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Home My WebLink AboutSEOPW-CRA-R-98-0026Agenda Item No. 1.B. SEOPWICRA b� tt.', RESOLUTION NO. — 1G V A RESOLUTION AUTHORIZING KPMG PEAT MARWICK TO CONDUCT A REVIEW OF AUDITS PREVIOUSLY COMPLETED FOR THE COMMUNITY REDEVELOPMENT AGENCY AND TO CONDUCT AN AUDIT THE SOUTHEAST OVERTOWN/PARK WEST TRUST FUND FOR ANY YEAR IN WHICH AN AUDIT HAS NOT BEEN PERFORMED; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR OF THE COMMUNITY REDEVELOPMENT AGENCY TO NEGOTIATE AND PREPARE A FEE AGREEMENT WITHIN THIRTY (30) DAYS RELATED TO THE SERVICES TO BE PERFORMED BY KPMG PEAT MARWICK FOR APPROVAL BY THE BOARD OF DIRECTORS OF THE CITY OF MIAMI CRA; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. WHEREAS, KPMG Peat Marwick has been selected as the external auditor for the City of Miami Community Redevelopment Agency ("CRA"); and WHEREAS, the CRA is required to provide an independent audit of the Southeast Overtown/Park West Trust Fund each fiscal year; and WHEREAS, the CRA desires to conduct a review of audit previously performed for the CRA and to conduct an audit of the funds and activities of the CRA for fiscal years in which such audits have not been conducted. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY: SECTION 1. The Board of Directors of the CRA ("Board") approves and authorizes KPMG Peat Marwick to review audits previously conducted of the Southeast 1 SEOPw/m 9 8 - 26 Overtown/Park West Trust Fund for the Fiscal Years 1982 through 1998, and to conduct an audit of Southeast Overtown/Park West Trust Fund for Fiscal Year 1996 and 1998. SECTION 2. The Executive Director of the authorized to negotiate a fee agreement with KPMG Peat Marwick. Such fee agreement shall be submitted for approval by the Board within thirty (30) days and prior to any disbursement of funds for such services. SECTION 3. This resolution shall take effect immediately upon passage. PASSED AND ADOPTED ON THIS 16th DAY OF November / / ►WI/ v r�M APPROVED AS TO FORM AND LEGAL SUFFICIENCY Holland & Knight LLP, Counsel MIA4-674315 CITY OF MIAMI COMMUNITY RE EVELOPMENT AGENCY r,,,► Arthur E. Teele, Jr., unamnan 2 SBOPW/CRA 9 8 - ti 6 lA KPMG SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI, FLORIDA Financial Statements September 30, 1997 (With Independent Auditors' Report Thereon) S 26 SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI, FLORIDA September 30, 1997 Table of Contents Independent Auditors' Report Balance Sheet Statement of Revenue, Expenditures and Changes in Fund Balance Notes to Financial Statements Page 1 2 3 4-6 SEOM1 - 9 8 -- 206 ki ]I I I 11 M Peat Marwick ALP One Biscayne Tower Suite 2900 2 South Biscayne Boulevard Miami, FL 33131 Telephone 305 358 2300 Telefax 305 577 0544 Independent Auditors' Report To the Honorable Chairman and Board Members of the Southeast Overtown/Park West Community Redevelopment Agency Miami, Florida: We have audited the accompanying balance sheet of the Southeast Overtown/Park West Redevelopment Trust Fund of the City of Miami, Florida, as of September 30, 1997, and the related statement of revenue, expenditures and changes in fund balance for the year then ended. These financial statements are the responsibility of the Southeast Overtown/Park West Redevelopment Trust Fund of the City of Miami, Florida's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those stan- dards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by manage- ment, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in note 1, the financial statements referred to above present only the Southeast Overtown/Park West Redevelopment Trust Fund and are not intended to present fairly the financial position of the City of Miami, Florida, and the results of its operations in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Southeast Overtown/Park West Redevelopment Trust Fund of the City of Miami, Florida, at September 30, 1997, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. February 23, 1998 1 South Florida Business Unit y :.s' z<,: A - 9 -- � �- i -'��' Member Firm of KPMc �nternanona� Miami Fort Lauderdale � ;<'s + �� SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI, FLORIDA Balance Sheet September 30, 1997 Equity in pooled cash Cash with fiscal agents Due from primary government Note receivable Unreserved Total assets Assets Fund Balance Total fund balance See accompanying notes to financial statements. $ 1,122,883 563,326 363,000 65.000 $ 2,114,209 2,114,209 $ 2,114,209 -2- SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI, FLORIDA Statement of Revenue, Expenditures and Changes in Fund Balance For the fiscal year ended September 30, 1997 Revenue: State of Florida revenue sharing $ 300,000 Incremental revenue taxes 133,636 Contributions from Miami -Dade County, Florida 90,056 Land sales 412,387 Interest 67,985 Other 19.914 Total revenue 1,023,978 Expenditures: Current: Utilities 13,773 Contractual services 7,620 Capital outlay 363,000 Total expenditures 384,393 Excess of revenue over expenditures 639,393 Other financing sources (uses): Operating transfers from primary government - 363,000 Operating transfers to primary government (638,5451 Total other financing uses (275,545) Excess of revenues and other financing sources over expenditures and other financing uses 364,040 Fund balance at beginning of year 1,750,169 Fund balance at end of year $ 2,114,209 See accompanying notes to financial statements. -3- sEopw/cm 9 8 - 26 1� SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI, FLORIDA `l Notes to Financial Statements 11 September 30, 1997 ` (1) General Description ■� The Southeast Overtown/Park West Redevelopment Plan ( the "Plan") was established by the City of Miami, Florida (the "City") Resolution 82-755 on July 29, 1982. The Plan entails the redevelopment of 200 acres of prime real estate in the Southeast Overtown/Park West community redevelopment area, adjacent to the central business district, for new residential Jand commercial activity. In conjunction with the Plan, the Southeast Overtown/Park West Redevelopment Trust Fund of the City of Miami, Florida ("Trust Fund") was created under the provisions of Florida .