HomeMy WebLinkAboutResolution No. OB-13-12RESOLUTION NO. O B -13 -12
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCYTOTHE FORMER REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA APPROVING THE DUE DILIGENCE REVIEW OF THE
LOW AND MODERATE INCOME HOUSING FUND CONDUCTED
PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.5
WHEREAS, pursuant to Health and Safety Code Section 34175(b) and the California
Supreme Court's decision in California Redevelopment Association, et al. v. Ana Malosantos,
et al. (53 CalAth 231(2011)), on February 1, 2012, all assets, properties, contracts, leases,
books and records, buildings, and equipment of the former Redevelopment Agency transferred
to the control of the Successor Agency to the former Redevelopment Agency ("Successor
Agency') by operation of law.
WHEREAS, Health and Safety Code Section 34179.5 requires the Successor Agency to
employ a licensed accountant, approved by the county auditor -controller, to conduct a due
diligence review ("DDR") to determine the unobligated balances available for transfer to taxing
entities.
WHEREAS, Health and Safety Code Section 34179.6 requires the Successor Agency
to submit the results of the review conducted pursuant to Section 34179.5 for the Low
and Moderate Income Housing Fund ("LMIHF") and specifically the amount of cash and
cash equivalents determined to be available for allocation to taxing entities to the Successor
Agency's Oversight Board ("Board") for the Board's review and approval.
WHEREAS, Pursuant to Health and Safety Code Section 34179.6(6), upon receipt of
the DDR, and at least five business days before the Board considers the approval of the DDR,
the Board must hold a public comment session (the "Public Comment Session") at which time
the public has an opportunity to hear and be heard on the results of the DDR.
WHEREAS, at its October 4, 2012 special meeting, the Oversight Board opened public
comment on the Successor Agency LMIHF DDR and continued the open public written
comment period until the October 11, 2012 special meeting of the Oversight Board.
WHEREAS, Health and Safety Code Section 34179(e) requires all actions taken by the
Oversight Board shall be adopted by resolution.
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, the Oversight Board of the Successor Agency to the former
Redevelopment Agency of the City of Azusa does hereby resolve as follows:
Section 1. Recitals. The above recitals are true and correct and are a substantive part of
this Resolution.
Section 2. Approval of LMIHF Due Diligence Review. The Oversight Board hereby
approves the Low and Moderate Income Housing Fund Due Diligence Review submitted by
the Successor Agency on October 4, 2012, after opening public comment from October 4, 2012
through October 11, 2012.
Section 3. Implementation. The Oversight Board hereby directs that copies of this Resolution
be submitted to the Los Angeles County Auditor -Controller, the California State Controller's
Office and the California State Department of Finance.
Section 4. Effectiveness. Pursuant to Health and Safety Code Section 34179(h), all actions
taken by the Oversight Board, may be reviewed by the California Department of Finance, and
therefore, this Resolution shall not be effective for five (5) business days, pending a request for
review by the California Department of Finance.
APPROVED AND ADOPTED THIS 11th DAY OF OCTOBER, 2012.
Robe Gonza es, Q6air
Oversight Board
Successor Agency to the Former Redevelopment Agency of the City of Azusa
ATTEST:
J ana Hernandez, Acting Assistant City Clerk
Oversight Board
Successor Agency to the Former Redevelopment Agency of the City of Azusa
I HEREBY CERTIFY that the foregoing Resolution No. OB -13-12 was duly adopted by
the Board Members of the Oversight Board of the City of Azusa at a special meeting thereof on
the 11th day of October 2012, by the following vote of Board Members:
AYES: BOARD MEMBERS: GONZALES, FRICK, PARAGAS, ROMERO, WOODS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ENGLUND, LOWE
ana Hernandez, Acting Assistant City Clerk
Oversight Board
Successor Agency to the Former Redevelopment Agency of the City of Azusa
EXHIBIT A
LOW TO MODERATE INCOME HOUSING FUND DUE DILIGENCE REVIEW DRAFT
REPORT
[Attached behind this page]
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California'.!,;
Low and Moderate Income'Housim¢ Fund
Agreed -Upon Procedure "Enga,
Pursuant to Assemlly Bill 1
TO REWSIONRI( TO
NIISSION °OF IN/W RE PORT.
F RETURNED TO SEUPSON &
1IKPSONX—r4D NOT TO BE
ODUCED OIt'bISTRIBUTED IN
N3 ,FO*M ATMOUT OUR
AkI MISSION.
