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Item 11 Staff Report Adopt Resolution Approving the 1995-96 Annual Report for the Los Gatos Redevelopment AgencyDATE: TO: FROM: SUBJECT: MEETING DATE: 12/16/96 ITEM NO. COUNCIL AGENDA REPORT December 6, 1996 MAYOR AND TOWN COUNCIL EXECUTIVE DIRECTOR ADOPT RESOLUTION APPROVING THE 1995-96 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY. RECOMMENDATION: Adopt resolution approving the 1995-96 Annual Report for the Los Gatos Redevelopment Agency. DISCUSSION: On December 2, 1996, the Redevelopment Agency adopted Resolution No. 1996-11 RD approving the 1995-96 Annual Report for the Redevelopment Agency. California Redevelopment Law requires every redevelopment agency to present a report to its legislative body within six months of the end of the agency's fiscal year. The legislative body is required to review the report and take any action it deems appropriate. The report must contain all the following: 1. An independent financial audit report for the previous fiscal year. 2. A fiscal statement for the previous fiscal year. 3. A description of the agency's activities affecting housing and displacement. 4. Any other information which the agency believes useful to explain its programs. The 1995-96 audit (Attachment 1, Exhibit A) includes the auditor's opinion of the Agency's operations and fmancial 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. The Annual Report of Housing Activity (Attachment 1, Exhibit B) consists of forms provided by the Department of Housing and Community Development. The completed forms describe the Agency's activities affecting housing and displacement. To date, the Agency has not received sufficient revenue to initiate any housing activity. However, the Agency is currently developing specific programs to increase the supply of affordable housing in the community. Once the Agency adopts these programs, the low- and moderate -income housing funds will be allocated to projects that will expand the supply of affordable housing. CONCLUSION: The audit issued by Maze and Associates gives an unqualified opinion of the Redevelopment Agency's financial activities and the Annual Report of Housing Activity describes the agency's activities affecting housing and displacement. Upon acceptance by the Council, the audit and Annual Report of Housing Activity will be sent to the State Controller and Department of Housing and Community Development. PREPARED BY: LEE E. BOWMAN ( r MICHELE BRAUCHT **NP Redevelopment Deputy Director Finance Director Reviewed by: eneral Counsel Revised: 12/6/96 3:18 pm Reformatted: 10/23/95 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING 1995-96 ANNUAL REPORT December 5, 1996 ENVIRONMENTAL ASSESSMENT: Acceptance of the Redevelopment Agency Annual Report is not a project subject to CEQA. FISCAL IMPACT: None. ATTACHMENT: 1. Resolution accepting the 95-96 Annual Report for the Los Gatos Redevelopment Agency Exhibit A - Redevelopment Agency Audit for Fiscal Year 95-96 Exhibit B - Annual Report of Housing Activity for Fiscal Year 95-96 LEB:BL N:IDEVIRDA\RDA12-16.ANN REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMPONENT UNIT FINANCIAL STATEMENTS FOR 1'HE YEARS ENDED JUKE 30, 1996 AND 1995 EXHIBIT A Independent Auditor's Report 'EDEVELOPVIENT AGENCY OF TI( TOWN OF LOS GATOS Component Unit Financial Statements For The Years Ended June 30, 1996 and 1995 TABLE OF CONTENTS Component Unit Financial Statements: Pase 1 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 Chances in Fund Balance - Budget and Actual 4 Notes to Component Unit Financial Statements 6 Compliance Report of Certified Public Accountants on Management's Assertions 9 Compliance Report of Certified Public Accountants 11 AZE ASSOCIATES ACCOUNTANCY CORPORATION 1670 Riviera Avenue -Suite 100 Walnut Creek, California 94596 (570) 930-0902 • FAX 930-0735 INDEPENDENT AUDITOR'S REPORT 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 year ended June 30, 1996 and 1995 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. 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. As discussed in Note 1, the component unit financial statements present only the Agency and are not intended to present fairly the financial position and results of operations of the Town of Los Gatos in conformity with generally accepted accounting principles. 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, 1996 and 1995 and the results of operations for the year then ended, in conformity with generally accepted accounting principles. 