachment B-8.
14
Attachment B-1
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Schedule of Assets Transferred to the City of Lynwood
From January 1, 2011 through June 30, 2012
January 1, 2011 through January 31, 2011
Asset Value/Carrying
Description Date Transferred Amount Legal Requirements/ Purpose Comments
Cash 03/31/2011 $ 398,401 This represents reimbursement to theCityof This transfer is supported by an administrative cost
Lynwood for FY 2010-11 administrative costs agreement dated April 17, 1984 between the City of
paid bythe Cityforthe administration of the Lynwood and the Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 03/31/2011 219,682 This represents reimbursement to the City of This transfer is supported byan administrative cost
Lynwood for FY 2010.11 administrative costs agreement dated April 17, 1984 betweenthe Cityof
paid by the City forthe administration of the Lynwood and the Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Real Property 03/31/2011 1,674,429 This pertains to the tansferof several real The State Controller's Office, in its letterdated April
properties from the former redevelopment 20,2012, ordered the reversal of these assettransfers
agency to the City of Lynwood per City and return of the applicable assets back to the
resolution redevelopment agency. These assets were
subsequently transferred back to the redevelopment
agency by the City.
Cash 06/30/2011 636,063 This represents reimbursementto the City of This transferis supported by an administrative cost
Lynwood for FY 201011 administrative costs agreement dated April 17, 1984 between the City of
paid bythe Cityforthe administration of the Lynwood and the Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 06/30/2011 1,982,745 Reimbursement/return of funds loaned to the
CityCouncil Resolutionit 2010.093 dated May 4, 2010
Lynwood Redevelopment Agency by theCityof
approving the transfer of funds from the City of
Lynwood
Lynwood to the Lynwood Redevelopment Agency.
Cash 9/20/2011 65,000 " This pertains to a principal payment made under
This transfer is supported by a Cooperation
Cooperation Agreement
agreement dated September 7, 1999 for the purpose
of providing financial assistance in the amount of
$1,300,000 in that the agency could carry out its
Owner Participation Agreement with 3100 E. Imperial
Hwy, LLC.
Cash 9/20/2011 35,100This pertainsto interest payment made under
This transfer is supported by aCooperation
Cooperation Agreement
agreement dated September 7, 1999 forthepurpose
of providing financial assistance in the amount of
$1,300,000 in that the agency could carry out its
Owner Participation Agreement with 3100 E. Imperial
Hwy, LLC.
• The California Department of Finance disallowed this debt in a letter dated May 18, 2012. The City of Lynwood disagrees with the decision
and has requested to meet and confer with the Department of Finance.
15
Attachment B-1
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Schedule of Assets Transferred to the City of Lynwood
From January 1. 2011 through June 30. 2012
January 1, 2011 through January 31, 2012 (Continued)
Asset Value/Carrying
Description Date Transferred Amount Legal Requirements/ Purpose Comments
Cash 01/19/2012 $ 406,180 This represents reimbursement to the City of This transfer is supported by an admi nistrative cost
Lynwood for FY 2011-12 administrative costs agreement dated April 17, 1984 between the City of
paid by the City for the administration ofthe Lynwood and the Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 01/19/2012 30,892 This represents reimbursement to the Ctyof This transfer is supported byan administrative cost
Lynwood for FY 2011-12administrative costs agreement dated Apnl 17, 1984 betweenthe City of
paid bythe Cityforthe administration ofthe Lynwood andthe Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 01/19/2012 230,009 This represents reimbursement to the Cityof This transfer is supported byan administrative cost
Lynwood for FY 2011-12 administrative costs agreement dated April 17, 1984 between the Cityof
paid bythe Cityforthe administration of the Lynwood andthe Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 01/19/2012 18,491 This represents reimburse ment to the City of This transfer is supported by an ad min istrative cost
Lynwood for FY 2011-12 administrative costs agreement dated Aon 117, 1984 between the City of
paid by the City for the ad mini strati on of the Lynwood and the Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 01/31/2012 31,326 This represents reimbursement to the Cityof This transfer is supported byan administrative cost
Lynwood for FY 2011-12 administrative costs agreement dated Apri117, 1984 betweenthe City of
paid bythe Cityforthe administrationofthe Lynwood andthe Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
Cash 01/31/2012 18,376 This represents reimbursement to the Cityof This transfer is supported by an administrative cost
Lynwood for FY 2011-12 administrative costs agreement dated April 17, 1984 betweenthe Cityof
paid bythe Cityforthe administration of the Lynwood and the Lynwood Redevelopment Agency.