,°YERSI616'(9/27 3:30 pm)
a
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
Table of Contents
Independent Accountant's Report on Applying Agreed -Upon Procedures
Exhibit A - Agreed -Upon Procedures and Results
Exhibit B - Listing of All Assets of the Low and Moderate Income Housing Fund
as of June 30, 2012 17
Exhibit C - Listing of Assets that are Not Liquid
18
Exhibit D - Recognized Obligation Payment Schedules (ROPS) II1 19
Exhibit E - Summary of Balances Available for Allocation to Affected Taxing
Entities as of June 2012
Rol
Exhibit A
Oversight Board of the
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Independent Accountant's Report on Applying Agreed -Upon Procedures
We have performed the agreed-upon procedures enumerated in Exhibit A, which was generally agreed to
by the California State Controller's Office, Department of Finance, and the Successor Agency to the
Former Redevelopment Agency of the City of Azusa, Califoinia(Successor Agency, City of Azusa),
solely to assist you in ensuring that the Successor Agency 6y of,Azusa is complying with its statutory
requirements with respect to AB 1484. Managementi.of the Successor Agency, City of Azusa is
responsible for the Listings, Summary, and Scheduie!iin Exhibits B, C, D, and E and the accounting
records pertaining to statutory compliance pursuant to AB 1484. Thi"s';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 theiresponsibility of those
parties specified in the report. Consequently, we make notepreseetation regarding'ihe sufficiency of the
procedures described in Exhibit A eitheiJor the purpose fortwhich this report has been requested or for
any other purpose.
The scope of this engagement was limited toiperforining the agreed-upon procedures at your direction as
set forth in Exhibit A. Exhibit Aiidentifies the findings noted as.a result,of the procedures performed.
Exhibits B, C, D and E_;'col fisted of Listings, Summary!and Schedule that were prepared in accordance
with Health and Safety C de!Sectionsi 34179.5(c)(*... ough 34179.5(c)(6).
.
We were not:engaged to and dtd; of o ductian audit the objective of which would be the expression of
an th on on`the Zistings, Sum layy and Sch ule in Ei hibit B, C, D, and E or as to the appropriateness
of the results summarized in Exhibit A. Ace0T we do not express such an opinion. Had we
perform' j'additional procediii•es, otherimatters rmght have come to our attention that would have been
reported to'you:, ql r,,,
This report is intended solely for, .,he information and use of the California State Controller's Office,
Department of Finance §County 4Los Angeles and the Successor Agency to the Former Redevelopment
Agency of the City of Azusa, Celik3rnia, and is not intended to be, and should not be used by anyone
„
other than these specified a es.,' ,Phis restriction is not intended to limit distribution of this report, which
is a matter of public record.
Los Angeles, California
September 27, 2012
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
Obtain from the Successor Agency a listing of all assets (Low and Moderate Income Housing Fund
only) that were transferred from the former redevelopment agency to the Successor Agency on
February 1, 2012. Agree the amounts on the listing to account balances established in the accounting
records of the Successor Agency. Identify the amount of the assets transferred to the Successor
Agency as of that date.
Result
The Successor Agency, City of Azusa has represented to us that the Low & Moderate Income
Housing Fund (LMIHF) assets have not been transferred to the Successor Agency, City of Azusa as
of the date of this agreed-upon procedures report.
Per Resolution No. 12-C7 dated January 23, 2012, the City of Azusa declined assuming the housing
assets and functions of the former redevelopment agency. On July 26, 2012, the Oversight Board of
the Successor Agency, City of Azusa adopted the Resolution No. OB -07-13, directing the transfer of
housing assets and functions to the Housing Authority of the County of Los Angeles. However, the
transfer has not taken place due to issues arising over titles. The Successor Agency, City of Azusa is
still waiting for further clarification.
The Successor Agency, City of Azusa provided us with the trial balance of the LM1HF (Fund 81)
and a listing of all assets of the LMRIF as of February 1, 2012. We agreed the amounts on the listing
to account balances in the trial balance of Fund 81. No exceptions were found as a result of applying
the procedure.
Assets
Balance as of
February I, 2012
Cash
$ 128.924
Notes Receivable/Deferred Loans
1,082,880
Land Held for Resale
12,898,382
Total Assets for Fund 81
$ 14,110,186
4
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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:
Result
The Successor Agency, City of Azusa has represented to us that the State Controller's Office has not
completed its review of transfers required under both Sections 34167.5 and 34178.8; therefore, we
performed procedures 2.A, 2.13, and 2.C.
A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
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.