777-2--- V- az-la-c9--r--e-42- August 22, 1996 A Professional Corporation REL _ JELOPMENT AGENCY OF THE TOWN Oi OS GATOS COMBINED STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 WITH COMPARATIVE AMOUNTS FOR THE FISCAL YEAR ENDED JUKE 30, 1995 TOTALS Housing Redevelopment Set Aside 1996 1995 REVENUES Incremental property taxes S477,181 $118,200 $595,381 S450,570 Interest 21.888 9,707 31,595 12,708 Total Revenues 499.069 127.907 626,976 463.278 EXPENDITURES Capital outlay Project costs 140,681 38.715 179,396 179.743 Pass through payments 141,708 141,708 104,747 Debt service - principal (Note 4) 80,000 80,000 Debt service - interest (Notes 3 and 4) 193,419 193.419 20.000 Total Expenditures 555,808 38.715 594.523 304.490 EXCESS OF REVENUES OVER EXPENDITURES (56.7.39) 89.192 32,453 158.788 OTHER FINANCING (USES) Operating transfers (out) (10.387) (10,387) EXCESS (DEFICIENCY) OF REVENUES U'ES OVER EXPENDITURES AND OTHER FINANCING USES Fund balances (deficit) at beginning of year Fund balance (deficit) at end of year (67,126) 89,192 22,066 (18.693) 146.669 127.976 (30.8121 (S85.819) S235.861 3150.042 S127.976 See accompanying notes to financial statements 3 TOTALS Budget Variance Favorable Actual (Unfavorable) S489,108 S595,381 $106,273 6,100 31,595 25,495 495,208 626.976 131,768 286,420 179,396 107,024 118,970 141,708 (22.738) 90,000 80,000 10,000 177.490 193.419 (15.929) 672.880 594,523 78,357 ($177,672) 32.453 $210,125 (13,000) (10,387) 2.613 ($190,672) 22,066 $212,738 127,976 $150.042 5 _.EDEVELOPMENT AGENCY OF THC TOWN OF LOS GATOS Notes To Component Unit Financial Statements 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 - ADVANCES J ROM THE TOWN Agency operations have been partially funded by advances from the Town, which bear interest at 10% and are repayable on demand, provided that sufficient tax increment revenue funds are available. These advances are not expected to be repaid in the current fiscal year. For fiscal year ended June 30, 1996 the Agency paid interest in the amount of S20,000. NOTE 4 =RE] BTTRSElMENT AGREEMENT 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 owned by the Redevelopment Agency. 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 by the Town 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. 7 !4AZE & ASSOCIATES ACCOUNTANCY CORPORATION 1670 Riviera Avenue -Suite 100 Walnut Creek, California 94596 (510) 930-0902 • FAX 930-0135 COMPLIANCE REPORT OF CER111m1F-D PUBLIC ACCOUNTANTS ON MA.NAGEMENT'S ASSERTIONS To the Governing Board of the Redevelopment Agency of the Town of Los Gatos We have examined the Redevelopment Agency of the Town Los Gatos management's assertion, included in its representation letter dated August 22, 1996, that the Agency complied with laws, regulations and administrative requirements of the State of California, based on the criteria set forth in Guidelines For Compliance Audits of California Redevelopment Agencies issued by the State Controller's Office, Division of Local Government Fiscal Affairs, during the fiscal year ended June 30, 1996. As discussed in the representation letter, Agency management is responsible for the Agency's compliance with those requirements. Our responsibility is to express an opinion on the Agency's management's assertion as to the Agency's compliance based on our examination. Our examination was made in accordance with standards established by the American Institute of Certified Public Accountants and included examining on a test basis evidence as to the Agency's compliance with the State's requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination of the Agency's compliance with specific requirements. In our opinion, the assertion of Agency management that the Agency has complied with laws, regulations and administrative requirements of Section 33080.1 of the Health and Safety Code of the State of California during the fiscal year ended June 30, 1996 is correct in all material respects, based on the criteria set forth in the Guidelines for Compliance Audits of California Redevelopment Agencies issued by the State Controller's Office, Division of Local Government Fiscal Affairs. /7,4- v• August 22, 1996 9 A Professional Corporation AZE ASSOCIA TES ACCOUNTANCY CORPORATION 1670 ;?ivies Avenue -Suite 100 Walnut Creek, Cclifcnnic 94596 (510) 930-0902 • FAX 930-0735 COMPLIANCE REPORT OF CERTIFIED PUBLIC ACCOUNTANTS To the Governing Board of the Redevelopment Agency of the Town of Los Gatos 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, 1996, and have issued our opinion thereon dated August 22 1996. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatements. Compliance with laws and regulations applicable to the Agency is the responsibility of management. As part of obtaining reasonable assurance as to whether the financial statements are free of material misstatement, we performed tests of the Agency's compliance with provisions of laws and regulations contained in the Guidelines For Compliance Audits of California Redevelopment Agencies issued by the State Controller's Office, Division of Local Government Fiscal Affairs. The results of our tests indicated that with respect to the items tested the Agency complied in all material respects with the provisions referred to on the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied in all material respects with those provisions. ga7e— August 22, 1996 11 A Professional Corporation Agency Name and Address: Los Gatos Redevelopment Agency 110 E. Main Street Los Gatos, CA 95032 ANNUAL REPORT OF HOUSING ACTIVITY OF COMMUNITY REDEVELOPMENT AGENCIES FOR FISCAL YEAR ENDED 6/30/96 County of Jurisdiction: Santa Clara Count' Pursuant to Health and Safety Code Section 33080.1, redevelopment agencies must report annually on their housing activities and Low & Moderate Income Housing Fund balances, and pursuant to Section 33080.3 file a copy of this report with the Department of Housing and Community Development (HCD). Section 33080.6 requires HCD to compile and publish annually a report of redevelopment agencies' housing activities. Please answer each of the following questions in order to determine which HCD Schedules :.-our agency must prepare to provide a complete report of housing activity and fund balances for the reporting period. 1. How many adopted project areas did the agency have during the reporting period? l If one or more, prepare and submit a separate copy of SCHEDULE HCD-:A ;or each adopted project area. If none, do not submit Schedule HCD-A. 2. Did the agency conduct any housing activity outside of adopted redevelopment project areas? _ Yes. Prepare and submit one copy of SCHEDULE HCD-B for the agency. X No. Do not submit Schedule HCD-B. 3. Did the agency have any adopted project areas, and/or anv funds in the Logy & Moderate Income Housing Fund? X Yes. Prepare and submit one copy of SCHEDULE HCD-C for the agency. No. Do not submit Schedule HCD-C. To the best of my knowledge the representations made in the above stat.t the disclosures contained in the HCD schedule(s) submitted herewith are true and correct. Date Signature of .authorized Agency Representative Executive Director Title (408) 354-6832 Telephone number 95.96 HCD-:a Page 1 of 8 Exhibit 13 Agency Name: Preparer's Name, Title: General Information SCHEDULE HCD-A Project Area Activity for Fiscal Year Ended 6/30/96 Los Gatos Redevelopment Aeencv Project Area Name: Central Los Gatos Redevelopment Area Bud Lortz. Redevelopment Manner Preparer's Telephone No: (408) 354-6867 1. a. Year project area adopted: 1991 Duration of redevelopment plan: 1 1/25/2031 2. b. If project area name has changed, give previous name(s) or number: N/A c. Year(s) project areas merged: N/A Project areas merged: N/A d. Year(s) real property was added or removed: N/A Project areas adopted, or portions added thereto. after 19-5, are subject to affordable housing production requirements (and implementation plans pursuant to Sections 33413(b)(4) and 33- 90). In addition. the agency may, by resolution, elect to make the project area, or portions thereof adopted before 1976, subject to Se:::ion 33413. Check here if this area , or any portion thereof N/A. is subject to the affordable housing production and planning requirements. Tax Increment Set -asides 3. Report all actual revenues from this project area added to the agency's Housing Fund this fiscal year. Any income related to agency - assisted housing located outside the project area(s) should be reported as "Other Revenues" (item 3d, below) if this project area is named as beneficiary in the authorizing resolution. Show the full 20"%, of gross tax increment setaside, prior to any pass through, less exemptions or deferrals only. Reductions for debt service should be reported as an expenditure on Schedule HCD-C. a. Tax Increment: 20% of Gross: $ 118,200 Amount Exempted: ($ N/A ) Amount Deferred: ($ N/A ) Tax Increment Deposit to Housing Fund: $ 118.200 b. Debt or Bond Proceeds (including principal & interest): ($ N/A ) c. Grants: ($ N/A ) d. Other Revenues (e.g., rental income, loan repayments, property sales, deferral repayments etc.); specify amount for each revenue type: ($ N/A ) e. Interest: $ 9.707 f. Total Housing Fund Deposits for this Project Area (add 3. a-e, above): $ 127,907 If less than :0% is being set -aside in this project area in accordance tilt': .Section 333. a. 3(i), indicate the actual gross percent here (N/A %), enter the amount in 3a. above, and identifi• the contributing, project area(,) 95,96 HCD-A Page 2 of 3 Agency Name: Los Gatos Redevelopment Agency r Project Area Name: Central Los Gatos Redevelopment Area 4. a. If you are claiming an exemption from making the full 20% set -aside, indicate the reason(s). Check the appropriate Health a Safety Code Section designation(s): N/A Section 33334.2(a)(1): No need in community to increase/improve supply of low/moderate-income housing. N/A 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 contractu obligations incurred before May 1, 1991 requiring continued use of this funding. N/A Other: Specify code section, reasons: b. When were the necessary findings adopted? (Show month/day/year.) N/ 5. a. If you are deferring the setaside, indicate the reason(s). Check the appropriate Health and Safety Code Section designation. N/A Section 33334.6(d): Project was adopted before ! 