11 Staff Report - 2004/05 Report Redevelopment AgencyI ,
DATE:
TO:
FROM:
:MEETING DATE:12/05/05
ITEM NO.
COUNCIL/AGENCY AGENDA REPORT
NOVEMBER 28,2005
MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE
REDEVELOPMENT AGENCY ~~~
DEBRA J.FIGONE ~~r-·
TOWN MANAGERlEXECUTNE DIRECTOR
SUBJECT:CONSIDER ADOPTING RESOLUTION APPROVING THE 2004/05 ANNUAL
REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY.
RECOMMENDATION:
Adopt resolution approving the 2004/05 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 ofthe end ofthe 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 ofthe 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 2004/05 audit was completed by C.G.Uhlenberg,LLP (Attachment 1,Exhibit A).It includes
the auditor's opinion ofthe Agency's operations and fmancial 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 Financial Transactions (Exhibits B and C)consist of forms provided by
PREPARED BY:
'B\..~~{(},dj
Bud N.Loit1v~
Deputy Executive Director
Reviewed by:QS')Assistant Town Manager __Town Attorney __Clerk~------,Finance
__Community Development Revised:11/28/05 11:01 am
Reformatted:5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT:ADOPT RESOLUTION APPROVING 2004/05 ANNUAL REPORT
NOVEMBER 28,2005
During FY 2004/05,the Redevelopment Agency investigated the possibility of developing low-
moderate housing projects in the Town of Los Gatos.
A number of major accomplishments were made by the Los Gatos Redevelopment Agency during
the 2004/05 fiscal year to eliminate blight.The Downtown Street Reconstruction project continued
with sidewalk,streetscape and storm drain improvements being made to Santa Cruz Avenue.Five
alleys (Johnson Avenue and Lorna Alta area)located in the Redevelopment Project Area were
completely reconstructed.The Town's Economic Vitality Plan is in its third year ofimplementation.
The program involves business retention,development and attraction activities and also continues
to work closely with the Chamber of Commerce.
The State continues to look to redevelopment agencies statewide to help balance the State budget.
For fiscal year 2004/05,the Los Gatos Redevelopment Agency's portion of ERAF amounted to
$303,158.49 from its general (non-housing set-aside)account.For fiscal year 2005/06,the ERAF
shift will be $347,439.94 based on State budget information.Given the State's budget problems,
we may expect continued ERAF payments in the future.
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.
ENVIRONMENTAL ASSESSMENT:
Approval of the Redevelopment Agency Annual Report is not a project subject to CEQA.
FISCAL IMPACT:None
ATTACHMENTS:
1.Resolution approving the 2004/05 Annual Report for the Los Gatos Redevelopment
Agency
Exhibit A -Redevelopment Audit for Fiscal Year 2004/05
Exhibit B -Statement of Housing Activity for Fiscal Year 2004/05
Exhibit C -Annual Report of Financial Transactions for Fiscal Year 2004/05
BNL:ld
N:\FINANCE\RDA\Council Reports\2004-05 RDA Annual Report.wpd
RESOLUTION 2005 -
RESOLUTION OF THE TOWN COUNCIL/REDEVELOPMENT AGENCY OF THE
TOWN OF LOS GATOS
APPROVING THE 2004/05 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 to by issued by C.G.Uhlenberg,LLP,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 ofthe 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 2004/05 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/Redevelopment Agency hereby approves and adopts
the 2004/05 Annual Report for the Los Gatos Redevelopment Agency,attached hereto as
Exhibits A,Band 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 the 5th day of December,2005 by the following vote:
COUNCIL/AGENCY BOARD MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
CLERK ADMINISTRATOR
TOWN OF LOS GATOS
LOS GATOS,CALIFORNIA
SIGNED:/s/
MAYOR/CHAIRPERSON OF THE
TOWN OF LOS GATOS
LOS GATOS,CALIFORNIA
TOWN OF LOS GATOS
REDEVELOPMENT AGENCY
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30,2005
WITH INDEPENDENT AUDITORS'REPORTS
THEREON
** *
Exhibit A
TOWN OF LOS GATOS
REDEVELOPMENT AGENCY
TABLE OF CONTENTS
FOR THE YEAR ENDED JUNE 30,2005
PAGE
Independent Auditors'Report......................................................................................1- 2
Management's Discussion and Analysis 3 - 9
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 10
Statement of Activities.....................................................................11
Fund Financial Statements:
Governmental Funds:
Balance Sheet.................................................................................................12
Reconciliation of the Balance Sheet -Statement of Net Assets....................13
Statement of Revenues,Expenditures and Changes in Fund Balances 14
Reconciliation of Statement of Revenues,Expenditures and Changes
