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Item 14 Staff Report Consider Adopting Resolutions Approving the 2001-02 Annual Report for the Los Gatos Redevelopment Agencyn MEETING DATE: 12/16/02 ITEM NO. COUNCIL/AGENCY AGENDA REPORT DATE: DECEMBER 5, 2002 Li TO: MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: TOWN MANAGER/EXECUTIVE DIRECTOR SUBJECT: CONSIDER ADOPTING RESOLUTIONS APPROVING THE 2001-02 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY. RECOMMENDATION: Adopt resolutions approving the 2001-02 Annual Report for the Los Gatos Redevelopment Agency. DISCUSSION: Pursuant to California Health and Safety Code §33080.1, the Redevelopment Agency shall present an annual report to Council within six months of the end of the fiscal year. The report shall contain: (1) an independent financial audit report for the previous fiscal year; (2) a fiscal statement for the previous fiscal year including the Agency's revenues, debts, the amounts of tax increment to be allocated to other districts; (3) a description of the Agency's activities in the previous fiscal year affecting housing; (4) a description of the Agency's progress in alleviating blight during the previous fiscal year; (5) information about loans made by the Agency at or exceeding $50,000 that were in default or otherwise not in compliance with the terms of the loan; (6) a description of the total number and nature of properties owned by the Agency and those acquired during the prior fiscal year; and (7) any other useful information to explain the Agency's programs. The 2001-02 audit (Attachment 1, Exhibit A) includes the auditor's opinion of the Agency's operations and financial position, and the Agency's compliance with laws, regulations and administrative requirements governing the agency, including all financial activities involving low - and moderate -income housing funds. The Statement of Housing Activity and the Annual Report of (Continued on Page 2) PREPARED BY: Steve Conway Finance Director Marty Woodworth "'"64j Redevelopment Manager Reviewed by: /L 3 Assistant Town Manager Oft, Town Attorney Clerk -Finance Community Development Revised: 12/5/02 10:26 am Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: ADOPT RESOLUTIONS APPROVING 2001-02 ANNUAL REPORT December 5, 2002 Financial Transactions (Attachment 1, Exhibits B and C) consist of forms provided by the State Department of Housing and Community Development. A number of major accomplishments were made by the Los Gatos Redevelopment Agency during the 2001-02 fiscal year. The Agency hired its first full-time employee to manage the Redevelopment Agency, affordable housing program and economic development activities. A financing plan was developed that prepared the Agency to issue approximately $11 million in long term debt to finance infrastructure projects in the Downtown. These COP's were issued at a very attractive interest rate. Construction, financed by the RDA COP's, commenced on the renovation of the Town Plaza Park and Santa Cruz Ave. streetscape improvements. These projects have been anticipated for many years but lacked financing until this time. Furthermore, funding was budgeted for the reconstruction of the Verizon and Bus Depot parking lots to provide more parking Downtown. The Agency, through the COP financing, also committed to contributing $300,000 toward the construction of a new Los Gatos Community Pool at Los Gatos High School. Finally, the Agency began the process of developing a Redevelopment Agency Affordable Housing Strategy in order to determine projects suitable for the Agency's 20 percent set -aside funds. It should be noted that the State, in order to help balance its budget, is proposing to take all unencumbered funds from the 20 percent set -aside accounts of redevelopment agencies statewide. It is not known at this time if this will actually occur and staff will inform the Council as more information is available. However, the Los Gatos Redevelopment Agency has approximately $1.7 million of unencumbered funds in this account, and a take of these funds by the State would severely impact its affordable housing efforts. Finally, for the fiscal year 2002-03, the State is taking $75 million from redevelopment agencies statewide as part of the ERAF shift. The Los Gatos Redevelopment Agency's portion will amount to about $100,000 from its general (non -housing set -aside) account. The Agency has adequate resources to make this payment. Although the State had indicated that this ERAF payment would only occur for fiscal year 2002-03, given the State budget deficit, it is anticipated that ERAF payments may continue. CONCLUSION: Upon approval by the Council, the Annual Report will be sent to the State Controller and the State Department of Housing and Community Development as required by State law. PAGE 3 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: ADOPT RESOLUTIONS APPROVING 2001-02 ANNUAL REPORT December 5, 2002 ENVIRONMENTAL ASSESSMENT: Approval of the Redevelopment Agency Annual Report is not a project subject to CEQA. FISCAL IMPACT: None ATTACHMENTS: 1. Resolutions (1-1 & 1-2) approving the 2001-2002 Annual Report for the Los Gatos Redevelopment Agency Exhibit A - Redevelopment Agency Audit for Fiscal Year 01-02 Exhibit B - Statement of Housing Activity for Fiscal Year 01-02 Exhibit C - Annual Report of Financial Transactions for Fiscal Year 01-02 MW:mdc N:\DE V\MARTY\annualreport\RdaOI-02ANN.rpt RESOLUTION 2002 - RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE 2001-02 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY WHEREAS: 1. The California Community Redevelopment Law (§33080.1) requires every redevelopment agency to present a report on financial and housing activity to its legislative body within six months of the end of the agency's fiscal year. 2. The Annual Report for the Redevelopment Agency consists of an independent financial audit report for the previous fiscal year, a fiscal statement for the previous fiscal year, and a description of the agency's activities affecting housing and displacement. 3. The audit issued by Maze and Associates, attached hereto as Exhibit A, gives an unqualified opinion of the Redevelopment Agency's financial activities includes the auditor's opinion of the agency's operations and financial position, and the agency's compliance with laws, regulations and administrative requirements governing activities of the agency, including all financial activities involving low- and moderate -income housing funds. 4. The Statement of Housing Activity and the Annual Report of Financial Transactions, attached hereto as Exhibits B and C, consist of forms provided by the State Department of Housing and Community Development. 5. Approval of the 2001-02 Annual Report for the Los Gatos Redevelopment Agency does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"). RESOLVED, that the Town Council hereby approves and adopts the 2001-02 Annual Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A, B and C. Attachment 1 FURTHER RESOLVED, that the Town Council determines the planning and administrative expenses from the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate- income housing. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on thel6th day of December, 2002 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: /s/ MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA RESOLUTION 2002 - RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS APPROVING THE 2001-02 ANNUAL REPORT WHEREAS: 1. The California Community Redevelopment Law (§33080.1) requires every redevelopment agency to present a report on financial and housing activity to its legislative body within six months of the end of the agency's fiscal year. 2. The Annual Report for the Redevelopment Agency consists of an independent financial audit report for the previous fiscal year, a fiscal statement for the previous fiscal year, and a description of the agency's activities affecting housing and displacement. 3. The audit issued by Maze and Associates, attached hereto as Exhibit A, gives an unqualified opinion of the Redevelopment Agency's financial activities includes the auditor's opinion of the agency's operations and financial position, and the agency's compliance with laws, regulations and administrative requirements governing activities of the agency, including all financial activities involving low- and moderate -income housing funds. 4. The Statement of Housing Activity and the Annual Report of Financial Transactions, attached hereto as Exhibits B and C, consist of forms provided by the State Department of Housing and Community Development. , 5. Approval of the 2001-02 Annual Report for the Los Gatos Redevelopment Agency does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"). RESOLVED, that the Redevelopment Agency hereby approves and adopts the 2001-02 Annual Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A, B and C. FURTHER RESOLVED, that the Redevelopment Agency determines the planning and administrative expenses from the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate- income housing. PASSED AND ADOPTED at a regular meeting of the Town Council/Redevelopment Agency of the Town of Los Gatos, California, held on thel6th day of December, 2002 by the following vote: REDEVELOPMENT AGENCY MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: /s/ CHAIR OF REDEVELOPMENT AGENCY TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: SECRETARY OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS LOS GATOS, CALIFORNIA REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMPONENT UNIT FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2002 AND 2001 EXHIBIT A REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS Component Unit Financial Statements For The Years Ended June 30, 2002 and 2001 TABLE OF CONTENTS Page Independent Auditor's Report 1 Component Unit Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statements of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Capital Project Funds - Budget and Actual 4 Notes to Component Unit Financial Statements 5 Combining Balance Sheets - Capital Project Funds 9 Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Capital Project Funds 11 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Capital Project Funds - Budget and Actual 12 Report On Compliance And On Internal Control Over Financial Reporting Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards 15 AZE do ASSOCIATES ACCOUNTANCY CORPORATION 1931 San Miguel Drive - Suite 100 Walnut Creek, California 94596 (925) 930-0902 • FAX (925) 930-0135 INDEPENDENT AUDITOR'S REPORT E-Mail: maze@mazeassociates.com Website: www.mazeassociates.com To the Governing Board of the Redevelopment Agency of the Town of Los Gatos We have audited the accompanying financial statements of the Redevelopment Agency of the Town of Los Gatos, a component unit of the Town of Los Gatos, as of and for the years ended June 30, 2002 and 2001 as listed in the table of contents. These component unit financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards for financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the component unit financial statements referred to above present fairly in all material respects the financial position of the Redevelopment Agency of the Town of Los Gatos as of June 30, 2002 and 2001 and the results of operations for the years then ended, in conformity with generally accepted accounting principles in the United