97 7 and tax increments are needed to meet existing debts. N/A Section 33334.6(e): Project was adopted before 19 and tax increments are needed for timely completion of projects to whic. agency was committed before 1986.) N/A Other: Specify code section. reasons: b. When were the necessary findings adopted? (Show montivday/year.) N/A c. A deferred set -aside pursuant to Section 33334.5!,d) or (e) constitutes an indebtedness to the Housing Fund equal to the amount of the set -aside being deferred. Sumnuar:ze the amount(s) of set -aside deferred during this fiscal year and cumulatively: Fiscal Year Amount Deferred During FY Amount of Prior FY Deferrals Repaid During, FY Cumulative Amount Deferred (Less Any Amount Repaid) 94/95 S S S - 0 - 95/96 S -0- S -0- S - 0 - * * The cumulative amount of deferred setaside should also be shown on Line 7b of Schedule HCD-C. If the FY 94/95 cumulative deferral shown here differs from what was reported on the last HCD report, indicate the amount of and the reason for the difference: N/A d. Section 33334.6(g) requires any agency which deters set -asides to adopt a plan to eliminate the deficit in subsequent year;. If this agency has defen:ed set -asides, has it adopted such a plan? N/A Yes No e. If yes, by what date is the deficit to be eliminate+'' NIA Pursuant to Section 33334.2 (b) or 33334.6 (t)('_), attach copies darn. findings adopted in accordance tvith items 4 and 3 above for this repotting period if you have not previously submitted them to the Department. N/A 95.96 HCD-A Page 3 of n Agency Name: Los Gatos Redevelopment AQencv Housing Units Lost and Households Displaced Project Area Name: Central Los Gatos Redevelopment Area 6. Pursuant to Sections 33080.4(a)(1) and (a)(3), report the number of dwelling units and bedrooms destroyed or removed from this proje area as a result of redevelopment activities; the number of those units or bedrooms the agency is not required to replace; and the incorr category and type of households displaced from the project area during the fiscal year. Household Income and Type Households Displaced Total No. Lost (Removed or Destroyed) Units / Bedrooms Number Lost Not Required to be Replaced Units / Bedrooms * Total Very Low Subtotal Elderly Subtotal Other - 0 - / / Total Low Subtotal Elderly Subtotal Other - 0 - / / Total Moderate Subtotal Elderly Subtotal Other - 0 - / / Total Above Moderate Subtotal Elderly Subtotal Other - 0 - / * Destroyed units which were vacant but reasonably would be expected to be :occupied by low or moderate income households should be replaced. As required in Section 33080.4(a)(2), estimate the type and number of households, by income category, to be displaced from this project area during the next reporting period (the current fiscal year): Income Level Total Households Subtotal Elderly Subtotal Other Very Low -0- - 0 - -0- Low -0- -0- -0- Moderate - 0 - - 0 - - 0 - Above Moderate - 0 - - 0 - - 0 - 8. Sections 33413(d) and 33413.5 specify that project areas adopted after 1975 or amended to add areas after 1975 are required to adopt replacement housing plans at least 30 days prior to entering certain agreements affecting properties from which low- and moderate -income dwelling units will be removed. Other project areas may adopt such plans. If the agency has adopted a replacement housing plan for this project area, report the date it was adopted: N/A 95 96 HCD-.A Page 4 of 8 Agency Name: Los Gatos Redevelopment Agencv Current Housing Activity Project Area Name: Central Los Gatos Redevelopment Area 9. Pursuant to Sections 33080.4(a)(4), report all newly constructed and substantially rehabilitated units developed or assisted by the aaenc during the reporting period in the project area, which have occupancy and use restrictions pursuant to Section 334I3(c). Also report an multifamily units for which the agency purchased or otherwise acquired long-term affordability covenants pursuant to Sectio: 33413(b)(2)(B). Report only those units for which the acquisition or work was completed during the reporting period. Do not repot the same units in more than one column. Information on assisted units located outside the project area, but that benefit the project area should be reported in Schedule HCD-B. Household Income and Type Built with Agency Assistance Substantially Rehabbed w/ Aaencv Assistance Affordability Covenants Acquired by Agency Total Very Low Subtotal