in Fund Balances -Statement of Activities.............................................15
Notes to the Financial Statements..............................................................................16 -24
Required Supplementary Information:
Budgetary Comparison Schedules:
Statement of Revenues,Expenditures and Changes in
Fund Balance -Budget to Actual Redevelopment Fund 25
SupplementaryInformation:
Budgetary Comparison Schedules:
Statement of Revenues,Expenditures and Changes in
Fund Balance -Budget to Actual Redevelopment Fund.......26
Statement of Revenues,Expenditures and Changes in
Fund Balance -Budget to Actual Redevelopment Fund 27
Independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 28
Summary of Compliance Findings................................29
Summary of Prior Year Compliance Findings 30
c.G.UHLENBERG LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E.BARSANTI (RETIRED)•PEGGY H.CHEN,C.P.A.•JEFFREY J.IRA,C.P.A..KATHERINE CHAO,C.P.A .•JULIE LIN,C.P.A.
INDEPENDENT AUDITORS'REPORT
Members of the Board of the
Town of Los Gatos Redevelopment Agency
Los Gatos,California
We have audited the accompanying financial statements of the governmental activities,each
major fund and the aggregate remaining fund information of the Los Gatos Redevelopment
Agency (the "Agency"),a component unit of the Town of Los Gatos,California,as of and for the
year ended June 30,2005,which collectively comprise the Agency's basic financial statements,
as listed in the table of contents.These 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 auditing standards generally accepted 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.Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.An audit includes examining,on a test
basis,evidence supporting the amounts and disclosures in the financial statements.An audit also
includes assessing the accounting principles used and significant estimates made by
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 financial statements referred to above present fairly,in all material respects,
the financial position of the governmental activities,each major fund and the aggregate
remaining fund information of the Los Gatos Redevelopment Agency as of June 30,2005,and
the respective changes in fmancial position for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards,we have also issued a report dated
September 23,2005 on our consideration of the Agency's internal control over financial reporting
and our tests of its compliance with certain provisions of laws,regulations,contracts,and grants.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results pf the testing,and not to provide an opinion on the
internal control over financial reporting or on compliance.That report is an integral part of an
audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
1
c.G.UHLENBERG LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E.BARSANTI (RETIRED)•PEGGY H.CHEN,C.PA •JEFFREY J.IRA,C.P.A.•KATHERINE CHAO,C.P.A .•JULIE LIN,C.PA
The Management's Discussion and·Analysis is not a required part of the basic financial
statements,but is supplementary information required by the Governmental Accounting
Standards Board.We have applied certain limited procedures,which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information.However,we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming an opinion the financial statements that
collectively comprise the Agency's basic financial statements.The combining financial
statements listed in the table of contents are presented for purposes of additional analysis and are
not a required part of the basic fmancial statements of the Agency.Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and,in
our opinion,is fairly stated,in all material respects,in relation to the basic financial statements
taken as a whole.
September 23,2005
Redwood City,California
2
Management's Discussion and Analysis
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
As a component unit of the Town of Los Gatos,the Redevelopment Agency ("Agency")was
established in response to the need to rebuild existing infrastructure damaged in the 1989 Lorna
Prieta Earthquake.The Redevelopment Agency area encompasses approximately 440 acres in
and around Downtown Los Gatos,which includes retail and residential areas,lodging,schools,
and main traffic thoroughfares.Projects such as street and utility reconstruction,parking,
streetscape and civic improvements were called out in the Redevelopment Plan.The Agency has
the power to condemn properties for this purpose and to issue debt payable out of the
incremental property taxes expected to be realized because of its redevelopment activities.The
Agency may enter into development agreements with developers and others to further its
purposes.
