1. law, govt and politics
2. government

NEW ISSUE – BOOK ENTRY ONLY
Standard & Poor’s: Insured Bonds “AA” (Insurer Rating)
Uninsured Bonds “A+” (Underlying)
(See “CONCLUDING INFORMATION—Ratings” herein)
In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel, under existing laws, regulations, rulings and
judicial decisions, and assuming continuing compliance with covenants intended to preserve the exclusion from gross income for federal income tax purposes
of interest on the 2015A Bonds, interest on the 2015A Bonds is excludable from gross income for federal income tax purposes and is not an item of tax
preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. In the further opinion of Bond Counsel,
interest on the 2015A Bonds and 2015B Bonds is also exempt from present State of California personal income taxes. See “CONCLUDING
INFORMATION—Tax Exemption” herein for a discussion of the effect of certain provisions of the Code on Owners of the 2015A Bonds.
$18,380,000
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
Oroville Redevelopment Project No. 1
Tax Allocation Refunding Bonds
Series 2015A
Dated: Delivery Date
$525,000
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
Oroville Redevelopment Project No. 1
Tax Allocation Refunding Bonds
Series 2015B (Taxable)
Due: September 15, as shown on inside cover
The above-captioned Series 2015A bonds (the “2015A Bonds”) and Series 2015B bonds (the “2015B Bonds”; and together with the 2015A Bonds,
the “Bonds”) will be delivered as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York,
New York (“DTC”), and will be available to ultimate purchasers (“Beneficial Owners”) in the denomination of $5,000 or any integral multiple thereof, under
the book-entry system maintained by DTC. Beneficial Owners will not be entitled to receive delivery of bonds representing their ownership interest in the
Bonds. The principal of, premium if any, and semiannual interest (due March 15 and September 15 of each year, commencing September 15, 2015) on the
Bonds will be payable by MUFG Union Bank, N.A., as trustee (the “Trustee”), to DTC for subsequent disbursement to DTC participants, so long as DTC or
its nominee remains the registered owner of the Bonds (see “THE BONDS—Book-Entry System” herein).
The Bonds are subject to optional redemption prior to their maturity as described herein. See “THE BONDS—Redemption and Purchase
of Bonds” herein.
The Bonds are being issued by the Successor Agency to the Oroville Redevelopment Agency (the “Agency”).
The 2015A Bonds are being issued to refinance certain loan obligations previously incurred by the Oroville Redevelopment Agency (the “Prior
Agency”) pursuant to (i) a Loan Agreement with the Oroville Public Financing Authority (the “Authority”) dated as of October 31, 2002 pursuant to which
the Authority loaned the proceeds of its 2002 Tax Allocation Revenue Bonds (Oroville Redevelopment Project No. 1) to the Prior Agency (the “2002 Loan”)
and the Prior Agency pledged its tax increment revenues as the security for the repayment of the 2002 Loan (the “2002 Loan Obligation”) currently
outstanding in the principal amount of $12,555,000, and (ii) a Loan Agreement with the Authority dated as of August 5, 2004 pursuant to which the Authority
loaned the proceeds of its 2004 Tax Allocation Revenue Bonds, Series A (Oroville Redevelopment Project No. 1) to the Prior Agency (the “2004A Loan”)
and the Prior Agency pledged its tax increment revenues as the security for the repayment of the 2004A Loan (the “2004A Loan Obligation”) currently
outstanding in the principal amount of $8,480,000. The 2015B Bonds are being issued to refund the Prior Agency’s previously issued Loan Agreement with
the Authority dated as of August 5, 2004 pursuant to which the Authority loaned the proceeds of its 2004 Taxable Tax Allocation Revenue Bonds, Series B
(Oroville Redevelopment Project No. 1) to the Prior Agency (the “2004B Loan”) and the Prior Agency pledged its tax increment revenues as the security for
the repayment of the 2004B Loan (the “2004B Loan Obligation”) currently outstanding in the principal amount of $555,000. The 2002 Loan Obligation, the
2004A Loan Obligation and the 2004B Loan Obligation are referred to collectively herein as the “Refunded Obligations.” Proceeds of the Bonds will also be
applied to pay the premium for a municipal bond debt service reserve insurance policy, a policy of bond insurance and to pay costs of issuance of the Bonds.
The Authority made the 2002 Loan, the 2004A Loan and the 2004B Loan to the Prior Agency using proceeds of the Authority’s previously issued (a) 2002
Tax Allocation Revenue Bonds (Oroville Redevelopment Project No. 1), (b) 2004 Tax Allocation Revenue Bonds, Series A (Oroville Redevelopment Project
No. 1) (Bank Qualified) and (c) 2004 Taxable Tax Allocation Revenue Bonds, Series B (Oroville Redevelopment Project No. 1) (collectively, the “Refunded
Authority Bonds”). The refunding of the Refunded Obligations will cause the refunding and defeasance of the Refunded Authority Bonds.
The Bonds are payable from and equally and ratably secured, without preference or distinction as to Series, by the Pledged Tax Revenues as
defined herein to be derived from the Project Area. Taxes levied on the property within the Project Area on that portion of the taxable valuation over and
above the taxable valuation of the base year property tax roll to the extent they constitute Pledged Tax Revenues, shall be deposited in the Redevelopment
Obligation Retirement Fund, and administered by the Agency and the Trustee in accordance with the Indenture of Trust dated as of April 1, 2015 (the
“Indenture”) by and between the Agency and the Trustee providing for the issuance of the Bonds.
The scheduled payment of principal of and interest on the 2015A Bonds maturing on September 15 in the years 2018 through 2031, inclusive, and
all of the 2015B Bonds (the “Insured Bonds”), when due will be guaranteed under an insurance policy (the “Policy”) to be issued concurrently with the
delivery of the Insured Bonds by Assured Guaranty Municipal Corp. (the “Insurer” or “AGM”). See “BOND INSURANCE” and APPENDIX I—
“SPECIMEN MUNICIPAL BOND INSURANCE POLICY” herein.
This cover page of the Official Statement contains information for quick reference only. It is not a complete summary of the Bonds.
Investors should read the entire Official Statement to obtain information essential to the making of an informed investment decision. Attention is
hereby directed to certain Risk Factors more fully described herein.
The Bonds are not a debt of the City of Oroville, the State of California (the “State”) or any of its political subdivisions (except the Agency) and
neither said City, said State or any of its political subdivisions (except the Agency) is liable therefor. The principal of and interest on the Bonds are payable
solely from the Pledged Tax Revenues allocated to the Agency from the Project Area (all as defined herein and in the Indenture) and other funds as set forth
in the Indenture. The Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.
The Bonds are offered, when, as and if issued, subject to the approval of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport
Beach, California, Bond Counsel. Certain legal matters will be passed on for the Agency by Stradling Yocca Carlson & Rauth, a Professional Corporation,
Newport Beach, California, Disclosure Counsel and for the Underwriter by Jones Hall, A Professional Corporation, San Francisco, California. It is
anticipated that the Bonds will be available for delivery to DTC in New York, New York, on or about April 8, 2015.
SOUTHWEST SECURITIES, INC.
Dated: March 17, 2015
$18,380,000
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
Oroville Redevelopment Project No. 1
Tax Allocation Refunding Bonds
Series 2015A
$525,000
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
Oroville Redevelopment Project No. 1
Tax Allocation Refunding Bonds
Series 2015B (Taxable)
2015A BONDS
MATURITY SCHEDULE
(Base CUSIP† 68723P)
Maturity Date
(September 15)
CUSIP†
Suffix
Principal
Amount
Interest
Rate
Yield
(1)
2015
2016(1)
2017(1)
$ 555,000
645,000
920,000
3.000%
3.000
3.000
0.350%
0.550
0.930
AA5
AB3
AC1
2018(2)
2019(2)
2020(2)
2021(2)
2022(2)
2023(2)
2024(2)
2025(2)
2026(2)
2027(2)
2028(2)
2029(2)
2030(2)
2031(2)
955,000
985,000
1,030,000
1,080,000
1,135,000
1,190,000
1,250,000
1,315,000
1,375,000
1,415,000
1,460,000
1,505,000
300,000
1,265,000
4.000
4.000
5.000
5.000
5.000
5.000
5.000
5.000
3.000
3.000
3.000
3.125
3.250
3.250
1.250
1.530
1.750
1.950
2.250
2.450
2.600
2.750(3)
3.010
3.150
3.280
3.380
3.470
3.480
AD9
AE7
AF4
AG2
AH0
AJ6
AK3
AL1
AM9
AN7
AP2
AQ0
AR8
AS6
2015B BONDS
MATURITY SCHEDULE
(Base CUSIP† 68723P)
Maturity Date
(September 15)
(2)
2015
2016(2)
(1)
Principal
Amount
Interest
Rate
Yield
$ 295,000
230,000
0.700%
0.950
0.700%
0.950
CUSIP†
Suffix
AT4
AU1
Uninsured.
Insured by Assured Guaranty Municipal Corp.
(3)
Priced to call date of March 15, 2025.
†
CUSIP® is a registered trademark of the American Bankers Association. Copyright© 1999-2015 Standard & Poor’s Ratings Services, a
Standard & Poor’s Financial Services LLC business. All rights reserved. CUSIP® data herein is provided by Standard & Poor’s CUSIP
Service Bureau. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Service Bureau.
CUSIP® numbers are provided for convenience of reference only. Neither the Agency nor the Underwriter takes any responsibility for the
accuracy of such numbers.
(2)
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
OROVILLE, CALIFORNIA
Board of Directors
Linda Dahlmeier, Chair
Thil Wilcox, Vice Chair
Art Hatley, Director
Jack Berry, Director
Marlene Del Rosario, Director
JR Simpson, Director
David Pittman, Director
Agency Staff and Project Management
Don Rust, Acting Executive Director
Karolyn Fairbanks, City Treasurer
Rick Farley, Enterprise Zone Manager
Ruth Wright, Finance Director
Scott Huber, City Attorney
Glenn Lazof, Finance Project Manager
SPECIAL SERVICES
Bond and Disclosure Counsel
Stradling Yocca Carlson & Rauth
a Professional Corporation
Newport Beach, California
Financial Advisor
NHA Advisors, LLC
San Rafael, California
Trustee and Escrow Bank
MUFG Union Bank, N.A.
San Francisco, California
Fiscal Consultant
Rosenow Spevacek Group, Inc.
Santa Ana, California
Underwriter
Southwest Securities, Inc.
Cardiff by the Sea, California
Verification Agent
Grant Thornton LLP
Minneapolis, Minnesota
GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been
authorized by the Agency to give any information or to make any representations with respect to the Bonds other than as
contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as
having been given or authorized by the Agency or the Underwriter.
Use of Official Statement. This Official Statement is submitted in connection with the sale of the Bonds described in
this Official Statement and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement
does not constitute a contract between any Bond owner and the Agency or the Underwriter. For purposes of compliance with
Rule 15c2-12 of the Securities and Exchange Commission, the Preliminary Official Statement and the Official Statement, as of
their respective dates, are deemed final by the Agency, provided, however, that pricing, underwriting and other information
contained in the Preliminary Official Statement is subject to completion or amendment in accordance with Rule 15c2-12.
Preparation of this Official Statement. The information contained in this Official Statement has been obtained from
sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The Underwriter
has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in
this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as
applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of
such information.
Assured Guaranty Municipal Corp. (“AGM”) makes no representation regarding the Bonds or the advisability of
investing in the Bonds. In addition, AGM has not independently verified, makes no representation regarding, and does not accept
any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein,
or omitted herefrom, other than with respect to the accuracy of the information regarding AGM supplied by AGM and presented
under the heading “BOND INSURANCE” and APPENDIX I—“SPECIMEN MUNICIPAL BOND INSURANCE POLICY.”
Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure made by the Agency,
the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “forecast,”
“expect,” “intend” and similar expressions identify “forward looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties.
Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may
occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material.
This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this
Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds
will, under any circumstances, create any implication that there has been no change in the affairs of the Agency or the other
parties described in this Official Statement, since the date of this Official Statement.
Document Summaries. All summaries of the Indenture or other documents contained in this Official Statement are
made subject to the provisions of such documents and do not purport to be complete statements of any or all such provisions. All
references in this Official Statement to the Indenture and such other documents are qualified in their entirety by reference to such
documents, which are on file with the Agency.
No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or a solicitation of an
offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or
solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.
No Registration with the SEC. The issuance and sale of the Bonds have not been registered under the Securities Act of
1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections
3(a)(2) and 3(a)(12), respectively, for the issuance and sale of municipal securities.
Public Offering Prices. The Underwriter may offer and sell the Bonds to certain dealers and dealer banks and banks
acting as agent at prices lower than the public offering prices stated on the inside cover page of this Official Statement, and the
Underwriter may change those public offering prices from time to time.
Web Page. The City of Oroville maintains a website. However, the information maintained on the website is not a part
of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds.
TABLE OF CONTENTS
Page
INTRODUCTION ................................................................................................................................................ 1 Authority and Purpose ...................................................................................................................................... 1 The City and the Agency .................................................................................................................................. 2 The Redevelopment Plan .................................................................................................................................. 3 Tax Allocation Financing ................................................................................................................................. 3 Security for the Bonds ...................................................................................................................................... 4 No Outstanding Bonds ...................................................................................................................................... 5 Reserve Account ............................................................................................................................................... 5 Bond Insurance ................................................................................................................................................. 5 Changes to the Official Statement .................................................................................................................... 5 Further Information .......................................................................................................................................... 5 PLAN OF REFUNDING ...................................................................................................................................... 5 Verification of Mathematical Computations .................................................................................................... 6 SOURCES AND USES OF FUNDS .................................................................................................................... 7 THE BONDS ........................................................................................................................................................ 8 Authority for Issuance ...................................................................................................................................... 8 Description of the Bonds .................................................................................................................................. 8 Book-Entry System ........................................................................................................................................... 8 Redemption and Purchase of Bonds ................................................................................................................. 8 SECURITY FOR THE BONDS ........................................................................................................................... 9 Tax Increment Financing ................................................................................................................................ 10 Recognized Obligation Payment Schedule ..................................................................................................... 12 No Outstanding Bonds .................................................................................................................................... 14 Parity Bonds ................................................................................................................................................... 14 Bonds Not a Debt of the City of Oroville or the State of California .............................................................. 16 BOND INSURANCE ......................................................................................................................................... 16 Bond Insurance Policy .................................................................................................................................... 17 Assured Guaranty Municipal Corp. ................................................................................................................ 17 THE INDENTURE ............................................................................................................................................. 18 Allocation of Bond Proceeds .......................................................................................................................... 19 Pledged Tax Revenues – Application ............................................................................................................. 19 Investment of Moneys in Funds and Accounts ............................................................................................... 21 Covenants of the Agency ................................................................................................................................ 22 Events of Default and Remedies ..................................................................................................................... 25 Application of Funds Upon Acceleration ....................................................................................................... 26 Amendments ................................................................................................................................................... 27 THE SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY .................................. 27 Members and Officers .................................................................................................................................... 28 Agency Powers ............................................................................................................................................... 28 RISK FACTORS ................................................................................................................................................ 29 Reduction in Taxable Value ........................................................................................................................... 29 Risks to Real Estate Market ............................................................................................................................ 29 Reduction in Inflationary Rate ........................................................................................................................ 30 Development Risks ......................................................................................................................................... 30 Levy and Collection of Taxes ......................................................................................................................... 30 State Budget Issues ......................................................................................................................................... 31 Recognized Obligation Payment Schedule ..................................................................................................... 33 i
AB 1484 Penalty for Failure to Remit Unencumbered Funds ........................................................................ 35 Bankruptcy and Foreclosure ........................................................................................................................... 35 Bond Insurance ............................................................................................................................................... 35 Estimated Revenues ........................................................................................................................................ 36 Hazardous Substances .................................................................................................................................... 36 Seismic Factors ............................................................................................................................................... 36 Risk of Floods ................................................................................................................................................. 37 Wildland and Urban Fire Hazards .................................................................................................................. 37 Changes in the Law ........................................................................................................................................ 37 Investment Risk .............................................................................................................................................. 38 Additional Obligations.................................................................................................................................... 38 Loss of Tax Exemption ................................................................................................................................... 38 Secondary Market ........................................................................................................................................... 38 No Validation Proceeding Undertaken ........................................................................................................... 38 PROPERTY TAXATION IN CALIFORNIA .................................................................................................... 40 Property Tax Collection Procedures ............................................................................................................... 40 Unitary Property ............................................................................................................................................. 43 Article XIIIA of the State Constitution........................................................................................................... 43 Appropriations Limitation – Article XIIIB ..................................................................................................... 44 Articles XIIIC and XIIID of the State Constitution ........................................................................................ 44 Proposition 87 ................................................................................................................................................. 44 Redevelopment Time Limits .......................................................................................................................... 45 Appeals of Assessed Values ........................................................................................................................... 45 Proposition 8 ................................................................................................................................................... 46 Propositions 218 and 26.................................................................................................................................. 46 Future Initiatives ............................................................................................................................................. 46 THE PROJECT AREA ....................................................................................................................................... 47 General............................................................................................................................................................ 47 The Oroville Redevelopment Project Plan ..................................................................................................... 47 Limitations and Requirements of the Redevelopment Plan ............................................................................ 47 Pass-Through Agreements .............................................................................................................................. 49 Statutory Pass-Through Amounts ................................................................................................................... 50 Land Use ......................................................................................................................................................... 51 Largest Taxpayers ........................................................................................................................................... 52 Appeals ........................................................................................................................................................... 52 PLEDGED TAX REVENUES ........................................................................................................................... 53 Schedule of Historical RPTTF Revenues ....................................................................................................... 53 Projected Taxable Valuation and Pledged Tax Revenues .............................................................................. 54 Projected Annual Debt Service ....................................................................................................................... 56 Debt Service Coverage ................................................................................................................................... 57 CONCLUDING INFORMATION ..................................................................................................................... 58 Underwriting ................................................................................................................................................... 58 Financial Advisor............................................................................................................................................ 59 Legal Opinions................................................................................................................................................ 59 Tax Exemption................................................................................................................................................ 59 No Litigation................................................................................................................................................... 60 Legality for Investment in California ............................................................................................................. 60 Ratings ............................................................................................................................................................ 60 Continuing Disclosure .................................................................................................................................... 60 Miscellaneous ................................................................................................................................................. 61 ii
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
APPENDIX F
CITY OF OROVILLE GENERAL INFORMATION .......................................................... A-1
DEFINITIONS ...................................................................................................................... B-1
FORM OF BOND COUNSEL OPINIONS .......................................................................... C-1
BOOK-ENTRY ONLY SYSTEM ........................................................................................ D-1
FORM OF CONTINUING DISCLOSURE CERTIFICATE ................................................ E-1
CITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR
ENDED JUNE 30, 2014 .........................................................................................................F-1
APPENDIX G FISCAL CONSULTANT’S REPORT .................................................................................. G-1
APPENDIX H DOF DETERMINATION LETTER ..................................................................................... H-1
APPENDIX I SPECIMEN MUNICIPAL BOND INSURANCE POLICY .................................................. I-1
iii
$18,380,000
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
Oroville Redevelopment Project No. 1
Tax Allocation Refunding Bonds
Series 2015A
$525,000
SUCCESSOR AGENCY TO THE
OROVILLE REDEVELOPMENT AGENCY
Oroville Redevelopment Project No. 1
Tax Allocation Refunding Bonds
Series 2015B (Taxable)
INTRODUCTION
This introduction does not purport to be complete, and reference is made to the body of this Official
Statement, appendices and the documents referred to herein for more complete information with respect to
matters concerning the Bonds (as defined herein). Potential investors are encouraged to read the entire
Official Statement.
Authority and Purpose
This Official Statement, including the cover page, is provided to furnish information in connection
with the sale by the Successor Agency to the Oroville Redevelopment Agency (the “Agency”) of its
(i) $18,380,000 Successor Agency to the Oroville Redevelopment Agency, Oroville Redevelopment Project
No. 1, Tax Allocation Refunding Bonds, Series 2015A (the “2015A Bonds”) and (ii) $525,000 Successor
Agency to the Oroville Redevelopment Agency, Oroville Redevelopment Project No. 1, Tax Allocation
Refunding Bonds, Series 2015B (Taxable) (the “2015B Bonds”; and together with the 2015A Bonds, the
“Bonds”).
The Bonds are being issued pursuant to the Constitution and laws of the State of California (the
“State”), including Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5
of the Government Code (the “Bond Law”) and the provisions of Health and Safety Code Section 34177.5, and
an Indenture of Trust dated as of April 1, 2015 (the “Indenture”) by and between the Agency and MUFG
Union Bank, N.A., as trustee (the “Trustee”) approved by Resolution No. 14-09 adopted by the Agency on
December 16, 2014 (the “Successor Agency Resolution”), and by Resolution No. 07-14 adopted by the
Oversight Board for the Agency on December 17, 2014 (the “Oversight Board Resolution”). Written notice of
the Oversight Board Resolution was provided to the State Department of Finance pursuant to the Dissolution
Act (as defined herein) and the State Department of Finance requested review within five business days of
such written notice. On February 12, 2015, the State Department of Finance provided a letter to the Agency
stating that based on such department’s review and application of the law, the Oversight Board Resolution
approving the refinancing of the Refunded Obligations (as defined below) is approved by the State Department
of Finance and that the letter constitutes the department’s determination with respect to the Oversight Board
action taken pursuant to the Oversight Board Resolution (the “DOF Determination Letter”). A copy of the
DOF Determination Letter is set forth as Appendix H hereto.
The 2015A Bonds are being issued to refinance certain loan obligations previously incurred by the
Oroville Redevelopment Agency (the “Prior Agency”) pursuant to (i) a Loan Agreement with the Oroville
Public Financing Authority (the “Authority”) dated as of October 31, 2002 pursuant to which the Authority
loaned the proceeds of its 2002 Tax Allocation Revenue Bonds (Oroville Redevelopment Project No. 1) to the
Prior Agency (the “2002 Loan”) and the Prior Agency pledged its tax increment revenues as the security for
the repayment of the 2002 Loan (the “2002 Loan Obligation”) currently outstanding in the principal amount of
$12,555,000, and (ii) a Loan Agreement with the Authority dated as of August 5, 2004 pursuant to which the
Authority loaned the proceeds of its 2004 Tax Allocation Revenue Bonds, Series A (Oroville Redevelopment
Project No. 1) to the Prior Agency (the “2004A Loan”) and the Prior Agency pledged its tax increment
revenues as the security for the repayment of the 2004A Loan (the “2004A Loan Obligation”) currently
outstanding in the principal amount of $8,480,000. The 2015B Bonds are being issued to refund the Prior
Agency’s previously issued Loan Agreement with the Authority dated as of August 5, 2004 pursuant to which
1
the Authority loaned the proceeds of its 2004 Taxable Tax Allocation Revenue Bonds, Series B (Oroville
Redevelopment Project No. 1) to the Prior Agency (the “2004B Loan”) and the Prior Agency pledged its tax
increment revenues as the security for the repayment of the 2004B Loan (the “2004B Loan Obligation”)
currently outstanding in the principal amount of $555,000. The 2002 Loan Obligation, the 2004A Loan
Obligation and the 2004B Loan Obligation are referred to collectively herein as the “Refunded Obligations.”
Proceeds of the Bonds will also be applied to pay the premium for a municipal bond debt service reserve
insurance policy, a policy of bond insurance and to pay costs of issuance of the Bonds. The Authority made
the 2002 Loan, the 2004A Loan and the 2004B Loan to the Prior Agency using proceeds of the Authority’s
previously issued (a) 2002 Tax Allocation Revenue Bonds (Oroville Redevelopment Project No. 1), (b) 2004
Tax Allocation Revenue Bonds, Series A (Oroville Redevelopment Project No. 1) (Bank Qualified) and (c)
2004 Taxable Tax Allocation Revenue Bonds, Series B (Oroville Redevelopment Project No. 1) (collectively,
the “Refunded Authority Bonds”). The refunding of the Refunded Obligations will cause the refunding and
defeasance of the Refunded Authority Bonds.
The scheduled payment of principal of and interest on the Insured Bonds when due will be guaranteed
under an insurance policy (the “Policy”) to be issued concurrently with the delivery of the Bonds by AGM.
See “BOND INSURANCE” herein.
The City and the Agency
The City of Oroville (the “City”) is located on California Highway 70, in the foothills of the Sierra
Nevada Mountains, 68 miles north of Sacramento and 155 miles northeast of San Francisco in Butte County
(the “County”). The City was incorporated as a city in 1906. The City operates as a charter city with a
council-administrator form of government. The City Council consists of six members elected at large for fouryear overlapping terms. The Mayor is elected at-large for a four-year term. The City Administrator is
appointed by the City Council. For certain information regarding the City, see APPENDIX A—“CITY OF
OROVILLE GENERAL INFORMATION.”
The Prior Agency was established on October 6, 1980 by the City Council of the City, pursuant to the
Community Redevelopment Law (Part 1, Division 25, commencing with Section 33000 of the Health and
Safety Code of the State) (the “Redevelopment Law”). On June 29, 2011, Assembly Bill No. 26 (“AB X1
26”) was enacted as Chapter 5, Statutes of 2011, together with a companion bill, Assembly Bill No. 27 (“AB
X1 27”). A lawsuit was brought in the California Supreme Court, California Redevelopment Association, et
al., v. Matosantos, et al., 53 Cal. 4th 231 (Cal. 2011), challenging the constitutionality of AB X1 26 and AB
X1 27. In its December 29, 2011 decision, the California Supreme Court largely upheld AB X1 26,
invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently.
As a result of AB X1 26 and the decision of the California Supreme Court in the California Redevelopment
Association case, as of February 1, 2012, all redevelopment agencies in the State were dissolved, including the
Prior Agency, and successor agencies were designated as successor entities to the former redevelopment
agencies to expeditiously wind down the affairs of the former redevelopment agencies.
The primary provisions enacted by AB X1 26 relating to the dissolution and wind down of former
redevelopment agency affairs are Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with
Section 34170) of Division 24 of the Health and Safety Code of the State, as amended on June 27, 2012 by
Assembly Bill No. 1484 (“AB 1484”), enacted as Chapter 26, Statutes of 2012 (as amended from time to time,
the “Dissolution Act”).
On January 9, 2012, pursuant to Resolution No. 7847 and Section 34173 of the Dissolution Act, the
City Council of the City elected to serve as successor agency to the Prior Agency. Subdivision (g) of
Section 34173 of the Dissolution Act, added by AB 1484, expressly affirms that the Agency is a separate
public entity from the City, that the two entities shall not merge, and that the liabilities of the Prior Agency will
not be transferred to the City nor will the assets of the Prior Agency become assets of the City.
2
The Redevelopment Plan
The City Council of the City adopted the Redevelopment Plan for the Oroville Redevelopment Project
No. 1 (the “Redevelopment Plan”) on July 6, 1981, pursuant to its Ordinance No. 1353. The Redevelopment
Plan has been amended six times. On November 15, 1994, the City Council adopted ordinance No. 1580 to
adjust the Plan’s duration and timeframe to collect tax increment revenue in conformance with the provisions
of Assembly Bill 1290 (“AB 1290”). The second amendment was adopted on December 7, 1999 pursuant to
Ordinance No. 1623, to extend the time limit to incur debt to the maximum permitted by AB 1290. The third
amendment was adopted on November 6, 2001 pursuant to Ordinance No. 1650 in order to increase the bonded
debt limit and the cumulative tax increment limit and to extend further the time limit by which to incur debt.
The fourth amendment was adopted on July 6, 2004 pursuant to Ordinance No. 1702 to extend the time limit
on the duration of the Redevelopment Plan by one year and to extend the time limit to receive property taxes
and pay loans, advances and indebtedness by one year, as allowed under SB 1045. The fifth amendment was
adopted on July 20, 2004 pursuant to Ordinance No. 1704 to eliminate the time limit on the incurrence of debt
pursuant to SB 211. The sixth amendment was adopted on December 21, 2004 by Ordinance No. 1712 to
extend the time limit on the duration of the Plan by two years pursuant to SB 1096.
The Oroville Redevelopment Project No. 1 (the “Project Area”) accounts for approximately 6,080
acres, or 72 percent of the City’s total land area, and includes the City’s historic downtown area and a diverse
mix of residential, commercial, industrial, and recreational uses, public/private rights-of-way, and public
facilities, including the Oroville Municipal Airport.
See “THE PROJECT AREA—The Oroville
Redevelopment Project Plan.”
The assessed value of the Project Area in 1980-81 (the “Base Year”) was $206,560,472 compared to
its Fiscal Year 2014-15 assessed value of $939,195,607. The Project Area is the sole project area of the
Agency. See “THE PROJECT AREA” for additional information on land use and property ownership within
the Project Area.
Tax Allocation Financing
Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of
redevelopment projects through the use of tax increment revenues. This method provided that the taxable
valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the
effective date of the ordinance which adopts the redevelopment plan becomes the base year valuation.
Assuming the taxable valuation never drops below the base year level, the taxing agencies thereafter received
that portion of the taxes produced by applying then current tax rates to the base year valuation, and the
redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the
increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency
were authorized to be pledged to the payment of agency obligations.
The Dissolution Act authorizes refunding bonds, including the Bonds, to be secured by a pledge of
monies deposited from time to time in a “Redevelopment Property Tax Trust Fund” (also referred to at times
as the “RPTTF”) held by a county auditor-controller with respect to a successor agency, which are equivalent
to the tax increment revenues that were formerly allocated under the Redevelopment Law to the redevelopment
agency and formerly authorized under the Redevelopment Law to be used for the financing of redevelopment
projects. Under the Indenture, Pledged Tax Revenues consist of the amounts deposited from time to time in
the Redevelopment Property Tax Trust Fund established pursuant to and as provided in the Dissolution Act.
See “SECURITY FOR THE BONDS—Tax Increment Financing” herein for additional information.
Successor agencies have no power to levy property taxes and must look specifically to the allocation
of taxes as described above. See “RISK FACTORS.”
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Security for the Bonds
The Dissolution Act requires the County Auditor-Controller to determine the amount of property taxes
that would have been allocated to the Prior Agency had the Prior Agency not been dissolved pursuant to the
operation of AB X1 26, using current assessed values on the last equalized roll on August 20, and to deposit
that amount in the Redevelopment Property Tax Trust Fund for the Agency established and held by the County
Auditor-Controller pursuant to the Dissolution Act. The Dissolution Act provides that any bonds authorized
thereunder to be issued by the Agency will be considered indebtedness incurred by the dissolved Prior Agency,
with the same legal effect as if the bonds had been issued prior to the effective date of AB X1 26, in full
conformity with the applicable provision of the Redevelopment Law that existed prior to that date, and will be
included in the Agency’s Recognized Obligation Payment Schedule (see APPENDIX B—“DEFINITIONS”
and “SECURITY FOR THE BONDS—Recognized Obligation Payment Schedule”).
The Dissolution Act further provides that bonds authorized thereunder to be issued by the Agency will
be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the
Redevelopment Property Tax Trust Fund, and that property tax revenues pledged to any bonds authorized
under the Dissolution Act, such as the Bonds, are taxes allocated to the Agency pursuant to the provisions of
the Redevelopment Law and the State Constitution which provided for the allocation of tax increment revenues
under the Redevelopment Law, as described in the foregoing paragraph.
In accordance with the Dissolution Act, “Pledged Tax Revenues” are defined under the Indenture as
the monies deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to
subdivision (c) of Section 34172 of the Dissolution Act, as provided in paragraph (2) of subdivision (a) of
Section 34183 of the Dissolution Act, excluding amounts payable under Pass-Through Agreements and
Statutory Pass-Through Amounts. If, and to the extent, that the provisions of Section 34172 or paragraph (2)
of subdivision (a) of Section 34183 are invalidated by a final judicial decision, then the Indenture states that
Pledged Tax Revenues shall include all tax revenues allocated to the payment of indebtedness pursuant to
Health & Safety Code Section 33670 or such other section as may be in effect at the time providing for the
allocation of tax increment revenues in accordance with Article XVI, Section 16 of the California Constitution.
The Bonds are payable from and equally and ratably secured, without preference or distinction as to
Series, by the Pledged Tax Revenues to be derived from the Project Area, all of the monies in the
Redevelopment Obligation Retirement Fund established and held by the Agency pursuant to the Dissolution
Act, and all of the monies in the Debt Service Fund (including the Interest Account, the Principal Account, the
Reserve Account, and the Redemption Account therein) established and held by the Trustee under the
Indenture. Taxes levied on the property within the Project Area on that portion of the taxable valuation over
and above the taxable valuation of the applicable base year property tax roll with respect to the various
territories within the Project Area, to the extent they constitute Pledged Tax Revenues, as described herein,
will be deposited in the Redevelopment Property Tax Trust Fund for transfer by the County Auditor-Controller
to the Agency’s Redevelopment Obligation Retirement Fund on January 2 and June 1 of each year to the
extent required for payments listed in the Agency’s Recognized Obligation Payment Schedule in accordance
with the requirements of the Dissolution Act (see “SECURITY FOR THE BONDS—Recognized Obligation
Payment Schedule”). RPTTF monies disbursed to the Agency for payments shown on the Recognized
Obligation Payment Schedule for the fiscal period from July 1 through December 31 represent tax revenues
collected by the County during the prior Fiscal Year. Monies deposited by the County Auditor-Controller into
the Agency’s Redevelopment Obligation Retirement Fund will be transferred by the Agency to the Trustee for
deposit in the Debt Service Fund established under the Indenture and administered by the Trustee in
accordance with the Indenture.
Successor agencies have no power to levy property taxes and must look specifically to the allocation
of taxes as described above. See “RISK FACTORS.”
4
No Outstanding Bonds
Upon the refunding of the Refunded Obligations, no senior or parity debt will remain outstanding that
has a senior or parity pledge on Pledged Tax Revenues.
Reserve Account
In order to further secure the payment of the principal of and interest on the Bonds, a Reserve Account
within the Debt Service Fund is created pursuant to the Indenture in an amount equal to the Reserve
Requirement. “Reserve Requirement” means, as of the date of computation, an amount equal to the combined
lesser of (i) Maximum Annual Debt Service on the Bonds and any Parity Bonds, (ii) 10% of the net proceeds
of the Bonds and any Parity Bonds, or (iii) 125% of the Annual Debt Service on all Bonds and Parity Bonds
Outstanding. The Reserve Account will initially be funded with the Reserve Policy to be issued by the Insurer
in the amount of the Reserve Requirement.
Bond Insurance
The scheduled payment of principal of and interest on certain of the Bonds when due will be
guaranteed under an insurance policy to be delivered concurrently with the issuance of the Bonds. The
Agency will decide which Bonds to insure at the time of pricing.
Changes to the Official Statement
On Tuesday, March 24, 2015, the City Council terminated the employment of Randy Murphy, the
former City Administrator and Executive Director of the Agency. The City Council appointed Don Rust to
serve as Acting City Administrator and Acting Executive Director.
Further Information
Brief descriptions of the Bonds, the Indenture, the Agency, the Prior Agency and the City are included
in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive.
All references herein to the Indenture, the Bond Law, the Redevelopment Law, the Dissolution Act, the
Constitution and the laws of the State as well as the proceedings of the Prior Agency, the Agency and the City
are qualified in their entirety by reference to such documents. References herein to the Bonds are qualified in
their entirety by the form thereof included in the Indenture and the information with respect thereto included
herein, copies of which are all available for inspection at the offices of the Agency. During the period of the
offering of the Bonds, copies of the forms of all documents are available at the offices of Southwest Securities,
Inc., 2533 South Coast Hwy 101, Suite 250, Cardiff by the Sea, California 92007, and thereafter from the City
Clerk’s office, City of Oroville, 1735 Montgomery Street, Oroville, California 95965.
PLAN OF REFUNDING
A portion of the proceeds of the 2015A Bonds will be used to currently refund and defease all of the
Prior Agency’s previously incurred (i) 2002 Loan Obligation, currently outstanding in the principal amount of
$12,555,000; and (ii) 2004A Loan Obligation, currently outstanding in the principal amount of $8,480,000.
See “SOURCES AND USES OF FUNDS.”
A portion of the 2015B Bonds will be used to advance refund and defease all of the Prior Agency’s
previously incurred 2004B Loan Obligation, currently outstanding in the principal amount of $555,000.
Concurrently with the issuance of the Bonds, the Agency will enter into a 2002 Loan Escrow
Agreement, a 2004A Loan Escrow Agreement and a 2004B Loan Escrow Agreement, each dated as of April 1,
2015 (collectively, the “Escrow Agreements”), and each with MUFG Union Bank, N.A., San Francisco,
5
California, as escrow bank (the “Escrow Bank”). Under each Escrow Agreement, the Escrow Bank will create
and establish escrow funds, to be known as, respectively, the 2002 Loan Escrow Fund, the 2004A Loan
Escrow Fund and the 2004B Loan Escrow Fund (collectively, the “Escrow Funds”).
Amounts in the 2002 Loan Escrow Fund will be held uninvested or invested in Federal Securities (as
defined in the Indenture of Trust related to the 2002 Loan) and will be used to pay the redemption price on the
Refunded Obligations consisting of 2002 Loan Obligations, including any accrued and unpaid interest with
respect thereto, on May 4, 2015. Amounts in the 2004A Loan Escrow Fund will be held uninvested or
invested in Federal Securities (as defined in the Indenture of Trust related to the 2002 Loan) and will be used
to pay the redemption price on the Refunded Obligations consisting of 2004A Loan Obligations, including any
accrued and unpaid interest with respect thereto, on May 4, 2015. Amounts in the 2004B Loan Escrow Fund
will be invested in certain Federal Securities (as defined in the Indenture of Trust related to the 2004B Loan)
and will be used to pay the principal and interest on the Refunded Obligations consisting of 2004B Loan
Obligations as it accrues, through September 15, 2016 (final maturity).
The monies deposited in the Escrow Funds will be held solely for the benefit of the holders of the
respective Refunded Obligations and will not serve as a security or be available for payment of principal of, or
interest on, or premium, if any, on the Bonds.
Sufficiency of the deposit in the 2004B Loan Escrow Fund for such purposes will be verified by Grant
Thornton LLP (the “Verification Agent”). Assuming the accuracy of such computations, as a result of the
deposit and application of funds pursuant to the Escrow Agreements, the lien upon the Pledged Tax Revenues
of the Refunded Obligations will be discharged, and the Refunded Obligations will no longer have any claim
against the Pledged Tax Revenues.
Verification of Mathematical Computations
Upon issuance of the Bonds, the Verification Agent will deliver a report on the mathematical accuracy
of certain computations based upon certain information and assertions provided to it by Southwest Securities,
Inc. (the “Underwriter”) relating to the adequacy of the cash to be deposited in the 2004B Loan Escrow Fund
to pay principal and interest accruing on the 2004B Loan through September 15, 2016.
6
SOURCES AND USES OF FUNDS
The estimated sources and uses of funds for the 2015A Bonds are summarized as follows:
2015A BONDS
Sources
Principal Amount of Bonds
Original Issue Premium
2002 and 2004A Authority Bonds Funds and Accounts
Total Sources
Uses
Underwriter’s Discount
2002 Loan Escrow Fund (1)
2004A Loan Escrow Fund(2)
Costs of Issuance Fund(3)
Total Uses
(1)
(2)
(3)
$
$
$
$
18,380,000.00
1,430,854.60
1,864,963.12
21,675,817.72
170,015.00
12,614,163.73
8,520,133.82
371,505.17
21,675,817.72
An amount of moneys sufficient to provide for the payment of the principal and interest on the 2002 Loan Obligation
through April 20, 2015.
An amount of moneys sufficient to provide for the payment of the principal and interest on the 2004A Loan Obligation
through April 20, 2015.
Costs of Issuance include fees and expenses for Bond Counsel, Disclosure Counsel, Fiscal Consultant, Verification Agent,
trustee, printing expenses, rating fee, bond insurance premium, Reserve Policy premium, and other costs.
The estimated sources and uses of funds for the 2015B Bonds are summarized as follows:
2015B BONDS
Sources
Principal Amount of Bonds
Original Issue Premium
2004B Authority Bonds Funds and Accounts
Total Sources
$
$
Uses
Underwriter’s Discount
2004B Loan Escrow Fund(1)
Costs of Issuance Fund(2)
Total Uses
(1)
(2)
$
$
525,000.00
76,158.71
601,158.71
4,856.25
586,083.75
10,218.71
601,158.71
An amount of moneys sufficient to provide for the payment of the principal and interest, and redemption premium on the
2004B Bonds through September 15, 2016.
Costs of Issuance include fees and expenses for Bond Counsel, Disclosure Counsel, Fiscal Consultant, Verification Agent,
trustee, printing expenses, rating fee, bond insurance premium, Reserve Policy premium, and other costs.
7
THE BONDS
Authority for Issuance
The Bonds were authorized for issuance pursuant to the Indenture, the Bond Law, and the Dissolution
Act.
Description of the Bonds
The Bonds will be executed and delivered as one fully-registered Bond in the denomination of $5,000
or any integral multiple thereof for each maturity, initially in the name of Cede & Co., as nominee for The
Depository Trust Company, New York, New York (“DTC”), as registered owner of all Bonds. See “BookEntry System” below. The initially executed and delivered Bonds will be dated the Delivery Date and mature
on September 15 in the years and in the amounts shown on the inside cover page of this Official Statement.
Interest on the Bonds will be calculated at the rates shown on the inside cover page of this Official Statement,
payable semiannually on March 15 and September 15 in each year, commencing on September 15, 2015, by
check mailed to the registered owners thereof or upon the request of the Owners of $1,000,000 or more in
principal amount of Bonds, by wire transfer to an account in the United States which shall be designated in
written instructions by such Owner to the Trustee at least fifteen (15) days prior to such Record Date preceding
the Interest Payment Date.
Book-Entry System
DTC, New York, New York, will act as securities depository for the Bonds. The Bonds will be issued
as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other
name as may be requested by an authorized representative of DTC. One fully-registered certificate will be
issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be
deposited with DTC. See APPENDIX D—“BOOK-ENTRY ONLY SYSTEM.”
Redemption and Purchase of Bonds
Optional Redemption of 2015A Bonds. The 2015A Bonds maturing on or before September 15, 2024
are not subject to redemption prior to maturity. The 2015A Bonds maturing on and after September 15, 2025
are subject to redemption prior to maturity in whole, or in part in the manner determined by the Agency, on
any date on or after March 15, 2025, from any available source of funds, at a redemption price equal to the
principal amount thereof, together with accrued interest thereon to the redemption date, without premium.
In the event the Agency elects to redeem 2015A Bonds, the Agency will give written notice to the
Trustee of its election so to redeem, the redemption date and the principal amount of the 2015A Bonds to be
redeemed. The notice to the Trustee will be given at least 45 but no more than 60 days prior to the redemption
date or such shorter period as is acceptable to the Trustee in the sole determination of the Trustee, such notice
for the convenience of the Trustee.
Purchase in Lieu of Redemption. In lieu of optional redemption of Bonds, amounts on deposit in the
Redevelopment Obligation Retirement Fund (to the extent not required to be transferred to the Trustee during
the current Bond Year) may also be used and withdrawn by the Agency at any time for the purchase of the
Bonds at public or private sale as and when and at such prices (including brokerage and other charges and
including accrued interest) as the Agency may in its discretion determine. The par amount of any of the Bonds
so purchased by the Agency and surrendered to the Trustee for cancellation in any twelve-month period ending
on August 15 in any year will be credited towards and will reduce the principal amount of the Bonds otherwise
required to be redeemed on the following September 15 pursuant to the Indenture.
8
No Optional Redemption of 2015B Bonds. The 2015B Bonds are not subject to redemption prior to
maturity.
SECURITY FOR THE BONDS
The Dissolution Act requires the County Auditor-Controller to determine the amount of property taxes
that would have been allocated to the Prior Agency (pursuant to subdivision (b) of Section 16 of Article XVI
of the State Constitution) had the Prior Agency not been dissolved pursuant to the operation of AB X1 26,
using current assessed values on the last equalized roll on August 20, and to deposit that amount in the
Redevelopment Property Tax Trust Fund for the Agency established and held by the County AuditorController pursuant to the Dissolution Act. The Dissolution Act provides that any bonds authorized thereunder
to be issued by the Agency will be considered indebtedness incurred by the dissolved Prior Agency, with the
same legal effect as if the bonds had been issued prior to effective date of AB X1 26, in full conformity with
the applicable provisions of the Redevelopment Law that existed prior to that date, and will be included in the
Agency’s Recognized Obligation Payment Schedule (see APPENDIX B—“DEFINITIONS” and “SECURITY
FOR THE BONDS—Recognized Obligation Payment Schedule”).
The Dissolution Act further provides that bonds authorized thereunder to be issued by the Agency will
be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the
Redevelopment Property Tax Trust Fund, and that property tax revenues pledged to any bonds authorized to be
issued by the Agency under the Dissolution Act, including the Bonds, are taxes allocated to the Agency
pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 16 of Article XVI of the
State Constitution.
Pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 16 of
Article XVI of the Constitution of the State and as provided in the Redevelopment Plan, taxes levied upon
taxable property in the Project Area each year by or for the benefit of the State, any city, county, city and
county, district, or other public corporation (herein sometimes collectively called “taxing agencies”) after the
effective date of the ordinance approving the Redevelopment Plan, or the respective effective dates of
ordinances approving amendments to the Redevelopment Plan that added territory to the Project Area, as
applicable, are to be divided as follows:
(a)
To Taxing Agencies: That portion of the taxes which would be produced by the rate upon
which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value
of the taxable property in the Project Area as shown upon the assessment roll used in connection with the
taxation of such property by such taxing agency last equalized prior to the effective date of the ordinance
adopting the Redevelopment Plan, or the respective effective dates of ordinances approving amendments to the
Redevelopment Plan that added territory to the Project Area, as applicable (each, a “base year valuation”), will
be allocated to, and when collected will be paid into, the funds of the respective taxing agencies as taxes by or
for the taxing agencies on all other property are paid; and
(b)
To the Prior Agency/Agency: Except for that portion of the taxes in excess of the amount
identified in (a) above which are attributable to a tax rate levied by a taxing agency for the purpose of
producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on,
any bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989 for the
acquisition or improvement of real property, which portion shall be allocated to, and when collected shall be
paid into, the fund of that taxing agency, that portion of the levied taxes each year in excess of such amount,
annually allocated within the Plan Limit following the Delivery Date, when collected will be paid into a
special fund of the Prior Agency. Section 34172 of the Dissolution Act provides that, for purposes of
Section 16 of Article XVI of the State Constitution, the Redevelopment Property Tax Trust Fund shall be
deemed to be a special fund of the Agency to pay the debt service on indebtedness incurred by the Prior
Agency or the Agency to finance or refinance the redevelopment projects of the Prior Agency.
9
That portion of the levied taxes described in paragraph (b) above, less amounts deducted pursuant to
Section 34183(a) of the Dissolution Act for permitted administrative costs of the County Auditor-Controller,
constitute the amounts required under the Dissolution Act to be deposited by the County Auditor-Controller
into the Redevelopment Property Tax Trust Fund. In addition, Section 34183 of the Dissolution Act
effectively eliminates the January 1, 1989 date from paragraph (b) above.
“Pledged Tax Revenues” are defined under the Indenture as the monies deposited from time to time in
the Redevelopment Property Tax Trust Fund established pursuant to subdivision (c) of Section 34172 of the
Dissolution Act, as provided in paragraph (2) of subdivision (a) of Section 34183 of the Dissolution Act,
excluding amounts payable under Pass-Through Agreements and Statutory Pass-Through Amounts; provided,
if, and to the extent, that the provisions of Section 34172 or paragraph (2) of subdivision (a) of Section 34183
are invalidated by a final judicial decision, then Pledged Tax Revenues shall include all tax revenues allocated
to the payment of indebtedness pursuant to Health & Safety Code Section 33670 or such other section as may
be in effect at the time providing for the allocation of tax increment revenues in accordance with Article XVI,
Section 16 of the California Constitution. The Bonds are payable from and secured by the Pledged Tax
Revenues to be derived from the Project Area.
The Bonds are payable from and secured by (i) an irrevocable pledge of the Pledged Tax Revenues to
be derived from the Project Area, (ii) an irrevocable pledge of all of the monies in the Redevelopment
Obligation Retirement Fund established and held by the Agency pursuant to the Dissolution Act, and (iii) an
irrevocable first pledge and lien on all of the monies in the Debt Service Fund (including the Interest Account,
the Principal Account, the Reserve Account, and the Redemption Account therein) established and held by the
Trustee in trust for the Bondowners under the Indenture.
Taxes levied on the property within the Project Area on that portion of the taxable valuation over and
above the taxable valuation of the applicable base year property tax roll with respect to the various territories
within the Project Area, to the extent they constitute Pledged Tax Revenues, as described herein, will be
deposited in the Redevelopment Property Tax Trust Fund for transfer by the County Auditor-Controller to the
Agency’s Redevelopment Obligation Retirement Fund on January 2 and June 1 of each year to the extent
required for payments listed in the Agency’s Recognized Obligation Payment Schedule in accordance with the
requirements of the Dissolution Act (see “SECURITY FOR THE BONDS—Recognized Obligation Payment
Schedule”). RPTTF monies disbursed to the Agency for payments shown on the Recognized Obligation
Payment Schedule for the fiscal period from July 1 through December 31 represent tax revenues collected by
the County during the prior Fiscal Year. Monies deposited by the County Auditor-Controller into the
Agency’s Redevelopment Obligation Retirement Fund will be transferred by the Agency to the Trustee for
deposit in the Debt Service Fund established under the Indenture and administered by the Trustee in
accordance with the Indenture.
The Agency has no power to levy and collect taxes, and various factors beyond its control could affect
the amount of Pledged Tax Revenues available in any six-month period to pay the principal of and interest on
the Bonds (see “SECURITY FOR THE BONDS—Tax Increment Financing” and “—Recognized Obligation
Payment Schedule” and “RISK FACTORS”).
The Bonds are not a debt of the City, the State or any of its political subdivisions (except the Agency),
and none of the City, the State or any of its political subdivisions (except the Agency) is liable therefor. The
Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or
restriction.
Tax Increment Financing
Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of
redevelopment projects through the use of tax increment revenues. This method provided that the taxable
valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the
10
effective date of the ordinance which adopts the redevelopment plan becomes the base year valuation.
Assuming the taxable valuation never drops below the base year level, the taxing agencies thereafter received
that portion of the taxes produced by applying then current tax rates to the base year valuation, and the
redevelopment agency was allocated the remaining portion produced by applying then current tax rates to the
increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency
were authorized to be pledged to the payment of agency obligations.
The Dissolution Act authorizes refunding bonds, including the Bonds, to be secured by a pledge of
monies deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county auditorcontroller with respect to a successor agency, which are equivalent to the tax increment revenues that were
formerly allocated under the Redevelopment Law to the redevelopment agency and formerly authorized under
the Redevelopment Law to be used for the financing of redevelopment projects, less amounts deducted
pursuant to Section 34183(a) of the Dissolution Act for permitted administrative costs of the county auditorcontroller. Under the Indenture, Pledged Tax Revenues consist of the amounts deposited from time to time in
the Redevelopment Property Tax Trust Fund established pursuant to and as provided in the Dissolution Act,
subject to the prior pledge and first lien of the Pass-Through Agreements and Statutory Pass-Through Amounts
(see “THE PROJECT AREA—Pass-Through Agreements” and “—Statutory Pass-Through Amounts”).
Successor agencies have no power to levy property taxes and must look specifically to the allocation of taxes
as described above. See “RISK FACTORS.”
Prior to the dissolution of redevelopment agencies, tax increment revenues from one project area
could not be used to repay indebtedness incurred for another project area. However, the Dissolution Act has
only required that county auditor-controllers establish a single Redevelopment Property Tax Trust Fund with
respect to each former redevelopment agency within the respective county. Additionally, the Dissolution Act
now requires that all revenues equivalent to the amount that would have been allocated as tax increment to the
former redevelopment agency will be allocated to the Redevelopment Property Tax Trust Fund of the
applicable successor agency, and this requirement does not require funds derived from separate project areas of
a former redevelopment agency to be separated. In effect, in situations where a former redevelopment agency
had established more than one redevelopment project area, the Dissolution Act combines the property tax
revenues derived from all project areas into a single trust fund, the Redevelopment Property Tax Trust Fund, to
repay indebtedness of the former redevelopment agency or the successor agency. To the extent the documents
governing outstanding bonds of a redevelopment agency have pledged revenues derived from a specific project
area, the Dissolution Act states, “It is the intent . . . that pledges of revenues associated with enforceable
obligations of the former redevelopment agencies are to be honored. It is intended that the cessation of any
redevelopment agency shall not affect either the pledge, the legal existence of that pledge, or the stream of
revenues available to meet the requirements of the pledge.” The implications of these provisions of the
Dissolution Act are not entirely clear when a former redevelopment agency has established more than one
redevelopment project area. However, with respect to the Bonds, the Prior Agency established only one
redevelopment project area, which is the Project Area. Therefore, all of the Pledged Tax Revenues will derive
solely from the Project Area, and the Agency has no obligations deriving from any project area other than the
Project Area.
The Redevelopment Law authorized redevelopment agencies to make payments to school districts and
other taxing agencies to alleviate any financial burden or detriments to such taxing agencies caused by a
redevelopment project. The Prior Agency entered into several agreements for this purpose (the “Pass-Through
Agreements”). Additionally, Sections 33607.5 and 33607.7 of the Redevelopment Law required mandatory
tax sharing applicable to redevelopment projects adopted after January 1, 1994, or amended thereafter in
certain manners specified in such statutes (the “Statutory Pass-Through Amounts”). The Dissolution Act
requires the County Auditor-Controller to distribute from the Redevelopment Property Tax Trust Fund
amounts required to be distributed under the Pass-Through Agreements and for Statutory Pass-Through
Amounts to the taxing entities for each six-month period before amounts are distributed by the County
Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Agency’s Redevelopment
Obligation Retirement Fund each January 2 and June 1, unless (i) pass-through payment obligations have
11
previously been made subordinate to debt service payments for the bonded indebtedness of the Prior Agency,
as succeeded by the Agency, (ii) the Agency has reported, no later than the December 1 and May 1 preceding
the January 2 or June 1 distribution date, that the total amount available to the Agency from the
Redevelopment Property Tax Trust Fund allocation to the Agency’s Redevelopment Obligation Retirement
Fund, from other funds transferred from the Prior Agency, and from funds that have or will become available
through asset sales and all redevelopment operations is insufficient to fund the Agency’s enforceable
obligations, pass-through payments, and the Agency’s administrative cost allowance for the applicable sixmonth period, and (iii) the State Controller has concurred with the Agency that there are insufficient funds for
such purposes for the applicable six-month period.
If the requirements stated in clauses (i) through (iii) of the foregoing paragraph have been met, the
Dissolution Act provides for certain modifications in the distributions otherwise calculated to be distributed for
such six-month period. To provide for calculated shortages to be paid to the Agency for enforceable
obligations, the amount of the deficiency will first be deducted from the residual amount otherwise calculated
to be distributed to the taxing entities under the Dissolution Act after payment of the Agency’s enforceable
obligations, pass-through payments, and the Agency’s administrative cost allowance. If such residual amount
is exhausted, the amount of the remaining deficiency will be deducted from amounts available for distribution
to the Agency for administrative costs for the applicable six-month period in order to fund the enforceable
obligations. Finally, funds required for servicing bond debt may be deducted from the amounts to be
distributed under expressly-subordinated Pass-Through Agreements and for Statutory Pass-Through Amounts,
in order to be paid to the Agency for enforceable obligations, but only after the amounts described in the
previous two sentences have been exhausted. The Dissolution Act provides for a procedure by which the
Agency may make Statutory Pass-Through Amounts subordinate to the Bonds; however, the Agency has
determined not to undertake such procedure, and therefore, Statutory Pass-Through Amounts are not
subordinate to the Bonds (see “THE PROJECT AREA—Statutory Pass-Through Amounts”).
The Agency cannot guarantee that this process prescribed by the Dissolution Act of administering the
Pledged Tax Revenues and the subordinations provided in the Pass-Through Agreements will effectively result
in adequate Pledged Tax Revenues for the payment of principal and interest on the Bonds when due. See
“RISK FACTORS—Recognized Obligation Payment Schedule.”
See “THE PROJECT AREA—Pass-Through Agreements” and “—Statutory Pass-Through Amounts”
for additional information regarding the Pass-Through Agreements and the Statutory Pass-Through Amounts
applicable to the Agency and the revenues derived from the Project Area. See also “PLEDGED TAX
REVENUES—Projected Taxable Valuation and Pledged Tax Revenues.”
Recognized Obligation Payment Schedule
ROPS Process Under the Dissolution Act. Before each six-month period, the Dissolution Act
requires successor agencies to prepare and submit to the successor agency’s oversight board and the State
Department of Finance for approval a Recognized Obligation Payment Schedule (the “Recognized Obligation
Payment Schedule”) pursuant to which enforceable obligations (as defined in the Dissolution Act) of the
successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation.
As defined in the Dissolution Act, “enforceable obligation” includes bonds, including the required debt
service, reserve set-asides, and any other payments required under the indenture or similar documents
governing the issuance of the outstanding bonds of the former redevelopment agency, as well as other
obligations such as loans, judgments or settlements against the former redevelopment agency, any legally
binding and enforceable agreement that is not otherwise void as violating the debt limit or public policy,
contracts necessary for the administration or operation of the successor agency, and amounts borrowed from
the Low and Moderate Income Housing Fund. A reserve may be included on the Recognized Obligation
Payment Schedule and held by the successor agency when required by the bond indenture or when the next
property tax allocation will be insufficient to pay all obligations due under the provisions of the bond for the
next payment due in the following six-month period (see “THE INDENTURE—Covenants of the Agency”).
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Under the Dissolution Act, the categories of sources of payments for enforceable obligations listed on
a Recognized Obligation Payment Schedule are the following: (i) the Low and Moderate Income Housing
Fund, (ii) bond proceeds, (iii) reserve balances, (iv) administrative cost allowance, (v) the Redevelopment
Property Tax Trust Fund (but only to the extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or otherwise required under the Dissolution
Act), or (vi) other revenue sources (including rents, concessions, asset sale proceeds, interest earnings, and any
other revenues derived from the former redevelopment agency, as approved by the oversight board).
The Dissolution Act provides that, commencing on the date the first Recognized Obligation Payment
Schedule is valid thereunder, only those payments listed in the Recognized Obligation Payment Schedule may
be made by the Agency from the funds specified in the Recognized Obligation Payment Schedule.
The Recognized Obligation Payment Schedule must be submitted by the Agency, after approval by
the Oversight Board, to the County Administrative Officer, the County Auditor-Controller, the State
Department of Finance, and the State Controller by 90 days before the date of the next January 2 or June 1
property tax distribution. If the Agency does not submit a Recognized Obligation Payment Schedule by such
deadlines, the City will be subject to a civil penalty equal to $10,000 per day for every day the schedule is not
submitted to the State Department of Finance. Additionally, the Agency’s administrative cost allowance is
reduced by 25% if the Agency does not submit a Recognized Obligation Payment Schedule by the 80th day
before the date of the next January 2 or June 1 property tax distribution, as applicable.
The Dissolution Act requires the State Department of Finance to make a determination of the
enforceable obligations and the amounts and funding sources of the enforceable obligations no later than 45
days after the Recognized Obligation Payment Schedule is submitted. Within five business days of the
determination by the State Department of Finance, the Agency may request additional review by the
department and an opportunity to meet and confer on disputed items, if any. The State Department of Finance
will notify the Agency and the County Auditor-Controller as to the outcome of its review at least 15 days
before the January 2 or June 1 date of property tax distribution, as applicable. Additionally, the County
Auditor-Controller may review a submitted Recognized Obligation Payment Schedule and object to the
inclusion of any items that are not demonstrated to be enforceable obligations and may object to the funding
source proposed for any items, provided that the County Auditor-Controller must provide notice of any such
objections to the Agency, the Oversight Board, and the State Department of Finance at least 60 days prior to
the January 2 or June 1 date of property tax distribution, as applicable.
In connection with the allocation and distribution by the County Auditor-Controller of property tax
revenues deposited in the Redevelopment Property Tax Trust Fund, under the Dissolution Act the County
Auditor-Controller must prepare estimates of the amounts of (i) property tax to be allocated and distributed and
(ii) the amounts of pass-through payments to be made in the upcoming six-month period, and provide those
estimates to the entities receiving the distributions and the State Department of Finance no later than October 1
and April 1 of each year, as applicable. If, after receiving such estimate from the County Auditor-Controller,
the Agency determines and reports, no later than December 1 or May 1, as applicable (i.e., by May 1, 2015
with respect to the Recognized Obligation Payment Schedule for July 1, 2015 through December 31, 2015),
that the total amount available to the Agency from the Redevelopment Property Tax Trust Fund allocation to
the Agency’s Redevelopment Obligation Retirement Fund, from other funds transferred from the Prior
Agency, and from funds that have or will become available through asset sales and all redevelopment
operations, is insufficient to fund the payment of pass-through obligations, for Agency enforceable obligations
listed on the Recognized Obligation Payment Schedule, and for the Agency’s administrative cost allowance,
the County Auditor-Controller must notify the State Controller and the State Department of Finance no later
than 10 days from the date of the Agency’s notification. If the State Controller concurs that there are
insufficient funds to pay required debt service, the Dissolution Act provides for certain adjustments to be made
to the estimated distributions, as described in more detail under “SECURITY FOR THE BONDS—Tax
Increment Financing” above.
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The Agency has timely submitted to the County Administrative Officer, the County AuditorController, the State Department of Finance, and the State Controller its Oversight Board-approved
Recognized Obligation Payment Schedules for each six-month period since the effective date of the
Dissolution Act.
The Agency’s historical practice has been to list debt service due on the Refunded Obligations on the
Recognized Obligation Payment Schedules for the six-month fiscal period during which such debt service was
due. The County Auditor-Controller accordingly distributed RPTTF monies to the Agency for debt service
due in each six-month fiscal period. Going forward, consistent with the Indenture, the Agency will list the
entire amount of debt service due in each Fiscal Year on the Recognized Obligation Payment Schedule for the
period from July 1 through December 31 of such year.
Statutory Limitations on Review of Bonds on ROPS by DOF. The Dissolution Act provides that any
bonds authorized thereunder to be issued by the Agency will be considered indebtedness incurred by the
dissolved Prior Agency, with the same legal effect as if the bonds had been issued prior to effective date of
AB X1 26, in full conformity with the applicable provision of the Redevelopment Law that existed prior to that
date, and will be included in the Agency’s Recognized Obligation Payment Schedule. Section 34177.5(f) of
the Dissolution Act additionally provides that if the State Department of Finance has requested review of the
Oversight Board Resolution and, after review, has approved the resolution, the scheduled payments on the
Bonds shall be listed in the Recognized Obligation Payment Schedule and will not be subject to further review
and approval by the State Department of Finance or the State Controller.
The DOF Determination Letter includes the following statement: “This approval is based on the
understanding that no refunding bonds will be issued unless such bonds meet the limitations in HSC
Section 34177.5(a). Following the issuance, the payments for the refunding bonds should be placed on future
Recognized Obligation Payment Schedule (ROPS) for [DOF’s] review.” The issuance of the Bonds will be
accompanied by approving legal opinions regarding the due and valid authorization of the Bonds under the
Bond Law, Health and Safety Code Section 34177.5, the Successor Agency Resolution, the Oversight Board
Resolution, and the Indenture, all substantially in the forms attached hereto as Appendix C. See, however,
“RISK FACTORS—No Validation Proceeding Undertaken.”
Further, the Agency has covenanted in the Indenture to take all actions required under the Dissolution
Act to include scheduled debt service on the Bonds, as well as any amount required under the Indenture to
replenish the Reserve Account of the Debt Service Fund, in Recognized Obligation Payment Schedules for
each six-month period so as to enable the County Auditor-Controller to distribute from the Redevelopment
Property Tax Trust Fund to the Agency’s Redevelopment Obligation Retirement Fund on each January 2 and
June 1 amounts required for the Agency to pay principal of, and interest on, the Bonds coming due in the
respective six-month period, including listing a reserve on the Recognized Obligation Payment Schedule to the
extent required by the Indenture or when the next property tax allocation is projected to be insufficient to pay
all obligations due under the provisions of the Bonds for the next payment due in the following six-month
period (see “THE INDENTURE—Covenants of the Agency”).
No Outstanding Bonds
Upon the refunding of the Refunded Obligations, no senior or parity debt will remain outstanding that
has senior or parity pledge on Pledged Tax Revenues.
Parity Bonds
Under the Indenture, in addition to the Bonds and subject to the requirements of the Indenture, the
Successor Agency may issue or incur Parity Bonds in such principal amount as is determined by the Successor
Agency, pursuant to a separate or Supplemental Indenture adopted or entered into by the Successor Agency
and Trustee for purposes of refunding existing obligations of the Successor Agency as permitted under the
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Dissolution Act, including without limitation Section 34177.5 thereof. The Successor Agency may issue or
incur such Parity Bonds subject to the following specific conditions precedent:
Section 34177.5 of the Dissolution Act presently permits successor agencies to issue bonds or incur
other indebtedness secured by property tax revenues comprised of former tax increment and required to be
deposited into the respective Redevelopment Property Tax Trust Fund for the applicable successor agency
under limited circumstances:
(i)
to provide savings to the successor agency;
(ii)
for the purpose of financing debt service spikes, including balloon maturities;
provided, (A) the existing indebtedness is not accelerated, except to the extent necessary to achieve
substantially level debt service, and (B) the principal amount of the refunding bonds or the indebtedness will
not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary
debt service reserves, and to pay related costs of issuance;
(iii)
for the purpose of amending an existing enforceable obligation under which the
successor agency is obligated to reimburse a political subdivision of the state for the payment of debt service
on a bond or other obligation of the political subdivision or to pay all or a portion of the debt service on the
bond or other obligation of the political subdivision to provide savings to the successor agency, when such
amendment is in connection with a refunding of the bonds or other obligations of the separate political
subdivision so that the enforceable obligation will apply to the refunding obligations of the political
subdivision; or
(iv)
for the purpose of making payments under an existing enforceable obligation when
the enforceable obligation includes the irrevocable pledge of property tax increment (i.e., formerly tax
increment revenues prior to the effective date of the Dissolution Act) or other funds and the obligation to issue
bonds secured by that pledge.
When bonds are issued pursuant to the situations contemplated in clauses (i) and (iii), the following
two constraints apply to the size of the financing: (A) the total interest cost to maturity on the refunding bonds
or indebtedness plus the principal amount of the refunding bonds or other indebtedness will not exceed the
total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining
principal of the bonds or other indebtedness to be refunded, and (B) the principal amount of the refunding
bonds or the indebtedness will not exceed the amount required to defease the refunded bonds or other
indebtedness, to establish customary debt service reserves, and to pay related costs of issuance. If the
foregoing conditions are satisfied, the initial principal amount of the refunding bonds or indebtedness may be
greater than the outstanding principal amount of the bonds or other indebtedness to be refunded. The
successor agency may pledge to the refunding bonds or other indebtedness the revenues pledged to the bonds
or other indebtedness being refunded, having the same lien priority as the pledge of the bonds or other
obligations to be refunded.
Subject to the foregoing, the Agency may issue or incur such Parity Bonds subject to the following
additional specific conditions precedent:
(a)
The Agency will be in compliance with all covenants set forth in the Indenture;
(b)
The Oversight Board shall have approved the issuance of Parity Bonds;
(c)
The Parity Bonds will be on such terms and conditions as may be set forth in a separate or
Supplemental Indenture, which will provide for (i) bonds substantially in accordance with the Indenture, and
(ii) the deposit of moneys into the Reserve Account in an amount sufficient, together with the balance of the
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Reserve Account, to equal the Reserve Requirement on all Bonds expected to be outstanding, including the
Parity Bonds;
(d)
Receipt of a certificate or opinion of an Independent Financial Consultant stating:
(i)
For the current and each future Bond Year the debt service for each such Bond Year
with respect to all Bonds and other Parity Bonds reasonably expected to be outstanding following the issuance
of the Parity Bonds;
(ii)
For the then current Fiscal Year, the Pledged Tax Revenues to be received by the
Agency based upon the most recently certified assessed valuation of taxable property in the Project Area
provided by the appropriate officer of the County;
(iii)
For each future Fiscal Year, the Pledged Tax Revenues referred to in item (ii)
together with (a) the amount determined in accordance with Section 51(a) of the California Revenue and
Taxation Code and (b) the amount of Pledged Tax Revenues to be payable with respect to construction
completed but not yet on the tax roll, and taking into account the expiration of the time to receive Pledged Tax
Revenues with respect to any portion of the Project Area and any amounts to be paid pursuant to the Pass
Through Agreements and the Statutory Pass-Through Amounts; and
(iv)
That for the then current Fiscal Year, the Pledged Tax Revenues referred to in item
(ii) and for each future Fiscal Year the Pledged Tax Revenues referred to in item (iii) are at least equal to the
sum of 125% of the Maximum Annual Debt Service with respect to the amounts referred to in item (i) above
(excluding debt service with respect to any portion of the Parity Bonds deposited in an escrowed proceeds
account to the extent such debt service is paid from earnings on the investment of such funds), and, for the then
current Fiscal Year, 100% of Annual Debt Service with respect to any subordinate debt and that the Agency is
entitled under the Dissolution Act, the Redevelopment Law and the Redevelopment Plan to receive taxes under
Section 33670 of the Redevelopment Law in an amount sufficient to meet expected debt service with respect to
all Bonds and other Parity Bonds.
(e)
The Parity Bonds will mature on and interest will be payable on the same dates as the Bonds
(except the first interest payment may be from the date of the Parity Bonds until the next succeeding March 15
or September l5) provided, however, nothing in the Indenture precludes the Agency from issuing and selling
Parity Bonds which do not pay current interest.
Bonds Not a Debt of the City of Oroville or the State of California
The Bonds are special obligations of the Agency and as such are not a debt of the City, the State or
any of its political subdivisions other than the Agency. Neither the City, the State nor any of its political
subdivisions other than the Agency is liable for the payment thereof. In no event will the Bonds be payable
out of any funds or properties other than those of the Agency as set forth in the Indenture. The Bonds do not
constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.
Neither the members of the Agency nor any persons executing the Bonds are liable personally on the Bonds.
BOND INSURANCE
The following information has been furnished by the Insurer for use in this Official Statement. No
representation is made by the Agency or the Underwriter as to the accuracy or completeness of such
information, or the absence of material adverse changes therein at any time subsequent to the date hereof.
Reference is made to APPENDIX I—“SPECIMEN MUNICIPAL BOND INSURANCE POLICY” for a
specimen of the Insurer’s policy.
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Bond Insurance Policy
Concurrently with the issuance of the Bonds, AGM will issue an insurance policy (the “Policy”) for
the 2015A Bonds maturing on September 15 in the years 2018 through 2031, inclusive, and all of the 2015B
Bonds (the “Insured Bonds”). The Policy guarantees the scheduled payment of principal of and interest on the
Insured Bonds when due as set forth in the form of the Policy included as Appendix I to this Official
Statement.
The Policy is not covered by any insurance security or guaranty fund established under New York,
California, Connecticut or Florida insurance law.
Assured Guaranty Municipal Corp.
AGM is a New York domiciled financial guaranty insurance company and an indirect subsidiary of
Assured Guaranty Ltd. (“AGL”), a Bermuda-based holding company whose shares are publicly traded and are
listed on the New York Stock Exchange under the symbol “AGO.” AGL, through its operating subsidiaries,
provides credit enhancement products to the U.S. and global public finance, infrastructure and structured
finance markets. Neither AGL nor any of its shareholders or affiliates, other than AGM, is obligated to pay
any debts of AGM or any claims under any insurance policy issued by AGM.
AGM’s financial strength is rated “AA” (stable outlook) by Standard and Poor’s Ratings Services, a
Standard & Poor’s Financial Services LLC business (“S&P”), “AA+” (stable outlook) by Kroll Bond Rating
Agency, Inc. (“KBRA”) and “A2” (stable outlook) by Moody’s Investors Service, Inc. (“Moody’s”). Each
rating of AGM should be evaluated independently. An explanation of the significance of the above ratings
may be obtained from the applicable rating agency. The above ratings are not recommendations to buy, sell or
hold any security, and such ratings are subject to revision or withdrawal at any time by the rating agencies,
including withdrawal initiated at the request of AGM in its sole discretion. In addition, the rating agencies
may at any time change AGM’s long-term rating outlooks or place such ratings on a watch list for possible
downgrade in the near term. Any downward revision or withdrawal of any of the above ratings, the
assignment of a negative outlook to such ratings or the placement of such ratings on a negative watch list may
have an adverse effect on the market price of any security guaranteed by AGM. AGM only guarantees
scheduled principal and scheduled interest payments payable by the issuer of bonds insured by AGM on the
date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance
with the terms of the relevant insurance policy), and does not guarantee the market price or liquidity of the
securities it insures, nor does it guarantee that the ratings on such securities will not be revised or withdrawn.
Current Financial Strength Ratings
On November 13, 2014, KBRA assigned an insurance financial strength rating of “AA+” (stable
outlook) to AGM. AGM can give no assurance as to any further ratings action that KBRA may take.
On July 2, 2014, S&P issued a credit rating report in which it affirmed AGM’s financial strength
rating of “AA” (stable outlook). AGM can give no assurance as to any further ratings action that S&P may
take.
On July 2, 2014, Moody’s issued a rating action report stating that it had affirmed AGM’s insurance
financial strength rating of “A2” (stable outlook). In February 2015, Moody’s published a credit opinion under
its new financial guarantor ratings methodology maintaining its existing rating and outlook on AGM. AGM
can give no assurance as to any further ratings action that Moody’s may take.
For more information regarding AGM’s financial strength ratings and the risks relating thereto, see
AGL’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.
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Capitalization of AGM
At December 31, 2014, AGM’s policyholders’ surplus and contingency reserve were approximately
$3,763 million and its net unearned premium reserve was approximately $1,769 million. Such amounts
represent the combined surplus, contingency reserve and net unearned premium reserve of AGM, AGM’s
wholly owned subsidiary Assured Guaranty (Europe) Ltd. and 60.7% of AGM’s indirect subsidiary Municipal
Assurance Corp.; each amount of surplus, contingency reserve and net unearned premium reserve for each
company was determined in accordance with statutory accounting principles.
Incorporation of Certain Documents by Reference
Portions of the following document filed by AGL with the Securities and Exchange Commission (the
“SEC”) that relate to AGM are incorporated by reference into this Official Statement and shall be deemed to
be a part hereof: the Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (filed by AGL
with the SEC on February 26, 2015).
All consolidated financial statements of AGM and all other information relating to AGM included in,
or as exhibits to, documents filed by AGL with the SEC pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended, excluding Current Reports or portions thereof “furnished” under Item 2.02
or Item 7.01 of Form 8-K, after the filing of the last document referred to above and before the termination of
the offering of the Insured Bonds shall be deemed incorporated by reference into this Official Statement and to
be a part hereof from the respective dates of filing such documents. Copies of materials incorporated by
reference are available over the internet at the SEC’s website at http://www.sec.gov, at AGL’s website at
http://www.assuredguaranty.com, or will be provided upon request to Assured Guaranty Municipal Corp.: 31
West 52nd Street, New York, New York 10019, Attention: Communications Department (telephone (212)
974-0100). Except for the information referred to above, no information available on or through AGL’s
website shall be deemed to be part of or incorporated in this Official Statement.
Any information regarding AGM included herein under the caption “BOND INSURANCE—Assured
Guaranty Municipal Corp.” or included in a document incorporated by reference herein (collectively, the
“AGM Information”) shall be modified or superseded to the extent that any subsequently included AGM
Information (either directly or through incorporation by reference) modifies or supersedes such previously
included AGM Information. Any AGM Information so modified or superseded shall not constitute a part of
this Official Statement, except as so modified or superseded.
Miscellaneous Matters
AGM or one of its affiliates may purchase a portion of the Bonds or any uninsured bonds offered
under this Official Statement and such purchases may constitute a significant proportion of the bonds offered.
AGM or such affiliate may hold such Bonds or uninsured bonds for investment or may sell or otherwise
dispose of such Bonds or uninsured bonds at any time or from time to time.
AGM makes no representation regarding the Insured Bonds or the advisability of investing in the
Insured Bonds. In addition, AGM has not independently verified, makes no representation regarding, and does
not accept any responsibility for the accuracy or completeness of this Official Statement or any information or
disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information
regarding AGM supplied by AGM and presented under the heading “BOND INSURANCE.”
THE INDENTURE
The following is a summary of certain provisions of the Indenture and does not purport to be
complete. Reference is hereby made to the Indenture and to Appendix B for the definition of certain terms
18
used herein. Copies of the Indenture are available from the Agency upon request. All capitalized terms used
herein and not otherwise defined will have the same meaning as used in the Indenture.
Allocation of Bond Proceeds
Under the Dissolution Act, the Agency has previously established a special trust fund called the
Redevelopment Obligation Retirement Fund (the “Redevelopment Obligation Retirement Fund”), which is
held by the Agency and into which the County Auditor-Controller distributes property tax revenues each
January 2 and June 1 from the Redevelopment Property Tax Trust Fund for the payment by the Agency of
enforceable obligations pursuant to the Recognized Obligation Payment Schedule.
The Indenture establishes a special trust fund known as the “Debt Service Fund,” with accounts
therein referred to below, which will be held by the Trustee. The Agency will deposit all of the Pledged Tax
Revenues received in any Bond Year in the Redevelopment Obligation Retirement Fund promptly upon receipt
thereof by the Agency, and promptly thereafter will transfer amounts therein to the Trustee for deposit in the
Debt Service Fund established and held under the Indenture until such time as the aggregate amounts on
deposit in such Debt Service Fund equal the aggregate amounts required to be deposited into the Interest
Account, the Principal Account, the Reserve Account and the Redemption Account in such Bond Year
pursuant to the Indenture and for deposit in such Bond Year in the funds and accounts established with respect
to any Parity Bonds, as provided in any Supplemental Indenture.
See “SOURCES AND USES OF FUNDS.”
Pledged Tax Revenues – Application
There are created under the Indenture accounts within the Debt Service Fund as set forth below, to be
known respectively as the Interest Account with the 2015A Interest Sub-Account and the 2015B Interest SubAccount, the Principal Account with the 2015A Principal Sub-Account and the 2015B Principal Sub-Account,
the Reserve Account with the 2015A Reserve Sub-Account and the 2015B Reserve Sub-Account and the
Redemption Account with the 2015A Redemption Sub-Account and the 2015B Redemption Sub-Account.
Moneys in the Redevelopment Obligation Retirement Fund will be transferred by the Trustee in the following
amounts at the following times, for deposit in the following respective accounts within the Debt Service Fund,
which are established with the Trustee, in the following order of priority:
(a)
Interest Account. On or before the 5th Business Day preceding each Interest Payment Date,
the Trustee will transfer funds from the Debt Service Fund for deposit in the Interest Account (including the
2015A Interest Sub-Account and the 2015B Interest Sub-Account) an amount which, when added to the
amount contained in the Interest Account on that date, will be equal to the aggregate amount of the interest
becoming due and payable on the Outstanding Bonds on such Interest Payment Date. Amounts attributable to
the 2015A Bonds will be immediately segregated and held in the 2015A Interest Sub-Account. Amounts
attributable to the 2015B Bonds will be immediately segregated and held in the 2015B Interest Sub-Account.
No such transfer and deposit need to be made to the Interest Account if the amount contained therein is at least
equal to the interest to become due on the next succeeding Interest Payment Date upon all of the Outstanding
Bonds and Parity Bonds. Subject to the Indenture, all moneys in the Interest Account will be used and
withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it becomes due and
payable (including accrued interest on any Bonds redeemed prior to maturity pursuant to the Indenture).
(b)
Principal Account. On or before the 5th Business Day preceding each Principal Payment
Date in each calendar year beginning September 15, 2015, the Trustee will transfer funds from the Debt
Service Fund for deposit in the Principal Account (including the 2015A Principal Sub-Account and the 2015B
Principal Sub-Account) an amount equal to the principal payments becoming due and payable on the
Outstanding Bonds on such September 15, to the extent monies on deposit in the Redevelopment Obligation
Retirement Fund are available therefor. Amounts attributable to the 2015A Bonds will be immediately
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segregated and held in the 2015A Principal Sub-Account. Amounts attributable to the 2015B Bonds will be
immediately segregated and held in the 2015B Principal Sub-Account. No such transfer and deposit need be
made to the Principal Account if the amount contained therein is at least equal to the principal payments to
become due on such September 15 on all Outstanding Bonds. Subject to the Indenture, all moneys in the
Principal Account will be used and withdrawn by the Trustee solely for the purpose of paying the principal
payments of the Bonds as it becomes due and payable.
(c)
Reserve Account. In the event that moneys on deposit in the Debt Service Fund five (5)
Business Days before any Interest Payment Date are less than the full amount of the interest, principal
payments required to be deposited by the Trustee pursuant to the Indenture, the Trustee will, five (5) Business
Days before such Interest Payment Date, withdraw from the Reserve Account pro-rata between the Reserve
Account sub-accounts an amount equal to any such deficiency and will notify the Agency of any such
withdrawal. Promptly upon receipt of any such notice, the Agency will withdraw from the Redevelopment
Obligation Retirement Fund and transfer to the Trustee for deposit in the Reserve Account an amount
sufficient to maintain the Reserve Requirement on deposit in the Reserve Account, the sub-accounts therein,
and the reserve account of any Parity Bonds. If there is not sufficient moneys in the Redevelopment
Obligation Retirement Fund to transfer an amount sufficient to maintain the Reserve Requirement on deposit
in the Reserve Account, the sub-accounts therein, and the reserve account of any Parity Bonds, the Agency
will have an obligation to continue making transfers of Pledged Tax Revenues into the Debt Service Fund, as
such revenues become available, and thereafter, as moneys become available in the Debt Service Fund, the
Trustee will make transfers to the Reserve Account , the sub-accounts therein, and the reserve account of any
Parity Bonds until there is an amount sufficient to maintain the Reserve Requirement on deposit in the Reserve
Account, the sub-accounts therein, and the reserve account of any Parity Bonds. No such transfer and deposit
need be made to the Reserve Account (or any sub-account therein) so long as there is on deposit therein a sum
at least equal to the Reserve Requirement. Subject to the Indenture, all money in the Reserve Account will be
used and withdrawn by the Trustee solely for the purpose of making transfers to the Interest Account and the
Principal Account (and sub-accounts therein, as the case may be), in such order of priority, in the event of any
deficiency at any time in any of such accounts or for the retirement of all the Bonds then Outstanding, except
that so long as the Agency is not in default, any amount in the Reserve Account in excess of the Reserve
Requirement will be withdrawn from the Reserve Account semiannually on or before the 5th Business Day
preceding March 15 and September 15 by the Trustee and deposited in the Interest Account. All amounts in
the Reserve Account on the 5th Business Day preceding the final Interest Payment Date will be withdrawn
from the Reserve Account and will be transferred either (i) to the Interest Account and the Principal Account,
in such order, to the extent required to make the deposits then required to be made or, (ii) if the Agency has
caused to be deposited with the Trustee an amount sufficient to make the deposits required by the Indenture,
then at the Written Request of the Agency transferred as directed by the Agency.
When no Bonds remain Outstanding, amounts on deposit in the Bonds Reserve Account will be
transferred to the reserve account for any Parity Bonds to the extent necessary to maintain the Reserve
Requirement on any Parity Bonds then outstanding.
Provisions relating to Reserve Policy. The Agency shall repay any draws under the Reserve Policy
and pay all related reasonable expenses incurred by AGM and shall pay interest thereon from the date of
payment by the Insurer at the Late Payment Rate (defined in the Indenture).
The Successor Agency shall diligently make repayments for draws and payment of expenses and the
interest accrued thereon at the Late Payment Rate (collectively, "Policy Costs") from funds available to the
Successor Agency to the extent permitted by law. To the extent that such repayment and payment cannot be
made in full within the current Recognized Obligation Payment Schedule Period, the Successor Agency shall
include the payment and repayment on the next available Recognized Obligation Payment Schedule and on
successive Recognized Obligation Payment Schedules until such payment and repayment have been made in
full. Amounts in respect of Policy Costs paid to the Insurer shall be credited first to interest due, then to the
expenses due and then to principal due. As and to the extent that payments are made to the Insurer on account
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of principal due, the coverage under the Reserve Policy will be increased by a like amount, subject to the terms
of the Reserve Policy. The obligation to pay Policy Costs shall be secured by a valid lien on all Pledged Tax
Revenues (subject only to the priority of payment provisions set forth hereunder).
All cash and investments in the Reserve Account, if any, shall be transferred to the Debt Service Fund
for payment of principal of and interest on the Bonds before any drawing may be made on the Reserve Policy
or any other credit facility credited to the Reserve Account in lieu of cash ("Credit Facility"). Payment of any
Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all Credit Facilities
(including the Reserve Policy) on which there is available coverage shall be made on a pro-rata basis
(calculated by reference to the coverage then available thereunder) after applying all available cash and
investments in the Reserve Account. Payment of Policy Costs and reimbursement of amounts with respect to
other Credit Facilities shall be made on a pro-rata basis prior to replenishment of any cash drawn from the
Reserve Account. For the avoidance of doubt, "available coverage" means the coverage then available for
disbursement pursuant to the terms of the applicable alternative credit instrument without regard to the legal or
financial ability or willingness of the provider of such instrument to honor a claim or draw thereon or the
failure of such provider to honor any such claim or draw.
If the Successor Agency shall fail to pay any Policy Costs in accordance with the requirements of this
Section, the Insurer shall be entitled to exercise any and all legal and equitable remedies available to it,
including those provided hereunder other than (i) acceleration of the maturity of the Bonds or (ii) remedies
which would adversely affect Owners of the Bonds. The Indenture shall not be discharged until all Policy
Costs owing to the Insurer shall have been paid in full. The Successor Agency’s obligation to pay such
amounts shall expressly survive payment in full of the Bonds.
See “BOND INURANCE” and “RISK FACTORS—Bond Insurance.”
(d)
Redemption Account. On or before the 5th Business Day preceding any date on which Bonds
are to be redeemed, the Trustee will transfer from the Debt Service Fund for deposit in the Redemption
Account an amount required to pay the principal of, interest and premium, if any, on the Bonds to be redeemed
on such date. Subject to the Indenture, all moneys in the Redemption Account will be used and withdrawn by
the Trustee solely for the purpose of paying the principal of, interest and premium, if any, on the Bonds to be
redeemed on the date set for such redemption.
The Indenture also creates a Rebate Fund for the purpose of collecting the amounts required, if any, to
be rebated to the United States with respect to the 2015A Bonds in accordance with the requirements of
Section 148(f) of the Code. Section 148 of the Code requires, among other things and with certain exceptions,
that any amounts earned on nonpurpose investments in excess of the amount which would have been earned if
such investments were made at a rate equal to the yield on the Bonds be rebated to the United States. The
Indenture requires the Agency to calculate such amount and deposit it into the Rebate Fund for eventual rebate
to the United States Treasury.
Investment of Moneys in Funds and Accounts
Subject to the provisions of the Indenture, all moneys held by the Trustee in the Debt Service Fund,
the Costs of Issuance Fund, or the Rebate Fund will be invested at the written direction of the Agency only in
Permitted Investments. If the Trustee receives no written directions from the Agency as to the investment of
moneys held in any Fund or Account, the Trustee will request such written direction from the Agency and,
pending receipt of instructions, will invest such moneys only in Permitted Investments described in
subsection (b)(5) of the definition thereof.
(a)
Moneys in the Redevelopment Obligation Retirement Fund will be invested by the Agency
only in obligations permitted by the Redevelopment Law which will by their terms mature not later than the
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date the Agency estimates the moneys represented by the particular investment will be needed for withdrawal
from the Redevelopment Obligation Retirement Fund.
(b)
Moneys in the Interest Account, the Principal Account and the Redemption Account of the
Debt Service Fund will be invested only in obligations which will by their terms mature on such dates as to
ensure that before each interest and principal payment date there will be in such Account, from matured
obligations and other moneys already in such Account, cash equal to the principal and interest payable on such
payment date.
(c)
Moneys in the Reserve Account will be invested in (i) obligations which will by their terms
mature on or before the date of the final maturity of the Bonds or five (5) years from the date of investment,
whichever is earlier or (ii) an investment agreement which permits withdrawals or deposits without penalty at
such time as such moneys will be needed or in order to replenish the Reserve Account.
(d)
Moneys in the Rebate Fund will be invested in Defeasance Securities which mature on or
before the date such amounts are required to be paid to the United States.
Except as otherwise provided in the Indenture, obligations purchased as an investment of moneys in
any of the Funds or Accounts will be deemed at all times to be a part of such respective Fund or Account, and
the interest accruing thereon and any gain realized from an investment will be credited to such Fund or
Account and any loss resulting from any authorized investment will be charged to such Fund or Account
without liability to the Trustee. The Agency or the Trustee, as the case may be, will sell or present for
redemption any obligation purchased whenever it will be necessary to do so in order to provide moneys to
meet any payment or transfer from such Fund or Account as required by the Indenture and will incur no
liability for any loss realized upon such a sale. All interest earnings received on any moneys invested in the
Interest Account, Principal Account, Redemption Account or Reserve Account, to the extent they exceed the
amount required to be in such Account, will be transferred on each Interest Payment Date to the Debt Service
Fund. All interest earnings on moneys invested in the Rebate Fund will be retained in such Fund and applied
as set forth in the Indenture.
Covenants of the Agency
As long as the Bonds are outstanding and unpaid, the Agency will (through its proper members,
officers, agents or employees) faithfully perform and abide by all of the covenants, undertakings and
provisions contained in the Indenture or in any Bond issued under the Indenture, including the following
covenants and agreements for the benefit of the Bondowners which are necessary, convenient and desirable to
secure the Bonds and will tend to make them more marketable; provided, however, that the covenants do not
require the Agency to expend any funds other than the Pledged Tax Revenues.
Covenant 1. Use of Proceeds; Management and Operation of Properties. The Agency covenants and
agrees that the proceeds of the sale of the Bonds will be deposited and used as provided in the Indenture and
that it will manage and operate all properties owned by it comprising any part of the Project Area in a sound
and businesslike manner.
Covenant 2. No Priority. The Agency covenants and agrees that it will not issue any obligations
payable, either as to principal or interest, from the Pledged Tax Revenues which have any lien upon the
Pledged Tax Revenues prior or superior to the lien of the Bonds. Except as permitted by the Indenture, it will
not issue any obligations, payable as to principal or interest, from the Pledged Tax Revenues, which have any
lien upon the Pledged Tax Revenues on a parity with the Bonds authorized in the Indenture. Notwithstanding
the foregoing, nothing in the Indenture prevents the Agency (i) from issuing and selling pursuant to law,
refunding obligations payable from and having any lawful lien upon the Pledged Tax Revenues, if such
refunding obligations are issued for the purpose of, and are sufficient for the purpose of, refunding all of the
Outstanding Bonds and Parity Bonds, (ii) from issuing and selling obligations which have, or purport to have,
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any lien upon the Pledged Tax Revenues which is junior to the Bonds, or (iii) from issuing and selling bonds
or other obligations which are payable in whole or in part from sources other than the Pledged Tax Revenues.
As used in the Indenture “obligations” includes, without limitation, bonds, notes, interim certificates,
debentures or other obligations.
Covenant 3. Punctual Payment. The Agency covenants and agrees that it will duly and punctually
pay, or cause to be paid, the principal of and interest on each of the Bonds on the date, at the place and in the
manner provided in the Bonds. Further, the Agency will take all actions required under the Dissolution Act to
include on the Recognized Obligation Payment Schedules for each six-month period (or annual period if
authorized by the Dissolution Act) all payments to the Trustee to satisfy the requirements of the Indenture,
including any amounts required under the Indenture to replenish the Reserve Account of the Debt Service
Fund to full amount of the Reserve Requirement. Without limiting the generality of the foregoing, as long as
the Dissolution Act provides for a six-month Recognized Obligation Payment Schedule process (as opposed to
an annual Recognized Obligation Payment Schedule process), the Successor Agency will include the entire
amount of Annual Debt Service for each applicable Bond Year on the Recognized Obligation Payment
Schedule for the six-month period from January 1 to June 30 of such Bond Year and will include any
remaining Annual Debt Service amounts for such Bond Year not deposited with the Trustee during such period
on the Recognized Obligation Payment Schedule for the six-month period from July 1 to December 31
commencing during such Bond Year.
Covenant 4. Payment of Taxes and Other Charges. The Agency covenants and agrees that it will
from time to time pay and discharge, or cause to be paid and discharged, all payments in lieu of taxes, service
charges, assessments or other governmental charges which may lawfully be imposed upon the Agency or any
of the properties then owned by it in the Project Area, or upon the revenues and income therefrom, and will
pay all lawful claims for labor, materials and supplies which if unpaid might become a lien or charge upon any
of the properties, revenues or income or which might impair the security of the Bonds or the use of Pledged
Tax Revenues or other legally available funds to pay the principal of and interest on the Bonds, all to the end
that the priority and security of the Bonds will be preserved; provided, however, that nothing in this covenant
will require the Agency to make any such payment so long as the Agency in good faith contests the validity of
the payment.
Covenant 5. Books and Accounts; Financial Statements. The Agency covenants and agrees that it
will at all times keep, or cause to be kept, proper and current books and accounts (separate from all other
records and accounts) in which complete and accurate entries will be made of all transactions relating to the
Redevelopment Project and the Pledged Tax Revenues and other funds relating to the Project Area. The
Agency will prepare within one hundred eighty (180) days after the close of each of its Fiscal Years a postaudit
of the financial transactions and records of the Agency for the Fiscal Year to be made by an Independent
Certified Public Accountant appointed by the Agency, and will furnish a copy of the postaudit to the Trustee
and any rating agency which maintains a rating on the Bonds, and, upon written request, to any Bondowner.
The Trustee will have no duty to review such postaudits.
Covenant 6. Eminent Domain Proceeds. The Agency covenants and agrees that if all or any part of
the Project Area should be taken from it without its consent, by eminent domain proceedings or other
proceedings authorized by law, for any public or other use under which the property will be tax exempt, it will
take all steps necessary to adjust accordingly the base year property tax roll of the Project Area.
Covenant 7. Disposition of Property. The Agency covenants and agrees that it will not dispose of
more than ten percent (10%) of the land area in the Project Area (except property shown in the Redevelopment
Plan in effect on the date the Indenture is adopted as planned for public use, or property to be used for public
streets, public offstreet parking, sewage facilities, parks, easements or right-of-way for public utilities, or other
similar uses) to public bodies or other persons or entities whose property is tax exempt, unless such disposition
will not result in Pledged Tax Revenues to be less than the amount required for the issuance of Parity Bonds as
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provided in the Indenture, based upon the certificate or opinion of an Independent Financial Consultant
appointed by the Agency. See “SECURITY FOR THE BONDS—Parity Bonds.”
Covenant 8. Protection of Security and Rights of Bondowners. The Agency covenants and agrees to
preserve and protect the security of the Bonds and the rights of the Bondowners and to contest by court action
or otherwise (a) the assertion by any officer of any government unit or any other person whatsoever against the
Agency that (i) the Redevelopment Law (except as modified by the Dissolution Act) is unconstitutional or
(ii) that the Pledged Tax Revenues pledged under the Indenture cannot be paid to the Agency for the debt
service on the Bonds or (b) any other action affecting the validity of the Bonds or diluting the security therefor.
Covenant 9. Tax Covenants. The Agency covenants and agrees to contest by court action or
otherwise any assertion by the United States of America or any department or agency thereof that the interest
received by the Bondowners is includable in gross income of the recipient under federal income tax laws on
the date of issuance of the Bonds. In order to preserve the exclusion from gross income of interest on the
Bonds, and for no other reason, the Agency covenants to comply with all applicable requirements of the
Internal Revenue Code of 1986, as amended (the “Code”), together with any amendments thereto or
regulations promulgated thereunder necessary to preserve such tax exemption as more specifically provided in
the Indenture.
Covenant 10. Compliance with Dissolution Act. The Agency covenants that it will comply with the
requirements of the Dissolution Act. Without limiting the generality of the foregoing, the Agency covenants
and agrees to file all required statements and hold all public hearings required under the Dissolution Act to
assure compliance by the Agency with its covenants hereunder. The Successor Agency covenants that in
accordance with the Dissolution Act it will petition the DOF for a written confirmation that its determinations
with respect to the Bonds are final and conclusive.
Covenant 11. Limitation on Indebtedness. The Agency covenants and agrees that it has not and will
not incur any loans, obligations or indebtedness repayable from Pledged Tax Revenues such that the total
aggregate debt service on said loans, obligations or indebtedness incurred from and after the date of adoption
of the Redevelopment Plan, when added to the total aggregate debt service on the Bonds, will exceed the
maximum amount of Pledged Tax Revenues to be divided and allocated to the Successor Agency pursuant to
the Redevelopment Plan.
The Successor Agency covenants that, as long as the receipt of Pledged Tax Revenues attributable to
the Redevelopment Project is subject to a tax increment limit under the Law, the Successor Agency will
annually review (or cause to be reviewed) the total amount of Pledged Tax Revenues attributable to the
Redevelopment Project remaining available to be received by the Successor Agency under the Redevelopment
Plan. In the event that the Pledged Tax Revenues attributable to the Redevelopment Project previously
received by the Prior Agency or the Successor Agency plus the aggregate debt service remaining to be paid on
the Bonds and any Parity Debt then outstanding, at any time equals or exceeds ninety percent (90%) of the
aggregate amount of Pledged Tax Revenues attributable to the Redevelopment Project which the Successor
Agency is permitted to receive under the Redevelopment Plan, the Successor Agency will either:
(i)
deposit all future Pledged Tax Revenues attributable to the Redevelopment Project not used
to pay current debt service with the Trustee in a special account to be applied for the sole purpose of paying the
principal of and interest on, or the redemption of, the Bonds and any Parity Debt as they become due and
payable plus amounts required to be deposited into the Reserve Account or any reserve account for Parity
Debt, notwithstanding anything herein to the contrary, which account shall be invested in non-callable
Defeasance Obligations and used for the payment of interest on and principal of and redemption premiums, if
any, on the Bonds and any Parity Debt and amounts required to be deposited into the Reserve Account or any
reserve account for Parity Debt; or
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(ii)
adopt a plan approved by an Independent Redevelopment Consultant which demonstrates the
Successor Agency’s continuing ability to pay debt service on the Bonds and any Parity Debt. In determining
the amount to be deposited in escrow with the Trustee, the Successor Agency shall not take into account any
actual or projected interest earnings on the amounts so deposited. The Successor Agency agrees that the
financial information provided to the Trustee in any such adopted plan will be included in each annual report
provided pursuant to the Continuing Disclosure Certificate.
Notwithstanding the foregoing, if the limitation on the amount of taxes which can be allocated to the
Successor Agency pursuant to the Redevelopment Law and the Redevelopment Plan is invalidated (either by
action of the legislature of the State of California or pursuant to a court finding or determination), neither the
deposit of Pledged Tax Revenues attributable to the Redevelopment Project required by paragraph (i) nor the
adoption of a plan as contemplated by paragraph (ii) of this Section 5.1 for the purpose of paying debt service
and deposits into the Reserve Account for the Bonds and any Parity Debt, shall be required.
Covenant 12. Further Assurances. The Agency covenants and agrees to adopt, make, execute and
deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or
proper to carry out the intention or to facilitate the performance of the Indenture, and for the better assuring
and confirming unto the Owners of the rights and benefits provided in the Indenture.
Covenant 13. Continuing Disclosure. The Agency covenants and agrees that it will comply with and
carry out all of the provisions of the Continuing Disclosure Certificate dated the Closing Date.
Notwithstanding any other provision of the Indenture, failure of the Agency to comply with the Continuing
Disclosure Certificate will not be considered an Event of Default; however, any participating underwriter,
owner or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel
performance, including seeking mandate or specific performance by court order.
Events of Default and Remedies
The following events will constitute Events of Default under the Indenture:
(a)
if default is made in the due and punctual payment of the principal of or interest or
redemption premium (if any) on any Bond when and as the same becomes due and payable, whether at
maturity as therein expressed, by declaration or otherwise;
(b)
if default is made by the Agency in the observance of any of the covenants, agreements or
conditions on its part in the Indenture or in the Bonds contained, other than a default described in the preceding
clause (a), and such default is continued for a period of thirty (30) days following receipt by the Agency of
written notice from the Trustee or any Owner of the occurrence of such default; or
(c)
if the Agency commences a voluntary action under Title 11 of the United States Code or any
substitute or successor statute.
If an Event of Default has occurred and is continuing, the Trustee may, or if requested in writing by
the Owners of the majority in aggregate principal amount of the Bonds then Outstanding, the Trustee will by
written notice to the Agency, (a) declare the principal of the Bonds, together with the accrued interest thereon,
to be due and payable immediately, and upon any such declaration the same will become immediately due and
payable, and (b) upon receipt of indemnity to its satisfaction exercise any other remedies available to the
Trustee and the Owners in law or at equity.
Immediately upon becoming aware of the occurrence of an Event of Default, the Trustee will give
notice of such Event of Default to the Agency by telephone confirmed in writing. Such notice will also state
whether the principal of the Bonds will have been declared to be or have immediately become due and
payable. With respect to any Event of Default described in clauses (a) or (c) above the Trustee will, and with
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respect to any Event of Default described in clause (b) above the Trustee in its sole discretion may, also give
such notice to the Agency and the Owners in the same manner as provided herein for notices of redemption of
the Bonds, which will include the statement that interest on the Bonds will cease to accrue from and after the
date, if any, on which the Trustee has declared the Bonds to become due and payable pursuant to the preceding
paragraph (but only to the extent that principal and any accrued, but unpaid interest on the Bonds is actually
paid on such date).
This provision, however, is subject to the condition that if, at any time after the principal of the bonds
has been so declared due and payable, and before any judgment or decree for the payment of the moneys due
has been obtained or entered, the Agency deposits with the Trustee a sum sufficient to pay all principal on the
Bonds matured prior to such declaration and all matured installments of interest (if any) upon all the Bonds,
with interest on such overdue installments of principal and interest (to the extent permitted by law) at the net
effective rate then borne by the Outstanding Bonds, and the reasonable fees and expenses of the Trustee,
including but not limited to attorneys’ fees, and any and all other defaults known to the Trustee (other than in
the payment of principal of and interest on the Bonds due and payable solely by reason of such declaration) has
been made good or cured to the satisfaction of the Trustee or provisions deemed by the Trustee to be adequate
has been made therefor, then, and in every such case, the Owners of at least a majority in aggregate principal
amount of the Bonds then Outstanding, by written notice to the Agency and to the Trustee, may, on behalf of
the Owners of all the Bonds, rescind and annul such declaration and its consequences. However, no such
rescission and annulment will extend to or will affect any subsequent default, or will impair or exhaust any
right or power consequent thereon.
Upon the occurrence of an event of default, the Trustee may, upon the prior written consent of the
Insurer, with the consent of a majority of the Holders, by written notice to the Successor Agency, declare the
principal of the Insured Bonds to be immediately due and payable, whereupon that portion of the principal of
the Insured Bonds thereby coming due and the interest thereon accrued to the date of payment will, without
further action, become and be immediately due and payable, anything in this Indenture in the Insured Bonds to
the contrary notwithstanding. Notwithstanding the foregoing, the maturity of Insured Bonds will not be
accelerated without the consent of the Insurer and in the event the maturity of the Insured Bonds is accelerated,
the Insurer may elect, in its sole discretion, to pay accelerated principal and interest accrued, on such principal
to the date of acceleration (to the extent unpaid by the Agency) and the Trustee will be required to accept such
amounts. Upon payment of such accelerated principal and interest accrued to the acceleration date as provided
above, the Insurer’s obligations under the Policy with respect to such Insured Bonds will be fully discharged.
Application of Funds Upon Acceleration
All of the Pledged Tax Revenues and all sums in the funds and accounts established and held by the
Trustee upon the date of the declaration of acceleration as provided in the Indenture, and all sums thereafter
received by the Trustee thereunder, will be applied by the Trustee in the order following, upon presentation of
the Bonds, and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully
paid:
First, to the payment of the fees, costs and expenses of the Trustee in declaring such Event of Default
and in exercising the rights and remedies set forth in the Indenture, including reasonable compensation to its
agents, attorneys and counsel; and
Second, to the payment of the whole amount then owing and unpaid upon the Bonds for principal and
interest, with interest on the overdue principal and installments of interest at the net effective rate then borne
by the Outstanding Bonds (to the extent that such interest on overdue installments of principal and interest has
been collected), and in case such moneys will be insufficient to pay in full the whole amount so owing and
unpaid upon the Bonds, then to the payment of such principal and interest without preference or priority of
principal over interest, or interest over principal, or of any installment of interest over any other installment of
interest, ratably to the aggregate of such principal and interest or any Bond over any other Bond.
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Amendments
Subject to the terms of the Indenture, the Indenture and the rights and obligations of the Agency and
of the Owners may be modified or amended at any time by a Supplemental Indenture which will become
binding upon adoption, with the prior written consent of the Insurer but without consent of any Owners, to the
extent permitted by law and any for any one or more of the following purposes:
(a)
to add to the covenants and agreements of the Agency in the Indenture contained, other
covenants and agreements thereafter to be observed or to limit or surrender any rights or powers therein
reserved to or conferred upon the Agency; or
(b)
to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective provision contained in the Indenture, or in any other respect whatsoever as the
Agency may deem necessary or desirable, provided under any circumstances that such modifications or
amendments will not materially adversely affect the interests of the Owners; or
(c)
to provide the issuance of Parity Bonds pursuant to the Indenture, and to provide the terms
and conditions under which such Parity Bonds may be issued, including but not limited to the establishment of
special funds and accounts relating thereto and any other provisions relating solely thereto, subject to and in
accordance with the provisions of the Indenture; or
(d)
to amend any provision thereof relating to the requirements of or compliance with the Code to
any extent whatsoever but only if and to the extent such amendment will not adversely affect the exclusion
from gross income for purposes of federal income taxation of interest on any of the Bonds, in the opinion of a
nationally recognized bond counsel.
Except as set forth in the preceding paragraph and subject to the terms of the Indenture, the rights and
obligations of the Agency and of the Owners may be modified or amended at any time by a Supplemental
Indenture which will become binding upon the prior written consent of the Insurer, when the written consent of
the Owners of a majority in aggregate principal amount of the Bonds then Outstanding are filed with the
Trustee. No such modification or amendment will (a) extend the maturity of or reduce the interest rate on any
Bond or otherwise alter or impair the obligation of the Agency to pay the principal, interest or redemption
premiums (if any) at the time and place and at the rate and in the currency provided therein of any Bond
without the express written consent of the Owner of such Bond, (b) reduce the percentage of Bonds required
for the written consent to any such amendment or modification, or (c) without its written consent thereto,
modify any of the rights or obligations of the Trustee. Any amendment, supplement, modification to, or
waiver of, the Indenture or any other transaction document, including any underlying security agreement (each
a “Related Document”), that requires the consent of Bondowners or adversely affects the rights and interests of
the Insurer will be subject to the prior written consent of the Insurer.
THE SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
The Prior Agency was established on October 6, 1980 by the City Council of the City, pursuant to the
Redevelopment Law. On June 29, 2011, AB X1 26 was enacted as Chapter 5, Statutes of 2011, together with
a companion bill, AB X1 27. A lawsuit was brought in the California Supreme Court, California
Redevelopment Association, et al., v. Matosantos, et al., 53 Cal. 4th 231 (Cal. 2011), challenging the
constitutionality of AB X1 26 and AB X1 27. In its December 29, 2011 decision, the California Supreme
Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1
27 and enforced independently. As a result of AB X1 26 and the decision of the California Supreme Court in
the California Redevelopment Association case, as of February 1, 2012, all redevelopment agencies in the State
were dissolved, including the Prior Agency, and successor agencies were designated as successor entities to the
former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies.
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On January 9, 2012, pursuant to Resolution No. 7847 and Section 34173 of the Dissolution Act, the
City Council of the City elected to serve as successor agency to the Prior Agency. Subdivision (g) of
Section 34173 of the Dissolution Act, added by AB 1484, expressly affirms that the Agency is a separate
public entity from the City, that the two entities shall not merge, and that the liabilities of the Prior Agency will
not be transferred to the City nor will the assets of the Prior Agency become assets of the City.
The Agency is governed by a seven-member Board of Directors (the “Board”) which consists of the
members of the City Council of the City of Oroville. The Mayor acts as the Chair of the Board, the City
Administrator as its Executive Director, the City Clerk as its Secretary and the Finance Director of the City as
the Finance Officer of the Agency.
Members and Officers
The members and officers of the Agency and the expiration dates of their terms are as follows:
Name and Office
Expiration of Term
Linda Dahlmeier, Chair
Thil Wilcox, Vice Chair
Art Hatley, Director
Jack Berry, Director
Marlene Del Rosario, Director
JR Simpson, Director
David Pittman, Director
November 2018
November 2016
November 2018
November 2018
November 2018
November 2016
November 2016
Agency Powers
All powers of the Agency are vested in its seven members who are elected members of the City
Council. Pursuant to the Dissolution Act, the Agency is a separate public body from the City and succeeds to
the organizational status of the Prior Agency but without any legal authority to participate in redevelopment
activities, except to complete any work related to an approved enforceable obligation. The Agency is tasked
with expeditiously winding down the affairs of the Prior Agency, pursuant to the procedures and provisions of
the Dissolution Act. Under the Dissolution Act, many Agency actions are subject to approval by the Oversight
Board, as well as review by the State Department of Finance. California has strict laws regarding public
meetings (known as the Ralph M. Brown Act) which generally make all Agency and Oversight Board
meetings open to the public in a similar manner as City Council meetings.
Under a State initiative enacted in 1974, public officials are required to make extensive disclosures
regarding their financial interests by filing such disclosures as public records. As of the date of this Official
Statement, the members of the City Council and the Agency, and other City and Agency officials have made
the required filings.
Previously, Section 33675 of the Redevelopment Law required the Prior Agency to file not later than
the first day of October of each year with the County Auditor a statement of indebtedness certified by the chief
fiscal officer of the Prior Agency for each redevelopment plan which provides for the allocation of taxes (i.e.,
the Redevelopment Plan). The statement of indebtedness was required to contain the date on which the bonds
were delivered, the principal amount, term, purposes and interest rate of the bonds and the outstanding balance
and amount due on the bonds. Similar information was required to be given for each loan, advance or
indebtedness that the Prior Agency had incurred or entered into which is payable from tax increment.
Section 33675 also provided that payments of tax increment revenues from the County Auditor to the Prior
Agency could not exceed the amounts shown on the Prior Agency’s statement of indebtedness. The
Dissolution Act eliminates this requirement and provides that, commencing on the date the first Recognized
Obligation Payment Schedule is valid thereunder, the Recognized Obligation Payment Schedule supersedes
the statement of indebtedness previously required under the Redevelopment Law, and commencing from such
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date, the statement of indebtedness will no longer be prepared nor have any effect under the Redevelopment
Law (see “SECURITY FOR THE BONDS—Recognized Obligation Payment Schedule”).
RISK FACTORS
The following information should be considered by prospective investors in evaluating the Bonds.
However, the following does not purport to be an exhaustive listing of risks and other considerations which
may be relevant to investing in the Bonds. In addition, the order in which the following information is
presented is not intended to reflect the relative importance of any such risks.
The various legal opinions to be delivered concurrently with the issuance of the Bonds will be
qualified as to the enforceability of the various legal instruments by limitations imposed by State and federal
laws, rulings and decisions affecting remedies, and by bankruptcy, reorganization or other laws of general
application affecting the enforcement of creditors’ rights, including equitable principles.
Reduction in Taxable Value
Pledged Tax Revenues allocated to the Redevelopment Property Tax Trust Fund are determined by
the amount of incremental taxable value in the Project Area and the current rate or rates at which property in
the Project Area is taxed. The reduction of taxable values of property in the Project Area caused by economic
factors beyond the Agency’s control, such as relocation out of the Project Area by one or more major property
owners, sale of property to a non-profit corporation exempt from property taxation, or the complete or partial
destruction of such property caused by, among other eventualities, earthquake or other natural disaster, could
cause a reduction in the Pledged Tax Revenues that provide for the repayment of and secure the Bonds. Such
reduction of Pledged Tax Revenues could have an adverse effect on the Agency’s ability to make timely
payments of principal of and interest on the Bonds.
As described in greater detail under the heading “PROPERTY TAXATION IN CALIFORNIA—
Article XIIIA of the State Constitution,” Article XIIIA provides that the full cash value base of real property
used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed
a two percent increase for any given year, or may be reduced to reflect a reduction in the consumer price index,
comparable local data or any reduction in the event of declining property value caused by damage, destruction
or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting
reduction in the full cash value base over the term of the Bonds could reduce Pledged Tax Revenues securing
the Bonds.
In addition to the other limitations on, and required application under the Dissolution Act of Pledged
Tax Revenues on deposit in the Redevelopment Property Tax Trust Fund, described herein under the heading
“RISK FACTORS,” the State electorate or Legislature could adopt a constitutional or legislative property tax
reduction with the effect of reducing Pledged Tax Revenues allocated to the Redevelopment Property Tax
Trust Fund and available to the Agency. Although the federal and State Constitutions include clauses
generally prohibiting the Legislature’s impairment of contracts, there are also recognized exceptions to these
prohibitions. There is no assurance that the State electorate or Legislature will not at some future time approve
additional limitations that could reduce the Pledged Tax Revenues and adversely affect the source of
repayment and security of the Bonds.
Risks to Real Estate Market
The Agency’s ability to make payments on the Bonds will be dependent upon the economic strength
of the Project Area. The general economy of the Project Area will be subject to all of the risks generally
associated with urban real estate markets. Real estate prices and development may be adversely affected by
changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected
increases in development costs and by other similar factors. Further, real estate development within the
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Project Area could be adversely affected by limitations of infrastructure or future governmental policies,
including governmental policies to restrict or control development. In addition, if there is a decline in the
general economy of the Project Area, the owners of property within the Project Area may be less able or less
willing to make timely payments of property taxes or may petition for reduced assessed valuation causing a
delay or interruption in the receipt of Pledged Tax Revenues by the Agency from the Project Area.
Reduction in Inflationary Rate
As described in greater detail below, Article XIIIA of the State Constitution provides that the full cash
value of real property used in determining taxable value may be adjusted from year to year to reflect the
inflationary rate, not to exceed a 2 percent increase for any given year, or may be reduced to reflect a reduction
in the consumer price index or comparable local data. Such measure is computed on a calendar year basis.
Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate
or 2 percent, there have been years in which the assessed values were adjusted by actual inflationary rates,
which were less than 2 percent. Since Article XIIIA was approved, the annual adjustment for inflation has
fallen below the 2 percent limitation several times. In Fiscal Year 2010-11 the inflationary value adjustment
was negative for the first time at -0.237%. The inflationary value adjustment for Fiscal Years 2010-11 through
2015-16 are shown below:
Fiscal Year
Inflation Adj. Factor
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
-0.237%
0.753
2.000
2.000
0.454
1.998
The Agency is unable to predict if any adjustments to the full cash value of real property within the
Project Area, whether an increase or a reduction, will be realized in the future.
Development Risks
The general economy of the Project Area will be subject to all the risks generally associated with real
estate development. Projected development within the Project Area may be subject to unexpected delays,
disruptions and changes. Real estate development operations may be adversely affected by changes in general
economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in
development costs and by other similar factors. Further, real estate development operations within the Project
Area could be adversely affected by future governmental policies, including governmental policies to restrict
or control development. If projected development in the Project Area is delayed or halted, the economy of the
Project Area could be affected. If such events lead to a decline in assessed values they could cause a reduction
in Pledged Tax Revenues. In addition, if there is a decline in the general economy of the Project Area, the
owners of property within the Project Area may be less able or less willing to make timely payments of
property taxes causing a delay or stoppage of the Pledged Tax Revenues received by the Agency from the
Project Area. In addition, the insolvency or bankruptcy of one or more large owners of property within the
Project Area could delay or impair the receipt of Pledged Tax Revenues by the Agency.
Levy and Collection of Taxes
The Agency has no independent power to levy or collect property taxes. Any reduction in the tax rate
or the implementation of any constitutional or legislative property tax decrease could reduce the Pledged Tax
Revenues, and accordingly, could have an adverse impact on the security for and the ability of the Agency to
repay the Bonds.
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Likewise, delinquencies in the payment of property taxes by the owners of land in the Project Area,
and the impact of bankruptcy proceedings on the ability of taxing agencies to collect property taxes, could
have an adverse effect on the Agency’s ability to make timely payments on the Bonds. Any reduction in
Pledged Tax Revenues, whether for any of these reasons or any other reasons, could have an adverse effect on
the Agency’s ability to pay the principal of and interest on the Bonds.
State Budget Issues
AB X1 26 and AB 1484 were enacted by the State Legislature and Governor as trailer bills necessary
to implement provisions of the State’s budget acts for its Fiscal Years 2011-12 and 2012-13, respectively. The
2011-12 State budget included projected State savings estimated to aggregate $1.7 billion in 2011-12
associated with AB X1 27, which would have allowed redevelopment agencies to continue in operation
provided their establishing cities or counties agreed to make an aggregate $1.7 billion in payments to K-12
schools. However, in December 2011, AB X1 27 was found by the California Supreme Court to violate the
State Constitution, which altered this budgetary plan of the State. According to the State’s Summary of the
2012-13 State budget, AB 1484 implements a framework to transfer cash assets previously held by
redevelopment agencies to cities, counties, and special districts to fund core public services, with assets
transferred to schools offsetting State general fund costs (projected savings of $1.5 billion).
For Fiscal Year 2013-14, the State budget implemented a number of changes, unrelated to
redevelopment dissolution, to help the State work toward (on a multiyear basis) a $1 billion reserve, such as
extending certain medical fees and taxes and continuing the use of miscellaneous State highway account
revenues to pay transportation bond debt service. The 2013-14 budget summary additionally describes
Proposition 98 (schools) General Fund savings estimated at $2.1 billion in 2012-13 and $1.1 billion in 2013-14
as a result of monies generated by redevelopment agency dissolution in those years, a portion of which are
one-time savings generated from the distribution of unencumbered funds held by former redevelopment
agencies.
The budget summary for the State’s enacted 2014-15 budget (the “2014-15 Budget Summary”)
updates the estimated the Proposition 98 (schools) General Fund savings resulting from dissolution of
redevelopment agencies, citing approximately $2.2 billion in such State General Fund savings in 2011-12 and
2012-13 combined, and another estimated $2.1 billion in such State General Fund savings in 2013-14 and
2014-15. As described in the 2014-15 budget summary, the State’s budget is heavily dependent on the
performance of the stock market and the resulting capital gains tax revenues, which are estimated to provide
9.8 percent of General Fund revenues in 2014-15. In response to the volatility of such revenues and the
resulting boom-and-bust budget cycles, the State Legislature placed a constitutional amendment on the
November 2014 ballot, referred to as Proposition 2, which was passed by the voters. Proposition 2 requires,
among other things, beginning in Fiscal Year 2015-16 and annually thereafter, a transfer of 1.5% of estimated
general fund revenues to the state budget stabilization account (the State’s “Rainy Day Fund”), and a deposit
of personal capital gains tax revenues exceeding 8 percent of General Fund revenues (up to a maximum Rainy
Day Fund balance equal to 10 percent of State General Fund revenues). In addition, Proposition 2 requires
half of each year’s deposit into the Rainy Day Fund for the next 15 years to be used for supplemental payments
to reduce the State’s long-term debt or other long-term liabilities. The State deposited funds into the Rainy
Day Fund previously in Fiscal Years 2006–07 and 2007–08, for a total rainy–day fund of $1.5 billion, but the
fund was emptied when revenues plummeted during the financial crisis. Since Fiscal Year 2007–08,
governors have suspended the Rainy Day Fund deposit each year. Proposition 2 allows limited use of funds in
case of emergency or if there is a state budget deficit.
Although the State’s budgets for Fiscal Years 2013-14 and 2014-15 did not include any additional
legislation dealing with dissolution of redevelopment agencies, the Governor’s proposed State budget for
Fiscal Year 2015-16 includes proposed legislation that, if enacted, would affect successor agencies and the
distribution of Pledged Tax Revenues, as described further below.
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Governor’s Proposed 2015-16 State Budget: Changes to the Dissolution Process
On January 9, 2015, California Governor Brown released the proposed Fiscal Year 2015-16 State
budget. Although the Governor’s Budget Summary for the proposed Fiscal Year 2015-16 State budget (the
“2015-16 Proposed Budget Summary”) proposes a balanced budget, the 2015-16 Proposed Budget Summary
cautions that, since 2000, the State’s short periods of balanced budgets have been followed by massive budget
shortfalls. The 2015-16 Proposed Budget Summary projects that by the end of the year, the State’s Rainy Day
Fund will have a total balance of $2.8 billion, increasing from a balance of approximately $1.6 million at the
end of Fiscal Year 2014-15. However, the 2015-16 Proposed Budget Summary also notes that commitments
made by the State in the past two years are already straining the State’s finances. Under a projection of current
policies, the 2015-16 Proposed Budget Summary anticipates that the State would begin to spend more than it
receives in annual revenues by Fiscal Year 2018-19, by an amount of approximately $1 billion.
The 2015-16 Proposed Budget Summary also proposes legislation to modify the process of dissolving
redevelopment agencies: “Administering the orderly dissolution of almost 400 redevelopment agencies has
been complex and time consuming. Oversight of the dissolution process has progressed to the point where the
Budget proposes legislation to streamline the state review process to continue the wind-down activities.” The
proposed legislation, as described in the 2015-16 Proposed Budget Summary, would accomplish the following
changes:

Transition all successor agencies from a biannual Recognized Obligation Payment Schedule
process to an annual Recognized Obligation Payment Schedule process beginning July 1, 2016,
when the successor agencies transition to a countywide oversight board.

Establish an optional “Last and Final” Recognized Obligation Payment Schedule (“Last and Final
ROPS”) process beginning September 2015. The Last and Final ROPS would be available only
to successor agencies that have a Finding of Completion, are in agreement with the State
Department of Finance on what items qualify for payment, and meet other specified conditions. If
approved by the State Department of Finance, the Last and Final ROPS would be binding on all
parties, and the successor agency would no longer submit a Recognized Obligation Payment
Schedule to the State Department of Finance or the oversight board. The county auditorcontroller would remit the authorized funds to the successor agency in accordance with the
approved Last and Final ROPS until each remaining enforceable obligation has been fully paid.

Former tax increment caps and redevelopment plan expirations would not apply for the purposes
of paying approved enforceable obligations, to assure that funding would continue to flow until all
approved enforceable obligations have been paid.

Reentered agreements that are not for the purpose of providing administrative support activities
would not be authorized or enforceable.

Litigation expenses associated with challenging dissolution determinations would not be separate
enforceable obligations, but rather must be funded as part of the successor agency’s
administrative cost allowance (an amount that is limited by a formula under the Dissolution Act).

Contractual and statutory pass-through payments would end upon termination of all of a successor
agency’s enforceable obligations.

The State Department of Finance would be exempt from the regulatory process and the federal
Administrative Procedures Act.