Elderly Subtotal Other - 0 - - 0 - - 0 - Total Low Subtotal Elderly Subtotal Other - 0 - - 0 - _ 0 - Total Moderate Subtotal Elderly Subtotal Other - 0 - - 0 _ 10. Indicate how many of the units listed in item 9 are replacements for units previously removed through redevelopment activities, as required in Section 33080.4(a)(4): Household Income and Type Built with Agency Assistance Substantially Rehabbed w/ .Agency Assistance * Total Very Low Subtotal Elderly Subtotal Other - 0 - - 0 - Total Low Subtotal Elderly Subtotal Other - 0 - - 0 - Total Moderate Subtotal Elderly Subtotal Other - it - - 0 - * Only rehabilitated touts that were previously uninhahitable ntav be used to satisfy the replacement hou.sin- requirements of .Section 33413(a). 95,96 HCD-A Page 5 of 3 n Agency Name: Los Gatos Redevelopment Agency Project Area Name: Central Los Gatos Redevelopment Area 11. Pursuant to Sections 33080.4(a)(5), report all newly constructed and substantially rehabilitated units developed in the project area durin the reporting period by persons other than the agency which have occupancy and use restrictions pursuant to Section 33413(c). Repo only those units for which the work was completed during the reporting period. Do not report the same units in more than one column Household Income and Type Units Constructed Units Substantially Rehabilitated Total Very Low Subtotal EIderly Subtotal Other - 0 - - 0 - Total Low Subtotal Elderly Subtotal Other - rl - - 0 - Total Moderate Subtotal Elderly Subtotal Other - 0 - - n - 12. Pursuant to Section 33080.4(a)(4), report all newly construe:e,: and substantially , eh ibilitated units developed or assisted by the a,,ency in the project area during the reporting period, which have occupancy and use : estrictions pursuant to Section 33334 3(f) and thus are not reported in item 9, above. Do not report the same units in more than one wiumn. Household Income and Type Built with Agency Assistance Substantially Rehabbed \y, Agency Assistance Total Very Low Subtotal Elderly Subtotal Other - 0 - - 0 - Total Low Subtotal Elderly Subtotal Other - 0 - - 0 - Total Moderate Subtotal Elderly Subtotal Other - it - - 0 - 13. Pursuant to Section 33080.4(a)(4), report by income level all other units or households assisted in the project area during the reporting period, which have occupancy or use restrictions. Do not report the same units or households in more than one column. Do not report any of the same units reported in items 19-12, above. Household Income Mobilehomes Maintained Units Rehabbed (not substantial) Households Receiving Rental Assistance or Subsidies • Households Received Home- ownership Assistance Other Households Assisted (Specify ) Very Low - 0 - - 0 - - 0 - - 0 - - 0 - Lown -0- -0- -0- - 0 - - 0 - Moderate - 0 - - 0 - - 0 - - tl - - 0 - Above Moderate - 0 - _ - 0 - - 0 - - 0 - - 0 - 95 96 HCD-:a Pag, 6of8 Agency Name: Los Gatos Redevelopment Asencv Project Area Name: Central Los Gatos Redevelopment Area 14. Pursuant to Section 33080.4(a)(10), report the number of units to he constructed in the project area (with agency assistance), within tt next two years, pursuant to an executed contract or agreement. Also include the estimated completion dates of the units. Do not repo any units shown in items 9 or 12, above. N/A Name of Contract or Agreement Execution Date Est. Date of Completion Total Numbers of Units to be Built Ver.- Low Low Mod Other I 15. Pursuant to Sections 33080.4(a)(7) and 33418, provide an inventory of all housing projects or units in the project area which have occupancy or affordability restrictions imposed by agreements or recorded conditions, covenants_ or restrictions. Use the fo.rm on page 7 to report any additions or corrections to the previous re is inventory. 95:96 N;A HCD.A Page 7 of 8 > c.5 Z / / - / / 2 ( SCHEDULE HCD-C Agency -wide Activity for Fiscal Year Ended 6/30/96 Agency Name: Los Gatos Redevelopment Agency Preparer's Name, Title: Bud Lortz. Redevelopment Manaeer Preparer's Telephone No: (408) 354-6867 Low & Moderate Income Housing Funds Report on the "status and use of the agency's Low and Moderate Income Housing Fund," including information developed to comply with Sections 33080.4(a)(6) and (a)(8). Information reported here should be based on that reported to the State Controller. Beginning Balance: S 146.669 If Beginning Balance is not the same as the sum of lines 4a & 5 from Schedule HCD-C on last year's report, indicate the amount of, at reason(s) for, the difference: 2. Revenues: a. Total Receipts From Project Areas: (Sum of amount(s) from line 3f on Schedule HCD-A(s)): $ 127 907 b. Other revenues not reported on Schedule HCD-A(s) (Specify: ): S - 0 - 3. Subtotal of Expenditures and Uses (combine a-n. below): a. Acquisition of property/building sites (33334.2(e )(! ): S - 0 - b. On/off-site improvements (33334.2(e)(2)): $ - 0 - c. Housing construction (33334.2(e)(5)): $ - 0 - d. Housing acquisition (33334.2(e)(6)): $ - 0 -.. e. Housing rehabilitation (33334.2(e)(7)): $ - 0 - f Housing subsidies (33334.2(e)(8)): $ - 0 - g. Debt service (33334.2(e)(9)): S - 0 - h. Maintenance of mobilehome parks (3334.2(e)(10)): S - 0 - i. Preservation of at -risk units (33334.2(e)(1 1): $ - 0 - j. Planning (33334.2(e)(9)): S - 0 - k. Direct agency salary costs (33334.3(e)(I)(A)): $ - 0.1. Indirect nonprofit costs (33334.3(e)(1)(B)): $ - 0 - m. Transfer to Housing Authority (33334.12(a)(1)(A)): 5 - 0 - n. Other (Specify ): 5 - 0 - Transfers Out: The specific use of transferred funds should be reported in item a-n, above. (S 38.715 4. Total Available Balance (1+2a+2b-3): $ 2 35.86 1 5. Total Encumbrances: " (Amount of line 4 encumbered per xvritten agreement or contract). ($ - 0 - 6. Unencumbered Balance (4-5): $ 235 861 HCD-C 95/96 Pagel of Agency Name: Los Gatos Redopment Agency r Project Area Name: C ' Aal Los Gatos Redevelopment Area 7. Other Housing Fund Assets (not included on Line 4, above): a. Value of land purchased with housing funds and held for development of affordable housing: b. Indebtedness for setasides deferred (Sec. 33334.6): c. Loans receivable for housing activities: d. ERAF loans (all years) receivable (Sec. 3368 I ): e. Other assets (Specify ): 8. Total Housing Fund Balance (4+7a through 7e): Excess Surplus $ -0- - 0 - $ -0 - $ -0- S -0- $_ 5,S61 Pursuant to Section 33080.7, report any excess surplus funds (as detined in Section 33334.12). An excess surplus exists for a fiscal year i the unencumbered balance in the Housing Fund at year end exceeds the greater of $ 1,000,000 or the aggregate amount of :ax increment deposited into the Fund during the preceding four fiscal ;ears. "Encumbering" means committing funds pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities. In accordance with Section 33334.12(g)(3)(A) an( (B), the unencumbered balance may be adjusted to account for revenue added from bond proceeds or the difference between :he sales pric; of land for affordable housing and its fair market value. 9.a. Fill in the following table to calculate and track your agency's excess surplus amounts for each fiscal year beginning with 93.94. NiA S1.000.000 Fiscal Year Total Tax Increments Deposited in Housing Fund Sum of Tax Increments in Housing Fund from Previous Four FYs Total Unencumbered Balance in Housing Fund at End of FY' Excess Surplus .mount Expended and Encumbered against Excess Surplus, for each FY. as of6;30/96 Remaining Excess Surplus. for each FY. as of 6/30.96 -9294 $ - 0 - $ -0- 93-94 $ -0- $ -0- $ - 0 - 5 -0- 94-95 $ -0- $ -0- $ -0- $ - 0 - 95-96 S -0- $ -0- $ -0- $ - 0 - $ - 0 - t S _0- * Unencumbered balance for FY 95-96 should equal item 6 on previous page unless adjustments are made per 9.b., below. b. Are you eligible to adjust the total unencumbered balance? [ryes, identit\• the type and amount of the adjustment below: 1. Unencumbered balance from line 6 on previous page: $ N/A 2. Adjustments: Bond Proceeds (33334.12(g)(3)(B): ($ - 0 - Land Sales (33334.12(g)(3)(A): ($ - 0 - ) 3. Adjusted Balance: $ -0- c. It' you reported an excess surplus for the current fiscal year. brief v summarize the agency's plan (authorized in Section 33334.10) for encumbering or expending that amount: N/A 95,96 HCD-C Page 2 of Agency Name: Los Gatos Rede,. L Anent Azencv d. If plan described in 9.c. was adopted, give adoption date: Misc. Uses of Funds Project Area Name: Cent _os Gatos Redevelopment .Area N/A 10. Pursuant to Section 33080.4(a)(6), report the total number of very low-, low-, and moderate -income households directly- benetitted expenditures for onsiteof site improvements, which resulted in new construction. rehabilitation, or the elimination of health and safety hazarc aline 3b of this schedule does not show expenditures for improvements, no units should be reported here.) Income Level Construction Rehabilitation Health and Safety Duration of Deed Restriction Very Low - 0 - - 0 - - 0 - -0- Low -0- -0- -0- -0- Moderate - 0 - - 0 - - 0 - -0- 11. If the agency is holding land for future housing development (see line Via, above). summarize here the sites held, including acreage. date purchase, zoning, and anticipated start date for the housing development. N/A Site Name/Location* No. of Acres Zoning Purchase Date Est. Date Available Comments -0- -0- -0- Please attach a separate sheet of paper listing any additional sites not reported above. 12. 