Result
The Successor Agency, City of Azusa, has represented to us that there were no transfers
(excluding payments for 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; therefore, the procedure was not performed.
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.
Result
The Successor Agency, City of Azusa, has represented to us that there were no transfers
(excluding payments for goods and services) from the Successor Agency, City of Azusa to the
City, county, or city and county that formed the redevelopment agency for the period from
February 1, 2012 through June 30, 2012; therefore, the procedure was not performed.
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly,Bil1 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
The Successor Agency, City of Azusa, has represented to us that there were no transfers
(excluding payments for goods and services); therefore, the procedure was not performed.
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:
The Successor Agency, City of Azusa has represented tb us that the State Controller's Office has not
completed its review of transfers required under both Sections 34167.5 and 34178.8); therefore, we
performed procedures 3.A, 3.13, and 3.C.
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.
Result
The Successor Agency, City of Azusa, has represented to us that there were no transfers
(excluding payments for 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;
therefore, the procedure was not performed.
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
The Successor Agency, City of Azusa, has represented to us that there were no transfers
(excluding payments for services) from the Successor Agency to any other public agency or
private parties for the period from February 1, 2012 through June 30, 2012; therefore, the
procedure was not performed.
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.
Result
The Successor Agency, City of Azusa, has represented to us that there were no transfers
(excluding payments for goods and services); therefore, the procedure was not performed.
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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 this summary schedule for information purposes.
B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers
accounts fully for the changes in equity from the previous fiscal period.
C. Compare amounts in the schedule 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 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.
Result
The result will be presented in the Agreed -Upon Procedures Report for All Other Funds of the
Successor Agency, City of Azusa, which is due on December 15, 2012.
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. 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.
Result
We obtained a listing of all assets of the LMII-IF as of June 30, 2012 and we agreed the assets
listed to the trial balance of Fund 81 as of June 30, 2012. No exceptions were found as a result of
applying the procedure. The listing of all assets of the LMIHF as of June 30, 2012 is in Exhibit B.
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
The Successor Agency, City of Azusa, has represented to us that there are no asset balances held
on June 30, 2012 that are restricted for unspent bond proceeds; therefore, the procedures were not
performed.
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.
Result
The Successor Agency, City of Azusa, has represented to us that there is no asset balances held
on June 30, 2012 that are grant proceeds and program income restricted by third parties; therefore.
the procedures were not performed.
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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 the Successor Agency as
restricted.
Result
The Successor Agency, City of Azusa, has represented to us that there are no asset balances
held on June 30, 2012 that are considered to be legally restricted; therefore, the procedures
were not performed.
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
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.
Result
Procedures 6.A, 6.13, and 6.0 were not performed; therefore, procedure 6.13 is not applicable.
10
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
We obtained a listing of non -liquid assets as of June 30, 2012. The Successor Agency, City of
Azusa has represented that these non -liquid assets were recorded at cost. The listing of non -
liquid assets as of June 30, 2012 is presented in Exhibit C.
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.
Result
The land held for resale balance at June 30, 2012 agreed with the amounts in the previously
audited financial statements as of June 30, 2011. The notes receivable/deferred loans balance at
June 30, 2012 is $23,236 less than the previously audited financial statements as of June 30, 2011.
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.
Result
The difference in notes receivable/deferred loans balance noted in procedure 7.b. is due to the
receipt of principal repayment for one of the loans. The amount was received prior to the
dissolution of the RDA as evidenced by a bank deposit dated September 27, 2011. The proceeds
in the amount of $19,500.72 were deposited into the former RDA's cbecking account. The
remaining difference of $3,735 was recorded as a loan write-off.
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
The assets are listed at costs, not estimated market value; therefore, the procedure was not
performed.
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 (resources)
as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and
perform the following procedures. The schedule 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 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 Schedule 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 unable to provide
appropriate restricting language in the legal document associated with the enforceable
obligation.
Result
The Successor Agency, City of Azusa has represented to us that they do not believe that assets
balances need to be retained to satisfy enforceable obligations; therefore, the procedures were not
performed.
12
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484 -
AGREED-UPON PROCEDURES AND RESULTS
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.
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 theprojections.
Result
The Successor Agency, City of Azusa has represented to us that they do not believe 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; therefore, the procedures were not performed.
13
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
The Successor Agency, City of Azusa has represented to us that they believe that projected
property tax revenues and other general purpose revenues to be received by the Successor
Agency are sufficient to pay future bond debt service payments; therefore, the procedures were
not performed.
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.
i. 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.