States of America. In accordance with Government Auditing Standards, we have also issued reports dated November 6, 2002, on our consideration of the Agency's internal control structure and on its compliance with laws and regulations. November 6, 2002 1 A Professional Corporation RE. , JELOPMENT AGENCY OF THE TOWN OF LOS W. 3 COMBINED BALANCE SHEETS ALL FUND TYPES AND ACCOUNT GROUPS NNE 30, 2002 WITH COMPARATIVE AMOUNTS FOR JUNE 30, 2001 TOTALS (Memorandum Only) GOVERNMENTAL FUND TYPES ACCOUNT GROUPS Capital Debt General General Long - Projects Service Fixed Assets Term Debt 2002 2001 ASSETS Cash and investments (Note 2) $3,349,947 $5,707,230 $9,057,177 $7,481,408 Restricted cash and investments (Note 4) 470,431 470,431 442,712 Intergovernmental receivable 7,806 36,646 44,452 90,243 Parking Lot # 4 Project (Note 4) $4,067,708 4,067,708 4,067,708 Amount available in debt service fund $1,925,000 1,925,000 67,235 Amount to be provided for retirement of general long-term debt 2,002,325 Total Assets $3,357,753 $6,214,307 $4,067,708 $1,925,000 $15,564,768 $14,151,631 LIABILITIES Accounts payable $928,874 $2,222,398 $3,151,272 $895,804 Advance from Town of Los Gatos (Note 3) 1,968,500 1,968,500 1,968,500 Due to other agencies 16,729 16,729 505,836 Pass through obligations 81,680 81,680 1,560,968 Certificates of participation (Note 4) $1,925,000 1,925,000 2,069,560 Total Liabilities 928,874 4,289,307 1,925,000 7,143,181 7,000,668 FUND EQUITY Investment in general fixed assets $4,067,708 4,067,708 4,067,708 Fund balances: Reserved for : Low income housing 2,075,926 2,075,926 1,418,614 Debt service 470,431 470,431 442,712 Unreserved, designated for: Debt service 1,454,569 1,454,569 Unreserved, undesignated 352,953 352,953 1,221,929 Total Fund Equity 2,428,879 1,925,000 4,067,708 8,421,587 7,150,963 Total Liabilities and Fund Equity $3,357,753 $6,214,307 $4,067,708 $1,925,000 $15,564,768 $14,151,631 See accompanying notes to component unit financial statements 2 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMBINED STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 WITH COMPARATIVE AMOUNTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 TOTALS GOVERNMENTAL FUND TYPES (Memorandum Only) Capital Debt Projects Service 2002 2001 REVENUES Property tax increment $4,079,598 $4,079,598 $3,232,042 Interest $113,678 415,434 529,112 700,856 Other 1,305 1,305 63,161 Total Revenues 114,983 4,495,032 4,610,015 3,996,059 EXPENDITURES Capital outlay Project costs 1,991,351 1,991,351 1,477,109 Pass through payments 646,470 646,470 550,657 Debt service Principal (Note 4) 260,000 260,000 250,440 Interest (Notes 3 and 4) 441,570 441,570 479,060 Total Expenditures 1,991,351 1,348,040 3,339,391 2,757,266 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,876,368) 3,146,992 1,270,624 1,238,793 OPERATING TRANSFERS Operating transfers in 1,472,481 67,814 1,540,295 2,879,573 Operating transfers (out) (67,814) (1,472,481) (1,540,295) (2,879,573) Total Operating Transfers EXCESS (DEFICIENCY) OF REVENUES AND TRANSFERS OVER EXPENDITURES Fund balances at beginning of year Fund balances at end of year 1,404,667 (1,404,667) (471,701) 1,742,325 1,270,624 1,238,793 2,900,580 182,675 3,083,255 1,844,462 $2,428,879 $1,925,000 See accompanying notes to financial statements $4,353,879 $3,083,255 REDEVELOPMENT AGENC t OF THE TOWN OF LOS GATOS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2002 CAPITAL PROJECTS Variance Favorable Budget Actual (Unfavorable) REVENUES Interest $75,020 $113,678 $38,658 Other 1,305 1,305 Total Revenues 75,020 114,983 39,963 EXPENDITURES Capital outlay: Project costs 2,568,487 1,991,351 577,136 Total Expenditures 2,568,487 1,991,351 577,136 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,493,467) (1,876,368) 617,099 OTHER FINANCING SOURCES (USES) OPERATING TRANSFERS Operating transfer in 536,300 1,472,481 936,181 Operating transfer (out) (67,814) (67,814) Total Other financing sources (uses) 536,300 1,404,667 868,367 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES ($1,957,167) (471,701) $1,485,466 Fund balances at beginning of year 2,900,580 Fund balances at end of year $2,428,879 See accompanying notes to component unit financial statements REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS Notes To Component Unit Financial Statements NOTE 1- SIGNIFICANT ACCOUNTING POLICIES A. Description of the Redevelopment Agency and Redevelopment Plan - The Redevelopment Agency of the town of Los Gatos (the Agency) was created on December 4, 1989 uuxlei the provisions of the Redevelopment Law (California Health and Safety Code), for clearance and rehabilitation of areas determined to be in a declining condition in the Project Area. A Redevelopment Plan was adopted on November 25, 1991 to provide an improved physical, social and economic environment in the Central Los Gatos Redevelopment Project Area. As part of the Redevelopment Plan, the Agency entered into agreements with various taxing authorities which required the Agency to pass through portions of incremental property taxes to each taxing authority. Expenditures for these pass -through agreements amounted to $646,470 for the year ended June 30, 2002. In addition, as of June 30, 2002 the Agency owed $81,680 in pass -through amounts to other agencies. The Agency is authorized to finance the Plan from various sources, including assistance from the Town, the state and federal governments, property tax increments, interest income and the issuance of Agency debt. The Agency is an integral part of the Town of Los Gatos and, accordingly, the accompanying financial statements are included as a component of the general purpose financial statements prepared by the Town. A component unit is a separate governmental unit, agency or nonprofit corporation which, when combined with all other component units, constitutes the reporting entity as defined in the Town's general purpose financial statements. B. Fund Accounting In the Combined Financial Statements, these funds are grouped into the fund types and categories discussed below. The financial statements for each individual fund in each fund type are presented in the Combining Financial Statements section of this report. GOVERNMENTAL FUNDS Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary and trust funds). Debt Service Funds are used to account for financial resources to be used for the payment of principal and interest on long-term obligations. ACCOUNT GROUPS Account groups are used to establish accounting control for the Agency's general fixed assets and principal of its general long-term obligations. Because these assets and liabilities are long-term they are neither spendable resources nor do they require current appropriation. They are accounted for separately from governmental fund types. C. Basis of Accounting - Refers to when revenues and expenditures are recognized in the accounts and reported in the component unit financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. 5 _.EDEVELOPMENT AGENCY OF TM_ TOWN OF LOS GATOS Notes To Component Unit Financial Statements NOTE 1- SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental fund types are accounted for using the modified accrual basis of accounting, under which revenues are recognized when received, or accrued when they become available and measurable as net current assets. Expenditures are recognized when the related fund liability is incurred. Revenues susceptible to accrual consist principally of intergovernmental revenues. D. Budgets and Budgetary Accounting - The Agency adopts a budget effective July 1 for the capital projects fund. During the year ended June 30, 2002 the Agency incurred encumbrances which are reported as budgetary expenditures. However, since encumbrances represent commitments on open purchase orders, they are not included as expenditures reported in conformity with generally accepted accounting principles. NOTE 2 - CASH AND INVESTMENTS Agency cash is included in a Town -wide cash and investment pool. Details of the Town's cash and investment pool are presented in the Town's general purpose financial statements. The Town's investment policy and the California Government Code permit investments in obligations of the U.S. Treasury and its agencies, commercial paper, banker's acceptances, repurchase agreements, certificates of deposit, medium term notes, passbook savings account demand deposits, mutual funds and the State of California Local Agency Investment Fund. NOTE 3 — ADVANCE FROM THE TOWN The Town advanced $1,968,500 to the Agency to partially fund operations. The advance bears interest at 10% and is repayable on demand, provided that sufficient tax increment revenue funds are available. For the fiscal year ended June 30, 2002 the Agency paid the Town $196,850 in interest on this advance. NOTE 4 - REIMBURSEMENT AGREEMENT A. Accounting Treatment The Town issued Certificates of Participation (COPs) in the original principal amount of $2,960,000 dated August 1, 1992 to finance certain construction costs of the Town's Parking Lot 4 Project, which was constructed on land within the Central Los Gatos Project Area. The COPs are similar to debt; they allow investors to participate in a share of guaranteed payments which are made by the Town. Because they are similar to debt, the present value of the total of the payments to be made is recorded as long-term debt. Principal payments are due annually on August 1, with interest payments payable semi-annually on February 1 and August 1. The Town has pledged motor vehicle license fee revenues as collateral for the repayment of the Certificates. 6 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS Notes To Component Unit Financial Statements NOTE 4 - REI NIBURSEMENT AGREEMENT (Continued) To assist the Town in payingg the cost of the acquisition and construction of the Parking Lot 4 Project, the Town and its Redevelopment Agency entered into a Reimbursement Agreement. Under this agreement, the Agency will use available net tax increment revenues resulting from the Project's effect on land values to repay the Town for all lease payments made by the Town to the Agency under the lease agreement for the Project. Net tax increment revenues are all taxes allocated to and paid into the Redevelopment Agency Capital Projects Fund for the Project Area. Reimbursements under this agreement commenced in fiscal 1995-96. Accordingly the COPs have been recorded in the Agency's General Long -Term Debt Account Group. In addition, the Parking Lot #4 Project, which was constructed with proceeds of the COPs, has been included in the Agency's financial statements. B. Activity Changes in general long term debt were as follows: Balance at Balance at Interest Maturity June 30, June 30, Rates Date 2001 Retirements 2002 Certificates of Participation 5%-9% 2012 $2,185,000 $260,000 $1,925,000 Repayment requirements for general long term debt were as follows at June 30, 2002: Year Ending June 30 Certificates of Participation 2003 $249,895 2004 251,795 2005 252,995 2006 248,475 2007 248,500 Thereafter 1,253,500 Total payments due 2,505,160 Less amount representing interest 580,160 Principal amount $1,925,000 The Agency must maintain required amounts of cash and investments with the trustee under the terms of the COPs issue. These funds are pledged as reserves to be used if the Town fails to meet its obligations under the COPs issue. These reserves totaled $470,431 and $442,712 respectively, at June 30, 2002 and 2001. The California Government Code requires these funds to be invested in accordance with Town ordinance, bond indentures or State statutes. All these funds have been invested as permitted under the Code. 7 rcEDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS Notes To Component Unit Financial Statements NOTE 5 — SUBSEQUENT EVENT On July 18, 2002, the Town and the Los Gatos Redevelopment Agency issued $10,7250,000 in Certificates of Participation, 2002 Series A, at 2.5% to 5.0% interest rates, to finance the acquisition, construction, rehabilitation, equipping and improvement of several capital improvement projects. Principal payments will be due annually on August 1 with interest payments payable semi-annually on February 1 and August 1, commencing August 1, 2003 through 2031. The Town has pledged lease payments for the real property and facilities comprised of the Parks and Public Works Service Center and Baseball Field and Parking Lots No. 1, 2, and 3, as collateral for the repayment of the Certificate. 