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 intbrmation: 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 X 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 S{ 13. Section 50836(b) allows redevelopment funds to be used as matching funds for federal HOME or HOPE program support. Did the agency use any redevelopment funds for this purpose during the reporting period" Yes No _ Not Applicable X If yes, please indicate the amount of housing funds, and/or non -housing funds. that were used tar either HOME or HOPE program support. Housing Funds used: Non -housing funds used: HOME $ HOPE S HOME $ HOPE $ 95,96 HCD-C Page 3 of 5 Agency Name: Los Gatos Rede( pment Agency Project Area Name: Ce( Los Gatos Redevelopment area 14. a. Did the agency borrow from the Housing Fund to make its FY 94/95 transfer to the Educational Revenue Assessment Fund? (If l, this amount should also be included on line 7.d, above.) b. If yes, specify, the amount borrowed for FY 94/95: Yes _ No _ Not Applicable S 15. Per Section 33080.4(a)(1 1) attach to this schedule a summary showing the date and amount of all deposits to and withdrawals from t agency's Housing Fund during the reporting period. See attached Audit, General Ledger Transaction Analysis Account 10400 Year 1996 Fund 440 Pro?rams 16. Identify your agency's currently active housing programs by check:ng the _ine, where applicable. and write in other programs :a the spac: provided, as needed. Program Type Acquisition: Land Housing Other Bldg. Rehab., Owner: Substantial Major Minor Rehab., Rental: Substantial Major Minor New Construction: Owner Self -Help Owner Rental Apts. 2nd Units SRO's Mobilehome Park Conversions: Ownership Assistance: Downpayments MCC's 2nd Mortgage Renter Assistance: Emergency Household Project Preservation of At -Risk Units: On/Otf Site Improvements: Other: N/A 95,96 HCD-C Pap 4 of 5 Agency Name: Los Gatos Redd ,pment Agency Achievements Project Ai -ea Name: C1ii Los Gatos Redevelopment Area 17. On a separate sheet of paper, please briefly describe one outstanding or innovative project, practice, or program the agency participatec during this reporting period to increase, improve or preserve the community's affordable housing supply. Please provide the follow information along with the program or project description: N/A a. Name of Project or Program: b. Description: No. and type of units provided: Resident incomes: Services provided: Agency funding provided: Financing arrangements: c. Agency's Role: Nature and extent of the Agency's role: Financial participation in the project or program: d. Brief History: Housing need or problem addressed: Successful aspects: Unusual features: Problems encountered: Lessons learned: e. Contact Person and Telephone Number: The following year, several agencies will be selected to receive a Governor's "Redevelopment Housing Achievement" Award. This new awan will highlight the important role of redevelopment agencies in addressing_ California's housing problems. Agencies will be selected based upot the description of an exemplary project or program and in consideration of the leadership role of the agency, the creativity or innovative nature of the project or program, and the overall merit of the project or program in addressing an identified housing problem or need. Use of Other Redevelopment Funds for Housing I S. Please briefly describe the use of any non -housing redevelopment funds (i.e., contributions from the other SO% of tax increment revenue) to construct, improve, assist, or preserve housing in the community. N/A Resource Needs 19. What additional training, information, authority, or other resources would help your agency more quickly and effectively use its Housing Funds to increase, improve, and preserve affordable housing? None at this time. 95,96 HCD-C Page 5 of 5 W a. 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C C C C CC C C C C M C C C C C a a. a a. 0-n.0-aaa 0_0_aaaCt.0-da.ILadCL0-aaEL0-aaaaa 0-0-a0_a0-CL0_ao.a0-a0- N d c0 m m co n-- m 0 Q' r` Ifi N 00 a n o n U1 n O U1 U1 o d o N 01 r•1 N 1!1 Q O M CU - N d W IA r- U1 c o r d r- Ul d Ul Ul CO d Ul 0 d N 1.11 CO Ul r- M nJ o P 0 N N Q o CO nJ O N f~ op Ul o N n r- m .0 U7 o d F- - or n n 01 Ul n T '-0 0 N? d N d 0?- CQ .0 M 0 'N d m LA M- m UI .- - 0 4 n n N ? nJ U1 c0 O d r- d �1' 0 00 n N 'J - r- 0) 111 N N M NI-d-c+- -N-oLA -N 7 r-njn n nr•l IA - M N N ANALYSIS U1 Z O 0 < 1- 0 U n UI O Z J < C C LL - m 0 C Z W • Lr 0 0 I- W J GENERAL and transact.fund="440" DESCRIPTION 1- 0 W 0 d > U I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I I I I 1 1 1 .0 S c' L U < r Z U 1,1 \ O 2 1 - U W - 10 U) LL C W ut < w w 1- r` m L ▪ w 11 o \ •- 0) U < IA \ W N0101 01010.1N01010101 N 0101 N 01010101 OJ 01017 N NN N Net/ N N CU N N N 01 N nJ nJ N N NNNC•J N 01 N N CU I•- C N N N N N nJ N N N CU N N nJ N N 01 N N N N N N N N N N N N N N N N N N N nJ NNN N N N N N N N N N N N C H i d J• d d VO d d d d d d d d d .0 d d .0 J• .0 d d d d d d d d .0 �.1' d d d d d .0 d .0 .J d .0 U .0 O • C OG, m m m mmm mmm m m 0, m cam m m m mmmm m 0+ m m 0, m m m G.m G+ m m m m m m re, G'.mmG.m G. 