Result
Procedures &A, 83 and 8.0 were not performed; therefore, procedure 8.D is not applicable.
14
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
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.
Result
The Successor Agency, City of Azusa has represented to us that cash balances as of June 30, 2012
need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (BOPS)
III for the period of January 1, 2013 through June 30, 2013. See ROPS III in Exhibit D.
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).
Result
We performed the procedure and the result is presented in Exhibit E.
The Successor Agency, City of Azusa has represented to us that they have elected not to recognize a
deduction for the amount paid to the County Auditor -Controller in regards to the Low and Moderate
Income Housing Fund. The amount paid will be deducted from the All Other Funds calculation.
15
Exhibit A
Exhibit A
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
AGREED-UPON PROCEDURES AND RESULTS
ll. Obtain a representation letter from Successor Agency management acknowledging their
responsibility for the data provided to the practitioner and the data presented in the report or in any
attachments to the report. Included in the representations should be an acknowledgment that
management is not aware of any transfers (as defined by Section 34179.5) from either the former
redevelopment agency or the Successor Agency to other parties for the period from January 1,
2011 through June 30, 2012 that have not been properly identified in the AUP report and its
related exhibits. Management's refusal to sign the representation letter should be noted in the AUP
report as required by attestation standards.
Result
We obtained a representation letter from the Successor Agency, City of Azusa.
16
MIMISIsT
Exhibit B
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
LISTING OF ALL ASSETS OF THE LOW AND MODERATE INCOME HOUSING FUND
As of June 30, 2012
Cash $ 128,924
Notes Receivable/Deferred Loans 1,082,880
Land Held for Resale
17
12,898,382
$ 14,110,186
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
LISTING OF ASSETS THAT ARE NOT LIQUID
As of June 30, 2012
Notes Receivable/Deferred Loans
Land Held for Resale
M.
Exhibit A
Exhibit C
$ 1,082,880
12,898,382
$ 13,981,262
Exhibit U
Name of Successor Agenry^, §uwn or F—.r R.tl.val M ASs,,j 11. ayM
Geunty. Ce.r 01,e1 AN." O mss. Oe.N Agwvl Dm JUNxe.}tll]
RECOGNIZED OBLIGATION PAYMENT SC NEDGLE )ROPS 111)
Jan.. i. 2013 thWwh Jun. 30. 2013
1.0 P Nam I 0 ORn
C.M,aWA0l.,wI
E..Wa mi.
CsnsaFVAIPWmsns
T.m1--B DnI.
^
0 a aavP eFl9
i
TOW
O,namem0
Debtar
TOdl Due
Daunt)
M.1 Y.
I - LMIN
Funding Source
Gell,] Rmaee Admin
PmaOdL Bala^e. All .. RPTrF Oda
Sh-Men31
total
F-51,er, Cash
lSea+f}
Ob a9en Im taneln
Gn Mel
1 M.1101.403
3 ! ]WI
3 sw's" wage." S.
SSSn1001
1
11v ARebraeY121104004
t N
%NM4.A TA 9oY.
.Wu`a
NCA
N
0
Ah�r1MN.
12114,W,1INW]
]
IM .
J
McaDM`1E
mLa]
I Ire]
eW+
In"MY
MCBDawE
nZ
I's,Ttz
Lv FW
VIII ]
L
IMe M Sb
MCBWME
J.111,
MM
11.1,
wea
5 L F ..
1 00
11MI73
L MwYrr
NCBWWE
]
MAI
27,113,
ens. Wtl Mee.
'loam
6130 5
ttiset..
AhAMIrz a
MCBDSM
lakra,
vuaa
}lee
P.hM teal
ILIRW3
VMWO
RelrrdA mNNW RFI CCPe
MCBDBWE
VAS We
M 50
Muel Odq+
".n.,
w10]
b.n
}WS Wnae9 iA Bente
MCBDSWB
m.Is We
J] IN
172,104
412.1.
lee . fit
O In Abalbn Ber4e
711"M?
WIeWG
a.M1 M.
2.16M+ATFa Alcaum Ba i
w..',aE
IA2e0.M
4MG27
117621SI
ee]
to Tv Nb .BUN.
1,31/2007
Nmaw
11etle
eW]8eML0Tee Abulbn Beetle
MCBDSWE
L.O.wo
I12OOL
Moss
1 A
fl ee
I on
01]MJa11
5 aIInF
ArCXn aM.fnfcreorN.
MCBDIM
0.10,
'7'
na
7,5
12 P •
e11NJ01
S JOM
T..Innnses..Sa.a
MCSDSwe
W
!