8 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMBINING BALANCE SHEETS CAPITAL PROJECTS FUNDS DUNE 30, 2002 WITH COMPARATIVE AMOUNTS FOR JUNE 30, 2001 ASSETS Cash and investments Intergovernmental receivable Total Assets TOTALS (Memorandum Only) Housing Redevelopment Set Aside 2002 2001 $1,274,888 $2,075,059 $3,349,947 $3,744,497 7,806 7,806 15,816 $1,274,888 $2,082,865 $3,357,753 $3,760,313 LIABILITIES Accounts payable $921,935 $6,939 $928,874 $859,733 Total Liabilities 921,935 6,939 928,874 859,733 FUND EQUITY Fund balances: Reserved for : Low income housing 2,075,926 2,075,926 1,418,614 Unreserved, undesignated 352,953 352,953 1,481,966 Total Fund Equity 352,953 2,075,926 2,428,879 2,900,580 Total Liabilities and Fund Equity $1,274,888 $2,082,865 $3,357,753 $3,760,313 See accompanying notes to component unit financial statements 9 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 WITH COMPARATIVE AMOUNTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 TOTALS (Memorandum Only) Housing Redevelopment Set Aside 2002 2UU1 REVENUE Interest S50,189 $63,489 $113,678 $270,793 Other 1,305 1,305 63,161 Total Revenue 51,494 63,489 114,983 333,954 EXPENDITURES Capital outlay: Project costs 1,837,068 154,283 1,991,351 1,477,109 Total Expenditures 1,837,068 154,283 1,991,351 1,477,109 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) OPERATING TRANSFERS (1,785,574) (90,794) (1,876,368) (1,143,155) Operating transfer in 656,561 815,920 1,472,481 2,682,723 Operating transfer (out) (67,814) (67,814) (196,850) Total other financing sources (uses) 656,561 748,106 1,404,667 2,485,873 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES (1,129,013) 657,312 (471,701) 1,342,718 Fund balances at beginning of year 1,481,966 1,418,614 2,900,580 1,557,862 Fund balances at end of year $352,953 $2,075.926 $2,428,879 $2.900,580 See accompanying notes to financial statements 11 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2002 REDEVELOPMENT HOUSING SET ASIDE Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget REVENUE Interest $50,189 $50,189 $75,020 $63,489 ($11,531) $75,020 Other 1,305 1,305 Total Revenue 51,494 51,494 75,020 63,489 (11,531) 75,020 EXPENDITURES Capital outlay; Project costs $2,064,087 1,837,068 227,019 504,400 154,283 350,117 2,568,487 Total Expenditures 2,064,087 1,837,068 227,019 504,400 154,283 350,117 2,568,487 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,064,087) (1,785,574) 278,513 (429,380) (90,794) 338,586 (2,493,467) OTHER FINANCING SOURCES (USES) OPERATING TRANSFERS Operating transfer in 656,561 656,561 536,300 815,920 279,620 536,300 Operating transfer (out) (67,814) (67,814) 656,561 656,561 536,300 748,106 211,806 536,300 Total other financing sources (uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES ($2,064,087) (1,129,013) $935,074 $106,920 657,312 $550,392 ($1,957,167) Fund balances at beginning of year Fund balances at end of year 1,481,966 1,418,614 5352,953_ $2.075,926 See accompanying notes to component unit financial statements 12 TOTALS Variance Favorable Actual (Unfavorable) $113,678 $38,658 1,305 1,305 114,983 39,963 1,991,351 577,136 1,991,351 577,136 (1,876,368) 617,099 1,472,481 936,181 (67,814) (67,814) 1,404,667 868,367 (471,701) $1,485,466 2,900,580 $2.428,879 13 AZE 8r ASSOCIATES ACCOUNTANCY CORPORATION 1931 San Miguel Drive - Suite 100 Walnut Creek, California 94596 (925) 930-0902 • FAX (925) 930-0135 E-Mail: maze @mazeassociates.com Website: www.mazeassociates.com REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Governing Board of the Redevelopment Agency of the Town of Los Gatos, California We have audited the financial statements of the Redevelopment Agency of the Town of Los Gatos as of and for the year ended June 30, 2002, and have issued our report thereon dated November 6, 2002. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Those provisions include provisions of laws and regulations identified by in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information of the Agency Board, management and federal awarding agencies and pass -through entities. However, this report is a matter of public record and its distribution is not limited. 7 � November 6, 2002 15 A Professional Corporation HCD ANNUAL REPORT OF HOUSING ACTIVITY OF COMMUNITY REDEVELOPMENT AGENCIES FOR THE FISCAL YEAR THAT ENDED 6 / 30 / 02 Agency Name and Address: County of Jurisdiction: Town of Los Gititos Redevelopment Agelney — Santa Clara HO E. Main St. Los Gatos, 95031 California Redevelopment law (Health and Safety Code Section 33080.1) requires agencies to annually report their housing activities and maintenance and use of the Low & Moderate Income Housing Fund (LMIHF) to enable the Department of Housing and Community Development (HCD) to compile and annually publish a report on redevelopment agencies' housing activities in accordance with Section 33080.6. (Note: Pursuant to Section 33080.3, submit this form and, if applicable, all completed HCD Schedules, to the State Controller.) Please answer each question below. Your answers determine which HCD SCHEDULES must be completed in order for the agency to fulfill the statutory requirement to report LMIHF housing activity and fund balances for the reporting period. 1. Check one of the items below to identify the Agency's status at the end of the reporting period: ❑ New (Agency formation occurred during reporting year. No financial transactions were completed). Active (Financial and/or housing transactions occurred during the reporting year) ❑ Inactive (No financial and/or housing transactions occurred during the reporting year). ❑ Dismantled (Agency adopted an ordinance to dissolve itself). 2. How many adopted proiect areas did the agency have during the reporting period? 1 How many project areas were merged during the reporting period? Q If the agency has one or more adopted project areas, complete SCHEDULE HCD-A for each project area. If the agency has no adopted project areas, DO NOT complete SCHEDULE HCD-A. 3. Within an area outside of any adopted redevelopment project area(s): (1) did the agency destroy or remove any dwelling units or displace any households over the reporting period, (2) will the agency displace any households over the next reporting period, (3) did the agency permit the sale of any owner -occupied unit prior to the expiration of land use controls, and/or (4) did the agency execute a contract or agreement for the construction of any affordable units over the next two years? O Yes (any question). Complete SCHEDULE HCD-B. No (all questions). DO NOT complete SCHEDULE HCD-B. 4. Did the agency have any funds in the Low & Moderate Income Housing Fund during the reporting period? Yes. Complete SCHEDULE HCD-C. ❑ No. DO NOT complete SCHEDULE HCD-C. 5. During the reporting period, were housing units completed within a project area and/or assisted by the agency outside a project area? ❑ Yes. Complete all applicable HCD SCHEDULES DI-D7 for each housing project completed and HCD SCHEDULE E. No. DO NOT complete HCD SCHEDULES D1-D7 or HCD SCHEDULE E. 6. HCD financial and housing activity information has been reported using the method checked below: ❑ Electronic. Report was completed on-line. "Lock Report" date was: . HCD SCHEDULES are not required. Note: "Lock Report" date is shown under "Administrative Area" and "Form History" (https://appl.hcd.ca.gov/rda). Forms. All required HCD SCHEDULES A, B, C, D1-D7, and E are attached. To the best of my knowledge, the representations made above and all HCD information reported are correct. Date Signature of Authorized Agency Representative Finance Director Title Telephone Number IF NOT REQUIRED TO REPORT BASED ON ABOVE ANSWERS, ONLY SUBMIT THIS PAGE. IF REQUIRED TO REPORT, SUBMIT THIS PAGE AND EITHER: ALL HCD SCHEDULES (APPLICABLE SCHA-E) OR PROOF OF ELECTRONIC REPORTING (accessible at: httn://www.hcdca.zov/rda6 SUBMIT TO THE STATE CONTROLLE:R Division of Accounting and Reporting Local Government Reporting Section P.O. Box 942850, Sacramento, CA 94250 California Redevelopment Agencies - Fiscal Year 2001-2002 Cover (7/ 1//02) HCD-Cover Page 1 of 1 EXHIBIT B SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6 / 30 / 02 Agency Name: Town of Los Gatos RDA Project Area Name: Central Los Gatos Preparer's Name, Title: Steve Conway, Finance D. Preparer's E-Mail Address: sconway@town.los—gatos.ca.us Preparer's Telephone No: (40R) 354-6828 Preparer's Facsimile No: (408) 199-5786 GENERAL INFORMATION 1. Project Area Information a, 1. Year IS' plan for project area was adopted: 1991 2. Year that plan was last amended (if applicable): 3. Current expiration of plan: 12 / 31 / 31 mo day yr b. If project area name has changed, give previous name(s) or number: N/A c. Year(s) of any mergers of the project area: N/A Identify former project areas that merged: d. Year(s) project area plan was amended and real property was either: (1) added: (2) removed: , 2. Affordable Housing Replacement and/or Inclusionary or Production Requirements (Section 33413). Pre-1976 project areas not subsequently amended after 1975: Pursuant to Section 33413(d), only Section 33413(a) replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency has elected to apply all or part of Section 33413, provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: N//A / Resolution Scope (applicable Section 33413 requirements): mo day yr Post-1975 project areas and geographic areas added by amendment after 1975 to pre-1976 project areas: Both the replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(1), 3b-3f, and 3i. can be taken from what is reported to the State Controller's Office (SCO) on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report, except for the reclassifying of Transfers -In from Internal Funds and the reporting of Other Sources as discussed below: Transfers -In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a-j. For example, report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set -aside percentage/amount by reporting gross tax increment on HCD-A, Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C, Line 4c. Do not report "net" funds transferred from the Debt Service Fund on HCD-A, Line 3a(3) when reporting debt service expenditures on HCD-C, Line 4c. Other Sources: Non-GAAP (Generally Acceptable Accounting Principles) revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h. Califomia Redevelopment Agencies — Fiscal Year 2001-2002 HCD-A Sch A (7/1/02) Page 1 of 6 Agency Name: Town of Los Gatos RDA Project Area Name: Central Los Gatos Project Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year. Any income related to agency -assisted housing located outside the project area(s) should be reported as "Other Revenue" on Line 3j. (of this Schedule A), if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a.