FISCAL 2005 FINANCIAL HIGHLIGHTS
Agency revenues experienced continued growth in the project area as compared to the prior year.
Property tax increments,the Agency's primary revenue source,increased $636,454 from the
amounts received the prior year.
•The assets of the Agency exceeded its liabilities at June 30,2005 by $4,958,464 (net assets).
Included in the determination of net assets is a negative (deficit)balance of ($6,493,531)in
unrestricted net assets.The deficit in unrestricted net assets is normal in California
redevelopment agencies.All redevelopment agencies leverage current tax increment
revenues by issuing long-term debt to raise capital to eliminate blight and promote economic
growth within the Agency's project area.
•The Agency's total net assets increased by $1,105,778 from the prior year.The increase is
largely due to an increase in property tax increment growth and a $979,094 growth in net
assets in the Agency's Low and Moderate Income Housing Fund.
•As of June 30,2005 the Agency's governmental funds reported combined ending fund
balances of $12,137,311,an increase of $1,136,396 in comparison from the prior year's
combined fund balance of $11,000,915.The increase is due primarily to an increase in fund
balances in the Town's Low and Moderate Housing Fund.
•At June 30,2005 total unreserved fund balance in the Town's governmental funds of
$4,032,770 increased $372,926 in comparison with the prior year's balances of $3,704,844.
•The Agency's total outstanding debt increased by $183,050 during the current fiscal year.
The increase is due to an increase in the Town's operating advances to the Agency made
during the year.
3
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This Report is in three parts:
1)Management's Discussion and Analysis (this part),
2)The Basic Financial Statements,which include the Agency-wide and the Fund financial
statements,along with the Notes to these financial statements,
3)Budget/Actual Statements for budgeted Capital Projects Funds.
The Basic Financial Statements
The Basic Financial Statements comprise the Agency-wide Financial Statements and the Fund
Financial Statements.These two sets of financial statements provide two different views of the
Agency's financial activities and financial position long-term and short-term.
The Agency-wide Financial Statements provide a longer-term view of the Agency's activities as
a whole,and comprise the Statement of Net Assets and the Statement of Activities.The
Statement of Net Assets provides information about the financial position of the Agency as a
whole,including all its capital assets and long-term liabilities on the full accrual basis,similar to
that used by corporations.The Statement of Activities provides information about all the
Agency's revenues and all its expenses,also on the full accrual basis,with the emphasis on
measuring net revenues or expenses of each of the Agency's programs.The Statement of
Activities explains in detail the change in Net Assets for the year.
The Fund Financial Statements report the Agency's operations in more detail than the Agency-
wide statements and focus primarily on the short-term activities of the Agency's Major Funds.
The Fund Financial Statements measure only current revenues and expenditures,current assets,
liabilities and fund balances;they exclude capital assets,long-term debt,and other long-term
amounts.
Major Funds account for the major financial activities of the Agency and are presented
individually,while the activities of any Non-major Funds would be presented in summary,with
subordinate schedules presenting the detail for each of these other funds.The Agency does not
have any Non-major Funds.Major Funds are explained below.
Together,all these statements are now called the Basic Financial Statements;formerly they were
called the general-purpose financial statements.
The Agency-wide Financial Statements
All of the Agency's basic services are considered to be Governmental activities,including;
economic development,pass through agreements,and debt service.General Agency revenues
such as incremental property taxes and investment earnings support these services.
Agency-wide financial statements are prepared on the accrual basis,which means they measure
the flow of all economic resources of the Agency as a whole.
Fund Financial Statements
Governmental Fund financial statements are prepared on the modified accrual basis,which
means they measure only current financial resources and uses.Capital assets and other long-
lived assets,along with long-term liabilities,are presented only in the Agency-wide fmancial
statements.