Lynwood Redevelopment Agency.
iG
Attachment B-1
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Schedule of Assets Transferred to the City of Lynwood
From January 1, 2011 through June 30, 2012
February 1, 2012 to June 30, 2012
Asset Date questionable
Description Transferred Amount Legal Requirements/ Purpose Comments Transfers
Cash 04/03/2012 $ 63,376 This re pre se his reimbursement to the City of Amount for falls under the administrative cost cap of
Lynwood for FY 2011-12 administrative costs pa id $314,672 approved by the Department of Finance
by theCity for the administration of the Agency. (DOF).
Cash
Cash
Cash
Cash
Cash
Cash
Cash
04/17/2012 63,262 Th is represents re mbursement to the City of Amount for falls under the administrative cost cap of
Lynwood for FY 2011-12 administrative costs paid $314,672 approved by the Department of Finance
by the City for the ad ministration of the Agency. (DOF(.
06/12/2012 32,341 This re pre sents reimbursement to the City of Amount for is 11 under the ad ministrative cost cap of
Lynwood for FY 2011-12 administrative costs paid $314,672 approved by the Department of Finance
bythe Cityforthe administration of the Agency. (DOF).
O6/30/2012 60,360 This represents reimbursement to the City of Amountfor falls under the administrative cost cap of
Lynwood for FY 2011-12 administrative costs paid $314,672 approved by the Department of Finance
bytheCltyforthe administration of the Agency. (DOF).
04/03/2012
04/17/2012
06/12/2012
06/30/2012
37,119 This represents reimbursementto the City of Amountfor falls under the administrative cost cap of
Lynwood for FY 2011-12administrative costs paid $314,672 approved by the Department of Finance
bythe Cityforthe administration of the Agency. (DOF(.
37,193 This represents reimbursement to the City of Amount for falls under the administrative cost cap of
Lynwood for FY 2011-12 administrative costs paid $314,672 approved by the Department of Finance
bythe Cityforthe administration of the Agency. (DOF).
18,596 This represents reimbursement to the City of Amountfor falls under the administrative cost cap of
Lynwood for FY 2011- 12administrative costs paid $314,672 approved by the Department of Finance
bytheCityforthe administration of the Agency. (DOF).
34,466 This represents reimbursement to the City of Exceeds administrative cost cap approved by the DOF 5 32,040
Lynwood for FY 2011-12 administrative costs paid by $32,040.
by the City for the administration of the Agency.
17
Attachment B-2
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Schedule of Assets Transferred to Other Public Agencies or Private Parties
From January 1, 2011 through June 30, 2012
Asset Date Value/Carrying
Description Transferred Amount Purpose Legal require me nVEnforce able Obligation
January 1, 2011 through January31, 2012
Cash 313112011 $ 664,714 Loan payment to Redmore, LLC Tax Increment loan payoff
Cash 313112011 333,000 Debt sevice payment for Series 1999 TAB Series B 1999 TAB Series B payment
Bonds
Cash 313112011 578,055 Debt sevice payment for Series 1999 TAB Series A 1999 TAB Series A payment
Bonds
Cash 313112011 75,392 Debt sevice payment for Series 1999 TAB- Alameda 1999 TAB Kameda Project Area payment
Project Area
Cash 313112011 596,448 Payment for bond issuance costs related for Series 2011 TAB Series Aissuance costs
2011 TAB Series A Bonds
Cash 313112011 278,875 Payment for bond issuance costs related for Series 2011 TAB Series B issuance costs
2011 TAB Series B Bonds
Cash
111912012
306,713
Debt service payment to Housing and Man
HUD loan repayment
Development (11r0)
Cash
81212011
296,000
Debt sevice payment for Series 1999 TAB Series B
1999 TAB Series B payment
Bonds
Cash
81212011
565,528
Debt sevice payment for Series 2011 TAB Series A
2011 TAB Series A payment
Bonds
Cash
81212011
240,984
Debt sevice payment for Series 2011 TAB Series A
2011 TAB Series Apayment
Bonds
Cash
81212011
60,191
Debt sevice payment for Series 1999 TAB- Alameda
1999 TAB Alameda Project Area payment
Project Area
Land
1211912011
638,505
Sale of Land to Fresh and Easy Property Company
This vas supported by Disposition and Development
LLC
Agreement dated June 7, 2011 entered between the
Lynwood Redevelopment Agency and Fresh and
Easy Property Company, LLC.