-3i., should also be reported on Line 3j. Enter on Line 3a(1) the full 100% of gross Tax Increment allocated prior to applicable pass through of funds and deductions for fees (refer to Sections 33401, 33446, & 33676). Compute 20% of gross Tax Increment and enter the amount on Line 3a(2). Next, report the amount of Tax Increment set -aside before any exemption and/or deferral (if amount set -aside is less than 20%, explain the difference). If any amount of Tax Increment was exempted or deferred, in addition to completing lines 3a(4) and/or 3a(5), complete Line 4 and/or Line 5. To determine the amount of Tax Increment deposited to the Housing Fund [Line 3a(6)], subtract allowable amounts exempted [Line 3a(4)] or deferred [Line 3a(5)] from the actual amount allocated to the Housing Fund [Line 3a(3)]. a. Tax Increment: (1) 100% of Gross Allocation: $ 4,079,598 (2) Required 20% Housing Fund set -aside (Line 3a(1) x 20%): $ 815,920 (3) Actual amount allocated to Housing Fund S 815,920 * If less than 20% of the Gross Tax Increment (see 3a(2) above) is being set -aside in this project area in accordance with Section 33334.3(i), identify the project area(s) contributing the difference. Explain any other reason(s): (4) Amount Exempted [Health & Safety Code Section 33334.2] (if there is an amount exempted, also complete question #4, next page): ($ ) (5) Amount Deferred [Health & Safety Code Section 33334.6] (if there is an amount deferred, also complete question #5, next page): ($ ) (6) Total deposit to the Housing Fund [result of Line 3a(3) through 3a(5)]: $ 815,920 b. Interest Income: $ 63,489 c. Rental/Lease Income (combine amounts separately reported to the SCO): $ d. Sale of Real Estate: $ e. Grants (combine amounts separately reported to the SCO): $ f. Bond Administrative Fees: $ g. Deferral Repayments (also complete Line 5c(2) on the next page): $ h. Loan Repayments: $ i. Debt Proceeds: $ j. Other Revenue(s) [Explain and identify amount(s)]: k. Total Project Area Receipts Deposited to Housing Fund (add lines 3a(6). through 3j.): $ 879,409 Califomia Redevelopment Agencies — Fiscal Year 2001-2002 Sch A (7/1/02) HCD-A Page 2 of 6 SCHEDULE HCD-E CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION BASED ON SPECIFIED HOUSING ACTIVITY DURING THE REPORTING YEAR Agency: Town of i.nn Caton RpirlPirco lnpmpur At pncy Name of Project or Area (if applicable, list "Outside" or "Summary": Central Los Gatos Complete this form to report activity separately by project or area or to summarize activity for the year. Report all new construction and/or substantial rehabilitation units from Forms D2 through D7 that were: (a) developed by the agency and/or (b) developed only in a project area by a nonagency person or entity. PART I IH&SC Section 33413(b)(1)] AGENCY DEVELOPED UNITS DURING THE REPORTING YEAR 0 BOTH INSIDE AND OUTSIDE OF A PROJECT AREA 1. New Units Developed by the Agency 0 2. Substantially Rehabilitated Units Developed by the Agency 0 3. Subtotal - Baseline of Agency Developed Units (add lines 1 & 2) 0 4. Subtotal of Increased Inclusionary Obligation (Line 3 x 30%) (see Notes 1 and 2 below) 0 5. Very -Low Inclusionary Obligation Increase Units (Line 4 x 50%) 0 PART II IH&SC Section 33413(b)(2)] NONAGENCY DEVELOPED UNITS DURING THE REPORTING YEAR ONLY INSIDE A PROJECT AREA 6. New Units Developed by Any Nonagency Person or Entity 0 7. Substantially Rehabilitated Units Developed by Any Nonagency Person or Entity 0 8. Subtotal - Baseline of Nonagencv Developed Units (add lines 6 & 7) 0 9. Subtotal of Increased Inclusionary Obligation (Line 8 x 15%) (see Notes 1 and 2 below) 0 10. Very -Low Inclusionary Obligation Increase (Line 9 x 40%) 0 PART III REPORTING YEAR TOTALS 11. Total Increase in Inclusionary Obligation (add lines 4 and 9) 0 12. Very -Low Inclusionary Obligation Increase (add lines 5 and 10) (Line 12 is a subset of Line I 0 11) ****************************************************************************************************************************** NOTES: 1. Section 33413(b)(1), (2), and (4) require agencies to ensure that applicable percentages (30% or 15%) of all (market -rate and affordable) "new and substantially rehabilitated dwelling units" are made available at affordable housing cost within 10 year planning periods. Market -rate units: units not assisted with low -mod funds and jurisdiction does not control affordability restrictions. Affordable units: units generally restricted for the longest feasible time beyond the redevelopment plan's land use controls and jurisdiction controls affordability restrictions. Agency developed units: market -rate units can not exceed 70 percent and affordable units must be at least 30 percent; however, all units assisted with low -mod funds must be affordable. Nonagencv developed (project area) units: market -rate units can not exceed 85 percent and affordable units must be at least 15 percent. 2. Production requirements may be met on a project -by -project basis or in aggregate within each 10 year planning period. The percentage of affordable units relative to total units required within each 10 year planning period may be calculated as follows: AFFORDABLE units = Market -rate x (.30 or .15) TOTAL units = Market -rate or Affordable (.70 or .85) (.70 or .85) (.30 or .15) California Redevelopment Agencies - Fiscal Year 2001-2002 Sch E-I (7/1/02) HCD-E Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report General Information Fiscal Year 0 a 'E First Name Last Name Agency Officials (408) 354-6832 (408) 354-6828 m 0 0) iL Executive Director T cc 0 Fiscal Officer (408) 354-6830 0 c 0 dependent Auditor Report Prepared By m 0 oZi f6 5 Firm Name 0 N E 1- c a> a0i 0) J LL Middle Initial 1931 San Miguel Drive Suite 100 110 E. Main Street Walnut Creek U 0 0) (925) 930-0902 (408)354-6828 a) o m d :) V c v) U to N • a Members of the Governing Body First Name N E co z y co O C) 0 0) c g C co m c (C E N 6) 6) 6) N d d N - d EEEEEEEEE Mailing Address PO Box 949 ❑ Is Address Changed? (408)354-6828 d c 0 a 12/11/2002 General Information Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Achievement Information (Unaudited) \ Fiscal Year Indicate Only Those Achievements Completed During the Fiscal Year of this Report as a Direct Result of the Activities of the Redevelopment Agency. Square Footage Completed Rehabilitated Commercial Buildings / Industrial Buildings Public Buildings E Other Buildings Total Square Footage w Types Completed 12/11/2002 & a Achievement Information (Unaudited) Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Audit Information Fiscal Year ƒ 0 To cu ƒ e -o @ J/ csJ k/ 7/ ft co /� / 00 Q� n fl 7 Ta Indicate Financial Audit Opinion 0 2 k E a)kk§ a) a) ) om= Cr) (±g j F j\/ 4 / \ <eJ / % ± /0 CD J a * /22� § { E ooE » e 3g / }\/\ / . k0 \§ §/)/ ca �o !� �0\/ ) /$ f\ 0= S>5\ _\ c}2g • J= •= 5§ 2,= - of /3 /± /2/2 0 °0 h 72 /G${ ° �0 }\ <> (�f+ § E // /j /})\ % // / 0 Audit Information 0 o m 0 c cn 0 v- V 3 1 O E' H To O .v c H > N 0 , Q tja E C a) 0 E d Q > O d d CD ci) CL a) Project Area Report Project Area Name N O N Fiscal Year co } Forwarded from Prior Year ? 0 O N as tU o• as tkro. 0 0 0 0a-,_ cn Ol E N L.. O 0 0 Q 'O 0 Oci 4. 0 - > -c a - O a) j CL Enter Code for Type of Project Area Report A = Administrative Fund P = Standard Project Area Report 0 O. co } Does the Plan Include Tax Increment Provisions? rn O Date Project Area was Established Most Recent Date Project Area was Amended Did this Amendment Add New Territory? N C h ` ca E g c 1- > d E o 2 O > c Q U O O 0 Q U a> N E 2 8 i) O O O U oaj 0 0 C N d TA CO N m co CL Most Recent Date Project Area was Merged Will this Project Area be Carried Forward to Next Year? Established Time Limit : v O Repayment of Indebtedness 0 0 N Effectiveness of Plan 0 New Indebtedness 7 Size of Project Area in Acres 0 0 O 0 0 a as c co a a a a Q a�i N o Q a` 7.5 3 .s o .sr L.., k O x as co as O O C o c .- a .- t CD U Q d C C J LL CO c c's 0 C') c o a� c _ c CO LO O N .Q N to _ 17 CO @ Q N CO CD CO CO 0 0 cco a Ts)b Q U >o U 0 U a> c -o -o o a. c c d J 0 J U) LO. Q 0 a 0 w 0 0 o) (1 Q1 c° y -• CO w CO -c > L. U Z U z N ILI li li 0 R = Residential 0 0 C 0- Project Area Report Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Assessed Valuation Data N 0 O N Fiscal Year Los Gatos Project Area Project Area Name Frozen Base Assessed Valuation 3i Increment Assessed Valuation Total Assessed Valuation CD O CO d Assessed Valuation Data Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Pass -Through / School District Assistance O O Fiscal Year Project Area Name Other Payments Ie) en 434 e) M ° c o w w a) o U c 0, O .) 2 d 3 0 co 0 School Districts Community College District Special Districts Net Amount to Agency C 0 E 0 0 C co co cu N N N o 0 0 N 0 0 N CD 0) a Pass -Through / School District Assistance Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Summary of the Statement of Indebtedness - Project Area Fiscal Year Project Area Name Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt Low and Moderate Income Housing Fund 0) O) co CO CV L_ 0 N CO N 0 w M O 00) v_ CD LO O ce; O) CO 4, 472 O H Available Revenues Net Tax Increment Requirements 12/11/2002 Summary of the Statement of Indebtedness - Project Area Redevelopment Agency Of The Town Of Los Gatos Agency Long -Term Debt Fiscal Year Los Gatos Project Area Project Area Name 0) } Forward from Prior Year Certificates of Participation a) O 0 CO Year of Authorization O O CO O 0) N Principal Amount Authorized 0 O O 0 CO 0) N Principal Amount Issued Project Funding Purpose of Issue 0) O Maturity Date Beginning Year N 0 Maturity Date Ending Year Principal Amount Unmatured Beginning of Fiscal Year 0 0 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year 0 0 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: co a Agency Long -Term Debt Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures - Revenues Fiscal Year Project Area Name O H (Include All Apportionments) 664 69 LL $529,112 64 44 CD 664 $O $0 $0 0 M 44 T- i O O 1- (D 69. 50,189 415,434 I 63,489 69 CO 0 69 N 0 0 1C) Co .. 