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HomeMy WebLinkAboutRDA Financial Statements and Audit FYE 06-30-1986 • CITY COUNCIL ACTION:DENIEDA: PROVED - RECL"IVteD1 OTHER ES: -CITY OF P A L1I D E S E R T __ . ------------------ I NTEROFF I CRBI$QWIP Nt.)11 1._.._._ ----- VERIFIED b' : ,----- Clerk' s Of: Original on File with City November 25 , 1 c+86 TO: Chairman and Members of the Board FROM: Kirby Warner , Director of General Services SUBJECT: FY 1985-86 Financial Statements and Audit RECOMMENDATION ; Receive and file annual audit report for fiscal year ended June 30 , 1986 . DISCUSSION: The Redevelopment Agency financial statements and audit report are attached for your review. The Agency continues to exhibit significant financial growth and capabilities . This is evidenced by the tax allocation bond issues which were completed during the 85-86 fiscal year for the purpose of completing a great number of needed projects . The Agency' s independent audit firm, Thomas , Byrne & Smith , has given an unqualified favorable opinion to the Agency . This indicates a high level of confidence in the internal control procedures , accounting functions and compliance efforts of the Agency' s operations . Respectfully Submitted , Reviewed and Concur , 2&SeN —Cla-t4i.,-..„ (1,Alir — Kirby J . arner Carlos L . Ortega Director of General Services Executive Director KJW : dm REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA AUDIT REPORT Year Ended June 30, 1986 TABLE OF CONTENTS Page Number I. Auditor's Report II. General Purpose Financial Statements Exhibit 1 - Combined Balance Sheet - All Fund Types and Account Groups 1 Exhibit 2 - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2 Exhibit 3 - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 3 Notes to Financial Statements 4 - 7 III. Supplemental Information Schedule 1 - Statement of Long-Term Obligations 8 General Information 9 THOMAS, BYRNE & SMITH AN ACCOUNTANCY CORPORATION CERTIFIED PUBLIC ACCOUNTANTS Donald L.Thomas,C.P.A. September 16, 1986 D.Richard Byrne.C.P.A. P 4362 Orange Street V.C.Smith,Jr.,C.P.A. Riverside,California 92501 Allen C.Harrison,C.P.A. (714)682-4851 Board of Directors Redevelopment Agency of the City of Palm Desert, California Palm Desert, California We have examined the general purpose financial statements of the Redevelopment Agency of the City of Palm Desert, California as of June 30, 1986, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the general purpose financial statements referred to above present fairly the financial position of the Redevelopment Agency of the City of Palm Desert, California at June 30, 1986, and the results of its operations and changes in fund balances for the year then ended, in conformity with generally accepted accounting principles as well as accounting systems prescribed by the State Controller's Office and state regulations governing special districts applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the Redevelopment Agency of the City of Palm Desert, California. This information has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. In connection with our examination, we also performed tests of compliance as required by California Health and Safety Code Section 33080.1 and the Guidelines for Compliance Audits of California Redevelopment Agencies issued by the California State Controller's Office dated July, 1985. Based on the auditing procedures in the aforementioned Compliance Audit Guidelines, we noted no instance of non-compliance with the laws, regulations and administrative requirements governing special activities of the Agency for the year ended June 30, 1986. THOMAS, BYRNE & SMITH An Accountancy Corporation 14,40/ie By: D. Richard Byrne REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS EXHIBIT 1 June 30, 1986 Account Groups Totals Governmental Fund Types General (Memorandum Only) Capital Special Debt General Long-Term June 30, Project Revenue Service Fixed Assets Obligations 1986 1985 ASSETS Cash $17,424,674 $2,231,948 $1,273,689 $ $ $20,930,311 $10,602,210 Cash With Fiscal Agent 2,422,369 4,954,124 7,376,493 Interest Receivable 303,325 31,748 39,277 374,350 210,760 Due From Other Governmental Agencies 2,552,266 13,266 134,910 2,700,442 Land 6,125,000 6,125,000 Resources to be Provided for Future Long-Term Obligations 40,673,195 40,673,195 15,447,840 Debt Service