4
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Fund financial statements provide detailed information about each of the Agency's most
significant funds,called Major Funds.The concept of Major Funds,and the determination of
which are Major Funds,was established by GASB Statement 34 and replaces the concept of
combining like funds and presenting them in total.Instead,each Maj or Fund is presented
individually,with all Non-major Funds summarized and presented only in a single column.
Subordinate schedules present the detail of these Non-major funds.Major Funds present the
major activities ofthe Agency for the year.The Agency's Major Funds may change from year to
year as a result of changes in the pattern of Agency's activities.
The Agency has three Major Governmental Funds in 2005.These are the Redevelopment Fund,
the Housing Set-Aside Fund,and the Certificate of Participation Fund,each of which is
discussed in detail below.
FINANCIAL ACTIVITIES OF THE AGENCY AS A WHOLE
This analysis focuses on the net assets and changes in net assets of the Agency as a whole.
Tables 1,2 and 3 focus on the Agency's Governmental Statement of Net Assets and Statement of
Activities.
Governmental Activities
Governmental Net Assets presents total program assets and liabilities and the resulting allocation
of the Agency's net assets.
Table 1
Governmental Net Assets at June 30,2005
(In Millions)
Cash and fuvestments $15.45
Other Assets $5.25
Total Assets $20.70
Long Term Debt Outstanding $11.75
Other Liabilities $3.99
Total Liabilities $15.74
Net Assets:
fuvested in Net Assets $3.35
Restricted $8.10
Unrestricted $(6.49)
Total Net Assets:$4.96
5
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Agency's governmental net assets amounted to $4.96 million at June 30,2005.The
Agency's net assets at June 30, 2005 are comprised of the following:
•Unrestricted cash and investments comprised $12.02 million of pooled cash and investments
available for operations.Substantially all of these amounts were held in the Town's cash and
investment pool as described in Note 3 to the financial statements.Restricted cash and
investments of $3.43 million are funds held by trustees as prescribed under the Certificate of
Participation issuances.
•Other Assets of $5.25 million represents the value of the Parking Lot #4 parking structure,
which was considered infrastructure and not presented in the prior year's financial report.
Upon implementation of GASB 34,this infrastructure asset is now included as Other Assets
in the Agency-wide financial statements.
•Short term payables and pass-through obligations comprise $2.15 million of Agency
liabilities.As part of the Redevelopment Plan,the Agency entered into agreements with
other taxing agencies to pass-through portions of incremental property taxes and amounts due
are reflected at June 30,2005.
•As of June 30,2005 the Town of Los Gatos had advanced the Agency a total of $1.5 million
to partially fund ongoing Agency operations.This advance is repayable on demand.
•Long-term debt of $11.75 million,of which $11.35 million is due in future years and $.40
million,is due currently.
•The $3.35 million of 'Investments in Capital Assets,Net of Related Debt'describes the
portion of Net Assets that represents the current net book value of the Agency's capital
assets,less the outstanding balance of any debt issued to finance these assets.
•Restricted net assets total $8.10 million,of which $3.32 million may be used only for capital
projects,$4.34 million is restricted for low and moderate income housing purposes,and $.44
million may be used only for debt service.The restrictions on these funds were placed there
by outsiders and cannot be changed by the Agency.
•Unrestricted net assets are the part of net assets that can be used to finance day-to-day
operations without constraints established by debt covenants or other legal requirements or
restrictions.The Agency had $(6.49)million of unrestricted net assets at June 30,2005.This
deficit is a result of the $11.75 million in long-term debt proceeds,which are deducted from
fund balance.
6
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
Changes in Governmental Net Assets
The Statement of Activities presents program revenues and expenses and general revenues in
detail.All these are elements in the Changes in Governmental Net Assets summarized below.
Table 2
Changes in Governmental Net Assets
(In Millions)
Revenues
Program Revenues
Redevelopment Projects
General Revenues:
Property Tax mcrements
mterest
Total Revenues
2005
$
$5.01
$0.26
$5.27
Activities:
Functions /Programs
Redevelopment Projects
Pass-through payments
mterest and Fees
Total Government Activities
Change in Net Assets
$
$
$
$
$
0.88
2.08
0.68
3.64
1.63
As Table 2 above shows,$0.00 million (0%)of the Agency's 2005 Governmental revenue is
program revenue and $5.27 million (100%)came from general revenues such as taxes and
interest.Program revenues were comprised of charges for services,which include
reimbursements for expenses incurred in providing services.General revenues are not allocable
to programs.General revenues are used to pay for the net cost of governmental programs.