69 LO 0 M O0) d' 69 69 Special Supplemental Subvention Property Assessments Sales and Use Tax Transient Occupancy Tax Interest Income Rental Income Lease Income Sale of Real Estate Gain on Land Held for Resale Federal Grants Grants from Other Agencies Bond Administrative Fees Other Revenues Total Revenues 12/11/2002 Statement of Income and Expenditures - Revenues Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report C1 0) O. x w d L 7 m a x w c G1 E O v c O c d E R ( O' !0 Fiscal Year Project Area Name 0 0 L .410 3 c) v G1 m O C as N -a • O o E oE O V 0 O 0 41* Administration Costs O CO Professional Services O 69 Planning, Survey, and Design Real Estate Purchases Acquisition Expense 0 69 Operation of Acquired Property 0 49 Relocation Costs E9 Relocation Payments E9 Site Clearance Costs Project Improvement / Construction Costs Disposal Costs 0 m c cJ J O 0 O N 0 O. O ocn 0 a, CC Statement of Income and Expenditures - Expenditures Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures - Expenditures Fiscal Year Los Gatos Project Area Project Area Name 71) 0 f c c y 3 0) U N c � W a) 0 0 m O y CL — c _ c R !" LL 0. (0 C) CA 0 ', C , 0 uoo 9 CO O u7 in tfi Ca Decline in Value of Land Held for Resale Rehabilitation Costs Rehabilitation Grants Interest Expense Fixed Asset Acquisitions Debt Principal Payments: 0 Tax Allocation Bonds and Notes 0 CO LO O co o Efl 3 a -c CO 0 C) y 0 U 8 E c c co a) D iL ->a m c O T J CD co CO O a 0 N 3 O L > t c >. O CO U Q Total Expenditures 64 12/11/2002 N 0) O) CO a Statement of Income and Expenditures - Expenditures Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report N i O a► ca Li: d 0 d d Q X W as a> E O O C o! O E iN L�, Fiscal Year Project Area Name Proceeds of Long -Term Debt O E9 1 1 1 1 Proceeds of Refunding Bonds 0 E9 1 1 1 Payment to Refunded Bond Escrow Agent 0 69 1 1 1 Advances from City/County 0 iA 1 1 1 Sale of Fixed Assets 1 1 1 1 Miscellaneous Financing Sources (Uses) 0 rn 1) 0) Operating Transfers In Tax Increment Transfers In m co Operating Transfers Out Tax Increment Transfers Out (To the Low and Moderate Income Housing Fund) 0) Total Other Financing Sources (Uses) 0 O Statement of Income and Expenditures - Other Financing Sources Redevelopment Agency Of The Town Of Los Gatos O O. o 16 N N C c o V N • •c_ C LL d — 0 l0 � • V N C CD C'"' a C Q) N a O w c� a c a) m a C ▪ ci a> C n NNa R CD L.L. y Los Gatos Project Area 0 H N uO CO EA v CO v LO n N OD 69 CO CO CO 4, Equity, Beginning of Period Prior Period Adjustments Residual Equity Transfers W G V Other(Specify) 1 1 1 16 H Other Total m 0 N co Equity, End of Period 12/11/2002 Statement of Income and Expenditures - Other Financing Sources Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Balance Sheet - Assets and Other Debits N 0 O N Fiscal Year O H Assets and Other Debits 0 N 0 0 1 10 Cash and Imprest Cash M d' O ti Cash with Fiscal Agent Tax Increments Receivable Accounts Receivable Accrued Interest Receivable Loans Receivable Contracts Receivable Lease Payments Receivable 0 e» Uneamed Finance Charge 0 1 1 1 1 Due from Capital Projects Fund 49 Due from Debt Service Fund 0 1 1 1 1 1 1 1 1 1 a) io -a cn • C 7 C o Li.. To lL 2 m 3C o . rn o = n. J o cnp E1 E� o • E o c o No a)> a 0 CC N O 0 N a) 0) 0 Balance Sheet - Assets and Other Debits Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Balance Sheet - Assets and Other Debits N O Fiscal Year is 0 Investments Other Assets 0 1 1 1 1 0 0 0 N O LC) CD O N OD 0 N 69 CO CO co_ • . m C !Eli c ° o co a� E ❑a . :' -o �� > 0 �E O a� 2 C� �Q Q ) -a ;°W C E > f- C co 02 J-0 1] d C) N • O N J p C (0 O d to O C ... f6 J U) +.. tI C 8J co 0) QLL O N o-4) inEy �a Qc E cg caw) is2. lu0 �m c -00 CL 7.— of d �`m m u� p— E 12 C C ccc Q> it w Qv) Qa ZO Balance Sheet - Assets and Other Debits Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Balance Sheet - Liabilities and Other Credits 1 a) L_ cash v c acu_ u) a) m a) Q1 c i N • 0 0 0 = c 2 a) O 0 J V 0 o v c LL 0 0 O 0 d A LT. .a l9 U O N Fiscal Year Liabilities and Other Credits rn CO M O) Accounts Payable Interest Payable O 69 Tax Anticipation Notes Payable O O O 0) co rn Loans Payable 1 1 1 1 0 M 0. co N (V 1 Other Liabilities O 0 1 1 1 1 1 1 Due to Capital Projects Fund Due to Debt Service Fund O a) 12 c in • LL '0 0) O c 2 3 oo O J E a) o p• c 1 1 1 Tax Allocation Bonds Payable O to 1 1 1 1 All Other Long -Term Debt 00 M V! Balance Sheet - Liabilities and Other Credits Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report Balance Sheet - Liabilities and Other Credits Q) L_ Ts LI C CL cn C LL m R TA Ts O-p o 2 c E co O 0 J C N V c C aLL C N U d a.o c TO IL c us U N O O Fiscal Year •a ti O M co- 49 N f0 O) 0 O CV V O 1 O 63 1 1 1 1 1 0) O co sr) co N 69 D • a▪ ) c @ L coo) c c N • C O a) a)� a)to a)• N c r )oT = c co 8 Ua Ua 0 C C-6 C- C CO L N Tn Nco m ma mz w �� E. a) _E Q m m a) m m ) an d 7 CD CD c c,- 1-Ow > x W ELL. u TiD TiD N 0 O N SV N 0) co Balance Sheet - Liabilities and Other Credits Redevelopment Agency Of The Town Of Los Gatos Redevelopment Agencies Financial Transactions Report 0 c l0 E o V f0 E E H ' dI rr C w Q x W co E' O 46 E .r N O O Fiscal Year Operating Transfers In O69. Tax Increment Transfers In LC) 0) N O 69 Operating Transfers Out O 69 Tax Increment Transfers Out E E 0, 0 a) a x W 7- O r7) m a� O N c c N O F— C a E� E u) FILED FOR THE 2002-03 TAX YEAR 1 FINANCE & ADMIN SERVICES DIR. Current Principal/Interest Due During Tax Year 0 OD N 0 EA- 0, c ti 0 ER N 0001 c Ti Total Outstanding Debt $ 190,430,716 1 190,430,716 F- i o o BALANCES CARRIED FORWARD FROM: ,- CV C,) •ztIn a) v U indebtedness into post June 30 of the Fiscal Year, pursuant to Health and Safety Code Section 33675 (C)(2), this is optional for each agency and is not a requirement for filing the Statement of Indebtedness. The Reconciliation Statement STEPHEN D. CONWAY Fiscal Period -Totals (From Form A, Page 1 Totals) T j I(Optional) Post Fiscal Period -Totals (From Form B Totals) ! j Grand Totals 1 Available Revenues (From Calculation of Available Revenues -Line 7) 'Consolidate on this form all of the data contained on Form A and B (including supplemental pages). Form A is to i Ilk Name S' attire Pursuant to Section 33675 (b) of the Health and Safety Code, I hereby certify that the above is a true and accurate Statement of indebtedness for the above named agency. Net Requirement ILOS GATOS REDEVELOPMENT AGENCY is to include indebtedness from Form A only. Certification of Chief Financial Officer CENTRAL PROJECT AREA } J Z 0 (n ❑ Z ❑ W F- m W ❑Q zW W }I- J (0 < 0 N (A tL N } Z ~ 0 ❑ 0 ~ W Z W WCD 2 Z w 0 J 0 w W Cn < 0 0 CC Cl 0 4 Z I- z O0 STATEMENTS OF For Indebtedness Entered Into as of June 30, 2002 (C) ❑ c0 C 0 c _ a) Ca Zr, 0 c Q) 0) t0 E O 1- (0 0 U a_ 0) (0 0 Debt Identification h -Short Term Annual Pass Throu O N N O N (0 O COO CT) N 0 10 N V N 1� N O N N C) 69 O N N 0 N(0 00 CO t I,- V C- O CO .d' CO N O V 10 N 7 N f- N O N (n N E9 (U 0) N a) 0 0) c c c c c c 000000 c c c C c C O N N O N (h c000 �d'r O CO V' Cn N V U5 N .4 (V N- N O N (0 N (0 .- N N N N N N OOOOOO 0 0 0 0 0 0 N N N N N N 0 0 0 0 0 0 N) () () (0(0 (h CO (0 (O CO co (o 00 t0 () 00 't7' N �0 0 (O ct CO V) N tf) 00 N N N Ch (0 (0 00 I- 0 .t 10 CO (O (O t0 co (V 00 N V O N (0 M C C C C C C cc000000 cccc cANNNNN c7 c) (0 (0 (0 00 000000 N N N N N N 0 0 O O O 0 - - d- CC CC CC CC CZ CC }>->-}}} 00 to � (0 03 N (0O 1.0 CO a0 (0 ti (n a0 N N N M co c7 00 N- O d' (0 00 CO O t() c0 N 00 N (0 M c) N N N N N N c0 c0 (h () M C7 0 0 0 0 0 0 N N N N N N 0 0 0 0 0 0 �t d' CC CC CC rY Ct } } } } } } U U to U fn U (+) ❑ 1,2 0 o c6 o- w 00 _ ai a) CD C n O (n O L_ 0 a) L U❑ t- _Q Co'CD •_rn 00 0 .LO co U 0. _ a-• 0 O U (1 = 0 '6 co O C O O W C C7 C O C t W C O) C O C L.L co CI) O 0) (A a) O a) (/)CL O O' 12 E `) O O O @ E u O (n O} 0) 0 co 0) . O N (9 0 rG U L @ Ti U_ co (/) W j, f6 H U_ (0 CO W j, co I- 2 O 0 c 0 0 co- o C 0 0 0 O jy > a) (0 io > ( ) a >, a) (o is > U 0 lL c a (7 C7 0 A c W (3 0 (o F u) cr >c CO CO 0, J J, (n < O 2 J J 7 (!) CI) I- I- g m 0 0 w u C7 S ^ =) Y J L.0 _O.0.O 00000 ❑ EEEEEE I-FO1-HI-H 0) 0) 0) 0) 0 0) 000000 J J J J J J L L L L L L Co 0) CO 0) 0) 07) 000000 L L L L L L iTf- (I) (n (n (O Q) U) 0 0 0 (v 0 0 aaaan.a 7 7 7 7 7 7 000000 aaaaa¢ a) d a) 00 N 0 00000 ❑ EEEEEE 000000 N L L L L L .L C Cn Cfl (n (n (n Cn -0 L L L L L L 0) CO 0) 0) 0) a7) 0) .0 0 0 0 77777 0 0 L 0 1- I- 1- F- I- F O co CO CONCO 0 co cn co 0 (0 a,0aaao_a. cn Q co DCO 03 al CO CO L c C c C C c a¢¢a¢¢Q < EE OCWlt N < O N EC 8, u_a 0) 7 U J Z 0 U) co 0 Z W CO ❑wCC Z uJ w >- I- < U N CO O LL O W Z w W0 CO 1- ❑ Lij ❑ J Z Il 0 0 co 1- W Z w W U) co ow co 0 Oc J 0_. O Z 1-1-1OU For Indebtedness Entered Into as of June 30, 2002 E U 0 0 co ❑ Debt Identification Deferred Pass Throu ( CO (ten CO � � 0) co r- O N O CO CO CO V N N U) 0) 0) C C O O C C 0 0 CO O 0 N N -0 0 CO O CO CO r— CO. LO CO N N N N 0) 0) 0) O) 0) 0) 0) O) O) 0) 00N-r;� aaaa7-- U i i 9 Tii VI CO in" 0 ❑ ❑ ❑ ❑ 00 O O O O c O O O O (-1) (/)U)U)U) _rn io ` 7 .c (O 03 CO CO (o U 0 09 E U) O EO 0 2 Dolt C C C C O E T O) O co 0) a) O1 0) O (0 otl N O) O) a- LL 00) -C H E E E E 2 LL 0) 3 Q c N 0> 0 O) 0) N (0 y c p w 0) t 'O O O W W W W co n w :° o .L U) F 0 U 0) (CO (n u) in N v) O) m c G p d 0 p LL 0 0 0 0 0 ° a c O) O u.. a 'O CO 0 (0 0 0 U a O c00000 ¢ A a) U ♦o (n vi d 2 0 0 CO Cl) 0 m .eaL. cc 0 o 0 0.) m J J J J J o 0 U< W F- 0 N U) I- F- a. ❑❑ v ' CO O 0')) 0 CO CO- (Ii ((') c0 CO CO (D N N (O (4 CO O O CO M N e}' (n 0) (O (D V CON 0 r O) CO CO n O N N M (n CO 0 rt LL) (D 0D (O 0) O) 0) 0) o c c C 0 O O O O O C C C Currecnt Yr O O co co O 0 0 0 0 I-- co N c (n M M O (o 0p O r� 0 (0 (D CO M N O) ('3 O) 0) O O C C 0) 0) 0 O 0) O 0 c7.1 co O co N coN co coN 0 r I� : ti N 'O= it } (M) 2002 COP'S RDA Capital Projects 0 C C 7 LL LL O) 0) C c y 7 00 U 0) (3) �o a) 2. 2 0 d oel 0o 3 3 CO.) J o O m p p C .O Q N .to C O) p) I O O Y <c000 W a LT: 0 2 ^ -) 2 01 O) O < 03 0 0 W LL Page 1 of 2 REMAINING BALANCE A + B - C - D-E 24,080 1 CONY (Q r NI: N O M 124,970 52,242 127,073 2,538,428 LO N M CO 28,682,804 37,671,553 I 4,502,768 (n M V M O CO 105,217,671 I 85,213,045 190,430,716 RECON DATES: From July 1, 2001 to June 30, 2002 AMOUNTS PAID AGAINST INDEBTEDNESS FROM OTHER 111111W ince the reconciliation period is limited by law to a July 1- June 30 fiscal year period, only those items included on the SOI Form A is to be included on this document. To assist O TAX INCREMENT CO CO N 259,665 U N Cr) .- N rn N r N C G) O (p O 00 547,883 1,338,907 I I 1,886,790 in following each item of indebtedness from one SOI to the next, use page and line number references from each SOI that the item of indebtedness is listed on. If indebtedness is new to the fiscal year, enter "new" in the "Prior Yr' one and line columns. Column F must equal the current SOI, Form A Total Outstanding Debt Column. I 1 0r- ADJUST 1 DECREASE (ATTACH EXPLAN.) 466,411 486,868 6,652,918 O (D r O N r 6,333,240 r Q ) O (O m.-r V CO in N N co- (V N- N CO r CO m,.- ADJUST INCREASE (ATTACH EXPLAN.) 24,080 302,442 124,970 N N N. 1n L 127,073 i f 15,187,027 • O NI- CO UJ I.35,992,398 1 51,825,894 NOTE: This form is to reconcile the previous Statement of Indebtedness to the current one being filed. However, s Q OUTSTANDING DEBT ALL BEG. INDEBTEDNESS CO C) r- N 11,017 1 259,665 In N CO N •- 0) N 1f) NI' O) O O Q) CO 3,004,839 1,319,003 N N r In M CO )t) M r 22,484,526 5,223,528 36,676,754 N m (Il 73,444,903 178,037,158 Reconciliation Statement -Changes in Indebtedness TOWN OF LOS GATOS REDEVELOPMENT AGENCY BRIEF DESCRIPTION + ILos Gatos -Saratoga High School District Los Gatos Elementary School District 1 West Valley/Misson CCD Santa Clara County I County Office of Education Mid-Pensula Open Space Los Gatos -Saratoga High School District 'Los Gatos Elementary School District 1 West Valley/Misson CCD Santa Clara County 'CENTRAL PROJECT AREA 1 'TAX YEAR 2002-03 1 (DEBT IDENTIFICATION CURRENT YR 1 Pg 1 Line A Pg 1 Line B Pg 1 Line C Pg 1 Line D Pg 1 Line E IPg 1 Line G Pg 1 Line H 1 IPg 1 Line J Pg 1 Line K Pg 1 Line L ( TOTAL -THIS PAGE TOTALS FORWARD GRAND TOTALS SOI PAGE & LINE 1 PRIOR YR Pg 1 Line A IPg 1 Line B Pg 1 Line C I 1 Line D 1Pg 1 Line E U. N -J r a Pg 1 Line G 1Pg 1 Line H Pg 1 Line l Pg 1 Line J Pg 2 Line A m N C J N a Reconciliation Statement -Changes in Indebtedness 0 Z w 0 Z w a 0 -J w W W CC W (j) Q 0� QU r W o° J a LL 0� Z Ow F- RECON DATES: From July 1, 2001 to June 30, 2002 TAX YEAR 2002-03 + i°aoouU) otonrnCOccoo ZQ h CO 0) O M a0 N W w 07 C� tr tr N:Z 0 ❑' to co 00 CO CO cc) Ch CO N ,- r-ON QZ 20 N M`" W LL m I m U) z2 0 Q w Q W 1 F- wQw 0 a Z I- o o to F— W W O ? N 0000 M Z 00 W N to a) N 0 w c N CO❑< ❑ 0 Z F-Z W00 rn o o U) co co a)N O) w w 0 Z r o o Ct Ocr) co-=)UQa ce OD C Q ❑ Q W w o to co CO`r cn co O W Q O0")(0 N ❑ U n a_ 0 O0) 4 m Q Z Q W o� mor-ooc0ootn U) O r. O coO CM O O 0) Cn N O Z CO W W tf) N O O O C`7 O ti tf) alO) O CD Z N d to O co 0~0 a) N co cc) N CON J N 0) r CV Fco-Qm O F- Cu Q 00❑ DEBT IDENTIFICATION SOI PAGE & LINE CURRENT YR DESCRIPTION O co O O O` O }_ } O O 0 C O N N N 3 O O O N a) a> NON}O 3 ULL } } LL._ O LL a) LL O L O Cn Q) } CO (6 C O O O LL O S a 7 2 7 ro CJ 0 7>>❑m't E 06 ers m a O ° co a)Q 3 3 m a'a'�'CD Nd U.0 ,- a)JJ CD CO C66 lLl (n ° a) C O O U) aC) aa)) aa)) v) Cn O. li > c c O E E E° °i6a0 c-0 0 00 CD CI) ro Ia. id 0_ m m 0 Q '� .