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O. 01 G• P Os G, 7 O N 01 N N 01 N N N N N N N n n n n n n M n n n n n n n n n n n n n n n n n n n n M n n 01 n n n n n n J 0 0 o Z U 7 < 7 U o I- LL < - 0 1 w a ANALYSIS GENERAL 0 _o w 0 W w 4 [Y 1 0 a N U 4, v C :l DESCRIPTION - M M m ^ w M I1 0 OD CO 0 0 VENDOR/PAYER REFERENCE CA o Z z 7 b -. O P 0 1- I- \ Z 1- I Z 0 0 U 7 - 0 W 0 0 \ U J Z U - U W 0 U - Q U7 tL Q HOUSING SET -ASIDE J O H TOTAL REPORT ti z z 0 0 U U 0 0 IL Ul tY W u) w U 0 W CC J W z z W 0 w a O 0 c1 C 41 0 0 fr.10004 6 4 1 AGENDA ITEM: INTERNAL TRACKING DEPTMENT: ,(! 7/ i)( )A4_ /7/ RESO/ORD NUMBER: L1A� / l C' ` / 6� LIST IN BOOK ON DISC OR SHARE. FORM SENT TO DEPT. --3-kl-j-a PUBLISH IF REQUIRED - Date of Publication ORDINANCES ONLY WHEN SIGNATURE AND /s/ COPY (1 EACH) returned, LIST ON SIGNATURE TRACKING & SEND TO MAYOR / �� /) % I - MAIL TO DISTRIBUTION LIST NO.of COPIES: PROOF OF MAILING PREPARED SIGN BY CLERK/SEAL t ENTER INTO ECM ORDINANCE/RESOLUTION FILE FILE IN VAULT CODIFICATION IF ORDINANCE cik:d16:\other\ordres2 OFFICE OF THE TOWN CLERK ORDINANCES & RESOLUTIONS ORIGINATING DEFT: COUNCIL AGENDA DATE: COUNCIL AGENDA ITEM: SUBJECT: 6LtidUn-yz- Number: Date of Adopt: RESOLUTION I tJ - 'moo COUNCIL ACTION: AYES: NAYS: ABSENT: ABSTAIN: (crelte,a COUNCIL MEMBERS NAMES: Joanne Benjamin, Steven Blanto:i, Linda Lu Mayor( or Chairman) RANDY ATTAWAY Number. Date of Intro: Date of Adopt: ZONE CHANGE: ORDINANCE ORDINANCES and RESOLUTIONS MUST BE RETURNED TO TOWN CLERK BY WEDNESDAY AT 12 NOON. ORDINANCES MUST BE READY FOR IMMEDIATE PUBLICATION F\ RESOLUTION 1996 - 160 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ACCEPTING THE 1995-96 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. Approval of the 1995-96 Annual Report does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"). 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. RESOLVED, that the Town Council hereby approves and adopts the 1995-96 Annual Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibit B. 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 the 16th day of December, 1996 by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Steven Blanton, Jan Hutchins NAYS: None ABSENT: Mayor Joanne Benjamin ABSTAIN: None SIGNED: /s/ Linda Lubeck VICE -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 December 16, 1996 Los Gatos, California INTERIM TOWN ATTORNEY/NATALIE WEST/RESOLUTION 1996-158 (09.10) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1996-158 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPOINTING NATALIE WEST AS INTERIM TOWN ATTORNEY AND AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH NATALIE WEST FOR SERVICES AS INTERIM TOWN ATTORNEY, Carried by a vote of 4 ayes. Mrs. Benjamin absent. TOWN ATTORNEY/COMMENDATION/LARRY ANDERSON/RESOLUTION 1996-159 (10.10) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1996-159 entitled, RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING LARRY E, ANDERSON FOR TOWN ATTORNEY SERVICES. Carried by a vote of 4 ayes. Mrs. Benjamin absent. REDEVELOPMENT AGENCY/ANNUAL REPORT 95.96/RESOLUTION 1996-160 (11.49) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1996-160 entitled, RESOLUTION OF THE TOWN OF LOS GATOS ACCEPTING THE 1995-96 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY, Carried by a vote of 4 ayes. Mrs. Benjamin absent. UNIVERSITY AVENUE 50/OLD TOWN SHOPPING COMPLEX/ORDINANCE 2025 ZONE CHANGE APPLICATION FROM C-2-LHP TO C-2:PD-LHP (12.09) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Ordinance 2025 entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE ZONING ORDINANCE EFFECTING A ZONE CHANGE FROM C-2 LHP TO C-2 PD LHP AT 50 UNIVERSITY AVENUE. Carried by a vote of 4 ayes. Mrs. Benjamin absent. HEARINGS WEED ABATEMENT/OVERRULING OBJECTIONS/RESOLUTION 1996-161 (13.25) Vice Mayor Lubeck stated that this was the time and place duly noted for public hearing to consider adopting resolution overruling objections and ordering abatement of weeds. The following people from the audience spoke to this issue: Carl Schneider, Assistant County Fire Marshal, addressed the increase in fees and explained how the weed abatement service operates. C. Crowell, 204 Carlester Drive, asked why he has been on the list for 10 years and has not been able to get his name removed. Mary Keith Osborn, 17051 Wilde Way, has a half acre of natural California grasses and does not want to have this rare stand of grass disked by accident. Bill Mason, 56 Oak Grove Ave, spoke of a well cared for lot, and asked why this lot appeared on the list. Sydney Pollard, 698 Bicknell Road, asked why one side of the road and not the other had received letters concerning the weed abatement. Lee McLaughlin, 15626 Francis Oaks Way, questioned the cost of this program. TC:D8:MM121696 3