7
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
Net Revenue (Expense)ofGovernmental Activities
Table 3 presents the net (expense)or revenue of each of the Agency's governmental activities,
including interest on long-term debt.Net expense is defined as total program cost less the
revenues generated by those specific activities.
Table 3
Net Revenue (Expense)of Governmental Activities
(In Millions)
2005
Redevelopment Projects
Property Tax Increments
Interest
Totals
THE AGENCY'S FUND FINANCIAL STATEMENTS
$(0.88)
$(2.08)
$(0.68)
$(3.64)
Table 4 below summarizes Governmental Activity and balances at the fund level:
Table 4
Financial Highlights at Fund Level
(In Millions)
Governmental Funds
Total Assets
Total Liabilities
Total Fund Balances
Total Revenues
Total Expenditures
Total Other Financing Sources (Uses)
Analyses of Major Governmental Funds
2005
$15.91
$3.77
$12.14
$5.27
$4.13
$
Redevelopment Fund
Accounts for activities of the Redevelopment Agency of the Town and the related program tax
revenues.This fund encompasses three core functions:Redevelopment Agency administration,
Capital Project development and implementation,and the implementation of the Economic
Vitality Program.
Housing Set Aside Fund
Accounts for administering the housing component of the Redevelopment plan.The revenue
source for this program comes from the 20%State-mandated housing set-aside deducted from
incremental property taxes.
8
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
MANAGEMENT'S DISCUSSION AND ANALYSIS
Certificates ofParticipation Fund
This Fund accounts for financial resources to be used for the payment of principal and interest in
long-term obligations.Each of the Agency's debt issues is discussed in detail in Note 6 to the
financial statements.Certificates of Participation are used to fund the key infrastructure projects
in the Downtown redevelopment area.At June 30,2005,the Agency's debt comprised:
Government Activity Debt
1992 Certificates of Participation
2002 Certificates of Participation
Total Long Term Debt
ECONOMIC OUTLOOK AND MAJOR INITIATIVES
June 30,2005
Balance
(In Millions)
$1.45
$10.30
$11.75
The economy of the Agency and its major initiatives are discussed in detail in the Letter of Transmittal in
the Town of Los Gatos'Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,
2005.
CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT
These Financial Statements are intended to provide citizens,taxpayers,investors,and creditors with a
general overview of the Agency's finances.Questions about this Report should be directed to the Finance
Department,at 110 East Main Street,Los Gatos,CA 95030.
9
Basic Financial Statements
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
STATEMENT OF NET ASSETS
JUNE 30,2005
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Intergovernmental receivable
Capital assets -net
Total Assets
LIABILITIES
Accounts payable
Accrued payroll and benefits
Interest payable
Advances from Town of Los Gatos
Deferred Revenue
Pass through obligations
Long-term liabilities:
Due within one year
Due more than one year
Total Liabilities
NET ASSETS
Invested in capital assets,net of related debt
Restricted for:
Redevelopment proj ects
Low income housing
Debt service
Total restricted net assets
Umestricted
Total Net Assets
Governmental
Activities
$12,016,526
3,434,616
388,801
70,896
4,792,454
$20,703,293
$55,884
10,931
226,301
1,500,000
126,801
2,079,912
400,000
11,345,000
$15,744,829
$3,347,454
3,320,273
4,335,193
449,075
8,104,541
(6,493,531)
$4,958,464
The notes to the financial statements are an integral part of this statement.