� O WWW00f`" a 0 c 0) .0) to u)f Qc 3--0 J JJ J J000 El I-000 oN Qm0❑wLL0I_--)YJ2 a) a) a) a) 0 a) a) a) a) a) a) a) a) C C C C C C C C C C C C C J J J J J J J J J J J J J N N N N N N N N N N N N N 0) a) 0) a) CD O) 0) o) o) 0) 0) a) a) a a a a a a a a a a a a ctU❑ W u_01--)Y JQ } a) Q) a) a) a) a) ro a) a) (1) a) CCCCCCCCC Cc .J J J J J J J J J J N N N N N N N N N N M M 0) 61 0) 0) 6) 0) CO CJ) 0) Q a) a) a a a a a n_ a a a a Z a a Z 0 rn O CO M 0) If) N CN C6) N CO CA 0) N O) 0) t) r) O cc ti v C+) CO CALCULATION OF AVAILABLE REVENUES TOWN OF LOS GATOS REDEVELOPMENT AGENCY CENTRAL PROJECT AREA TAX YEAR 2002-03 RECONCILIATION DATES: July 1, 2001 to June 30 , 2002 1. Beginning Balance, Available Revenues 2. Tax Increment Received -Gross All Tax Increment Revenues , to include any Tax Increment pass through to other local taxing agencies $ 3,335,377 4,079,598 3. All Other Available Revenues Received 1,306,037 4. Revenues from any other source, included in column E of the Reconciliation Statement, but not included in (1-3) above 5. Sum of lines 1 through 4 8,721,012 6. Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 1,886,790 7. Available Revenues, End of Year (5-6) FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE, LINE 4 NOTES 6,834,222 Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts pass through to other local taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set -aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefore omitted from Available Revenues at year end. Item 4 above: This represents any payments form any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous SOI included a Disposition and Development Agreement (DDA) which was fully satisfied with these bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the "other" column (Col E), but with funds that were neither Tax Increment, nor "Available Revenue: as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues". Agency Name: Town of Los Gains RDA Project Area Name: Central Los Gatos Exemption(s) 4. a. If an exemption was claimed on Page 2, Line 3a(4) to deposit less than the required amount, complete the following information: Check only one of the Health and Safety Code Sections below providing a basis for the exemption: ❑ Section 33334.2(a)(1): No need in community to increase/improve supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than 20% set -aside is sufficient to meet the need. N/A ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to 20% set -aside and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C), this exemption expired on June 30,1993 but contracts entered into prior to May 1, 1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and reason(s): b. For any exemption claimed on Page 2, Line 3a(4) and/or Line 4a above, identify: Date that initial (1s') finding was adopted: / / Resolution # Date sent to HCD: / / mo day yr mo day yr Adoption date of reporting year finding: / / Resolution # Date sent to HCD: / / mo day yr mo day yr Deferral(s) 5. a. Specify the authority for deferring any set -aside on Line 3a(5). Check only one Health and Safety Code Section boxes: ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985, if net proceeds were used to refinance pre-1986 listed obligations. N/A Note: The previous allowable deferral under Section 33334.6(e) expired. It was only allowable in each fiscal year prior to July 1,1996 with certain restrictions. ❑ Other: Specify code Section and reason: b. For any deferral claimed on Page 2, Line 3a(5) and/or Line 5a above, identify: Date that initial (1') finding was adopted: / / Resolution # Date sent to HCD: / / mo day yr Adoption date of reporting year finding: / / Resolution # mo day yr mo day yr Date sent to HCD: / / mo day yr c. A deferred set -aside pursuant to Section 33334.6(d) constitutes an indebtedness to the Housing Fund. Summarize the amount(s) of set -aside deferred over the reporting year and cumulatively as of the end of the reporting year: Fiscal Year Amount Deferred Amount of Prior Deferrals Repaid Cumulative Amount Deferred (Net of Any Amount(s) Repaid) This Reporting FY During Reporting FY (1) Last Reporting FY (2) This Reporting FY $ $ $ $ * * The cumulative amount of deferred set -aside should also be shown on HCD-C, Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report (HCD-A and HCD-C), indicate the amount of difference and the reason: Difference: $ Reason(s): California Redevelopment Agencies — Fiscal Year 2001-2002 Sch A (7/1/02) HCD-A Page 3 of 6 Agency Name: Town of Los Gatos RDA Project Area Name: Central Los Gatos Deferral(s) (continued) 5. N/A d. Section 33334.6(g) requires any agency which defers set -asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set -asides, has it adopted such a plan? Yes 0 No ❑ If yes, by what date is the deficit to be eliminated? / / mo day yr If yes, when was the original plan adopted for the claimed deferral? / / mo day yr Identify Resolution # Date Resolution sent to HCD / / mo day yr When was the last amended plan adopted for the claimed deferral? / / mo day yr Identify Resolution # Date Resolution sent to HCD / / mo day yr Actual Project Area Households Displaced and Units and Bedrooms Lost Over Reporting Year: 6. a. Redevelopment Protect Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed, over the reporting year, (refer to Section 33413 for unit and bedroom replacement requirements). N/A mber of Households/Units/Bedrooms Project Activity VL L M AM Total Households Permanently Displaced - Elderly Households Permanently Displaced - Non Elderly Households Permanently Displaced -Total Units Lost (Removed or Destroyed) and Required to be Replaced Bedrooms Lost (Removed or Destroyed) and Required to be Replaced Above Moderate Units Lost That Agency is Not Required to Replace Above Moderate Bedrooms Lost That Agency is Not Required to Replace b. Other Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3) based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a, report by income category the number of elderly and nonelderly households permanently displaced over the reportingyear: N/A ouseholds Other Activity VL L M AM Total Households Permanently Displaced - Elderly Households Permanently Displaced - Non Elderly Households Permanently Displaced - Total c. As required in Section 33413.5, identify, over the reporting year, each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a. and 6b. Date / / Name of Agency Custodian mo day yr Date / / mo day yr Name of Agency Custodian Please attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies — Fiscal Year 2001-2002 Sch A (7/1/02) HCD-A Page 4 of 6 Agency Name: Town of Los Gatos RDA Project Area Name: Central Los Gatos Estimated Proiect Area Households to be Permanently Displaced Over Current Fiscal Year: 7. a. As required in Section 33080.4(a)(2) for a redevelopment project of the agency, estimate, over the current fiscal year, the number of elderly and nonelderly households, by income category, expected to be permanently displaced. (Note: actual displacements will be reported for the next reporting year on Line 6). N/A Number of Households Project Activity VL L M AM Total Households Permanently Displaced - Elderly Households Permanently Displaced - Non Elderly Households Permanently Displaced - Total b. As required in Section 33413.5, for the current fiscal year, identify each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date / / mo day yr Date / / mo day yr Name of Agency Custodian Name of Agency Custodian Please attach a separate sheet of paper listing any additional housing plans adopted. I Units Developed Inside the Project Area to Fulfill Requirements of Other Project Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v), agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units, provided the agency conducts a public hearing and finds, based on substantial evidence, that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial, ethnic, or economic segregation. Nil/ere any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ❑ No. ❑ Yes. Date initial finding was adopted? / / Resolution # Date sent to HCD: / / mo day yr mo day yr Number of Dwelling Units Name of Other Project Area(s) VL Total California Redevelopment Agencies — Fiscal Year 2001-2002 Sch A (7/1/02) HCD-A Page 5 of 6 N/A N/A AgencyName:Name: Town of Los Gatos RDA Project Area Name: Central Los Gatos Sales of Owner -Occupied Units Inside the Project Area Prior to the Expiration of Land Use Controls 9. Section 33413(c)(2)(A) specifies that pursuant to an adopted program, which includes but is not limited to an equity sharing program, agencies may permit the sale of owner -occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3) years from the date the unit was sold, expend funds to make another unit equal in affordability, at the same income level, to the unit sold. a. Sales. Did the agency permit the sale of any owner -occupied units during the reporting year? ❑No Dyes $ Total Proceeds From Sales Over Reporting Year Number of Units SALES INCOME LEVEL VL L M Total Units Sold Over Reporting Year b. Equal Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? ❑No ❑Yes $ Total Proceeds From Sales Over Reporting Year Number of Units SALES INCOME LEVEL VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Project Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting year. Identify the project and/or contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. TS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As, B, OR Ds. Col A Col B Col C Col D Col E VL L M Total Name of Project and/or Contractor Agreement Execution Date Estimated Completion Date (w/in 2 yrs of Col B) Sch C Amount Encumbered [Line 6a] Sch C Amount Designated [Line 7a] $ $ $ $ $ $ Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies — Fiscal Year 2001-2002 Sch A (7/1/02) HCD-A Page 6 of 6 SCHEDULE HCD-C Agency -wide Activity for Fiscal Year Ended 06 / 30 / 02 Agency Name: Town of Los Gatos RDA County: Santa Clara Preparer's Name, Title: Steve Conway, FinanrP Di r Preparer's E-Mail Address: sconwav@town.los—gatos.ca.us Preparer's Telephone No: (408) 354-6828 Preparer's Facsimile No: Low & Moderate Income Housing Funds (408) 399-5786 Report on the "status and use of the agency's Low and Moderate Income Housing Fund." Most information reported here should be based on information reported to the State Controller. 