County auditor-controllers’ offices would serve as staff for countywide oversight boards.
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Except for the first two bullet points listed above, the Governor and the State Department of Finance
view the proposed changes as “clarifying language,” but there is disagreement among dissolution process
participants as to whether such proposed changes are merely clarifying changes or would constitute changes in
the existing law. The language of the legislation proposed by the 2015-16 Proposed Budget Summary to
change the dissolution process was released in February 2015. There can be no assurance that additional
provisions affecting successor agencies or Pledged Tax Revenues will not be included in the proposed
legislation relating to the 2015-16 State budget, or that additional legislation will not be enacted in the future to
implement other provisions affecting successor agencies or Pledged Tax Revenues.
The full text of each State Assembly bill cited above may be obtained from the “Official California
Legislative Information” website maintained by the Legislative Counsel of the State of California pursuant to
State law, at the following web link: http://www.leginfo.ca.gov/bilinfo.html.
Information about the State budget and State spending is available at various State maintained
websites. Text of the 2015-16 Proposed Budget Summary, the Governor’s proposed 2015-16 State budget, the
2014-15 Budget Summary, the current State budget, and other documents related to the State budget may be
found at the website of the State Department of Finance, www.dof.ca.gov. A nonpartisan analysis of the
budget is posted by the Legislative Analyst’s Office at www.lao.ca.gov. In addition, various State official
statements, many of which contain a summary of the current and past State budgets may be found at the
website of the State Treasurer, www.treasurer.ca.gov.
None of the websites or webpages referenced above is in any way incorporated into this Official
Statement. They are cited for informational purposes only. The Agency and the Underwriter make no
representation whatsoever as to the accuracy or completeness of any of the information on such websites.
Recognized Obligation Payment Schedule
The Dissolution Act provides that, commencing on the date the first Recognized Obligation Payment
Schedule is valid thereunder, only those payments listed in the Recognized Obligation Payment Schedule may
be made by the Agency from the funds specified in the Recognized Obligation Payment Schedule. Before
each six-month period, the Dissolution Act requires successor agencies to prepare and approve, and submit to
the successor agency’s oversight board and the State Department of Finance for approval, a Recognized
Obligation Payment Schedule pursuant to which enforceable obligations (as defined in the Dissolution Act) of
the successor agency are listed, together with the source of funds to be used to pay for each enforceable
obligation. Pledged Tax Revenues will not be distributed from the Redevelopment Property Tax Trust Fund
by the County Auditor-Controller to the Agency’s Redevelopment Obligation Retirement Fund without a duly
approved and effective Recognized Obligation Payment Schedule obtained in sufficient time prior to the
January 2 or June 1 distribution dates, as applicable. See “SECURITY FOR THE BONDS—Recognized
Obligation Payment Schedule” and “PROPERTY TAXATION IN CALIFORNIA—Property Tax Collection
Procedures—Recognized Obligation Payment Schedule.” In the event the Agency were to fail to file a
Recognized Obligation Payment Schedule with respect to a six-month period, the availability of Pledged Tax
Revenues to the Agency could be adversely affected for such period.
In the event a successor agency fails to submit to the State Department of Finance an oversight boardapproved Recognized Obligation Payment Schedule complying with the provisions of the Dissolution Act
within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to
determine the amount of property tax allocations, the State Department of Finance may determine if any
amount should be withheld by the applicable county auditor-controller for payments for enforceable
obligations from distribution to taxing entities pursuant to clause (iv) in the following paragraph, pending
approval of a Recognized Obligation Payment Schedule. Upon notice provided by the State Department of
Finance to the county auditor-controller of an amount to be withheld from allocations to taxing entities, the
county auditor-controller must distribute to taxing entities any monies in the Redevelopment Property Tax
Trust Fund in excess of the withholding amount set forth in the notice, and the county auditor-controller must
33
distribute withheld funds to the successor agency only in accordance with a Recognized Obligation Payment
Schedule when and as approved by the State Department of Finance.
Typically, under the Redevelopment Property Tax Trust Fund distribution provisions of the
Dissolution Act, the County Auditor-Controller is to distribute funds for each six-month period in the
following order specified in Section 34183 of the Dissolution Act: (i) first, subject to certain adjustments for
subordinations to the extent permitted under the Dissolution Act (as described above under “SECURITY FOR
THE BONDS—Tax Increment Financing”) and no later than each January 2 and June 1, to each local agency
and school entity, to the extent applicable, amounts required for pass-through payments such entity would have
received under provisions of the Redevelopment Law, as those provisions read on January 1, 2011, including
pursuant to the Pass-Through Agreements and Statutory Pass-Through Amounts; (ii) second, on each
January 2 and June 1, to the Agency for payments listed in its Recognized Obligation Payment Schedule, with
debt service payments scheduled to be made for tax allocation bonds having the highest priority over payments
scheduled for other debts and obligations listed on the Recognized Obligation Payment Schedule; (iii) third, on
each January 2 and June 1, to the Agency for the administrative cost allowance, as defined in the Dissolution
Act; and (iv) fourth, on each January 2 and June 1, to taxing entities any moneys remaining in the
Redevelopment Property Tax Trust Fund after the payments and transfers authorized by clauses (i) through
(iii), in an amount proportionate to such taxing entity’s share of property tax revenues in the tax rate area in
that Fiscal Year (without giving effect to any pass-through obligations that were established under the
Redevelopment Law).
If the Agency does not submit an Oversight Board-approved Recognized Obligation Payment
Schedule within five business days of the date upon which the Recognized Obligation Payment Schedule is to
be used to determine the amount of property tax allocations and the State Department of Finance does not
provide a notice to the County Auditor-Controller to withhold funds from distribution to taxing entities,
amounts in the Redevelopment Property Tax Trust Fund for such six-month period would be distributed to
taxing entities pursuant to clause (iv) above. However, the Agency has covenanted to take all actions required
under the Dissolution Act to include scheduled debt service on the Bonds, as well as any amount required
under the Indenture to replenish the Reserve Account of the Debt Service Fund, in Recognized Obligation
Payment Schedules for each six-month period and to enable the County Auditor-Controller to distribute from
the Redevelopment Property Tax Trust Fund to the Agency’s Redevelopment Obligation Retirement Fund on
each January 2 and June 1 amounts required for the Agency to pay principal of, and interest on, the Bonds
coming due in the respective six-month period, including listing a reserve on the Recognized Obligation
Payment Schedule to the extent required by the Indenture or when the next property tax allocation is projected
to be insufficient to pay all obligations due under the provisions of the Bonds for the next payment due in the
following six-month period (see “THE INDENTURE—Covenants of the Agency”).
AB 1484 also adds new provisions to the Dissolution Act implementing certain penalties in the event
the Agency does not timely submit a Recognized Obligation Payment Schedule for a six-month period.
Specifically, a Recognized Obligation Payment Schedule must be submitted by the Agency, after approval by
the Oversight Board, to the County Administrative Officer, the County Auditor-Controller, the State
Department of Finance, and the State Controller no later than September 1, 2012 with respect to the six-month
period of January 1, 2013 through June 30, 2013 and by 90 days before the date of the next January 2 or June 1
property tax distribution with respect to each subsequent six-month period. If the Agency does not submit a
Recognized Obligation Payment Schedule by such deadlines, the City will be subject to a civil penalty equal to
$10,000 per day for every day the schedule is not submitted to the State Department of Finance. Additionally,
the Agency’s administrative cost allowance is reduced by 25% if the Agency does not submit a Recognized
Obligation Payment Schedule by September 11, 2012, with respect to the Recognized Obligation Payment
Schedule for the first half of calendar year 2012, or by the 80th day before the date of the next January 2 or
June 1 property tax distribution, as applicable, with respect to the Recognized Obligation Payment Schedule
for subsequent six-month periods.
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See “RISK FACTORS — State Budget Issues” for a discussion of the Governor’s proposal to
transition successor agencies to an annual ROPS process instead of a biannual process.
AB 1484 Penalty for Failure to Remit Unencumbered Funds
AB 1484 further implements certain provisions of ABX1 26, including establishing a process for
determining the liquid assets that redevelopment agencies should have shifted to their successor agencies when
they were dissolved, and the amount that should be available for remittance by the successor agencies to their
respective county auditor-controllers for distribution to affected taxing entities within the project areas of the
former redevelopment agencies. This determination process is commonly known as the “due diligence review
process” and was required to be completed through the final step (review by the State Department of Finance)
by November 9, 2012 with respect to affordable housing funds and by April 1, 2013 with respect to nonhousing funds. Successor Agencies that failed to remit the amounts determined by the State Department of
Finance by the respective deadlines are subject to certain penalties and remedies under AB 1484.
On May 6, 2014, the State Department of Finance issued to the Agency a “finding of completion,”
which confirms that the Agency has, among other things, paid in full the amounts determined during the due
diligence reviews and the county auditor-controller has reported those payments to the State Department of
Finance. Accordingly, based on this finding of completion, neither the Agency nor the City are subject to any
AB 1484 penalties for a failure to remit unencumbered funds.
Bankruptcy and Foreclosure
The payment of property taxes from which Pledged Tax Revenues are derived and the ability of the
County to foreclose the lien of a delinquent unpaid tax may be limited by bankruptcy, insolvency, or other
laws generally affecting creditors’ rights or by the laws of the State relating to judicial foreclosure. The
various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel’s
approving legal opinions) will be qualified as to the enforceability of the various legal instruments by
bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights, by the
application of equitable principles and by the exercise of judicial discretion in appropriate cases.
Although bankruptcy proceedings would not cause the liens to become extinguished, bankruptcy of a
property owner could result in a delay in prosecuting superior court foreclosure proceedings. Such delay
would increase the possibility of delinquent tax installments not being paid in full and thereby increase the
likelihood of a delay or default in payment of the principal of and interest on the Bonds.
Bond Insurance
In the event the Agency defaults in the payment of principal of or interest on the Insured Bonds when
due, the owners of the Insured Bonds will have a claim under the Policy for such payments. See “BOND
INSURANCE.” In the event AGM becomes obligated to make payments with respect to the Insured Bonds,
no assurance can be given that such event will not adversely affect the market for the Insured Bonds. In the
event AGM is unable to make payment of principal of and interest on the Insured Bonds when due under the
Policy, the Insured Bonds will be payable solely from Pledged Tax Revenues and amounts held in certain
funds and accounts established under the Indenture, as described in “SECURITY FOR THE BONDS.”
The long-term ratings of the Insured Bonds are dependent in part on the financial strength of AGM
and its claims-paying ability. AGM’s financial strength and claims-paying ability are predicated upon a
number of factors which could change over time. If the long-term ratings of AGM are lowered, such event
could adversely affect the market for the Insured Bonds. See “RATINGS” below.
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Neither the Agency nor the Underwriter has made an independent investigation of the claims-paying
ability of AGM and no assurance or representation regarding the financial strength or projected financial
strength of AGM is being made by the Agency or the Underwriter in this Official Statement. Therefore, when
making an investment decision with respect to the Insured Bonds, potential investors should carefully consider
the ability of the Agency to pay principal and interest on the Insured Bonds, assuming the Policy is not
available for that purpose, and the claims-paying ability of AGM through final maturity of the Insured Bonds.
So long as the Policy remains in effect and AGM is not in default of its obligations thereunder, AGM
has certain notice, consent and other rights under the Indenture and will have the right to control all remedies
for default under the Indenture and will not be required to obtain the consent of the Owners with respect to the
exercise of remedies.
Estimated Revenues
In estimating that Pledged Tax Revenues will be sufficient to pay debt service on the Bonds, the
Agency has made certain assumptions with regard to present and future assessed valuation in the Project Area,
future tax rates and percentage of taxes collected. The Agency believes these assumptions to be reasonable,
but there is no assurance these assumptions will be realized and to the extent that the assessed valuation and
the tax rates are less than expected, the Pledged Tax Revenues available to pay debt service on the Bonds will
be less than those projected and such reduced Pledged Tax Revenues may be insufficient to provide for the
payment of principal of, premium (if any) and interest on the Bonds.
Hazardous Substances
An environmental condition that may result in the reduction in the assessed value of property would
be the discovery of a hazardous substance that would limit the beneficial use of taxable property within the
Project Area. In general, the owners and operators of a property may be required by law to remedy conditions
of the property relating to releases or threatened releases of hazardous substances. The owner or operator may
be required to remedy a hazardous substance condition of property whether or not the owner or operator has
anything to do with creating or handling the hazardous substance. If this situation were to occur with property
within the Project Area, the costs of remedying it could reduce the marketability and taxable value of the
property.
Seismic Factors
The City, like most regions in the State, is located in an area of seismic activity and, therefore, could
be subject to potentially destructive earthquakes. The Project Area straddles the broad and geologically
complex zone where the flat Sacramento Valley meets the foothills of the Sierra Nevada mountains. The
Cleveland Hills fault, last active in 1975, is located 5 miles south of the Project Area. In addition, the Project
Area could potentially be affected by active faults which are located a considerable distance from Oroville,
including the Midland-Sweitzer, the San Andreas, the Hayward-Calaveras, the Russell Valley, and the Last
Chance-Honey Lake faults.
The occurrence of severe seismic activity in the City could result in substantial damage to property
located in the Project Area, and could lead to successful appeals for reduction of assessed values of such
property. Such a reduction of assessed valuations could result in a reduction of the Pledged Tax Revenues that
secure the Bonds.
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Risk of Floods
The City is subject to flooding hazards associated with dam failure, release of water and flooding
associated with major waterways. Most substantial among these risks is flooding from the Oroville Dam,
located northeast of the City. Other smaller dams, upstream of the Oroville Dam, also pose a risk of flooding
to the City. Failure of the Oroville Dam could result in release of water held behind the dam, and inundation
of much of the city and surrounding area. A major seismic event would be the most likely cause of dam
failure. A number of geologic faults have been mapped in the Oroville area which could cause a seismic event.
However, based on studies of the dam completed following the 1975 Oroville earthquake, the dam could
withstand a 6.5 magnitude earthquake, which is considered to be the largest credible event projected for the
region. Landslides around the reservoir rim have occurred since Lake Oroville has been in operation. These
landslides are not considered to pose a threat to the freeboard of the dam or the safety of the public.
For more information, see the Safety Element of the City’s General Plan on file with the City Clerk.
As with seismic hazards, the occurrence of flood damage to property located in the Project Area could lead to
successful appeals for reduction of assessed values of such property and any reduction of assessed valuations
could result in a reduction of the Pledged Tax Revenues that secure the Bonds.
Wildland and Urban Fire Hazards
Most areas of the City face some level of threat from wildland fire. The eastern part of the City’s
General Plan Planning Area is at the greatest risk and is designated as a Very High Fire Hazard Severity Zone
by CAL FIRE. This is due to the location of homes within areas of denser vegetation, and where steep slopes
and other similar conditions exist. The risk of losses as a result of wildland fire can be amplified by the
relatively poor access provided by rural roads and the lack of fire hydrants.
Responsibility for prevention and response to wildland fire is provided by the Oroville Fire
Department (OFD), while unincorporated portions of the City’s planning area are served by the California
Department of Forestry & Fire Protection/Butte County Fire Department (CAL FIRE/BCFD) and the El Medio
Fire Department. The OFD, CAL FIRE/BCFD and El Medio Fire Department have an automatic aid
agreement, in which personnel and equipment are shared in the event of an emergency.
For more information, including a discussion of the City’s fire protection services, please see the
Safety Element of the City’s General Plan on file with the City Clerk.
As with seismic and flood hazards, the occurrence of wildland or urban fire damage to property
located in the Project Area could lead to successful appeals for reduction of assessed values of such property
and any reduction of assessed valuations could result in a reduction of the Pledged Tax Revenues that secure
the Bonds.
Changes in the Law
There can be no assurance that the California electorate will not at some future time adopt initiatives
or that the Legislature will not enact legislation that will amend the Dissolution Act, the Redevelopment Law
or other laws or the Constitution of the State resulting in a reduction of Pledged Tax Revenues, which could
have an adverse effect on the Agency’s ability to pay debt service on the Bonds.
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Investment Risk
Funds held under the Indenture are required to be invested in Permitted Investments as provided under
the Indenture. See Appendix B attached hereto for a summary of the definition of Permitted Investments. The
funds and accounts of the Agency, into which a portion of the proceeds of the Bonds will be deposited and into
which Pledged Tax Revenues are deposited, may be invested by the Agency in any investment authorized by
law. All investments, including the Permitted Investments and those authorized by law from time to time for
investments by municipalities, contain a certain degree of risk. Such risks include, but are not limited to, a
lower rate of return than expected and loss or delayed receipt of principal.
Further, the Agency cannot predict the effects on the receipt of Pledged Tax Revenues if the County
were to suffer significant losses in its portfolio of investments or if the County or the City were to become
insolvent or declare bankruptcy. See “RISK FACTORS—Bankruptcy and Foreclosure.”
Additional Obligations
The potential for the issuance of Parity Bonds could, in certain circumstances, increase the risks
associated with the Agency’s payment of debt service on the Bonds in the event of a decrease in the Agency’s
collection of Pledged Tax Revenues. However, Section 34177.5 of the Dissolution Act provides limited
authority for successor agencies to issue bonds, and the Agency’s ability to issue Parity Bonds is subject to the
requirements of the Dissolution Act as in effect from time to time. For additional information, see described
“SECURITY FOR THE BONDS—Parity Bonds.”
Loss of Tax Exemption
As discussed under the caption “CONCLUDING INFORMATION—Tax Exemption,” interest on the
2015A Bonds could become includable in gross income for purposes of federal income taxation retroactive to
the date the 2015A Bonds were issued, as a result of future acts or omissions of the Agency in violation of its
covenants in the Indenture.
In addition, current and future legislative proposals, if enacted into law, may cause interest on the
2015A Bonds to be subject, directly or indirectly, to federal income taxation by, for example, changing the
current exclusion or deduction rules to limit the aggregate amount of interest on state and local government
bonds that may be treated as tax exempt by individuals.
Should such an event of taxability occur, the 2015A Bonds are not subject to special redemption and
will remain outstanding until maturity or until redeemed under other provisions set forth in the Indenture.
Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds, or, if a secondary
market exists, that the Bonds can be sold for any particular price. Occasionally, because of general market
conditions or because of adverse history or economic prospects connected with a particular issue, secondary
marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of
issues for which a market is being made will depend upon the then prevailing circumstances.
No Validation Proceeding Undertaken
California Code of Civil Procedure Section 860 authorizes public agencies to institute a process,
otherwise known as a “validation proceeding,” for purposes of determining the validity of a resolution or any
action taken pursuant thereto. Section 860 authorizes a public agency to institute validation proceedings in
cases where another statute authorizes its use. Relevant to the Bonds, California Government Code
Section 53511 authorizes a local agency to “bring an action to determine the validity of its bonds, warrants,
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contracts, obligations or evidences of indebtedness.” Pursuant to Code of Civil Procedure Section 870, a final
favorable judgment issued in a validation proceeding shall, notwithstanding any other provision of law, be
forever binding and conclusive, as to all matters therein adjudicated or which could have been adjudicated,
against all persons: “The judgment shall permanently enjoin the institution by any person of any action or
proceeding raising any issue as to which the judgment is binding and conclusive.”
The Agency has not undertaken or endeavored to undertake any validation proceeding in connection
with the issuance of the Bonds. The Agency and Bond Counsel have relied on the provisions of AB 1484
authorizing the issuance of the Bonds and specifying the related deadline for any challenge to the Bonds to be
brought. Specifically, Section 34177.5(e) of the Dissolution Act provides that notwithstanding any other law,
an action to challenge the issuance of bonds (such as the Bonds), the incurrence of indebtedness, the
amendment of an enforceable obligation, or the execution of a financing agreement authorized under
Section 34177.5, must be brought within thirty (30) days after the date on which the oversight board approves
the resolution of the successor agency approving the financing. Such challenge period expired with respect to
the Bonds and the Oversight Board Resolution on January 16, 2015.
It is possible that a lawsuit challenging the Dissolution Act or specific provisions thereof could be
successful and that the mechanisms currently provided for under the Dissolution Act to provide for distribution
of Pledged Tax Revenues to the Agency for payment on the Bonds could be impeded and result in a
delinquency or default in the timely payment of principal of, and interest on, the Bonds. For example, with
respect to California successor agencies and the Dissolution Act in general, on August 1, 2012, Syncora
Guarantee Inc. and Syncora Capital Assurance Inc. (collectively, “Syncora”) filed a lawsuit against the State,
the State Controller, the State Director of Finance, and the Auditor-Controller of San Bernardino County on his
own behalf and as the representative of all other county auditors in the State (Superior Court of the State of
California, County of Sacramento, Case No. 34-2012-80001215) (the “Syncora Lawsuit”) challenging the
terms of the Dissolution Act. Syncora are monoline financial guaranty insurers domiciled in the State of New
York, and as such, provide credit enhancement on bonds issued by state and local governments and do not sell
other kinds of insurance such as life, health, or property insurance. Syncora provided bond insurance and other
related insurance policies for bonds issued by former California redevelopment agencies.
The Syncora Lawsuit was brought as a petition for writ of mandate, complaint for declaratory relief,
inverse condemnation and injunctive relief. The injunctive relief sought included an injunction enjoining the
respondents from implementing enforcing, and/or carrying out the Redistribution Provisions, ordering
respondents to immediately return all money remitted by successor agencies to local taxing entities pursuant to
the Redistribution Provisions, and ordering respondents to hold all future tax increment revenues in the
RPTTF, or a similar fund, for the exclusive benefit of, and distribution to, the bondholders, until such a time
when the bondholders are completely repaid. In August 2013, the court ordered Syncora’s claims dismissed,
without prejudice to refile, as premature claims for impairment of contract and an unconstitutional taking. The
court noted that no redevelopment agency bonds are in default.
The original complaint alleged that the Dissolution Act, and specifically the “Redistribution
Provisions” thereof (i.e., California Health and Safety Code Sections 34172(d), 34174, 34177(d), 34183(a)(4),
and 34188) violate the “contract clauses” of the United States and California Constitutions (U.S. Const. art. 1,
§ 10, cl.1; Cal. Const. art. 1, § 9) because they unconstitutionally impair the contracts among the former
redevelopment agencies, bondholders and Syncora. The complaint also alleged that the Redistribution
Provisions violate the “Takings Clauses” of the United States and California Constitutions (U.S. Const. amend.
V; Cal Const. art. 1 § 19) because they unconstitutionally take and appropriate bondholders’ and Syncora’s
contractual right to critical security mechanisms without just compensation. Specifically, the complaint alleges
that the security mechanism created by the irrevocable pledge of tax increment revenues to repay the
redevelopment agency debts was a critical feature of the redevelopment bonds’ marketability. No assurance
can be made that Syncora will not re-file its claim at a later date.
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However, the Indenture additionally provides that if, and to the extent, that the provisions of
Section 34172 or paragraph (2) of subdivision (a) of Section 34183 of the Dissolution Act (upon which the
distribution of Pledged Tax Revenues to the Agency rely) are invalidated by a final judicial decision, then
Pledged Tax Revenues shall include all tax revenues allocated to the payment of indebtedness pursuant to
Health & Safety Code Section 33670 or such other section as may be in effect at the time providing for the
allocation of tax increment revenues in accordance with Article XVI, Section 16 of the California Constitution.
Additionally, any action by a court to invalidate provisions of the Dissolution Act required for the timely
payment of principal of, and interest on, the Bonds could raise issues regarding the unconstitutional
impairment of contracts or an unconstitutional taking without just compensation. The Agency believes that the
aforementioned considerations would provide some protections against the adverse consequences upon the
Agency and the availability of Pledged Tax Revenues for the payment of debt service on the Bonds in the
event of successful challenges to the Dissolution Act or portions thereof. However, the Agency does not
guarantee that any lawsuit challenging the Dissolution Act or portions thereof will not result in an outcome
that may have a detrimental effect on the Agency’s ability to timely pay debt service on the Bonds.
Section 34177.5(f) of the Dissolution Act additionally provides that if the State Department of Finance
has requested review of the Oversight Board Resolution and, after review, has approved the resolution, the
scheduled payments on the Bonds shall be listed in the Recognized Obligation Payment Schedule and will not
be subject to further review and approval by the State Department of Finance or the State Controller. This is a
statutory limitation on the authority of the State Department of Finance with respect to its reviews of the semiannual submissions of Recognized Obligation Payment Schedules by the Agency.
However, the DOF Determination Letter includes the following statement: “This approval is based on
the understanding that no refunding bonds will be issued unless such bonds meet the limitations in HSC
Section 34177.5(a). Following the issuance, the payments for the refunding bonds should be placed on future
Recognized Obligation Payment Schedule (ROPS) for [DOF’s] review.” The issuance of the Bonds will be
accompanied by approving legal opinions regarding the due and valid authorization of the 2015A Bonds and
the 2015B Bonds, respectively, under the Bond Law, Health and Safety Code Section 34177.5, the Successor
Agency Resolution, the Oversight Board Resolution, and the Indenture, all substantially in the forms attached
hereto as Appendix C. However, investors should be aware that, since the effectiveness of the Dissolution Act,
the State Department of Finance and various successor agencies have from time to time disagreed about the
interpretation of different language contained in the Dissolution Act, as well as whether or not the State
Department of Finance has exceeded its authority in rejecting items from Recognized Obligation Payment
Schedules submitted by successor agencies, as evidenced by numerous lawsuits. While the Agency has
covenanted in the Indenture to preserve and protect the security of the Bonds and the rights of the Bondowners
and to contest by court action or otherwise any assertion by any officer of any government unit or any other
person whatsoever against the Agency that the Pledged Tax Revenues pledged under the Indenture cannot be
paid to the Agency for the debt service on the Bonds (see “THE INDENTURE—Covenants of the Agency”),
any such action taken by the Agency could incur substantial time and cost that may have a detrimental effect
on the Agency’s ability to timely pay debt service on the Bonds. Moreover, the Agency cannot guarantee the
outcome of any such action taken by the Agency to preserve and protect the security of the Bonds and the
rights of the Bondowners.
PROPERTY TAXATION IN CALIFORNIA
Property Tax Collection Procedures
Classification. In the State, property which is subject to ad valorem taxes is classified as “secured” or
“unsecured.” Secured and unsecured property are entered on separate parts of the assessment roll maintained
by the County assessor. The secured classification includes property on which any property tax levied by a
county becomes a lien on that property. A tax levied on unsecured property does not become a lien against the
taxed unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax
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which becomes a lien on secured property has priority over all other liens on the secured property arising
pursuant to State law, regardless of the time of the creation of other liens.
Generally, ad valorem taxes are collected by a county (the “Taxing Authority”) for the benefit of the
various entities (cities, schools and special districts) that share in the ad valorem tax (each a taxing entity) and
successor agencies eligible to receive distributions from the respective Redevelopment Property Tax Trust
Funds.
Collections. Secured and unsecured property are entered separately on the assessment roll maintained
by the county assessor. The method of collecting delinquent taxes is substantially different for the two
classifications of property. The taxing authority has four ways of collecting unsecured personal property taxes:
(i) initiating a civil action against the taxpayer, (ii) filing a certificate in the office of the county clerk
specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer, (iii) filing a
certificate of delinquency for record in the county recorder’s office to obtain a lien on certain property of the
taxpayer, and (iv) seizing and selling personal property, improvements or possessory interests belonging or
assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes with respect to
property on the secured roll is the sale of the property securing the taxes to the State for the amount of taxes
which are delinquent.
Penalty. A 10% penalty is added to delinquent taxes which have been levied with respect to property
on the secured roll. In addition, property on the secured roll on which taxes are delinquent is declared in
default by operation of law and declaration of the tax collector on or about June 30 of each Fiscal Year. Such
property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a
redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years
or more, the property is deeded to the State and then is subject to sale by the county tax collector. A 10%
penalty also applies to delinquent taxes with respect to property on the unsecured roll, and further, an
additional penalty of 1.5% per month accrues with respect to such taxes beginning on varying dates related to
the tax bill mailing date.
Delinquencies. The valuation of property is determined as of the January 1 lien date as equalized in
August of each year and equal installments of taxes levied upon secured property become delinquent on the
following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent
August 31. The County has adopted the Alternative Method of Distribution of Tax Levies and Collections and
of Tax Sale Proceeds (known as the “Teeter Plan”), as provided for in Section 4701 et seq. of the Revenue and
Taxation Code of the State. Under Teeter Plan, each participating local agency, including cities, levying
property fixes in a county receives the amount of uncollected taxes credited to its fund, in the same manner as
if the amount credited had been collected. In return, the county receives and retains delinquent payments,
penalties and interest as collected, that would have been due the local agency. However, although a local
agency receives the total levy for its property taxes without regard to actual collections, to the extent of a
reserve established and held by its county for this purpose, the basic legal liability for property tax deficiencies
at all times remains with the local agency.
The Teeter Plan is to remain in effect unless the County Board of Supervisors orders its
discontinuance or unless, prior to the commencement of any Fiscal Year of the County, the Board of
Supervisors receives a petition for its discontinuance from two-thirds of the participating revenue districts in
the County. The Board of Supervisors may, after holding a public hearing on the matter, discontinue the
procedures under the Teeter Plan with respect to any tax levying agency in its County.
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As a result of its participation in the Teeter Plan, delinquent property taxes do not impact the
Agency’s tax increment revenues. To the extent the Teeter Plan continues in existence and is carried out as
adopted, the Teeter Plan may help protect the Owners from the risk of delinquencies in ad valorem taxes.
Supplemental Assessments. California Revenue and Taxation Code Section 75.70 provides for the
supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion
of new construction. Prior to the enactment of this law, the assessment of such changes was permitted only as
of the next tax lien date following the change, and this delayed the realization of increased property taxes from
the new assessments for up to 14 months. This statute provides increased revenue to the Redevelopment
Property Tax Trust Fund to the extent that supplemental assessments of new construction or changes of
ownership occur within the boundaries of redevelopment projects subsequent to the January 1 lien date. To the
extent such supplemental assessments occur within the Project Area, Pledged Tax Revenues may increase.
Property Tax Administrative Costs. In 1990, the Legislature enacted SB 2557 (Chapter 466, Statutes
of 1990) which allows counties to charge for the cost of assessing, collecting and allocating property tax
revenues to local government jurisdictions in proportion to the tax-derived revenues allocated to each.
SB 1559 (Chapter 697, Statutes of 1992) explicitly includes redevelopment agencies among the jurisdictions
which are subject to such charges. In addition, Sections 34182(e) and 34183(a) of the Dissolution Act allow
administrative costs of the County Auditor-Controller for the cost of administering the provisions of the
Dissolution Act, as well as the foregoing SB 1559 amounts, to be deducted from property tax revenues before
monies are deposited into the Redevelopment Property Tax Trust Fund. The County’s administrative charge to
the Agency for the Project Area for Fiscal Year 2014-15 is estimated to be $259,103, based on a rate of 3.39%
of anticipated gross RPTTF revenue.
Negotiated Pass-Through Agreements.
Prior to 1994, under the Redevelopment Law, a
redevelopment agency could enter into an agreement to pay increment revenues to any taxing agency that has
territory located within a redevelopment project in an amount which in the agency’s determination is
appropriate to alleviate any financial burden or detriment caused by the redevelopment project. These
agreements normally provide for payment or pass-through of tax increment revenue directed to the affected
taxing agency, and, therefore, are commonly referred to as pass-through agreements or tax sharing agreements.
The Agency agreements with affected taxing agencies are referred to herein as “Pass-Through Agreements.”
See “THE PROJECT AREA—Pass-Through Agreements” for a summary of the Pass-Through Agreements.
See also “SECURITY FOR THE BONDS—Tax Increment Financing” for additional discussion of the
treatment of Pass-Through Agreements under the Dissolution Act.
Statutory Pass-Through Amounts. The payment of Statutory Pass-Through Amounts results from
(i) plan amendments which add territory in existing project areas on or after January 1, 1994 and (ii) from plan
amendments which eliminates one or more limitations within a redevelopment plan (such as the removal of the
time limit on the establishment of loans, advances and indebtedness). The calculation of the amount due
affected taxing entities is described in Sections 33607.5 and 33607.7 of the Redevelopment Law. See “THE
PROJECT AREA—Statutory Pass-Through Amounts” and “SECURITY FOR THE BONDS—Tax Increment
Financing” for further information regarding the applicability of the statutory pass-through provisions of the
Redevelopment Law and the Dissolution Act to the Project Area.
Recognized Obligation Payment Schedule. The Dissolution Act provides that, commencing on the
date the first Recognized Obligation Payment Schedule is valid thereunder, only those payments listed in the
Recognized Obligation Payment Schedule may be made by the Agency from the funds specified in the
Recognized Obligation Payment Schedule. Before each six-month period, the Dissolution Act requires
successor agencies to prepare and approve, and submit to the successor agency’s oversight board and the State
Department of Finance for approval, a Recognized Obligation Payment Schedule pursuant to which
enforceable obligations (as defined in the Dissolution Act) of the successor agency are listed, together with the
source of funds to be used to pay for each enforceable obligation. Pledged Tax Revenues will not be
distributed from the Redevelopment Property Tax Trust Fund by the County Auditor-Controller to the
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Agency’s Redevelopment Obligation Retirement Fund without a duly approved and effective Recognized
Obligation Payment Schedule obtained in sufficient time prior to the January 2 or June 1 distribution dates, as
applicable. See “SECURITY FOR THE BONDS—Recognized Obligation Payment Schedule” and “RISK
FACTORS—Recognized Obligation Payment Schedule.”
Unitary Property
Assembly Bill (“AB”) 2890 (Statutes of 1986, Chapter 1457) provides that, commencing with Fiscal
Year 1988-89, assessed value derived from State-assessed unitary property (consisting mostly of operational
property owned by utility companies) is to be allocated county-wide as follows: (i) each tax rate area will
receive that same amount from each assessed utility received in the previous Fiscal Year unless the applicable
county-wide values are insufficient to do so, in which case values will be allocated to each tax rate area on a
pro-rata basis; and (ii) if values to be allocated are greater than in the previous Fiscal Year, each tax rate area
will receive a pro-rata share of the increase from each assessed utility according to a specified formula.
Additionally, the lien date on State-assessed property is changed from March 1 to January 1.
AB 454 (Statutes of 1987, Chapter 921) further modifies chapter 1457 regarding the distribution of tax
revenues derived from property assessed by the State Board of Equalization. Chapter 921 provides for the
consolidation of all State-assessed property, except for regulated railroad property, into a single tax rate area in
each county. Chapter 921 further provides for a new method of establishing tax rates on State-assessed
property and distribution of property tax revenue derived from State-assessed property to taxing jurisdictions
within each county in accordance with a new formula. Railroads will continue to be assessed and revenues
allocated to all tax rate areas where railroad property is sited.
The County Auditor-Controller has not reported any unitary utility revenue for the Project Area and
the projections set forth in the Fiscal Consultant’s Report and under the heading “PLEDGED TAX
REVENUES—Projected Taxable Valuation and Pledged Tax Revenues” do not incorporate any unitary utility
revenue.
Article XIIIA of the State Constitution
Article XIIIA limits the amount of ad valorem taxes on real property to 1% of “full cash value” of
such property, as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the
County Assessor’s valuation of real property as shown on the 1975-76 tax bill under ‘full cash value,’ or,
thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership
has occurred after the 1975 assessment.” Furthermore, the “full cash value” of all real property may be
increased to reflect the rate of inflation, as shown by the consumer price index, not to exceed 2% per year, or
may be reduced.
Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the
event of declining property values caused by substantial damage, destruction or other factors, and to provide
that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged
or destroyed in a disaster and in other special circumstances.
Article XIIIA (i) exempts from the 1% tax limitation taxes to pay debt service on (a) indebtedness
approved by the voters prior to July 1, 1978 or (b) bonded indebtedness for the acquisition or improvement of
real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the
proposition; (ii) requires a vote of two-thirds of the qualified electorate to impose special taxes, or certain
additional ad valorem taxes; and (iii) requires the approval of two-thirds of all members of the State
Legislature to change any State tax laws resulting in increased tax revenues.
The validity of Article XIIIA has been upheld by both the California Supreme Court and the United
States Supreme Court.
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In the general election held November 4, 1986, voters of the State approved two measures,
Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 amended Article XIIIA to
provide that the terms “purchase” and “change of ownership,” for the purposes of determining full cash value
of property under Article XIIIA, do not include the purchase or transfer of (1) real property between spouses
and (2) the principal residence and the first $1,000,000 of other property between parents and children. This
amendment to Article XIIIA may reduce the rate of growth of local property tax revenues.
Proposition 60 amended Article XIIIA to permit the Legislature to allow persons over the age of 55
who sell their residence and buy or build another of equal or lesser value within two years in the same county,
to transfer the old residence assessed value to the new residence. As a result of the Legislature’s action, the
growth of property tax revenues may decline.
Legislation enacted by the Legislature to implement Article XIIIA provides that all taxable property is
shown at full assessed value as described above. In conformity with this procedure, all taxable property value
included in this Official Statement is shown at 100% of assessed value and all general tax rates reflect the $1
per $100 of taxable value (except as noted). Tax rates for voter-approved bonded indebtedness and pension
liabilities are also applied to 100% of assessed value.
Appropriations Limitation – Article XIIIB
Article XIIIB limits the annual appropriations of the State and its political subdivisions to the level of
appropriations for the prior Fiscal Year, as adjusted for changes in the cost of living, population and services
rendered by the government entity. The “base year” for establishing such appropriations limit is Fiscal Year
1978-79, and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain
increases in the cost of services provided by these public agencies.
Section 33678 of the Redevelopment Law provides that the allocation of taxes to a redevelopment
agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness shall not be
deemed the receipt by an agency of proceeds of taxes levied by or on behalf of an agency within the meaning
of Article XIIIB, nor shall such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation
subject to the limitation of, any other public body within the meaning or for the purpose of the Constitution
and laws of the State, including Section 33678 of the Redevelopment Law. The constitutionality of
Section 33678 has been upheld in two California appellate court decisions. On the basis of these decisions, the
Agency has not adopted an appropriations limit.
Articles XIIIC and XIIID of the State Constitution
At the election held on November 5, 1996, Proposition 218 was passed by the voters of California.
The initiative added Articles XIIIC and XIIID to the State Constitution. Provisions in the two articles affect
the ability of local government to raise revenues. The Bonds are secured by sources of revenues that are not
subject to limitation by Proposition 218. See also “—Propositions 218 and 26” below.
Proposition 87
On November 8, 1988, the voters of the State approved Proposition 87, which amended Article XVI,
Section 16 of the State Constitution to provide that property tax revenue attributable to the imposition of taxes
on property within a redevelopment project area for the purpose of paying debt service on certain bonded
indebtedness issued by a taxing entity (not the Prior Agency or the Agency) and approved by the voters of the
taxing entity after January 1, 1989 will be allocated solely to the payment of such indebtedness and not to
redevelopment agencies.
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Redevelopment Time Limits
In 1993, the State legislature passed AB 1290, which, among other things, required redevelopment
agencies to adopt time limits in each redevelopment plan specifying: 1) the last date to incur debt for a
redevelopment project; 2) the last date to undertake redevelopment activity within a project area; and 3) the
last date to collect tax increment revenue from a project area to repay debt. Pursuant to AB 1290, which took
effect January 1, 1994, the City Council adopted an ordinance amending the Redevelopment Plan to impose
time limits on the incurrence of debt, the effectiveness of the Redevelopment Plan, and the collection of tax
increment revenue and repayment of debt.
In 2001, the California Legislature enacted SB 211, Chapter 741, Statutes 2001, effective January 1,
2002 (“SB 211”), which authorized, among other things, the deletion by ordinance of the legislative body of
the AB 1290 limitation on incurring indebtedness contained in a redevelopment plan adopted prior to
January 1, 1994. However, such elimination triggers statutory tax sharing with those taxing entities that do not
have Pass-Through Agreements. On July 20, 2004, the City adopted an ordinance, pursuant to the
authorization contained in SB 211, deleting the time limit on the Agency’s authority to incur loans, advances
and indebtedness with respect to the Project Area.
Legislation passed in 2003 (SB 1045) and 2004 (SB 1096) required redevelopment agencies to remit
monies to the applicable county Educational Revenue Augmentation Fund (“ERAF”) and also permitted
redevelopment agencies to extend their ability to collect tax increment by one year for each payment required
by such legislation to be made in Fiscal Years 2003-04, 2004-05 and 2005-06. The extensions for Fiscal Years
2004-05 and 2005-06 apply only to plans with existing limits on the effectiveness of the plan that are less than
20 years from the last day of the Fiscal Year in which the ERAF payment is made. The City adopted two
ordinances, pursuant to the authorization granted in SB 1045 and SB 1096, extending the time limits on the
effectiveness of the Redevelopment Plan and the receipt of tax increment. See “THE PROJECT AREA—
Limitations and Requirements of the Redevelopment Plan.”
Appeals of Assessed Values
Pursuant to California law, a property owner may apply for a reduction of the property tax assessment
for such owner’s property by filing a written application, in a form prescribed by the State Board of
Equalization, with the appropriate county board of equalization or assessment appeals board.
In the County, a property owner desiring to reduce the assessed value of such owner’s property in any
one year must submit an application to the County Assessment Appeals Board (the “Appeals Board”).
Applications for any tax year must be submitted by September 15 of such tax year. Following a review of each
application by the staff of the County Assessor’s Office, the staff makes a recommendation to the Appeals
Board on each application which has not been rejected for incompleteness or untimeliness or withdrawn. The
Appeals Board holds a hearing and either reduces the assessment or confirms the assessment. The Appeals
Board generally is required to determine the outcome of appeals within two years of each appeal’s filing date.
Any reduction in the assessment ultimately granted applies only to the year for which application is made and
during which the written application is filed. The assessed value increases to its pre-reduction level for Fiscal
Years following the year for which the reduction application is filed. However, if the taxpayer establishes
through proof of comparable values that the property continues to be overvalued (known as “ongoing
hardship”), the Assessor has the power to grant a reduction not only for the year for which application was
originally made, but also for the then current year as well. Appeals for reduction in the “base year” value of an
assessment, which generally must be made within three years of the date of change in ownership or completion
of new construction that determined the base year, if successful, reduce the assessment for the year in which
the appeal is taken and prospectively thereafter. Moreover, in the case of any reduction in any one year of
assessed value granted for “ongoing hardship” in the then current year, and also in any cases involving
stipulated appeals for prior years relating to base year and personal property assessments, the property tax
revenues from which Pledged Tax Revenues are derived attributable to such properties will be reduced in the
45
then current year. In practice, such a reduced assessment may remain in effect beyond the year in which it is
granted. See “THE PROJECT AREA—Largest Taxpayers” for information regarding the assessed valuations
of the top ten property owners within the Project Area.
Proposition 8
Proposition 8, approved in 1978 (California Revenue and Taxation Code Section 51(b)), provides for
the assessment of real property at the lesser of its originally determined (base year) full cash value
compounded annually by the inflation factor, or its full cash value as of the lien date, taking into account
reductions in value due to damage, destruction, obsolescence or other factors causing a decline in market
value. Reductions under this code section may be initiated by the County Assessor or requested by the
property owner.
After a roll reduction is granted under this code section, the property is reviewed on an annual basis to
determine its full cash value and the valuation is adjusted accordingly. This may result in further reductions or
in value increases. Such increases must be in accordance with the full cash value of the property and may
exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the
State Constitution. Once the property has regained its prior value, adjusted for inflation, it once again is
subject to the annual inflationary factor growth rate allowed under Article XIIIA.
See “PLEDGED TAX REVENUES—Schedule of Historical RPTTF Revenues” and APPENDIX G—
“FISCAL CONSULTANT’S REPORT.” However, the Agency cannot guarantee that reductions undertaken
by the County Assessor or requested by a property owner pursuant to Proposition 8 will not in the future
reduce the assessed valuation of property in the Project Area and, therefore, Pledged Tax Revenues that secure
the Bonds and any Parity Bonds.
Propositions 218 and 26
On November 5, 1996, California voters approved Proposition 218—Voter Approval for Local
Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Amendment.
Proposition 218 added Articles XIIIC and XIIID to the State Constitution, imposing certain vote requirements
and other limitations on the imposition of new or increased taxes, assessments and property-related fees and
charges. On November 2, 2010, California voters approved Proposition 26, the “Supermajority Vote to Pass
New Taxes and Fees Act.” Proposition 26 amended Article XIIIC of the California Constitution by adding an
expansive definition for the term “tax,” which previously was not defined under the California Constitution.
Pledged Tax Revenues securing the Bonds are derived from property taxes which are outside the scope of
taxes, assessments and property-related fees and charges which are limited by Proposition 218 and outside of
the scope of taxes which are limited by Proposition 26.
Future Initiatives
Article XIIIA, Article XIIIB, Article XIIIC and Article XIIID and certain other propositions affecting
property tax levies were each adopted as measures which qualified for the ballot pursuant to California’s
initiative process. From time to time other initiative measures could be adopted, further affecting Agency
revenues or the Agency’s ability to expend revenues.
46
THE PROJECT AREA
General
General. The Project Area consists of approximately 6,080 acres covering approximately 72% of the
land within the City’s boundaries. The Project Area is made up primarily of residential (36.8%) and
commercial (33.2%) uses, with the remainder being industrial and miscellaneous uses.
Development Activities in the Project Area. All properties in the Project Area are subject to the
Agency’s approved development standards and guidelines. The Redevelopment Plan requires that new
construction comply with all applicable State statutes and local laws in effect, including City zoning
ordinances and City codes for building, electrical, heating, ventilating and plumbing. The Redevelopment Plan
further provides that no new improvement shall be substantially modified, altered, repaired or rehabilitated,
except in accordance with development standards and/ or architectural, landscape and site plans submitted to
and approved by the Agency.
The Oroville Redevelopment Project Plan
The City Council of the City adopted the Redevelopment Plan for the Oroville Redevelopment Project
No. 1 (the “Redevelopment Plan”) on July 6, 1981, pursuant to its Ordinance No. 1353. The Redevelopment
Plan has been amended six times. On November 15, 1994, the City Council adopted ordinance No. 1580 to
adjust the Plan’s duration and timeframe to collect tax increment revenue in conformance with the provisions
of Assembly Bill 1290 (“AB 1290”). The second amendment was adopted on December 7, 1999 pursuant to
Ordinance No. 1623, to extend the time limit to incur debt to the maximum permitted by AB 1290. The third
amendment was adopted on November 6, 2001 pursuant to Ordinance No. 1650 in order to increase the bonded
debt limit and the cumulative tax increment limit and to extend further the time limit by which to incur debt.
The fourth amendment was adopted on July 6, 2004 pursuant to Ordinance No. 1702 to extend the time limit
on the duration of the Redevelopment Plan by one year and to extend the time limit to receive property taxes
and pay loans, advances and indebtedness by one year, as allowed under SB 1045. The fifth amendment was
adopted on July 20, 2004 pursuant to Ordinance No. 1704 to eliminate the time limit on the incurrence of debt
pursuant to SB 211. The sixth amendment was adopted on December 21, 2004 by Ordinance No. 1712 to
extend the time limit on the duration of the Plan by two years pursuant to SB 1096.
The Redevelopment Plan was designed to enable the Agency to, among other things, eliminate
blighting influences; encourage existing owners, businesses and tenants within the Project Area to participate
in redevelopment activities; to sustain the existing residential, commercial and industrial base of the
community; to provide required public improvements so as to encourage new construction by private
enterprise; to mitigate development limitations which have and will continue to result in the lack of optimum
utilization of the Project Area; and provide construction and employment opportunities in the development of
those facilities.
The Redevelopment Plan allows for commercial, industrial, residential and public uses, as consistent
with the general plan of the City.
Limitations and Requirements of the Redevelopment Plan
Pursuant to the Redevelopment Plan, the portion of taxes divided and allocated to the Agency may not
exceed a cumulative total of $300 million. As of the date of this Official Statement, the Agency has received
approximately $117,663,608 in tax increment revenues. The Fiscal Consultant projects that the cumulative tax
increment limit will not be reached prior to the last date on which the Agency may receive tax increment or
pay debt under the Redevelopment Plan, as described below.
47
The total amount of bonded indebtedness incurred by the Agency, payable from tax increment
revenues, which can be outstanding at any one time may not exceed $65 million. As of the date of this Official
Statement, the Agency has $21,590,000 of tax allocation bond debt outstanding relating to the existing 2002
Loan Obligations, 2004A Loan Obligations and 2004B Loan Obligations. Issuance of the Bonds would refund
the Refunded Obligations in their entirety.
As amended over the years, the Redevelopment Plan establishes a deadline of July 6, 2024 for plan
termination, and a deadline of 10 years after plan termination (July 6, 2034) for the repayment of debt. On
July 20, 2004, the City adopted an ordinance, pursuant to the authorization contained in SB 211, deleting the
time limit on the Agency’s authority to incur loans, advances and indebtedness with respect to the Project
Area. See “PROPERTY TAXATION IN CALIFORNIA—Redevelopment Time Limits.”
Relative to the impact of the cumulative tax increment limit applicable to the Project Area, the Agency
covenants in the Indenture that, as long as the receipt of Pledged Tax Revenues attributable to the Project Area
is subject to a tax increment limit under the Law, the Agency will annually review (or cause to be reviewed)
the total amount of Pledged Tax Revenues attributable to the Project Area remaining available to be received
by the Agency under the Redevelopment Plan. In the event that the Pledged Tax Revenues attributable to the
Project Area previously received by the Prior Agency or the Agency plus the aggregate debt service remaining
to be paid on the Bonds and any Parity Debt then outstanding, at any time equals or exceeds ninety percent
(90%) of the aggregate amount of Pledged Tax Revenues attributable to the Project Area which the Agency is
permitted to receive under the Redevelopment Plan, the Agency will either:
(i) deposit all future Pledged Tax Revenues attributable to the Project Area not used to pay current
debt service with the Trustee in a special account to be applied for the sole purpose of paying the principal of
and interest on, or the redemption of, the Bonds and any Parity Debt as they become due and payable plus
amounts required to be deposited into the Reserve Account or any reserve account for Parity Debt,
notwithstanding anything herein to the contrary, which account will be invested in non-callable Defeasance
Obligations and used for the payment of interest on and principal of and redemption premiums, if any, on the
Bonds and any Parity Debt and amounts required to be deposited into the Reserve Account or any reserve
account for Parity Debt; or
(ii) adopt a plan approved by an Independent Redevelopment Consultant which demonstrates the
Agency’s continuing ability to pay debt service on the Bonds and any Parity Debt. In determining the amount
to be deposited in escrow with the Trustee, the Agency will not take into account any actual or projected
interest earnings on the amounts so deposited. The Agency agrees that the financial information provided to
the Trustee in any such adopted plan will be included in each annual report provided pursuant to the
Continuing Disclosure Certificate.
Notwithstanding the foregoing covenant, if the limitation on the amount of taxes which can be
allocated to the Agency pursuant to the Law and the Redevelopment Plan is invalidated (either by action of the
legislature of the State of California or pursuant to a court finding or determination), neither the deposit of
Pledged Tax Revenues attributable to the Project Area required by paragraph (i) nor the adoption of a plan as
contemplated by paragraph (ii) above for the purpose of paying debt service and deposits into the Reserve
Account for the Bonds and any Parity Debt, will be required.
There is a question on the applicability of tax increment limits as to time and amounts established
under redevelopment plans after the adoption of AB x1 26 and AB 1484. The matter remains subject to further
guidance from the DOF, legislation and interpretation by the courts. See “RISK FACTORS—State Budget
Issues” for a discussion of legislation proposed by the Governor that would clarify that former tax increment
caps and plan limits do not apply for the purposes of paying approved enforceable obligations. The Fiscal
Consultant has determined that the tax increment limits, if applicable to the Agency and the Project Area, will
not negatively impact Agency’s ability to make debt service payments on Bonds. See APPENDIX G—
“FISCAL CONSULTANT’S REPORT.”
48
Pass-Through Agreements
The Prior Agency entered into various Pass-Through Agreements whereby portions of the taxes which
would otherwise be allocated and paid to the Agency are paid to certain entities. Amounts paid under the PassThrough Agreements are not Pledged Tax Revenues, and therefore, are not pledged to secure the Loans.
Butte County: Pursuant to this Pass-Through Agreement, Butte County receives its proportionate
share of tax increment generated within the Project Area based on Butte County tax apportionment
calculations. The County receives 9.05% of the gross tax increment generated in each Fiscal Year but in no
event more than an amount equal to 9.05% of the tax increment for the Fiscal Year 2001-02. In addition, the
County receives 14.08% of the gross tax increment revenues that are in excess of the tax increment revenues
generated in Fiscal Year 2001-02.
Feather River Recreation and Parks District: Pursuant to the Redevelopment Plan, as amended by
Ordinance No. 1650 (the “Third Amendment”), the Feather River Recreation and Parks District receives its
proportionate share of tax increment generated within the Project Area based on Butte County tax
apportionment calculations. This District receives 4.3% of either the increment created from the lesser of the
actual annual increase in assessed value or the increment created from 7.5% annual increase in assessed value,
plus the accrued amount up to that year.
Thompson Flat Cemetery District: Pursuant to the Third Amendment, the Thompson Flat Cemetery
District receives its proportionate share of tax increment generated within the Project Area based on Butte
County tax apportionment calculations. This District receives 0.031% of the gross tax increment revenues
annually as of Fiscal Year 2014-15.
Oroville Cemetery District: Pursuant to the Third Amendment, the Oroville Cemetery District
receives its proportionate share of tax increment generated within the Project Area based on Butte County tax
apportionment calculations. This District receives 1.126% of the gross tax increment revenues annually as of
Fiscal Year 2014-15.
Butte County Mosquito Abatement District: Pursuant to the Third Amendment, the Butte County
Mosquito Abatement District receives its proportionate share of tax increment generated within the Project
Area based on Butte County tax apportionment calculations. This District receives 0.266% of the gross tax
increment revenues annually as of Fiscal Year 2014-15.
Oroville Mosquito Abatement District: Pursuant to the Third Amendment, the Oroville Mosquito
Abatement District receives its proportionate share of tax increment generated within the Project Area based
on Butte County tax apportionment calculations. This District receives 0.774% of the gross tax increment
revenues annually as of Fiscal Year 2014-15.
Under the Dissolution Act, the Agency is no longer responsible for the payment of pass-through
amounts under the Pass-Through Agreements. Instead, the Dissolution Act requires the County AuditorController to distribute from the Redevelopment Property Tax Trust Fund amounts required to be distributed
under the Pass-Through Agreements to the taxing entities for each six-month period before amounts are
distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the
Agency’s Redevelopment Obligation Retirement Fund each January 2 and June 1. If, however, (a) the Agency
determines and reports, no later than December 1 or May 1, as applicable (i.e., by May 1, 2015 with respect to
the Recognized Obligation Payment Schedule for July 1, 2015 through December 31, 2015), that the total
amount available to the Agency from the Redevelopment Property Tax Trust Fund allocation to the Agency’s
Redevelopment Obligation Retirement Fund, from other funds transferred from the Prior Agency, and from
funds that have or will become available through asset sales and all redevelopment operations, are insufficient
to fund the payment of pass-through obligations, for Agency enforceable obligations listed on the Recognized
Obligation Payment Schedule, and for the Agency’s administrative cost allowance, and (b) the State Controller
49
concurs that there are insufficient funds to pay required debt service, and (c) to the extent pass-through
obligations are expressly subordinate, the Dissolution Act provides for certain adjustments to be made to the
estimated distributions. The Pass-Through Agreements are not expressly subordinate to the Bonds; therefore,
under Section 34183(a) of the Dissolution Act, the County Auditor-Controller will make payments under the
Pass-Through Agreements prior to delivering RPTTF revenue to the Agency for payment of debt service on
the Bonds. The definition of “Pledged Tax Revenues” in the Indenture reflects the seniority of the PassThrough Agreements and payments under the Pass-Through Agreements are deducted from the projections of
Pledged Tax Revenues in this Official Statement. See “PLEDGED TAX REVENUES—Projected Taxable
Valuation and Pledged Tax Revenues” and APPENDIX G—“FISCAL CONSULTANT’S REPORT.”
Statutory Pass-Through Amounts
Assembly Bill No. 1290, enacted on October 8, 1993 as Chapter 942, Statutes of 1993, and effective
January 1, 1994, eliminated the statutory authority for negotiated pass-through agreements and provided a
formula, pursuant to Sections 33607.5 and 33607.7 of the Redevelopment Law, for mandatory tax sharing
applicable to projects adopted after January 1, 1994 or amended after that date to add territory or amend
specified time or financial limits on the Prior Agency’s obligation to pay such Statutory Pass-Through
Amounts was triggered by Ordinance No. 1650, which extended the time limit to incur debt and increased the
bonded debt limit and the cumulative tax increment limit. Payments of Statutory Pass-Through Amounts
began in Fiscal Year 2004-05. Statutory Pass-Through Amounts are only paid to the following taxing entities
that do not receive payments pursuant to a Pass-Through Agreement:








Oroville Elementary School District
Thermalito Elementary School District
Oroville Union High School District
Butte County Superintendent of Schools
Butte Community College District
City of Oroville
South Feather River Water and Power District
Lake Oroville Public Utility District
The formula for Statutory Pass-Through Amounts is described in Section 33607.5 of the
Redevelopment Law and is, generally, as follows:
1.
commencing in the first Fiscal Year after the limitation has been reached (or the amendment
has been adopted in the case of a post January 1, 1994 plan amendment adding territory to the redevelopment
plan), an amount equal to 25% of tax increment generated by the incremental increase of the current year
assessed valuation over the assessed valuation in the Fiscal Year that the limitation had been reached, after the
amount required to be deposited in the Low and Moderate Income Housing Fund has been deducted;
2.
in addition to amounts payable as described in (a) above, commencing in the 11th Fiscal Year
after the limitation has been reached (or the amendment has been adopted in the case of a post January 1, 1994
plan amendment adding territory to the redevelopment plan), an amount equal to 21% of tax increment
generated by the incremental increase of the current year assessed valuation over the assessed valuation in the
preceding 10th Fiscal Year that the limitation had been reached, after the amount required to be deposited in
the Low and Moderate Income Housing Fund has been deducted; and
3.
in addition to amounts payable, as described in (a) and (b) above, commencing in the 31st
Fiscal Year after the limitation has been reached (or the amendment has been adopted in the case of a post
January 1, 1994 plan amendment adding territory to the redevelopment plan), an amount equal to 14% of tax
increment generated by the incremental increase of the current year assessed valuation over the assessed
valuation in the preceding 30th Fiscal Year that the limitation had been reached, after the amount required to
be deposited in the Low and Moderate Income Housing Fund has been deducted.
50
In addition, under the Redevelopment Law, the Statutory Pass-Through Amounts were paid after
deducting the amount required to be deposited in the Low and Moderate-Income Housing Fund. The
Dissolution Act preserves this calculation method, stating that the amount of pass-through payments computed
for distribution by the County Auditor-Controller to the taxing entities, such as the Pass-Through Agreements
or the Statutory Pass-Through Amounts, will be computed as though the requirement to set aside funds for the
Low and Moderate Income Housing Fund were still in effect.
Under the Dissolution Act, the Agency is no longer responsible for the payment of Statutory PassThrough Amounts. Instead, the Dissolution Act requires the County Auditor-Controller to distribute from the
Redevelopment Property Tax Trust Fund amounts required to be distributed for Statutory Pass-Through
Amounts to the taxing entities for each six-month period before amounts are distributed by the County
Auditor-Controller from the Redevelopment Property Tax Trust Fund to the Agency’s Redevelopment
Obligation Retirement Fund each January 2 and June 1.
The Dissolution Act provides for a procedure by which the Agency may make Statutory Pass-Through
Amounts subordinate to the Bonds; however, the Agency has determined not to undertake such procedure, and
therefore, Statutory Pass-Through Amounts are senior to the Bonds. The definition of “Pledged Tax
Revenues” in the Indenture reflects the seniority of the Statutory Pass-Through Amounts and Statutory PassThrough Amounts are deducted from the projections of Pledged Tax Revenues in this Official Statement. See
“PLEDGED TAX REVENUES—Projected Taxable Valuation and Pledged Tax Revenues” and
APPENDIX G—“FISCAL CONSULTANT’S REPORT.”
Land Use
The following table describes the land uses in the Project Area, including acreage, number of parcels
and assessed values. Major land uses in the Project Area based on assessed value include residential (36.8%)
and commercial (33.2%).
2014-15 Assessed Value (Net of Exemptions)(1)
Land Use Category
Acres(2)
Parcels
Secured
Residential
Commercial
Miscellaneous
Industrial
Vacant Land
Agriculture
Natural Resource
Public & Institutional(3)
Utility Value
Total Project Area
921
630
13
307
1,281
6
1
2,161
5,320
3,132
615
7
60
879
4
1
107
4,805
$ 345,190,790
311,203,661
2,978,549
81,620,360
48,447,094
103,462
6,021
2,152,591
$ 791,702,528
Unsecured
Total
% of
Project Area
315,478
126,500,023
20,677,578
$ 147,493,079
$ 345,190,790
311,519,139
129,478,572
102,297,938
48,447,094
103,462
6,021
2,152,591
$ 939,195,607
36.8%
33.2
13.8
10.9
5.2
0.0
0.0
0.0
0.2
100.0%
$
Notes:
(1)
Total Project Area assessed values are net of all exemptions except for homeowner exemptions.
(2)
Total acreage of assessable parcels; excludes right of way.
(3)
Includes multiple land uses (airport, golf course, government, churches, non-profits, etc.) with an assessed value of $0.
Source: Butte County Assessment Roll for Fiscal Year 2014-15 and Rosenow Spevacek Group, Inc.
51
Largest Taxpayers
The following table sets forth the ten largest taxpayers in the Project Area based on the Fiscal Year
2014-15 secured and unsecured property tax roll.
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2014-15
Assessed
Valuation
Percent
of Total
Assessed
Value(2)
Percent of
Incremental
Assessed
Value(3)
30,289,316
19,699,098
18,833,237
11,245,653
10,881,832
10,560,000
10,516,340
10,282,400
9,732,170
9,503,070
$ 141,543,116
3.2%
2.1
2.0
1.2
1.2
1.1
1.1
1.1
1.0
1.0
15.1%
4.1%
2.7
2.6
1.5
1.5
1.4
1.4
1.4
1.3
1.3
19.3%
Primary Land Use
(1)
Pacific Coast Producers
Oroville Plaza Shopping Center, LLC
Graphic Packaging International, Inc.
Roplast Industries, Inc.
Oroville Medical Complex, LLC
Currier Square Shopping Center, LLC
Sierra Silica Resources
Comcast of Northern California, Inc.(1)
Farm Credit Leasing
Federal Cartridge Company
Total Top 10 Taxpayers:
Industrial
Commercial
Unsecured – Possessory Interest
Industrial
Commercial – Hospital
Industrial
Unsecured – Possessory Interest
Unsecured – Possessory Interest
Unsecured – Possessory Interest
Unsecured – Possessory Interest
$
(1)
Pending appeals on file. See “—Appeals” below.
The total Project Area assessed value for Fiscal Year 2014-15 is $939,195,607.
(3)
The incremental assessed value in the Project Area for Fiscal Year 2014-15 is $732,635,135.
Source: Butte County Auditor-Controller and Rosenow Spevacek Group, Inc.
(2)
Appeals
As previously discussed under “PROPERTY TAXATION IN CALIFORNIA—Appeals of Assessed
Values,” property owners may apply for a reduction of their property tax assessment by filing a written
application, in form prescribed by the State Board of Equalization, with the appropriate county board of
equalization or assessment appeals board.
The County Clerk of the Board maintains assessment appeals applications and manages the appeals
review and hearing process. According to the Clerk’s data, no base year appeals have been filed in the Project
Area over the past five years, and 315 decline-in-value appeals have been filed over this same period. The
number of appeals filed each year has dropped significantly from the highest levels in Fiscal Years 2010-11
and 2011-12 (94 and 99 appeals, respectively) to 16 appeals in the current year.
Of the 315 appeals, 198 have been granted reductions while 93 were withdrawn or denied. The
appeals granted reductions caused a 0.5 percent average annual reduction in assessed values over the past five
years, excluding the current year where the majority of the appeals are still pending appeal. Applicants have
seen less success in their appeals over time; while the average rate of reductions have been 12.6% of the
applicants’ requests, the last three years have been well below this rate, with only 4.6% of the applicants’
reduction request granted in Fiscal Year 2013-14.
The pending 24 appeals total an aggregate value of $68,824,386 of value that has been sought to be
removed from the roll by the respective applicants. Fifteen (15) of these 24 appeals pertain to the current year
and many of those are likely to be denied or withdrawn given past trends. Still, assuming the annual 12.6%
success rate for all 24 appeals, the Fiscal Consultant estimates that as much as $8,526,235 (1.077%) of the
Fiscal Year 2014-15 secured roll could be lost if these appeals are successful. See Figure 8 of the Fiscal
Consultant’s Report attached hereto as Appendix G for a summary of these appeals and the Fiscal Consultant’s
methodology for estimating potential impacts for pending appeals.
52
The Agency has no way of knowing the outcome of these appeals or their effect on the valuation in
the Project Area.
PLEDGED TAX REVENUES
Pledged Tax Revenues (as described in the section “SECURITY FOR THE BONDS” herein) are to be
deposited in the Redevelopment Obligation Retirement Fund, and thereafter transferred by the Agency to the
Debt Service Fund, administered by the Trustee and applied to the payment of the principal of and interest on
the Bonds.
Schedule of Historical RPTTF Revenues
From Fiscal Year 2009-10 through Fiscal Year 2014-15, actual tax increment and RPTTF revenues
have slightly exceeded 100 percent of estimated collections, based on a 1 percent levy on the incremental
assessed value. This does not factor in additional supplemental tax revenues collected.
The following table shows the actual amount of tax increment collected by the County AuditorController over the last 5 years (including supplemental tax revenues). It also shows the amount of RPTTF
actually available to fund Agency obligations after redevelopment dissolution was enacted on February 1,
2012, net of county administrative fees and pass-through payments, which are made directly by the AuditorController.
Because the Prior Agency was dissolved in the middle of Fiscal Year 2011-12, the net RPTTF
available to the Agency for that Fiscal Year only included tax revenues available for the second half of the
year, not the total amount of tax increment distributed to the Prior Agency and the Agency in Fiscal Year
2011-12. Additionally, the amount of RPTTF actually distributed to the Agency in Fiscal Year 2012-13 is
lower than other years because the City used cash balances to fund enforceable obligations from January 2012
through June 2013, as directed by DOF.
Fiscal
Year
Ended
2011
2012
2013
2014
2015
Taxable Value
Incremental
Value
Incremental
Revenue(1)
Actual
Collections(2)
Est. to
Actual
Net
RPTTF
Available
RPTTF
Distributed
to Agency
$951,241,498
933,970,007
921,657,406
919,760,979
939,195,607
$744,681,026
727,409,535
715,096,934
713,200,507
732,635,135
$7,446,810
7,274,095
7,150,969
7,132,005
7,326,351
$7,768,360
7,778,617
7,446,567
7,307,500
7,654,235
104.32%
106.94
104.13
102.46
104.48
n/a
$2,946,131
5,724,724
5,374,887
5,729,598
n/a
$2,565,836
125,000
2,296,502
1,902,163
(1)
Incremental Revenue is estimated at 1.0% of Incremental Value.
Actual collections provided by the County Auditor-Controller. May be higher or lower due to supplemental taxes and
delinquencies.
(3)
Net RPTTF available for ROPS obligations after county administrative fees and pass-through payments are made by the
County. Fiscal Year 2011-12 shows RPTTF distributed after the Prior Agency was dissolved on February 1, 2012, in the
middle of the Fiscal Year. This figure does not include tax increment distributed to the Prior Agency during the first half of
the Fiscal Year prior to dissolution.
(4)
Total RPTTF distributed to the Successor Agency for approved ROPS obligations. Oroville employed cash balances to pay
for ROPS obligations in-lieu of receiving RPTTF from January 2012 through June 2013 pursuant to the Dissolution Act.
Source: Butte County Auditor-Controller and Rosenow Spevacek Group, Inc.
(2)
Despite the recent decreases in assessed value, the Fiscal Consultant projects a 2.556% increase in
Project Area secured assessed values in Fiscal Year 2015-16, followed by a 2.000% increase in such values
annually thereafter. The basis for the Fiscal Consultant’s projections is described in APPENDIX G—
“FISCAL CONSULTANT’S REPORT” and includes an analysis of historical Proposition 13 inflationary
adjustments to secured assessed values, real property sales which occurred in Fiscal Year 2013-14, building
53
permits and anticipated new construction and reduced frequency of property reassessments based on a decline
in assessed value.
Projected Taxable Valuation and Pledged Tax Revenues
The Agency has retained Rosenow Spevacek Group, Inc., of Santa Ana, California to provide
projections of taxable valuation and Pledged Tax Revenues from developments in the Project Area. The
Agency believes the assumptions (set forth in the footnotes below and APPENDIX G—“FISCAL
CONSULTANT’S REPORT”) upon which the projections are based are reasonable; however, some
assumptions may not materialize and unanticipated events and circumstances may occur (see “RISK
FACTORS”). Therefore, the actual Pledged Tax Revenues received during the forecast period may vary from
the projections and the variations may be material.
The following table provides a summary of the projected taxable valuation and Pledged Tax
Revenues, assuming no value growth.
PROJECTION OF PLEDGED TAX REVENUES
(No Growth)
Fiscal Year
Ended
(June 30)
Assessed
Value
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
$ 939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
939,195,607
Incremental
Value(1)
$ 732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
732,635,135
Gross Tax
Increment(2)
County
Admin.
Fees(3)
Pass
Through
Payments(4)
$ 7,654,235
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
7,326,351
$(259,103)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
(248,004)
$(1,665,534)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1,710,906)
(1)
Pledged Tax
Revenues(5)
$5,729,598
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
Value over base year value of $206,560,472.
Fiscal Year 2014-15 values are based on actual collections, including supplemental tax revenues. Future year projections do
not include supplemental tax revenues. Commencing with Fiscal Year 2015-16, based on projected 0% annual assessed
valuation growth over Fiscal Year 2014-15 actual assessed valuation and projected 0% assessed valuation growth annually
thereafter.
(3)
County estimated administration charges based on 3.39% of gross tax increment.
(4)
Includes Pass Through Agreements and Statutory Pass Through Amounts. See “THE PROJECT AREA—Pass-Through
Agreements” and “—Statutory Pass-Through Amounts.”
(5)
Based on Gross Tax Increment, less Pass-Through Agreements, Statutory Pass Through Amounts, and County Admin. Fees.
Source: Butte County Auditor-Controller and Rosenow Spevacek Group, Inc.
(2)
54
The following table provides a summary of the projected taxable valuation and Pledged Tax
Revenues, assuming 2% value growth.
PROJECTION OF PLEDGED TAX REVENUES
(2% Growth)
Fiscal Year
Ended
(June 30)
Assessed
Value
Incremental
Value(1)
Gross Tax
Increment(2)
County
Admin.
Fees(3)
Pass
Through
Payments(4)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
$ 939,195,607
959,431,317
975,670,082
992,233,622
1,009,128,433
1,026,361,140
1,043,938,501
1,061,867,409
1,080,154,896
1,098,808,132
1,117,834,433
1,137,241,261
1,157,036,224
1,177,227,087
1,197,821,767
1,218,828,341
1,240,255,046
1,262,110,286
1,284,402,630
1,307,140,821
732,635,135
752,870,845
769,109,610
785,673,150
802,567,961
819,800,668
837,378,029
855,306,937
873,594,424
892,247,660
911,273,961
930,680,789
950,475,752
970,666,615
991,261,295
1,012,267,869
1,033,694,574
1,055,549,814
1,077,842,158
1,100,580,349
$ 7,654,235
7,427,530
7,609,902
7,773,914
7,941,206
8,111,843
8,285,893
8,463,425
8,644,507
8,829,210
9,017,608
9,209,774
9,405,783
9,605,712
9,809,640
10,017,646
10,229,812
10,446,222
10,666,960
10,892,113
$(259,103)
(251,429)
(257,603)
(263,155)
(268,818)
(274,594)
(280,486)
(286,495)
(292,625)
(298,877)
(305,255)
(311,760)
(318,395)
(325,163)
(332,066)
(339,107)
(346,289)
(353,615)
(361,087)
(368,709)
$(1,665,534)
(1,759,549)
(1,847,226)
(1,926,076)
(2,006,502)
(2,088,538)
(2,172,214)
(2,257,563)
(2,344,620)
(2,433,417)
(2,523,991)
(2,616,376)
(2,710,609)
(2,806,726)
(2,904,766)
(3,004,767)
(3,106,767)
(3,210,808)
(3,316,929)
(3,425,173)
(1)
Pledged Tax
Revenues(5)
$5,729,598
5,416,552
5,505,074
5,584,684
5,665,886
5,748,712
5,833,194
5,919,366
6,007,262
6,096,916
6,188,362
6,281,638
6,376,779
6,473,823
6,572,807
6,673,772
6,776,756
6,881,799
6,988,943
7,098,231
Value over base year value of $206,560,472.
Fiscal Year 2014-15 values are based on actual collections, including supplemental tax revenues. Future year projections do
not include supplemental tax revenues. Commencing with Fiscal Year 2015-16, based on projected 2% annual assessed
valuation growth over Fiscal Year 2014-15 actual assessed valuation and projected 2% assessed valuation growth annually
thereafter.
(3)
County estimated administration charges based on 3.39% of gross tax increment.
(4)
Includes Pass Through Agreements and Statutory Pass Through Amounts. See “THE PROJECT AREA—Pass-Through
Agreements” and “—Statutory Pass-Through Amounts.”
(5)
Based on Gross Tax Increment, less Pass-Through Agreements, Statutory Pass Through Amounts, and County Admin. Fees.
Source: Butte County Auditor-Controller and Rosenow Spevacek Group, Inc.
(2)
55
Projected Annual Debt Service
Set forth below is the annual debt service on the Bonds.
Oroville Redevelopment Project No. 1
Annual Debt Service
2015A Bonds
Principal
2015A Bonds
Interest
555,000.00
645,000.00
920,000.00
955,000.00
985,000.00
1,030,000.00
1,080,000.00
1,135,000.00
1,190,000.00
1,250,000.00
1,315,000.00
1,375,000.00
1,415,000.00
1,460,000.00
1,505,000.00
300,000.00
1,265,000.00
$ 18,380,000.00
$ 312,514.50
699,943.76
680,593.76
652,993.76
614,793.76
575,393.76
523,893.76
469,893.76
413,143.76
353,643.76
291,143.76
225,393.76
184,143.76
141,693.76
97,893.76
50,862.50
41,112.50
$ 6,329,052.14
Maturity Date
(September 15)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Total
$
Total 2015A
Bonds
Debt Service
$
867,514.50
1,344,943.76
1,600,593.76
1,607,993.76
1,599,793.76
1,605,393.76
1,603,893.76
1,604,893.76
1,603,143.76
1,603,643.76
1,606,143.76
1,600,393.76
1,599,143.76
1,601,693.76
1,602,893.76
350,862.50
1,306,112.50
$24,709,052.14
56
2015B Bonds
Principal
2015B Bonds
Principal
Total 2015B
Bonds
Debt Service
$ 295,000.00
230,000.00
$ 1,853.47
2,185.00
$
296,853.47
232,185.00
$ 525,000.00
$ 4,038.47
$
529,038.47
Total Bonds
Debt Service
$ 1,164,367.97
1,577,128.76
1,600,593.76
1,607,993.76
1,599,793.76
1,605,393.76
1,603,893.76
1,604,893.76
1,603,143.76
1,603,643.76
1,606,143.76
1,600,393.76
1,599,143.76
1,601,693.76
1,602,893.76
350,862.50
1,306,112.50
$ 25,238,090.61
Debt Service Coverage
Set forth below is the estimated debt service coverage of the Bonds using no growth Fiscal Year
2015-16 Pledged Tax Revenues through maturity.
ESTIMATED DEBT SERVICE COVERAGE
(No Growth)
Bond Year Ending
(September 15)
No Growth
Pledged Tax Revenues(2)
Combined Bonds
Debt Service
2015(1)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
$2,634,119
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
5,367,441
$1,164,368
1,577,129
1,600,594
1,607,994
1,599,794
1,605,394
1,603,894
1,604,894
1,603,144
1,603,644
1,606,144
1,600,394
1,599,144
1,601,694
1,602,894
350,863
1,306,113
(1)
Debt Service
Coverage(3)
2.26
3.40
3.35
3.34
3.36
3.34
3.35
3.34
3.35
3.35
3.34
3.35
3.36
3.35
3.35
15.30
4.11
The first principal and interest payment on the Bonds is due in September 2015. Pledged Tax Revenues for the Bond Year
ending September 15, 2015 are based on Pledged Tax Revenues distributed in June 2015, for expenditure during the January
to June 2015 ROPS period; subsequent years are based on Pledged Tax Revenues for the entire bond year, including the
Redevelopment Property Tax Trust Fund distributions on January 1 and June 1 of each year. Pledged Tax Revenues for
Bond Year ending September 15, 2015 reflect the deduction of a County Administrative Fee from the June 2015
Redevelopment Property Tax Trust Fund distribution, based on a 0% growth projection in Fiscal Year 2014-15 assessed
valuation and gross tax increment.
(2)
Adjusted to reflect Pledged Tax Revenues received each Bond year ending September 15. Based on projected 0% annual
assessed valuation growth.
(3)
Excess coverage amounts are not available to the Agency unless for approved administrative amounts or other approved
enforceable obligations. See “RISK FACTORS—Recognized Obligation Payment Schedule.”
Source: Rosenow Spevacek Group, Inc. and Southwest Securities, Inc.
57
Set forth below is the estimated debt service coverage of the Bonds using a 2% annual growth scenario
for Fiscal Year 2015-16 Pledged Tax Revenues through maturity.
ESTIMATED DEBT SERVICE COVERAGE
(2% Growth)
Bond Year Ending
(September 15)
Pledged
Tax Revenues(2)
Combined Bonds
Debt Service
2015(1)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
$2,631,722
5,464,767
5,543,347
5,623,722
5,705,705
5,789,327
5,874,622
5,961,623
6,050,364
6,140,879
6,233,205
6,327,377
6,423,433
6,521,410
6,621,347
6,723,282
6,827,256
$1,164,368
1,577,129
1,600,594
1,607,994
1,599,794
1,605,394
1,603,894
1,604,894
1,603,144
1,603,644
1,606,144
1,600,394
1,599,144
1,601,694
1,602,894
350,863
1,306,113
Debt Service
Coverage(3)
2.26
3.47
3.46
3.50
3.57
3.61
3.66
3.71
3.77
3.83
3.88
3.95
4.02
4.07
4.13
19.16
5.23
(1)
The first principal and interest payment on the Bonds is due in September 2015. Pledged Tax Revenues for the Bond Year
ending September 15, 2015 are based on Pledged Tax Revenues distributed in June 2015, for expenditure during the January
to June 2015 ROPS period; subsequent years are based on Pledged Tax Revenues for the entire bond year, including the
Redevelopment Property Tax Trust Fund distributions on January 1 and June 1 of each year. Pledged Tax Revenues for
Bond Year ending September 15, 2015 reflect the deduction of a County Administrative Fee from the June 2015
Redevelopment Property Tax Trust Fund distribution, based on a 2% growth projection in Fiscal Year 2014-15 assessed
valuation and gross tax increment.
(2)
Adjusted to reflect Pledged Tax Revenues received each Bond year ending September 15. Based on 2% projected annual
assessed valuation growth generating Pledged Tax Revenues distributed by bond year (January and June).
(3)
Excess coverage amounts are not available to the Agency unless for approved administrative amounts or other approved
enforceable obligations. See “RISK FACTORS—Recognized Obligation Payment Schedule.”
Source: Rosenow Spevacek Group, Inc. and Southwest Securities, Inc.
CONCLUDING INFORMATION
Underwriting
The 2015A Bonds have been sold at a net interest rate of 3.022%. The original purchase price
(including the net reoffering premium in the amount of $1,430,854.60 and less an underwriter’s discount of
$170,015.00) to be paid for the 2015A Bonds is $19,640,839.60. The 2015B Bonds have been sold at a net
interest rate of 1.938%. The original purchase price (less an underwriter’s discount of $4,856.25) to be paid
for the 2015B Bonds is $520,143.75. The Underwriter intends to offer the Bonds to the public initially at the
respective yields set forth on the inside cover page of this Official Statement, which yields may subsequently
change without any requirement of prior notice.
The Underwriter reserves the right to join with dealers and other underwriters in offering the Bonds to
the public. The Underwriter may offer and sell Bonds to certain dealers (including dealers depositing Bonds
into investment trusts) at prices lower than the public offering prices, and such dealers may reallow any such
discounts on sales to other dealers.
58
Financial Advisor
NHA Advisors LLC, San Rafael, California (the “Financial Advisor”) has assisted the Agency in
matters relating to the planning, structuring, and sale of the Bonds and the preparation of this Official
Statement, and has provided general financial advisory services to the Agency with respect to the sale of the
Bonds. The Financial Advisor provides financial advisory services only and does not engage in the
underwriting, marketing, or trading of municipal securities or other negotiable instruments. The payment of
fees of the Financial Advisor is contingent upon the closing of the Certificates transaction.
Legal Opinions
The opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach,
California, Bond Counsel (“Bond Counsel”), approving the validity of the Bonds and stating that interest on
the 2015A Bonds is excluded from gross income for federal income tax purposes and such interest is also
exempt from personal income taxes of the State of California under present State income tax laws, will be
furnished to the purchaser at the time of delivery of the 2015A Bonds at the expense of the Agency. The
opinion of Bond Counsel approving the validity of the 2015B Bonds and stating that interest on the 2015B
Bonds is exempt from personal income taxes of the State of California under present State income tax laws,
will be furnished to the purchaser at the time of delivery of the Bonds at the expense of the Agency.
Compensation for Bond Counsel’s services is entirely contingent upon the sale and delivery of the Bonds.
Copies of the proposed forms of Bond Counsel’s final approving opinions with respect to the Bonds
are attached hereto as Appendix C.
The legal opinions are only as to legality and is not intended to be nor is it to be interpreted or relied
upon as a disclosure document or an express or implied recommendation as to the investment quality of the
Bonds.
In addition, certain legal matters will be passed on for the Agency by Stradling Yocca Carlson &
Rauth, a Professional Corporation, Newport Beach, California, as Disclosure Counsel and for the Underwriter
by Jones Hall, A Professional Corporation, San Francisco, California.
Tax Exemption
In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach,
California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, interest on the
2015A Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax
preference for purposes of calculating the federal alternative minimum tax imposed on individuals and
corporations. In the further opinion of Bond Counsel, interest on the 2015A Bonds and the 2015B Bonds is
exempt from State of California personal income tax. Bond Counsel notes that, with respect to corporations,
interest on the 2015A Bonds may be included as an adjustment in the calculation of alternative minimum
taxable income which may affect the alternative minimum tax liability of such corporations.
Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of
interest on the 2015A Bonds is based upon certain representations of fact and certifications made by the City,
the Agency and others and is subject to the condition that the City and the Agency comply with all
requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied
subsequent to the delivery of the 2015A Bonds to assure that interest on the 2015A Bonds will not become
includable in gross income for federal income tax purposes. Failure to comply with such requirements might
cause interest on the 2015A Bonds to be included in gross income for federal income tax purposes retroactive
to the date of delivery of the 2015A Bonds. The Agency has covenanted to comply with all such requirements.
Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not
59
taken) or events occurring after the date of delivery of the 2015A Bonds may affect the tax status of the
interest on the 2015A Bonds.
Bond Counsel’s opinion may be affected by action taken (or not taken) or events occurring (or not
occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person,
whether any such actions taken or events are taken or do occur. Although Bond Counsel has rendered an
opinion that interest on the 2015A Bonds is excluded from gross income for income tax purposes provided that
the Agency continues to comply with certain requirements of the Code, the ownership of and the accrual or
receipt of interest with respect to the Bonds may otherwise affect the tax liability of the recipient. Bond
Counsel expresses no opinion regarding any such consequences. Accordingly, all potential purchasers should
consult their tax advisors before purchasing any of the Bonds.
No Litigation
There is no action, suit or proceeding known to the Agency to be pending and notice of which has
been served upon and received by the Agency, or threatened, restraining or enjoining the execution or delivery
of the Bonds or the Indenture or in any way contesting or affecting the validity of the foregoing or any
proceedings of the Agency taken with respect to any of the foregoing.
Legality for Investment in California
The Redevelopment Law provides that obligations authorized and issued under the Redevelopment
Law will be legal investments for all banks, trust companies and savings banks, insurance companies, and
various other financial institutions, as well as for trust funds. The Bonds are also authorized security for public
deposits under the Redevelopment Law.
The Superintendent of Banks of the State of California has previously ruled that obligations of a
redevelopment agency are eligible for savings bank investment in California.
Ratings
In connection with the issuance and delivery of the Insured Bonds, S&P is expected to assign its
municipal rating of “AA” to the Insured Bonds with the understanding that upon delivery of the Insured
Bonds, a policy insuring the payment when due of the principal of and interest on the Insured Bonds will be
issued by AGM. Standard & Poor’s has assigned their underlying and uninsured municipal rating of “A+” the
2015A Bonds and the 2015B Bonds.
These ratings reflect the view of Standard & Poor’s as to the credit quality of the Bonds. The ratings
reflect only the view of Standard & Poor’s, and explanation of the significance of the ratings may be obtained
from Standard & Poor’s Ratings Group, 55 Water Street, New York, New York 10041 (212) 512-3108. There
is no assurance that the ratings will continue for any given period of time or that they will not be revised
downward or withdrawn entirely by Standard & Poor’s, if in the judgment of Standard & Poor’s,
circumstances so warrant. Any such downward revision or withdrawal of the ratings may have an adverse
effect on the marketability or market price of the Bonds.
Continuing Disclosure
The Agency has covenanted in a Continuing Disclosure Certificate (the “Continuing Disclosure
Certificate”) for the benefit of the holders and Beneficial Owners of the Bonds to provide certain financial
information and operating data relating to the Agency by nine months following the end of the Agency’s Fiscal
Year (currently its Fiscal Year ends on June 30) (the “Annual Report”), commencing with the report for Fiscal
Year ending June 30, 2015, and to provide notices of the occurrence of certain enumerated events.
60
The Annual Report and the notices of enumerated events will be filed by the Agency with the
Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal
securities disclosures, maintained on the Internet at http://emma.msrb.org/. The specific nature of the
information to be contained in the Annual Report and the notices of enumerated events are set forth in
Appendix E. These covenants have been made in order to assist the Underwriter in complying with Rule 15c2
12(b)(5) promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”).
The City and its related governmental entities, specifically those entities (such as the Prior Agency
and the Agency) for whom City staff is responsible for undertaking compliance with continuing disclosure
undertaking, have previously entered into numerous disclosure undertakings under Rule 15c2-12 in connection
with the issuance of long-term obligations.
In the last five years, the Prior Agency, prior to its dissolution, and thereafter the Agency, did on
occasion fail to comply in certain material respects with their previous continuing disclosure undertakings
pursuant to Rule 15c2-12 promulgated under the Securities and Exchange Act of 1934, including, but not
limited to, the failure to file or to timely file complete annual reports and other financial information for some
of the Prior Agency’s outstanding debt obligations and the failure to file notices of certain enumerated events
including insurer ratings changes and changes to the underlying ratings for the Refunded Obligations.
However, the Agency has brought itself current with respect to its past filings and has posted the current
ratings on all its outstanding debt obligations. The Agency has also taken steps in order to ensure future timely
compliance with all of its outstanding continuing disclosure obligations. Pursuant to the Continuing
Disclosure Certificate, Rosenow Spevacek Group Inc. will act as Dissemination Agent and file the annual
reports and notices related to the Bonds with the MSRB through EMMA.
Miscellaneous
All of the preceding summaries of the Indenture, the Bond Law, the Dissolution Act, the
Redevelopment Law, other applicable legislation, the Redevelopment Plan for the Project Area, agreements
and other documents are made subject to the provisions of such documents respectively and do not purport to
be complete statements of any or all of such provisions. Reference is hereby made to such documents on file
with the Agency for further information in connection therewith.
This Official Statement does not constitute a contract with the purchasers of the Bonds. Any
statements made in this Official Statement involving matters of opinion or estimates, whether or not so
expressly stated, are set forth as such and not as representations of fact, and no representation is made that any
of the estimates will be realized.
61
The execution and delivery of this Official Statement by its Acting Executive Director has been duly
authorized by the Agency.
SUCCESSOR AGENCY TO THE OROVILLE
REDEVELOPMENT AGENCY
By:
62
/s/ Don Rust
Acting Executive Director
APPENDIX A
CITY OF OROVILLE GENERAL INFORMATION
General
The City of Oroville (the “City”) is located on California Highway 70, in the foothills of the Sierra
Nevada Mountains, 68 miles north of Sacramento and 155 miles northeast of San Francisco in Butte County
(the “County”). The City was incorporated as a city in 1906. The City operates as a charter city with a
council-administrator form of government. The City Council consists of six members elected at large for fouryear overlapping terms. The Mayor is elected at-large for a four-year term. The City Administrator is
appointed by the City Council.
CITY FINANCIAL DATA The Bonds are not a debt of the City. The following City financial data are included
only for the purpose of providing general information.
Assessed Valuations
The assessment and collection of taxes is the responsibility of Butte County. City taxes are collected
at the same time and on the same tax rolls as are County, school district and special district taxes. Assessed
valuations are the same for both City and County taxing purposes.
California law exempts $7,000 of the full cash value of an owner-occupied dwelling, but this
exemption does not result in any loss of revenue to local agencies since an amount equivalent to the taxes
which would have been payable on such exempt values is paid by the State.
The following table summarizes the taxable valuation of the City by tax roll for the last ten Fiscal
Years.
CITY OF OROVILLE
ASSESSED AND ESTIMATED ACTUAL VALUES OF TAXABLE PROPERTY(1)
(Amounts Expressed In Thousands)
Fiscal Year
Secured Roll
Unsecured Roll
2014-15
2013-14
2012-13
2011-12
2010-11
$914,062,374
902,047,042
896,944,962
909,112,674
939,316,971
$148,183,992
140,852,925
126,903,918
134,463,004
124,340,544
Utility
$2,179,033
1,200,189
1,200,189
1,200,189
1,200,189
(1)
Total
Percentage
Increase
(Decrease)
$1,064,425,399
1,044,100,156
1,025,049,069
1,044,775,867
1,064,857,704
1.9%
1.9
-1.9
-1.9
-
All valuations shown are “full cash value,” before deduction of State-reimbursed exemptions. Includes redevelopment
increment valuation.
Source: Rosenow Spevacek Group, Inc.
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GENERAL INFORMATION
Description
The City of Oroville is located on California Highway 70, in the foothills of the Sierra Nevada
mountains, 68 miles north of Sacramento. It is the major trade, recreational and commerce center for a large
portion of Butte County. Oroville was founded as a gold mining camp in the late 1840’s. The City was
incorporated in 1906. Agriculture and light industry have characterized the City throughout its history. The
City covers an area of approximately 13.1 square miles. There are approximately 15,980 inhabitants. The
climate is seasonal with an average minimum temperature of 45 degrees, an average maximum temperature of
80 degrees and an average rainfall of 27.34 inches.
Municipal Government
The City operates as a charter city with a council-administrator form of government. The City
Council consists of six members elected at large for four year overlapping terms. The Mayor is elected at large
for a four year term. The City Administrator is appointed by the Council and is responsible for
implementation of Council policies and for day-to-day operation of the City. Services provided by the City
include: police protection, fire protection, building code enforcement, public works, park maintenance,
planning and community development.
A full-time staff of 77 classified (authorized) and 14 exempt (authorized) employees carry out the
functions of municipal government. City employees are represented by 5 labor relations bargaining units.
Population
The population of the City grew from 13,631 in 2004 to 15,980 in 2014, according to figures of the
California State Department of Finance. This represents a 17.2% increase in population over the decade. Over
the same time period the population of Butte County increased by 5.2%, from 211,419 to 222,316. The
following table shows the population estimates in the City of Oroville, County of Butte and the state of
California for years 2004 through 2014.
POPULATION ESTIMATES
City of Oroville, County of Butte and State of California
2004-2014
Year(1)
City of Oroville
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
13,631
13,762
13,961
14,998
15,063
15,377
15,529
15,512
15,493
15,953
15,980
County of Butte
211,419
212,955
214,690
216,401
217,801
218,887
219,967
220,465
220,252
221,127
222,316
(1)
State of California
35,570,847
35,869,173
36,116,202
36,399,676
36,704,375
36,966,713
37,253,956
37,427,946
37,668,804
37,984,138
38,340,074
January 1 data.
Source: State of California, Department of Finance, E-4 Population Estimates for Cities, Counties and State, 2001-2010, with
2000 & 2010 Census Counts, Sacramento, California, November 2012 and E-4 Population Estimates for Cities,
Counties and State, 2011-2014, with 2010 Benchmark, Sacramento, California, May 2014.
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Construction
In addition to annual building permit valuations, the numbers of permits for new dwelling units issued
each year from 2009 through 2013 are shown in the following tables for the City.
BUILDING PERMIT VALUATIONS
City of Oroville
2011-2013
2011
Valuation ($000’s)
Residential
Non-Residential
Total
$8,034
5,512
$13,546
Units
Single Family
Multiple Family
Total
1
51
52
2012
2013
$ 775
8,812
$9,587
0
0
0
$7,526
7,817
$15,343
7
49
56
Note:
Totals may not add to sum because of rounding.
Source: Construction Industry Research Board.
Industry and Employment
Government, medical, retail and food processing are major sectors of employment in the City. The
following table sets forth the principal employers located in the City.
LARGEST EMPLOYERS
City of Oroville
2014
Employer
Number Employed
County of Butte
Oroville Medical Complex
Pacific Coast Producers
Wal Mart Stores, Inc,
Graphic Packaging International
Ammunition Accessories
Roplast Industries, Inc.
Home Depot USA
City of Oroville
Currier Square Spe LLC
Marshalls
2,395
1,292
1,181
297
246
163
135
120
100
98
40
Source: City of Oroville ‘Comprehensive Annual Financial Report’ for the year ending June 30, 2014.
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Percentage of Total
Employment
28.2%
15.2
19.9
3.5
2.9
1.9
1.6
1.4
1.2
1.2
0.5
The following table summarizes the labor force, employment and unemployment figures over the past
five years for the City, County and State.
CIVILIAN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT RATE
City of Oroville, County of Butte and the State of California
2009-2013(1)
Year and Area
Labor Force
Employment(2)
Unemployment(3)
Unemployment
Rate(4)
2009
City of Oroville
Butte County
State of California
5,500
103,900
18,220,100
4,600
90,800
16,155,000
1,000
13,000
2,065,100
17.5%
12.5
11.3
2010
City of Oroville
Butte County
State of California
5,600
104,600
18,336,300
4,500
90,100
16,068,400
1,100
14,400
2,267,900
19.1
13.8
12.4
2011
City of Oroville
Butte County
State of California
5,500
102,500
18,417,900
4,500
88,600
16,249,600
1,000
13,900
2,168,300
18.8
13.6
11.8
2012
City of Oroville
Butte County
State of California
5,500
102,900
18,519,000
4,600
90,600
16,589,700
900
12,300
1,929,300
16.8
12.0
10.4
2013
City of Oroville
Butte County
State of California
5,500
103,700
18,596,800
4,700
93,300
16,933,300
800
10,400
1,663,500
14.2
10.0
8.9
(1)
Data is based on annual averages, unless otherwise specified, and is not seasonally adjusted.
Includes persons involved in labor-management trade disputes.
(3)
Includes all persons without jobs who are actively seeking work.
(4)
The unemployment rate is computed from un-rounded data; therefore, it may differ from rates computed from rounded
figures in this table.
Source: U.S. Department of Labor – Bureau of Labor Statistics, California Employment Development Department. March 2013
Benchmark.
(2)
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The following table summarizes the average annual industry employment in the County from 2009
through 2013.
LABOR FORCE AND INDUSTRY EMPLOYMENT ANNUAL AVERAGES
Chico MSA
(Butte County)
2009-2013
Type of Employment
Total Farm
Mining, Logging and Construction
Manufacturing
Transportation, Warehousing & Utilities
Wholesale Trade
Retail Trade
Information
Financial Activities
Professional and Business Services
Education and Health Services
Leisure and Hospitality
Other Services
Government
Total
2009
2010
2011
2012
2013
2,700
2,600
3,600
1,800
1,800
9,300
1,100
3,100
4,800
15,000
7,300
3,500
17,300
73,700
2,800
2,400
3,700
1,600
1,700
9,400
1,000
3,100
4,900
15,100
7,100
3,600
16,900
73,300
2,700
2,300
3,700
48,500
1,800
9,200
1,100
3,000
5,100
14,800
7,200
3,700
15,700
71,800
2,800
2,400
3,900
53,000
1,800
9,500
1,100
2,800
5,700
15,200
7,400
3,700
15,200
73,600
2,900
2,800
4,000
54,600
1,700
9,700
1,000
2,800
6,200
16,800
7,800
3,700
15,500
77,000
Note:
Items may not add to total due to independent rounding.
Source: California Employment Development Department, Labor Market Information Division. March 2013 Benchmark.
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Commerce
The City serves as a major commercial and marketing center for a large portion of Butte County. A
summary of taxable sales within the City for years 2007 through 2013 are shown in the following tables.
CITY OF OROVILLE
TAXABLE TRANSACTIONS
(Taxable Transactions in Thousands of Dollars)
2007 – 2013(1)
Year
2007
2008
2009
2010
2011
2012
2013(1)
Number of Outlets
Taxable Transactions
695
702
646
649
665
682
693
322,945
318,492
279,280
288,191
314,221
321,069
251,595
(1)
Through third quarter.
Source: State Board of Equalization
Transportation
The City is located on California Highway 70, which intersects with U.S. Highway 99 five miles west
of the City. U.S. Highway 99 is a principal north-south transportation artery in northern California.
The City is served by Union Pacific for rail transportation and Greyhound for bus service. Seven
major truck companies serve the City with overnight deliveries to Sacramento, Reno, San Francisco and Los
Angeles.
Utilities
Electricity and natural gas is supplied by Pacific Gas and Electric Company. Sewer service is
provided by the Oroville Regional Sewer Commission and water is supplied by three service providers
depending upon the area of the City; California Water Service Company; South Feather Power & Water; and
Thermalito Irrigation District. Telephone service is provided by AT&T.
Community Services
The City is adjacent to the Lake Oroville State Recreation Area. Lake Oroville, with 15,000 surface
acres and 167 miles of shoreline, offers year-round trout and bass fishing, boating, water skiing and camping.
There are two colleges within 25 miles of the City. There is a 153 bed hospital located in the City.
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APPENDIX B
DEFINITIONS
The following are definitions of certain terms contained in the Indentures and used in this Official
Statement.
“Act” means Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of
the California Government Code.
“Annual Debt Service” means, for any Bond Year, the principal and interest payable on the Outstanding
Bonds in such Bond Year.
“Bond Counsel” means Stradling Yocca Carlson & Rauth, a Professional Corporation, an attorney or firm
of attorneys acceptable to the Successor Agency of nationally recognized standing in matters pertaining to the
federal tax exemption of interest on bonds issued by states and political subdivisions.
“Bond” or “Bonds” means the Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds,
Series 2015, authorized by and at any time Outstanding pursuant to the Indenture.
“Bond Year” means the twelve (12) month period commencing on September 16 of each year, provided
that the first Bond Year shall extend from the Delivery Date to September l5, 2015.
“Bondowner” or “Owner,” or any similar term, means any person who shall be the registered owner or his
duly authorized attorney, trustee or representative of any Outstanding Bond.
“Business Day” means any day other than (i) a Saturday or Sunday or legal holiday or a day on which
banking institutions in the city in which the corporate trust office of the Trustee is located are authorized to close, or
(ii) a day on which the New York Stock Exchange is closed.
“Certificate” or “Certificate of the Successor Agency” means a Written Certificate of the Successor
Agency.
“Chair” means the chair of the Successor Agency or other duly appointed officer of the Successor Agency
authorized by the Successor Agency by resolution or bylaw to perform the functions of the chair in the event of the
chair’s absence or disqualification.
“City” means the City of Oroville, State of California.
“Code” means the Internal Revenue Code of 1986, as amended, and any regulations, rulings, judicial
decisions, and notices, announcements, and other releases of the United States Treasury Department or Internal
Revenue Service interpreting and construing it.
“Computation Year” means, with respect to the Bonds, the period beginning on the Delivery Date and
ending on September 15, 2015, and each 12-month period ending on September 15 thereafter until there are no
longer any Bonds Outstanding.
“Continuing Disclosure Certificate” means that certain Continuing Disclosure Certificate executed and
delivered by the Successor Agency, dated the Delivery Date as originally executed and as it may be amended from
time to time in accordance with the terms thereof.
“Costs of Issuance” means the costs and expenses incurred in connection with the issuance and sale of the
Bonds including the initial fees and expenses of the Trustee, rating agency fees, legal fees and expenses, costs of
printing the Bonds and Official Statement, fees of financial consultants and other fees and expenses set forth in a
Written Certificate of the Successor Agency.
B-1
“Costs of Issuance Fund” means the trust fund established in the Indenture.
“County” means the County of Butte, California.
“Debt Service Fund” means that trust fund established in the Indenture.
“Defeasance Securities” means:
1.
Cash
2.
Obligations of, or obligations guaranteed as to principal and interest by, the U.S. or any agency or
instrumentality thereof, when such obligations are backed by the full faith and credit of the U.S. including:
•
U.S. treasury obligations
•
All direct or fully guaranteed obligations
•
Farmers Home Administration
•
General Services Administration
•
Guaranteed Title XI financing
•
Government National Mortgage Association (GNMA)
•
State and Local Government Series
Any security used for defeasance must provide for the timely payment of principal and interest and cannot
be callable or prepayable prior to maturity or earlier redemption of the rated debt (excluding securities that do not
have a fixed par value and/or whose terms do not promise a fixed dollar amount at maturity or call date).
“Delivery Date” means the date on which the Bonds are delivered to the initial purchaser thereof.
“Dissolution Act” means Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with Section
34170) of Division 24 of the Health and Safety Code of the State of California.
“DOF” means the California Department of Finance.
“DTC” means The Depository Trust Company, New York, New York, and its successors and assigns.
“Fiscal Year” means any twelve (12) month period beginning on July 1st and ending on the next following
June 30th.
“Fund or Account” means any of the funds or accounts referred to in the Indenture.
“Indenture” means the Indenture of Trust dated as of April 1, 2015, between the Successor Agency and
MUFG Union Bank, N.A., as trustee, approved by Resolution No. SA 14-09, adopted by the Successor Agency on
December 16, 2014, and Resolution No. 07-14, adopted by the Oversight Board on December 17, 2014, authorizing
the issuance of the Bonds.
“Independent Financial Consultant” “Independent Engineer” “Independent Certified Public Accountant” or
“Independent Redevelopment Consultant” means any individual or firm engaged in the profession involved,
appointed by the Successor Agency, and who, or each of whom, has a favorable reputation in the field in which
his/her opinion or certificate will be given, and:
B-2
(1)
is in fact independent and not under domination of the Successor Agency;
(2)
does not have any substantial interest, direct or indirect, with the Successor Agency, other than as
original purchaser of the Bonds; and
(3)
is not connected with the Successor Agency as an officer or employee of the Successor Agency,
but who may be regularly retained to make reports to the Successor Agency.
“Insurance Policy” or “Policy” the insurance policy issued by the Insurer guaranteeing the scheduled
payment of principal of and interest on the Bonds when due.
“Insured Bonds” means the 2015A Bonds maturing on September 15 in the years 2018 through 2031,
inclusive, and all of the 2015B Bonds.
“Insurer” means Assured Guaranty Municipal Corp., a New York stock insurance company, or any
successor thereto or assignee thereof.
“Interest Account” means the account by that name referenced in the Indenture.
“Interest Payment Date” means March 15 and September 15, commencing September 15, 2015 so long as
any of the Bonds remain Outstanding under the Indenture.
“Law” means the Community Redevelopment Law of the State of California as cited in the recitals in the
Indenture.
“Maximum Annual Debt Service” means the largest of the sums obtained for any Bond Year after the
computation is made, by totaling the following for each such Bond Year:
(1)
The principal amount of all Bonds and Parity Bonds, if any, and the amount of any sinking
account payments payable in such Bond Year; and
(2)
The interest which would be due during such Bond Year on the aggregate principal amount of
Bonds and Parity Bonds which would be outstanding in such Bond Year if the Bonds and Parity Bonds outstanding
on the date of such computation were to mature or be redeemed in accordance with the maturity schedules for the
Bonds and Parity Bonds. At the time and for the purpose of making such computation, the amount of term Bonds
and term Parity Bonds already retired in advance of the above-mentioned schedules shall be deducted pro rata from
the remaining amounts thereon.
“Opinion of Counsel” means a written opinion of an attorney or firm of attorneys of favorable reputation in
the field of municipal bond law. Any opinion of such counsel may be based upon, insofar as it is related to factual
matters, information which is in the possession of the Successor Agency as shown by a certificate or opinion of, or
representation by, an officer or officers of the Successor Agency, unless such counsel knows, or in the exercise of
reasonable care should have known, that the certificate, opinion or representation with respect to the matters upon
which his or her opinion may be based, as aforesaid, is erroneous.
“Outstanding” means, when used as of any particular time with reference to Bonds, subject to the
provisions of the Indenture, all Bonds theretofore issued and authenticated under the Indenture except:
(a)
Bonds theretofore canceled by the Trustee or surrendered to the Trustee for cancellation;
(b)
Bonds paid or deemed to have been paid; and
(c)
Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed,
issued and authenticated pursuant to the Indenture.
B-3
“Oversight Board” means the oversight board duly constituted from time to time pursuant to Section 34179
of the Dissolution Act.
“Parity Bonds” means any additional tax allocation bonds (including, without limitation, bonds, notes,
interim certificates, debentures or other obligations) issued by the Successor Agency as permitted by the Indenture.
“Pass-Through Agreements” means the agreements entered into prior to the date of the Indenture pursuant
to Section 33401 of the Health and Safety Code with the County of Butte, Oroville Cemetery District, Thompson
Flat Cemetery District, Butte Mosquito Abatement District, Oroville Mosquito Abatement District and Feather River
Recreation and Park District.
“Permitted Investments” means:
(a)
For all purposes, including defeasance investments in refunding escrow accounts.
(1)
(b)
Defeasance Securities
For all purposes other than defeasance investments in refunding escrow accounts.
(1)
Obligations of any of the following federal agencies which obligations represent the full
faith and credit of the United States of America, including:
•
Export-Import Bank
•
Rural Economic Community Development Administration
•
U.S. Maritime Administration
•
Small Business Administration
•
U.S. Department of Housing & Urban Development (PHAs)
•
Federal Housing Administration -Federal Financing Bank
(2)
Direct obligations of any of the following federal agencies which obligations are not fully
guaranteed by the full faith and credit of the United States of America:
•
Senior debt obligations issued by the Federal National Mortgage Association
(FNMA) or Federal Home Loan Mortgage Corporation (FHLMC).
•
Obligations of the Resolution Funding Corporation (REFCORP)
•
Senior debt obligations of the Federal Home Loan Bank System
•
Senior debt obligations of other Government Sponsored Agencies
(3)
U.S. dollar denominated deposit accounts, federal funds and bankers’ acceptances with domestic
commercial banks, which may include the Trustee, its parent holding company, if any, and their affiliates, which
have a rating on their short term certificates of deposit on the date of purchase of “P-1” by Moody’s and “A-1” or
“A-1+” by S&P and maturing not more than 360 calendar days after the date of purchase. (Ratings on holding
companies are not considered as the rating of the bank);
(4)
Commercial paper which is rated at the time of purchase in the single highest classification, “P-1”
by Moody’s and “A-1+” by S&P and which matures not more than 270 calendar days after the date of purchase;
B-4
(5)
Investments in a money market fund, including those of an affiliate of the Trustee rated “AAAm”
or “AAAm-G” or better by S&P;
(6)
Pre-refunded Municipal Obligations defined as follows: any bonds or other obligations of any
state of the United States of America or of any agency, instrumentality or local governmental unit of any such state
which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been
given by the obligor to call on the date specified in the notice; and
(A)
which are rated, based on an irrevocable escrow account or fund (the “escrow”), in the highest
rating category of Moody’s or S&P or any successors thereto; or
(B)
(i) which are fully secured as to principal and interest and redemption premium, if any, by an
escrow consisting only of cash or obligations described in paragraph (2) of the definition of Defeasance Securities,
which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any,
on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates
pursuant to such irrevocable instructions, as appropriate, and (ii) which escrow is sufficient, as verified by a
nationally recognized independent certified public accountant, to pay principal of and interest and redemption
premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates specified
in the irrevocable instructions referred to above, as appropriate.
(7)
Municipal Obligations rated “Aaa/AAA” or general obligations of States with a rating of “A2/A”
or higher by both Moody’s and S&P.
(8)
Investment Agreements with an entity rated “A“ or higher by S&P; and;
(9)
The Local Agency Investment Fund of the State or any state administered pooled investment fund
in which the Successor Agency is statutorily permitted or required to invest will be deemed a permitted investment.
(c)
The value of the above investments shall be determined as follows:
(1)
For the purpose of determining the amount in any fund, all Permitted Investments credited to such
fund shall be valued at fair market value. The Trustee shall determine the fair market value based on accepted
industry standards and from accepted industry providers. Accepted industry providers shall include but are not
limited to pricing services provided by Financial Times Interactive Data Corporation, and Bank of America Merrill
Lynch.
(2)
As to certificates of deposit and bankers’ acceptances: the face amount thereof, plus accrued
interest thereon; and
(3)
As to any investment not specified above: the value thereof established by prior agreement among
the Successor Agency and the Trustee.
“Pledged Tax Revenues” means the monies deposited from time to time in the Redevelopment Property
Tax Trust Fund established pursuant to subdivision (c) of Section 34172 of the Dissolution Act, as provided in
paragraph (2) of subdivision (a) of Section 34183 of the Dissolution Act, excluding amounts payable under PassThrough Agreements and Statutory Pass-Through Amounts. If, and to the extent, that the provisions of Section
34172 or paragraph (2) of subdivision (a) of Section 34183 are invalidated by a final judicial decision, then Pledged
Tax Revenues shall include all tax revenues allocated to the payment of indebtedness pursuant to Health & Safety
Code Section 33670 or such other section as may be in effect at the time providing for the allocation of tax
increment revenues in accordance with Article XVI, Section 16 of the California Constitution.
“Policy Costs” has the meaning set forth in the Indenture.
“Prior Agency” means the Oroville Redevelopment Agency.
B-5
“Principal Account” means the account by that name referenced in the Indenture.
“Principal Payment Date” means September 15, commencing September 15, 2015, so long as any of the
Bonds remain Outstanding under the Indenture.
“Rebate Fund” means the fund by that name referenced in the Indenture.
“Rebate Regulations” means the final Treasury Regulations issued under Section 148(f) of the Code.
“Recognized Obligation Payment Schedule” means a Recognized Obligation Payment Schedule, each
prepared and approved from time to time pursuant to subdivision (l) of Section 34177 of the Dissolution Act.
“Record Date” means the first day of the month in which any Interest Payment Date occurs, whether or not
such day is a Business Day.
“Redemption Account” means the account by that name referenced in the Indenture.
“Redevelopment Plan” means the Redevelopment Plan for a redevelopment project known and designated
as the “Oroville Redevelopment Project No. 1” that was adopted and approved by Ordinance No. 1353 of the City of
Oroville on July 6, 1981, as amended to date.
“Redevelopment Project Area,” “Redevelopment Project” or “Project Area” means the Project Area
described in the Redevelopment Plan.
“Refunded Obligations” means the 2002 Loan Obligation, the 2004A Loan Obligation and the 2004B Loan
Obligation.
“Registration Books” means the books kept by the Trustee containing the registration and transfer
information for the Bonds.
“Report” means a document in writing signed by an Independent Financial Consultant and including:
(a)
A statement that the person or firm making or giving such Report has read the pertinent provisions
of the Indenture to which such Report relates;
(b)
A brief statement as to the nature and scope of the examination or investigation upon which the
Report is based; and
(c)
A statement that, in the opinion of such person or firm, sufficient examination or investigation was
made as is necessary to enable said consultant to express an informed opinion with respect to the subject matter
referred to in the Report.
“Reserve Account” means the account by that name referenced in the Indenture.
“Reserve Policy” means the reserve surety issued by the Insurer on the date of the issuance of the Bonds in
an amount equal to the Reserve Requirement.
“Reserve Requirement” means, as of the date of computation, an amount equal to the combined lesser of (i)
Maximum Annual Debt Service on the Bonds and any Parity Bonds, (ii) 10% of the net proceeds of the Bonds and
any Parity Bonds, or (iii) 125% of the Annual Debt Service on all Bonds and Parity Bonds Outstanding.
“Redevelopment Obligation Retirement Fund” means the fund by that name referenced in the Indenture.
“State” means the State of California, United States of America.
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“Statutory Pass-Through Amounts” means amounts paid to affected taxing agencies, if any, pursuant to
Sections 33607.5 and/or 33607.7 of the Law and Section 34183 of the Dissolution Act.
“Supplemental Indenture” means any indenture then in full force and effect which has been duly adopted
by the Successor Agency under the Dissolution Act, or any act supplementary thereto or amendatory thereof, at a
meeting of the Successor Agency duly convened and held, of which a quorum was present and acted thereon,
amendatory of or supplemental to the Indenture or any indebtedness entered into in connection with the issuance of
Parity Bonds; but only if and to the extent that such Supplemental Indenture is specifically authorized under the
Indenture.
“Tax Certificate” means that certain Tax Certificate executed by the Successor Agency with respect to the
Bonds.
“Trust Office” means the principal corporate trust office of the Trustee in San Francisco, California, or
such other office as the Trustee may from time to time designate in writing to the Agency and the Owners except
that with respect to presentation of Bonds for payment or for registration of transfer and exchange such term shall
mean the office or agency of the Trustee at which, at any particular time, its corporate trust agency business shall be
conducted.
“Trustee” means MUFG Union Bank, N.A., its successors and assigns, and any other corporation or
association which may at any time be substituted in its place, as provided in the Indenture.
“2002 Authority Bonds” means the Oroville Public Financing Authority, 2002 Tax Allocation Revenue
Bonds (Oroville Redevelopment Project No. 1), issued pursuant to the 2002 Bonds Indenture for the purpose of
making a loan to the Prior Agency as provided in the 2002 Loan Agreement.
“2002 Bonds Indenture” means the Indenture of Trust dated as of October 1, 2002 by and between the Prior
Agency and MUFG Union Bank, N.A., pursuant to which the 2002 Authority Bonds were issued.
“2002 Escrow Agreement” means the 2002 Escrow Agreement dated as of April 1, 2015, by and between
the Agency and the 2002 Escrow Bank.
“2002 Escrow Bank” means Union Bank of California, N.A., its successors and assigns, and any other
corporation or association which may at any time be substituted in its place, as provided in the Indenture.
“2002 Loan” means the loan provided by the Oroville Public Financing Authority to the Prior Agency
pursuant to the 2002 Loan Agreement.
“2002 Loan Agreement” means the Loan Agreement entered into by the Prior Agency with the Oroville
Public Financing Authority dated as of October 31, 2002.
“2002 Loan Obligation” means the Prior Agency’s loan obligation under the 2002 Loan Agreement.
“2004A Authority Bonds” means the Oroville Public Financing Authority, 2004 Tax Allocation Revenue
Bonds, Series A (Oroville Redevelopment Project No. 1), issued pursuant to the 2004A Bonds Indenture for the
purpose of making a loan to the Prior Agency as provided in the 2004A Loan Agreement.
“2004A Bonds Indenture” means the Indenture of Trust dated as of July 1, 2004 by and between the Prior
Agency and Union Bank of California, N.A., pursuant to which the 2004A Authority Bonds were issued.
“2004A Escrow Agreement” means the 2004A Escrow Agreement dated as of April 1, 2015, by and
between the Agency and the 2004A Escrow Bank.
“2004A Escrow Bank” means MUFG Union Bank, N.A., its successors and assigns, and any other
corporation or association which may at any time be substituted in its place, as provided in the Indenture.
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“2004A Loan” means the loan provided by the Oroville Public Financing Authority to the Prior Agency
pursuant to the 2004A Loan Agreement.
“2004A Loan Agreement” means the Loan Agreement entered into by the Prior Agency with the Oroville
Public Financing Authority dated as of August 5, 2004.
“2004A Loan Obligation” means the Prior Agency’s loan obligation under the 2004A Loan Agreement.
“2004B Authority Bonds” means the Oroville Public Financing Authority, 2004 Tax Allocation Revenue
Bonds, Series B (Oroville Redevelopment Project No. 1), issued pursuant to the 2004B Bonds Indenture for the
purpose of making a loan to the Prior Agency as provided in the 2004B Loan Agreement.
“2004B Bonds Indenture” means the Indenture of Trust dated as of July 1, 2004 by and between the Prior
Agency and Union Bank of California, N.A., pursuant to which the 2004B Authority Bonds were issued.
“2004B Escrow Agreement” means the 2004B Escrow Agreement dated as of April 1, 2015, by and
between the Agency and the 2004B Escrow Bank.
“2004B Escrow Bank” means MUFG Union Bank, N.A., its successors and assigns, and any other
corporation or association which may at any time be substituted in its place, as provided in the is Indenture.
“2004B Loan” means the loan provided by the Oroville Public Financing Authority to the Prior Agency
pursuant to the 2004B Loan Agreement.
“2004B Loan Agreement” means the Loan Agreement entered into by the Prior Agency with the Oroville
Public Financing Authority dated as of August 5, 2004.
“2004B Loan Obligation” means the Prior Agency’s loan obligation under the 2004B Loan Agreement.
“2015A Bonds” means the $18,380,000 aggregate initial principal amount Oroville Redevelopment
Agency, Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2015A.
“2015B Bonds” means the $525,000 aggregate initial principal amount Oroville Redevelopment Agency,
Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2015B (Taxable).
“Written Request of the Successor Agency” or “Written Certificate of the Successor Agency” means a
request or certificate, in writing signed by the Executive Director, Secretary or Finance Officer of the Successor
Agency or by any other officer of the Successor Agency duly authorized by the Successor Agency for that purpose.
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APPENDIX C
FORM OF BOND COUNSEL OPINIONS
Upon issuance of the Bonds, Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel,
proposes to render its final approving opinions in substantially the following form:
[2015A BONDS]
__________, 2015
Successor Agency to the Oroville Redevelopment Agency
Oroville, California
Re:
$18,380,000 Successor Agency to the Oroville Redevelopment Agency, Oroville Redevelopment
Project No. 1, Tax Allocation Refunding Bonds, Series 2015A
Honorable Members of the Successor Agency:
We have examined certified copies of proceedings of the Successor Agency to the Oroville Redevelopment
Agency (the “Successor Agency”), the Oversight Board to the Successor Agency (the “Oversight Board”), the
Department of Finance of the State of California (“DOF”) and other information and documents submitted to us
relative to the issuance and sale by the Successor Agency of its Successor Agency to the Oroville Redevelopment
Agency, Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2015A in the aggregate
principal amount of $18,380,000 (the “2015A Bonds”) and such other information and documents as we consider
necessary to render this opinion. In rendering this opinion, we also have relied upon certain representations of fact
and certifications made by the Successor Agency, the Trustee, the Underwriter of the 2015A Bonds and others. We
have not undertaken to verify through independent investigation the accuracy of the representations and
certifications relied upon by us.
The 2015A Bonds have been issued pursuant to the Constitution and laws of the State of California (the
“State”), including Article 11 of Chapter 3 (commencing with Section 53580) of Part 1 of Division 2 of Title 5 of
the California Government Code (the “Bond Law”), the provisions of Health & Safety Code Section 34177.5, a
resolution of the Successor Agency adopted on December 16, 2014 (the “Successor Agency Resolution”) and a
resolution of the Oversight Board adopted on December 17, 2014 (the “Oversight Board Resolution”), which action
was approved by the DOF on February 12, 2015, and in accordance with the terms and conditions of an Indenture of
Trust, dated as of April 1, 2015 (the “Indenture”), by and between the Successor Agency and MUFG Union Bank,
N.A. (the “Trustee”). All terms not defined herein have the meanings ascribed to those terms in the Indenture.
The 2015A Bonds are dated as of their date of delivery, and mature on the dates and bear interest at the
rates per annum set forth in the Indenture. The 2015A Bonds are registered Bonds in the form set forth in the
Indenture, redeemable in the amounts, at the times and in the manner provided for in the Indenture.
Based upon our examination of all of the foregoing, and in reliance thereon, and on all matters of fact as we
deem relevant under the circumstances, and upon consideration of applicable laws, we are of the opinion that:
1.
The 2015A Bonds have been duly and validly authorized by the Successor Agency and are legal,
valid and binding special obligations of the Successor Agency, secured on a parity with the Successor Agency’s
Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2015B (Taxable), being issued
concurrently herewith, solely from Pledged Tax Revenues (as defined in the Indenture) and other sources as and to
the extent provided for in the Indenture. The 2015A Bonds are enforceable in accordance with their terms and the
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terms of the Indenture, except to the extent that enforceability may be limited by moratorium, bankruptcy,
reorganization, fraudulent conveyance or transfer, insolvency or other similar laws affecting creditors’ rights to the
application of equitable principles if equitable remedies are sought, to the exercise of judicial discretion in
appropriate cases and to the limitations on legal remedies against public agencies in the State of California. The
2015A Bonds are special obligations of the Successor Agency but are not a debt of the City of Oroville, the State of
California or any other political subdivisions thereof within the meaning of any constitutional or statutory limitation,
and neither the City of Oroville, the State of California, nor any other of its political subdivisions, except the
Successor Agency, is liable for the payment thereof.
2.
The Indenture has been duly authorized by the Successor Agency, is valid and binding upon the
Successor Agency and is enforceable in accordance with its terms, except to the extent that enforceability may be
limited by moratorium, bankruptcy, reorganization, fraudulent conveyance or transfer, insolvency or other similar
laws affecting creditors’ rights to the application of equitable principles if equitable remedies are sought, to the
exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against public agencies in
the State of California.
3.
The Indenture creates a valid pledge of that which the Indenture purports to pledge, including,
without limitation, the Pledged Tax Revenues and subject to the provisions of the Indenture, except to the extent that
such pledge may be limited by moratorium, bankruptcy, reorganization, fraudulent conveyance or transfer,
insolvency or other similar laws affecting creditors’ rights to the application of equitable principles if equitable
remedies are sought, to the exercise of judicial discretion in appropriate cases and to the limitations on legal
remedies against public agencies in the State of California.
4.
Under existing statutes, regulations, rulings and judicial decisions, interest on the 2015A Bonds is
excluded from gross income for federal income tax purposes, and such interest is not an item of tax preference for
purposes of calculating the federal alternative minimum tax imposed on individuals and corporations; however, we
note that, with respect to corporations, such interest on the 2015A Bonds will be included as an adjustment in the
calculation of alternative minimum taxable income which may affect such corporation's alternative minimum tax
liability.
5.
Interest on the 2015A Bonds is exempt from State of California personal income tax.
6.
The amount by which a 2015A Bond owner’s original basis for determining loss on sale or
exchange in the applicable 2015A Bond (generally, the purchase price) exceeds the amount payable on maturity (or
on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the
Internal Revenue Code of 1986, as amended; such amortizable bond premium reduces the 2015A Bond owner’s
basis in the applicable 2015A Bond (and the amount of tax-exempt interest received) and is not deductible for
federal income tax purposes. The basis reduction as a result of the amortization of bond premium may result in a
Bond owner realizing a taxable gain when a 2015A Bond is sold by the owner for an amount equal to or less (under
certain circumstances) than the original cost of the 2015A Bond to the owner. Purchasers of the 2015A Bonds
should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable
bond premium.
The opinion set forth in paragraph 4 above is subject to the condition that the Successor Agency comply
with certain covenants and the applicable requirements of the Code that must be satisfied subsequent to the issuance
of the 2015A Bonds to assure that interest on the 2015A Bonds will remain excludable from gross income for
federal income tax purposes. Failure to comply with such covenants and requirements may cause interest on the
2015A Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of
the 2015A Bonds. The Successor Agency has covenanted to comply with all such requirements. We express no
opinion regarding other tax consequences with respect to the 2015A Bonds.
Certain requirements and procedures contained or referred to in the Indenture, the Bond Purchase Contract
dated March 17, 2015, between the Successor Agency and Southwest Securities, Inc., and the Tax Certificate may
be changed, and certain actions may be taken, under the circumstances and subject to the terms and conditions set
forth in such documents, upon the advice or with the approving opinion of counsel nationally recognized in the area
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of tax-exempt obligations. We express no opinion as to the effect on the exclusion of interest on the 2015A Bonds
from gross income for federal income tax purposes upon the advice or approval of counsel other than Stradling
Yocca Carlson & Rauth, a Professional Corporation.
The opinions expressed herein are based on an analysis of existing statutes, regulations, rulings and judicial
decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by
actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to
determine, or to inform any person, whether any such actions or events are taken or do occur. Such actions or
events may adversely affect the value or tax treatment of the 2015A Bonds and we express no opinion with respect
thereto.
We call attention to the fact that the rights and obligations under the Indenture and the 2015A Bonds are
subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws
affecting creditors’ rights, to the application of equitable principles if equitable remedies are sought, to the exercise
of judicial discretion in appropriate cases and to limitations on legal remedies against public agencies in the State of
California.
Our opinion is limited to matters governed by the laws of the State of California and federal law. We
assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.
The opinions expressed herein are based upon our analysis and interpretation of existing laws, regulations,
rulings and judicial decisions and cover certain matters not directly addressed by such authorities.
We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement
relating to the 2015A Bonds or other offering material relating to the 2015A Bonds and purchasers of the 2015A
Bonds should not assume that we have reviewed the Official Statement on their behalf.
Respectfully submitted,
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[2015B BONDS]
__________, 2015
Successor Agency to the Oroville Redevelopment Agency
Oroville, California
Re:
$525,000 Successor Agency to the Oroville Redevelopment Agency, Oroville Redevelopment
Project No. 1, Tax Allocation Refunding Bonds, Series 2015B (Taxable)
Honorable Members of the Successor Agency:
We have examined certified copies of proceedings of the Successor Agency to the Oroville Redevelopment
Agency (the “Successor Agency”), the Oversight Board to the Successor Agency (the “Oversight Board”), the
Department of Finance of the State of California (“DOF”) and other information and documents submitted to us
relative to the issuance and sale by the Successor Agency of its Successor Agency to the Oroville Redevelopment
Agency, Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2015B (Taxable) in the
aggregate principal amount of $525,000 (the “2015B Bonds”) and such other information and documents as we
consider necessary to render this opinion. In rendering this opinion, we also have relied upon certain representations
of fact and certifications made by the Successor Agency, the Trustee, the Underwriter of the 2015B Bonds and
others. We have not undertaken to verify through independent investigation the accuracy of the representations and
certifications relied upon by us.
The 2015B Bonds have been issued pursuant to the Constitution and laws of the State of California (the
“State”), including Article 11 of Chapter 3 (commencing with Section 53580) of Part 1 of Division 2 of Title 5 of
the California Government Code (the “Bond Law”), the provisions of Health & Safety Code Section 34177.5, a
resolution of the Successor Agency adopted on December 16, 2014 (the “Successor Agency Resolution”) and a
resolution of the Oversight Board adopted on December 17, 2014 (the “Oversight Board Resolution”), which action
was approved by the DOF on February 12, 2015, and in accordance with the terms and conditions of an Indenture of
Trust, dated as of April 1, 2015 (the “Indenture”), by and between the Successor Agency and MUFG Union Bank,
N.A. (the “Trustee”). All terms not defined herein have the meanings ascribed to those terms in the Indenture.
The 2015B Bonds are dated as of their date of delivery, and mature on the dates and bear interest at the
rates per annum set forth in the Indenture. The 2015B Bonds are registered Bonds in the form set forth in the
Indenture, redeemable in the amounts, at the times and in the manner provided for in the Indenture.
Based upon our examination of all of the foregoing, and in reliance thereon, and on all matters of fact as we
deem relevant under the circumstances, and upon consideration of applicable laws, we are of the opinion that:
1.
The 2015B Bonds have been duly and validly authorized by the Successor Agency and are legal,
valid and binding special obligations of the Successor Agency, secured on a parity with the Successor Agency’s
Oroville Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2015A, being issued concurrently
herewith, solely from Pledged Tax Revenues (as defined in the Indenture) and other sources as and to the extent
provided for in the Indenture. The 2015B Bonds are enforceable in accordance with their terms and the terms of the
Indenture, except to the extent that enforceability may be limited by moratorium, bankruptcy, reorganization,
fraudulent conveyance or transfer, insolvency or other similar laws affecting creditors’ rights to the application of
equitable principles if equitable remedies are sought, to the exercise of judicial discretion in appropriate cases and to
the limitations on legal remedies against public agencies in the State of California. The 2015B Bonds are special
obligations of the Successor Agency but are not a debt of the City of Oroville, the State of California or any other
political subdivisions thereof within the meaning of any constitutional or statutory limitation, and neither the City of
Oroville, the State of California, nor any other of its political subdivisions, except the Successor Agency, is liable
for the payment thereof.
C-4
2.
The Indenture has been duly authorized by the Successor Agency, is valid and binding upon the
Successor Agency and is enforceable in accordance with its terms, except to the extent that enforceability may be
limited by moratorium, bankruptcy, reorganization, fraudulent conveyance or transfer, insolvency or other similar
laws affecting creditors’ rights to the application of equitable principles if equitable remedies are sought, to the
exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against public agencies in
the State of California.
3.
The Indenture creates a valid pledge of that which the Indenture purports to pledge, including,
without limitation, the Pledged Tax Revenues and subject to the provisions of the Indenture, except to the extent that
such pledge may be limited by moratorium, bankruptcy, reorganization, fraudulent conveyance or transfer,
insolvency or other similar laws affecting creditors’ rights to the application of equitable principles if equitable
remedies are sought, to the exercise of judicial discretion in appropriate cases and to the limitations on legal
remedies against public agencies in the State of California.
4.
Interest on the 2015B Bonds is not excluded from gross income for federal income tax purposes.
5.
Interest on the 2015B Bonds is excluded from State of California personal income tax.
The opinions expressed herein are based on an analysis of existing statutes, regulations, rulings and judicial
decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by
actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to
determine, or to inform any person, whether any such actions or events are taken or do occur. Such actions or
events may adversely affect the value or tax treatment of the 2015B Bonds and we express no opinion with respect
thereto.
We call attention to the fact that the rights and obligations under the Indenture and the 2015B Bonds are
subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws
affecting creditors’ rights, to the application of equitable principles if equitable remedies are sought, to the exercise
of judicial discretion in appropriate cases and to limitations on legal remedies against public agencies in the State of
California.
Our opinion is limited to matters governed by the laws of the State of California and federal law. We
assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.
The opinions expressed herein are based upon our analysis and interpretation of existing laws, regulations,
rulings and judicial decisions and cover certain matters not directly addressed by such authorities.
We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement
relating to the 2015B Bonds or other offering material relating to the 2015B Bonds and purchasers of the 2015B
Bonds should not assume that we have reviewed the Official Statement on their behalf.
The federal tax and State of California personal income tax discussion set forth above with respect to the
2015B Bonds is included for general information only and may not be applicable depending upon a Beneficial
Owner’s particular situation. The ownership and disposal of the 2015B Bond and the accrual or receipt of interest
with respect to the 2015B Bond may otherwise affect the tax liability of certain persons. Bond Counsel expresses no
opinion regarding any such tax consequences.
Respectfully submitted,
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APPENDIX D
BOOK-ENTRY ONLY SYSTEM
The information in this Appendix D concerning The Depository Trust Company (“DTC”), New York, New
York, and DTC’s book-entry system has been obtained from DTC and the Agency takes no responsibility for the
completeness or accuracy thereof. The Agency cannot and does not give any assurances that DTC, DTC
Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or
premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation
or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as
the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC
Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are
on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in
dealing with DTC Participants are on file with DTC.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds.
The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership
nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity,
and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New
York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues,
corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s
participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct
Participants of sales and other securities transactions in deposited securities, through electronic computerized bookentry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement
of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks,
trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities
Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC
is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear
through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect
Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on
file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond
(“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners
will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the
Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on
behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests
in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the
name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized
D-1
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such
other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts
such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will
remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the
Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the
Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial
Owners may wish to provide their names and addresses to the registrar and request that copies of notices be
provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such
maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds
unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures,
DTC mails an Omnibus Proxy to the Agency as soon as possible after the record date. The Omnibus Proxy assigns
Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Principal, premium (if any), and interest payments on the Bonds will be made to Cede & Co., or such other
nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Agency or the
Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case
with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the
responsibility of such Participant and not of DTC, the Trustee, or the Agency, subject to any statutory or regulatory
requirements as may be in effect from time to time. Principal, premium (if any), and interest payments with respect
to the Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is
the responsibility of the Agency or the Trustee, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of
Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to the Agency or the Trustee. Under such circumstances, in the event that a successor depository
is not obtained, certificates representing the Bonds are required to be printed and delivered.
The Agency may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, representing the Bonds will be printed and delivered to DTC in
accordance with the provisions of the Indenture.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof.
D-2
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”), dated _________, 2015, is executed
and delivered by the Successor Agency to the Oroville Redevelopment Agency (the “Agency”) in connection with
the issuance of its $18,380,000 principal amount Oroville Redevelopment Project No. 1, Tax Allocation Refunding
Bonds, Series 2015A (the “2015A Bonds”) and its $525,000 principal amount Oroville Redevelopment Project
No. 1 Tax Allocation Refunding Bonds Series 2015B (Taxable) (the “2015B Bonds” and together with the 2015A
Bonds, the “Bonds”). The Bonds will be issued under the terms of a Indenture of Trust, dated as of April 1, 2015
(the “Indenture”), by and among the Authority, the Agency and U.S. Bank National Association, as trustee (the
“Trustee”). The Agency covenants and agrees as follows:
Section 1.
Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and
delivered by the Agency for the benefit of the holders and beneficial owners of the Bonds and in order to assist the
Participating Underwriter in complying with the Rule (as defined below).
Section 2.
Definitions. In addition to the definitions set forth in the Indenture, which apply to any
capitalized term used in this Disclosure Certificate, unless otherwise defined in this Section, the following
capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the Agency pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Dissemination Agent” shall mean, initially Rosenow Spevacek Group Inc., or any successor
Dissemination Agent designated in writing by the Agency and which has filed with the Agency and the Trustee a
written acceptance of such designation.
“EMMA” shall mean the Electronic Municipal Market Access system located at
http://www.emma.msrb.org, as the centralized on-line repository for municipal disclosure documents to be filed with
the MSRB pursuant to the Rule, or such other successor repository site as prescribed by the MSRB.
“Listed Events” shall mean any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” shall mean the Municipal Securities Rulemaking Board or any successor thereto.
“Official Statement” shall mean the final Official Statement relating to the Bonds.
“Participating Underwriter” shall mean Southwest Securities, Inc., as the original underwriter of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
“Rule” shall mean Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as
the same may be amended from time to time.
“SEC” shall mean the United States Securities and Exchange Commission.
Section 3.
Provisions of Annual Reports.
(a)
The Agency shall, or shall cause the Dissemination Agent to, no later than nine months
after the close of each fiscal year, commencing with the report for the 2014-15 fiscal year, provide to the MSRB, via
EMMA, an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The
Annual Report may be submitted as a single document or as separate documents comprising a package, and may
include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the
audited financial statements of the Agency may be submitted separately from the balance of the Annual Report, and
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later than the date required above for the filing of the Annual Report if not available by that date. If the Agency’s
fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b).
(b)
Not later than 15 business days prior to the date specified in subsection (a) above for
providing the Annual Report to the MSRB, the Agency shall provide the Annual Report to the Dissemination Agent
(if other than the Agency). If by such date, the Dissemination Agent has not received a copy of the Annual Report,
the Dissemination Agent shall contact the Agency to determine if the Agency is in compliance with the first
sentence of this subsection (b). The Agency shall provide a written certification with each Annual Report furnished
to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be
furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the Agency
and shall have no duty or obligation to review such Annual Report.
(c)
If the Dissemination Agent is unable to verify that an Annual Report has been provided
to the MSRB by the date required in subsection (a), the Dissemination Agent shall send a notice to the MSRB, in
such form as prescribed by or acceptable to MSRB.
(d)
The Dissemination Agent (if other than the Agency) shall, if and to the extent the Agency
has provided an Annual Report in final form to the Dissemination Agent for dissemination, file a report with the
Agency certifying that the Annual Report has been provided to the MSRB pursuant to this Disclosure Certificate,
and stating the date it was provided.
Section 4.
reference the following:
Content of Annual Reports. The Agency’s Annual Report shall contain or incorporate by
(a)
A post-audit of the financial transactions and records of the Agency for the fiscal year to
be made by an Independent Certified Public Accountant appointed by the Agency prepared in accordance with
generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the
Governmental Accounting Standards Board. If the Agency’s post-audit is not available by the time the Annual
Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain an unaudited statement of
financial transactions and records of the Agency in a format required by Section 34177(n) of the Dissolution Act,
and the post-audit shall be filed in the same manner as the Annual Report when they become available.
(b)
Financial information and operating data relating to the Project Area contained in the
Official Statement for the Bonds under the headings “PROJECT AREA — “Land Use,” “— Largest Taxpayers,”
and “— Appeals” and “PLEDGED TAX REVENUES —Schedule of Historical RPTTF Revenues,” in each case for
the prior fiscal year.
(c)
An update of the debt service coverage table shown in the Official Statement using the
most recent fiscal year Pledged Tax Revenues.
(d)
A listing of the amount of each distribution from the Butte County Auditor-Controller of
property tax revenues from the Redevelopment Property Tax Trust Fund received by the Agency for its enforceable
obligations for the most recent fiscal year, as reasonably available 15 days prior to the due date of each Annual
Report.
Any or all of the items listed above for inclusion in the Annual Report may be included by specific
reference to other documents, including official statements of debt issues of the Agency or related public entities,
which have been available to the public on EMMA or filed with the SEC. The Agency shall clearly identify each
such other document so included by reference.
Section 5.
Reporting of Significant Events.
(a)
Pursuant to the provisions of this Section 5, the Agency shall give, or cause to be given,
notice of the occurrence of any of the following Listed Events with respect to the Bonds, which notice shall be given
in a timely manner, not in excess of ten business days after the occurrence of such Listed Event:
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(1)
Principal and interest payment delinquencies;
(2)
Non-payment related defaults, if material;
(3)
Unscheduled draws on debt service reserves reflecting financial difficulties;
(4)
Unscheduled draws on credit enhancements reflecting financial difficulties;
(5)
Substitution of credit or liquidity providers, or their failure to perform;
(6)
Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the
Bonds;
(7)
Modifications to rights of Bond owners, if material;
(8)
Bond calls, if material, and tender offers;
(9)
Defeasances;
(10)
Release, substitution, or sale of property securing repayment of the Bonds, if
(11)
Rating changes;
material
(12)
Bankruptcy, insolvency, receivership or similar event of the Obligated Person,
which shall occur as described below;
(13)
The consummation of a merger, consolidation, or acquisition involving the
Agency or the sale of all or substantially all of the assets of the Agency, other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material; and
(14)
Appointment of a successor or additional trustee or the change of name of a
trustee, if material.
For these purposes, any event described in item (12) of this Section 5(a) is considered to occur when any of
the following occur: the appointment of a receiver, fiscal agent, or similar officer for the Agency in a proceeding
under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of the assets or business of the Agency, or if
such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan
of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the Agency.
(b)
Upon receipt of notice from the Agency and instruction by the Agency to report the
occurrence of any Listed Event, the Dissemination Agent shall provide notice thereof to the MSRB in accordance
with Section 5(c) hereof. In the event the Dissemination Agent shall obtain actual knowledge of the occurrence of
any of the Listed Events, the Dissemination Agent shall, immediately after obtaining such knowledge, inform the
Agency of the event and request that the Agency promptly notify the Dissemination Agent in writing whether or not
to report the event pursuant to Section 5(c). For purposes of this Disclosure Agreement, “actual knowledge” of the
occurrence of such Listed Event shall mean actual knowledge by the Dissemination Agent, if other than the Trustee,
and if the Dissemination Agent is the Trustee, then by the officer at the corporate trust office of the Trustee with
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regular responsibility for the administration of matters related to the Indenture. The Dissemination Agent shall have
no responsibility to determine the materiality, if applicable, of any of the Listed Events.
(c)
The Agency, or the Dissemination Agent, if the Dissemination Agent has been instructed
by the Agency to report the occurrence of a Listed Event, shall file a notice of such occurrence with the MSRB in a
timely manner not more than ten business days after the occurrence of the event.
Section 6.
Termination of Reporting Obligation. The Agency’s obligations under this Disclosure
Certificate with respect to each series of the Bonds shall terminate upon the legal defeasance, prior redemption or
payment in full of all of the Bonds. If such termination occurs prior to the final maturity of such Bonds, the Agency
shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).
Section 7.
Dissemination Agent. The initial Dissemination Agent shall be Rosenow Spevacek
Group Inc. From time to time, the Agency may appoint a different Dissemination Agent to assist it in carrying out
its obligations under this Disclosure Certificate. The Dissemination Agent may resign by providing 30 days written
notice to the Agency and the Trustee. The Agency may replace the Dissemination Agent with or without cause.
Section 8.
Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate,
the Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived,
provided that the following conditions are satisfied:
(a)
if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may
only be made in connection with a change in circumstances that arises from a change in legal requirements, change
in law, or change in the identity, nature, or status of an Obligated Person with respect to the Bonds, or type of
business conducted;
(b)
the undertakings herein, as proposed to be amended or waived, would, in the opinion of
nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary
offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change
in circumstances; and
(c)
the proposed amendment or waiver affecting the Bonds either (i) is approved by holders
of the affected Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of
holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the
holders or beneficial owners of such Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended
pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended
operating data or financial information shall explain, in narrative form, the reasons for the amendment and the
impact of the change in the type of operating data or financial information being provided. For purposes of this
paragraph, “impact” has the meaning as that word is used in the letter from the staff of the Securities and Exchange
Commission to the National Association of Bond Lawyers dated June 23, 1995.
If an amendment is made to the undertaking specifying the accounting principles to be followed in
preparing financial statements, the annual financial information for the year in which the change is made shall
present a comparison between the financial statements or information prepared on the basis of the new accounting
principles and those prepared on the basis of the former accounting principles. The comparison shall include a
qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting
principles on the presentation of the financial information, in order to provide information to investors to enable
them to evaluate the ability of the Agency to meet its obligations. To the extent reasonably feasible, the comparison
shall be quantitative. A notice of the change in the accounting principles shall be sent to the MSRB in the same
manner as for a Listed Event under Section 5(b).
No amendment to this Agreement which modifies the duties or rights of the Dissemination Agent shall be
made without the prior written consent of the Dissemination Agent.
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Section 9.
Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Agency from disseminating any other information, using the means of dissemination set forth in this
Disclosure Certificate or any other means of communication, or including any other information in any Annual
Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate.
If the Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in
addition to that which is specifically required by this Disclosure Certificate, the Agency shall have no obligation
under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of
occurrence of a Listed Event.
Section 10.
Default. In the event of a failure of the Agency or the Dissemination Agent to comply
with any provision of this Disclosure Certificate, any Participating Underwriter or any holder or beneficial owner of
the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the Agency or the Dissemination Agent, as the case may be, to comply with its
obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an
Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any
failure of the Agency or the Dissemination Agent to comply with this Disclosure Certificate shall be an action to
compel performance.
Section 11.
Duties, Immunities and Liabilities of Dissemination Agent. The Agency agrees to
indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any
loss, expense and liabilities which it may incur arising out of the disclosure of information pursuant to this
Disclosure Certificate or arising out of or in the exercise or performance of its powers and duties hereunder,
including the costs and expenses (including attorney’s fees) of defending against any claim of liability, but
excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent
has only such duties as are specifically set forth in this Disclosure Certificate. The Dissemination Agent (if different
than the Agency) shall be paid compensation by the Agency for its services provided hereunder in accordance with
its schedule of fees as amended from time to time. The Dissemination Agent shall have no duty or obligation to
review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for
the Agency, the Owners, or any other party. The Dissemination Agent may rely and shall be protected in acting or
refraining from acting upon any direction from the Agency or an opinion of nationally recognized bond counsel.
The obligations of the Agency under this Section shall survive resignation or removal of the Dissemination Agent
and payment of the Bonds.
Section 12.
Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Agency,
the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the
Bonds, and shall create no rights in any other person or entity.
IN WITNESS WHEREOF, the Agency has caused its duly authorized officer to execute and deliver this
Certificate on the date first written above.
SUCCESSOR AGENCY TO
REDEVELOPMENT AGENCY
By:
Acting Executive Director
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THE
OROVILLE
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APPENDIX F
CITY OF OROVILLE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR
ENDED JUNE 30, 2014
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CITY OF OROVILLE
CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Table Mtn Water Fall – Oroville CA
Photo by Wayne Wilson - Wayne Wilson Artworks 2014
Submitted by:
City of Oroville
Department of Finance
Ruth Wright, Director of Finance
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CITY OF OROVILLE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2014 T ABLE OF C ONTENTS
I NTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................... 3
Elected Officials and Administrative Personnel ........................................................................................... 7
Organizational Chart ................................................................................................................................... 8
GFOA Certificate of Achievement for Excellence in Financial Reporting ...................................................... 9
F INANCIAL S ECTION
Independent Auditor’s Report .................................................................................................................... 13
Management’s Discussion and Analysis (Required Supplementary Information) .......................................... 15
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................................. 29
Statement of Activities .................................................................................................................. 30
Fund Financial Statements
Governmental Funds:
Balance Sheet ......................................................................................................................... 31
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position .............................................. 32
Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ 33
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government-Wide
Statement of Activities ....................................................................................................... 34
Proprietary Funds:
Statement of Net Position ........................................................................................................ 35
Statement of Revenues, Expenses, and Changes in Fund Net Position ....................................... 36
Statement of Cash Flows ......................................................................................................... 37
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 38
Statement of Changes in Fiduciary Net Position ....................................................................... 39
Notes to the Basic Financial Statements ..................................................................................................... 40
R EQUIRED S UPPLEMENTARY I NFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) – General Fund ................................................................................ 69
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) – Sewer Fund ................................................................................... 70
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) – Housing Program Fund .................................................................. 71
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) – First Time Home Buyer Grant Fund ............................................... 72
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) – Community Development Block Grant Fund ................................... 73
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) – OPFA Redemption Fund ................................................................ 74
Retiree Healthcare Plan – Schedule of Funding Progress ............................................................................ 75
S UPPLEMENTARY I NFORMATION
Nonmajor Governmental Funds:
Combining Nonmajor Governmental Funds:
Combining Balance Sheet .............................................................................................................. 79
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 80
CITY OF OROVILLE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2014 T ABLE OF C ONTENTS C ONTINUED
Combining Special Revenue Funds:
Combining Balance Sheet .............................................................................................................. 82
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 89
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) ............................................................................................ 96
Combining Debt Service Funds:
Combining Balance Sheet ............................................................................................................ 122
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................... 123
Combining Capital Projects Funds:
Combining Balance Sheet ............................................................................................................ 126
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................... 127
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual (GAAP Basis) .......................................................................................... 128
Combining Proprietary Funds:
Combining Internal Service Funds:
Combining Statement of Net Position .......................................................................................... 132
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................... 133
Combining Statement of Cash Flows ............................................................................................ 134
Combining Fiduciary Funds:
Combining Agency Funds:
Combining Balance Sheet ............................................................................................................ 136
Combining Statement of Changes in Assets and Liabilities ........................................................... 137
S TATISTICAL S ECTION (U NAUDITED )
Financial Trends:
Net Position by Component ............................................................................................................... 142
Changes in Net Position .................................................................................................................... 143
Fund Balances of Governmental Funds .............................................................................................. 145
Changes in Fund Balances of Governmental Funds ............................................................................. 146
Revenue Capacity Information:
Assessed Value of Taxable Property .................................................................................................. 147
Direct and Overlapping Property Tax Rates ........................................................................................ 148
Principal Property Taxpayers ............................................................................................................. 149
Property Tax Levies and Collections .................................................................................................. 150
Debt Capacity:
Ratios of Outstanding Debt by Type .................................................................................................. 151
Ratios of General Bonded Debt Outstanding ....................................................................................... 152
Direct and Overlapping Debt ............................................................................................................. 153
Legal Debt Margin Information ......................................................................................................... 154
Pledge Revenue Coverage.................................................................................................................. 155
Demographic and Economic Information:
Demographic and Economic Statistics ................................................................................................ 156
Principal Employers .......................................................................................................................... 157
Operating Information:
Full-Time and Part-Time City Employees by Function ........................................................................ 158
Operating Indicators by Function ....................................................................................................... 159
Capital Asset Statistics by Function ................................................................................................... 160
INTRODUCTORY SECTION
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DISCOVER GOLD…DISCOVER OROVILLE .
1735 MONTGOMERY STREET OROVILLE, CALIFORNIA 95965 December 18, 2014 To the Honorable Mayor, Members of the City Council, and Citizens of Oroville: The City of Oroville (City) hereby submits the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2014. The CAFR contains financial statements that have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) as prescribed for government entities. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and present fairly the respective financial position and changes of the City, as of June 30, 2014. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. The CAFR is published to provide information about the City to its citizens, the investment community, the general public, and others who may have an interest in the financial information regarding the City. This letter of transmittal is designed to be read with and complement the Management’s Discussion and Analysis (MD&A). The MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY The City was incorporated as a Charter City in 1906. Also known as the City of Gold, the City is located approximately 70 miles north of Sacramento, California’s State Capitol. Notably, the City is home to the tallest earthen‐filled dam in the world. The Oroville Dam was completed in 1968 and provides the City with an abundance of recreational opportunities. The City is one of five incorporated cities/towns located within the County of Butte: Biggs, Chico, Gridley, Oroville, and Paradise. The City Council is the elected legislative body for the City. It is composed of seven members, the Mayor plus six council members, who are elected at large for four‐year staggered terms. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and appointing the Vice Mayor. Page 3
City of Oroville
Transmittal Letter
There are two formal advisory bodies required by the City Charter: the Planning Commission and Parks Commission. These advisory bodies are appointed by the City Council to provide information, research, and direct public participation in shaping the City’s policies. Other advisory committees are appointed and created by the Council. All members serve at the pleasure of the Council. The City provides a broad range of services including police and fire protection; construction and maintenance of streets, sewer, and infrastructure; community development, including planning and zoning; building and safety, and housing activities; municipal airport; golf course; and general administrative services. The City maintains a website located at: www.cityoforoville.org that provides online services and extensive information about the City. This website includes information about the Council, Council meeting agendas, City job listings, City museums, local recreation, financial information, and links to other local resources, to name just a few. MAJOR INITIATIVES Capital Projects Road Rehabilitation Project The Council authorized $431,448 of project funding for road rehabilitation in fiscal year 2013/2014. The funding was used for the following purposes; road surface repairs, chip sealing, re‐striping and markings, and inspection services. Surface repairs were completed on 14 roads in preparation for chip sealing. Two major roads were chip sealed and completed. FACTORS AFFECTING FINANCIAL CONDITION Economic Challenges The City’s economic status has stabilized and shows sign of slight improvement. After prudent decision‐
making during a difficult fiscal crisis, the City is on track to continue to meet its current needs and planning for future needs. The City is attracting new business and continues to grow. Wineries are becoming popular in this region due to the climate. Olive oil production and sales continue to thrive in this climate as well. Internal Control The management of the City has established a comprehensive framework of internal controls designed to ensure that the assets of the government are protected from loss, theft or misuse. This framework ensures that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. Reasonable assurance provides that the cost of internal controls should not exceed the benefits and that decisions often require the use of estimates and judgments by management. Page 4
City of Oroville
Transmittal Letter
Single Audit As a recipient of federal and state financial assistance, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A‐133, Audits of States, Local Governments, and Non‐profit Organizations. Information related to this single audit includes the schedule of federal awards, findings and questioned costs, and the independent auditor’s report on internal control and compliance. The City is also responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. Internal controls are subject to periodic evaluation by management and the Finance Department staff. The 2013‐14 Single Audit will be issued under separate cover and will be available by contacting the Finance Department after March 31, 2015. Budgeting Controls In addition to accounting controls, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The budget also serves as the foundation for financial planning and control for the City. In accordance with the City’s Charter, a budget is presented on or before June 1 each year to the City Council and must be adopted by the first regular meeting in July. Credit Rating Over the past year, rating downgrades have occurred for a variety of public and private entities. However the City has not experienced any downgrades nor is the City on credit watch by any of the rating agencies. The City proudly maintains a strong credit rating and strives to continue this achievement. OTHER INFORMATION Independent Audit City Charter requires an annual audit by independent certified public accountants. The firm of Chavan & Associates, LLP was selected to perform this service. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City, for the fiscal year ended June 30, 2014, are free of material misstatement. The independent auditor’s report is presented as the first item of the financial section of the report. Awards and Acknowledgments The GFOA awarded the prestigious Certificate of Achievement for Excellence in Financial Reporting to the City for successful completion of the CAFR for the fiscal year ended June 30, 2013. This achievement represents the City’s 19th consecutive award. This award is the highest form of recognition for excellence in state and local government reporting. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. Page 5
City of Oroville
Transmittal Letter
A Certificate of Achievement is valid for a period of one year only. We believe this current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the efficient and dedicated services of staff from the Finance Department and the cooperation and assistance of all City departments. We commend the Council for its interest, support, and exemplary leadership in planning and conducting the financial operations of the City in a responsive and progressive manner. Respectfully submitted, Randy Murphy
City Administrator Glenn Lazof
Interim Finance Director Page 6
Ruth Wright, CPA
Finance Director Elected Officials and
Administrative Personnel
City of Oroville
City Council Mayor Linda L. Dahlmeier Vice Mayor Thil Chan‐Wilcox Council Member Gordon Andoe Council Member Jack Berry Council Member Barbara ‘Cheri’ Bunker Council Member David Pittman Council Member Allen ‘JR’ Simpson City Administration City Administrator Randy Murphy Director of Public Safety Bill LaGrone Director of Community Development Donald Rust Director of Finance Ruth Wright City Treasurer (Elected) Karolyn Fairbanks City Planning Commission Chairperson Damon Robison Vice Chairperson Carl Durling Commissioner Michael Britton, Sr. Commissioner Wyatt Jenkins Commissioner Tua Vang Commissioner Adonna Brand Commissioner Randy Chapman City Park Commission Chairperson Scott Lawrence Vice Chairperson Machelle Conn Commissioner Beth Brown Standley Commissioner Ray Sehorn Commissioner Jim Prouty Independent Auditors Chavan & Associates, LLP Certified Public Accountants Page 7
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Page 10
FINANCIAL SECTION
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Page 12
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the
City Council of the City of Oroville
Oroville, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the City of Oroville (the “City"), as of and for the year
ended June 30, 2014, and the related notes to the financial statements, which collectively comprise
City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America, the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Oroville, as of June 30, 2014, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
1475 Saratoga Ave, Suite 180, San Jose, CA 95129
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and required supplementary information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s financial statements as a whole. The introductory section, combining
individual non-major fund statements and schedules, and statistical section, as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the financial
statements. The combining individual non-major fund statements and schedules have been subjected to
the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 18,
2014 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
December 18, 2014
San Jose, California
1475 Saratoga Ave, Suite 180, San Jose, CA 95129
Tel: 408-217-8749 • E-Fax: 408-872-4159
Page 14
[email protected] • www.cnallp.com
City of Oroville Management’s Discussion and Analysis INTRODUCTION The Management’s Discussion and Analysis (MD&A) is a required section of the City’s Comprehensive Annual Financial Report (CAFR), as shown in the overview below. The purpose of the MD&A is to present a discussion and analysis of the City’s financial performance during the fiscal year that ended on June 30, 2014. This report will (1) focus on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any individual fund issues or concerns, and (5) provide descriptions of significant asset and debt activity. This information, presented in conjunction with the annual Transmittal Letter and Basic Financial Statements is intended to provide a comprehensive understanding of the City’s operations and financial standing. Required Components of the Annual Financial Report Management’s
Discussion & Analysis
Basic
Financial Statements
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
FISCAL YEAR 2013/14 FINANCIAL HIGHLIGHTS  Total net position increased by $905,707 from last fiscal year.  The City's assets exceeded its liabilities by $55.2 million; assets and deferred outflows totaled $125.9 million and liabilities were $70.7 million.  Net position consisted of $13.3 million classified as net investment in capital assets; $33.8 million as restricted; and $8 million as unrestricted net position.  Total City‐wide revenues were $22.3 million which consists of program revenue of $11.2 million and general revenues of $11.1 million.  Total City expenses were $21.5 million.  Total Governmental Fund fund balances were $43.7 million, which included a $22.4 million fund balance in the Oroville Public Financing Authority Redemption Fund. Total fund balance decreased by $30,440 from last year.  General Fund revenues were $10.5 million, while General Fund expenditures were $12.9 million. Transfers in to the General Fund from other funds were $1.3 million. This deficit was due to the expensing of $1,852,000 loan to the Redevelopment Agency, paid to the State Department of Finance in regard to the dissolution. Without this expense general fund revenue actually exceeded its expenses for the current fiscal year. Page 15
City of Oroville
Management’s Discussion and Analysis
THE BASIC FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of 1) Government-wide (City-wide) Financial Statements, and;
2) Fund Financial Statements. These two sets of financial statements provide the reader two different
perspectives of the City's financial activities and financial position.
Government-Wide Financial Statements provide a longer-term view of the City's activities as a whole, and
comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position
provides information about the financial position of the City as a whole, including all its capital assets and
long-term liabilities on a full accrual basis, similar to that used by corporations. The Statement of Activities
provides information about all the City's revenues and all its expenses, also on a full accrual basis, with the
emphasis on measuring net revenues and/or expenses for each of the City's programs. The Statement of
Activities explains in detail the change in Net Position for the fiscal year.
All of the City's activities are required to be grouped into government activities and business-type activities.
The entire amount in the Statement of Net Position and the Statement of Activities are also required to be
separated into governmental activities or business-type activities in order to distinguish between these two
types of activities of the City.
Fund Financial Statements report the City's operations in more detail than the government-wide statements
and focus primarily on the short-term activities of the City's general fund and other major funds. The Fund
Financial Statements measure only current revenues and expenditures and fund balances; they exclude
capital assets, long-term debt, and other long-term amounts.
Major funds account for the major financial activities of the City and are presented individually, while the
activities of non-major funds are presented in summary, with subordinate schedules presenting the detail
for each of these other funds. Major funds are explained below.
The Government-Wide Financial Statements
Government-wide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole. The Statement of Net Position and the Statement of
Activities present information about the following:
Governmental Activities – All of the City's basic services are considered to be governmental activities,
including general government, community development, public safety, transportation, and, culture and
leisure. These services are supported by general City revenues such as taxes, and by specific program
revenues such as development and recreation program fees.
Business-Type Activities – This category includes enterprise activities such as bus transportation, water, and
utilities. Unlike governmental services, these services are fully supported by charges paid by users based on
the amount of services they use.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
Fund financial statements provide detailed information about each of the City's most significant funds,
called major funds. The concept of major funds, and the determination of which are major funds, was
established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in
total. Instead, each major fund is presented individually, with all non-major funds summarized and
presented only in a single column. Subordinate schedules present the detail of these non-major funds.
Page 16
City of Oroville
Management’s Discussion and Analysis
Major funds present the major activities of the City for the fiscal year, and may change from year to year as
a result of changes in the pattern of the City's activities. The City's funds are segregated into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds – The City's basic services are reported in governmental funds, which focus on how
money flows into and out of those funds and the balances available at year-end. Financial statements are
prepared on the modified accrual basis, which means they measure only current financial resources and
uses. Carrying amounts for capital assets and other long-lived assets, along with long-term liabilities are not
presented on the balance sheet in the governmental fund financial statements. Unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the City's near-term financing requirements.
Proprietary Funds – When the City charges customers for the services it provides, whether to outside
customers or to other units of the City, these services are generally reported in proprietary funds.
Proprietary funds are reported in the same way that all activities are reported in the Statement of Net
Position and the Statement of Activities. In fact, the City’s enterprise fund is the same as the business
type activities reported in the Government-Wide statements. Proprietary funds provide the same type
of information as Government-Wide statements but only in more detail, with additional information,
such as cash flows. The City uses internal service funds (the other component of proprietary funds) to
report activities that provide supplies and services for the City’s other programs and activities such as
the City’s self-insurance, stores and vehicle maintenance funds. The internal services funds are reported
with governmental activities in the Government-Wide Financial Statements.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties
outside the City. Fiduciary funds are not reported in the Government-Wide financial statements
because the resources of these funds are not available to support the City of Oroville’s own programs.
The accounting for fiduciary funds is much like that used for business type activities. The City maintains
two types of fiduciary funds; private-purpose trust and agency. The Oroville Successor Agency to the
former Oroville Redevelopment Agency is reported as a private-purpose trust fund. The City’s agency
funds report resources held by the City in a custodial capacity for individuals, private organizations and
other governments.
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes can be found
immediately following the fund financial statements.
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information other than through the MD&A follows the Notes and includes a
budgetary comparison for the General Fund and other major funds as presented in the governmental
fund financial statements.
Page 17
City of Oroville
Management’s Discussion and Analysis
SUPPLEMENTARY INFORMATION
Combining and individual fund statements and schedules are included to provide additional information
on non-major governmental funds including special revenue, debt service, capital project funds,
proprietary internal service fund information and agency funds. An un-audited statistical section
provides historical and current data on financial trends, revenue and debt capacity, demographic and
economic information, and operating information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as an indicator of the City's financial position. The City's Total Net Position
increased $905,705, from $54.3 million in fiscal year 2012/13 to $55.2 million in fiscal year 2013/14. A
significant portion of the City's net position ($13.3 million or 24%) was net investment in capital assets, (e.g.,
land, buildings, general government infrastructure, equipment, etc.) which is capital assets net of
accumulated depreciation and reduced by any related debt used to acquire or construct those assets.
Capital assets represent infrastructure which provide services to citizens and are not available for future
spending.
The Oroville Successor Agency is reported as a private-purpose trust fund of the City of Oroville and,
therefore, has been excluded from the determination of net position. The City reports a receivable of
$22.4 million from the Oroville Successor Agency for amounts due to the Oroville Public Financing
Authority (“OPFA”), a component unit of the City of Oroville. The loan is restricted as loan payments
must be used for servicing the bonded debt of the OPFA. A total of $33.8 million of the City’s net
position was restricted at the end of the year, which was an increase of $1.18 million (4%) from last
year, and comprised 61% of the City’s total net position.
The following table summarized the City’s ending net position:
Net Position
Governmental Activities
2014
2013
Assets
Current and other assets
Capital assets
Total Assets
Deferred Outflows of Resources
Liabilities
Current and other liabilities
Noncurrent liabilities
Total Liabilities
Net Position
Net investment in capital assets
Restricted
Unrestricted
Total Net Position
$
Business-Type Activities
2014
2013
85,123,756
36,344,888
$ 121,468,644
$
84,567,899
36,819,095
$ 121,386,994
$
$
4,066,542
$
4,653,556
$
-
$
$
41,917,362
28,824,065
70,741,427
$
40,426,849
31,539,430
71,966,279
$
898
898
$
13,298,388
33,873,844
7,621,527
54,793,759
$
13,015,066
32,687,196
8,372,009
54,074,271
$
422,283
422,283
$
$
$
$
$
$
Page 18
$
$
$
423,181
423,181
$
$
$
$
237,039
237,039
Total
2014
$
2013
85,546,937
36,344,888
$ 121,891,825
$
-
$
4,066,542
$
4,653,556
975
975
$
41,918,260
28,824,065
70,742,325
$
40,427,824
31,539,430
71,967,254
236,064
236,064
$
13,298,388
33,873,844
8,043,810
55,216,042
$
$
$
84,804,938
36,819,095
$ 121,624,033
$
$
13,015,066
32,687,196
8,608,073
54,310,335
City of Oroville
Management’s Discussion and Analysis
Statement of Changes in Net Position
Functions/Programs
Program Revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
Total Program Revenues
Governmental Activities
2014
2013
$
6,415,514
2,963,505
1,280,775
10,659,794
$
7,545,585
4,899,372
343,628
12,788,585
Business-Type Activities
2014
2013
Increase
(Decrease)
$
(1,130,071)
(1,935,867)
937,147
(2,128,791)
$
8,328
575,078
583,406
$
11,206
505,692
516,898
Increase
(Decrease)
$
(2,878)
69,386
66,508
General Revenues
Property taxes
Sales and use taxes
Sales and use taxes in-lieu
Transient occupancy taxes
Utility users tax
Franchise taxes
Other taxes
Investment earnings
Other revenues
Transfers
Total General Revenues
1,605,675
3,045,776
2,053,454
426,190
1,594,686
513,879
326,716
296,696
738,796
434,055
11,035,923
1,962,107
2,756,313
2,194,730
421,261
1,577,706
439,968
32,558
15,237
91,000
9,490,880
(356,432)
289,463
(141,276)
4,929
16,980
73,911
294,158
281,459
738,796
343,055
1,545,043
307
91,000
91,307
561
(91,000)
(90,439)
(254)
182,000
181,746
Expenses
General Government
Public Safety
Public Works
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Interest on fiscal charges
Total Expenses
2,571,905
7,776,039
1,266,059
638,448
1,226,718
592,427
1,493,462
3,512,865
1,965,879
21,043,802
2,503,161
7,823,664
1,419,806
819,108
1,435,575
735,007
1,716,356
6,109,168
1,518,758
24,080,603
68,744
(47,625)
(153,747)
(180,660)
(208,857)
(142,580)
(222,894)
(2,596,303)
447,121
(3,036,801)
488,493
488,493
519,619
519,619
(31,126)
(31,126)
Increase / (Decrease) in Net Position
Prior Period Adjustments
Net Position, Beginning of Year
651,915
67,573
54,074,271
(1,801,138)
55,875,409
2,453,053
67,573
(1,801,138)
186,220
236,063
(93,160)
329,224
279,380
(93,161)
Net Position, End of Year
$
54,793,759
$
54,074,271
$
719,488
$
422,283
$
236,064
$
186,219
Governmental Activities
As shown in the above Statement of Changes in Net Position schedule, the net change in program
revenues from the prior fiscal year for governmental activities is a decrease of $2.1 million. The net
change in general revenues from the prior year is an increase of $1.5 million, for a total decrease in
revenues of $583,748. The net change in expenses from the prior year was a decrease of $3.07 million.
With total program and general revenues for fiscal year 2013/14 at $21.7 million and total expenses at
$21 million, the net activity resulted in an increase in Net Position of $651,915, excluding minor prior
period adjustments totaling $67,573.
Page 19
City of Oroville
Management’s Discussion and Analysis
An analysis and graphical representation of the changes in revenues and expenses by type of significant
events follows:
Governmental Revenues
Although a number of revenue categories increased during 2013/14, they were offset from large
reductions in operating grants and charges for services. The following chart summarized those changes:
Significant changes in governmental revenues consisted of the following:

Charge for Services and operating grants decreased by a combined $3 million mostly because of
reduced activity related to housing and community development.

There was a decrease of $356,432 from decreases in property values.

Other revenues increased by $738,796 because of the reclassification of revenues from program
revenues to general revenue from last year.
Page 20
City of Oroville
Management’s Discussion and Analysis
Governmental Expenses
The 2013/14 expenses for Governmental Activities decreased by $3 million primarily from reductions in
Housing and Community Development as illustrated in the chart below.
Significant changes in governmental expenses consisted of the following:

Housing and Community Development expenses decreased by $2.6 million because of a decline in
federal grants and other resources needed by the City to operate these programs.

In general, the City’s expenses decreased across all programs as a result of a change in management.

Interest expense increased by $447,121 because of scheduled hikes in debt service requirements
and the reclassification of debt related items such as discounts on debt issuance.
Business-Type Activities
The City’s net position for business type activities increased by $186,220.
Total expenses for business type activities was $488,493 during the year, which was a decrease of
$31,126 from prior year. As shown in the Statement of Activities, the amount paid by users of the bus
transportation system was $8,328 and total operating grants and contributions were $575,078.
A transfer in of $91,000 was made in to the Local Transportation Fund from the City’s General Fund for
street maintenance and operating costs.
Page 21
City of Oroville
Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is
presented below:
Summary of Changes in Fund Balance
Major Funds
Total Revenues
Total Expenditures
Revenues Over
(Under) Expenditures
Transfers in
Transfers out
Net change in fund balances
Beginning of year
End of year
General
Fund
$ 10,480,633
12,946,848
Sewer
Fund
$ 2,726,936
1,401,343
(2,466,215)
1,324,253
(23,735)
(1,165,697)
4,014,794
$ 2,849,097 $
Housing
Program
Fund
$ 347,352
508,300
First Time
Home Buyer
Grant
Fund
$ 273,842
430,616
1,325,593
(160,948)
14,541
1
(318,411)
(168,837)
1,021,723
(329,784)
2,533,519
1,424,247
3,555,242 $ 1,094,463 $
Community
Development
Block Grant
Fund
$ 1,280,353
935,460
Oroville
Public
Financing
Authority
Redemption
Fund
$ 1,081,652
-
Other
Governmental
Funds
$
5,593,529
6,061,226
(156,774)
344,893
1,081,652
255,000
1,613,271
(84,267)
(727,417)
(1,918,775)
13,959
1,230,747
(837,123)
618,021
886,844
23,294,625
631,980 $ 2,117,591 $ 22,457,502 $
Total
$ 21,784,297
22,283,793
(467,697)
3,692,129
(3,188,697)
35,735
11,021,587
11,057,322 $
(499,496)
6,899,195
(6,430,139)
(30,440)
43,793,637
43,763,197
The total change in fund balance from during the year, including Major Funds and Other Governmental
Funds, was a decrease of $30,440. Total ending fund balance was $43.76 million.
General Fund
The fund balance of the City’s General Fund decreased by $1.17 million. Total revenues decreased by
$46,538 while total expenditures increased by $954,937 from prior year, inclusive of the $1,852,000
remitted under protest to the State of California, originally intended as repayment of the City Loan to
the Redevelopment Agency. Housing and Community Development expenditures increased by $1.9
million in the General Fund while decreasing by $1.23 million for all governmental funds combined.
Among the special revenue funds, the Sewer Fund’s fund balance increased by $1.02 million because of
a slight increase in revenue and a reduction in expenditures during the year. The Housing Program
Fund’s fund balance decreased by $329,784 mostly from a decrease in total revenue of $221,780. This
decrease in revenue was due to a reduction in loan payments in the current year.
The Other Governmental Funds include all of the City’s nonmajor governmental funds which had an
increase in revenue of $1.72 million and an increase in expenditures of $1.75 million.
DEBT ADMINISTRATION
During the year, Long-Term Debt from governmental activities decreased by $1.34 million primarily due
to regular debt service payments. As of June 30, 2014, only $7.7 million was considered general City
obligations subject to the City’s debt limit of $37.9 million. There was no debt attributable to business
type activities as of June 30, 2014.
Taxable Pension Obligation Bonds
These bonds are an unconditional obligation of the City of Oroville payable from any legally available
funds. The bonds are not voter-approved debt backed by the taxing power of the City of Oroville and
the full faith and credit of the City has not been pledged to the repayment of the bonds. Due the
increasing public employee retirement system obligations for the unfunded liability portion which
triggers higher rates, the City of Oroville along with other Cities and Counties chose to issue bonds for
Page 22
City of Oroville Management’s Discussion and Analysis the unfunded liability to stabilize the rates going forward for retirement. The City of Oroville’s initial portion of the bond issuance equaled $7.26 million and the balance outstanding at June 30, was $5.745 million. Oroville Public Financing Authority (“OPFA”) debt The OPFA had three outstanding revenue bond issues. The City’s credit is not impacted by OPFA revenue bond issues. All three of the OPFA bond issue proceeds were loaned to the former Oroville Redevelopment Agency (“RDA”) to fund the various projects of the RDA. When the RDA was dissolved the loans became an enforceable obligation of the Oroville Successor Agency to the Former Oroville Redevelopment Agency (“Successor Agency”). The loan payments made to the OPFA by the Successor Agency are the sole source of revenues to pay the debt service on these bonds. The loan payments and the reserve funds of each bond issue are the only security for these revenue bonds. In October 2002, the OPFA issued $18.255 million of 2002 Tax Allocation Revenue Bonds. The proceeds were loaned to the former RDA to refund prior bond issues and to provide an additional $5.25 million in money for new redevelopment projects. In August 2004, two additional tax allocation revenue bond series were issued on parity with the 2002 bonds by the OPFA. The two series included the 2004 Tax Allocation Revenue Bonds, Series A in the amount of $8.48 million and the 2004 Taxable Tax Allocation Revenue Bonds, Series B in the amount of $2.145 million. The proceeds of both series were loaned to the former RDA to refund an older issue, and to provide an additional $5.375 million in money for new redevelopment projects. In order to reduce debt service costs and increase residual distributions to taxing agencies, the Successor Agency is considering the issuance of refunding bonds in the subsequent fiscal year. If approved this refunding is anticipated to be completed by March of 2015. The following table summarizes the City’s debt at the end of the year: Outstanding Long-Term Obligation at Year End
Governmental Activities
Oroville Public Financing Authority bonds
Pension obligation bonds
USDA COP loan
Net OPEB obligation
Compensated absences
Total outstanding long-term obligations
$
$
22,435,000
5,745,000
611,500
826,043
582,030
30,199,573
$
$
23,344,652
6,018,956
630,700
588,327
956,794
31,539,429
Business-Type Activities
Total outstanding long-term obligations
$
-
$
-
Additional detail and information on long‐term debt activity is described in the notes to the financial statements. Page 23
City of Oroville Management’s Discussion and Analysis CAPITAL ASSETS The capital assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. At June 30, 2014 , net capital assets of the governmental activities totaled $36.3 million and the net capital assets of the business type activities totaled $‐0‐. Depreciation on capital assets is recognized in the Government‐Wide Financial Statements. The City has elected to use straight line depreciation as defined by GASB Statement No. 34 for calculation of depreciation. The following table summarizes the City’s capital assets at the end of the year: Capital Assets at Year End - Net of Accumulated Depreciation
Governmental Activities
Land
Land improvements
Buildings
Underground collection system
Machinery and equipment
Infrastructure
Construction in progress
Total Capital Assets, Net of Depreciation
$
5,982,029
6,286,108
7,883,290
1,978,233
3,246,258
10,232,130
736,840
$ 36,344,888
$
$
5,982,029
5,563,749
7,968,312
2,049,957
3,386,347
11,131,861
736,840
36,819,095
Business-Type Activities
Total Capital Assets, Net of Depreciation
$
-
$
-
Additional detail and information on capital asset activity is described in the notes to the financial statements. GENERAL FUND BUDGETARY HIGHLIGHTS Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information Section along with a comparison to actual activity for the year ended. Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council. Modifications to the budget that are a realignment of fiscal activities with no impact to the fund's bottom line may be approved by the City Administrator. There were no significant changes from the City’s original budget to the final budget during the year. The General Fund adopted revenue budget was $10.63 million, and adopted transfers in was $1.15 million. The General Fund adopted expenditure budget was $13.95 million and adopted transfers out was $23,735. Budget adjustments were not made during the year. Page 24
City of Oroville
Management’s Discussion and Analysis
ECONOMIC FACTORS AND OUTLOOK
Oroville’s economy has begun a process of slow recovery. Although the economy is showing signs of
stability, the City had made significant cuts to navigate its way through the fiscal crisis. Cut backs,
deferred maintenance and replacement of equipment need to be addressed in current and ongoing
operations. Management is striving to continue to meet the rising needs of the community by making
sound decisions for the future.
REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City of Oroville's finances for all of
Oroville's residents, taxpayers, customers, investors, and creditors. This financial report seeks to
demonstrate the City's accountability for the money it receives. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to the
Department of Finance at 1735 Montgomery Street, Oroville, CA 95965, or visit the City of Oroville
webpage at http://www.cityoforoville.org/.
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Page 26
BASIC FINANCIAL STATEMENTS
Page 27
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Page 28
City of Oroville
Statement of Net Position
June 30, 2014
BusinessType
Activities
Governmental
Activities
ASSETS
Current Assets:
Cash and investments
Restricted cash and investments
Receivables
Oroville Successor Agency receivable
Inventory
Total Current Assets
$ 19,139,040
1,950,948
1,749,478
845,000
85,613
23,770,079
$
Noncurrent Assets:
Oroville Successor Agency noncurrent receivable
Loans receivable
Real property held for resale
Capital Assets:
Nondepreciable
Depreciable, net of accumulated depreciation
Total Capital Assets
Total Noncurrent Assets
Total Assets
6,718,869
29,626,019
36,344,888
97,698,565
$ 121,468,644
$
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge for Pension Obligations
Total Deferred Outflows of Resources
$
4,066,542
4,066,542
$
21,590,000
37,844,862
1,918,815
LIABILITIES
Current Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Interest payable
Unearned revenues
Claims payable
Long-term obligations - due within one year
Total Current Liabilities
$
Noncurrent Liabilities:
Long-term obligations - due in more than one year
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted for:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Housing and Community Development
Debt service
Total Restricted
Unrestricted
Total Net Position
292,213
252,777
91,222
575,000
39,024,555
306,087
1,375,508
41,917,362
-
$
-
898
898
$
898
$ 13,298,388
$
-
672,198
85,731
3,758,454
101,147
931,675
3,843,574
24,483,219
33,876,457
7,618,914
$ 54,793,759
Page 29
423,181
28,824,065
$ 70,741,427
459
The accompanying notes are an integral part of these financial statements.
398,667
24,514
423,181
-
$
422,283
422,283
City of Oroville
Statement of Activities
For the Year Ended June 30, 2014
Program Revenues
Functions/Programs
Primary Government:
Governmental Activities:
General Government
Public Safety
Public Works
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Interest and fiscal charges
Total Governmental Activities
Business-Type Activities:
Local Transportation
Total Business-Type Activities
Expenses
$
$
2,571,905
7,776,039
1,266,059
638,448
1,226,718
592,427
1,493,462
3,512,865
1,965,879
21,043,802
$
488,493
488,493
Operating
Grants and
Contributions
Charges for
Services
$
$
1,044,339
586,558
90,817
168,645
126,747
292,342
2,759,432
1,346,634
6,415,514
$
8,328
8,328
$
$
173,816
600,885
270,690
339,113
3,456
1,575,545
2,963,505
$
575,078
575,078
Net (Expense) Revenue and Change in Net Position
Capital
Grants and
Contributions
$
$
$
56,698
1,224,077
1,280,775
-
Governmental
Activities
Total
$
$
1,218,155
1,187,443
90,817
496,033
465,860
1,516,419
2,762,888
2,922,179
10,659,794
$
583,406
583,406
$
General Revenues:
Taxes:
Property taxes
Sales and use taxes
Sales and use taxes in-lieu
Transient occupancy taxes
Utility users taxes
Franchise taxes
Other taxes
Total taxes
Investment earnings
Other revenues
Transfers
Total General Revenues
Change in Net Position
Net Position - Beginning of Year
Prior Period Adjustments
Net Position - Beginning of Year, As Adjusted
Net Position - End of Year
$
The accompanying notes are an integral part of these financial statements.
Page 30
Business-Type
Activities
(1,353,750)
(6,588,596)
(1,175,242)
(142,415)
(760,858)
923,992
1,269,426
(590,686)
(1,965,879)
(10,384,008)
Total
$
(1,353,750)
(6,588,596)
(1,175,242)
(142,415)
(760,858)
923,992
1,269,426
(590,686)
(1,965,879)
(10,384,008)
94,913
94,913
94,913
94,913
1,605,675
3,045,776
2,053,454
426,190
1,594,686
513,879
326,716
9,566,376
296,696
738,796
434,055
11,035,923
307
91,000
91,307
1,605,675
3,045,776
2,053,454
426,190
1,594,686
513,879
326,716
9,566,376
297,003
738,796
525,055
11,127,230
651,915
186,220
838,135
54,074,271
67,573
54,141,844
236,063
236,063
54,310,334
67,573
54,377,907
54,793,759
$
422,283
$
55,216,042
City of Oroville
Balance Sheet
Governmental Funds
June 30, 2014
Major Funds
General
Fund
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Taxes
Accounts
Sewer service charges
Interest
Due from other funds
Inventory
Loans receivable
Advances to other funds
Due from Oroville Successor Agency
Real property held for resale
Total assets
$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Advances from other funds
Total liabilities
Fund Balances:
Nonspendable
Interfund
Inventory
Due from Oroville Successor Agency
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Housing and Community Development
Debt service
Committed:
General Government
Health and Sanitation
Housing and Community Development
Future salaries and benefits
General reserve
Other commitments
Assigned:
Budgetary carryovers
General Government
Parks and Leisure
Health and Sanitation
Housing and Community Development
Debt service
Unassigned
Total fund balances
Total liabilities and fund balances
$
Housing
Program
Fund
Sewer
Fund
$
972,535
-
First Time
Home Buyer
Grant
Fund
$
631,980
-
Community
Development
Block Grant
Fund
1,582,891
-
$ 3,409,766
-
633,157
853,404
11,707
461,262
32,594
711,515
4,286,530
16,949
138,816
3,565,531
5,970
6,303,887
1,207,300
8,489,692
15,414,716
16,046,696
28
8,623,506
10,744,092
140,641
160,661
997,315
138,816
1,437,433
1,243
9,046
10,289
746
7,394,483
7,395,229
15,414,716
15,414,716
48,922
1,634
800
8,575,145
8,626,501
$
2,120,558
-
32,594
-
-
-
-
-
-
-
-
-
-
-
-
1,300
800,000
113,750
250,354
23,455
663,426
8,037
-
20,463
1,607,181
2,849,097
4,286,530
2,882,348
1,431
3,555,242
$ 3,565,531
1,094,003
460
1,094,463
$ 8,489,692
The accompanying notes are an integral part of these financial statements.
Page 31
631,980
631,980
$ 16,046,696
Oroville
Public
Financing
Authority
Fund
$
Total
Governmental
Funds
$
9,482,239
1,950,948
$ 18,222,471
1,950,948
151,563
76,700
29,154
4,012
8,090,662
19,785,278
633,157
1,004,967
16,949
94,405
490,416
36,606
38,432,771
138,816
22,435,000
1,918,815
85,375,321
65,487
20,799
90,004
449,889
8,101,777
8,727,956
257,039
192,140
90,804
449,889
40,483,436
138,816
41,612,124
29,154
4,012
-
29,154
36,606
22,435,000
-
459
459
-
672,198
85,731
3,758,454
101,147
931,675
2,025,717
672,198
85,731
3,758,454
101,147
931,675
3,843,574
2,025,717
-
918,535
2,382,196
62,346
-
919,835
1,463,426
2,382,196
113,750
320,737
23,455
22,502
22,435,000
22,457,502
-
22,435,000
2,117,591
2,117,591
$ 10,744,092
Other
Governmental
Funds
$
22,484
18
22,457,502
22,457,502
20,463
19,243
19,243
406,009
406,009
2,882,348
31,907
31,907
36,328
58,812
(407,789)
1,201,301
11,057,322
43,763,197
$ 19,785,278 $ 85,375,321
City of Oroville
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2014
Total Fund Balances - Total Governmental Funds
$
43,763,197
Amounts reported for governmental activities in the statement of net position were
different because:
Capital assets used in governmental activities were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet. The capital assets were
adjusted as follows:
Capital assets
Less: accumulated depreciation
Total Capital Assets
84,235,407
(47,890,519)
36,344,888
Interest payable on long-term debt did not require current financial resources. Therefore,
interest payable was not reported as a liability in Governmental Funds Balance Sheet.
(575,000)
Internal service funds are used by management to charge the costs of stores,
vehicle maintenance and various insurance costs to individual funds. The assets and
liabilities of the internal service funds are included in the governmental activities in
the statement of net position.
522,733
Certain prepaid expenses were reported as expenditures when incurred in the funds
but are capitalized and amortized in the statement of net position as follows:
Deferred charge for pension obligation
4,066,542
Liabilities were reported for certain revenues that were not available to pay current
period expenditures and were reported as unearned in the fund statements.
870,972
Long-term obligations were not due and payable in the current period. Therefore, they were not
reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted
as follows:
Bonds payable
USDA loan payable
Compensated absences
Net other postemployment benefit liability
Total Long-Term Obligations
Net Position of Governmental Activities
(28,180,000)
(611,500)
(582,030)
(826,043)
(30,199,573)
$
The accompanying notes are an integral part of these financial statements.
Page 32
54,793,759
City of Oroville
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
June 30, 2014
Major Funds
General
Fund
REVENUES
Taxes:
Property taxes
Sales and use taxes
Sales and use taxes in-lieu
Transient occupancy taxes
Utility users taxes
Franchise taxes
Other taxes
License and permits
Fines and forfeitures
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$ 1,605,675
3,045,776
2,119,368
426,190
1,594,686
513,879
66,612
390,568
85,734
25,869
117,282
340,267
148,727
10,480,633
Housing
Program
Fund
Sewer
Fund
$
4,748
2,702,571
19,617
2,726,936
$
52,619
6,407
288,326
347,352
First Time
Home Buyer
Grant
Fund
Community
Development
Block Grant
Fund
$
$
7,541
227,731
38,570
273,842
80,571
1,092,490
107,292
1,280,353
Oroville
Public
Financing
Authority
Redemption
Fund
$
1,081,652
1,081,652
Other
Governmental
Funds
Total
Governmental
Funds
$
$
`
260,104
167,510
332,439
3,608,037
185,788
1,039,651
5,593,529
1,605,675
3,045,776
2,119,368
426,190
1,594,686
513,879
326,716
558,078
85,734
1,585,439
5,045,540
3,235,033
1,642,183
21,784,297
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Debt service
Principal retirement
Interest and fiscal charges
Capital outlay
Total Expenditures
2,343,109
6,905,756
240,738
566,271
692,181
890
2,180,118
1,389,625
-
372,639
430,616
163
924,068
-
113,619
374,164
59,215
111,331
439,095
4,514
963,364
2,456,728
7,279,920
240,738
625,486
803,675
439,095
1,395,029
4,870,805
17,785
12,946,848
11,718
1,401,343
135,661
508,300
430,616
11,229
935,460
-
1,154,200
1,442,330
1,399,394
6,061,226
1,154,200
1,442,330
1,575,787
22,283,793
Excess (Deficiency) of Revenues over Expenditures
(2,466,215)
1,325,593
(160,948)
(156,774)
344,893
1,081,652
1
(168,837)
(168,836)
255,000
(84,267)
170,733
1,613,271
(727,417)
885,854
(1,918,775)
(1,918,775)
(329,784)
13,959
1,230,747
618,021
886,844
23,294,625
11,021,587
43,793,637
631,980
$ 2,117,591
$ 22,457,502
$ 11,057,322
$ 43,763,197
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
1,324,253
(23,735)
1,300,518
14,541
(318,411)
(303,870)
(1,165,697)
1,021,723
4,014,794
2,533,519
1,424,247
$ 2,849,097
$ 3,555,242
$ 1,094,463
The accompanying notes are an integral part of these financial statements.
Page 33
$
(837,123)
(467,697)
(499,496)
3,692,129
(3,188,697)
503,432
6,899,195
(6,430,139)
469,056
35,735
(30,440)
City of Oroville
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government-Wide
Statement of Activities
For the Year Ended June 30, 2014
Net Change in Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Activities and Changes
in net position were different because:
$
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide
Statement of Activities and Changes in net position, the cost of those assets was allocated over
their estimated useful lives as depreciation expense.
Capital outlay
Depreciation expense
(30,440)
1,640,682
(2,114,889)
Internal service funds are used by management to charge the costs of stores,
vehicle maintenance, and various insurance costs to individual funds. The net revenue
or (excess expenses) of the internal service funds is reported with government activities.
(130,321)
Certain revenues were not recorded or recorded as unearned revenue in the governmental funds
because they did not meet the revenue recognition criteria of availability. However, they were
included as revenue in the Government-Wide Statement of Activities under the full accrual basis.
805,058
Long-term compensated absences and claims payables were reported in the Government-Wide
Statement of Activities, but they did not require the use of current financial resources and were not
reported as expenditures in governmental funds.
Compensated absences
374,765
Repayment of bond principal was an expenditure in governmental funds, but the repayment
reduced long-term liabilities in the Government-Wide Statement of net position.
Bonds
USDA loan
1,135,000
19,200
Certain expenses reported in the statement of activities do not require the use of current
financial resources and are not reported as expenditures in the fund statements as follows:
Other postemployment benefits
Amortization of bond discounts
Amortization of bond premiums
Amortization of bond refunding loss
Amortization of prepaid pension obligation
(237,715)
(81,198)
129,806
(171,323)
(415,690)
Interest expense on long-term debt was reported in the Government-Wide Statement of
Activities and Changes in net position, but it did not require the use of current financial
resources. Therefore, interest expense was not reported as expenditures in governmental
funds. The following amount represented the change in accrued interest from prior year.
(271,020)
Change in Net Position of Governmental Activities
The accompanying notes are an integral part of these financial statements.
Page 34
$
651,915
City of Oroville
Statement of Net Position
Proprietary Funds
June 30, 2014
Business-type
Activities
Enterprise Fund
Local
Transportation
Fund
ASSETS
Current assets:
Cash and investments
Accounts receivable
Inventory
Total assets
$
398,667
24,514
423,181
$
$
$
898
898
$
35,174
60,637
418
40,527
306,087
442,843
$
$
422,283
422,283
$
$
522,733
522,733
$
LIABILITIES
Current liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Claims payable
Total liabilities
$
NET POSITION
Unrestricted
Total net position
The accompanying notes are an integral part of these financial statements.
Page 35
Governmental
Activities Internal
Service Funds
$
916,569
49,007
965,576
City of Oroville
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2014
Business-type
Activities
Enterprise Fund
Local
Transportation
Fund
OPERATING REVENUES
Passenger fares
Charges for services
Reimbursements
Total operating revenues
$
OPERATING EXPENSES
Salaries and benefits
Supplies
Other services and charges
Claims
Total operating expenses
8,328
8,328
Governmental
Activities Internal
Service Funds
$
859,627
859,627
488,493
488,493
153,001
295,479
33,830
474,010
956,320
(480,165)
(96,693)
NONOPERATING REVENUES(EXPENSES)
Local transportation tax
Investment earnings
Total nonoperating revenues(expenses)
575,078
307
575,385
1,373
1,373
Income (loss) before operating transfers
95,220
(95,320)
Transfers in
Transfers out
Change in net position
91,000
186,220
(35,001)
(130,321)
Total net position - beginning
Prior period adjustment
Total net position - beginning , as adjusted
236,063
236,063
585,481
67,573
653,054
Operating income (loss)
Total net position - ending
$
The accompanying notes are an integral part of these financial statements.
Page 36
422,283
$
522,733
City of Oroville
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2014
Business-type
Activities
Enterprise Fund
Local
Transportation
Fund
Cash flows from operating activities:
Receipts from customers and users
Receipts from interfund services provided
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
$
Cash flows from noncapital financing activities:
Local transportation tax
Interfund transactions
Net cash provided (used) by noncapital financing activities
8,328
(488,570)
(480,242)
Governmental
Activities Internal
Service Funds
$
556,935
91,000
647,935
953,174
(832,218)
(152,477)
(31,521)
(35,001)
(35,001)
Cash flows from investing activities:
Investment income
Net cash provided (used) by investing activities
307
307
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
$
168,000
230,667
398,667
$
(65,149)
981,718
916,569
$
(480,165)
$
(96,693)
Reconciliation of operating income to net cash provided (used)
by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Prior period adjustments
Change in operating assets and liabilities:
Accounts receivables
Inventory
Accounts payable
Payroll related liabilities
Other payables and accruals
Interfund receivables and payables
Claims payable
Net cash provided (used) by operating activities
The accompanying notes are an integral part of these financial statements.
Page 37
1,373
1,373
-
67,573
(77)
-
$
(480,242)
$
607
(1)
(182)
25,056
40,527
(68,408)
(31,521)
City of Oroville
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2014
Oroville
Successor
Agency
Private-Purpose
Trust
Funds
ASSETS
Cash and investments
Receivables:
Taxes
Accounts
Grants
Interest
Real property held for resale
Loans receivable
Capital Assets:
Non-depreciable
Depreciable, net of accumulated depreciation
Total assets
LIABILITIES
Accounts payable
Payroll related liabilities
Other payables and accruals
Deposits payable
Due to other agencies
Unearned revenues
Accrued interest
Due to Oroville Public Financing Authority
Total liabilities
$
$
5,299,988
8,930
362
196,076
239,306
1,485,232
414,471
7,644,365
$
1,386
1,765
8,889
1,183
425,322
524,000
22,435,000
$ 23,397,545
LIABILITIES
Held in trust
$ (15,753,180)
The accompanying notes are an integral part of these financial statements.
Page 38
Agency
Funds
$ 496,672
19
$ 496,691
$
11,704
279,035
205,952
$ 496,691
City of Oroville
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Funds
For the Year Ended June 30, 2014
Oroville
Successor
Agency
Private-Purpose
Trust
Funds
ADDITIONS
Redevelopment property tax trust fund allocations
Intergovernmental
Loan collections
Investment earnings
Total additions
DEDUCTIONS
Administrative
Blight removal
Other agencies
Levee project
Brownsfield assessment
Loan interest and fiscal charges
Depreciation
Transfers out
Total deductions
$
1,991,739
401,110
58,411
41,940
2,493,200
79,832
5,280
44,481
1,080
6,500
1,365,548
25,107
525,055
2,052,883
Change in net position
440,317
Total net position - beginning
(16,193,497)
Total net position - ending
$ (15,753,180)
The accompanying notes are an integral part of these financial statements.
Page 39
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Oroville, California, (the City) have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.
The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles. The more significant of the
City's accounting policies are described below.
A. Financial Reporting Entity
The City of Oroville was incorporated January 3, 1906 under the applicable laws and regulations of the
State of California. The City operates under a Council-Administrator form of government and provides
the following services as authorized by its charter: public safety (police, fire and code enforcement),
streets and highways, sanitation, health and social services, cultural-recreation, public improvements
planning and zoning, and general administrative services.
As required by GAAP, these basic financial statements present the City and its component units, entities
for which the City is considered to be financially accountable. The City Council acts as the governing
board. In addition, the City staff performs all administrative and accounting functions for these entities
and these entities provide their services entirely to the City. Blended component units, although legally
separate entities are, in substance, part of the City's operations and data from these units are combined
with data of the City. Discretely presented component units, on the other hand, are reported in a separate
column in the government-wide financial statements to emphasize their legal separateness from the City.
Each blended component unit has a June 30 year-end. The City had no discretely presented component
units.
Oroville Successor Agency (OSA)
The City has elected to serve as the successor agency of the Oroville Redevelopment Agency, which
formerly was a blended component unit of the City. In its capacity as the Successor Agency, the City will
be responsible to wind-up the affairs of the former RDA, and dispose of the RDA’s assets in compliance
with State legislative requirements. The OSA is governed by a seven (7) member Oversight Board
comprised of one (1) Oroville City Council member, (1) City employee, and members appointed by the
Butte County Board of Supervisors (2), the Superintendent of the Butte County Office of Education (1),
the Feather River Recreation and Parks Board (1), the Chancellor of the California Community College
System (1). Activities of the OSA are reported as a private-purpose trust fund in the accompanying
financial statements.
The following entity is reported as blended component unit:
The Oroville Public Financing Authority (Authority)
The Authority was established on January 21, 1992 and is a joint powers authority created by the City of
Oroville. The Authority was formed, organized and is existing pursuant to the provisions of Articles 1
through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California
Government Code (Mark-Roos Local Bond Pooling Act of 1985). The City and Authority are legally
separate entities. For financial reporting purposes, the Authority is reported as if a part of the City's
operations because the seven (7) members of the Oroville City Council also act as the governing body of
the Authority and the purpose of the Authority is to assist in the financing of public capital improvements.
The Authority does not prepare separate, stand-alone financial statements.
Page 40
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual funds based upon
the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of
Activities and Changes in Net Position. These statements present summaries of governmental and
business-type activities for the City. Fiduciary activities of the City are not included in these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for
support.
These statements are presented on an "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred
inflows of resources (including capital assets, as well as infrastructure assets, and long-term liabilities),
are included in the accompanying Statement of Net Position. The Statement of Activities presents changes
in net position. Under the accrual basis of accounting, revenues are recognized in the period in which
they are earned while expenses are recognized in the period in which the liability is incurred. The
Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. In conformity with the City’s indirect cost allocation plan, certain indirect costs are
included in the program expense reported for individual functions and activities.
Certain types of transactions are reported as program revenues for the City in three categories:



Charges for services
Operating grants and contributions
Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the fiduciary funds are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables, and receivables. All internal balances in the Statement of Net Position have been
eliminated. The following interfund activities have been eliminated:


Transfers in/Transfers out
Internal Service Fund charges
Page 41
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net
position as presented in these statements to the net position presented in the government-wide financial
statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows
of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The
Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to
60 days after year-end) are recognized when due. The primary revenue sources, which have been treated
as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental
revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures,
licenses and permits and parking meter revenues are not susceptible to accrual because they are usually
not measurable until received in cash. Expenditures are recorded in the accounting period in which the
related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available"
criteria for recognition in the current period. Unearned revenues also arise when the government receives
resources before it has a legal claim to them, as when grant monies are received prior to incurring
qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when
the government has a legal claim to the resources, the unearned revenue is removed from the combined
balance sheet and revenue is recognized.
The following funds are major funds:
General Fund
The General Fund is used to account for all of the general resources of the City not specifically levied or
collected for other City funds and the related expenditures. The General Fund accounts for all financial
resources of the City which are not accounted for in another fund.
Sewer Fund
This special revenue is used to account for the activities related the City’s sewage collection system and
the collection and remission of fees on behalf of SC-OR for sewage treatment. The revenues of this fund
principally consist of fees charged to customers connected to the sewer system.
Housing Program Fund
This special revenue fund accounts for the administration and operation of the City’s low and moderate
income housing program subsequent to the dissolution of the former Oroville Redevelopment Agency.
Principal revenues consist of payments received from loans extended to low and moderate income
housing citizens and the proceeds from the sale of housing properties.
Page 42
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
First Time Home Buyer Grant Fund
This special revenue fund accounts for the loan and administrative activity of the City’s first time home
buyers program. Revenues are primarily proceeds from the Federal and State HOME Investment
Partnership grant programs.
Community Development Block Grant Fund
This special revenue fund was established to account for amounts received from Community
Development Block Grants and for the loan and administrative activities of the City’s various CDBG
grants.
Oroville Public Financing Authority Fund
This special revenue fund accounts for the activities related to financing public capital improvements.
Revenues consist of loan payments received from the Oroville Successor Agency.
Additionally, the City reports the following nonmajor fund types of governmental funds:
Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted,
committed or assigned to specific purposes other than debt service or capital projects.
Debt Service Funds
Debt service funds account for the accumulation of resources for, and payment on, long-term obligation
debt principal and interest.
Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned
to expenditure for capital outlays, including the acquisition or construction of capital facilities and other
capital assets in governmental funds.
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when the related goods or
services are delivered. In the fund financial statements, proprietary funds are presented using the
“economic resources measurement focus”. This means all assets, deferred outflows of resources,
liabilities (whether current or noncurrent) and deferred inflows of resources associated with their
activities are included on their balance sheets. Proprietary fund type operating statements present
increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and
investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire
capital assets are capitalized as assets in the internal service funds financial statements.
The City has only one enterprise fund that has been reported as a major proprietary fund as follows:
Local Transportation Fund
The Local Transportation Fund is used to account for the operations of the Oro Express subsidized taxi
Page 43
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
service and the City’s share of revenues and expenses for the Butte County Transit and Oroville Area
Transit in accordance with the Transportation Development Act of the State of California.
The City’s internal service funds are proprietary funds. Internal service funds account for charges to City
departments for services provided, on a cost reimbursement basis, in the following areas: payroll
revolving activity, stores (purchasing), vehicle maintenance, workers’ compensation, unemployment
insurance and vision insurance services
Fiduciary Fund Financial Statements
Private-Purpose Trust Fund
The Private-Purpose Trust Fund accounts for the activities of the City acting as the Successor Agency to
the Oroville Redevelopment Agency.
Agency Funds
Agency funds are used by the City to report resources held by the City in a custodial capacity for the
Feather River Bluffs assessment district, special deposits trust, BINTF Trust, and Honor Grove. These
funds are used to record the receipt, temporary investment and remittance of fiduciary resources to
individuals, private organizations or other governments.
C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of
three months or less from the date of acquisition. Cash and cash equivalents are combined with
investments and displayed as Cash and Investments.
Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and
Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if
applicable, for Deposits and Investment Risks in the following areas:



Interest Rate Risk
Credit Risk
▬ Overall
▬ Custodial Credit Risk
▬ Concentrations of Credit Risk
Foreign Currency Risk
Other disclosures are specified including use of certain methods to present deposits and investments,
highly sensitive investments, credit quality at year-end and other disclosures.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset
Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State
of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed
Securities are subject to market risk as to change in interest rates.
D. Inventory
Inventory is valued at the lower of cost (first-in, first-out) or market. Inventory in the General and Airport
Page 44
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
funds includes materials, parts and supplies held for outdoor lighting for streets and runways. Inventory
in the Stores Revolving Fund consists of expendable supplies held for consumption. Inventory in the
Vehicle Maintenance Fund consists of expendable supplies for vehicle repair and maintenance. The cost
is charged to the individual departments and funds as inventories are disbursed. Inventories are
reconciled, and expenditures are distributed, on a quarterly basis.
E. Interfund Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as “advances to/advances from other funds”. All other outstanding
balances between funds are reported as “due to/from other funds”.
F. Receivables
Included in the amount reported for receivables was $285,800 in fees and penalties assessed by the City
for violations of the Oroville City Code. It is the City’s policy to defer revenue recognition of these fees
and penalties until the amounts have actually been collected in cash. Therefore, a liability has been
recorded for the entire amount.
No allowance for uncollectible accounts receivable has been provided as management has determined that
uncollectible accounts have historically been immaterial and the direct write-off method does not result in
a material difference from the allowance method.
G. Due from Oroville Successor Agency
As discussed in the Long-Term Debt note, the Oroville Public Financing Authority (OPFA) made loans to
the Oroville Successor Agency (formerly the Oroville Redevelopment Agency). Loan payments received
by the OPFA are required to be used for debt service payments on bonds issued by the OPFA. The total
amount due from the OSA at June 30, 2014 was $22,435,000.
H. Loans Receivable
Under the Community Development Block Grant (CDBG) Loan Program and Home Investment
Partnerships (HOME) Program, which are funded by the Department of Housing and Urban Development
through the State Department of Housing and Community Development (HCD), and the City's Revolving
Loan Program (RLF), loans are made to qualified individuals and businesses within prescribed project
areas for the purpose of housing acquisition, housing rehabilitation and/or economic development. The
majority of these loans are on a deferred payback program for 15 years or upon transfer of title. In
accordance with accounting procedures prescribed by HCD, repayments of the outstanding loans are
classified as a revenue source in the Community Development Block Grant Fund, First Time Home
Buyers Fund and the City's various revolving loan funds. The long-term portion of loans receivable has
been offset by Unearned Revenues in the accompanying financial statements, as applicable.
I.
Advances
Advances between funds and due from/to other funds are offset by a nonspendable fund balance in
applicable Town funds to indicate the extent to which they are not available for appropriation and are not
expendable available financial resources.
Page 45
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
J.
Real Property Primarily Held for Resale
Under the terms of the loans granted by the City, several real properties have been acquired through
foreclosure proceedings. In addition the City has acquired and constructed homes for the purpose of
infilling the supply of low and moderate housing. These properties will be subsequently sold and the
proceeds placed back into the low and moderate income housing programs. Therefore, these properties
have been recorded as an asset on the accompanying financial statements at the lower of cost (the amount
of the unpaid loan plus costs for foreclosure properties) or market and fully offset by recognizing a
liability for unearned revenue.
K. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges,
sidewalks, and similar items) are reported in the governmental column in the governmental-wide financial
statements. The City’s business-type activity had no capital assets. The City defines capital assets as
assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of two
years. Capital assets are valued at cost where historical records are available and at an estimated historical
cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value
on the date received.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful
lives of the related fixed assets, as applicable.
Interest is capitalized on the construction or acquisition of major assets using debt proceeds. The amount
of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the
borrowing until completion of the project with interest earned on invested proceeds over the same period.
No interest was capitalized during the year ended June 30, 2014.
The City’s museums contain collections of historical artifacts including antique tools, Chinese artifacts
and artwork, and relics from the region’s past. These collections are protected, cared for and preserved by
the City for the purpose of public exhibition; and proceeds from the sale of any item, if any, are used to
acquire additional items for the collection. Therefore, the City has elected not to capitalize these
collections.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Land improvements
Buildings
Underground collection system
Machinery and equipment
Infrastructure
15 – 50 Years
20 – 50 Years
30 – 60 Years
5 – 20 Years
15 – 50 Years
L. Deferred Outflows/Deferred Inflows
Deferred outflows of resources is a consumption of net assets by the City that is applicable to a future
reporting period; for example, prepaid items and deferred charges.
Page 46
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
Deferred inflows of resources is an acquisition of net assets by the City that is applicable to a future
reporting period; for example, unearned revenue and advance collections.
The City is a member of the California Public Employees’ Retirement System (PERS). In fiscal year
2006/07, the City issued $7,260,000 in Pension Obligation Bonds in order to pay the City’s unfunded
actuarial accrued liability with PERS. The payment to PERS is a deferred charge reported as a deferred
outflow of resources in the government-wide financial statement and is being amortized on a straight-line
basis over the 17 year life of the bonds.
M. Interest Payable
In the government-wide financial statements, interest payable of long-term debt is recognized as an
incurred liability for governmental fund types. The City has not allocated the interest on long-term debt
to departments.
In the fund financial statements, governmental fund types do not recognize the interest payable when the
liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.
N. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for workers'
compensation claims. The estimated liability for workers' compensation claims a include "incurred but
not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities.
O. Compensated Absences
In the government-wide and proprietary fund financial statements, compensated absences are recorded as
incurred and the related expenses and liabilities are reported.
In the fund financial statements, compensated absences are recorded as expenditures in the years paid, as
it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources,
rather than currently available financial resources. Only the amounts which become due at June 30 are
reported in the fund financial statements as a liability.
Unused vacation benefits (up to a maximum of 2 years earned benefits) are paid to employees upon
termination. Unused sick leave benefits do not vest with the employee and, except as explained below,
are lost upon termination. Therefore, unused sick leave benefits have not been accrued. Under the Fair
Labor Standards Act (FLSA), safety employees (Police and Fire) may accrue up to 240 hours of
compensatory time and general employees may accrue a maximum of 120 hours of compensatory time.
Unused compensatory time is compensated for upon termination. Note: Appointed officials and
"administrative" employees are exempt from coverage under FLSA.
The City permits retiring employees to convert accumulated sick leave benefits to purchase continued
medical insurance coverage based upon the leave dollar value at the time of retirement. The City does not
provide any additional postemployment benefits for its employees, except for the Public Employees
Retirement System administered by the State of California.
Page 47
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
P. Long-Term Obligations
In the government-wide financial statements and proprietary fund statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental or business-type activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line
method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs
are expensed in year incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financial sources. Premiums received on debt issuance are reported as other financing sources while
discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, are reported as debt service expenditures.
Q. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and
Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:
Nonspendable
Nonspensable fund balance includes fund balance amounts that cannot be spent either because it is not in
spendable form or because of legal or contractual constraints.
Restricted
Restricted fund balance includes fund balance amounts that are constrained for specific purposes which
are externally imposed by providers, such as creditors or amounts constrained due to constitutional
provisions or enabling legislation.
Commited
Committed fund balance includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision making
authority and does not lapse at year-end. Committed fund balances are imposed by the City Council.
Assigned
Assigned fund balance includes fund balance amounts that are intended to be used for specific purposes
that are neither considered restricted or committed. Fund balance may be assigned by the City
Administrator or the Finance Director.
Unassigned
The Unassigned Fund Balance category represents fund balance which may be held for specific types of
uses or stabilization purposes, but is not yet directed to be used for a specific purpose
The detail of amounts reported for each of the above defined fund balance categories is reported in the
governmental funds balance sheet and in the combining nonmajor fund balance sheets.
Page 48
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is
available, the City considers restricted funds to be spent first. When expenditures are incurred for which
committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent
first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City
Council has directed otherwise.
Deficit Fund Balances
The City reported deficit fund balances four special revenue funds totaling $155,234 and one debt service
fund totaling $252,555. The deficit fund balances are expected to be eliminated through future grant
revenues and interfund transfers. Management will continue to monitor the activities within these funds.
R. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt
that attributed to the acquisition, construction, or improvement of the assets. In addition, deferred
outflows of resources and deferred inflows of resources that are attributable to the acquisition,
construction, or improvement of those assets or related debt also are included in the net investment in
capital assets component of net position
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other
governments. Certain proceeds of the Oroville Public Financing Authority revenues bonds and the loan
receivable from the Oroville Successor Agency are reported as restricted net position because their use is
limited by applicable bond or other covenants.
Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or
"restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the
government-wide Statement of Net Position.
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are
available, the City's policy is to apply restricted net position first.
S. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as
appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially
made from it that are properly applicable to another fund are recorded as expenditures/expenses in the
reimbursed fund. All other interfund transactions, except for interfund services provided and used and
reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are
reported as residual equity transfers. All other interfund transfers are reported as transfers.
Page 49
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
T. Property Tax and Special Assessments
County tax assessments include secured and unsecured property taxes and special assessments.
"Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the
property being taxed.
Revenue is recognized in the period for which the tax and assessment is levied. The County of Butte
levies, bills and collects property taxes for the City, the County remits the entire amount levied and
handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes for the
current year were attached as an enforceable lien as of January 1st and were levied on July 1st. Taxes are
due in two equal installments on December 10th and April 10th.
U. Budgetary Information
Annually, the City legally adopts a budget for the general, special revenue, and capital projects funds.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. Bi-annually, in June, the City Administrator submits to the City Council a proposed operating budget
for the subsequent fiscal year commencing July 1st and a financing plan for the second subsequent
year. Both the operating budget and financing plan include proposed expenditures and the means of
financing them.
2. Public hearings are conducted at City Hall to obtain taxpayer comments.
3. By the first Council meeting in July, and after adjustment as appropriate by the City Council, the
operating budget is legally enacted through Council motion. The City's charter requires adoption of
an annual budget; therefore, the financing plan is formally adopted as the operating budget at the
beginning of the second fiscal year.
4. Formal budgetary integration is employed as a management control device during the year for the
general fund, special revenue funds and capital projects funds as well as the Local Transportation,
Stores Revolving, Vehicle Maintenance, Workers' Compensation, Unemployment and Vision
Insurance funds. Formal budgetary integration is not employed for Debt Service Funds because
effective budgetary control is alternatively achieved through various bond indenture provisions.
These budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP), accordingly, actual revenues and expenditures can be compared with related budgeted
amounts without any significant reconciling items.
V. Excess of Expenditures over Appropriations
Expenditures did not exceed budget in any fund for which there was a legally appropriated budget for the
year ended June 30, 2014.
W. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are
recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is
employed as an extension of formal budgetary integration in all funds. All appropriations and
encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the
Page 50
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
executory contract is expected in the next year) are re-appropriated and become part of the subsequent
year’s budget pursuant to state regulations.
X. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.
Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows
from unearned revenue. In the governmental fund financial statements, receivables associated with nonexchange transactions that will not be collected within the availability period have been recorded as
deferred inflows from unearned revenue.
Y. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
Z. Subsequent Events
Management has considered subsequent events through December 18, 2014, the date which the financial
statements were available to be issued. The financial statements include all events or transactions,
including estimates, required to be recognized in accordance with generally accepted accounting
principles. Management has determined that there are no non-recognized subsequent events that require
additional disclosure.
AA. New GASB Pronouncements
Statement No. 68 - In June, 2013, GASB issued Statement No. 68, Accounting and Financial Reporting
for Pensions – an amendment of GASB Statement No. 27. The primary objective of this Statement is to
improve accounting and financial reporting by state and local governments for pensions. It also improves
information provided by state and local government employers about financial support for pensions that is
provided by other entities. The City is in the process of determining the impact this statement will have
on the financial statements.
Statement No. 69 – In January, 2013, GASB issued Statement No. 69, Government Combinations and
Disposal of Government Operations. This Statement establishes accounting and financial reporting
standards related to government combinations and disposal of government operations. As used in this
Statement, combinations includes a variety of transactions referred to as mergers, acquisitions, and
transfers of operations. The City believes there will be no financial statement effect related to this
Statement.
Statement No. 70 – In April, 2013, GASB issued Statement No 70, Accounting and Financial Reporting
for Nonexchange Financial Guarantees. Some governments extend financial guarantees for the
obligations of another government, a not-for-profit entity, or private entity without directly receiving
equal or approximately equal value in exchange (a nonexchange transaction). The City does not
participate in nonexchange transactions and this Statement will have no financial statement effect.
Page 51
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2014, cash and investments were reported in the financial statements as follows:
Cash and investments
Restricted cash with fiscal agent
Total cash and investments
Statement of Net Position
Governmental
Business-Type
Activities
Activities
$
19,139,040 $
398,667
1,950,948
$
21,089,988 $
398,667
Statement
of Fiduciary
Net Position
$
5,796,660
$
5,796,660
Total
Cash and
Investments
$ 25,334,367
1,950,948
$ 27,285,315
The City's Cash and Investments consisted of the following as of June 30, 2014:
Petty cash
Deposits with banks
Investments
Total cash and investments
$
$
1,117
2,282,242
25,001,956
27,285,315
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure
the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in
this manner shall have the effect of perfecting a security interest, and places the City ahead of general
creditors of the institution.
The market value of pledged securities must equal at least 110 percent of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes
that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral
requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance
Corporation (FDIC).
The bank balances before reconciling items totaled $2,564,968 at June 30, 2014 and were different from
carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was
$2,314,968 which was collateralized by securities held by pledging financial institutions.
B. Investment Policies
City Investment Policy
Under the provisions of the City's investment policy, and in accordance with California Government
Code, the following investments are authorized:
Authorized Investment Type
U.S. Government Obligations
U.S. Agency Obligations
Time certificates of deposit
Local Agency Investment Fund
Repurchase agreements
Pass book savings account demand deposits
Money Market/Mutual Funds
Bankers Acceptance
Maximum
Maturity (1)
Maximum
Total of
Portfolio
Maximum
Investment in
Anyone Issuer
3 years
3 years
1 year
N/A
10 days
N/A
3 years
180 days
No limit
50%
50%
$40 million
20%
50%
15%
30%
None
50%
$1,000,000
None
50%
$1,000,000
50%
50%
Page 52
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
The City is in compliance with GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investments Pools which requires the City's investments be recorded at fair
value instead of cost. Under GASB 31, the carrying value of investments are adjusted to reflect their fair
value at each fiscal year-end, with the effects of these adjustments included in the carrying value of the
investments.
Authorized Investments - Debt Trustee Agreements
Investments held by bond fiscal agents (trustees) are governed by the provisions of the underlying
indenture agreements rather than the general provisions of the City’s investment policy or California
Government Code. The indenture agreements do not specifically identify maximum maturity and
maximum investment provisions. The indenture agreements do identify the following permitted
investments:










U.S. Government Obligations
U.S. Agency Obligations
Money Market Funds (rated AAAm-G or AAAm )
Demand or Time Deposits (FDIC insured or fully secured)
Bonds or Notes (must have one of two highest ratings)
Bankers Acceptances (rated P1, A1, or A-1+)
Commercial Paper (rated P1 and A1)
Repurchase Agreements
Pre-refunded municipal obligations (highest rating category)
Local Agency Investment Fund
C. External Investment Pool
The City's investments with LAIF at June 30, 2014, include a portion of the pool funds invested in
Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon
rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded
forwards or options.
Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a
share of the cash flows from a pool of assets such as principal and interest repayments from a pool of
mortgages (such as CMO's) or credit card receivables.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in
accordance with State statute. The approved investments policy is listed on the LAIR website, located at
http://www.treasurer.ca.gov/pmia-laif/.
D. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to
Page 53
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
changes in market interest rates. The City’s investment policy requires that investments have an original
maturity date of less than three (3) years, unless the City Council specifically authorizes a longer term. It
is the City’s practice to manage its exposure to interest rate risk is by purchasing a combination of shorter
and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is
maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for City’s operations.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of an investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. The City’s investment policy requires time certificates of deposit and passbook
savings accounts to be insured or collateralized as described under “Custodial Credit Risk” below.
Repurchase agreements must be fully collateralized, and will only be with a primary dealer of the Federal
Reserve Bank having a long-term debt rating of “AAA” by Moody’s or Standard & Poors. The policy
does not establish minimum ratings for other authorized investments.
As of June 30, 2014, the City’s investments were in compliance with the ratings required by the City’s
investment policy and indenture agreements. Under the terms of the investment repurchase agreement
permitted securities must equal 103% of the amount deposited and be comprised of direct obligations or
unconditionally guaranteed by the U.S. Government; obligations, debentures, or notes issued by the
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association; or cash (100%
security ratio).
Concentrations of Credit Risk
With the exception of securities of the U.S. Government and LAIF, the investment policy of the City
limits the amount that can be invested in any one issuer to no more than 50% of the total portfolio, or
$1,000,000 for time certificates of deposit and passbook savings accounts. At June 30, 2014, the City had
no investments in any one issuer (other than U.S. Treasury securities, mutual funds and external
investment pools) that represented 5% or more of the total City investments.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City did not hold any securities through investment counterparties at
the year ended June 30, 2014.
As of June 30, 2014, the City’s investments had the following maturities and ratings:
Investment Type
Local Agency Investment Fund (LAIF)
Bank of America money market
Held by Bond Trustee:
Money market
Investment agreement
Total Investments
$
$
Fair
Value
22,971,644
79,364
1,438,477
512,471
25,001,956
Investment Maturities in Years
Less Than
One Year
Over 10
$ 22,971,644 $
79,364
-
$
1,438,477
24,489,485
Page 54
$
512,471
512,471
Year End Rating
Not
AAA/AAAm
Rated
$
$ 22,971,644
79,364
$
1,438,477
512,471
1,950,948
$
23,051,008
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 3 - FUND FINANCIAL STATEMENTS INTERFUND TRANSACTIONS
A. Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans
expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between
funds that are to be repaid in their entirety over several years. As of June 30, 2014, inter-fund receivables
and payables consisted of the following:
Fund
General Fund
Other nonmajor governmental funds
Internal service funds
Total Due from/to
Due from
Other Funds
$
461,262
29,154
$
490,416
Due to
Other Funds
$
449,889
40,527
$
490,416
Fund
General Fund
Sewer Fund
Total advances
Advances
to
Other Funds
$
138,816
$
138,816
Advances
from
Other Funds
$
138,816
$
138,816
B. Transfers In/Out
With Council approval resources may be transferred from one fund to another. Transfers routinely
reimburse funds that have made an expenditure on behalf of another fund. Transfers may also be made to
pay for capital projects or capital outlays, lease or debt service payments, operating expenses and low and
moderate-income housing projects. Transfers between funds during the fiscal year ended June 30, 2014
were as follows:
Fund
General Fund
Sewer Fund
Housing Program Fund
First Time Home Buyer Grant Fund
Community Development Block Grant Fund
Oroville Public Financing Authority Redemption Fund
Other nonmajor governmental funds
Local Transportation enterprise fund
Internal service funds
Private purpose trust funds
Total Transfers
Transfer in
1,324,253
14,541
1
255,000
1,613,271
3,692,129
91,000
$ 6,990,195
$
Page 55
Transfer out
$
23,735
318,411
168,837
84,267
727,417
1,918,775
3,188,697
35,001
525,055
$ 6,990,195
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 4 - LOANS RECEIVABLE
Loans receivable consisted of the following as of June 30, 2014:
Balance
June 30, 2013
Loans Receivable
Deferred Loans:
Housing Program
Home FTHB
CDBG
City HR RLF
Housing Rehabilitation RLF
Total Deferred Loans
$
4,299,666
153,690
4,853,803
1,076,840
55,592
10,439,591
Additions
$
394,066
3,681
90,463
18,246
1,420
507,876
Balance
June 30, 2014
Retirements
$
67,440
1,886
153,501
9,041
231,868
$
4,626,292
155,485
4,790,765
1,086,045
57,012
10,715,599
First-time Home Buyer Loans:
Housing Program
FTHB
CDBG
City HR RLF
CDBG Housing
Home Housing
Total First-time Home Buyer Loans
1,703,878
14,533,810
2,983,536
113,503
800,115
2,714,875
22,849,717
28,240
769,357
858,110
5,000
3,550
42,707
1,706,964
164,344
43,936
35,986
244,266
1,567,774
15,259,231
3,805,660
118,503
803,665
2,757,582
24,312,415
Revolving Loans:
CDBG
EDBG
OSA
RDA Housing
City HR RLF
CDBG Economic Development RLF
City RLF
Total Revolving Loans
Other Loans
Total Loans Receivable
36,627
2,838,748
302,712
141,479
459,938
85,287
49,274
3,914,065
37,203,373
$
245,000
245,000
2,253
2,462,093
9,545
321,673
63,407
31,658
70,769
20,203
517,255
993,389
27,082
2,762,075
239,305
109,821
389,169
65,084
49,274
3,641,810
2,253
38,672,077
$
6,303,887
15,414,716
8,623,506
8,090,662
239,306
38,672,077
Loans Receivable by Fund/Fund Type:
Housing Program Fund
First Time Home Buyer Grant Fund
Community Development Block Grant Fund
Other Nonmajor Governmental Funds
OSA Private Purpose Trust Fund
Total Loans Receivable
$
Page 56
$
$
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 5 - CAPITAL ASSETS
Capital assets consisted of the following as of June 30, 2014:
Balance
July 1, 2013
Governmental activities:
Nondepreciable Capital Assets:
Land
Construction in progress
Total nondepreciable capital assets
Depreciable capital assets:
Land improvements
Buildings
Underground collection system
Machinery and equipment
Infrastructure
Total depreciable capital assets
Accumulated depreciation:
Land improvements
Buildings
Underground collection system
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total depreciable capital assets - net
Governmental activities capital assets, net
$
5,982,029
736,840
6,718,869
Additions
$
1,127,125
1,127,125
Retirements
$
(1,127,125)
(1,127,125)
Balance
June 30, 2014
$
5,982,029
736,840
6,718,869
9,625,707
11,406,234
4,974,607
9,502,866
40,366,442
75,875,856
1,150,265
155,469
334,948
1,640,682
-
10,775,972
11,561,703
4,974,607
9,837,814
40,366,442
77,516,538
(4,061,958)
(3,437,922)
(2,924,650)
(6,116,519)
(29,234,581)
(45,775,630)
30,100,226
(427,906)
(240,491)
(71,724)
(475,037)
(899,731)
(2,114,889)
(474,207)
-
(4,489,864)
(3,678,413)
(2,996,374)
(6,591,556)
(30,134,312)
(47,890,519)
29,626,019
$ 36,819,095
$
652,918
Depreciation expense was charged to the following functions in the statement of activities:
General Government
Public Safety
Public Works
Parks and Leisure
Health and Sanitation
Transportation
Total Depreciation Expense
$
66,299
356,182
1,052,632
419,253
71,724
148,799
$ 2,114,889
Page 57
$ (1,127,125)
$
36,344,888
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 6 - LONG-TERM OBLIGATIONS
The City's long-term obligations consisted of the following as of June 30, 2014:
Description
Bonds Payable
USDA COP Loan
Net OPEB obligation
Compensated absences
Total Long-Term Liabilities
Balance
June 30, 2013
$ 29,363,608
630,700
588,327
956,794
$ 31,539,429
Additions
$
299,920
624,013
$
923,933
Retirements
$ 1,183,608
19,200
62,204
998,777
$ 2,263,789
Balance
June 30, 2014
$ 28,180,000
611,500
826,043
582,030
$ 30,199,573
Due Within
One Year
$ 1,210,000
20,000
145,508
$ 1,375,508
Compensated absences and the net OPEB obligation are generally liquidated by the General Fund.
A. Bonds Payable
The following is a summary of the City’s bonds payable as of June 30, 2014:
Interest
Rate
Bonds Payable
Oroville Public Financing Authority Revenue Bonds:
2002 OPFA Revenue Bonds
2.50-4.78%
2004A OPFA Revenue Bonds
4.25-5.05%
2004B OPFA Revenue Bonds
4.25-5.55%
Subtotal OPFA Revenue Bonds
Pension Obligation Bonds
Unamortized Discounts and Premiums - Net
Total Bonds Payable
5.06-5.37%
Maturity
Date
2031
2032
2017
2024
Original
Issue
Beginning
Balance
Additions
$ 18,255,000 $ 13,725,000 $
8,480,000
8,480,000
2,145,000
1,045,000
28,880,000
7,260,000
-
23,250,000
6,065,000
48,608
$ 36,140,000 $ 29,363,608 $
-
Deletions
$
Ending
Balance
575,000 $ 13,150,000
8,480,000
240,000
805,000
Due
Within One
Year
595,000
250,000
$ 12,555,000
8,480,000
555,000
22,435,000
5,745,000
-
845,000
365,000
-
21,590,000
5,380,000
-
$ 1,183,608 $ 28,180,000
$ 1,210,000
$ 26,970,000
815,000
320,000
48,608
$
Due in
More Than
One Year
Oroville Public Financing Authority (OPFA) Revenue Bonds
The proceeds of the three OPFA bond series were loaned to the former Oroville Redevelopment Agency
(RDA) and used by the RDA to finance past and future capital projects of the RDA. Loan payments are
now made by the Oroville Successor Agency (OSA) to the OPFA are used to make debt service payments
on the bonds.
The OSA is reported as a private purpose trust fund in the accompanying financial statements. The
outstanding loan balances totaled $22,435,000 at June 30, 2014 and was reported as an amount “Due from
the Oroville Successor Agency” in the governmental funds balance sheet. The interest and principal paid
to the OPFA during the year ended June 30, 2014, was $1,365,548 and $815,000, respectively.
The Oroville Public Financing Authority 2002 Tax Allocation Revenue Bonds are comprised of
$8,300,000 of serial bonds and $9,955,000 of term bonds and mature annually on September 15th. The
bonds are an obligation of the Authority payable solely from proceeds of the sale of the bonds and
investment revenues from local obligations and purchase contracts.
The Oroville Public Financing Authority 2004 Tax Allocation Revenue Bonds, Series A, are comprised
of $1,165,000 of serial bonds and $7,315,000 of term bonds. The serial bonds mature annually beginning
September 15, 2017 through September 15, 2020. The term bonds are due as follows: $3,335,000
matures September 15, 2023, $1,185,000 matures September 15, 2027, and $2,795,000 matures
Page 58
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
September 15, 2031. These bonds are a special obligation of the OPFA payable solely from a pledge of
revenues primarily consisting of certain tax increment revenues received by the RDA.
The Oroville Public Financing Authority 2004 Taxable Tax Allocation Revenue Bonds, Series B, are
comprised of $1,280,000 of serial bonds and $865,000 of term bonds. The serial bonds mature annually
beginning September 15, 2012 through September 15, 2016. The term bonds are due as follows:
$435,000 matures September 15, 2009, and $430,000 matures September 15, 2011. These bonds are a
special obligation of the OPFA payable solely from a pledge of revenues primarily consisting of certain
tax increment revenues received by the RDA/Oroville Successor Agency.
Pension Obligation Bonds
Taxable Pension Obligation Bonds 2007, Series A-1, are comprised of $7,260,000 in serial bonds. The
bonds are an unconditional obligation of the City of Oroville payable from legally available funds.
However, the bonds are not voter-approved debt backed by the taxing power of the City and the full faith
and credit of the City has not been pledged to the repayment of the bonds. The proceeds of the bonds
were used to pay the City’s unfunded accrued actuarial liability to the California Public Employees’
Retirement System.
The annual debt service requirements on the bonds are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
Total
Pension Obligation Bonds
Principal
Interest
$ 365,000 $
310,342
410,000
291,070
455,000
269,340
505,000
244,907
565,000
217,788
3,445,000
568,907
$ 5,745,000 $ 1,902,354
OPFA Bonds
Principal
Interest
$
845,000 $ 1,069,574
885,000
1,032,683
920,000
992,719
935,000
958,256
975,000
918,211
5,605,000
3,888,078
7,135,000
2,252,646
5,135,000
452,000
$ 22,435,000 $ 11,564,167
Total
$ 2,589,916
2,618,753
2,637,059
2,643,163
2,675,999
13,506,985
9,387,646
5,587,000
$ 41,646,521
B. USDA Certificate of Participation Loan
The City of Oroville entered into a loan agreement with the United Sates Department of Agriculture
(USDA) wherein the City issued a Certificate of Participation (COP) to the USDA in an amount not to
exceed $700,000 to fund the expansion and renovation of City Hall. The City had drawn a total of
$700,000 for the project and the balance of the loan was $611,500 at June 30, 2014. The interest rate is
4.25% and is payable semi-annually. The agreement requires annual principal payments on August 1st
ranging from $16,300 to $44,100 through the year 2033.
Page 59
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
The annual debt service requirements on the COP are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
Total
USDA Certificate of Participation
Principal
Interest
Total
$
20,000 $
25,564 $
45,564
20,900
24,695
45,595
21,800
23,787
45,587
22,700
22,842
45,542
23,600
21,858
45,458
134,100
93,009
227,109
165,100
61,330
226,430
203,300
22,315
225,615
$ 611,500 $
295,400 $
906,900
C. Non-Obligated Debt
Feather River Bluffs Assessment District Improvement Bonds
These assessment district improvement bonds were issued in June, 1980, in accordance with the
provisions of the Improvement Act of 1911, under the procedures provided for in the Municipal
Improvement Act of 1913. These bonds are not obligations of the City of Oroville, the County of Butte,
or the State of California. The bonds are in default and judicial foreclosure proceedings are being
finalized. Bonds outstanding at the time of default totaled $891,170. It is the City's opinion that the City
has no obligation for payment of the bonds. For the year ended June 30, 2014, cash on hand $18,240 and
the offsetting liability have been included in the accompanying financial statements and are reported in an
agency fund.
Disclosure of Conduit (No-Commitment) Debt
On April 2, 2012, the City issued $15,000,000 of City of Oroville Variable Rate Demand Hospital
Revenue Bonds (Oroville Hospital) 2012 Series A. The proceeds from the sale of these bonds were
loaned to Oroville Hospital for the renovation and construction Hospital improvements and to refund
certain older bonds from a former issue. These bonds will be repaid solely from the loan payments made
by Oroville Hospital to the City. Neither the City, the State, nor any political subdivision thereof is
obligated in any manner for the repayment of these bonds. Accordingly, the bonds are not reported as a
liability in the accompanying financial statements.
NOTE 7 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City provides property, liability,
and worker's compensation insurance through the Northern California Cities Self Insurance Fund
(NCCSIF), a public entity risk pool currently operating as a common risk management and insurance
program for several Northern California Cities. The City pays quarterly and annual premiums to the
NCCSIF for liability and worker's compensation insurance.
The City's deductible is $50,000 for worker's compensation and $50,000 for liability. The coverages from
$50,000 to $500,000 in worker's compensation and $50,000 to $1,000,000 in liability are covered by a
risk sharing plan where all members participate in the loss. Claims that exceed the $500,000 level
($1,000,000 liability) are covered by excess Joint Powers Authorities. The City continues to carry
commercial insurance for all other risks of loss, such as employee health and accident. Settled claims
Page 60
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal
years.
An estimated liability has been accrued for unpaid claims, including the effects of specific, incremental
claim adjustments expenditures/expenses; salvage or subrogation; and allocated claim adjustment
expenditures/expenses. A reconciliation of unpaid claims liabilities is shown below:
Year Ended
June 30, 2014
$
203,409
366,793
(264,115)
$
306,087
Claims payable, beginning of year
Fiscal year claims and changes in estimates
Claims payments
Claims payable, end of year
Year Ended
June 30, 2013
$
374,495
165,474
(336,560)
$
203,409
NOTE 8 - JOINT POWERS AGREEMENTS
The City has entered into various joint powers agreements. Under the criteria established by GASB, the
City does not have sufficient authority, influence or accountability over these entities to incorporate it in
this annual report as a component unit of the reporting entity.
Northern California Cities Self Insurance Fund (NCCSIF)
The City is a member of this public entity risk pool for liability and workers' compensation purposes. The
NCCSIF consists of twenty Northern California Member Cities. The purpose of the Authority is to
arrange and administer programs of insurance for the pooling of self-insured losses and to purchase
excess liability coverage. All member cities share administrative costs of the Authority equally (5.00
percent) and have equal control over budgeting and financing activities. Each member city has a
representative on the Board of Directors. The City paid $591,146 in quarterly and annual premiums and
assessments to the Authority for liability and worker's compensation insurance.
Sewage Commission - Oroville Region (SC-OR)
SC-OR was organized under a joint powers agreement between the City of Oroville, Thermalito Water
and Sewer District, and Lake Oroville Area Public Utility District. SC-OR's primary purpose is to
provide sewage treatment services to the local government member entities. Each member sends two
representatives (one voting, one nonvoting) to SC-OR's Board of Directors that constitutes the entire
governing board. No participating member entity has access to SC-OR's resources or surpluses, nor is
any participant liable for SC-OR's debts or deficits. Further, the City of Oroville does not have any equity
interest in SC-OR. Each member entity is required to collect and remit SC-OR's sewer treatment and
system regional facility charges. For the year ended June 30, 2014, the amount remitted to SC-OR by the
City of Oroville totaled $706,335. Complete financial statements for SC-OR can be obtained from its
administrative office at P.O. Box 1350, Oroville, CA, 95965.
The following summarized each JPA’s audited financial information for the most recent year available:
Total Assets
Total Liabilities
Net Assets
NCCSIF
$ 46,940,001
36,876,069
$ 10,063,932
Total Revenues
Total Expenses
Change in Net Assets
$ 16,575,511
13,905,087
$ 2,670,424
Sewage
Commission
$ 18,600,182
397,226
$ 18,202,956
$
$
2,497,542
2,329,235
168,307
Page 61
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 9 - RETIREMENT PLANS
A. Pension Plan
Plan Description
The City of Oroville's two (2) defined benefit pension plans, Miscellaneous Plan of the City of Oroville
and Safety Plan of the City of Oroville (Plans), provide retirement and disability benefits, annual cost-ofliving adjustments, and death benefits to plan members and beneficiaries. The Plans are part of the
Miscellaneous Plan Risk Pool and Safety Plan Risk Pool, respectively, of the California Public
Employees Retirement System (CalPERS) and are cost-sharing, multiple-employer plans administered by
CalPERS. CalPERS acts as a common investment and administrative agent for participating public
employees within the State of California. State statutes within the Public Employees’ Retirement Law
establish a menu of benefit provisions as well as other requirements. The City of Oroville selects optional
benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through
local ordinance. CalPERS issues a publically available comprehensive annual financial report that
includes financial statements and required supplementary information. Copies of the CalPERS' annual
financial report may be obtained from the CalPERS Executive Office - 400 P Street - Sacramento, CA
95811.
Funding Policy
Active plan members in the Plans are required to contribute 7.0% (9% for safety employees) of their
annual covered salary. The City of Oroville is required to contribute the actuarially determined remaining
amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are
those adopted by CalPERS Board of Administration. The required employer contribution rate for fiscal
2014 was 12.094% (21.8% for safety employees). The contribution requirements of the plan members are
established by State statute and the employer contribution rate is established and may be amended by
CalPERS.
Annual Pension Cost
For fiscal year 2014 the City of Oroville's annual pension cost was $1,092,387 and the City actually
contributed $1,092,387. In addition, the City paid $220,369 of the employees' required contributions
under the terms of the City's various employee bargaining unit agreements. The required contribution for
fiscal year 2014 was determined as part of the June 30, 2010, actuarial valuation. The actuarial
assumptions included: (a) 7.5% investment rate of return (net of administrative expenses); (b)
projected annual salary increases from 3.3% and 14.20% that vary by age, duration of service,
and type of employment; (c) 2.75% inflation; (d) 3% payroll growth; and (e) individual salary
growth based on a merit scale varying by duration of employment coupled with an assumed
annual inflation of 2.75% and an annual production growth of 0.25%.
The following summarizes the three trend information for the City’s plan:
Fiscal
Year
2012
2013
2014
Annual Pension Cost (APC)
Miscellaneous
Safety
$
433,542 $
626,797
425,610
650,753
458,320
634,067
APC
Contributed
100%
100%
100%
Net
Pension
Obligation
$
$
$
-
Page 62
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
B. Other Postemployment Benefits Plan
Plan Description
The City of Oroville Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan
administered by the City. The plan provides lifetime healthcare insurance coverage for eligible retirees
and their dependents through the City’s group medical insurance plan, which covers both active and
retired participants. Benefit provisions are established and may be amended through agreements
and memorandums of understanding between the City, its non-represented employees and the
unions representing City employees. The Plan does not issue a separate financial report.
Employees are eligible to participate in the Plan if they retire directly from the City under CalPERS and
pay the full premium. Since premiums are determined for actives and retirees on a combined basis, an
implied subsidy must be reflected under GASB 45. Certain Management employees are eligible for sick
leave conversion benefits at retirement, including medical, dental, vision, long-term disability, and life
benefits
Funding Policy
The contribution requirements of Plan participants and the City are established and may be amended by
the City pursuant to agreements with its non-represented employees and the unions representing
City employees. The City contributed $62,204 during the 2014 fiscal year on a pay-as-you-go basis for
retiree sick leave conversion premiums.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other postemployment benefit cost (expense) is calculated based on the annual required
contribution (ARC) of the employer. The ARC represents the level of funding that, if paid on an ongoing
basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed 30 years.
The following table shows the components of the City’s annual OPEB cost for the year, the amount
actually contributed to the Plan, and the changes in the City’s net OPEB obligation:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
June 30, 2014
$ 303,000
24,642
(27,722)
299,920
(62,204)
237,716
588,327
$ 826,043
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for the fiscal year 2014 and the two preceding fiscal years were as follows:
Fiscal
Year
Ended
2012
2013
2014
Annual
OPEB Cost
$ 264,933
277,063
299,920
Percentage of
Annual OPEB
Cost Contributed
39%
36%
21%
Net
OPEB
Obligation
$ 410,277
588,327
826,043
Page 63
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
Funded Status and Funding Progress
The funded status of the Plan as of June 30, 2011, the Plan’s most recent actuarial valuation date, was as
follows:
Actuarial accrued liability (AAL)
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
$ 2,686,000
$ 2,686,000
Funded ratio (actuarial value of plan assets/AAL)
Projected covered payroll (active Plan members)
UAAL as a percentage of covered payroll
0%
$ 6,228,000
43%
Actuarial valuations of an ongoing plan involve estimates of the value of expected benefit payments and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan participants) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing costs between the employer and plan
participants to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
For the June 30, 2011, actuarial valuation, the entry age normal actuarial cost method was used. The
actuarial assumptions included a 4.25% investment rate of return (net of administrative expenses) and a
3% general inflation assumption. Premiums were assumed to increase for non-Medicare medical cost
increase of 8.5% for 2014, graded down to 5.0% for 2021 and thereafter. The Medicare medical cost
increase rates were 8.9% for 2014, downgraded to 5.0% for 2021 and thereafter. The initial unfunded
actuarial accrued liability was amortized as a level percentage of projected payroll over a fixed 30-year
period, of which 25 years remain.
C. Deferred Compensation
The City of Oroville offers its employees deferred compensation plans created in accordance with Internal
Revenue Code Section 457. The plans, available to all City employees, permit employees to defer a
portion of their salary until future years. Participation in the plans is optional. The deferred compensation
is not available to employees until termination, retirement, death, or unforeseeable emergency. The City
has adopted the provisions of GASB Statement 32 and, therefore, the assets and liabilities of these plans
have been excluded from the accompanying financial statements.
Page 64
City of Oroville
Notes to the Basic Financial Statements
June 30, 2014
NOTE 10 - COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City is presently involved in certain matters of litigation that have arisen in the normal course of
conducting City business. City management believes, based upon consultation with the City Attorney,
that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the
City. Additionally, City management believes that the City's insurance programs are sufficient to cover
any potential losses should an unfavorable outcome materialize.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's
independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments
of 1996 and applicable State requirements. For Federal programs, the City reached the level of qualifying
cost during the current fiscal year so a single audit was required. Expenditures which may be disallowed,
if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if
any, to be immaterial.
C. Oroville Successor Agency Loan Repayment
On January 31, 2012, the Oroville Redevelopment Agency (RDA) paid $1,852,500 ($1,800,000 principal
and $52,500 interest) to the City of Oroville’s General Fund to repay a loan obligation due to the City.
Section 34171(d)(2) of the California Health and Safety Code limited the authority of redevelopment
agencies to repay loans between the RDA and the City. After January 1, 2011, only loans established
within two years of the date of creation of the RDA are permitted to be repaid to the City. The loan
between the RDA and City was established after the two year period. The City has taken the position that
it had a legal right to demand payment and the RDA had a legal obligation to pay. The California State
Department of Finance has determined that the City must return the payment. The City would then need
to obtain a finding by the Oversight Board of the Oroville Successor Agency (OSA) that the loan
was made for legitimate redevelopment purposes and qualifies as an enforceable obligation eligible for
repayment, but such repayment would be limited to the restrictions contained in Section 34191.4(b) of the
Health and Safety Code.
On December 10, 2013, the City complied with the State’s demand and remitted $1,852,500 to the Butte
County Auditor-Controller. The payment was made from the City’s General Fund. Management expects
that the amount will be repaid to the General Fund by the Oroville Successor Agency over the next
several years, but the repayment could be a fraction of the total remitted by the City and paid indirectly
through county tax assessments. Since the exact amount of the repayment to the General Fund was
unknown to the City at June 30, 2014, an asset was not included in the General Fund and a liability was
not included in the OSA private purpose trust fund.
D. Commitments
The City had several outstanding contracts or planned projects as of June 30, 2014. These projects are
evidenced by contractual commitments with contractors totaling $1,141,729. As of June 30, 2014, in the
opinion of City management, there were no additional outstanding matters that would have a significant
effect on the financial position of the funds of the City.
Page 65
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Page 66
REQUIRED SUPPLEMENTARY INFORMATION
Page 67
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Page 68
City of Oroville
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual (GAAP Basis)
General Fund
June 30, 2014
Variance with
Budgeted Amounts
Final Budget
Positive
(Negative)
Original
Final
Actual
Amounts
$ 1,460,338
2,810,727
2,107,672
376,137
1,707,016
460,676
35,598
337,758
80,700
27,870
185,444
740,176
304,341
10,634,453
$ 1,460,338
2,810,727
2,107,672
376,137
1,707,016
460,676
35,598
337,758
80,700
27,870
185,444
740,176
304,341
10,634,453
$ 1,605,675
3,045,776
2,119,368
426,190
1,594,686
513,879
66,612
390,568
85,734
25,869
117,282
340,267
148,727
10,480,633
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
2,685,345
7,071,246
259,935
772,331
743,842
2,313,837
105,180
13,951,716
2,685,345
7,071,246
259,935
772,331
743,842
2,313,837
105,180
13,951,716
2,343,109
6,905,756
240,738
566,271
692,181
890
2,180,118
17,785
12,946,848
342,236
165,490
19,197
206,060
51,661
(890)
133,719
87,395
1,004,868
Excess (Deficiency) of Revenues over Expenditures
(3,317,263)
(3,317,263)
(2,466,215)
851,048
1,152,427
(23,735)
1,128,692
1,152,427
(23,735)
1,128,692
1,324,253
(23,735)
1,300,518
171,826
171,826
(2,188,571)
(2,188,571)
(1,165,697)
1,022,874
4,014,794
4,014,794
4,014,794
$ 1,826,223
$ 1,826,223
$ 2,849,097
REVENUES
Taxes:
Property taxes
Sales and use taxes
Sales and use taxes in-lieu
Transient occupancy taxes
Utility users taxes
Franchise taxes
Other taxes
License and permits
Fines and forfeitures
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Page 69
$
145,337
235,049
11,696
50,053
(112,330)
53,203
31,014
52,810
5,034
(2,001)
(68,162)
(399,909)
(155,614)
(153,820)
$
1,022,874
City of Oroville
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Sewer Fund
June 30, 2014
Variance with
Budgeted Amounts
Original
REVENUES
Interest, rents and concessions
Current service charges
Other revenues
Total Revenues
EXPENDITURES
Current:
Health and Sanitation
Capital outlay
Total Expenditures
$
5,656
2,748,229
16,964
2,770,849
Actual
Amounts
Final
$
5,656
2,748,229
16,964
2,770,849
$
4,748
2,702,571
19,617
2,726,936
Final Budget
Positive
(Negative)
$
(908)
(45,658)
2,653
(43,913)
2,009,927
644,464
2,654,391
2,009,927
644,464
2,654,391
1,389,625
11,718
1,401,343
620,302
632,746
1,253,048
116,458
116,458
1,325,593
1,209,135
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
14,541
(318,411)
(303,870)
14,541
(318,411)
(303,870)
Net Change in Fund Balances
(187,412)
(187,412)
Excess (Deficiency) of Revenues over Expenditures
Fund Balances Beginning
Fund Balances Ending
14,541
(318,411)
(303,870)
1,021,723
2,533,519
2,533,519
2,533,519
$ 2,346,107
$ 2,346,107
$ 3,555,242
Page 70
1,209,135
$
1,209,135
City of Oroville
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Housing Program Fund
June 30, 2014
Variance with
Budgeted Amounts
Original
REVENUES
Interest, rents and concessions
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
Housing and Community Development
Capital outlay
Total Expenditures
44,079
23,101
67,180
Actual
Amounts
Final
$
44,079
23,101
67,180
$
52,619
6,407
288,326
347,352
Final Budget
Positive
(Negative)
$
8,540
6,407
265,225
280,172
427,141
135,661
562,802
427,141
135,661
562,802
372,639
135,661
508,300
54,502
54,502
Excess (Deficiency) of Revenues over Expenditures
(495,622)
(495,622)
(160,948)
334,674
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
(169,440)
(169,440)
(169,440)
(169,440)
1
(168,837)
(168,836)
1
603
604
Net Change in Fund Balances
(665,062)
(665,062)
(329,784)
335,278
Fund Balances Beginning
Fund Balances Ending
1,424,247
$
759,185
Page 71
$
1,424,247
1,424,247
759,185
$ 1,094,463
$
335,278
City of Oroville
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual (GAAP Basis)
First Time Home Buyer Grant Fund
June 30, 2014
Variance with
Budgeted Amounts
Original
REVENUES
Interest, rents and concessions
Intergovernmental revenues
Other revenues
Total Revenues
$
EXPENDITURES
Current:
Housing and Community Development
Total Expenditures
1,076
1,425,000
824
1,426,900
Actual
Amounts
Final
$
1,076
1,425,000
824
1,426,900
6,465
(1,197,269)
37,746
(1,153,058)
222,520
(156,774)
(379,294)
150,000
(389,889)
(239,889)
150,000
(389,889)
(239,889)
255,000
(84,267)
170,733
105,000
305,622
410,622
Net Change in Fund Balances
(17,369)
(17,369)
13,959
31,328
Fund Balances Beginning
618,021
618,021
618,021
-
Fund Balances Ending
$
222,520
$
773,764
773,764
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
1,204,380
1,204,380
7,541
227,731
38,570
273,842
430,616
430,616
Excess (Deficiency) of Revenues over Expenditures
1,204,380
1,204,380
$
Final Budget
Positive
(Negative)
600,652
Page 72
$
600,652
$
631,980
$
31,328
City of Oroville
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Community Development Block Grant Fund
June 30, 2014
Variance with
Budgeted Amounts
Original
REVENUES
Interest, rents and concessions
Intergovernmental revenues
Other revenues
Total Revenues
$
EXPENDITURES
Current:
Parks and Leisure
Housing and Community Development
Capital outlay
Total Expenditures
3,482,104
3,482,104
Actual
Amounts
Final
$
3,482,104
3,482,104
$
80,571
1,092,490
107,292
1,280,353
Final Budget
Positive
(Negative)
$
80,571
(2,389,614)
107,292
(2,201,751)
4,462,753
324,310
4,787,063
4,462,753
324,310
4,787,063
163
924,068
11,229
935,460
(163)
3,538,685
313,081
3,851,603
Excess (Deficiency) of Revenues over Expenditures
(1,304,959)
(1,304,959)
344,893
1,649,852
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
1,615,218
(1,749,354)
(134,136)
1,615,218
(1,749,354)
(134,136)
1,613,271
(727,417)
885,854
(1,947)
1,021,937
1,019,990
Net Change in Fund Balances
(1,439,095)
(1,439,095)
1,230,747
2,669,842
Fund Balances Beginning
Fund Balances Ending
886,844
$
(552,251)
Page 73
886,844
$
(552,251)
886,844
$ 2,117,591
$
2,669,842
City of Oroville
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Oroville Public Financing Authority Fund
June 30, 2014
Variance with
Budgeted Amounts
Original
REVENUES
Taxes:
Interest, rents and concessions
Total Revenues
$
1,918,775
1,918,775
EXPENDITURES
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
-
Fund Balances Ending
Final
$
1,918,775
1,918,775
-
$
1,081,652
1,081,652
1,918,775
1,081,652
(1,918,775)
(1,918,775)
(1,918,775)
(1,918,775)
(1,918,775)
(1,918,775)
-
-
$
23,294,625
23,294,625
$ 23,294,625
$ 23,294,625
$ 22,457,502
(837,123)
(837,123)
(837,123)
-
(837,123)
23,294,625
Page 74
Final Budget
Positive
(Negative)
-
1,918,775
Net Change in Fund Balances
Fund Balances Beginning
Actual
Amounts
(837,123)
$
(837,123)
City of Oroville
Retiree Healthcare Plan
Schedule of Funding Progress
June 30, 2014
Actuarial
Valuation
Date
6/30/2008
6/30/2011
Actuarial
Value of
Assets
(a)
$
-
Actuarial
Accrued
Liability
(AAL)
Entry Age
(b)
$
1,511,000
2,686,000
Unfunded
AAL
(UAAL)
(b-a)
$
1,511,000
2,686,000
Page 75
Funded
Ratio
(a/b)
0.00%
0.00%
Covered
Payroll
(c)
$
5,739,000
6,228,000
UAAL as
a Percentage
of Covered
Payroll
((b-a/c))
26.33%
43.13%
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Page 76
SUPPLEMENTARY INFORMATION
Page 77
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Page 78
City of Oroville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2014
Total
Special
Revenue
Funds
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Accounts
Interest
Due from other funds
Inventory
Loans receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Interfund
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Debt service
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Debt service
Unassigned
Total fund balances
Total liabilities and fund balances
$
8,420,732
-
Total
Debt
Service
Funds
$
133,764
70,233
4,012
8,088,408
16,717,149
$
65,109
20,799
7,954
197,334
8,088,408
8,379,604
186,680
1,950,948
Total
Capital
Projects
Funds
$
6,467
2,144,095
$
82,050
252,555
334,605
$
17,799
29,154
2,254
924,034
$
378
13,369
13,747
9,482,239
1,950,948
151,563
76,700
29,154
4,012
8,090,662
19,785,278
$
65,487
20,799
90,004
449,889
8,101,777
8,727,956
4,012
-
29,154
-
459
-
-
459
-
672,198
85,731
3,758,454
101,147
931,675
2,025,717
672,198
85,731
3,758,454
101,147
931,675
37,402
2,382,196
62,346
2,025,717
-
19,243
406,009
31,907
36,328
(155,234)
(252,555)
8,337,545
1,809,490
$ 16,717,149 $ 2,144,095 $
Page 79
874,827
-
Total
Nonmajor
Governmental
Funds
881,133
910,287
924,034
29,154
4,012
918,535
2,382,196
62,346
19,243
406,009
31,907
36,328
(407,789)
11,057,322
$ 19,785,278
City of Oroville
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
June 30, 2014
Total
Special
Revenue
Funds
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
260,104
167,510
331,880
3,551,339
185,788
455,849
4,952,470
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Debt service
Principal retirement
Interest and fiscal charges
Capital outlay
Total Expenditures
1,350,147
3,412,307
Excess (Deficiency) of Revenues over Expenditures
$
111,267
374,164
59,215
110,541
439,095
4,514
963,364
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
573,957
573,957
$
559
56,698
9,845
67,102
Total
Nonmajor
Governmental
Funds
$
260,104
167,510
332,439
3,608,037
185,788
1,039,651
5,593,529
2,352
790
-
113,619
374,164
59,215
111,331
439,095
4,514
963,364
1,154,200
1,442,330
2,596,530
49,247
52,389
1,154,200
1,442,330
1,399,394
6,061,226
1,540,163
(2,022,573)
14,713
1,686,354
(3,105,920)
(1,419,566)
1,986,775
(4,443)
1,982,332
19,000
(78,334)
(59,334)
(40,241)
(44,621)
8,216,948
$
Total
Capital
Projects
Funds
-
120,597
Fund Balances Beginning
Fund Balances Ending
Total
Debt
Service
Funds
8,337,545
Page 80
1,849,731
$
1,809,490
(467,697)
3,692,129
(3,188,697)
503,432
35,735
954,908
$
910,287
11,021,587
$
11,057,322
NONMAJOR SPECIAL REVENUE FUNDS
Fund Title
Community Promotions Funds
Sewer Connection Fees Funds
Fund Description
To account for community related promotion expenditures.
To account for revenues collected for sewer connection fees and expenditures for sewer system.
Drainage Impact Fees Fund
To account for revenues collected for drainage fees and expenditures for drainage
improvements.
To account for revenues collected for park use fees and expenditures for park improvements.
To account for revenues collected for traffic impact fees in the Thermalito Area.
To account for revenues collected for traffic impact fees in Oroville, excluding the North
Oroville and Thermalito Areas.
To account for revenues collected for citywide drainage impact fees and expenditures for
drainage improvements.
To account for revenues and expenditures associated with Transportation Development Act,
Section 99400(A) funds and Traffic Congestion funds.
To account for the activities of the Regional Surface Transportation Program.
To account for revenue collected to operate the police canine program.
To account for collections and expenditures related to the City’s technology fee program.
To account for collections and expenditures related to the SB-1186 fees for disability access
and compliance.
To account for activities of the City's recycling program.
To account for State gasoline taxes received by the City. These funds may be used for street
maintenance, right-of-way acquisition and street maintenance.
To account for State gasoline taxes received by the City. These funds may be used for street
maintenance, right-of-way acquisition and street maintenance.
To account for State gasoline taxes received by the City. These funds may be used for street
maintenance, right-of-way acquisition and street maintenance.
To account for lease revenues from leased airport property and annual State allocations for
airport operations and improvements.
To account for administrative overhead for the City's housing loan and rehabilitation programs.
Park Development Fees Fund
Thermalito Traffic Impact Fees Fund
Traffic Impact Fees Fund
Drainage Citywide Fund
Local Transportation Fund
Regional Surface Transportation Program Fund
Canine Fund
Technology Fee Fund
SB-1186 Fees Fund
Recycling Fund
Special Gas Tax 2107 & 2107.5 Fund
Special Gas Tax 186.1 & 2106 Fund
Special Gas Tax 2105 Fund
Special Aviation Fund
Housing Administration Fund
EDBG Fund
Asset Seizure Fund
Public Safety Augmentation Fund
Police Supplemental Law Enforcement Fund
Law Enforcement Block Grant Fund
Law Enforcement Impact Fee Fund
Miscellaneous Grant Fund
Fire Suppression Impact Fee Fund
Contingency Fund
Fire Grant Fund
PEG Fee Fund
General Government Development Impact Fee Fund
Lighting & Landscape Maintenance Districts Fund
Benefit Assessment Districts Fund
Westside Public Service Fund
Public Safety Services Fund
Supplemental Benefits Fund
Pioneer Museum Fund
Public Works Manufacturing Business Development Center Fund
City Housing Rehabilitation Revolving Loan Fund
CDBG Economic Development Revolving Loan Fund
CDBG Housing Revolving Loan Fund
Micro- Enterprise Revolving Loan Fund
CalHome Revolving Loan Fund
Home Housing Revolving Loan Fund
Housing Rehabilitation Revolving Loan Fund
City Revolving Loan Fund
Plan Retention Fund
Annexation Fund
Asset Seizure Fund
To account for the activities of the City's various EDBG grants.
To account for revenues and expenditures of assets acquired through law enforcement seizure
activities.
To account for revenues generated for public safety purposes by a special sales tax distributed
by Butte County.
To account for revenues and expenditures funded by the State COPS program.
To account for revenues and expenditures funded by the Federal Local Law Enforcement Block
Grant.
To account for revenues and expenditures funded by the Federal Local Law Enforcement Block
Grant.
To account for revenues and expenditures for several small grants awarded to the City.
To account for revenues and expenditures of development impact fees assessed for fire
suppression services.
To accumulate resources and account for expenditures for unanticipated contingencies.
To account for activities associated with the Indian Gaming Grant.
To account for cable franchise fees collected for public access cable services
To account for revenues and expenditures of development impact fees assessed for general
governmental services.
To account for property tax assessment revenue collected for maintenance of the capital
improvements of various improvement districts.
To account for property tax assessment revenue collected for maintenance of the capital
improvements of various benefit districts.
To account for property tax assessment revenue collected for public safety facilities and
services provided to various benefit districts
To account for property tax assessment revenue collected for public safety facilities and
services provided to various benefit districts
To account for revenues and expenditures of amounts received from the Department of Water
Resources.
To maintain accountability for cash contributed to the City for the Pioneer Museum.
To account for funds received and expenditures related to the City's Business Development
Center.
To account for loans to Low and Moderate Income Families, including repayment of principal
and receipt of interest income.
To account for funds received from the CDBG Economic Development Grant which are
authorized to be loaned to private enterprises.
To account for the activities of the City's housing revolving loan program funded by CDBG
program income.
To account for the activities of the City's small business revolving loan program funded by
CDBG program income.
To account for the activities of the City's housing revolving loan program funded by CalHOME
program income.
To account for activities of the City's housing revolving loan program funded by HOME
program income.
To account for activities of the City's housing revolving loan program.
To account for loans, including payment of principal and interest.
To accumulate resources to be utilized for cost of annexing areas located adjacent to current
City limits.
To accumulate resources to be utilized for cost of annexing areas located adjacent to current
City limits.
To accumulate resources to be utilized for asset seizure costs.
Page 81
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Community
Promotions
Fund
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
$
$
500
22,839
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
22,339
Sewer
Connection
Fees
Fund
871,370
$
871,370
485,523
Park
Development
Fees
Fund
$
485,523
104,261
$
104,261
155,511
Traffic
Impact
Fees
Fund
$
155,511
796,841
796,841
157
157
-
-
1,925
1,925
-
2,010
2,010
-
-
-
-
-
-
-
-
-
-
-
-
-
871,370
-
$
Drainage
Impact
Fees
Fund
Thermalito
Traffic
Impact
Fees
Fund
22,682
22,682
22,839
485,523
-
-
$
871,370
871,370
Page 82
102,336
-
-
$
485,523
485,523
155,511
-
-
$
102,336
104,261
794,831
-
-
$
155,511
155,511
-
$
794,831
796,841
Cont'd
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Drainage
Citywide
Fund
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
$
$
$
513,435
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
513,435
Local
Transportation
Fund
Regional
Surface
Transportation
Program
Fund
41,501
754,691
$
754,691
7,635
$
29,717
SB-1186
Fees
Fund
$
1,377
Recycling
Fund
$
69,232
$
7,809
7,635
112
29,829
1,377
3,248
72,480
24,084
31,893
1,696
1,696
-
-
-
216
29,154
29,370
-
12,175
12,175
-
-
-
-
-
-
-
-
-
-
-
-
-
459
-
-
-
511,739
-
41,501
-
-
$
41,501
Canine
Fund
Technology
Fee
Fund
Special
Gas Tax
2107 &
2107.5
Fund
511,739
513,435
754,691
-
-
$
41,501
41,501
-
$
754,691
754,691
Page 83
$
7,635
-
-
1,377
-
60,305
31,893
-
-
-
-
-
-
7,635
7,635
459
29,829
1,377
1,377
60,305
72,480
31,893
31,893
Cont'd
$
$
$
$
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Special
Gas Tax
186.1 &
2106
Fund
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
$
$
10,240
28,137
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
17,897
Special
Gas Tax
2105
Fund
$
42,492
135,609
Housing
Administration
Fund
20,300
19,189
4,012
423,985
20,300
12,773
2,762,074
2,774,847
50
-
34,452
718
7,954
43,124
11,075
11,075
-
-
4,012
-
-
-
-
135,609
-
28,137
28,137
376,849
-
-
$
135,609
135,609
-
$
Page 84
EDBG
Fund
380,861
423,985
$
$
Public
Safety
Augmentation
Fund
Asset
Seizure
Fund
400,784
-
28,137
-
$
93,117
Special
Aviation
Fund
-
$
32,771
$
32,771
123,800
123,800
-
-
-
-
-
-
-
-
-
-
-
32,771
-
-
-
-
9,225
9,225
20,300
64,742
2,762,074
2,826,866
(52,019)
(52,019)
$ 2,774,847
$
32,771
32,771
123,800
-
$
123,800
123,800
Cont'd
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
Police
Supplemental
Law
Enforcement
Fund
Law
Enforcement
Block
Grant
Fund
Law
Enforcement
Impact
Fee
Fund
Miscellaneous
Grant
Fund
$
$
$
$
67,345
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
67,345
117,503
55,474
55,474
44,805
257
257
-
-
-
-
-
-
117,246
-
67,345
67,345
$
$
21,415
Contingency
Fund
$
21,415
275,570
$
275,570
PEG
Fee
Fund
23,284
$
64,470
23,284
5,813
70,283
-
7,836
7,836
-
-
-
-
-
-
-
-
-
-
-
-
55,474
-
-
21,415
-
-
15,448
-
70,283
-
-
44,778
-
275,570
-
-
-
55,474
55,474
44,778
44,805
21,415
21,415
275,570
275,570
15,448
23,284
70,283
70,283
Cont'd
Page 85
27
Fire
Grant
Fund
-
117,246
117,503
$
44,805
-
67,345
-
$
117,503
Fire
Suppression
Impact Fee
Fund
27
$
$
$
$
$
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
General
Government
Development
Impact Fee
Fund
Lighting &
Landscape
Maintenance
Districts
Fund
$
$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
$
3,146
31,581
Benefit
Assessment
Districts
Fund
$
61,081
3,146
31,581
61,081
-
1,032
239
1,271
65
-
-
-
-
Westside
Public
Service
Fund
$
222,570
Public
Safety
Services
Fund
$
222,570
222,739
Supplemental
Benefits
Fund
$
222,739
405,059
Pioneer
Museum
Fund
$
26,976
432,035
101,047
101,047
-
-
7,566
892
8,458
-
-
-
-
-
-
-
-
-
-
-
-
3,146
-
30,310
-
61,016
-
-
-
-
3,146
3,146
30,310
31,581
61,016
61,081
$
Page 86
65
$
222,570
-
222,739
-
-
$
222,570
222,570
-
-
$
222,739
222,739
$
101,147
-
17,568
-
406,009
423,577
432,035
(100)
101,047
101,047
Cont'd
$
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
Public Works
City
Manufacturing
Housing
Business
Rehabilitation
Development
Revolving
Center
Loan
Fund
Fund
CDBG
Economic
Development
Revolving
Loan
Fund
$
$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
-
669,410
-
1,110
1,110
46,392
1,593,718
2,309,520
236
65,083
65,319
984
39
97,612
98,635
2,250
1,593,718
1,595,968
5,809
65,083
70,892
$
803,665
803,665
17
803,665
803,682
MicroEnterprise
Revolving
Loan
Fund
$ 1,079,275
Home
Housing
Revolving
Loan
Fund
CalHome
Revolving
Loan
Fund
$
122,383
$
46,224
1,079,275
122,383
2,757,582
2,803,806
245
245
2
-
2,757,582
2,757,582
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,573)
(5,573)
65,319
(17)
(17)
803,665
-
$
$
CDBG
Housing
Revolving
Loan
Fund
713,552
-
(97,525)
(97,525)
713,552
1,110 $ 2,309,520
Page 87
$
$
1,079,030
-
122,381
-
46,224
-
1,079,030
$ 1,079,275
122,381
122,383
46,224
$ 2,803,806
Cont'd
$
City of Oroville
Combining Balance Sheet
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Housing
Rehabilitation
Revolving
Loan
Fund
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Inventory
Loans receivable
Total assets
$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Inventory
Restricted:
General Government
Public Safety:
Police
Fire
Streets and Storm Drains
Parks and Leisure
Health and Sanitation
Committed:
General Government
Housing and Community Development
General reserve
Assigned:
General Government
Parks and Leisure
Housing and Community Development
Unassigned
Total fund balances
Total liabilities and fund balances
$
-
City
Revolving
Loan
Fund
$
134,607
Plan
Retention
Fund
$
19,243
Asset
Seizure
Fund
Annexation
Fund
$
37,402
$
45,188
Total
Special Revenue
Nonmajor
Governmental
Funds
$
8,420,732
57,012
57,012
10,832
49,274
194,713
19,243
37,402
45,188
133,764
70,233
4,012
8,088,408
16,717,149
57,012
57,012
49,274
49,274
-
-
-
65,109
20,799
7,954
197,334
8,088,408
8,379,604
-
-
-
-
-
4,012
-
-
-
-
-
459
-
-
-
-
45,188
-
672,198
85,731
3,758,454
101,147
931,675
37,402
2,382,196
62,346
-
145,439
-
-
37,402
-
-
57,012
145,439
194,713
19,243
19,243
19,243
37,402
37,402
45,188
45,188
$
Page 88
$
$
$
19,243
406,009
31,907
(155,234)
8,337,545
$ 16,717,149
Concluded
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Community
Promotions
Funds
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
-
Sewer
Connection
Fees
Funds
$
18,334
18,334
Excess (Deficiency) of Revenues over Expenditures
1,771
43,913
45,684
Drainage
Impact
Fees
Fund
$
480
480
4,536
1,040
5,576
$
12,913
205
13,118
113,573
17,432
-
-
-
Net Change in Fund Balances
(8,334)
45,204
(12,515)
10,713
Fund Balances Beginning
31,016
826,166
498,038
91,623
Page 89
18,542
1,065
19,607
(152)
10,000
10,000
$
$
2,175
2,175
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
871,370
126,324
1,566
8,303
136,193
480
22,140
22,620
10,713
$
$
480
480
(12,515)
22,682
328
328
Drainage
Citywide
Fund
2,405
2,405
45,204
$
$
Traffic
Impact
Fees
Fund
18,091
18,091
(18,334)
Fund Balances Ending
Thermalito
Traffic
Impact
Fees
Fund
Park
Development
Fees
Fund
485,523
$
102,336
-
-
(152)
155,663
$
155,511
$
-
113,573
17,432
681,258
494,307
794,831
$
511,739
Cont'd
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
Local
Transportation
Fund
Regional
Surface
Transportation
Program
Fund
$
$
194
194
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
-
Excess (Deficiency) of Revenues over Expenditures
194
1,218
359,436
360,654
Canine
Fund
$
-
Technology
Fee
Fund
$
2
17,475
17,477
2,000
2,000
9,842
9,842
344
11,000
11,344
-
358,654
7,635
28,233
1,131
(3,314)
127,967
-
-
-
(22,592)
(22,592)
(106,757)
(106,757)
1,131
(25,906)
21,210
86,211
10,683
(91,000)
(91,000)
Net Change in Fund Balances
(90,806)
358,654
7,635
28,233
Fund Balances Beginning
132,307
396,037
-
(27,774)
$
41,501
-
$
754,691
Page 90
$
7,635
$
459
$
Recycling
Fund
57
39,520
39,577
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
SB-1186
Fees
Fund
Special
Gas Tax
2107 &
2107.5
Fund
-
$
1
1,135
1,136
5
5
246
1,377
$
$
60,305
1
128,084
128,085
4,034
15,858
19,892
-
$
164
3,456
12,948
10
16,578
118
118
$
31,893
Cont'd
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Special
Gas Tax
186.1 &
2106
Fund
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
23
70,829
70,852
Special
Gas Tax
2105
Fund
$
-
Excess (Deficiency) of Revenues over Expenditures
63
341,468
341,531
Special
Aviation
Fund
$
-
193,709
1,298,474
294,849
1,787,032
Housing
Administration
Fund
$
439,095
1,134,409
1,573,504
-
EDBG
Fund
$
81,234
313,252
85,758
480,244
Public
Safety
Augmentation
Fund
Asset
Seizure
Fund
$
$
70
(1,300)
(1,230)
546,580
546,580
249,580
249,580
-
104,289
61
104,350
-
70,852
341,531
213,528
(546,580)
230,664
(1,230)
104,350
(60,221)
(60,221)
(256,568)
(256,568)
147,000
(86,776)
60,224
542,198
542,198
(465,580)
(465,580)
-
(130,000)
(130,000)
Net Change in Fund Balances
10,631
84,963
273,752
(4,382)
(234,916)
(1,230)
(25,650)
Fund Balances Beginning
17,506
50,646
107,109
13,607
182,897
34,001
149,450
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
28,137
$
135,609
$
Page 91
380,861
$
9,225
$
(52,019)
$
32,771
$
123,800
Cont'd
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
Police
Supplemental
Law
Enforcement
Fund
Law
Enforcement
Block
Grant
Fund
Law
Enforcement
Impact
Fee
Fund
Miscellaneous
Grant
Fund
Fire
Suppression
Impact Fee
Fund
Contingency
Fund
$
$
$
$
$
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
228
93,911
94,139
199
143,178
143,377
1,995
115
2,110
20
142,285
84,770
227,075
977
45
1,022
-
Fire
Grant
Fund
$
240
309,559
309,799
-
72,164
10,788
82,952
480
480
110,853
4,028
12,240
127,121
480
480
71,051
71,051
291,391
143,712
435,103
94,139
60,425
1,630
99,954
542
(71,051)
(125,304)
(138,531)
(138,531)
(68,833)
(68,833)
-
23,690
(18,005)
5,685
-
-
15,334
15,334
Net Change in Fund Balances
(44,392)
(8,408)
1,630
105,639
542
(71,051)
(109,970)
Fund Balances Beginning
111,737
53,844
(60,861)
346,621
125,418
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
67,345
125,654
$
117,246
$
Page 92
55,474
$
44,778
20,873
$
21,415
$
275,570
$
15,448
Cont'd
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
PEG
Fee
Fund
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
28,600
114
28,714
General
Government
Development
Impact Fee
Fund
Lighting &
Landscape
Maintenance
Districts
Fund
$
$
-
2,223
4
2,227
47,309
31
47,340
Benefit
Assessment
Districts
Fund
$
2,000
126
2,126
Westside
Public
Service
Fund
$
38,953
408
39,361
Public
Safety
Services
Fund
$
38,953
408
39,361
Supplemental
Benefits
Fund
$
330
339,104
339,434
480
480
29,257
29,257
1,997
1,997
767
767
767
767
106,513
106,513
28,714
1,747
18,083
129
38,594
38,594
232,921
-
(5,000)
(5,000)
(2,704)
(2,704)
(187)
(187)
-
-
Net Change in Fund Balances
28,714
(3,253)
15,379
(58)
38,594
38,594
232,921
Fund Balances Beginning
41,569
6,399
14,931
183,976
184,145
190,656
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
70,283
$
3,146
Page 93
$
30,310
61,074
$
61,016
$
222,570
$
222,739
-
$
423,577
Cont'd
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Pioneer
Museum
Fund
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
CDBG
Economic
Development
Revolving
Loan
Fund
$
$
-
Excess (Deficiency) of Revenues over Expenditures
48
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
-
Net Change in Fund Balances
48
Fund Balances Beginning
Fund Balances Ending
48
48
Public Works
City
Manufacturing
Housing
Business
Rehabilitation
Development
Revolving
Center
Loan
Fund
Fund
100,999
$
101,047
18,044
18,044
$
4,250
2,144
6,394
$
-
MicroEnterprise
Revolving
Loan
Fund
$
7,117
7,117
CalHome
Revolving
Loan
Fund
$
247
247
28,090
28,090
45
3,600
3,645
-
17
17
44,235
44,235
(10,046)
19,097
6,394
(17)
(37,118)
245
(161,541)
(161,541)
7,353
(35,000)
(27,647)
(16,099)
(16,099)
778,159
(1,087,204)
(309,045)
18,351
18,351
(171,587)
(8,550)
(9,705)
(346,163)
18,596
74,062
$
16,122
6,620
22,742
CDBG
Housing
Revolving
Loan
Fund
(97,525) $
Page 94
722,102
713,552
4,132
$
(5,573) $
(17)
-
2
2
1,425,193
(17) $ 1,079,030
103,785
$
122,381
Cont'd
City of Oroville
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Home
Housing
Revolving
Loan
Fund
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
480
480
Housing
Rehabilitation
Revolving
Loan
Fund
$
-
City
Revolving
Loan
Fund
$
401
5,120
5,521
Plan
Retention
Fund
$
37
3,502
3,539
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
-
-
1,875
1,875
25
25
Excess (Deficiency) of Revenues over Expenditures
480
-
3,646
3,514
$
79
79
79
144,269
(244,797)
(100,528)
-
(108,525)
(108,525)
-
Net Change in Fund Balances
(100,048)
-
(104,879)
3,514
79
146,272
-
250,318
15,729
37,323
Fund Balances Ending
$
46,224
$
-
$
Page 95
145,439
$
19,243
$
-
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Beginning
Asset
Seizure
Fund
Annexation
Fund
-
$
37,402
15
45,173
45,188
Total
Special Revenue
Nonmajor
Governmental
Funds
$
260,104
167,510
331,880
3,551,339
185,788
455,849
4,952,470
-
111,267
374,164
59,215
110,541
439,095
4,514
963,364
1,350,147
3,412,307
45,188
1,540,163
-
1,686,354
(3,105,920)
(1,419,566)
45,188
120,597
8,216,948
$
45,188
$
8,337,545
Concluded
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Community Promotions Funds
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
-
Actual
Amounts
Final
$
-
$
-
Sewer Connection Fees Funds
Variance with
Final Budget
Positive
(Negative)
$
-
Budgeted Amounts
Original
$
2,100
6,699
8,799
Actual
Amounts
Final
$
$
2,100
6,699
8,799
Variance with
Final Budget
Positive
(Negative)
$
1,771
43,913
45,684
(329)
37,214
36,885
18,232
18,232
18,232
18,232
18,334
18,334
(102)
(102)
6,160
6,160
6,160
6,160
480
480
5,680
5,680
(18,232)
(18,232)
(18,334)
(102)
2,639
2,639
45,204
42,565
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
10,000
10,000
10,000
10,000
10,000
10,000
-
-
-
-
Net Change in Fund Balances
(8,232)
(8,232)
(8,334)
2,639
2,639
45,204
42,565
Fund Balances Beginning
31,016
31,016
31,016
826,166
826,166
826,166
-
22,784 $
22,682
828,805 $
871,370
Excess (Deficiency) of Revenues over Expenditures
Fund Balances Ending
$
22,784
$
Page 96
(102)
$
(102)
$
828,805
$
$
42,565
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Drainage Impact Fees Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Actual
Amounts
Final
$
2,647
1,500
4,147
2,647
1,500
4,147
$
Park Development Fees Fund
Variance with
Final Budget
Positive
(Negative)
$
4,536
1,040
5,576
1,889
(460)
1,429
Budgeted Amounts
Original
$
3,000
200
3,200
Actual
Amounts
Final
$
3,000
200
3,200
$
12,913
205
13,118
Variance with
Final Budget
Positive
(Negative)
$
9,913
5
9,918
33,160
2,000
35,160
33,160
2,000
35,160
18,091
18,091
15,069
2,000
17,069
10,549
27,500
38,049
10,549
27,500
38,049
2,405
2,405
8,144
27,500
35,644
(31,013)
(31,013)
(12,515)
18,498
(34,849)
(34,849)
10,713
45,562
-
-
-
-
-
-
-
-
Net Change in Fund Balances
(31,013)
(31,013)
(12,515)
18,498
(34,849)
(34,849)
10,713
45,562
Fund Balances Beginning
498,038
498,038
498,038
-
91,623
91,623
91,623
-
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
467,025
$
467,025
$
Page 97
485,523
$
18,498
$
56,774 $ 56,774 $
102,336
$
45,562
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Thermalito Traffic Impact Fees Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
430
430
Actual
Amounts
Final
$
430
430
$
328
328
Traffic Impact Fees Fund
Variance with
Final Budget
Positive
(Negative)
$
(102)
(102)
Budgeted Amounts
Original
$
34,293
1,500
35,793
Actual
Amounts
Final
$
$
34,293
1,500
35,793
Variance with
Final Budget
Positive
(Negative)
$
126,324
1,566
8,303
136,193
92,031
66
8,303
100,400
6,160
6,160
6,160
6,160
480
480
5,680
5,680
6,160
38,400
44,560
6,160
38,400
44,560
480
22,140
22,620
5,680
16,260
21,940
(5,730)
(5,730)
(152)
5,578
(8,767)
(8,767)
113,573
122,340
-
-
-
-
-
(5,730)
(5,730)
5,578
(8,767)
(8,767)
155,663
155,663
$ 149,933
$ 149,933
(152)
155,663
$
155,511
Page 98
$
5,578
681,258
$
672,491
113,573
681,258
$
672,491
122,340
681,258
$
794,831
$
122,340
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Drainage Citywide Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Final
$
Fund Balances Beginning
$
$
15,048
1,400
16,448
Variance with
Final Budget
Positive
(Negative)
$
18,542
1,065
19,607
3,494
(335)
3,159
Budgeted Amounts
Original
$
530
530
Actual
Amounts
Final
$
530
530
$
Variance with
Final Budget
Positive
(Negative)
$
194
194
(336)
(336)
6,160
216,000
222,160
6,160
216,000
222,160
2,175
2,175
3,985
216,000
219,985
91,000
100
91,100
91,000
100
91,100
(205,712)
(205,712)
17,432
223,144
(90,570)
(90,570)
-
-
(91,000)
(91,000)
(91,000)
(91,000)
(90,570)
(90,570)
(90,806)
(236)
132,307
132,307
132,307
-
Net Change in Fund Balances
Fund Balances Ending
15,048
1,400
16,448
Actual
Amounts
Local Transportation Fund
-
-
(205,712)
(205,712)
17,432
494,307
494,307
494,307
288,595 $
511,739
288,595
$
Page 99
223,144
$
223,144
$
41,737 $
41,737 $
-
91,000
100
91,100
194
90,764
41,501 $
(236)
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Regional Surface Transportation Program Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
1,327
200,000
201,327
Actual
Amounts
Final
$
1,327
200,000
201,327
$
1,218
359,436
360,654
Canine Fund
Variance with
Final Budget
Positive
(Negative)
$
(109)
159,436
159,327
Budgeted Amounts
Original
$
-
Actual
Amounts
Final
$
-
$
-
Variance with
Final Budget
Positive
(Negative)
$
2
17,475
17,477
2
17,475
17,477
200,000
200,000
200,000
200,000
2,000
2,000
198,000
198,000
9,342
9,342
9,342
9,342
9,842
9,842
1,327
1,327
358,654
357,327
(9,342)
(9,342)
7,635
16,977
-
-
-
-
-
-
1,327
1,327
358,654
(9,342)
(9,342)
7,635
16,977
396,037
396,037
396,037
-
-
-
-
397,364
$
-
397,364
$
754,691
Page 100
357,327
$
357,327
$
(9,342) $
(9,342) $
7,635 $
(500)
(500)
16,977
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Technology Fee Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
Final
57
39,520
39,577
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
344
14,156
14,500
344
14,156
14,500
344
11,000
11,344
3,156
3,156
-
Excess (Deficiency) of Revenues over Expenditures
39,580
39,580
28,233
(11,347)
-
-
-
39,580
39,580
(27,774)
(27,774)
Fund Balances Ending
$
11,806
$
$
-
$
Original
80
54,000
54,080
Fund Balances Beginning
-
Variance with
Final Budget
Positive
(Negative)
Budgeted Amounts
80
54,000
54,080
Net Change in Fund Balances
$
Variance with
Final Budget
Positive
(Negative)
(23)
(14,480)
(14,503)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
-
Actual
Amounts
SB-1186 Fees Fund
$
-
Actual
Amounts
Final
$
-
$
-
$
-
1
1,135
1,136
1
1,135
1,136
-
-
-
-
-
1,131
1,131
-
-
-
-
-
28,233
(11,347)
-
-
1,131
1,131
(27,774)
-
246
246
11,806 $
Page 101
459
$
(11,347)
$
246
$
246
5
-
(5)
-
5
246
$
1,377 $
(5)
1,131
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Recycling Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
Final
$
164
3,456
12,948
10
16,578
(123)
(1,544)
161
10
(1,496)
6,000
32,079
38,079
6,000
32,079
38,079
4,034
15,858
19,892
Excess (Deficiency) of Revenues over Expenditures
(20,005)
(20,005)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
(22,921)
(22,921)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
$
Variance with
Final Budget
Positive
(Negative)
$
287
5,000
12,787
18,074
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
287
5,000
12,787
18,074
Actual
Amounts
Special Gas Tax 2107 & 2107.5 Fund
Budgeted Amounts
Original
$
-
Actual
Amounts
Final
$
-
$
-
Variance with
Final Budget
Positive
(Negative)
$
(34)
28,524
28,490
35
99,560
99,595
35
99,560
99,595
1
128,084
128,085
1,966
16,221
18,187
500
500
500
500
118
118
382
382
(3,314)
16,691
99,095
99,095
127,967
28,872
(22,921)
(22,921)
(22,592)
(22,592)
329
329
(107,000)
(107,000)
(107,000)
(107,000)
(106,757)
(106,757)
(42,926)
(42,926)
(25,906)
17,020
(7,905)
(7,905)
21,210
29,115
86,211
86,211
86,211
-
10,683
10,683
10,683
-
43,285 $
60,305
43,285
$
Page 102
$
17,020
$
2,778
$
2,778
$
31,893 $
243
243
29,115
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Special Gas Tax 186.1 & 2106 Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
-
Actual
Amounts
Final
$
-
$
-
74
58,200
58,274
74
58,200
58,274
370
370
370
370
57,904
57,904
70,852
(59,851)
(59,851)
(59,851)
(59,851)
(60,221)
(60,221)
Net Change in Fund Balances
(1,947)
(1,947)
10,631
Fund Balances Beginning
17,506
17,506
17,506
15,559 $
28,137
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
15,559
$
Variance with
Final Budget
Positive
(Negative)
$
23
70,829
70,852
-
Page 103
Special Gas Tax 2105 Fund
(51)
12,629
12,578
Budgeted Amounts
Original
$
Final
$
285
199,490
199,775
$
-
370
370
370
370
12,208
199,405
199,405
341,531
(256,568)
(256,568)
(256,568)
(256,568)
(256,568)
(256,568)
11,838
(57,163)
(57,163)
84,963
-
50,646
50,646
50,646
(6,517) $
(6,517) $
11,838
$
$
63
341,468
341,531
370
370
(370)
(370)
$
285
199,490
199,775
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
-
135,609 $
(222)
141,978
141,756
370
370
142,126
142,126
142,126
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Special Aviation Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
178,700
1,378,243
1,556,943
Actual
Amounts
Final
$
584,223
1,327,185
1,911,408
Housing Administration Fund
Variance with
Final Budget
Positive
(Negative)
$
15,009
(79,769)
294,849
230,089
Budgeted Amounts
Original
$
-
Actual
Amounts
Final
$
-
$
-
Variance with
Final Budget
Positive
(Negative)
$
178,700
1,378,243
1,556,943
193,709
1,298,474
294,849
1,787,032
$
-
584,223
1,327,185
1,911,408
439,095
1,134,409
1,573,504
145,128
192,776
337,904
546,739
546,739
546,739
546,739
546,580
546,580
159
159
159
Excess (Deficiency) of Revenues over Expenditures
(354,465)
(354,465)
213,528
567,993
(546,739)
(546,739)
(546,580)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
147,000
(105,776)
41,224
147,000
(105,776)
41,224
147,000
(86,776)
60,224
19,000
19,000
529,126
529,126
529,126
529,126
542,198
542,198
Net Change in Fund Balances
(313,241)
(313,241)
273,752
586,993
(17,613)
(17,613)
(4,382)
13,231
107,109
107,109
107,109
13,607
13,607
13,607
-
(4,006) $
(4,006) $
Fund Balances Beginning
Fund Balances Ending
$
(206,132) $
(206,132) $
380,861
Page 104
$
586,993
$
9,225 $
13,072
13,072
13,231
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
EDBG Fund
Asset Seizure Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
126,240
711,292
148,194
985,726
Actual
Amounts
Final
$
126,240
711,292
148,194
985,726
$
81,234
313,252
85,758
480,244
Variance with
Final Budget
Positive
(Negative)
$
(45,006)
(398,040)
(62,436)
(505,482)
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
589,641
2,750
592,391
589,641
2,750
592,391
249,580
249,580
340,061
2,750
342,811
Excess (Deficiency) of Revenues over Expenditures
393,335
393,335
230,664
(162,671)
(465,777)
(465,777)
(465,777)
(465,777)
(465,580)
(465,580)
Net Change in Fund Balances
(72,442)
(72,442)
(234,916)
Fund Balances Beginning
182,897
182,897
182,897
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
110,455
$
110,455
$
(52,019) $
Page 105
Budgeted Amounts
Original
$
197
197
(162,474)
(162,474)
$
110
110
Actual
Amounts
Final
$
$
110
110
-
Variance with
Final Budget
Positive
(Negative)
$
70
(1,300)
(1,230)
(40)
(1,300)
(1,340)
-
-
(1,230)
(1,340)
-
-
(1,230)
(1,340)
-
-
-
110
110
-
-
110
110
34,001
34,001
34,001
34,111 $
34,111 $
32,771 $
(1,340)
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Public Safety Augmentation Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
99,403
99,403
Actual
Amounts
Final
$
99,403 $
99,403
Police Supplemental Law Enforcement Fund
Variance with
Final Budget
Positive
(Negative)
104,289 $
61
104,350
4,886
61
4,947
-
-
Budgeted Amounts
Original
$
100
100,000
100,100
-
-
99,403
99,403
104,350
4,947
100,100
(130,000)
(130,000)
(130,000)
(130,000)
(130,000)
(130,000)
-
Net Change in Fund Balances
(30,597)
(30,597)
(25,650)
Fund Balances Beginning
149,450
149,450
149,450
118,853 $
123,800
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
118,853
$
Page 106
$
Actual
Amounts
Final
$
$
128
(6,089)
(5,961)
-
100,100
94,139
(5,961)
(138,530)
(138,530)
(138,530)
(138,530)
(138,531)
(138,531)
-
4,947
(38,430)
(38,430)
(44,392)
(5,962)
-
111,737
111,737
111,737
-
$
73,307 $
-
$
228
93,911
94,139
-
4,947
-
100
100,000
100,100
Variance with
Final Budget
Positive
(Negative)
73,307 $
67,345 $
(1)
(1)
(5,962)
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Law Enforcement Block Grant Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
193,842
193,842
Actual
Amounts
Final
$
$
193,842
193,842
199
143,178
143,377
Law Enforcement Impact Fee Fund
Variance with
Final Budget
Positive
(Negative)
$
199
(50,664)
(50,465)
Budgeted Amounts
Original
$
680
212
892
Actual
Amounts
Final
$
680
212
892
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
75,424
20,030
95,454
75,424
20,030
95,454
72,164
10,788
82,952
3,260
9,242
12,502
6,160
6,160
6,160
6,160
Excess (Deficiency) of Revenues over Expenditures
98,388
98,388
60,425
(37,963)
(5,268)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
(254,858)
(254,858)
(254,858)
(254,858)
(68,833)
(68,833)
186,025
186,025
Net Change in Fund Balances
(156,470)
(156,470)
(8,408)
148,062
125,654
125,654
125,654
(30,816) $
(30,816) $
117,246
Fund Balances Beginning
Fund Balances Ending
$
Page 107
$
148,062
$
$
Variance with
Final Budget
Positive
(Negative)
$
1,995
115
2,110
1,315
(97)
1,218
480
480
5,680
5,680
(5,268)
1,630
6,898
-
-
-
-
(5,268)
(5,268)
1,630
6,898
53,844
53,844
53,844
-
48,576 $
48,576 $
55,474 $
6,898
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Miscellaneous Grant Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
162,900
30,000
192,900
Actual
Amounts
Final
$
Variance with
Final Budget
Positive
(Negative)
273,202
3,900
181,000
458,102
273,202
3,900
181,000
458,102
110,853
4,028
12,240
127,121
162,349
(128)
168,760
330,981
13,160
13,160
13,160
13,160
480
480
12,680
12,680
(265,202)
(265,202)
99,954
365,156
(12,554)
(12,554)
542
13,096
23,690
(34,790)
(11,100)
23,690
(34,790)
(11,100)
23,690
(18,005)
5,685
16,785
16,785
-
-
(276,302)
(276,302)
105,639
381,941
(12,554)
(12,554)
(60,861)
(60,861)
(60,861)
20,873
20,873
Page 108
$
$
381,941
$
$
525
81
606
Final
20
(20,615)
54,770
34,175
44,778
-
Original
Actual
Amounts
8,319 $
$
525
81
606
Variance with
Final Budget
Positive
(Negative)
20
142,285
84,770
227,075
(337,163) $
$
Budgeted Amounts
$
162,900
30,000
192,900
(337,163) $
-
Fire Suppression Impact Fee Fund
8,319 $
$
977
45
1,022
542
20,873
21,415 $
452
(36)
416
13,096
13,096
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Contingency Fund
Fire Grant Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
-
Actual
Amounts
Final
$
-
$
-
Variance with
Final Budget
Positive
(Negative)
$
-
Budgeted Amounts
Original
$
291,346
291,346
Actual
Amounts
Final
$
291,346
291,346
$
Variance with
Final Budget
Positive
(Negative)
$
240
309,559
309,799
240
18,213
18,453
75,000
75,000
75,000
75,000
71,051
71,051
3,949
3,949
87,225
316,633
403,858
87,225
316,633
403,858
291,391
143,712
435,103
(204,166)
172,921
(31,245)
(75,000)
(75,000)
(71,051)
3,949
(112,512)
(112,512)
(125,304)
(12,792)
-
-
-
-
15,334
15,334
15,334
15,334
15,334
15,334
-
Net Change in Fund Balances
(75,000)
(75,000)
(71,051)
3,949
(97,178)
(97,178)
(109,970)
(12,792)
Fund Balances Beginning
346,621
346,621
346,621
-
125,418
125,418
125,418
-
271,621 $
275,570
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Ending
$
271,621
$
Page 109
$
3,949
$
28,240
$
28,240 $
15,448 $
(12,792)
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
PEG Fee Fund
General Government Development Impact Fee Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
-
Actual
Amounts
Final
$
-
$
28,600
114
28,714
Variance with
Final Budget
Positive
(Negative)
$
28,600
114
28,714
Budgeted Amounts
Original
$
$
744
25
769
Actual
Amounts
Final
$
744
25
769
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
-
-
-
-
6,160
6,160
6,160
6,160
Excess (Deficiency) of Revenues over Expenditures
-
-
28,714
28,714
(5,391)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
-
-
-
-
Net Change in Fund Balances
-
-
28,714
41,569
41,569
41,569
41,569 $
70,283
Fund Balances Beginning
Fund Balances Ending
$
41,569
$
Page 110
$
2,223
4
2,227
Variance with
Final Budget
Positive
(Negative)
$
1,479
(21)
1,458
480
480
5,680
5,680
(5,391)
1,747
7,138
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
-
28,714
(10,391)
(10,391)
(3,253)
7,138
-
6,399
6,399
6,399
-
28,714
$
(3,992) $
(3,992) $
3,146
$
7,138
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Lighting & Landscape Maintenance Districts Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
Final
Original
43,746
43,746
29,257
29,257
14,489
14,489
43,682
43,682
43,682
43,682
2,233
2,233
18,083
15,850
(41,899)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
(13,111)
(13,111)
(13,111)
(13,111)
(2,704)
(2,704)
10,407
10,407
Net Change in Fund Balances
(10,878)
(10,878)
15,379
14,931
14,931
14,931
Fund Balances Ending
$
4,053 $
4,053 $