10
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30,2005
Program Expenses:
Redevelopment
Pass-through payment
Interest and fees
Total Program Expenses
Program Revenues:
Charges for services
Total Program Revenues
Net Program Income (Expense)
General Revenues:
Tax allocation increment
Interest
Total General Revenues
Change in Net Assets
Net Assets -Beginning
Prior Period Adjustment
Net Assets -Beginning as Restated
Net Assets -Ending
Governmental
Activities
$880,421
2,084,767
682,358
3,647,546
4,597
4,597
(3,642,949)
5,013,351
251,151
5,264,502
1,621,553
3,852,686
(515,775)
3,336,911
$4,958,464
The notes to the fmancial statements are an integral part of this statement.
11
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30,20005
DEBT
SERVICE
CAPITAL PROJECT FUNDS FUND
Certificates Total
Housing of Governmental
Redevelopment Set-Aside Participation Funds
ASSETS:
Cash and investments available for operations $345,095 $4,075,395 $7,596,036 $12,016,526
Restricted cash and investments 2,985,541 449,075 3,434,616
Accounts receivable 388,801 388,801
Intergovernmental receivable 70,896 70,896
TOTAL ASSETS 3,330,636 4,464,196 8,116,007 15,910,839
LIABILITIES AND FUND EQUITY:
Accounts payable 1,634 54,250 55,884
Accrued payroll and benefits 8,729 2,202 10,931
Advances from Town of Los Gatos 1,500,000 1,500,000
Deferred revenue 126,801 126,801
Pass through obligations (Note)2,079,912 2,079,912
Total Liabilities 10,363 129,003 3,634,162 3,773,528
FUND EQUITY
Reserved for:
Encumbrances 448,688 448,688
Debt service 449,075 449,075
Redevelopment projects 2,871,585 2,871,585
Low and moderate income housing 4,335,193 4,335,193
Unreserved,designated for:
Debt service 4,032,770 4,032,770
Total Fund Balance )3,320,273 4,335,193 4,481,845 12,137,311
TOTAL LIABILITIES AND
FUND BALANCE $3,330,636 $4,464,196 $8,116,007 $15,910,839
The notes to the fmancia1 statements are an integral part of this statement.
12
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30,2005
Fund Balance of Governmental Fund Statements
Amounts reported for governmental activities in the statement of net assets
different because:
$12,137,311
Capital assets used in governmental activities are not fmancial resources and,
therefore,are not reported in the funds.
Capital assets $
Accumulated depreciation
Interest payable on long-term debt does not require the use of current financial
resources and,therefore,are not reported in the Governmental Funds.
Long-term liabilities,including bonds payable,are not due and payable in the
current period and,therefore,are not reported in the funds.
Certificates of participation
Government Wide Net Assets
6,487,348
(1,694,894)
$
4,792,454
(226,301)
(11,745,000)
4,958,464
The notes to the fmancial statements are an integral part of this statement.
13
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30,2005
DEBT
SERVICE
CAPITAL PROJECT FUNDS FUND
Certificates Total
Housing of Governmental
Redevelopment Set-Aside Participation Funds
Revenues:
Tax.allocation increment $$$5,316,509 $5,316,509
Less:ERAF(l)Allocations (303,158)(303,158)
Interest income 69,111 24,138 157,902 251,151
Other 4,597 4,597
Total Revenues 73,708 24,138 5,171,253 5,269,099
Expenditures:
Capital outlay 769,571 208,367 977,938
Pass through payment 2,084,767 2,084,767
Debt service:
Principal retirement 385,000 385,000
Interest and fees 684,998 684,998
Total Expenditures 769,571 208,367 3,154,765 4,132,703
Excess (Deficiency)of Revenues
over Expenditures (695,863)(184,229)2,016,488 1,136,396
Other Financing Sources (Uses)
Transfers in 515,750 1,163,323 1,679,073
Transfers out (1,679,073)(1,679,073)
Other financing use 930,710 930,710
Other financing source (930,710)(930,710)
Total Other Financing Sources (Uses)515,750 1,163,323 (1,679,073)
Net Change in Fund Balances (180,113)979,094 337,415 1,136,396
Fund Balances -Beginning 3,500,386 3,356,099 4,144,430 11,000,915
Fund Balances -Ending $3,320,273 $4,335,193 $4,481,845 $12,137,311
(1)Educational Revenue Augmentation Fund
The notes to the financial statements are an integral part of this statement.