Funds Available 6,071,805 6,071,805 3,502,160 Total Assets $22,702,634 $2,276,962 $6,402,000 $ 6,125,000 $46,745,000 $84,251,596 $29,762,970 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 548,944 $ $ $ $ $ 548,944 $ 176,142 Deposits 19,242 19,242 7,000 Due To Other Governmental Agencies 330,195 330,195 246,133 Tax Allocation Bonds Payable 44,135,000 44,135,000 14,150,000 Loans Payable 2,610,000 2,610,000 4,800,000 Total Liabilities 568,186 - 0 - 330,195 - 0 - 46,745,000 47,643,381 19,379,275 Fund Equity Investment in General Fixed Assets 6,125,000 6,125,000 Fund Balances Reserved for Encumbrances 1,278,828 1,278,828 571,225 Reserved for Debt Service 6,071,805 6,071,805 3,502,160 Reserved for LMI Housing 2,276,962 2,276,962 1,469,803 Reserved for Specific Capital Projects and Programs 10,543,932 10,543,932 30,806 Unreserved Designated for Specific Capital Projects and Programs 10,311,688 10,311,688 4,809,701 Total Fund Balances 22,134,448 2,276,962 6,071,805 6,125,000 - 0 - 36,608,215 10,383,695 Total Liabilities and Fund Balances 822,702,634 $2.276.962 $6,402,000 $ 6.125,OQ0 $46,745,000 $84,251,$j6 $29,762.970 The accompanying notes are an integral part of this statement. - 1 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES EXHIBIT 2 Year Ended June 30, 1986 Totals (Memorandum Only) Capital Special Year Ended June 30, Project Revenue Debt Service 1986 1985 Revenues Tax Increment $ $ 660,389 $ 5,202,687 $ 5,863,076 $ 4,735,296 Intergovernmental Revenues 134,243 134,243 66,947 Interest Income 1,419,355 146,770 698,900 2,265,025 998,371 Other Income 12,413 12,413 24 Total Revenues 1,431,768 807,159 6,035,830 8,274,757 5,800,638 Expenditures Administrative Costs 157,281 157,281 126,095 Professional Services 70,209 70,209 26,632 Planning, Survey and Design 20,000 20,000 49,340 Real Estate Purchases 6,125,000 6,125,000 Project Improvement Costs 4,156,811 4,156,811 1,261,667 Interest Expense 2,592,701 2,592,701 1,679,926 Long-Term Obligation Principal Payments 18,950,000 18,950,000 4,450,000 Total Expenditures 10,529,301 - 0 - 21,542,701 32,072,002 7,593,660 Excess of Revenues Over (Under) Expenditures (9,097,533) 807,159 (15,506,871) (23,797,245) (1,793,022) Other Financing Sources (Uses) Operating Transfers In (Out) (1,936,774) 1,936,774 Loan Proceeds 2,610,000 2,610,000 2,500,000 Sale of Tax Allocation Bonds 23,361,700 2,913,300 26,275,000 Sale of Refunding Bonds 4,058,072 13,801,928 17,860,000 Costs of Issuance (1,360,321) (1,360,321) Costs of Refunding (912,428) (575,486) (1,487,914) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses 16,722,716 807,159 2,569,645 20,099,520 706,978 Fund Balances - Beginning of Year 5,411,732 1,469,803 3,502,160 10,383,695 9,676,717 Fund Balances - End of Year $22,134,448 $ 2,276,962 $ 6,971 805 $ 30,483,215 $ 10,383,695 The accompanying notes are an integral part of this statement. - 9 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES EXHIBIT 3 Year Ended June 30, 1986 Capital Project Fund Special Revenue Fund Debt Service Fund Totals - (Memorandum Only) Variance Variance Variance Variance Favorable Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues Tax Increment $ $ $ $ 580,000 $ 660,389 $ 80,389 $ 5,030,000 $ 5,202,687 $ 172,687 $ 5,610,000 $ 5,863,076 $ 253,076 Intergovernmental Revenues 134,243 134,243 134,243 134,243 Interest Income 750,000 1,419,355 669,355 170,000 146,770 (23,230) 400,000 698,900 298,900 1,320,000 2,265,025 945,025 Other Income 12,413 12,413 12,413 12,413 Total Revenues 750,000 1,431,768 681,768 750,000 807,159 57,159 5,430,000 6,035,830 605,830 6,930,000 8,274,757 1,344,757 E pe,,uiturns Administrative Costs 189,165 157,281 31,884 189,165 157,281 31,884 Professional Services 62,800 70,209 (7,409) 62,800 70,209 (7,409) Planning, Survey and Design 50,000 20,000 30,000 50,000 20,000 30,000 Real Estate Purchases 7,000,000 6,125,000 875,000 7,000,000 6,125,000 875,000 Project Improvement Costs 12,322,193 4,156,811 8,165,382 1,500,000 1,500,000 13,822,193 4,156,811 9,665,382 Interest Expense 1,651,310 2,592,701 (941,391) 1,651,310 2,592,701 (941,391) Long-Term Obligation Principal Payments 3,905,000 18,950,000 (15,045,000) 3,905,000 18,950,000 (15,045,000) Total Expenditures 19,624,158 10,529,301 9,094,857 1,500,000 - 0 - 1,500,000 5,556,310 21,542,701 (15,986,391) 26,680,468 32,072,002 (5,391,534) Excess of Revenues Over (Under) Expenditures (18,874,158) (9,097,533) 9,776,625 (750,000) 807,159 1,557,159 (126,310) (15,506,871) (15,380,561) (19,750,468) (23,797,245) (4,046,777) Other Financing Sources (Uses) Operating Transfers In (Out) (1,936,774) (1,936,774) 1,936,774 1,936,774 Proceeds 2,610,000 2,610,000 2,610,000 2,610,000 of Tax Allocation Bonds 23,226,700 23,361,700 135,000 2,913,300 2,913,300 26,140,000 26,275,000 135,000 Sale of Refunding Bonds 4,773,300 4,058,072 (715,228) 13,086,700 13,801,928 715,228 17,860,000 17,860,000 Costs of Issuance (1,360,321) (1,360,321) (1,360,321) (1,360,321) Costs of Refunding (912,428) (912,428) (575,486) (575,486) (1,487,914) (1,487,914) Excess of Revenues and Other Sources Over (Under) Expenditures and other Uses $ 9,125,842 16,722,716 $ 7,596,874 $ (750,000) 807,159 $ 1,557,159 $15,873,690 2,569,645 $ (13,304,045) $ 24,249,532 20,099,520 $ (4,150,012) Fund Balances - Beginning of Year 5,411,732 1,469,803 3,502,160 10,383,695 Fund Balances - End of Year $22,134,448 $2,276,962 $ 6,071,805 $30,483,215 The accompanying notes are an integral part of this statement. - 3 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 1986 1) Summary of Significant Accounting Policies The accounting policies of the Agency conform to generally accepted accounting principles as they are applicable to governmental units. The more significant accounting policies reflected in the financial statements are summarized as follows: A) Description of Funds and Account Groups The accounting records of the Agency are organized on the basis of funds and groups of accounts classified for reporting purposes as follows: Capital Project Fund - Used to account for financial resources used for the acquisition of major capital facilities. Special Revenue Fund - Used to account for the proceeds of specific revenue sources or to finance unspecified activities as required by law or adminis- trative regulation. Debt Service Fund - Used to account for the payment of interest and principal on long-term obligations. Fixed Assets and Long-Term Liabilities - The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or financial flow measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measurement of available spendable resources. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain (infrastructure) general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized as general fixed assets. No depreciation is provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Long-Term Liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Obligation Account Group, not in the governmental funds. The two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Obligation Account Group. B) Basis of Accounting - The Capital Project, Special Revenue and Debt Service Funds are maintained on the modified accrual basis of accounting wherein: 1) Revenues are recorded as received in cash except (1) revenues which are both measurable and available as a resource to finance operations of the current year are accrued, and (2) revenues of a material amount not received at the normal time of receipt are accrued or deferred as appropriate. 2) Expenditures are recorded on an accrual basis except (1) disbursements for inventory type items are considered expenditures at the time of purchase (2) expenditures are not divided between years by the recording of prepaid expenses and (3) interest on long-term debt is recorded as an expenditure on its due date. - 4 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 1986 1) Summary of Significant Accounting Policies (Continued) C) Investments - Investments are stated at cost. D) Encumbrances - Encumbrances are recorded as an appropriation of fund balance. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. 2) Composition of Cash The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Redevelopment funds pooled with the City of Palm Desert funds are as follows: Project Fund $17,424,674 Low and Moderate Income Housing Fund 2,231,948 Debt Service Fund 1,273,689 $20.930.311 The City has an adopted investment policy pursuant to Government Code Section 53646 which authorizes the City's investment in securities of the U.S. Govern- ment or its agencies, Certificates of Deposit, Negotiable Certificates of Deposit and the Local Agency Investment Fund (LAIF). The City selects its invest- ments based on safety, liquidity and yield. At June 30, 1986 the pool consisted of petty cash and changes funds, Demand and Certificates of Deposit and funds held in the Local Agency Investment Fund as follows: Insured Collateralized Total Demand Deposits $ (251,974) $ $ (251,974) Certificates of Deposit 3,000,000 26,950,000 29,950,000 $2.748.026 $ 26.950.000 29,698,026 Deferred Compensation 327,907 Petty Cash and Change Funds 2,450 LAIF 19,011,000 $49.039.383 The yield of LAIF during the last quarter was 8.41%, while the City's yield on its Certificates of Deposit ranges from 6.60% to 8.875%. 