� Statute, Section 163.387. The City Commission is also the Board of Commissioners of the Trust Fund. Miami -Dade County, Florida (the "County") adopted Resolution 82-1677 and �l Ordinance 82-115 approving a plan and tax increment financing for the Southeast JOvertown/Park West Community Redevelopment Area. On March 31, 1983, the City authorized by Resolution 83-187 and Ordinance 9590 an l interlocal cooperation agreement with the County whereby the tax increment revenue assessed by the parties would be deposited into the Trust Fund to be used in accordance with the approved budget and for the benefit of the Southeast Overtown/Park West Project. The City 'l has issued debt for the Plan and is responsible under the inter -local agreement for receipt, custody, disbursement, accountability, management and proper application of all moneys paid into the Trust Fund. �I (2) Summary of Significant Accounting Policies A summary of significant accounting policies adhered to in the preparation of the 1Iaccompanying financial statements is presented below. (a) Basis of Accounting The Trust Fund's operations are reported as a special revenue fund of the City and is accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenue is recognized when it becomes susceptible to accrual; that is, =� when it becomes both measurable and available to pay liabilities of the current period. Investment earnings are recorded as revenue when earned since they are both measurable and available. Expenditures are generally recognized in the accounting period in which the related liability is incurred and expected to be liquidated with available resources. Capital outlays and debt service payments are considered to be .1 expenditures. This report includes only financial statements of the Southeast Overtown/Park West Redevelopment Trust Fund. (b) Pooled Cash and Investments The Trust Fund's equity is held in the City's accounting system in which cash, investments and accrued interest are recorded and maintained in a separate group of accounts. All such cash and investments, including accrued interest, are reflected as pooled cash and investments. Investments are stated at cost or amortized cost, which ■ -4- (Continued) SEOpyy,QtA 9 8 - 9 C SOUTHEAST OVERTOWN/PARK WEST `l REDEVELOPMENT TRUST FUND OF �) THE CITY OF MIAMI, FLORIDA -1 Notes to Financial Statements approximates market. All investments consists of U.S. government obligations and prime commercial paper. Interest income is allocated based upon the approximate pro- portionate balance of each fund's equity in pooled cash and investments. .l (c) Fund Balance Fund balance represents amounts which have been distributed or are not yet distributable to the ultimate recipient. The recipient is the Southeast Overtown/Park West ` Redevelopment project and, as such, these funds are not available to the City for its own ,l disposition. �J (3) Note Receivable On January 9, 1997, the City transferred ownership of various properties to the Trust Fund, including the property located at 269 N.W. 8th Street, which was sold by the Trust Fund to Bethel A.M.E. Church, Inc. (the "Church"), a Florida non-profit organization, pursuant to •l City Resolution 97-7. The Church paid cash of $30,000 and signed a $65,000 purchase money note and mortgage for the property. The purchase money note and mortgage has an annual interest rate of 6 percent, amortized over thirty (30) years with a balloon payment of $46,729 in the fifteenth ■� year. (4) Debt Issuance (a) On November 8, 1990, the City issued $11,500,000 aggregate principal amount of Community Redevelopment Revenue Bonds, Series 1990, matur4ng through 2015, interest rates ranging from 7.15 percent to 8.5 percent. The net proceeds of the bonds are to be used in part to: (i) Refinance the $5,958,400 note made by the City from the Department of Housing ■, and Urban Development of the United States; (ii) Reimburse the City for moneys advanced to the Redevelopment Area by the City in an amount not to exceed $750,000; and •_ iii Finance the acquisition and clearing of certain real property in the Redevelopment 1 Area and the construction of certain infrastructure improvements in the ■ Redevelopment Area in accordance with the Redevelopment Plan. (b) In fiscal year 1994, the City obtained a Section 108 loan, secured by U.S. Department of Housing and Urban Development in the amount of $4,800,000. The proceeds of the loan were used to assist the retirement of $6,735,000 of the City of Miami Community Redevelopment Bond Series 1990. Interest is payable on February 1 and August 1, annually, and principal is payable annually commencing August 1, 2000. .1 -5- (Continued) SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements (c) In fiscal year 1995, the City obtained a Section 108 loan secured by the U.S. Department of Housing and Urban Development in the amount of $300,000. The proceeds of the loan were used to acquire real property at a cost of $246,837 for part of the development of the historic village located within the Southeast Overtown/Park West Redevelopment area. Interest is payable on February 1 and August 1, annually, and principal is payable annually commencing on August 1, 2000. I Me MOPW/CRA 9 _ 26