1. Beginning Balance (Use "Net Resources Available" from last year's report to HCD) a. If Beginning Balance requires adiustment(s), identify the reason and amount for each adjustment: Use < $ > for negative amounts or amounts to be subtracted b. Total Adjustment(s) (indicate whether positive or <negative>) c. Adjusted Beginning Balance [Beginning Balance plus + or minus <-> Total Adjustment(s)] 2. Project Area(s) Receipts and Housing Fund Revenues a. All Project Areas. Total Deposits [Sum of amount(s) from Line 3k.,HCD-A(s)] b. Other revenues not reported on Schedule HCD-A(s) [Identify source(s) and amount(s)]: c. Total Housing Fund Revenues $ 3 • Total Resources (Line lc. + Line 2a + Line 2c.) $ 1,418,614 s 1,418,614 $ 879,409 s 2,298,023 NOTES: Many amounts to report as Expenditures and Other Uses (beginning on the next page) should be taken from amounts reported to the State Controller's Office (SCO). Review the SCO's Redevelopment Agencies Financial Transactions Report. Transfers -out to other internal funds: Report the specific use of all transferred funds on applicable lines 4a.-k of Schedule C. For example, transfers from the Housing Fund to the Debt Service Fund for the repayment of debt should be reported on the applicable item comprising HCD-C Line 4c, providing gross tax increment was reported on Sch-As. Any transfers out of the Agency (for example: the transfer of excess surplus funds to a county Housing Authority) should be reported on HCD-C Line 4j(2). Other Uses: Non-GAAP (Generally Accepted Accounting Principles) recording of expenditures such as land purchases for certain agencies using the Land Held for Resale method to record land purchases should be reported on HCD-C Line 4a(I). Money spent on loans from the Housing Fund should be included in HCD-C lmes 4b., 4f., 4g., 4h., and 4i as appropriate. The statutory cite pertaining to Community Redevelopment Law (CRL) is provided forpreparers to review to determine the appropriateness of Low and Moderate Income Housing Fund (LMIHF) expenditures and other uses. HCD does not represent that line items identifying any expenditures and other uses are allowable. CRL is accessible on the Internet [website: http://www.leginfo.ca.govi (California Law)/ beginning with Section 33000 of the Health and Safety Code. California Redevelopment Agencies - Fiscal Year 2001-2002 Sch C (7/1/02) HCD-C Page 1 of 8 Agency Name: Town of Los Gatos RDA 4. Expenditures and Other Uses a. Acquisition of Property & Building Sites [33334.2(e)(1)1 & Housing [33334.2(e)(6)1: (1) Land Assets (Investment — Land Held for Resale) * $ (2) Housing Assets (Fixed Asset) * $ (3) Acquisition Expense $ (4) Operation of Acquired Property $ (5) Relocation Costs $ (6) Relocation Payments $ (7) Site Clearance Costs $ (8) Disposal Costs $ (9) Other [Explain and identify amount(s)]: * Reported to SCO as part of Assets and Other Debts (10) Subtotal Property/Building Sites/Housing Acquisition (Sum of Lines I — 9) $ b. Subsidies from Low and Moderate Income Housing Fund (LMIHF): (1) 1" Time Homebuyer Down Payment Assistance $ (2) Rental Subsidies $ (3) Purchase of Affordability Covenants [33413(b)2(B)] $ (4) Other [Explain and identify amount(s)]: (5) Subtotal Subsidies from LMIHF (Sum of Lines 1 — 4) $ c. Debt Service [33334.2(e)(9)]. Report LMIHF's share of debt service. If paid from Debt Service Fund, ensure "gross" tax increment is reported on HCD-A(s) Line 3a(1). (1) Debt Principal Payments (a) Tax Allocation, Bonds & Notes $ (b) Revenue Bonds & Certificates of Participation $ (c) City/County Advances & Loans $ (d) U. S. State & Other Long —Term Debt $ (2) Interest Expense $ (3) Debt Issuance Costs $ (4) Other [Explain and identify amount(s)]: 0 0 (5) Subtotal Debt Service (Sum of Lines 1 — 4) $ 0 d. Planning and Administration Costs 133334.3(e)(1)J: (1) Administration Costs (2) Professional Services (non project specific) (3) Planning/Survey/Design (non project specific) (4) Indirect Nonprofit Costs [33334.3(e)(1)(B)] (5) Other [Explain and identify amount(s)]: $ 149,103 (6) Subtotal Planning and Administration (Sum of Lines 1 — 5) 149,103 Califomia Redevelopment Agencies - Fiscal Year 2001-2002 Sch C (7/1/02) HCD-C Page 2 of 8 Agency Name: Town of Los Gatos RDA 4. Expenditures and Other Uses (continued) e. On/Off-Site Improvements [33334.2(e)(2)] Complete item 13 $ f. Housing Construction [33334.2(e)(5)] $ g. Housing Rehabilitation [33334.2(e)(7)] $ h. Maintenance of Mobilehome Parks [33334.2(e)(10)] $ i. Preservation of At -Risk Units [33334.2(e)(11)] $ j. Transfers Out of Agency (1) For Transit village Development Plan (33334.19) $ (2) Excess Surplus [33334.12(a)(1)(A)] $ (3) Other (specify code section authorizing transfer and amount) A. Section $ B. Section $ Other Transfers Subtotal $ (4) Subtotal Transfers Out of Agency (Sum of j(1) through j(3)) $ k. Other Expenditures and Uses [Explain and identify amount(s)]: Transfers out to RDA Debt Service $ 67,814 $ 0 Subtotal Other Expenditures and Uses $ 67,814 I. Total Expenditures and Other Uses (Sum of lines 4a.-k.) $ 5. Net Resources Available [End of Reporting Fiscal Year] [Page 1, Line 3, Total Resources minus Total Expenditures and Other Uses on Line 4.1.] S 2 ,075 ,926 222,097 6. Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment of legal contract(s) or agreement(s). See Section 33334.12(g)(2) for definition. Refer to item 10 on Sch-A(s) and item 4 on Sch-B. b. Unencumbered Balance (Line 5 minus Line 6a). Also enter on Page 4, Line 1 la. $ 2 , 075.926 7• Designated/Undesignated Amount of Available Funds A Designated Amount of Line 6b. budgeted/planned to use near -term Refer to item 10 on Sch-A(s) and item 4 on Sch-B b. Undesignated Amount of Line 6b. not yet budgeted/planned to use 8. Other Housing Fund Assets (not included as part of Line 5) a. Indebtedness from Deferrals of Tax Increment (Sec. 33334.6) [refer to Sch-A(s), Line 5c (2)]. $ b. Value of Land Purchased with Housing Funds and Held for Development of Affordable Housing. Complete Sch-C item 14. $ c. Loans Receivable for Housing Activities $ d. Residual Receipt Loans (periodic/fluctuating payments) $ e. ERAF Loans Receivable (all years) (Sec. 33681) $ f. Other Assets [Explain and identify amount(s)]: $ $ g• Total Other Housing Fund Assets (Sum of lines 8a.-f.) $ 0 9. TOTAL FUND EQUITY[Line 5 (Net Resources Available) +8g (Total Other Housing Fund Assets]$ 2 ,075 ,926 Compare Line 9 to the below amount reported to the SCO (Balance Sheet of Redevelopment Agencies Financial Transactions Report. [Explain differences and identify amount(s)]: ENTER LOW -MOD FUND TOTAL EQUITIES (BALANCE SHEET) REPORTED TO SCO California Redevelopment Agencies - Fiscal Year 2001-2002 Sch C (7/1/02) HCD-C Page 3 of 8 Agency Name: Town of Los Gatos RDA Excess Surplus Information Pursuant to Section 33080.7 and Section 33334.12(g)(1), report on Excess Surplus that is required to be determined on the first day of a fiscal year. Excess Surplus exists when the Adjusted Balance exceeds the greater of: (1) $1,000,000 or (2) the aggregate amount of tax increment deposited to the Housing Fund during the four prior fiscal years. Section 33334.12(g)(3)(A) and (B) provide that the Unencumbered Balance can be adjusted for: (1) any remaining revenue generated in the reporting year from unspent debt proceeds and (2) if the land was disposed of during the reporting year to develop affordable housing, the difference between the fair market value of land and the value received. The Unencumbered Balance is calculated by subtracting encumbrances from Net Resources Available. "Encumbrances" are funds reserved and committed pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities [Section 33334.12(g)(2)]. For Excess Surplus calculation purposes, carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the first day of the reporting fiscal year. Determine which is larger: (1) $1 million or (2) the total of tax increment deposited over the prior four years. Subtract the largest amount from the Adjusted Balance and, if positive, report the amount as Excess Surplus. 10. Excess Surplus: Complete Columns 2, 3, 4, & 5 to calculate Excess Surplus for the reporting year. Columns 6 and 7 track prior years' Excess Surplus. Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Prior and Current Reporting Years Total Tax Increment Deposits to Housing Fund Sum of Tax Increment Deposits Over Prior Four FYs Current Reporting Year 1st Day Adjusted Balance Current Reporting Year 1S` Day Excess Surplus Balances Amount Expended/Encumbered Against FY Balance of Excess Surplus as of End of Reporting Year Remaining Excess Surplus for Each Fiscal Year as of End of Reporting Year 4 Rpt Yrs Ago $226,560 $ $ $ 3 Rpt Yrs Ago $319,524 $ $ $ 2 Rpt Yrs Ago $424, 612 $ S $ l Rpt Yr Ago $ 714, 223 S $ S Current Reporting Yearma Sum of Column 2 Last Year's Sch C Co14 minus: larger $ S $ 1,684,919 Adjusted Balance of Col 3 or $ l mm $ 1,418,614 (report positive $) $ 0 11. Reporting Year Ending Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance (End of Year) [Page 3, Line 6b] b. if eligible, adjust the Unencumbered Balance for: (1) Debt Proceeds [33334.12(g)(3)(B)]: Identify unspent debt proceeds and related income remaining at end of reporting year $ (2) Land Conveyance Losses [(33334.12(g)(3)(A))]: Identify reporting year losses from sales/grants/leases of land acquired with low -mod funds, if 49% or more of new or rehabilitated units will be affordable to lower -income households $ 12. Adjusted Balance (for next year's determination of Excess Surplus) [Line 11a minus sum of 11b(1) and 1 lb(2)] $ 2,075.926 5 ,1175_9?6 Note: Do not enter Adjusted Balance in Col 4. It is to be reported as next year's 1st day amount to determine Excess Surplus a. If there is remaining Excess Surplus from what was determined on the first day of the reporting year, describe the agency's plan (as specified in Section 33334.10) for transferring, encumbering, or expending excess surplus: b. If the plan described in 12a. was adopted, enter the plan adoption date: / / mo day yr California Redevelopment Agencies - Fiscal Year 2001-2002 Sch C (7/1/02) HCD-C Page 4 of 8 Agency Name: Town of Los Gatos RDA Miscellaneous Uses of Funds 13. If an amount is reported in 4e., pursuant to Section 33080.4(a)(6), report the total number of very low-, low-, and moderate -income households that directly benefited from expenditures for onsite/offsite improvements which resulted in either new construction, rehabilitation, or the elimination of health and safety hazards. (Note: If Line 4e of this schedule does not show expenditures for improvements, no units should be reported here.) Income Level Households Constructed Households Rehabilitated Households Benefiting from Elimination of Health and Safety Hazard Duration of Deed Restriction Very Low Low Moderate 14. If the agency is holding land for future housing development (refer to Line 8b), summarize the acreage (round to tenths, do not report square footage), zoning, date of purchase, and the anticipated start date for the housing development. Site Name/Location* No. of Acres Zoning Purchase Date Estimated Date Available Comments Please attach a separate sheet of paper listing any additional sites not reported above. 