Cash
113112012
591,087
Debt sevice payment for Series 2011 TAB Series A
2011 TAB Series A payment
Bonds
Cash
113112012
253,080
Debt sevice payment for Series 1999 TAB Series A
1999 TAB Series A payment
Bonds
Cash
113112012
23,058
Debt sevice payment for Series 1999 TAB- Alameda
1999 TAB Alameda Project Area payment
Project Area
M
Attachment B-3
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Funds Combined
Summary of Financial Transactions
(8) Financial information for the seven-month ended January 31, 2011 for the Redevelopment Agency was traced to
the accounting records.
(C) Financial information for the period covering February 1, 2012 through June 30, 2012 for the Successor Agency
was traced to the accounting records.
11H
Redevelopment
Redevelopment
Redevelopment
Successor
Agency
Agency
Agency
Agency
12 Months Ended
12 Months Ended
7
Months Ended
5
Months Ended
6/30/2010
6/30/2011
1/31/2012
6/30/2012
(Audited)
(Audited)
(Unaudited)
(Unaudited)
Assets (modified accrual basis)
Cash and investments
$ 4,664,301
$ 12,095,376
6,310,569
7,918,669
Cash and investments vdth trustees
1,138,960
19,588,616
19,578,241
19,581,373
Restricted cash and investments
58,082
58,082
58,082
58,079
Receivables:
Taxes
224,317
321,747
-
-
Accounts
5,589
11,156
5,062
6,062
Interest
2,222
2,503
-
-
Notes and loans
1,969,962
1,253,582
1,364,852
1,341,591
Land held for resale
7,436,181
8,602,336
8,602,336
1,998,601
Due from other funds
353,198
222,997
-
-
Due from the City of Lynwood
957,380
957,380
957,380
957,380
Total Assets
$ 16,810,192
$ 43,113,775
$
36,876,522
$
31,861,755
Liabilities (modified accrual basis)
Accounts payable
$ 1,722,327
$ 2,772,492
2,027,721
1,798,616
Deposits
77,717
87,498
-
-
Deferred Revenue
1,969,962
1,311,664
1,352,936
1,329,671
Due to other funds
353,198
222,997
-
-
Due to other government
248
-
-
-
Total Liabilities
$ 4,123,452
$ 4,394,651
$
3,380,657
$
3,128,287
Equity
12,686,740
38,719,124
33,495,865
28,733,468
Total Liabilities + Equity
$ 16,810,192
$ 43,113,775
$
36,876,522
$
31,861,755
Total Revenues:
$ 6,928,482
$ 8,212,798
$
3,017,260
$
2,632,214
Total Expenditures:
7,785,595
5,808,380
8,240,519
7,394,611
Total Transfers: In (Out)
-
23,627,966
-
Net change in equity
(857,113)
26,032,384
(5,223,259)
(4,762,397)
Beginning Equity:
13,543,853
12,686,740
38,719,124
33,495,865
Ending Equity:
$ 12,686,740
$ 38,719,124
$
33,495,865
$
28,733,468
Other Information (show year end balances
for all three
years presented):
Capital assets as of end of year
$ 2,357,359
$ 1,027,501
$
1,027,501
$
388,996
Long-term debt as of end of year
$ 13,513,437
$ 36,465,157
$
36,465,157
$
36,465,157
(A) Financial information for fiscal years
June 30, 2010 and June
30, 2011 was traced to the the Audited
Financial
Statements of the former Redevelopment
Agency.