3) Cash with Fiscal Agent - $7,376,493 Cash and investments held by Security Pacific National Bank are as follows: Interest Rate Par Value Cost Capital Project Fund - Pacific Horizon Fund 5.33% $2,422,369 $2,422,369 * Debt Service Fund - Pacific Horizon Fund 5.33% $4,954,124 $4,954,124 Total $7,376.493 $7.376.493 * These funds represent proceeds from the issuance of the $26,275,000 tax allocation bonds, issue of 1985 and interest earnings through June 30, 1986, and consist of the following: - 5 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 1986 3) Cash with Fiscal Agent - $7,376,493 (Continued) Bond Proceeds $2,350,000 Interest Income 72,369 Total $2,422,369 The funds are being held in Trust at Security Pacific National Bank in a temporary escrow fund pending a determination that tax revenues will support the release of such amounts while maintaining a 125% debt service coverage factor for such amount plus all bonds then outstanding. 4) Due From Other Governmental Agencies - $2,700,442 Due from other governmental agencies consists of the following: City of Palm Desert $5,176 - the Agency advanced costs to the City for the Property A Fire Tax Fund. State of California $33,474 - the Agency received 83-84 personal property subventions in August, 1986 from the State. Riverside County $114,702 - the Agency received supplemental taxes from the County in July and August, 1986 for fiscal year 1985-86. Coachella Valley Community College District $47,090 - the Agency and the District entered into a public facilities agreement on February 1, 1986, for the development of a 15 acre golf and related recreational facility on the College of the Desert campus located within Project Area No. 1, as amended. The Agency shall advance to the District the sum of one hundred ten thousand dollars to pay a portion of the costs of the installation and construction of the facility. As of June 30, 1986 the Agency had advanced $47,090 towards the cost of the facilities to the District. Coachella Valley Water District - $2,500,000 - pursuant to an agreement with the Water District, acting as the lead Agency in the construction of the Portola Stormwater Facilities Project, the Agency issued tax allocation bonds and paid a portion of the net proceeds to the Water District to pay for the flood control improvements. The agreement also stated that the Water District will advance an amount not to exceed $2,500,000 for the costs of the flood control improvements, which shall constitute a loan to the Agency repayable without interest from tax increment monies as indicated in Note 5. To date, the Agency has not received a complete accounting of the costs of the project through June 30, 1986. Therefore, the aforementioned advance is reflected in the accompanying financial statements as Long-Term Debt Proceeds Revenue in the Capital Project Fund, Due From Other Governmental Agencies and Reserve for Specific Capital Projects and Programs in the Capital Project Fund and included as Loans Payable in the Long-Term Obligation Account Group. 5) Loans Payable - $2,610,000 Loans payable consist of the following: A $110,000 8% note to the City of Palm Desert, dated February 1, 1986, with interest due on maturity. A $2,500,000 agreement with Coachella Valley Water District to finance a portion of the costs of the Portola Stormwater Facility Project, to be repaid with- out interest as follows: a) on or before June 30, 1987, the Agency shall pay $1,750,000, and b) on or before February 28, 1988 the Agency shall pay any remaining amount of the obligation. 