15. Section 33334.13 requires agencies which have used the Housing Fund to assist mortgagors in a homeownership mortgage revenue bond program, or home financing program described in that Section, to provide the following information: a. Has your agency used the authority related to definitions of income or family size adjustment factors provided in Section 33334.13(a)? Yes ❑ No ❑ Not Applicable ,K b. Has the agency complied with requirements in Section 33334.13(b) related to assistance for very low-income households equal to twice that provided for above moderate -income households? Yes ❑ No ❑ Not Applicable i' California Redevelopment Agencies - Fiscal Year 2001-2002 Sch C (7/1/02) HCD-C Page 5 of 8 Agency Name: Town of Los Gatos RDA 16. Did the Agency use non-LMIHF funds as matching funds for the Federal HOME or HOPE program during the reporting period? YES ❑ NOS. If yes, please indicate the amount of non-LMIHF funds that were used for either HOME or HOPE program support. HOME $ HOPE $ 17. Pursuant to Section 33080.4(a)(11), the agency shall maintain adequate records to identify the date and amount of all LMIHF deposits and withdrawals during the reporting period. To satisfy this requirement, the Agency should keep and make available upon request any and all deposit and withdrawal information. DO NOT SUBMIT RECORDS OF DEPOSITS/WITHDRAWALS. Has your agency made any deposits to or withdrawals from the LMIHF? Yes gi No ❑ If yes, identify the document(s) describing the agency's deposits and withdrawals by listing for each document, the following (attach additional pages of similar information as necessary): Pentamation Financial System Transaction Report Name of document: Date of document: 06/ 30/ 02 mo day yr Name of Agency Custodian (person): Steve Conway, Finance Director Custodian's telephone number: (408) 354-6878 Place where record can be accessed: 110 E. Main St.. Lo' Gatos, Ca 95030 Name of document: Date of document: Name of Agency Custodian (person): Custodian's telephone number: Place where record can be accessed: mo day yr 18. Use of Other Redevelopment Funds for Housing Please briefly describe the use of any non-LMIHF redevelopment funds (i.e., contributions from the other 80% of tax increment revenue) to construct, improve, assist, or preserve housing in the community. N/A 19. Suggestions/Resource Needs Please provide suggestions to simplify and improve future agency reporting and identify any training, information, and/or other resources, etc. that would help your agency to more quickly and effectively use its housing or other funds to increase, improve, and preserve affordable housing? None 20. Annual Monitoring Reports of Previously Completed Projects/Programs Were all Annual Monitoring Reports received for all prior years' projects/programs?: Yes,. No ❑ Califomia Redevelopment Agencies - Fiscal Year 2001-2002 Sch C (7/1/02) HCD-C Page 6 of 8 RESOLUTION 2002 - 190 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE 2001-02 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY WHEREAS: 1. The California Community Redevelopment Law (§33080.1) requires every redevelopment agency to present a report on financial and housing activity to its legislative body within six months of the end of the agency's fiscal year. 2. The Annual Report for the Redevelopment Agency consists of an independent financial audit report for the previous fiscal year, a fiscal statement for the previous fiscal year, and a description of the agency's activities affecting housing and displacement. 3. The audit issued by Maze and Associates, attached hereto as Exhibit A, gives an unqualified opinion of the Redevelopment Agency's financial activities includes the auditor's opinion of the agency's operations and financial position, and the agency's compliance with laws, regulations and administrative requirements governing activities of the agency, including all financial activities involving low- and moderate -income housing funds. 4. The Statement of Housing Activity and the Annual Report of Financial Transactions, attached hereto as Exhibits B and C, consist of forms provided by the State Department of Housing and Community Development. 5. Approval of the 2001-02 Annual Report for the Los Gatos Redevelopment Agency does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"). RESOLVED, that the Town Council hereby approves and adopts the 2001-02 Annual Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A, B and C. FURTHER RESOLVED, that the Town Council determines the planning and administrative expenses from the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate- income housing. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on thel6th day of December, 2002 by the following vote: COUNCIL MEMBERS: AYES: Steven Glickman, Diane McNutt, Joe Pirzynski, Mike Wasserman, Mayor Sandy Decker. NAYS: None ABSENT: None ABSTAIN: None SIGNED: /s/ Sandy Decker MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA RESOLUTION 2002 - 28RD RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS APPROVING THE 2001-02 ANNUAL REPORT WHEREAS: 1. The California Community Redevelopment Law (§33080.1) requires every redevelopment agency to present a report on financial and housing activity to its legislative body within six months of the end of the agency's fiscal year. 2. The Annual Report for the Redevelopment Agency consists of an independent financial audit report for the previous fiscal year, a fiscal statement for the previous fiscal year, and a description of the agency's activities affecting housing and displacement. 3. The audit issued by Maze and Associates, attached hereto as Exhibit A, gives an unqualified opinion of the Redevelopment Agency's financial activities includes the auditor's opinion of the agency's operations and financial position, and the agency's compliance with laws, regulations and administrative requirements governing activities of the agency, including all financial activities involving low- and moderate -income housing funds. 4. The Statement of Housing Activity and the Annual Report of Financial Transactions, attached hereto as Exhibits B and C, consist of forms provided by the State Department of Housing and Community Development. 5. Approval of the 2001-02 Annual Report for the Los Gatos Redevelopment Agency does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"). RESOLVED, that the Redevelopment Agency hereby approves and adopts the 2001-02 Annual Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A, B and C. n fl FURTHER RESOLVED, that the Redevelopment Agency determines the planning and administrative expenses from the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate- income housing. PASSED AND ADOPTED at a regular meeting of the Town Council/Redevelopment Agency of the Town of Los Gatos, California, held on thel6th day of December, 2002 by the following vote: REDEVELOPMENT AGENCY MEMBERS: AYES: Steve Glickman, Diane McNutt, Joe Pirzynski, Mike Wasserman, Mayor Sandy Decker. NAYS: None ABSENT: None ABSTAIN: None SIGNED: /s/ Sandy Decker CHAIR OF REDEVELOPMENT AGENCY TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove SECRETARY OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Town Council Minutes December 16, 2002 Redevelopment Agency Los Gatos, California LOS GATOS REDEVELOPMENT AGENCY/ANNUAL REPORT/RESOLUTION 2002-190 (14.27) Speaker, Ray Davis, asked about funding for advertising of the general business community of Los Gatos. He noted that the funds were from the Redevelopment Agency but questioned the appropriate use of public funds in this manner. He also spoke of the funding of the new banner program and its appropriateness given the upcoming budget limitations. Motion by Mr. Pirzynski, seconded by Mrs. McNutt, that Council adopt Resolution 2002-190 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING THE 2001-2002 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY. Carried unanimously. COMMISSIONS, COMMITTEES AND BOARDS/ATTENDANCE REQUIREMENTS (16.12) Motion by Mr. Wasserman, seconded by Mr. Glickman, that the guidelines used regarding absences be uniformly applicable for all Boards, Committees and Commissions. Motion failed with 3 noes and 2 ayes. Council Consensus to continue this item, bringing it forward to the Boards and Commissions for further dialogue and then reporting to the Council/Commission Retreat in April so as to have the full input from the various Boards and Commissions on the considerations at that time. WRAIGHT AVENUE/TRAFFIC CALMING PROPOSAL (17.41) Mayor Decker noted that this was the time and place so noted to consider a proposal for the Wraight Avenue Traffic Calming proposal and to make suitable budget adjustments for the project. Speakers from the audience: Martha Hoffman, Mobile Home resident spoke to the change in the intersection and asked that the residents of the park be heard about their issues concerning the traffic. Joyce Byers, also handed in a letter, and addressed the traffic issue. Melville Bechler, supported the need to address the traffic concerns of the mobile home residents. Kullar Jit Singh Bhuller, noted that the park's residents must be considered before changes are made. David Wilkinson, asked that the park's residents' needs be considered. Patricia Kaufmann/Pittroff, spoke of the need to use the neighborhood roads rather than pushing the park's residents out into Highway 9. Ray Davis spoke of the traffic issues caused by intensification of land use. Jeff Major, working with Barry Swenson Builders, spoke of permanent changes to the traffic circulation pattern in this neighborhood. Bill Krause asked for a show of hands for those residents that would like to keep access to the use of Wraight to be able to go shopping in that direction. The proposed measures cut the mobile home residents from the neighborhood. They would like to be part of the neighborhood, part of the traffic calming methods and part of the voting for these proposals. Mayor Decker closed the public comments. N:\CLK\Council Minutes120021M I2-I6-02.wpd 6 n TOWN OF LOS GATOS CALIFORNIA REDEVELOPMENT AGENCY December 16, 2002 Minutes n REDEVELOPMENT AGENCY The Redevelopment Agency/Town Council of the Town of Los Gatos met in the Council Chambers of the Town hall, 110 East Main Street, at 7:53 p.m., Monday, December 16, 2002, in joint regular session. ROLL CALL Present: Steve Glickman, Diane McNutt, Joe Pirzynski, Mike Wasserman and Mayor/Chairman Sandy Decker. Absent: None. ACCOUNTS PAYABLE/RATIFICATION/NOVEMBER-DECEMBER 2002 (12.V) Motion by Mr. Pirzynski, seconded by Mr. Glickman, that Council/Agency ratify the accompanying check registers for accounts payable invoices paid on November 27, 2002 and December 6, 2002 in the amount of $3,483.86. Carried unanimously. MINUTES OF DECEMBER 2, 2002 (13.V) Agency member Mrs. McNutt noted that her first name is spelled with one "n" as in "Diane." Agency member Pirzynski asked that a correction be made under the Downtown Streetscape on page 4, speaking about the bulb out on Almendra constricting left hand turns, which should read that the bulb out would constrict the flow of through traffic. Motion by Mr. Glickman, seconded by Mr. Pirzynski, that the Agecy approve the Minutes of December 2, 2002, Joint Council/Redevelopment Agency Meeting as corrected. Carried unanimously. REDEVELOPMENT ANNUAL REPORT/RESOLUTION 2002-28RD (14.27) Speaker, Ray Davis, asked about funding for advertising of the general business community of Los Gatos. He noted that the funds were from the Redevelopment Agency but questioned the appropriate use of public funds in this manner. He also spoke of the funding of the new banner program and its appropriateness given the upcoming budget limitations. Motion by Mr. Pirzynski, seconded by Mrs. McNutt, that the Agency adopt Resolution 2002- 28RDentitled, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS APPROVING THE 2001-2002 ANNUAL REPORT. Carried unanimously. ADJOURNMENT Mayor/Chairman Decker adjourned this evening's meeting at 10:58 p.m. ATTEST: Marian V. Cosgrove Secretary to the Redevelopment Agency N:\CLK\Council Minutes12002112A I2- I6-02.wpd