1 Cen S.Mm
WIMO.2
Nyyt] a
a hmi
Au1LeNNH.
MCBDSwE
160W
1am
Mae,
IOSW
14 ESAM WFFFEIMS4MnL
Imal
8.mei .O
AN.eb FUMae Fitlun BE b.neela
SKBDSWB
e
J
M6
] 3
IS CeNr.rl Punlvv OMr
OM20i3
E41.Scmeeag
We
%y
300
leL el5enlw- tt- n nr/bn
NIVMte
SAMITO13
.4 Dest &tu
.ICounvl
MCI)IM
Upeas
WPM
an=
11 Conal yrM.e.
01I142012
NJNYJI]
IM n FznL
BarN DOm.ueF
MCBDSWE
IOIXa
0
Ie B AaminlUnfnh
SH 01
a"PRISS
Mae,F.Mo BM
IrutlMMMbOMbn Ui
LICBDAI4E
12.W
5.
AM
is,
IS SEW FY 2010-11 Leen
molt
Lkiswmw.
FY 101LL118ERAF P.,,,. . lYL
MCBDSM
Mits
1 tea10104
1]
xO un m .m 0.
a
MWern3
un.m .an.m mtlemremwenw.
MCBDawe
1121050
e0,150
t N.N , r +IIMFn
IWI
e130201e
meM wr
LOX-LLtl Inmos Neuy .Mau
MCBoeWE
9,161,
M044.e
3a eLL
MmOLa,11,e APmaW
111701eMD20
SUalml MmIN.IMM AFeulbn
MCBDJWE
13110]
1}I IW
1 11 ]
] PF Pesml
Ague
R.wm brJ, WI]Oaoel M!wMa.M•
MCBDSWE
1Le
14 310
1431m
/
'L4a
Is 100E d, en
el]tl103e
0,30,2014
tom.N WWr
e5-V.n leant NX. -Renta
WnchC
.
11
23 cit, —~ fn OaN
)!I)1 f
IM
,—
1,300 APFA BaMLaeeaLunOneOMn
R.mh Cwner
12111.
'Ittew
1M
a
0 LSWEM Lom
w
IM
'MMwebr
Ae1wmN..IuaNlblrryve+emml.
n.rd+4e.r
1e WL
leeN
oM
11 SEWFYWIOtI ee
II
NINISIO
Lem .N We
FY A1611 SEW P. to 344
Waal Ctla
OWt
0031
•Wf
5 A,t. Aaw
I
N]4'MI]
9uCL.MOr n Adniitlee.OV Abufn
RerKn C.aln
b)
e31
LO Let
S OL
11) The Succes3or Agency, City of Amaa. Ila, represented to to that ash halances as of hem 30, 2012 are needed to be retained to setisry the required debt service payment, for the Housing Tax Allocation Roads
Series 20088 due Feb.,, 2011 The Sueecsor Agauy s e.pmt,ti.n is for the Low and MmIamse 111. Iioming muunna to receive RPTTF in the amount of S241.179.401ogethe, with the ash balaxe retained off 129.924 B) pay
for the mWired debt service installment.
1
19
Exhi&7kMkbit E
Successor Agency to the
Former Redevelopment Agency of the
City of Azusa, California
Low and Moderate Income Housing Fund
Agreed -Upon Procedures Engagement
Pursuant to Assembly Bill 1484
SUMMARY OF BALANCES AVAILABLE FOR ALLOCATION TO AFFECTED TAXING'ENTITIES
As of June 30, 2012
Total amount of assets held by the successor agency as of June 30, 2012 (procedure 5) (see Exhibit B) $ 14,110,186
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)
Less assets legally restricted for uses specified by debt
covenants, grant restrictions, or restrictions imposed by other
governments (procedure 6)
Less assets that are not cash or cash equivalents (e.g. physical assets) - (procedure 7) (see Exhibit C) (13,981,262)
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) (See Exhibit D) (128,924)
Less the amount of payments made on July 12, 2012 to the County Auditor -Controller as
directed by the California Department of Finance (1)
Amount to be remitted to county for disbursement to taxing entities s (0)
Note that separate computations are required for the Low and Moderate Income Housing Fund held by the
Successor Agency and jar all other funds held by the Successor Agency.
NOTES: For each line shown above, an exhibit should be attached showing the composition of the summarized amount.
If the review finds that there are insufficient funds available to provide the full amount due, the cause of the insufficiency
should be demonstrated in a separate schedule.
20