(8) Financial information for the seven-month ended January 31, 2011 for the Redevelopment Agency was traced to
the accounting records.
(C) Financial information for the period covering February 1, 2012 through June 30, 2012 for the Successor Agency
was traced to the accounting records.
11H
Attachment B-4
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
List of Assets
As of June 30, 2012
Asset Type
Cash
Restricted cash
Cash with fiscal agent
Accounts receivable
Loans receivable
Land held for resale
Due from City of Lynwood
Total
Amount
7,167,133
58,079
19,581,373
6,062
174,772
1,082,893
957,380
$ 29,027,692
20
Attachment B-5
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Calculation of Legally Restricted Balances- Unspent Bond Proceeds
June 30, 2012
Bond Proceeds - TAB 2011 Series A $ 18,480,000
Less: Payments"
Bond Issuance Costs (3/31/2011) $ (596,448)
Interest income 11,585 (584,863)
Unspent bond proceeds - June 30, 2012 - TAB 2011 Series A 17,895,137
Bond Proceeds - TAB Series 2011 B 5,660,000
Less: Payments "
Bond Issuance Costs (3/31/2011) (278,875)
Project Costs (7/1/2011- 6/30/2012) (3,000,000)
Interest Income 957 (3,277,918)
Unspent bond proceeds - June 30, 2012 - TAB 2011 Series B 2,382,082
Total unspent bond proceeds $ 20,277,219
` Traced and agreed amounts to bond official statements, without exception.
" Traced amounts to general ledger postings.
The restriction on the above unspent bond proceeds are in effect until the funds are expended for their intended use.
The Series 2011 Series A and B bonds above were issued on March 7, 2011. The use of the bond proceeds for the
intended purpose was disallowed by the Department of Finance in a letter dated May 18, 2012 as the bonds were
issued after the deadline of December 31, 2010 as stated in Assembly Bill 1484. The City has requested to meet and
confer with the Department of Finance in an effort to seek a waiver so that the proceeds can be used for their intended
purpose.
21
Attachment B-6
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
List of Assets That Are Not Cash or Cash Equivalents
As of June 30, 2012
Asset Type
Accounts receivable
Loans receivable
Land held for resale
Due from City of Lynwood
Total
22
Amount
6,062
174,772
1,082,892
957,380
2,221,106
Attachment B-7
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Calculation of Current Balances Needed to Satisfy Obligations on the ROPS
ROPS III- Attachment in Excel
23
Attachment B-8
Successor Agency to the Dissolved Redevelopment Agency of the City of Lynwood
All Other Funds
Summary Of Balances Available For Allocation to Affected Taxing Entities
As of June 30, 2012
SUMMARY OF BALANCES AVAILABLE FOR ALLOCATION TO AFFECTED TAXING ENTITIES
Total amount of assets held by the Successor Agency as of June 30, 2012 (procedure 5)
$ 29,027,692
Add the amount of any assets transferred to the City or other parties for which an enforceable
obligation with a third party requiring such transfer and obligating the use
of the transferred assets did not exist (procedures 2 and 3)
32,040
Less assets legally restricted for uses specified by debt covenants, grant restrictions, or restrictions
imposed by other governments (procedure 6) - Attachment B-5- Unpsent Bond Proceeds
(20,277,219)
Less assets that are not cash or cash equivalents (e.g., physical assets) - (procedure 7)
(2,221,106)
Less balances that are legally restricted for the funding of an enforceable
obligation (net of projected annual revenues available to fund those obligations) - (procedure 8)
-
Less balances needed to satisfy ROPS for the 2012-13 fiscal year (procedure 9)
(6,561,407)
Less the amount of payments made on July 12, 2012 to the County Auditor -Controller as
directed by the California Department of Finance
-
Amount to be remitted to county for disbursement to tapng entities
24