6) Tax Allocation Bonds - $44,135,000 Tax allocation bonds consist of the following: - 6 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 1986 6) Tax Allocation Bonds - $44,135,000 (Continued) $26,275,000 Tax Allocation Bonds, Issue of 1985, dated December 1, 1985. The Bonds were sold during the fiscal year to aid in the financing of the redevelopment of the Project Area and the Added Territory. $17,860,000 Tax Allocation Refunding Bonds, Issue of 1935, dated December 1, 1985. The Bonds were sold during the fiscal year to refund the outstanding portion of the 1982 Tax Allocation Bonds of $13,645,000, and to aid in the financing of the redevelopment of the Project Area and the Added Territory. Funds of $14,220,485.98 were deposited into an escrow fund to consumate the subsequent refunding. The Bonds are payable from, and are specifically secured by, a first lien upon and an irrevocable pledge of the tax revenues derived from the Project Area. 7) Unfunded Pension Costs The Agency, through the City, is a participant in the Public Employees' Retirement System of the State of California covering all of its permanent employees. The excess, if any, of the actuarially computed value of vested benefits over the amounts available in the pension fund would be a liability of the City and not the Agency. 8) Vacation and Sick Pay Benefits The accompanying financial statements do not include any accrual for vacation and sick pay benefits due employees at June 30, 1986. These amounts are recorded as obligations in the records of the City of Palm Desert as all employees are employed by the City. 9) Contingencies As of June 30, 1986, in the opinion of the Agency administration, there are no outstanding matters which would have a significant effect on the financial position of the funds of the Agency. - 7 - • REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA STATEMENT OF LONG-TERM OBLIGATIONS SCHEDULE 1 Year Ended June 30, 1986 Date of Years of Rate of Amount Outstanding New Matured Outstanding Description Issue Maturity Interest Authorized 7-1-85 Indebtedness During Year 6-30-86 Tax Allocation Bonds 1982 Tax Allocation Bonds 09-01-82 1983-1989 12% $ 4,060,000 $ 3,210,000 $ $ 3,210,000 $ - 0 - 1990 9.5% 890,000 890,000 890,000 - 0 - 1991 8.9% 995,000 995,000 995,000 - 0 - 1992 9.2% 1,115,000 1,115,000 1,115,000 - 0 - 1993 9.4% 1,250,000 1,250,000 1,250,000 - 0 - 1994 9.7% 1,400,000 1,400,000 1,400,000 - 0 - 1995-1996 9.9% 3,325,000 3,325,000 3,325,000 - 0 - 1997 5% 1,965,000 1,965,000 1,965,000 - 0 - Total 15,000,000 14,150,000 - 0 - 14,150,000 - 0 - (1) 1985 Tax Allocation Bonds 12-01-85 1988-1994 7.6% 6,180,000 6,180,000 6,180,000 1995-2005 7.9% 20,095,000 20,095,000 20,095,000 Total 26,275,000 - 0 - 26,275,000 - 0 - 26,275,000 1985 Tax Allocation Refunding Bonds 12-01-85 1986-1995 7.6% 5,615,000 5,615,000 5,615,000 1996 7.8% 820,000 820,000 820,000 1997-2005 7.9% 11,425,000 11,425,000 11,425,000 Total 17,860,000 - 0 - 17,860,000 - 0 - 17,860,000 Total Tax Allocation Bonds $59,135,000 $14.150,000 $ 44,135,000 $14,150,000 $44 135,000 Loans Payable City of Palm Desert 06-01-85 12% $ 2,500,000 City of Palm Desert 02-01-86 8% 110,000 2,500,000 $ $ 2,500,000 $ 0,000 110,000 110,000 Total 2,610,000 2,500,000 110,000 2,500,000 110,000 Coachella Valley Water District 08-12-82 2,300,000 2,300,000 2,300,000 - 0 - Coachella Valley Water District 04-10-86 2,500,000 - 0 - 2,500,000 2,500,000 Total 4,800,000 2,300,000 2,500,000 2,300,000 2,500,000 Total Loans Payable $ 7.410 ti000 $ 4,800,000 $ 2,610,000 $ 4,800,000 $ 2,610,000 (1) 1982 Tax Allocation Bonds defeased by issuance of 1985 Tax Allocation Refunding Bonds 12-1-85. - 8 - REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT, CALIFORNIA GENERAL INFORMATION June 30, 1986 1) The Redevelopment Agency of the City of Palm Desert, California was formed under Section 33,000 et. seq. of the Health and Safety Code. For the period under audit the Agency consisted solely of Project No. 1, as amended. 2) The Agency office and records are located in the City Hall at 73-510 Fred Waring Drive, Palm Desert, California 92261, phone number (619) 346-0611. 3) Agency officers are as follows: Name Title Richard Kelly Chairman Walter Snyder Vice Chairman Jean M. Benson Member S. Roy Wilson Member The Board of Directors is also the Palm Desert City Council. The Board of Directors meets the second and fourth Tuesday of each month. 4) We would like to take this opportunity to express our appreciation for the cooperation and assistance rendered us during the course of our review. If we may be of any further assistance, please feel free to contact our office. - 9 -