Page 111
30,310 $
$
1,628
155
1,783
Actual
Amounts
Final
43,746
43,746
Fund Balances Beginning
1,330
31
1,361
Budgeted Amounts
47,309 $
31
47,340
Excess (Deficiency) of Revenues over Expenditures
$
Variance with
Final Budget
Positive
(Negative)
45,979 $
45,979
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
45,979
45,979
Actual
Amounts
Benefit Assessment Districts Fund
$
1,628
155
1,783
$
Variance with
Final Budget
Positive
(Negative)
2,000 $
126
2,126
372
(29)
343
1,997
1,997
41,685
41,685
(41,899)
129
42,028
(9,607)
(9,607)
(9,607)
(9,607)
(187)
(187)
9,420
9,420
26,257
(51,506)
(51,506)
(58)
51,448
-
61,074
61,074
26,257
$
9,568
$
9,568
61,074
$
61,016 $
51,448
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Westside Public Service Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
46,500
446
46,946
Actual
Amounts
Final
$
46,500 $
446
46,946
1,417
1,417
767
767
45,529
45,529
38,594
-
-
45,529
183,976
$
Variance with
Final Budget
Positive
(Negative)
38,953 $
408
39,361
1,417
1,417
229,505
Public Safety Services Fund
(7,547)
(38)
(7,585)
Budgeted Amounts
Original
$
Final
46,500 $
446
46,946
46,500 $
446
46,946
38,953 $
408
39,361
(7,547)
(38)
(7,585)
1,417
1,417
1,417
1,417
767
767
(6,935)
45,529
45,529
38,594
(6,935)
-
-
-
-
-
-
45,529
38,594
(6,935)
45,529
45,529
38,594
(6,935)
183,976
183,976
-
184,145
184,145
184,145
-
229,674 $
222,739
229,505
$
222,570
Page 112
650
650
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$
(6,935)
$
229,674
$
650
650
$
(6,935)
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Supplemental Benefits Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
908
261,680
262,588
Actual
Amounts
Final
Variance with
Final Budget
Positive
(Negative)
189,529
189,529
106,513
106,513
83,016
83,016
-
-
73,059
73,059
232,921
159,862
-
-
-
-
-
-
73,059
73,059
232,921
-
-
190,656
190,656
190,656
263,715 $
423,577
Page 113
$
159,862
$
159,862
-
Final
189,529
189,529
-
(578)
77,424
76,846
Original
Actual
Amounts
330
339,104
339,434
$
$
Budgeted Amounts
$
908
261,680
262,588
263,715
$
Pioneer Museum Fund
$
100,999
$
100,999
-
$
100,999
$
-
48
-
48
-
48
-
48
48
-
48
48
100,999
$
-
Variance with
Final Budget
Positive
(Negative)
100,999
$
101,047 $
48
48
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Public Works Manufacturing Business Development Center Fund
Variance with
Final Budget
Positive
(Negative)
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
72,255
72,255
Actual
Amounts
Final
$
$
72,255
72,255
18,044
18,044
City Housing Rehabilitation Revolving Loan Fund
$
(54,211)
(54,211)
Budgeted Amounts
Original
$
Actual
Amounts
Final
$
51,091
99,363
150,454
$
51,091
99,363
150,454
Variance with
Final Budget
Positive
(Negative)
$
16,122
6,620
22,742
(34,969)
(92,743)
(127,712)
45
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
37,274
37,274
37,274
37,274
28,090
28,090
9,184
9,184
181,275
181,275
181,275
181,275
3,600
3,645
(45)
177,675
177,630
Excess (Deficiency) of Revenues over Expenditures
34,981
34,981
(10,046)
(45,027)
(30,821)
(30,821)
19,097
49,918
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
(154,175)
(154,175)
(154,175)
(154,175)
(161,541)
(161,541)
(7,366)
(7,366)
(51,500)
(51,500)
(51,500)
(51,500)
7,353
(35,000)
(27,647)
7,353
16,500
23,853
Net Change in Fund Balances
(119,194)
(119,194)
(171,587)
(52,393)
(82,321)
(82,321)
(8,550)
73,771
74,062
74,062
74,062
-
722,102
722,102
Fund Balances Beginning
Fund Balances Ending
$
(45,132) $
(45,132) $
Page 114
(97,525) $
(52,393)
$
639,781
$
639,781
722,102
$
713,552 $
73,771
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
CDBG Economic Development Revolving Loan Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
7,285
8,215
15,500
Final
$
$
7,285
8,215
15,500
4,250
2,144
6,394
Variance with
Final Budget
Positive
(Negative)
$
(3,035)
(6,071)
(9,106)
-
-
-
-
15,500
15,500
6,394
(9,106)
(16,099)
(16,099)
(16,099)
(16,099)
(16,099)
(16,099)
-
(599)
(599)
(9,705)
(9,106)
4,132
-
4,132
$
Actual
Amounts
CDBG Housing Revolving Loan Fund
3,533
4,132
$
3,533
$
Page 115
(5,573) $
(9,106)
Budgeted Amounts
Original
$
Actual
Amounts
Final
-
$
-
-
-
-
$
17
17
17
(17)
(17)
(17)
-
-
-
-
-
(17)
(17)
(17)
-
-
-
-
-
(17) $
(17) $
(17) $
17
-
-
-
-
$
$
Variance with
Final Budget
Positive
(Negative)
17
-
17
-
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Micro- Enterprise Revolving Loan Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
5,500
5,500
Final
$
$
5,500
5,500
7,117
7,117
Variance with
Final Budget
Positive
(Negative)
$
1,617
1,617
Original
$
416
416
Actual
Amounts
Final
$
416
416
75,266
75,266
44,235
44,235
31,031
31,031
23,750
23,750
23,750
23,750
(69,766)
(69,766)
(37,118)
32,648
(23,334)
(23,334)
360,000
(1,083,131)
(723,131)
360,000
(1,083,131)
(723,131)
778,159
(1,087,204)
(309,045)
418,159
(4,073)
414,086
-
(792,897)
(792,897)
(346,163)
446,734
632,296
1,425,193
$
632,296 $
1,425,193
1,079,030
Page 116
$
446,734
Variance with
Final Budget
Positive
(Negative)
Budgeted Amounts
75,266
75,266
1,425,193
$
Actual
Amounts
CalHome Revolving Loan Fund
$
$
247
247
$
2
23,748
23,748
245
23,579
-
18,351
18,351
18,351
18,351
(23,334)
(23,334)
18,596
41,930
103,785
103,785
103,785
-
80,451
$
80,451 $
-
(169)
(169)
2
-
122,381 $
41,930
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Home Housing Revolving Loan Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
Actual
Amounts
Final
-
$
-
40
40
40
-
Excess (Deficiency) of Revenues over Expenditures
480
480
40
-
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
$
40
40
Housing Rehabilitation Revolving Loan Fund
Variance with
Final Budget
Positive
(Negative)
$
440
440
Budgeted Amounts
Original
$
-
Actual
Amounts
Final
$
-
$
-
Variance with
Final Budget
Positive
(Negative)
$
-
-
-
-
-
-
-
480
440
-
-
-
-
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
105,018
(244,797)
(139,779)
105,018
(244,797)
(139,779)
144,269
(244,797)
(100,528)
39,251
39,251
-
-
-
-
Net Change in Fund Balances
(139,739)
(139,739)
(100,048)
39,691
-
-
-
-
146,272
146,272
146,272
-
-
-
-
-
Fund Balances Beginning
Fund Balances Ending
$
6,533
$
6,533 $
46,224
Page 117
$
39,691
$
-
$
-
$
-
$
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
City Revolving Loan Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
250
250
Actual
Amounts
Final
$
$
250
250
401
5,120
5,521
Plan Retention Fund
Variance with
Final Budget
Positive
(Negative)
$
151
5,120
5,271
Budgeted Amounts
Original
$
Actual
Amounts
Final
-
$
-
60
$
60
-
60
60
-
Variance with
Final Budget
Positive
(Negative)
$
37
3,502
3,539
9,995
9,995
9,995
9,995
1,875
1,875
8,120
8,120
15,742
15,742
15,742
15,742
25
15,717
15,717
(9,745)
(9,745)
3,646
13,391
(15,682)
(15,682)
3,514
19,196
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
(118,525)
(118,525)
(118,525)
(118,525)
(108,525)
(108,525)
10,000
10,000
-
-
-
-
Net Change in Fund Balances
(128,270)
(128,270)
(104,879)
23,391
(15,682)
(15,682)
3,514
19,196
250,318
250,318
250,318
-
15,729
15,729
15,729
-
122,048 $
145,439
Excess (Deficiency) of Revenues over Expenditures
Fund Balances Beginning
Fund Balances Ending
$
122,048
$
Page 118
$
23,391
$
47
$
47 $
25
(23)
3,502
3,479
19,243 $
19,196
Cont'd
City of Oroville
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Special Revenue Nonmajor Governmental Funds
June 30, 2014
Annexation Fund
Asset Seizure Fund
Budgeted Amounts
Original
REVENUES
Taxes:
Other taxes
License and permits
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Public Safety
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
148
148
Actual
Amounts
Final
$
148
148
37,000
37,000
37,000
37,000
(36,852)
(36,852)
-
-
(36,852)
(36,852)
37,323
37,323
471
$
$
-
Variance with
Final Budget
Positive
(Negative)
$
79
79
79
-
471
79
37,323
$
Page 119
37,402
$
(69)
(69)
Budgeted Amounts
Original
$
-
Actual
Amounts
Final
$
-
$
-
Variance with
Final Budget
Positive
(Negative)
$
-
15
45,173
45,188
15
45,173
45,188
37,000
37,000
-
-
-
-
36,931
-
-
45,188
45,188
-
-
-
-
-
36,931
-
-
45,188
45,188
-
-
-
-
-
36,931
$
-
$
-
$
45,188 $
45,188
Concluded
This Page Intentionally Left Blank
Page 120
NONMAJOR DEBT SERVICE FUNDS
Fund Title
City Debt Service Fund
Assessment District 1193-1 Redemption Fund
Oroville Public Financing Authority Redemption Fund
Fund Description
To account for tax revenues and debt service expenditures for sewer bonds issued to fund an
advance for construction of the sewage treatment facility.
To account for the provision and financing of the capital lease purchase of various City
equipment.
To account for the provision and financing of public improvements that benefited the Oroville
Assessment District.
Page 121
City of Oroville
Combining Balance Sheet
Debt Service Nonmajor Governmental Funds
June 30, 2014
City
Debt
Service
Fund
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Interest
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Unearned revenues
Advances from other funds
Total liabilities
Fund Balances:
Restricted:
Debt service
Assigned:
Debt service
Unassigned
Total fund balances
Total liabilities and fund balances
$
$
$
-
252,555
252,555
Assessment
District
1193-1
Redemption
Fund
Oroville
Public
Financing
Authority
Redemption
Fund
Total
Debt Service
Nonmajor
Governmental
Funds
$
118,378
-
$
$
118,378
6,467
$ 2,025,717
$
$
$
$
$
-
$
Page 122
(252,555)
(252,555)
$
82,050
82,050
36,328
36,328
118,378
68,302
1,950,948
-
2,025,717
2,025,717
$ 2,025,717
186,680
1,950,948
6,467
2,144,095
82,050
252,555
334,605
2,025,717
$
36,328
(252,555)
1,809,490
2,144,095
City of Oroville
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Debt Service Nonmajor Governmental Funds
June 30, 2014
City
Debt
Service
Fund
REVENUES
Other revenues
Total Revenues
$
EXPENDITURES
Debt service
Principal retirement
Interest and fiscal charges
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
$
573,957
573,957
Assessment
District
1193-1
Redemption
Fund
Oroville
Public
Financing
Authority
Redemption
Fund
Total
Debt Service
Nonmajor
Governmental
Funds
$
$
$
-
-
573,957
573,957
339,200
360,696
699,896
-
815,000
1,081,634
1,896,634
1,154,200
1,442,330
2,596,530
(125,939)
-
(1,896,634)
(2,022,573)
68,000
68,000
(4,443)
(4,443)
1,918,775
1,918,775
1,986,775
(4,443)
1,982,332
(57,939)
(4,443)
22,141
(40,241)
(194,616)
40,771
2,003,576
36,328
$ 2,025,717
(252,555)
Page 123
$
1,849,731
$
1,809,490
This Page Intentionally Left Blank
Page 124
NONMAJOR CAPITAL PROJECTS FUNDS
Fund Title
Equipment Replacement Fund
Fund Description
To account for major purchases of replacement equipment various departments within the City.
New Capital Equipment Fund
To account for major purchases of new equipment and small capital p from various departments
within the City.
To account for capital projects for the City's infrastructure funded by the Oroville
Redevelopment Agency or other funds
To account for major renovations and repairs to City's buildings and improvements.
Capital Projects Fund
Building Facility Capital Improvement Fund
Page 125
City of Oroville
Combining Balance Sheet
Capital Projects Nonmajor Governmental Funds
June 30, 2014
New
Capital
Equipment
Fund
Equipment
Replacement
Fund
ASSETS
Cash and investments
Receivables:
Accounts
Due from other funds
Loans receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable
Interfund
Committed:
General Government
Unassigned
Total fund balances
Total liabilities and fund balances
$
361,905
$
17,799
29,154
2,254
411,112
$
$
13,369
13,369
$
28,655
$
28,655
$
-
29,154
-
368,589
397,743
411,112
28,655
28,655
28,655
Page 126
$
Capital
Projects
Fund
$
455,883
$
455,883
$
378
378
Building
Facility
Capital
Improvement
Fund
Total
Capital Projects
Nonmajor
Governmental
Funds
$
28,384
$
874,827
$
28,384
$
17,799
29,154
2,254
924,034
$
-
$
455,505
455,505
455,883
$
-
$
378
13,369
13,747
-
29,154
28,384
28,384
28,384
881,133
910,287
924,034
$
City of Oroville
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects Nonmajor Governmental Funds
June 30, 2014
New
Capital
Equipment
Fund
Equipment
Replacement
Fund
REVENUES
Interest, rents and concessions
Intergovernmental revenues
Current service charges
Other revenues
Total Revenues
$
546
9,845
10,391
EXPENDITURES
Current:
General Government
Parks and Leisure
Capital outlay
Total Expenditures
2,352
1,808
4,160
Excess (Deficiency) of Revenues over Expenditures
6,231
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
19,000
(78,334)
(59,334)
Net Change in Fund Balances
(53,103)
Fund Balances Beginning
450,846
Fund Balances Ending
$
397,743
$
13
13
Capital
Projects
Fund
$
-
$
$
-
559
56,698
9,845
67,102
-
2,352
790
49,247
52,389
8,469
-
14,713
-
-
19,000
(78,334)
(59,334)
13
8,469
-
(44,621)
28,642
447,036
28,384
954,908
-
Page 127
Total
Capital Projects
Nonmajor
Governmental
Funds
790
47,439
48,229
13
$
56,698
56,698
Building
Facility
Capital
Improvement
Fund
28,655
$
455,505
$
28,384
$
910,287
City of Oroville
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Capital Projects Nonmajor Governmental Funds
June 30, 2014
Equipment Replacement Fund
Budgeted Amounts
Original
REVENUES
Interest, rents and concessions
Intergovernmental revenues
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Parks and Leisure
Capital outlay
Total Expenditures
1,740
1,740
Actual
Amounts
Final
$
1,740
1,740
$
546
9,845
10,391
New Capital Equipment Fund
Variance with
Final Budget
Positive
(Negative)
$
(1,194)
9,845
8,651
Budgeted Amounts
Original
$
270
270
Actual
Amounts
Final
$
270
270
$
13
13
12,147
42,010
54,157
2,352
1,808
4,160
9,795
40,202
49,997
-
-
Excess (Deficiency) of Revenues over Expenditures
(52,417)
(52,417)
6,231
58,648
270
270
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
19,000
(78,334)
(59,334)
19,000
(78,334)
(59,334)
19,000
(78,334)
(59,334)
-
-
-
(111,751)
(111,751)
(53,103)
58,648
270
270
13
450,846
450,846
450,846
-
28,642
28,642
28,642
Fund Balances Beginning
Fund Balances Ending
$
339,095
$
339,095
$
397,743
Page 128
$
58,648
$
28,912
$
28,912
$
-
12,147
42,010
54,157
Net Change in Fund Balances
Variance with
Final Budget
Positive
(Negative)
-
13
(257)
-
$
(257)
(257)
-
28,655
(257)
$
(257)
Cont'd
City of Oroville
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Capital Projects Nonmajor Governmental Funds
June 30, 2014
Capital Projects Fund
Building Facility Capital Improvement Fund
Variance with
Final Budget
Positive
(Negative)
Budgeted Amounts
Original
REVENUES
Interest, rents and concessions
Intergovernmental revenues
Other revenues
Total Revenues
$
EXPENDITURES
Current:
General Government
Parks and Leisure
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Fund Balances Beginning
Fund Balances Ending
847,392
847,392
$
$
847,392
847,392
$
56,698
56,698
$
(790,694)
(790,694)
Original
$
Actual
Amounts
Final
-
$
-
$
-
$
-
966,667
966,667
966,667
966,667
790
47,439
48,229
(790)
919,228
918,438
-
-
-
-
(119,275)
(119,275)
8,469
127,744
-
-
-
-
-
-
-
-
-
-
-
-
28,384
28,384
28,384
-
-
Net Change in Fund Balances
Actual
Amounts
Final
Variance with
Final Budget
Positive
(Negative)
Budgeted Amounts
-
(119,275)
(119,275)
447,036
447,036
327,761
$
327,761
-
-
8,469
127,744
447,036
$
455,505
Page 129
$
127,744
$
28,384
$
28,384
$
28,384
$
Concluded
This Page Intentionally Left Blank
Page 130
INTERNAL SERVICE FUNDS
Fund Title
Payroll Revolving Fund
Workers' Compensation Revolving Fund
Unemployment Insurance Fund
Fund Description
To account for the collection and disbursements of resources relative to payroll expenditures. A
separate bank account is maintained specifically for payroll purposes.
To account for the financing of materials and supplies provided to various departments of the
City.
To account for resources earmarked for future repairs and maintenance on vehicles and
equipment.
To account for activities relative to the City's workers' compensation self-insurance program.
To account for activities relative to the City's unemployment compensation insurance program.
Vision Insurance Fund
To account for activities relative to the City's vision insurance program.
Stores Revolving Fund
Vehicle Maintenance Fund
Page 131
City of Oroville
Combining Statement of Net Position
Internal Service Funds
June 30, 2014
Stores
Revolving
Fund
Vehicle
Maintenance
Fund
Workers'
Compensation Unemployment
Revolving
Insurance
Fund
Fund
45,153
45,153
$ 63,851
6,127
$ 69,978
$
42,880
42,880
$
$
418
418
$
3,154
15,484
40,527
59,165
$
$
45,153
45,153
$
$
-
$ 69,560
$ 69,560
$
$
Payroll
Revolving
Fund
ASSETS
Current assets:
Cash and investments
Accounts receivable
Inventory
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Payroll related liabilities
Other payables and accruals
Due to other funds
Claims payable
Total liabilities
NET POSITION
Unrestricted
Total net position
$
$
$
$
$
$
606,169
606,169
$
$
$
22,873
306,087
328,960
(16,285) $
(16,285) $
277,209
277,209
Page 132
$
Vision
Insurance
Fund
87,790
87,790
$
$
$
8,025
8,025
$
$
79,765
79,765
$
Total
Governmental
Activities Internal
Service Funds
113,606
113,606
$
$
$
1,122
1,122
$
35,174
60,637
418
40,527
306,087
442,843
$
$
112,484
112,484
$
$
522,733
522,733
$
$
916,569
49,007
965,576
City of Oroville
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
For the Year Ended June 30, 2014
Payroll
Revolving
Fund
OPERATING REVENUES
Charges for services
Reimbursements
Total operating revenues
$
OPERATING EXPENSES
Salaries and benefits
Supplies
Other services and charges
Claims
Total operating expenses
-
Stores
Revolving
Fund
$
33,973
33,973
Vehicle
Maintenance
Fund
$
433,036
433,036
Workers'
Compensation
Revolving
Fund
Unemployment
Insurance
Fund
$
$
323,437
323,437
29,888
29,888
Total
Governmental
Activities Internal
Service Funds
Vision
Insurance
Fund
$
39,293
39,293
$
859,627
859,627
-
14,568
15,020
29,588
153,001
280,911
18,132
452,044
226
424,242
424,468
226
26,720
26,946
226
23,048
23,274
153,001
295,479
33,830
474,010
956,320
-
4,385
(19,008)
(101,031)
2,942
16,019
(96,693)
NONOPERATING REVENUES(EXPENSES)
Investment earnings
Total nonoperating revenues(expenses)
-
-
-
1,111
1,111
136
136
126
126
Income (loss) before operating transfers
-
4,385
(19,008)
(99,920)
3,078
16,145
(95,320)
Transfers out
-
-
-
-
-
(35,001)
(35,001)
Change in net position
-
4,385
(19,008)
(99,920)
3,078
(18,856)
(130,321)
Total net position - beginning
Prior period adjustments
-
66,010
(835)
2,723
-
308,721
68,408
76,687
-
131,340
-
585,481
67,573
Operating income (loss)
Total net position - beginning, as adjusted
Total net position - ending
$
-
$
65,175
69,560
$
Page 133
2,723
(16,285) $
377,129
277,209
$
76,687
79,765
$
131,340
112,484
1,373
1,373
$
653,054
522,733
City of Oroville
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2014
Payroll
Revolving
Fund
Cash flows from operating activities:
Receipts from interfund services provided
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
$
24,532
24,532
Stores
Revolving
Fund
$
33,973
(30,950)
3,023
Vehicle
Maintenance
Fund
Workers'
Compensation Unemployment
Revolving
Insurance
Fund
Fund
$
$
433,643
(288,291)
(152,477)
(7,125)
391,845
(470,113)
(78,268)
Cash flows from noncapital financing activities:
Interfund transactions
Net cash provided (used) by noncapital financing activities
-
-
-
-
Cash flows from investing activities:
Investment income
Net cash provided (used) by investing activities
-
-
-
1,111
1,111
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
$
24,532
20,621
45,153
$
3,023
60,828
63,851
$
(7,125)
7,125
-
$
-
$
4,385
$
(19,008)
Reconciliation of operating income to net cash provided (used)
by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Prior period adjustments
Change in operating assets and liabilities:
Accounts receivables
Inventory
Accounts payable
Payroll related liabilities
Other payables and accruals
Interfund receivables and payables
Claims payable
Net cash provided (used) by operating activities
-
$
24,532
24,532
(835)
-
$
(1)
(526)
3,023
Page 134
$
$
(77,157)
683,326
606,169
$
(101,031)
$
29,888
(18,921)
10,967
Vision
Insurance
Fund
$
-
$
$
2,942
39,293
(23,943)
15,350
$
(35,001)
(35,001)
136
136
11,103
76,687
87,790
Total
Governmental
Activities Internal
Service Funds
953,174
(832,218)
(152,477)
(31,521)
(35,001)
(35,001)
126
126
1,373
1,373
$
(19,525)
133,131
113,606
$
(65,149)
981,718
916,569
$
16,019
$
(96,693)
-
68,408
-
-
67,573
607
(29,775)
524
40,527
(7,125)
22,763
(68,408)
(78,268)
8,025
10,967
(669)
15,350
607
(1)
(182)
25,056
40,527
(68,408)
(31,521)
$
$
$
$
AGENCY FUNDS
Fund Title
Feather River Bluffs Funds
Special Deposit Trust Funds
Honor Grove Funds
Fund Description
To account for the activities of the Feather River Bluffs assessment bonds.
To account for the collection and payment of various deposits including performance bonds,
fire hydrant deposits, and sewer connection deposits collected for other agencies.
To account for contributions made towards the Honor Grove.
Page 135
City of Oroville
Combining Balance Sheet
Agency Funds
June 30, 2014
Feather
River
Bluffs
Funds
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Deposits payable
Due to other agencies
Total liabilities
Special
Deposit
Trust
Funds
Honor
Grove
Funds
Total
Agency
Funds
$
18,240
$ 478,238
$
194
$ 496,672
$
18,240
19
$ 478,257
$
194
19
$ 496,691
18,240
18,240
$
$
194
194
$
$
$
Page 136
11,704
279,035
187,518
$ 478,257
$
11,704
279,035
205,952
$ 496,691
City of Oroville
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2014
Balance
July 01, 2013
$
$
18,210
18,210
$
30
30
$
$
-
$
$
18,240
18,240
LIABILITIES
Current liabilities:
Due to other agencies
Total liabilities
$
$
18,210
18,210
$
$
30
30
$
$
-
$
$
18,240
18,240
Special Deposit Trust Fund
ASSETS
Cash and investments
Receivables:
Taxes
Accounts
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Deposits payable
Due to other agencies
Total liabilities
Additions
Balance
July 01, 2013
$
466,685
$
24,421
13,295
504,401
$
$
33,472
269,020
201,909
504,401
Additions
$
$
$
$
Balance
July 01, 2013
Deductions
Balance
June 30, 2014
Feather River Bluffs Fund
ASSETS
Cash and investments
Total assets
Deductions
54,269
42,716
-
24,421
13,295
80,432
19
54,288
6,557
10,015
16,572
$
$
28,325
14,391
42,716
478,238
-
$
$
$
19
478,257
11,704
279,035
187,518
478,257
Balance
June 30, 2014
$
$
194
194
$
$
-
$
$
-
$
$
194
194
LIABILITIES
Current liabilities:
Due to other agencies
Total liabilities
$
$
194
194
$
$
-
$
$
-
$
$
194
194
LIABILITIES
Current liabilities:
Accounts payable
Deposits payable
Due to other agencies
Total liabilities
Balance
July 01, 2013
$
485,089
$
24,421
13,295
522,805
$
$
33,472
269,020
220,313
522,805
Page 137
Additions
$
54,299
Deductions
$
Honor Grove Fund
ASSETS
Cash and investments
Total assets
Totals
ASSETS
Cash and investments
Receivables:
Taxes
Accounts
Total assets
Additions
$
Balance
June 30, 2014
Deductions
$
42,716
$
24,421
13,295
80,432
$
$
$
19
54,318
6,557
10,015
30
16,602
$
$
28,325
14,391
42,716
Balance
June 30, 2014
$
496,672
-
$
$
$
19
496,691
11,704
279,035
205,952
496,691
This Page Intentionally Left Blank
Page 138
STATISTICAL SECTION
Page 139
This page is intentionally blank
Page 140
This part of the City of Oroville's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue
source; property taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels
of outstanding debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the government's financial report relates to the services the City provides and the activities it performs.
Page 141
Table 1
City of Oroville
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities:
Net invetment in capital assets
Restricted
Unrestricted
Total Governmental Activities Net Position
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 19,602,707
2,117,771
10,016,196
$ 31,736,674
$ 9,496,652
4,327,621
21,453,033
$ 35,277,306
$ 9,433,101
6,785,954
22,413,007
$ 38,632,062
$ 9,049,646
4,423,121
29,717,622
$ 43,190,389
$ 11,512,305
4,063,999
30,612,745
$ 46,189,049
$ 15,022,573
5,495,347
24,688,683
$ 45,206,603
$ 15,379,291
5,841,478
27,582,885
$ 48,803,654
$ 13,110,503
34,614,096
8,150,810
$ 55,875,409
$ 13,015,066
32,687,196
8,372,009
$ 54,074,271
$ 13,298,388
33,876,457
7,618,914
$ 54,793,759
$
$
$
$
$
$
$
$
$
$
Business-type activities:
Net investment in capital assets
Restricted
Unrestricted
Total Business-Type Activities Net Posiiton
$
Primary government:
Net invetment in capital assets
Restricted
Unrestricted
Total Primary Government Net Position
$ 19,602,707
2,117,771
10,100,363
$ 31,820,841
84,167
84,167
$
444,930
444,930
$ 9,496,652
4,327,621
21,897,963
$ 35,722,236
$
739,232
739,232
$ 9,433,101
6,785,954
23,152,239
$ 39,371,294
$
868,639
868,639
$ 9,049,646
4,423,121
30,586,261
$ 44,059,028
Page 142
$
805,669
805,669
$ 11,512,305
4,063,999
31,418,414
$ 46,994,718
$
701,394
701,394
$ 15,022,573
5,495,347
25,390,077
$ 45,907,997
$
639,487
639,487
$ 15,379,291
5,841,478
28,222,372
$ 49,443,141
$
329,224
329,224
$ 13,110,503
34,614,096
8,480,034
$ 56,204,633
$
236,064
236,064
$ 13,015,066
32,687,196
8,608,073
$ 54,310,335
$
422,283
422,283
$ 13,298,388
33,876,457
8,041,197
$ 55,216,042
Table 2
City of Oroville
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2005
Expenses
Governmental Activities:
General Government
Public Safety
Public Works
Streets and Storm Drains
Transportation
Parks and Leisure
Health and Sanitation
Housing and Community Development
Interest and Fiscal Charges
Total Governmental Activities Expenses
Business-Type Activities:
Local Transportation
Total Business-Type Activities Expenses
Total Primary Government Expenses
Program Revenues
Governmental Activities:
Charges For Services:
General Government
Public Safety
Public Works
Streets and Storm Drains
Transportation
Parks and Leisure
Health and Sanitation
Housing and Community Development
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business-Type Activities:
Charges For Services:
Local Transportation
Operating Grants and Contributions
Capital Grants and Contributions
Total Business-Type Activities Program Revenues
Total Primary Government Program Revenues
Net Expense/(Revenue)
Governmental activities
Business-Type activities
Total Primary Government Net Expense
$
2,059,019
5,573,955
1,271,814
684,273
194,411
1,016,945
1,064,965
4,966,380
1,569,160
18,400,922
2006
$
1,955,466
6,039,555
1,264,877
794,733
360,690
973,716
1,120,658
7,604,125
2,020,781
22,134,601
2007
$
2,250,497
6,588,449
1,454,510
1,172,901
455,305
1,038,579
1,287,714
8,556,595
1,751,264
24,555,814
2008
$
2,333,025
6,789,797
1,596,817
1,707,890
608,313
1,064,824
1,356,115
7,375,036
1,932,990
24,764,807
2009
$
3,254,442
7,010,748
1,586,656
949,237
509,462
927,792
1,360,243
5,722,327
1,779,150
23,100,057
2010
$
2,540,032
7,139,146
1,390,260
825,763
503,689
1,230,892
1,344,401
4,843,176
1,680,975
21,498,334
2011
$
2,172,282
7,168,100
1,358,012
835,234
553,893
1,542,029
1,646,946
5,386,551
1,637,390
22,300,437
2012
$
2,408,143
7,919,128
1,252,132
1,009,836
691,645
2,731,128
1,686,298
9,734,800
1,884,524
29,317,634
2013
$
2,503,161
7,823,664
1,419,806
819,108
735,007
1,435,575
1,716,356
6,109,168
1,518,758
24,080,603
2014
$
2,571,905
7,776,039
1,266,059
638,448
1,226,718
592,427
1,493,462
3,512,865
1,965,879
21,043,802
368,189
368,189
18,769,111
450,989
450,989
22,585,590
376,907
376,907
24,932,721
429,477
429,477
25,194,284
485,875
485,875
23,585,932
294,466
294,466
21,792,800
350,471
350,471
22,650,908
505,722
505,722
29,823,356
519,619
519,619
24,600,222
488,493
488,493
21,532,295
626,967
544,773
75,777
253,481
216,123
175,143
1,403,067
2,879,717
1,089,440
1,074,987
8,339,475
474,839
524,241
203,488
897,961
317,589
110,888
1,511,202
5,486,346
3,176,966
192,709
12,896,229
516,860
588,707
518,926
515,088
475,224
121,011
1,683,329
3,939,222
3,900,722
1,995,122
14,254,211
1,045,071
529,571
418,601
503,593
556,697
190,298
1,804,262
3,223,725
3,744,832
3,345,417
15,362,067
777,362
456,466
176,576
148,727
460,937
713,658
1,728,044
1,976,395
3,562,981
1,809,680
11,810,826
625,720
113,641
206,077
50,272
560,095
16,998
1,808,105
1,040,798
2,507,962
2,130,596
9,060,264
360,093
246,808
251,008
83,120
523,175
50,880
2,136,522
2,945,493
5,187,330
755,728
12,540,157
456,382
200,056
441,321
96,294
497,683
126,649
2,359,307
1,762,107
7,049,895
934,239
13,923,933
652,142
346,903
321,388
195,273
506,070
65,633
2,474,544
2,983,632
4,899,372
343,628
12,788,585
1,044,339
586,558
90,817
168,645
126,747
292,342
2,759,432
1,346,634
2,963,505
1,280,775
10,659,794
18,386
334,796
353,182
8,692,657
18,011
504,195
522,206
13,418,435
17,989
627,198
645,187
14,899,398
6,975
520,174
527,149
15,889,216
5,051
401,230
406,281
12,217,107
6,121
540,043
546,164
9,606,428
6,991
460,262
467,253
13,007,410
10,207
475,194
485,401
14,409,334
11,206
505,692
516,898
13,305,483
8,328
575,078
583,406
11,243,200
11,289,231
79,594
11,368,825
12,438,070
(251,698)
12,186,372
15,393,701
20,321
15,414,022
11,292,018
10,384,008
2,721
(94,913)
11,294,739
10,289,095
Page 1 of 2 (continued)
10,061,447
15,007
10,076,454
9,238,372
(71,217)
9,167,155
10,301,603
(268,280)
10,033,323
9,402,740
(97,672)
9,305,068
Page 143
9,760,280
(116,782)
9,643,498
Table 2
City of Oroville
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2005
General Revenues and Other Changes In
Net Position
Governmental Activities:
Taxes:
Property Taxes
Sales and Use Taxes
Sales and Use Taxes In-Lieu
Transient Occupancy Tax
Utility Users Tax
Franchise Tax
Other Taxes
Investment Earnings
Unrestricted Grants and Contributions
Other Revenues
Transfers
Total Governmental Activities
Business-Type Activities:
Investment Earnings
Transfers
Total Business-Type Activities
Total Primary Government
Extraordinary Item
Change In Net Position
Governmental activities
Business-Type activities
Total Primary Government
$
2006
2007
2008
2009
2010
2011
2012
2013
2014
4,660,741
3,018,263
352,354
1,197,309
311,702
52,301
2,607,477
849,374
- 13,049,521
5,352,094
2,765,394
1,791,244
336,453
1,328,099
302,601
91,389
219,413
504,741
- 12,691,428
6,020,342
2,737,202
2,161,518
323,713
1,384,802
411,410
82,967
302,126
232,279
- 13,656,359
6,809,199
2,735,269
2,070,355
320,145
1,432,010
395,561
55,679
285,453
361,927
- 14,465,598
6,883,060
2,734,674
2,109,251
320,008
1,462,014
488,888
23,053
177,202
89,741
- 14,287,891
6,474,547
2,292,835
2,181,518
334,870
1,490,161
453,175
36,545
138,643
79,779
361,076
13,843,149
6,404,500
2,556,200
1,935,673
346,716
1,529,221
442,870
28,101
146,561
277,000
182,038
13,848,880
4,331,329
2,698,234
1,892,404
363,530
1,553,442
422,213
26,733
74,472
291,369
11,653,726
1,962,107
2,756,313
2,194,730
421,261
1,577,706
439,968
32,558
15,237
91,000
9,490,880
1,605,675
3,045,776
2,053,454
426,190
1,594,686
513,879
326,716
296,696
738,796
434,055
11,035,923
7,415
- 7,415
13,056,936
12,513
- 12,513
12,703,941
26,022
- 26,022
13,682,381
31,735
- 31,735
14,497,333
16,624
- 16,624
14,304,515
5,103
(361,076)
(355,973)
13,487,176
3,349
(182,038)
(178,689)
13,670,191
1,427
(291,369)
(289,942)
11,363,784
561
(91,000)
(90,439)
9,400,441
307
91,000
91,307
11,127,230
-
-
-
-
-
(2,387,525)
(491,549)
3,453,056
83,730
3,536,786
3,354,756
294,302
3,649,058
5,062,858
129,407
5,192,265
2,988,074
(7,592)
2,980,482 $
$
$
Page 144
$
2,998,660
(62,970)
2,935,690 $
(982,446)
(104,275)
(1,086,721) $
3,597,051
(61,907)
3,535,144 $
11,509,606
7,769,631
(310,263)
7,459,368 $
-
-
(1,801,138)
651,915
(93,160)
186,220
(1,894,298) $
838,135
Page 2 of 2 (concluded)
Table 3
City of Oroville
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2005
2006
2007
2008
2009
General Fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
$ 1,859,197
1,797,917
$ 3,657,114
Reserved
Unreserved
Total General Fund
$ 2,090,721
2,092,987
$ 4,183,708
$ 2,336,720
2,286,506
$ 4,623,226
$ 2,003,949
2,785,687
$ 4,789,636
$ 2,018,270
2,860,538
$ 4,878,808
All Other Governmental Funds:
Nonspendable
Restricted
Committed
Assigned
(2)
Unassigned
Reserved
Unreserved, Reported In:
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Total All Other Governmental Funds
1
2
2010(1)
2011
$ 1,826,619
23,455
951,059
562,822
1,247,468
$ 1,824,021
23,455
924,828
473,976
2,202,839
$
$ 4,611,423
$ 5,449,119
$ 4,000,858
2012
30,837
23,455
800,000
291,753
2,854,813
2013
$
32,595
23,455
1,107,229
1,872,963
978,552
$ 4,014,794
2014
$
32,594
1,188,859
20,463
1,607,181
$ 2,849,097
$ 24,984,681 $ 24,208,218 $ 24,244,936 $ 23,421,982 $ 22,468,166
10,728,656
12,031,355
9,504,531
9,717,713
11,418,955
1,611,294
1,885,323
5,702,469
4,729,430
4,034,540
10,267,952
11,290,586
2,076,673
2,192,962
3,398,319
(21,597,756)
(20,363,240)
(299,117)
(283,252)
(405,880)
$ 32,480,719
$ 36,477,244
$ 37,366,342
$ 34,614,264
$ 34,645,371
(13,411,583)
(15,048,282)
(14,273,994)
(12,707,204)
(11,045,637)
492,162
666,414
790,851
331,666
473,059
8,390,602
7,021,812
6,865,904
6,427,663
5,473,637
$ 27,951,900 $ 29,117,188 $ 30,749,103 $ 28,666,389 $ 29,546,430 $ 25,994,827
$ 29,052,242
City adopted GASB Statement No. 54 in 2010. Prior year amounts have not beeen restated.
The Oroville Redevelopment Agency (RDA) was dissolved on February 1, 2012. Residual assets and liabilities of the RDA were transferred to a private-purpose trust fund.
Page 145
$ 41,229,492
$ 39,778,835
$ 40,914,100
Table 4
City of Oroville
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 9,592,670
496,876
617,506
65,102
2,959,726
3,943,311
1,680,247
3,299,714
22,655,152
$11,967,574
200,246
461,411
72,607
5,054,138
3,964,804
1,924,401
3,235,400
26,880,581
$13,121,954
177,149
670,988
91,652
3,754,779
6,334,566
2,225,183
2,869,356
29,245,627
$13,818,218
902,469
81,311
3,407,932
7,473,793
2,150,264
3,254,837
31,088,824
$14,020,948
305,279
80,813
2,616,158
5,218,287
1,825,401
3,396,845
27,463,731
$13,263,651
273,071
105,202
2,145,611
4,437,887
2,048,720
1,819,075
24,093,217
$13,140,625
330,726
54,793
2,232,010
6,074,278
2,376,190
4,072,668
28,281,290
$11,326,272
548,712
82,220
1,777,177
8,209,369
2,716,441
1,826,304
26,486,495
$ 9,383,000
521,567
79,213
1,692,788
5,235,906
2,806,747
2,617,448
22,336,669
$ 9,632,290
558,078
85,734
1,585,439
5,045,540
3,235,033
1,642,183
21,784,297
1,963,497
5,402,885
250,969
695,956
872,758
112,766
1,072,167
4,871,635
3,423,900
1,962,238
5,980,420
251,611
813,115
832,592
270,892
1,135,167
6,493,459
3,522,838
2,188,558
6,566,957
358,093
988,692
915,284
366,683
1,238,363
8,545,882
3,029,727
2,277,407
6,941,375
392,907
998,588
984,536
525,557
1,383,795
5,410,572
7,240,127
2,574,182
7,125,145
448,931
978,716
1,103,583
425,549
1,364,720
4,941,616
4,467,125
2,485,526
6,921,467
183,024
835,452
1,067,041
420,940
1,349,585
4,800,823
4,279,952
2,130,720
6,708,238
252,524
822,465
1,334,756
465,155
1,638,361
5,349,352
1,661,626
2,277,003
7,453,132
337,704
982,306
1,288,537
548,814
1,621,346
9,284,869
2,918,624
2,399,355
7,412,037
361,507
808,367
1,006,295
586,053
1,635,955
6,105,756
1,171,490
2,456,728
7,279,920
240,738
625,486
803,675
439,095
1,395,029
4,870,805
1,575,787
1,000,000
2,752,469
321,250
22,740,252
714,162
3,286,531
25,263,025
568,333
2,899,632
7,066,747
120,659
34,853,610
3,541,299
3,257,164
32,953,327
863,369
2,991,700
27,284,636
993,160
2,938,448
26,275,418
1,052,407
2,875,124
24,290,728
1,112,124
2,197,927
30,022,386
1,130,295
1,510,953
24,128,063
1,154,200
1,442,330
22,283,793
1,617,556
(5,607,983)
(1,864,503)
(2,182,201)
3,990,562
(3,535,891)
(1,791,394)
(499,496)
10,157,834
(10,170,784)
(12,950)
9,911,653
(9,671,144)
7,260,000
(72,594)
251,501
7,679,416
9,888,613
(9,605,230)
169,347
452,730
8,378,876
(8,135,117)
145,903
389,662
8,449,394
(7,602,444)
846,950
6,884,402
(6,493,717)
264,177
654,862
6,371,795
(6,017,122)
354,673
6,899,195
(6,430,139)
469,056
(2,387,525)
(491,549)
Revenues
Taxes
Special Assessments
Licenses and Permits
Fines and Forfeitures
Interest, Rents, and Concessions
Intergovernmental Revenues
Current Service Charges
Other Revenues
Total Revenues
Expenditures
General Government
Public Safety
Public Works
Streets and Storm Drains
Parks and Leisure
Transportation
Health and Sanitation
Housing and Community Development
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Payoff Unfunded Pension Expense
Other Charges
Total Expenditures
Excess of Revenues Over(Under) Expenditures
(85,100)
1
179,095
Other Financing Sources(Uses)
Transfers In
Transfers Out
Bonds Issued
Premium on Bonds Issued
Discount on Bonds Issued
Payment to Bond Refunding Escrow Agent
Other Long-Term Debt Proceeds
Total Other Financing Sources(Uses)
Extraordinary Item
Net Change In Fund Balances
Debt Service as Percentage of Noncapital
Expenditures
18,318,484
(18,106,854)
10,625,000
499
(51,806)
(5,135,514)
5,649,809
-
-
-
$ 5,564,709
$ 1,604,606
$ 2,071,433
21.0%
1
17.5%
33.3%
$ (1,411,773) $
23.9%
8,902,959
(8,402,761)
289,920
790,118
969,213
16.4%
$ (4,180,064) $ 4,345,963
17.9%
17.4%
13,129,166
$10,248,137
12.2%
The City issued pension obligation bonds to payoff the unfunded pension liablity in fiscal year 2007.
Page 146
$ (1,436,721) $
11.5%
(30,440)
12.5%
Table 5
City of Oroville
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Oroville Redevelopment 1
City of Orovile
Fiscal
Year
Secured
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
1
41,738
44,622
48,552
72,327
112,723
102,855
98,830
100,962
88,825
109,763
Unsecured
$
1,276
985
3,037
1,260
1,681
1,471
1,268
8,723
1,164
946
Taxable
Assessed
Value
Utility
$
398
373
1,804
21
21
21
24
24
24
24
$
43,412
45,980
53,393
73,608
114,425
104,347
100,122
109,709
90,013
110,733
Secured
$ 581,061
652,036
751,208
854,448
885,613
872,554
826,992
794,741
-
Unsecured
$
94,548
102,325
107,491
111,609
119,496
118,233
123,073
125,740
-
Taxable
Assessed
Value
Utility
$ 3,834
3,620
1,706
955
955
955
1,176
1,176
-
$
Amounts prior to fiscal year 2013 include assessed valuations of the former Oroville
Redevelopment Agency which was dissolved effective February 1, 2012.
Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate
of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be
increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed
at the time it is sold to a new owner. At that point, the assessed value is reassessed at the purchase price of the
property sold. The assessed valuation data shown above represents the only data available with respect to the actual
market value of taxable property and is subject to the limitations described above.
Source: Butte County Auditor/Controller's Office
Department of Finance, City of Oroville
Page 147
679,443
757,981
860,405
967,012
1,006,064
991,742
951,241
921,657
-
Total
Direct Tax
Rate
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
Table 6
City of Oroville
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed valuation)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
$ 1.000000
Total City Direct Rate
1.000000
1.000000
1.000000
1.000000
1.000000
1.000000
1.000000
1.000000
1.000000
1.000000
Overlapping Rates:
Butte College
Oroville Elementary School
Oroville High School District
0.016003
0.025149
0.017321
0.020880
0.019335
0.016897
0.020880
0.018679
0.017241
0.020880
0.017190
0.014688
0.020880
0.017366
0.015008
0.020880
0.018963
0.035438
0.020880
0.018664
0.036745
0.020880
0.020156
0.035660
0.020880
0.021866
0.041104
0.020880
0.017850
0.032699
$ 1.058473
$ 1.057112
$ 1.056800
$ 1.052758
$ 1.053254
$ 1.075281
$ 1.076289
$ 1.076696
$ 1.083850
$ 1.071429
City Direct Rates:
City of Oroville
Note:
In 1978 the voters of the State of California passed Proposition 13 which limited property tax rate to a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed
amount, property owners are charged taxes as a percentage of assessed property values for the payment of various
school district bonds.
Source:
Butte County Auditor/Controller's Office
Department of Finance, City of Oroville
Page 148
Table 7
City of Oroville
Principal Property Tax Payers
Current Year and Nine Years Ago
(amounts expressed in thousands)
2014
Taxable
Assessed
Valuation
Taxpayer
Pacific Coast Producers
Oroville Plaza EI LLC
Roplast Industries, Inc
Oroville Medical Complex
Home Depot USA
Sierra Pacific Industries
Currier Square Spe LLC
California AVIV LLC
Pacific Oroville Power
Pacifica Concordia
Ammunition Accessories
Wal Mart Stores Inc.
HP-Oroville LLC
Totals
$
$
30,265
11,656
11,237
10,833
8,830
8,353
7,934
7,700
7,404
7,370
-
Rank
1
2
3
4
5
6
7
8
9
10
111,582
2005
Percentage
of Total
Assessed
Valuation
Taxable
Assessed
Valuation
2.93%
1.13%
1.09%
1.05%
0.86%
0.81%
0.77%
0.75%
0.72%
0.71%
-
$
10.82%
$
21,951
7,620
13,318
8,897
10,541
11,256
7,792
6,087
5,936
5,776
99,174
Note: Amounts shown above include assessed value data for both the City of Oroville and the Oroville Redevelopment Agency
Source: Butte County Auditor/Controller's Office
Department of Finance, City of Oroville
Page 149
Rank
Percentage
of Total
Assessed
Valuation
1
7
2
5
7.98%
2.77%
4.84%
3.24%
4
3
3.83%
4.09%
6
2.83%
8
9
10
2.21%
2.16%
2.10%
36.07%
Table 8
City of Oroville
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected Within the
Taxes Levied
for the
Fiscal Year
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
6,227,986
6,966,579
7,997,605
9,656,457
9,372,575
9,123,272
10,513,628
10,313,662
537,585
1,732,878
1
Fiscal Year of Levy
Percent of
Amount
Levy
1
5,465,571
6,041,818
6,770,078
7,877,182
8,322,389
8,188,656
8,009,844
5,766,144
459,215
1,424,772
87.76%
86.73%
84.65%
81.57%
88.80%
89.76%
76.19%
55.91%
85.42%
82.22%
Collections in
Subsequent
Years
Total Collections to Date
As Percent
Amount
Of Tax Levy
130,107
194,134
211,439
261,551
235,442
118,319
83,850
95,641
82,652
59,958
Amounts prior to fiscal year 2013 include property tax levies and collection fo the former Oroville RDA.
Source: Department of Finance, City of Oroville
Page 150
5,595,678
6,235,952
6,981,517
8,138,733
8,557,831
8,306,975
8,093,694
5,861,785
541,867
1,484,730
89.85%
89.51%
87.30%
84.28%
91.31%
91.05%
76.98%
56.84%
100.80%
85.68%
Table 9
City of Oroville
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
OPFA
Fiscal
Year
Revenue
Bonds
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,600,000
1,500,000
1,460,000
-
1
Tax
Allocation
Bonds
28,171,328
27,727,828
27,254,329
26,715,828
26,102,328
25,408,829
24,690,328
24,135,284
23,344,652
22,435,000
2
Pension
Obligation
Bonds
Limited
Obligation
Bonds
USDA
Loan
7,188,458
7,107,667
6,951,875
6,766,145
6,550,415
6,304,686
6,018,956
5,745,000
1,600,000
1,440,838
1,397,505
-
289,920
419,523
402,623
649,100
630,700
611,500
3
Capital
Leases
251,501
372,054
293,685
211,825
126,319
36,895
-
Total
Governmental
Activities
31,371,328
30,668,666
37,551,793
34,195,549
33,637,808
32,806,322
31,769,685
31,125,965
29,994,308
28,791,500
Total
Primary
Government
Percentage
of Personal
Income
Debt
Per
Capita
31,371,328
30,668,666
37,551,793
34,195,549
33,637,808
32,806,322
31,769,685
31,125,965
29,994,308
28,791,500
9.27%
8.91%
10.00%
10.75%
10.42%
9.78%
8.92%
8.72%
8.35%
7.55%
2,351
2,294
2,781
2,360
2,298
2,234
2,044
1,914
1,927
1,793
1
The Oroville Public Financing Authority (OPFA) is a joint powers authority created by the City of Oroville and the Oroville Redevelopment Agency.
The Oroville City Council acts as the governing body of the OPFA and is treated as a blended component unit of the City of Oroville.
2
The OPFA issued $10,625,000 of new tax allocation bonds in fiscal year 2005.
3
The City issued $7,260,000 in pension obligation bonds in fiscal year 2007
Note: The "Percentage of Personal Income" and "Debt Per Capita" ratios are calculated using personal income and population for the prior calendar year.
Source: State Department of Finance
Bureau of Economic Analysis
Department of Finance, City of Oroville
Page 151
Table 10
City of Oroville
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Governmental Activities
OPFA
Fiscal
Revenue
Tax
Allocation
Year
Bonds
Bonds
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,600,000
1,500,000
1,460,000
-
Pension
Obligation
Bonds
28,171,328
27,727,828
27,254,329
26,715,828
26,102,328
25,408,829
24,690,328
24,135,284
23,344,652
22,435,000
Less:
Restricted
Resources
Available2
7,188,458
7,107,667
6,951,875
6,766,145
6,550,415
6,304,686
6,018,956
5,745,000
3,983,180
5,103,108
4,809,247
1,982,647
1,984,533
1,984,163
1,983,196
1,950,921
1,950,948
1,950,948
Total
25,788,148
24,124,720
31,093,540
31,840,848
31,069,670
30,190,811
29,257,547
28,489,049
27,412,660
26,229,052
Percentage
of Assessed
Value1
59.40%
52.47%
58.24%
43.26%
27.15%
28.93%
29.22%
25.97%
30.45%
23.69%
1
Assessed value has been used because the actual value of taxable property is not readily
available in the State of California.
2
Restricted resources only include restricted cash with fiscal agent amount. Restricted loans receivable due
from the Oroville Successor Agency have been excluded as amounts are not available for current debt payments.
Note:
Source:
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
Department of Finance, City of Oroville
Page 152
Per
Capita
1,933
1,805
2,302
2,197
2,122
2,056
1,882
1,752
1,761
1,633
TABLE 11
City of Oroville
Direct and Overlapping Debt
June 30, 2014
City of Oroville Assessed Valuation
$
3.006%
6.292%
6.116%
Estimated
Share of
Overlapping
Debt
Outstanding
Debt
June 30, 2014
Percentage
Applicable1
Overlapping Debt Repaid With Property Taxes:
Oroville Unified Elementary District General Obligation Bonds
Oroville Unified High School District General Obligation Bonds
Butte Community College District
Total Overlapping Debt Repaid With Property Taxes
110,733,000
$
5,460,510
17,851,385
28,380,874
51,692,769
$
164,143
1,123,209
1,735,774
3,023,126
Overlapping Other Debt:
Total Other Overlapping Debt
Total Overlapping Debt
$
-
-
51,692,769
3,023,126
Direct Debt
28,791,500
Total Direct And Overlapping Debt
1
$
31,814,626
For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
Source:
Butte County Auditor/Controller's Office
Department of Finance, City of Oroville
Page 153
Table 12
City of Oroville
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Valuation
1
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 734,588,128
$ 815,869,239
$ 1,028,203,577
$ 1,135,257,495
$ 1,121,443,000
$ 1,096,089,000
$ 1,051,363,000
$ 1,030,366,000
$ 1,011,670,000
$ 1,032,390,000
Conversion percentage
25%
Adjusted assessed valuation
$ 183,647,032
Charter debt limit percentage
25%
$ 203,967,310
3.75%
Debt limit
$
Total net debt applicable to limit:
General obligation debt
27,547,055
$
Total debt applicable to the limit
as a percentage of debt limit
27,547,055
0.0%
1
$
3.75%
$
-
Legal debt margin
25%
30,595,096
30,595,096
0.0%
$
3.75%
$
$
257,050,894
25%
38,557,634
31,117,675
19.3%
$
280,360,750
3.75%
$
7,439,959
$
283,814,374
25%
42,572,156
35,092,435
$
3.75%
$
7,479,721
$
25%
42,054,113
34,518,633
17.6%
17.9%
$
3.75%
$
7,535,480
$
274,022,250
25%
41,103,338
33,705,981
18.0%
$
3.75%
$
7,397,357
$
262,840,750
25%
39,426,113
32,346,756
18.0%
$
3.75%
$
7,079,357
$
257,591,500
25%
38,638,725
31,597,730
18.2%
$
37,937,625
$
31,287,969
17.5%
Source: Butte County Auditor-Controller's Office
Department of Finance, City of Oroville
Page 154
258,097,500
3.75%
$
6,649,656
Assessed valuations include amounts applicable to the former Oroville Redevelopment Agency which was dissolved effective February 1, 2012, but will continue
to be included for the purpose of legal and debt margin calculations.
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation, but the City of Oroville's Charter provides for a
debt limit of 3.75% of gross assessed valuation. However, California's provision was
enacted when assessed valuation was based upon 25% of market value. Effective
with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value
(as of the most recent change in ownership for that parcel). The computations
shown above reflect a conversion of assessed valuation data for each fiscal year from
the current full valuation perspective to the 25% level that was in effect at the time
that the legal debt margin was enacted by the State of California for local governments
located within the state.
$
3.75%
7,040,995
$
252,917,500
25%
38,714,625
6,356,500
$
32,358,125
16.4%
Table 13
City of Oroville
Pledge Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal
Year
Tax
Increment
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
4,208,624
4,912,480
5,423,867
6,294,291
6,323,564
6,289,041
5,970,083
3,020,646
1,417,241
1,991,739
Note:
Source:
Debt Service
Principal
2
470,000
485,000
485,000
2,010,000
625,000
705,000
730,000
755,000
785,000
815,000
Interest
1
Coverage
1,061,634
1,048,779
1,270,630
1,164,200
1,239,680
1,218,249
1,192,881
1,165,310
1,135,781
1,081,634
1
Two bond issues totaling $1,460,000 were paid in full in fiscal year 2008
2
Effective February 1, 2012, the Oroville Redevelopment Agency was
dissolved and future increment payments will made to the Oroville
Successor Agency for payment of "enforcable obligations" only. Debt
service payments are considered an "enforceable obligation" of the
Successor Agency.
Details of the City's outstanding debt can be found in the notes to
financial statements.
Department of Finance, City of Oroville
Page 155
2.75
3.20
3.09
1.98
3.39
3.27
3.10
1.57
0.74
1.05
Table 14
City of Oroville
Demorgraphic and Ecomonic Statistics
Last Ten Fiscal Years
Personal
Income
Calendar
Population
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1
(in thousands)
13,369
13,468
13,505
14,490
14,369
14,687
15,546
16,260
15,566
16,061
Note:
Source:
2
344,292
360,368
375,453
318,056
322,731
335,510
356,066
356,923
359,061
381,352
Per Capita
Personal
Income
Unemployment
Rate3
25,753
26,757
27,801
21,950
22,460
22,844
22,904
21,951
23,067
23,744
The "Per Capita Personal Income" is based on the 1994-2004 average
annual growth rate of PCPI at 3.9%.
1
State Department of Finance
2
Bureau of Economic Statistics
3
State of California Employment Development Department
(data shown is for Butte County)
Page 156
9.3%
7.9%
8.7%
11.2%
17.4%
17.8%
19.1%
17.2%
14.1%
12.8%
Table 15
City of Oroville
Principal Employers
Current Year and Nine Years Ago
2014
Employer
Number of
Employees
2005
Percent of
Total
Employment
Percent of
Total
Employment
Number of
Employees
County of Butte
2,395
28.18%
2,162
26.05%
Oroville Medical Complex
1,292
15.20%
691
8.33%
Pacific Coast Producers
1,181
13.89%
544
6.55%
Wal Mart Stores, Inc.
297
3.49%
240
2.89%
Graphic Packaging International
246
2.89%
-
0.00%
Ammunition Accessories
163
1.92%
113
1.36%
Home Depot USA
120
1.41%
-
0.00%
Roplast Industries, Inc.
135
1.59%
102
1.23%
City of Oroville
100
1.18%
107
1.29%
Currier Square Spe LLC
98
1.15%
101
1.22%
Marshalls
40
0.47%
-
0.00%
"Total Employment" as used above represents the total employment of all employers located within City limits.
The "Nine Years Ago"; "Number of Employees" is based on the quotient percentage between 1997 and 2006
The estimate assumes constant change between known years.
Source: Employment Development Department , Various Employers
Page 157
Table 16
City of Oroville
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
Function
2005
General Government
Public Safety
Public Works
Community Development
Parks and Trees
Planning
2006
2007
2008
2009
2010
2011
2012
2013
2014
20
56
13
12
10
19
57
13
12
10
22
60
13
11
10
24
61
11
14
10
14
62
14
11
21
22
39
20
11
20
15
60
18
10
10
10
15
60
18
10
10
10
16
60
19
9
9
10
16
55
14
5
6
6
111
111
116
120
122
112
123
123
123
102
Source: Department of Finance, City of Oroville
Page 158
Table 17
City of Oroville
Operating Indicators by Function
Last Ten Fiscal Years
Function
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Police:
Arrests
Parking Citations Issued
2,831
355
2,439
283
2,496
302
2,444
225
2,131
275
1,833
277
1,742
288
2,489
409
2,747
250
3,182
346
Fire:
Number of Emergency Calls
Inspections
3,301
4,140
3,697
3,638
3,947
3,420
3,651
2,723
3,678
2,558
3,403
1,877
2,633
1,772
3,305
2,659
3,252
372
3,217
233
Public Works:
Street Resurfacing (miles)
10
-
1
-
-
4.5
-
-
-
-
Parks and Recreation:
Number of Facility Rentals
281
332
110
133
129
148
179
225
223
231
9
114
14
125
10
125
156
111
17
167
16
165
10
116
62
103
11
156
62
149
Wastewater:
1
New Connections
Average Daily Flows (thousands of gallons)
1
New wastewater connections are provided by the City, but administered by Sewerage Commission - Oroville Region.
Source: City of Oroville
Sewage Commission - Oroville Region
Page 159
Table 18
City of Oroville
Capital Asset Statistics
Last Ten Fiscal Years
Function
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Police:
Stations
1
1
1
1
1
1
1
1
1
1
Fire:
Fire Stations
1
1
1
1
1
1
1
1
1
1
124.25
1,229
18
131.59
1,234
18
132.63
1,256
18
132.88
1,375
17
92.60
1,375
7
92.60
1,375
7
92.60
1,377
7
92.60
1,391
7
92.60
1,409
7
96.00
1,409
7
6
3
6
3
6
3
6
3
7
3
7
3
7
3
7
3
7
3
7
3
73
73
114.19
73
73
124.65
73
73
124.65
73
73
111.28
66
31
166.79
66
31
165.49
66
31
166.21
66
31
105.00
66
31
106.00
66
40
106.00
Public Works:
Streets (miles)
Streetlights
Traffic Signals
Parks and Recreation:
Parks
Community Centers
Wastewater1:
Sewer Lines (miles)
Sewer Storm Drains
Maximum Daily Capacity (thousands of gallons)
1
Wastewater treatment services are provided through the Sewerage Commission - Oroville Region (SCOR). Wastewater and stormdrain pipelines are installed
by the City, but administered by SCOR.
Source: City of Oroville
Sewage Commission - Oroville Region
Page 160
APPENDIX G
FISCAL CONSULTANT’S REPORT
G-1
This Page Intentionally Left Blank
SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
FISCAL CONSULTANT REPORT
FISCAL CONSULTANT REPORT
2015 TAX ALLOCATION REFUNDING BONDS
Oroville Redevelopment Project No. 1
Successor Agency to the
Oroville Redevelopment Agency
February 23, 2015
ROSENOW SPEV AC EK GROUP INC.
SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
FISCAL CONSULTANT REPORT
TABLE OF CO NTENTS
TABLE OF CONTENTS ......................................................................................................... 0
INTRODUCTION .................................................................................................................... 1
BACKGROUND ...................................................................................................................... 2
EFFECT OF REDEVELOPMENT DISSOLUTION .......................................................................... 4
REDEVELOPMENT AGENCY AND PROJECT AREA ................................................................... 4
TIME AND FINANCIAL LIMITATIONS ............................................................................................ 6
Time Limitations .................................................................................................................. 7
Financial Limitations............................................................................................................ 7
TOP 10 TAXPAYERS ............................................................................................................ 8
RPTTF REVENUE PROJECTIONS GENERAL ASSUMPTIONS ................................................ 10
ASSESSED VALUATION .............................................................................................................. 10
GROWTH ASSUMPTIONS............................................................................................................ 11
Article XIIIA (Proposition 13) Inflationary Adjustments ..................................................... 12
Changes in Valuation from Sales ...................................................................................... 12
Value from New Construction ........................................................................................... 14
Decline-in-Value Reassessments & Assessment Appeals ............................................... 14
TAX RATES ................................................................................................................................... 17
UNITARY UTILITY REVENUE ...................................................................................................... 17
COUNTY ADMINISTRATIVE FEES .............................................................................................. 18
DELINQUENCY RATES / TEETER PLAN .................................................................................... 18
TAX INCREMENT/RPTTF REVENUE COLLECTION HISTORY ................................................. 18
PAYMENTS TO AFFECTED TAXING AGENCIES ....................................................................... 19
County of Butte Fiscal Mitigation Agreement .................................................................... 20
Oroville Cemetery District Fiscal Mitigation Agreement.................................................... 20
Thompson Flat Cemetery District, Butte Mosquito Abatement District and Oroville Mosquito
ABatement District Pass Through ..................................................................................... 20
Feather River Recreation and Park District Pass Through ............................................... 20
Statutory Taxing Agency Payments .................................................................................. 20
Santa Ana USD Case / Distributions to School Districts .................................................. 21
REVENUE PROJECTIONS AND CONSULTANT’S DISCLAIMER ......................................... 21
INTRODUCTION
This Fiscal Consultant Report (“Report”) has been prepared by Rosenow Spevacek Group, Inc.
(“RSG”) to substantiate available Redevelopment Property Tax Trust Fund (“RPTTF”) revenues to
be generated from the Oroville Redevelopment Project Area No. 1 (“Project Area”) for the proposed
2015 Tax Allocation Refunding Bonds (“Refunding Bonds”). The proposed Refunding Bonds would
refund all outstanding bonded debt originally issued by the Oroville Public Financing Authority which
are now the responsibility of the City of Oroville Successor Agency (“Agency”). More specifically,
the refunding bonds would refund:
2002 Tax Allocation Revenue Bonds
2004 Tax Allocation Revenue Bonds, Series A, and
2004 Taxable Tax Allocation Revenue Bonds, Series B
The purpose of this Report is to estimate future RPTTF revenues generated from the Project Area
that will be available to pay debt obligations of the Agency. Future revenue has been estimated
based upon the construction of a RPTTF revenue projection model (“Revenue Projections”)
included within this Report. The Report also includes a description of the general methodology and
assumptions used to prepare the Revenue Projections, historical assessed valuation and revenue
information, and other pertinent information pertaining to the Project Area.
The following tables and exhibits are provided as back-up and support for the Revenue Projections.
Figure 1:
Figure 2:
Figure 3:
Figure 4:
Figure 5:
Figure 6:
Figure 7:
Figure 8:
Figure 9:
Figure 10:
Figure 11:
Figure 12:
Summary of Projected RPTTF Revenues and Coverage ...............................2
Project Area Land Breakdown ........................................................................4
Top 10 Taxpayers ..........................................................................................7
Project Area Assessed Value History .............................................................9
Secured Property Assessed Value Growth Assumptions ...............................9
Change in Assessed Value Due to Sales .....................................................11
Building Permit Activity .................................................................................12
Assessment Appeals History ........................................................................14
Taxing Agency Shares of RPTTF Revenue ..................................................15
Estimated to Actual Tax Increment/RPTTF Revenue ................................... 17
RPTTF Revenue Forecast ...........................................................................20
RPTTF Taxing Agency Payments ................................................................21
In summary, the Project Area’s assessed value for Fiscal Year (“FY”) 2014-15 is $ $939,195,607,
and the gross RPTTF revenue for FY 2014-15 is $7,654,235. Figure 1 summarizes the overall
findings of this Report, including Revenue Projections illustrating the amount of RPTTF revenue
available to the Agency by bond year for the Refunding Bonds.
1
FIGURE 1A: SUMMARY OF PROJECTED RPTTF REVENUES AND COVERAGE
Plan
Yr
34
35
36
37
38
ROPS
Cycle
FY
Gross
Revenue
2014-15 /1 A
B
2015-16
A
B
2016-17
A
B
2017-18
A
B
2018-19
A
B
39
2019-20
40
2020-21
41
2021-22
42
2022-23
43
2023-24
44
2024-25
45
2025-26
46
2026-27
47
2027-28
48
2028-29
49
2029-30
50
2030-31
51
2031-32
52
2032-33
53
2033-34
$
3,535,028
4,119,208
3,663,176
3,764,354
3,764,354
3,845,548
3,845,548
3,928,366
3,928,366
4,012,840
County
Admin
Taxing
Agency
Payments
$ (169,974) $ (796,011) $
(89,130)
(869,523)
(176,000)
(855,453)
(75,429)
(904,096)
(180,322)
(904,096)
(77,281)
(943,130)
(184,208)
(943,130)
(78,946)
(982,945)
(188,172)
(982,945)
(80,645)
(1,023,557)
Gross
RPTTF
Available
2,569,043
3,160,555
2,631,722
2,784,830
2,679,937
2,825,137
2,718,210
2,866,474
2,757,248
2,908,638
Bond Year
Gross
RPTTF
$
6,154,478
5,792,277
5,464,767
5,543,347
5,623,722
A
B
A
B
A
B
A
B
A
B
4,012,840
4,099,003
4,099,003
4,186,890
4,186,890
4,276,535
4,276,535
4,367,972
4,367,972
4,461,238
(192,216)
(82,378)
(196,340)
(84,146)
(200,547)
(85,949)
(204,838)
(87,788)
(209,214)
(89,663)
(1,023,557)
(1,064,981)
(1,064,981)
(1,107,233)
(1,107,233)
(1,150,330)
(1,150,330)
(1,194,289)
(1,194,289)
(1,239,128)
2,797,067
2,951,644
2,837,683
2,995,511
2,879,111
3,040,256
2,921,367
3,085,895
2,964,468
3,132,447
5,705,705
A
B
A
B
A
B
A
B
A
B
4,461,238
4,556,370
4,556,370
4,653,404
4,653,404
4,752,379
4,752,379
4,853,333
4,853,333
4,956,306
(213,678)
(91,576)
(218,232)
(93,528)
(222,877)
(95,519)
(227,614)
(97,549)
(232,446)
(99,620)
(1,239,128)
(1,284,863)
(1,284,863)
(1,331,513)
(1,331,513)
(1,379,096)
(1,379,096)
(1,427,630)
(1,427,630)
(1,477,136)
3,008,432
3,179,930
3,053,275
3,228,363
3,099,014
3,277,764
3,145,669
3,328,154
3,193,256
3,379,551
6,140,879
A
B
A
B
A
B
A
B
A
B
4,956,306
5,061,339
5,061,339
5,168,473
5,168,473
5,277,749
5,277,749
5,389,211
5,389,211
5,502,902
$ 180,042,934
(237,375)
(1,477,136)
3,241,796
(101,732)
(1,527,631)
3,431,976
(242,402)
(1,527,631)
3,291,306
(103,887)
(1,579,136)
3,485,450
(247,530)
(1,579,136)
3,341,806
(106,084)
(1,631,672)
3,539,993
(252,761)
(1,631,672)
3,393,316
(108,326)
(1,685,258)
3,595,627
(258,096)
(1,685,258)
3,445,857
(110,613)
(1,739,916)
3,652,374
$ (6,094,631) $ (50,128,151) $ 123,820,152
5,789,327
5,874,622
5,961,623
6,050,364
6,233,205
6,327,377
6,423,433
6,521,410
6,621,347
6,723,282
6,827,256
6,933,309
7,041,484
1/ FY 2014-15 revenues are based on actual collections, including supplemental tax revenues. Future
year projections do not include supplemental tax revenues.
2
FIGURE 1B: SUMMARY OF PROJECTED RPTTF REVENUES AND COVERAGE
Plan
Yr
ROPS
Cycle
FY
34
2014-15
35
2015-16
36
2016-17
37
38
39
40
41
42
43
44
45
46
47
48
49
50
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
2030-31
51
2031-32
52
2032-33
53
2033-34
Gross
RPTTF
Available
A
B
A
B
A
B
A
B
A
B
$
2,569,043
3,160,555
2,631,722
2,784,830
2,679,937
2,825,137
2,718,210
2,866,474
2,757,248
2,908,638
Bond Year
Gross
RPTTF
$
2015
TARB D/S
(Preliminary)
Bond Debt Service
Bond Yr
ROPS
2015
ROPS
B
Coverage
A&B
TARB D/S
/3
Coverage /1 (Preliminary) Coverage /2
6,154,478
5,792,277
5,464,767
5,543,347
5,623,722
A
B
A
B
A
B
A
B
A
B
2,797,067
2,951,644
2,837,683
2,995,511
2,879,111
3,040,256
2,921,367
3,085,895
2,964,468
3,132,447
5,705,705
A
B
A
B
A
B
A
B
A
B
3,008,432
3,179,930
3,053,275
3,228,363
3,099,014
3,277,764
3,145,669
3,328,154
3,193,256
3,379,551
6,140,879
A
B
A
B
A
B
A
B
A
B
3,241,796
3,431,976
3,291,306
3,485,450
3,341,806
3,539,993
3,393,316
3,595,627
3,445,857
3,652,374
$ 123,820,152
6,621,347
5,789,327
5,874,622
5,961,623
6,050,364
6,233,205
6,327,377
6,423,433
6,521,410
6,723,282
6,827,256
1,167,408
359,880
1,209,880
349,269
1,234,269
335,994
1,245,994
317,794
2.29
7.59
2.24
7.94
2.22
8.37
2.24
8.98
1,267,794
298,794
1,283,794
279,094
1,329,094
252,844
1,352,844
225,344
1,355,344
197,094
2.23
9.69
2.23
10.53
2.19
11.79
2.18
13.43
2.21
15.58
1,387,094
167,344
1,417,344
136,094
1,451,094
103,219
1,478,219
68,844
1,513,844
47,169
2.19
18.63
2.18
23.25
2.16
31.12
2.15
47.37
2.13
70.20
1,537,169
24,819
319,819
20,394
1,275,394
2.13
135.46
10.40
167.41
2.65
1,167,408
1,569,760
2.25
1.77
1,583,538
1.78
1,581,988
1.81
1,585,588
1.83
1,582,588
1.87
1,608,188
1.86
1,605,688
1.89
1,580,688
1.95
1,584,188
1.98
1,584,688
2.01
1,587,188
2.03
1,581,438
2.07
1,582,688
2.10
1,584,338
2.13
344,638
9.96
1,295,788
2.69
2.25
3.48
3.50
3.55
3.60
3.66
3.65
3.71
3.83
3.88
3.93
3.99
4.06
4.12
4.18
19.51
5.27
6,933,309
7,041,484
$ 25,010,380
$ 25,010,380
1/ ROPS coverage based on gross RPTTF available on the ROPS A (Jul-Dec) and B (Jan-Jun) Periods for semi-annual debt
service due each period.
2/ ROPS coverage based on gross RPTTF available in the ROPS B period (Jan-Jun) for total debt service due during the
bond year.
3/ Annual coverage based on gross RPTTF available in the ROPS A & B periods (Jul-Jun) for total debt service due during
the bond year. ROPS 15-16A coverage based on gross RPTTF available in the ROPS A period only.
3
BACKGROUND
The City of Oroville (“City”) is one of five incorporated cites located in Butte County (“County”),
California. Incorporated in 1906, the City has a population of 26,109, according to January 1,
2014 estimates from the California Department of Finance Demographic Research Unit.
EFFECT OF REDEVELOPMENT DISSOLUTION
Adopted by the State Legislature as part of their effort to trim the state budget in 2011,
Assembly Bill x1 26 began a process to dissolve all local redevelopment agencies in California
on February 1, 2012 (“Dissolution Act”). Fundamentally, the Dissolution Act, including
subsequent cleanup legislation, caused the abrupt termination of most redevelopment activities
and shifted the responsibility for repayment of outstanding financial obligations to successor
agencies that operate under the purview of local oversight boards. When the Redevelopment
Agency of the City of Oroville was dissolved, the City of Oroville elected to become the
successor agency.
Previously, redevelopment agencies received tax increment revenue from the county auditorcontroller apportionments above a base year assessed value for a project area, from which it
invested in local redevelopment and housing projects and paid various obligations, including
bond debt service secured by pledged tax increment revenue. After dissolution, the county
auditor-controller now biannually allocates funds needed to pay so-called “enforceable
obligations” approved by the oversight board and State Department of Finance during a sixmonth period, with the balance of the former tax increment funds distributed as residual revenue
to affected taxing agencies. In advance of biannual distribution, the successor agency and
oversight board submit Recognized Obligation Payment Schedules, or “ROPS”, which
enumerate the dollar amounts due, and, once approved, the county auditor-controller remits
funds not more than these amounts to cover these costs.
All property tax formerly known as tax increment amounts are now deposited by the county
auditor-controller in the redevelopment property tax trust fund for each successor agency
(“RPTTF”). These RPTTF apportionments are distributed pursuant to Health and Safety Code
Section 34183, in the following priority: (1) County and State administrative fees; (2) taxing
agency (pass-through) payments; (3) successor agency debts, including bond debt, as identified
on the ROPS; (4) successor agency administrative costs; and (5) remaining money is shared
among the project area’s affected taxing agencies.
REDEVELOPMENT AGENCY AND PROJECT AREA
In 1981, the City Council created the Oroville Redevelopment Agency to revitalize the blighted
areas of the City, promote economic development, and assist in the improvement and
production of affordable housing in the community. The Redevelopment Plan for the Oroville
Redevelopment Project No. 1 (“Redevelopment Plan”) was established by the City Council on
July 6, 1981, with the adoption of Ordinance No. 1353. The Redevelopment Plan has been
amended six times since adoption.
The Project Area accounts for approximately 6,080 acres, or approximately 72 percent of the
City’s total land area, and includes the City’s historic downtown area and a diverse mix of
4
residential, commercial, industrial, and recreational uses, public/private rights-of-way, and public
facilities, including the Oroville Municipal Airport.
The Redevelopment Plan enables the Agency to collect tax increment (now, RPTTF revenue) to
implement and finance revitalization projects in the Project Area. Deposits to the Agency’s
RPTTF are generated from increases in the Project Area’s total assessed value above the
1980-81 base year value, which is $206,560,472. According to 2014-15 County Auditor
Controller reports, the total assessed value for the Project Area is $939,195,607.
Figure 2 below details land use data for the Project Area, including acreage, number of parcels
and assessed values. By 2014-15 net assessed value 1, major land uses in the combined
Project Area include residential (36.8 percent) and commercial (33.2 percent).
FIGURE 2: PROJECT AREA LAND USE BREAKDOWN
Land Use Category
Residential
Commercial
Miscellaneous
Industrial
Vacant Land
Agriculture
Natural Resource
Public & Institutional3
Utility Value
Total Project Area
Acres
2
921
630
13
307
1,281
6
1
2,161
5,320
2014-15 Assessed Value (Net of Exemptions)1
Unsecured
Secured
Total
Parcels
3,132
615
7
60
879
4
1
107
4,805
$
$
345,190,790
311,203,661
2,978,549
81,620,360
48,447,094
103,462
6,021
2,152,591
791,702,528
$
$
315,478
126,500,023
20,677,578
147,493,079
% of
PA Value
$ 345,190,790
311,519,139
129,478,572
102,297,938
48,447,094
103,462
6,021
2,152,591
$ 939,195,607
36.8%
33.2%
13.8%
10.9%
5.2%
0.0%
0.0%
0.0%
0.2%
100.0%
Notes:
1
Total Project Area assessed values are net of all exemptions except for homeowner exemptions.
2
Total acreage of assessable parcels. Excludes right-of-way.
3
Includes multiple land uses (airport, golf course, government, churches, non-profits, etc.) with an assessed value of $0.
Sources: Butte County Assessment Roll for 2014-2015 and Butte County Assessor's List of Exempt Parcels.
A map of the Project Area depicting the boundaries of the Original Area and the Added Area is
shown on the next page.
1
Assessed values referenced in this report refer to values net of all exemptions except for homeowners’ exemptions (as state law
provides local agencies property tax relief for homeowners’ exemptions), and also net of aircraft and government property value.
5
TIME AND FINANCIAL LIMITATIONS
The Redevelopment Plan contains various time and financial limitations that affect the Agency’s
ability to collect and utilize RPTTF revenue. The Redevelopment Plan has been amended on
five separate occasions to modify these limitations, most recently on December 21, 2004 when
the City Council extended the effectiveness of the Redevelopment Plan by one year.
Under the Dissolution Act, the Redevelopment Plan may not be hereafter amended for any
reason.
Further, the State Department of Finance, who manages the dissolution of
redevelopment agencies, has announced that it no longer recognizes time or financial
limitations in redevelopment plans as an impediment to the repayment of enforceable
obligations and the wind-down of redevelopment, and in conjunction with the Governor’s office
and Legislature is introducing legislation in 2015 that will codify this practice into the Dissolution
6
Act. Notwithstanding these practices and plans, RSG has summarized the Redevelopment
Plan limitations below.
TIME LIMITATIONS
1. Incur Indebtedness: The time limit to incur debt in the Project Area was rescinded by
City Council Ordinance No. 1704 on July 20, 2004. As a result, the Agency may incur
indebtedness at this time to effectuate the proposed bond refunding. However, issuance
of indebtedness is subject to the limitations of the Dissolution Act.
2. Effectiveness of the Redevelopment Plan: As amended by Ordinance No. 1712 adopted
by the City Council on December 21, 2004, the Redevelopment Plan remains in effect
until July 6, 2024.
3. Final Date to Collect Tax Increment Revenue: Redevelopment Plans often permitted
redevelopment agencies to collect tax increment revenue for a longer duration of time
after the plan’s effectiveness to effectuate the repayment of debt. Notwithstanding
potential legislative changes to the Dissolution Act, these limits remain in effect, although
successor agencies may now only collect until enforceable obligations are satisfied. The
Agency may receive RPTTF until July 6, 2034, unless enforceable obligations, including
the proposed Refunding Bonds, are paid off sooner.
RSG has reviewed these limitations and has determined that the proposed Refunding Bonds
would not be negatively impacted by these limitations.
FINANCIAL LIMITATIONS
1. Cumulative Tax Increment Revenue Limit: Section IV.D.1 of the Redevelopment Plan
establishes a $300 million cumulative limit on the amount of tax increment revenue (now
RPTTF) that may be collected by the Agency from the Project Area. As of June 30,
2014, a compilation of gross tax increment and RPTTF apportionment reports from the
County Auditor Controller’s office indicates the Agency has collected $116,373,140 in
gross tax increment/RPTTF revenue in the Project Area. We project that this limit will
not be a constraint on the Refunding Bonds under the projections for in this Report.
Finally, the DOF has stated that tax increment revenue limits may not be operative postdissolution, effectively prioritizing (in their view) the repayment of debt service and other
enforceable obligations. DOF posted a letter on its website dated April 2, 2014 advising
county auditor-controllers to not apply tax increment caps to bar payment of DOFapproved enforceable obligations. Because this position has not yet been put into law or
fully tested in court, RSG continues to recommend that the tax increment revenue limit
be considered as part of any bond refundings. Figure 11 at the end of this report
presents two scenarios for consideration. The first scenario estimates cumulative
revenues based on the projected amount of gross tax revenues generated by the Project
Area. The second scenario estimates cumulative revenues net of residual RPTTF
distributed to affected taxing entities.
2. Amount of Bonds Outstanding at One Time: Section IV.D.3 of the Redevelopment Plan
establishes a $65 million limit, exclusive of taxing agency payments and housing setaside deposits, on the amount of bonded indebtedness that may be outstanding at any
one time.
7
Currently, the Agency has $21,590,000 of tax allocation bond debt outstanding from the
existing 2002, 2004 Series A and 2004 Series B Bonds. The proposed Refunding Bonds
would refund all outstanding bond debt. Further under the Dissolution Act, the Agency
may not increase the amount of debt. As such, the Refunding Bonds would not exceed
the Redevelopment Plan’s $75 million bonded debt limit.
TOP 10 TAXP AYERS
Project Area ownership patterns are significantly diversified. Top taxpayers were identified
based upon property owners with the largest secured and unsecured taxable assessed
valuation recorded on the County Assessor’s 2014-15 Equalized Assessment Roll. In the
Project Area, the 10 largest property taxpayers (shown in Figure 3) own 30 parcels with a
combined value of approximately $141.5 million, or 15.1 percent of the Project Area’s taxable
assessed valuation, and 19.3 percent of the Project Area’s incremental assessed value.
Two of the top 10 taxpayers have outstanding assessment appeals that may alter the values
in Figure 3:

Pacific Coast Producers has one outstanding appeal for 2014 for a parcel with an
assessed value of $26.1 million. The reduction requested is $13.1 million, which is
about half of the property’s value. The appeal is pending an appeals board hearing
on February 18, 2014. The owner appealed the value of the same property in 2009;
it requested a 63% reduction in value and was granted a 6% reduction. The owner
also appealed the property’s value in 2011-2013 but withdrew the applications.

Comcast has open appeals for two parcels. The first parcel has open appeals from
2011-2014; its 2014 assessed value is $9.5 million and the owner requested a $4.4
million reduction. The second parcel has open appeals from 2012-2013; its 2013
assessed value was $16,270 and the owner requested a $13,528 reduction.
According to the Butte County Clerk of the Board’s office, Comcast has open
appeals in multiple jurisdictions throughout the County. The appeals are being
negotiated on a County-wide level. It is unknown when the final values will be
determined.
More information on assessment appeals is provided later in this Report.
8
FIGURE 3: TOP 10 TAXPAYERS
1
2
3
4
5
6
7
8
9
10
Taxpayer Name
Pacific Coast Producers
Oroville Plaza Shopping Center, LLC
Graphic Packaging International, Inc.
Roplast Industries, Inc.
Oroville Medical Complex, LLC
Currier Square Shopping Center, LLC
Sierra Silica Resources2
Comcast of Northern California, Inc.
Farm Credit Leasing
Federal Cartridge Company
Total Top 10 Taxpayers
Total Project Area
Total Incremental AV
2014-15 Assessed Value1
Secured
Unsecured
% of
Total
Property
Property
Project Area
Parcels
4 $ 27,947,293 $ 2,342,023 $ 30,289,316
3.2%
15
19,699,098
19,699,098
2.1%
0
18,833,237
18,833,237
2.0%
2
11,245,653
11,245,653
1.2%
1
10,881,832
10,881,832
1.2%
10,560,000
10,560,000
8
1.1%
0
10,516,340
10,516,340
1.1%
0
10,282,400
10,282,400
1.1%
0
9,732,170
9,732,170
1.0%
0
9,503,070
9,503,070
1.0%
30 $ 80,333,876 $ 61,209,240 $ 141,543,116
15.1%
4,805
791,702,528
147,493,079
939,195,607
732,635,135
% of
Increm. AV
4.1%
2.7%
2.6%
1.5%
1.5%
1.4%
1.4%
1.4%
1.3%
1.3%
19.3%
100.0%
100.0%
Notes:
1
The assessed values represented above are net of all exemptions except the Homeowner's Exemption
Sources: Butte County Assessment Roll for 2014-15 and Butte County Auditor-Controller
2
Also listed as MRLLC Investors, Ltd.
Descriptions of the Top 10 taxpayers are presented below:
1. Pacific Coast Producers owns four parcels, totaling approximately 24.5 acres, with
industrial uses inside the Project Area. Pacific Coast Producers was formed in San
Jose, CA in 1971. They have since relocated to Lodi, CA, and now have plants in
Oroville, Lodi, and Woodland, CA. They specialize in the supply of a wide variety of
fruits and vegetables. As of 2013, they employed 1,272 people in the City of Oroville.
2. Oroville Plaza Shopping Center, LLC owns fifteen parcels within the Project Area,
totaling about 26.5 acres. All of these parcels serve commercial uses.
3. Graphic Packaging International does not own any parcels, but owns a significant
amount of unsecured property within the Project Area. They specialize in creating
inspired packaging that is renewable and has a minimal impact on the environment.
Graphic Packaging International employed 234 people in Oroville in 2013.
4. Roplast Industries, Inc. owns two parcels in the Project area that total 11.75 acres,
both of which are industrial uses. They produce polyethylene-based films and bags.
5. Oroville Medical Complex, LLC owns only one parcel, Oroville Hospital. However,
they employ the second-most employees in the City of Oroville, at 1,354 total
employees. Their parcel is 4.54 acres, and is a commercial use.
6. Currier Square Shopping Center, LLC owns 8 parcels that total approximately 11.5
acres, all with industrial uses. As of 2013, they employed 107 people, which was the
9th-largest amount in Oroville.
7. Sierra Silica Resources does not own any parcels of land in the Project Area, but
does own a sizable of its unsecured value. They produce silica for various industrial
markets.
9
8. Comcast of Northern California, Inc. does not own any parcels, either, but they own a
similarly high degree of unsecured value. They are a cable company that provides
television and internet, among other services.
9. Farm Credit Leasing is based in Minneapolis, MN, and owns a significant amount of
unsecured property within the Project Area. They are a leasing subsidiary with a
portfolio that exceeds $2 billion in total assets. Their parent company, CoBank, is a
national cooperative bank that is headquartered in Colorado and specializes in rural
areas.
10. Federal Cartridge Company, also called Federal Premium Ammunition, owns no
parcels of land, but also owns a large portion of the Project Area’s unsecured value.
They are a subsidiary of ATK Sporting Group, and they specialize in ammunition for
weapons and other hunting gear. ATK Sporting Group employed 175 people in
Oroville in 2013.
RPTTF REVENUE PROJECTIONS GENERAL ASSUMPTIONS
ASSESSED VALUATION
The ad valorem property tax system in California dictates property taxes to be based upon a
one percent general levy tax rate applied to non-exempt local and state secured and unsecured
assessed valuations. In accordance with the Health & Safety Code and the Redevelopment
Plan, the Agency collects RPTTF revenue generated by increases in assessed valuation above
the base year assessed valuation, or the assessed valuation at the time a project area is
adopted. Each year, the local roll is released by the Butte County Assessor (“County Assessor”)
to the Butte County Auditor-Controller (“Auditor-Controller” or “County Auditor”), who establishes
the equalized assessment roll and provides a report of Project Area assessed valuations for the
current fiscal year and base year.
Figure 4 provides a 5-year historical summary of assessed valuations in the Project Area.
Based upon current and base year assessed valuations, the FY 2014-15 incremental assessed
valuation is $732,635,135, which serves as the basis for the Revenue Projections. Following 4
years of declines due to the local effects of the nationwide real estate recession, Project Area
assessed values increased in 2014-15 by approximately $19.4 million.
FIGURE 4: PROJECT AREA ASSESSED VALUE HISTORY
Year
2014-15
2013-14
2012-13
2011-12
2010-11
Secured
Unsecured
Total
$ 791,702,528
779,853,834
795,917,142
800,786,021
828,168,264
$ 147,493,079
139,907,145
125,740,264
133,183,986
123,073,234
$ 939,195,607
919,760,979
921,657,406
933,970,007
951,241,498
% Δ from
Prior Year
2.1%
-0.2%
-1.3%
-1.8%
-4.1%
Source: Butte County Auditor Controller
10
GROWTH ASSUMPTIONS
As summarized in Figure 5 below, Project Area assessed values are projected based on several
factors, which have been refined by RSG to reflect a conservative forecast based on available
data known to RSG.
Generally, growth is more predictable in secured property values due to several factors that
necessitate reassessment, including statutory inflationary increases as provided by Section
110.1 of the Revenue and Taxation Code. Unsecured property is not subject to these annual
adjustments and tends to be relatively flat when new businesses are not expanding or moving
into an area. For this reason, RSG has assumed no change in unsecured property values and
specific assumed growth in secured property values.
Taking into account several factors, RSG is anticipating a 2.556 percent increase in Project
Area secured assessed values in 2015-16, followed by a 2.000 percent increase in such values
in thereafter. Figure 5 presents a compilation of the components of the growth rate forecast,
which is followed by a more detailed analysis of these factors.
FIGURE 5: SECURED ASSESSED VALUE GROWTH ASSUMPTIONS
Assumptions
Revenue & Taxation Inflationary /1
Changes due to Resales /2
Changes due to Construction /3
Changes due to Appeals /4
Growth Forecast
2015-16
1.998%
0.516%
1.119%
-1.077%
2.556%
2016-17
2.000%
0.000%
0.000%
0.000%
2.000%
2017-18
Thereafter
2.000%
2.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
2.000%
2.000%
Real property increases permitted by Revenue and Taxation Code Section 110.1.
See Figure 6 for computations. Reflects increase in value over inflationary adjustments
due to assessable property transfers, through December 2014
3/ Includes permits completed and issued and pending completion since January 1, 2014.
4/ See Report for details.
1/
2/
The growth assumptions were established by RSG to account for the following four factors that
affect future RPTTF collections in the Project Area.
11
ARTICLE XIIIA (PROPOSITION 13) INFLATIONARY ADJUSTMENTS
Article XIIIA of the California Constitution, enacted in 1978 by California Proposition 13 and
State Board of Equalization (“SBOE”) Rule 460, subdivision (b)(5) provide that the “full value of
real property shall be modified to reflect the percentage change in the cost of living . . . provided
that such value shall not reflect an increase in excess of two percent of the taxable value of the
preceding lien date.” The California Consumer Price Index (“CCPI”) establishes the inflation rate
used to determine the “percentage change in cost of living.”
In most years, the CCPI has exceeded two percent and has resulted in an upward adjustment to
the valuation of real property by two percent. However, in the last 38 fiscal years, the inflationary
adjustment was less than two percent for nine fiscal years, one of which will be FY 2015-16.
On December 5, 2014, the SBOE announced the CCPI from October 2013 to October 2014
increased by 1.998 percent and directed county assessors to prepare the forthcoming 2015-16
assessment roll based upon this inflation factor. However, a rate below two percent continues
to be the exception, not the historical norm.
Predicting future trends in statewide inflation rates can be difficult especially as inflation rates
have been quite low in the past several years, but we believe it reasonable to expect that
inflation may remain at 2.00 percent for the foreseeable future and have incorporated that
assumption into our forecast.
CHANGES IN VALUATION FROM SALES
Upon a transfer in ownership, a property is reassessed typically at the sales price on the next
assessment roll following the lien date (January 1 of each year). Between the date of the sale
and the next assessment roll, the County Assessor will issue a supplemental bill for any
additional taxes or credits based on the new assessed value, but RSG typically does not include
supplemental roll activity in our projections because of the unpredictable nature of such
assessments.
Reassessments due to property sales occurring during calendar year 2014 will not be on the
County Equalized Assessment Roll until FY 2015-16. The analysis presented in Figure 6
estimates that resales may add approximately $4,085,829 (0.516 percent) to the FY 2015-16
roll due to sales occurring between January 1, 2014 and December 23, 2014. Additional
changes in assessed values may occur after December 2014 that have not been incorporated
into this forecast.
This relatively modest change in assessed values due to these resales is incorporated into our
forecast, as shown in Figure 6 below.
12
FIGURE 6: CHANGE IN ASSESSED VALUE DUE TO SALES
Parcels Sold
Use Month
Residential (Single and Multi Family)
10
January
6
February
9
March
20
April
10
May
8
June
20
July
7
August
15
September
9
October
12
November
8
December
134
Subtotal
Aggregate
2014-15 AV
Aggregate
Sales Price
Aggregate ▲ from
2014-15 AV
1,192,147
513,953
1,352,139
2,731,981
1,169,801
854,942
3,008,280
1,379,675
1,499,705
1,085,239
1,198,235
1,194,675
17,180,772
1,620,000
497,000
1,473,500
3,247,000
1,433,000
1,028,000
3,492,500
1,796,500
2,381,000
1,317,000
1,569,500
1,417,500
21,272,500
427,853
(16,953)
121,361
515,019
263,199
173,058
484,220
416,825
881,295
231,761
371,265
222,825
4,091,728
1
3
0
1
1
1
2
1
1
1
2
0
14
111,719
146,867
64,391
700,000
529,030
572,018
31,587
94,027
92,145
40,494
2,382,278
250,000
97,500
80,000
325,000
124,000
2,600,000
28,000
135,000
45,000
246,500
3,931,000
138,281
(49,367)
15,609
(375,000)
(405,030)
2,027,982
(3,587)
40,973
(47,145)
206,006
1,548,722
All Other Sales (Non-Residential)
2
January
3
February
1
March
2
April
5
May
1
June
2
July
1
August
1
September
2
October
1
November
1
December
22
Subtotal
423,325
1,186,909
271,203
963,281
585,170
803,631
262,780
516,109
341,138
3,429,521
608,254
440,000
9,831,321
417,000
760,000
125,000
159,000
677,500
1,780,000
298,000
85,000
200,000
3,330,000
610,000
422,500
8,864,000
(6,325)
(426,909)
(146,203)
(804,281)
92,330
976,369
35,220
(431,109)
(141,138)
(99,521)
1,746
(17,500)
(967,321)
170
29,394,371
34,067,500
4,673,129
Vacant Land Sales
January
February
March
April
May
June
July
August
September
October
November
December
Subtotal
Total Sales
Less Inflationary Growth
Net AV Increase Due to Sales /1
Total Project Area Secured AV (2014-15)
As % of Project Area Secured AV
1.998%
(587,300)
4,085,829
791,702,528
0.516%
/1 To ensure that the assumed Proposition 13 inflationary adjustments are not double counted, RSG
subtracted the corresponding inflationary increase form the incremental sales value increases.
13
VALUE FROM NEW CONSTRUCTION
Figure 7 presents a summary of building permit activity in the Project Area from January through
December 2014.
A total of 40 building permits have been puled and currently active or completed since the 201415 assessment roll was equalized. Net of increases due to unrelated inflationary adjustments
on the corresponding properties’ real property values, RSG estimates that this construction may
add approximately $8,857,899 (1.119 percent) to the secured roll in 2015-16, as summarized
below.
FIGURE 7: BUILDING PERMITS ISSUED AND FINALED
#
16
10
New Construction
Remodel
Total
$
Residential
Value
2,732,657
3,745,230
26
$
6,477,887
#
$
Total
Commercial
Value
1
75,000
13
2,485,601
14
$
2,560,601
#
Value
2,807,657
6,230,831
17
23
$
Less Inflationary Growth
Total Value Added to 2015-16
Total Project Area 2014-15 Value
Percentage Increase
Sources: City of Oroville and Butte County Auditor-Controller
40
$
9,038,488
(180,589)
8,857,899
791,702,528
1.119%
DECLINE-IN-VALUE REASSESSMENTS & ASSESSMENT APPEALS
Property owners generally see two ways for their assessed values to be reduced following
assessment: 1) temporary decline-in-value reassessments (sometimes known as Prop 8
appeals), which are initiated by either the assessor or the owner and are most common during
and following real estate market depreciation, and 2) less common permanent base year
reassessments initiated by an owner who considers the basis value of a property erroneous.
State law requires an assessor to enroll the lower of either: (1) the taxable value (market value
of the property when it was acquired, plus a consumer price index adjustment of up to two
percent per year and the value of any new construction); or (2) the market value as of the
annual January 1 lien date. When market values decline to a point where they are below
assessed values, the assessor is to reduce values accordingly, either as a result of an ownerinitiated appeal or assessor review of the roll. These decline-in-value reductions are eventually
restored back to the full Proposition 13 assessed value once market values recover.
The County Clerk of the Board maintains assessment appeals applications and manages the
appeals review and hearing process. According to the Clerk’s data, no base year appeals have
been filed in the Project Area over the past five years, and 315 decline-in-value appeals have
been filed over this same period. The number of appeals filed each year has dropped
significantly from the highest levels in 2010 and 2011 (94 and 99 appeals, respectively) to 16
appeals in the current year.
Of the 315 appeals, 198 have been granted reductions while 93 were withdrawn or denied. The
appeals granted reductions caused a 0.5 percent average annual reduction in assessed values
14
over the past five years, excluding the current year where the majority of the appeals are still
pending appeal. Applicants have seen less success in their appeals over time; while the
average rate of reductions have been 12.6 percent of the applicants’ requests, the last three
years have been well below this rate – with only 4.6 percent of the applicants’ reduction request
granted in 2013-14.
The pending 24 appeals total an aggregate value of $68,824,386 of value that has been sought
to be removed from the roll by the respective applicants. Fifteen (15) of these 24 appeals
pertain to the current year and many of those are likely to be denied or withdrawn given past
trends. Still, assuming the annual 12.6 percent success rate for all 24 appeals, RSG estimates
that as much as $8,526,235 (1.077 percent) of the 2014-15 secured roll could be lost if these
appeals are successful.
Figure 8 presents a summary of these appeals and RSG’s methodology for estimating potential
impacts for pending appeals.
15
FIGURE 8A: ASSESSMENT APPEALS HISTORY
Year
Project Area Value
Appeals by Year and Status
Granted &
Reduced
Withdrawn &
Denied
Pending
Decision
9
15
74
61
39
1
11
17
22
32
10
15
3
2
3
1
-
16
23
34
99
94
49
198
93
24
315
2014
2013
2012
2011
2010
2009
Total
Average
Total
$
84,872,431
61,505,184
65,510,412
81,695,855
52,469,040
94,996,847
$
73,508,295
% in
Appeal
AV
Assessed Value
$
939,195,607
919,760,979
921,657,406
933,970,007
951,241,498
991,742,058
9.0%
6.7%
7.1%
8.7%
5.5%
9.6%
7.8%
FIGURE 8B: ASSESSMENT APPEALS HISTORY
Year
No.
2014
2013
2012
2011
2010
2009
Total
Average
Pending Appeals
Granted Appeals
9
15
74
61
39
Requested
Reductions
$ 58,270,300
30,770,254
34,590,346
37,500,154
24,140,731
51,003,861
Actual Reduction % of Requested
Granted
Value
$
1,400,780
3,364,005
2,822,768
3,417,768
13,894,526
% of PA
Value
No.
0.0%
4.6%
9.7%
7.5%
14.2%
27.2%
0.0%
0.2%
0.4%
0.3%
0.4%
1.4%
15
3
2
3
1
-
$
58,267,930
4,220,679
5,169,439
1,159,598
6,741
-
24
$
68,824,387
12.6%
0.5%
$
12.6%
(8,700,062)
198
Five-Year Average % of Approved Reductions
Pending Reductions x 5-Yr Average Approval Rate
Less Inflationary Growth
Net AV Increase due to Appeals
Total Project Area Secured AV (2014-15)
As % of Project Area Secured AV
Requested
Reductions
% of PA
Value
6.2%
0.5%
0.6%
0.1%
0.0%
0.0%
173,827
(8,526,235)
791,702,528
-1.077%
Source: Butte County Clerk of the Board, Assessor, and Auditor-Controller (January 2015)
16
TAX RATES
The Agency receives RPTTF revenue based on the 1.0 percent general ad valorem property tax
levy, according to the County Auditor Controller.
No override levies generate tax
increment/RPTTF revenue to the Agency. Further, RSG does not expect additional revenues
from override levies in the future because under State law, any taxes in excess of the general
levy approved by the voters on or after January 1, 1989, must be paid to the respective taxing
entities.
Figure 9 summarizes the FY 2014-15 tax rate information for the Project Area. Negotiated and
statutory pass-through payments are distributed based on the original 1.0 percent AB 8
breakdown for the Project Area. Residual RPTTF is distributed based on adjusted factors that
account for taxing entities that already receive their full share of gross RPTTF revenues
pursuant to negotiated tax sharing agreements.
FIGURE 9: SHARES OF RPTTF REVENUE
Butte County - General*
Butte County - Welfare*
Butte County - Library*
Thompson Flat Cemetery*
Oroville Cemetery*
Butte Co Mosquito Abatement*
Oroville Mosquito Abatement*
El Medio Fire
Feather River Rec & Park
Oroville Elementary
Thermalito Elementary
Oroville Union High
Butte County Schools
Butte College
City of Oroville
South Feather Water and Power
Lake Oroville Public Util Dist
0.117645
0.045153
0.012473
0.000314
0.011257
0.002661
0.007736
0.042343
0.153516
0.056940
0.199297
0.039799
0.063522
0.242021
0.005203
0.000120
Residual
RPTTF
0.077755
0.013685
0.183050
0.067894
0.237637
0.047455
0.075742
0.290435
0.006204
0.000143
Total
1.000000
1.000000
Taxing Agency
Pass-Thrus
* The starred agencies receive RPTTF revenue pursuant to negotiated
agreements described later in this report
Source: Butte County Auditor-Controller
UNITARY UTILITY REVENUE
As provided by Assembly Bill 454, tax revenue from unitary utility property is disbursed in a
different manner than revenue from non-unitary property. Unitary utility taxes are apportioned by
the County Auditor-Controller based on a regional distribution methodology, regardless as to
where the unitary utility property is located. Typically, unitary utility taxes are relatively small
and see limited growth due to this methodology.
17
The County Auditor-Controller has not reported any unitary utility revenue for the Project Area,
so RSG has not accounted this in our forecast.
COUNTY ADMINISTRATIVE FEES
Actual RPTTF disbursements are net of the tax collection fee charged by the County AuditorController pursuant to Senate Bill 2577 and the Dissolution Act. The tax collection fee varies
slightly from year to year, based on actual costs incurred by the County for administration of
property taxes to the Agency. These charges are assessed biannually, prior to remittance of
RPTTF to the Agency.
The County Auditor-Controller reported that the tax collection fee was approximately 3.39
percent of gross RPTTF revenue received in 2014-15. For the purposes of these projections,
RSG has assumed that the County administrative fee would be equal to this rate of gross
RPTTF revenues.
DELINQUENCY RATES / TEETER PLAN
According to the County Auditor-Controller, the Project Area is on the County’s Teeter Plan,
under which the Auditor-Controller distributes revenues to the Agency and other districts based
on billed amounts, rather than actual receipts, prior to full collections of secured value. While
this makes for a more predictable flow of revenue by removing risk for delinquent taxes, Teeter
Plan districts to not share in the benefit of interest and other charges on delinquent payments.
RSG has assumed no changes in Teeter Plan status of the Project Area, and therefore no
allowances for delinquent taxes in our forecast.
TAX INCREMENT/RPTTF REVENUE COLLECTION HISTORY
From 2009-10 through FY 2014-15, actual tax increment and RPTTF revenues have exceeded
100 percent of estimated collections, based on a 1 percent levy on the incremental assessed
value. This includes supplemental tax collections.
Figure 10 presents the actual amount of tax increment collected by the Auditor-Controller in the
last 5 years. It also shows the gross RPTTF available to fund Agency obligations after
redevelopment dissolution was enacted on February 1, 2012. Gross RPTTF Available equals
gross tax increment less county administrative fees and pass-through payments, which are
made directly by the Auditor-Controller. The amount of RPTTF distributed to the Agency is
limited to funding enforceable obligations approved by DOF. The amount of RPTTF distributed
to the Agency in FY 2012-13 is lower than other years because Oroville employed cash
balances to fund enforceable obligations from January 2012 through June 2013 as directed by
DOF.
18
FIGURE 10: ESTIMATED TO ACTUAL TAX INCREMENT/RPTTF REVENUES
Year
2010-11
2011-12
2012-13
2013-14
2014-15
Incremental
Value
Incremental
Revenue /1
744,681,026
727,409,535
715,096,934
713,200,507
732,635,135
7,446,810
7,274,095
7,150,969
7,132,005
7,326,351
Actual
Collections /2
7,768,360
7,778,617
7,446,567
7,307,500
7,654,235
Est to
Actual
104.32%
106.94%
104.13%
102.46%
104.48%
Gross RPTTF
RPTTF
Available to Distributed to
Agency /3
Agency /4
n/a
2,946,131
5,724,724
5,374,887
5,729,598
n/a
2,565,836
125,000
2,296,502
1,902,163
1/ Incremental Revenue is estimated at 1.0% of Incremental Value.
2/ Actual collections provided by the County Auditor-Controller. May be higher or lower due to supplemental taxes
and delinquencies.
3/ Net RPTTF available for ROPS obligations after county administrative fees and pass-through payments are made
by the County. FY 2011-12 shows RPTTF distributed after redevelopment dissolution was enacted on February 1,
2012, in the middle of the fiscal year. It does not include tax increment distributed to the agency in the first half of
the fiscal year prior to dissolution.
4/ Total RPTTF distributed to the Successor Agency for approved ROPS obligations. Oroville employed cash
balances to pay for ROPS obligations in-lieu of receiving RPTTF from January 2012 through June 2013 pursuant
to State Law.
Source: Butte County Auditor-Controller
PAYMENTS TO AFFECTED TAXING AGENCIES
The Agency has several types of fiscal obligations to the affected taxing agencies that levy
property taxes in the Project Area. When the Redevelopment Plan was adopted in 1981, the
requirements of the Community Redevelopment Law (“CRL”) provided the former
Redevelopment Agency and affected taxing entities with the option of either 1) negotiating tax
sharing agreements of some or all of each entity’s share of the tax increment revenue, or 2)
allowing these taxing agencies the option of unilaterally electing to receive of the portion of tax
increment revenues attributed to Proposition 13 annual inflationary adjustment in real property
values in the Project Area. Later, as more thoroughly discussed, the courts clarified the intent of
the CRL regarding the unilateral election, making it clear that, while most affected taxing entities
had the option of taking the unilateral election if they did not have a negotiated tax sharing
agreement with a redevelopment agency, any affected school district would be required to do so
and therefore must receive either this unilateral election or payments pursuant to a tax sharing
agreement.
In 1994, the CRL changed the manner in which taxing agencies could subsequently collect tax
increment revenue, establishing the current statutory formula that affects newer redevelopment
plans as well as certain amendments to pre-existing redevelopment plans. As a result of the
2001 amendment, the Agency has additional statutory pass-through obligations to certain taxing
agencies from both the Project Area.
Because taxing agency payments are senior to bond debt service, these financial obligations
with affected taxing agencies and their projected impact on revenues available for bond debt
service, are described in this section. The actual amount of tax increment/RPTTF revenue
shared will vary largely based on the Agency actual receipts each year. A forecast of these
payments is included in the RPTTF revenue projections. Should actual RPTTF revenue exceed
or fall below these projections, actual payments may be higher or lower.
19
COUNTY OF BUTTE FISCAL MITIGATION AGREEMENT
On July 6, 1981, the former Redevelopment Agency and the County of Butte entered into a
fiscal mitigation agreement that provided for a pass through of tax increment revenue to the
County General Fund in the amount of 9.05 percent of annual gross tax increment (RPTTF)
revenues. The agreement was also memorialized in the original 1981 Redevelopment Plan.
Later, the former Redevelopment Agency and the County amended the agreement on
September 18, 2001 which provided for an increase in these payments equal to 14.08 percent
of any annual tax increment/RPTTF revenue received after July 1, 2002, and the then conflicting
language in the original Redevelopment Plan was eliminated in the 2001 Plan Amendment.
OROVILLE CEMETERY DISTRICT FISCAL MITIGATION AGREEMENT
On July 6, 1981, the former Redevelopment Agency and the Oroville Cemetery District entered
into a fiscal mitigation agreement that stipulates that the Oroville Cemetery District would
receive a full pass through of their entire share of the tax increment/RPTTF revenue. The
agreement was also memorialized in the Redevelopment Plan.
THOMPSON FLAT CEMETERY DISTRICT, BUTTE MOSQUITO ABATEMENT DISTRICT
AND OROVILLE MOSQUITO ABATEMENT DISTRICT PASS THROUGH
Though no separate agreement exists between the Agency and these three taxing agencies,
the Redevelopment Plan explicitly excludes all of these three entities’ shares of the tax
increment revenue from distribution to the Agency. In effect, these three agencies each receive
a full pass through of tax increment/RPTTF revenue as a result of this provision.
FEATHER RIVER RECREATION AND PARK DISTRICT PASS THROUGH
Similar to the three taxing agencies that received pass through directly in the Redevelopment
Plan, the Feather River Recreation and Park District collect a share of the tax increment
revenue from the Project Area under the Redevelopment Plan. Their payments are computed
based on the lesser of: 7.5 percent of the annualized growth of the Project Area’s 1980-81 base
year value, or the actual annual growth rate in any given year.
STATUTORY TAXING AGENCY PAYMENTS
The Agency has additional taxing agency payment obligations pursuant to Section 33607.7 of
the Health and Safety Code triggered as a result of the 2001 amendment to the Redevelopment
Plan (“Statutory Payments”). These Statutory Payments are made to taxing agencies that do
not receive a pass through payment as described above, including:
•
•
•
•
•
•
•
•
Oroville Elementary School District
Thermalito Elementary School District
Oroville Union High School District
Butte County Superintendent of Schools
Butte Community College District
City of Oroville
South Feather River Water and Power District
Lake Oroville Public Utility District
20
The Statutory Payments are based on a series of three tiers, based on specific dates, at which
time the Agency shares revenues from a portion of that tiers incremental growth in assessed
value. In general, payments are computed from the increase over the base year for each tier.
The chart below summarized the timing of these payments by area:
Statutory Payment Summary
Original Area
Tier 1: First Adjusted Base Year
Amount Shared over Base
2003-04
20.0%
Tier 2: Base Year
Amount Shared
2013-14
16.8%
Tier 3: Base Year
Amount Shared
2033-34
11.2%
Statutory payments are calculated annually using the Project Area assessed value and each
taxing entity’s share of the tax levy. Tier 1 payments are calculated using 20 percent of the tax
increment/RPTTF revenue that exceeds the adjusted base year revenue. Tier 2 payments
commenced in FY 2013-14, when the Agency must pay an additional 16.8 percent of the
incremental increase in RPTTF revenue exceeding amounts in the tenth payment year. Tier 3
payments commence in 2033-34, provided the Agency still has enforceable obligations to pay
that year.
SANTA ANA USD CASE / DISTRIBUTIONS TO SCHOOL DISTRICTS
Pursuant to the Court of Appeals decision in Santa Ana Unified School District vs. Orange
County Development Agency, some school districts in California are automatically entitled to “2
percent” payments of the “inflationary revenues” from redevelopment plans adopted between
January 1, 1985 and December 31, 1993. However, because the Redevelopment Plan was
adopted in 1981, the Court’s decision does not affect RPTTF payments due to the Project Area
school districts.
REVENUE PROJECTIONS AND CONSULTANT’S DISCL AIM ER
RSG has attempted to take into account pertinent factors during the preparation of the Revenue
Projections and Taxing Agency Payments (Figures 11 through 12) and this Report. Our goal is
to provide realistic revenue projections without overstating future RPTTF revenues. While
precautions have been taken to assure the accuracy of the data used in the formulation of these
Revenue Projections, it cannot be assured that projected valuations or revenues will be
realized. The Agency staff and financial advisors have not informed RSG of any facts that may
alter these projections. Future events and conditions that cannot be controlled may affect actual
assessed valuations and revenues.
21
SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
FISCAL CONSULTANT REPORT
FIGURE 11A: RPTTF REVENUE FORECAST
Assessed Value Forecast
Plan
Year
Fiscal
Year
34
35
36
37
38
2014-15
2015-16
2016-17
2017-18
2018-19
2.556%
2.000%
2.000%
2.000%
39
40
41
42
43
2019-20
2020-21
2021-22
2022-23
2023-24
2.000%
2.000%
2.000%
2.000%
2.000%
44
45
46
47
48
49
50
51
52
53
Unsecured
Total
Incremental
$ 791,702,528
811,938,238
828,177,003
844,740,543
861,635,354
$ 147,493,079
147,493,079
147,493,079
147,493,079
147,493,079
$ 939,195,607
959,431,317
975,670,082
992,233,622
1,009,128,433
$ 732,635,135
752,870,845
769,109,610
785,673,150
802,567,961
878,868,061
896,445,422
914,374,330
932,661,817
951,315,053
147,493,079
147,493,079
147,493,079
147,493,079
147,493,079
1,026,361,140
1,043,938,501
1,061,867,409
1,080,154,896
1,098,808,132
819,800,668
837,378,029
855,306,937
873,594,424
892,247,660
2024-25
2025-26
2026-27
2027-28
2028-29
2.000%
970,341,354
2.000%
989,748,182
2.000% 1,009,543,145
2.000% 1,029,734,008
2.000% 1,050,328,688
147,493,079
147,493,079
147,493,079
147,493,079
147,493,079
1,117,834,433
1,137,241,261
1,157,036,224
1,177,227,087
1,197,821,767
911,273,961
930,680,789
950,475,752
970,666,615
991,261,295
2029-30
2030-31
2031-32
2032-33
2033-34
2.000%
2.000%
2.000%
2.000%
2.000%
147,493,079
147,493,079
147,493,079
147,493,079
147,493,079
1,218,828,341
1,240,255,046
1,262,110,286
1,284,402,630
1,307,140,821
1,012,267,869
1,033,694,574
1,055,549,814
1,077,842,158
1,100,580,349
Secured AV
Growth
Rate
1,071,335,262
1,092,761,967
1,114,617,207
1,136,909,551
1,159,647,742
22
SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
FISCAL CONSULTANT REPORT
FIGURE 11B: RPTTF REVENUE FORECAST
Plan
Year
Redevelopment Property Tax Trust Fund Projections
Fiscal
Year
Gross
Revenue
County
Admin
3.39%
34
35
36
37
38
2014-15 /2 $
2015-16
2016-17
2017-18
2018-19
7,654,235
7,427,530
7,609,902
7,773,914
7,941,206
39
40
41
42
43
2019-20
2020-21
2021-22
2022-23
2023-24
8,111,843
8,285,893
8,463,425
8,644,507
8,829,210
(274,594)
(280,486)
(286,495)
(292,625)
(298,877)
44
45
46
47
48
2024-25
2025-26
2026-27
2027-28
2028-29
9,017,608
9,209,774
9,405,783
9,605,712
9,809,640
(305,255)
(311,760)
(318,395)
(325,163)
(332,066)
49
50
51
52
53
2029-30
2030-31
2031-32
2032-33
2033-34
10,017,646
10,229,812
10,446,222
10,666,960
10,892,113
$ 180,042,934
Gross RPTTF
$ 117,663,608
297,706,542
300,000,000
Taxing
Agency
Payments
Gross
RPTTF
Available
$ (259,103) $ (1,665,534) $
(251,429)
(1,759,549)
(257,603)
(1,847,226)
(263,155)
(1,926,076)
(268,818)
(2,006,502)
2015
TARB D/S
(Preliminary)
Subordinate
Enforceable
Obligations
Residual
RPTTF
Net
RPTTF
/1
5,729,598
5,416,552
5,505,074
5,584,684
5,665,886
(1,527,288)
(1,559,149)
(1,570,263)
(1,563,788)
$ (1,902,163) $
(309,092)
(269,134)
(269,177)
(269,220)
3,827,435
3,580,172
3,676,792
3,745,245
3,832,878
(2,088,538)
(2,172,214)
(2,257,563)
(2,344,620)
(2,433,417)
5,748,712
5,833,194
5,919,366
6,007,262
6,096,916
(1,566,588)
(1,562,888)
(1,581,938)
(1,578,188)
(1,552,438)
(269,264)
(269,310)
(269,356)
(269,403)
(269,451)
3,912,860
4,000,997
4,068,073
4,159,671
4,275,027
4,198,983
4,284,897
4,395,352
4,484,835
4,554,183
(2,523,991)
(2,616,376)
(2,710,609)
(2,806,726)
(2,904,766)
6,188,362
6,281,638
6,376,779
6,473,823
6,572,807
(1,554,438)
(1,553,438)
(1,554,313)
(1,547,063)
(1,561,013)
(269,500)
(269,550)
(269,601)
(269,653)
(269,706)
4,364,425
4,458,650
4,552,865
4,657,107
4,742,089
4,653,184
4,751,124
4,852,918
4,948,605
5,067,551
(339,107)
(3,004,767)
6,673,772
(346,289)
(3,106,767)
6,776,756
(353,615)
(3,210,808)
6,881,799
(361,087)
(3,316,929)
6,988,943
(368,709)
(3,425,173)
7,098,231
$ (6,094,631) $ (50,128,151) $ 123,820,152
(1,561,988)
(340,213)
(1,275,394)
(269,760)
(499,641)
(269,872)
(634,031)
(505,582)
$ (25,010,380) $ (7,892,467)
4,842,024
5,936,902
5,336,533
6,354,912
6,592,648
5,175,622
4,292,910
5,109,688
4,312,048
4,299,464
$ 89,125,629
Tax Increment Cap Analysis
Revenue Through June 30, 2014
Collected & Projected Revenue
Cumulative Cap
$
3,826,801
3,847,358
3,933,111
4,028,669
4,108,327
Net RPTTF
$ 108,605,204
197,730,833
300,000,000
1/ Net RPTTF excludes residual RPTTF revenues distributed to affected taxing entities
2/ FY 2014-15 revenues are based on actual collections, including supplemental tax revenues. Future year projections do not include
supplemental tax revenues.
23
SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
FISCAL CONSULTANT REPORT
FIGURE 12A: RPTTF TAXING AGENCY PAYMENTS
Negotiated Agreements
Fiscal
Year
2014-15
2015-16
2016-17
2017-18
2018-19
Butte
County
9 + 14%
$
846,949
875,441
898,305
921,627
945,415
El Medio
Fire
0.00%
Feather River
Rec & Park
4.23%
Thompson
Flat Cem
0.031%
$
$
$
-
239,432
249,754
258,037
266,486
275,103
2,300
2,364
2,415
2,467
2,520
Oroville
Cem Dist
1.126%
$
Butte Co
Mosq
0.266%
82,473
84,751
86,579
88,443
90,345
$ 19,495
20,034
20,466
20,907
21,356
Oroville
Mosq
0.774%
$
Subtotal
56,677
58,242
59,498
60,780
62,087
$ 1,247,327
1,290,586
1,325,300
1,360,709
1,396,826
2019-20
2020-21
2021-22
2022-23
2023-24
969,678
994,427
1,019,671
1,045,420
1,071,684
-
283,893
292,859
302,004
311,332
320,847
2,574
2,629
2,686
2,743
2,802
92,285
94,264
96,282
98,341
100,440
21,815
22,283
22,760
23,246
23,743
63,420
64,780
66,167
67,581
69,024
1,433,665
1,471,242
1,509,569
1,548,663
1,588,539
2024-25
2025-26
2026-27
2027-28
2028-29
1,098,473
1,125,797
1,153,669
1,182,097
1,211,095
-
330,552
340,450
350,547
360,846
371,351
2,861
2,922
2,984
3,048
3,113
102,582
104,767
106,995
109,268
111,586
24,249
24,765
25,292
25,829
26,377
70,496
71,997
73,529
75,091
76,684
1,629,213
1,670,700
1,713,017
1,756,180
1,800,206
2029-30
2030-31
2031-32
2032-33
2033-34
1,240,672
1,270,841
1,301,613
1,333,001
1,365,016
$ 21,870,890
-
382,066
392,995
404,143
415,514
427,112
$ 6,575,325
3,179
3,246
3,314
3,384
3,456
57,008
113,951
116,363
118,823
121,333
123,892
$ 2,043,762
26,936
27,507
28,088
28,681
29,286
$ 483,117
78,309
79,967
81,657
83,382
85,141
$ 1,404,508
1,845,113
1,890,918
1,937,639
1,985,295
2,033,903
$ 32,434,611
$
24
SUCCESSOR AGENCY TO THE OROVILLE REDEVELOPMENT AGENCY
FISCAL CONSULTANT REPORT
FIGURE 12B: RPTTF TAXING AGENCY PAYMENTS
Statutory Payments
Oroville
Elem
15.35%
2014-15
2015-16
2016-17
2017-18
2018-19
$
95,694
108,792
119,303
130,025
140,960
Thermalito
Elem
5.69%
$
Oroville
Union HS
19.93%
35,493
40,352
44,250
48,227
52,283
$ 124,231
141,236
154,882
168,800
182,997
Butte Co
Schools
3.98%
$
24,809
28,204
30,929
33,709
36,544
Butte
College
6.35%
$
City
Oroville
24.20%
39,596
45,016
49,365
53,802
58,327
$ 140,438
150,233
158,093
166,111
174,288
S. Feather Lake Orov
W&P
PUD
0.52%
0.01%
$
3,243
3,687
4,044
4,407
4,778
$
75
85
93
102
110
Subtotal
$
Total Taxing
Agency
Payments
463,580
517,605
560,960
605,182
650,288
$ 1,710,906
1,808,191
1,886,260
1,965,891
2,047,114
2019-20
2020-21
2021-22
2022-23
2023-24
152,115
163,493
175,098
186,935
199,009
56,420
60,640
64,945
69,335
73,813
197,478
212,249
227,315
242,682
258,357
39,436
42,385
45,394
48,463
51,593
62,942
67,650
72,452
77,350
82,346
182,630
191,138
199,816
208,668
217,697
5,156
5,541
5,935
6,336
6,745
119
128
137
146
155
696,296
743,224
791,091
839,916
889,716
2,129,961
2,214,466
2,300,660
2,388,579
2,478,256
2024-25
2025-26
2026-27
2027-28
2028-29
211,324
223,886
236,699
249,769
263,099
78,381
83,040
87,793
92,640
97,585
274,345
290,653
307,287
324,254
341,560
54,786
58,043
61,364
64,753
68,209
87,442
92,640
97,942
103,349
108,865
226,907
236,300
245,882
255,655
265,624
7,162
7,588
8,023
8,466
8,917
165
175
185
195
206
940,513
992,326
1,045,175
1,099,081
1,154,065
2,569,726
2,663,026
2,758,192
2,855,261
2,954,271
2029-30
2030-31
2031-32
2032-33
2033-34
276,697
290,566
304,712
319,142
333,860
$ 4,181,178
102,628
107,772
113,019
118,371
123,830
$ 1,550,819
359,213
377,218
395,583
414,316
433,424
$ 5,428,083
71,734
75,329
78,997
82,738
86,553
$ 1,083,972
114,492
120,230
126,084
132,055
138,145
$ 1,730,090
275,792
286,163
296,742
307,533
318,539
$ 4,504,251
9,378
9,848
10,328
10,817
11,316
$ 141,714
216
227
238
249
261
3,266
1,210,149
1,267,355
1,325,704
1,385,221
1,445,928
$ 18,623,375
3,055,262
3,158,273
3,263,343
3,370,515
3,479,831
$ 51,057,986
$
25
This Page Intentionally Left Blank
APPENDIX H
DOF DETERMINATION LETTER
H-1
APPENDIX I
SPECIMEN MUNICIPAL BOND INSURANCE POLICY
I-1
MUNICIPAL BOND
INSURANCE POLICY
ISSUER:
BONDS:
Policy No:
$ in aggregate principal amount of
-N
Effective Date:
Premium: $
ASSURED GUARANTY MUNICIPAL CORP. ("AGM"), for consideration received, hereby
UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee (the "Trustee") or paying agent (the
"Paying Agent") (as set forth in the documentation providing for the issuance of and securing the Bonds) for
the Bonds, for the benefit of the Owners or, at the election of AGM, directly to each Owner, subject only to
the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and
interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by
the Issuer.
On the later of the day on which such principal and interest becomes Due for Payment or the
Business Day next following the Business Day on which AGM shall have received Notice of Nonpayment,
AGM will disburse to or for the benefit of each Owner of a Bond the face amount of principal of and interest
on the Bond that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but
only upon receipt by AGM, in a form reasonably satisfactory to it, of (a) evidence of the Owner's right to
receive payment of the principal or interest then Due for Payment and (b) evidence, including any
appropriate instruments of assignment, that all of the Owner's rights with respect to payment of such
principal or interest that is Due for Payment shall thereupon vest in AGM. A Notice of Nonpayment will be
deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such
Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of
Nonpayment received by AGM is incomplete, it shall be deemed not to have been received by AGM for
purposes of the preceding sentence and AGM shall promptly so advise the Trustee, Paying Agent or
Owner, as appropriate, who may submit an amended Notice of Nonpayment. Upon disbursement in
respect of a Bond, AGM shall become the owner of the Bond, any appurtenant coupon to the Bond or right
to receipt of payment of principal of or interest on the Bond and shall be fully subrogated to the rights of the
Owner, including the Owner's right to receive payments under the Bond, to the extent of any payment by
AGM hereunder. Payment by AGM to the Trustee or Paying Agent for the benefit of the Owners shall, to
the extent thereof, discharge the obligation of AGM under this Policy.
Except to the extent expressly modified by an endorsement hereto, the following terms shall have
the meanings specified for all purposes of this Policy. "Business Day" means any day other than (a) a
Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer's
Fiscal Agent are authorized or required by law or executive order to remain closed. "Due for Payment"
means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date
on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to
any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking
fund redemption), acceleration or other advancement of maturity unless AGM shall elect, in its sole
discretion, to pay such principal due upon such acceleration together with any accrued interest to the date
of acceleration and (b) when referring to interest on a Bond, payable on the stated date for payment of
interest. "Nonpayment" means, in respect of a Bond, the failure of the Issuer to have provided sufficient
funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and
interest that is Due for Payment on such Bond. "Nonpayment" shall also include, in respect of a Bond, any
payment of principal or interest that is Due for Payment made to an Owner by or on behalf of the Issuer
which
has
been
recovered
from
such
Owner
pursuant
to
the
Page 2 of 2
Policy No. -N
United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order
of a court having competent jurisdiction. "Notice" means telephonic or telecopied notice, subsequently
confirmed in a signed writing, or written notice by registered or certified mail, from an Owner, the Trustee or
the Paying Agent to AGM which notice shall specify (a) the person or entity making the claim, (b) the Policy
Number, (c) the claimed amount and (d) the date such claimed amount became Due for Payment. "Owner"
means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the
terms of such Bond to payment thereof, except that "Owner" shall not include the Issuer or any person or
entity whose direct or indirect obligation constitutes the underlying security for the Bonds.
AGM may appoint a fiscal agent (the "Insurer's Fiscal Agent") for purposes of this Policy by
giving written notice to the Trustee and the Paying Agent specifying the name and notice address of the
Insurer's Fiscal Agent. From and after the date of receipt of such notice by the Trustee and the Paying
Agent, (a) copies of all notices required to be delivered to AGM pursuant to this Policy shall be
simultaneously delivered to the Insurer's Fiscal Agent and to AGM and shall not be deemed received until
received by both and (b) all payments required to be made by AGM under this Policy may be made directly
by AGM or by the Insurer's Fiscal Agent on behalf of AGM. The Insurer's Fiscal Agent is the agent of AGM
only and the Insurer's Fiscal Agent shall in no event be liable to any Owner for any act of the Insurer's Fiscal
Agent or any failure of AGM to deposit or cause to be deposited sufficient funds to make payments due
under this Policy.
To the fullest extent permitted by applicable law, AGM agrees not to assert, and hereby waives,
only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses
(including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or
otherwise, to the extent that such rights and defenses may be available to AGM to avoid payment of its
obligations under this Policy in accordance with the express provisions of this Policy.
This Policy sets forth in full the undertaking of AGM, and shall not be modified, altered or
affected by any other agreement or instrument, including any modification or amendment thereto. Except to
the extent expressly modified by an endorsement hereto, (a) any premium paid in respect of this Policy is
nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the
Bonds prior to maturity and (b) this Policy may not be canceled or revoked. THIS POLICY IS NOT
COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76
OF THE NEW YORK INSURANCE LAW.
In witness whereof, ASSURED GUARANTY MUNICIPAL CORP. has caused this Policy to be
executed on its behalf by its Authorized Officer.
ASSURED GUARANTY MUNICIPAL CORP.
By
Authorized Officer
A subsidiary of Assured Guaranty Municipal Holdings Inc.
31 West 52nd Street, New York, N.Y. 10019
(212) 974-0100
Form 500NY (5/90)