14
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
RECONCILIATION OF THE STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30,2005
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds
Statement of Revenue,Expenditures and Change in Fund Balance,which measures only changes in
current assets and current liabilities on the modified accrual basis,with the Change in Net Assets of
Governmental Activities reported in the Statement of Activities,which is reported on the full accrual basis.
Net Changes in Fund Balances -Total Governmental Funds
Amounts reported for governmental activities in the statement of net assets
different because:
Governmental funds report capital outlays as expenditures.However,in
the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense.This
is the amount by which capital outlays exceeded depreciation in the
current period.
$1,136,396
Expenditure for capital assets
Depreciation expense is deducted from the fund balance
The issuance oflong-term debt provides current financial resources to
governmental funds,while the repayment of the principal oflong-term
debt consumes the current financial resources of governmental funds.
Neither transaction,however,has any effect on net assets.This
amount is the net effect of these differences in the treatment oflong-
term debt.
Repayment of debt principle is added back to fund balance
The amounts below included in the Statement of Activities do not provide
or (require)the use of cunent financial resources and therefore are not
reported as revenue or expenditures in governmental funds (net change):
Interest payable
Government Wide Changes in Net Assets
$259,709
(162,192)97,517
385,000
2,640
$1,621,553
The notes to the fmancial statements are an integral part of this statement.
15
Notes to Financial Statements
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
1.DESCRIPTION OF THE AGENCY AND REDEVELOPMENT PROJECTS
The Town of Los Gatos Redevelopment Agency (the "Agency")is a public body
established and authorized to transact business under the provisions of the Community
Redevelopment Law of the State of California,including the power to issue bonds for any
of its corporate purposes.Its purposes are to stimulate and attract private investment and
eliminate physical,social and/or economic blight.
The Redevelopment plan was established as a result of the Loma Prieta Earthquake in 1989
and the need to rebuild existing infrastructure.The Redevelopment Agency area
encompasses approximately 440 acres in and around Downtown Los Gatos,which includes
retail and residential areas,lodging,schools,and main traffic thoroughfares.Projects such
as street and utility reconstruction,parking,streets cape and civic improvements were called
out in the Plan.
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 authorities.Expenditures for these pass-through agreements
amounted to $2,079,912 for the year ended June 30,2005.ill addition,as of June 30,2005
the Agency owed $2,079,912 in pass-through amounts to other agencies.
As the Town is financially accountable for the Agency,the Agency is considered a
component unit of the Town.As such,the Agency is reported as part of the Town in the
basic financial statements of the Town.
2.SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Agency's Basic Component Unit Financial Statements are prepared in conformity with
accounting principles generally accepted in the United States of America.The Government
Accounting Standard Board (GASB)is the acknowledged standard setting body for
establishing accounting and financial reporting standards followed by governmental entities
in the U.S.A.
GASB requires that the financial statements described below be presented.
Government-wide Statements -The Statement of Net Assets and the Statement of Activities
include the fmancial activities of the overall Agency.Eliminations have been made to
minimize the effect of interfund of activities.Governmental activities are generally
financed through taxes,intergovernmental revenues,and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program
revenues for each function of the Agency's activities.Direct expenses are those that are
specifically associated with a program or function and,therefore,are clearly identifiable to
16
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
a particular function.Program revenues include (a)charges paid by the recipients of goods
or services offered by the programs,(b)grants and contributions that are restricted to
meeting the operational needs of a particular program and (c)fees,grants and contributions
that are restricted to fmancing the acquisition or construction of capital assets.Revenues
that are not classified as program revenues,including all taxes,are presented as general
revenues.
Fund Financial Statements -The fund financial statements provide information about the
Agency's funds.The emphasis of fund financial statements is on major individual
governmental funds,each of which is displayed in a separate column.All remaining
governmental funds are aggregated and reported as nonmajor funds.
Major Funds
GASB Statement 34 defmes major funds and requires the Agency's major governmental
funds to be identified and presented separately in the fund financial statements.All other
funds,called nonmajor funds,are combined and reported in a single column,regardless of
their fund-type.
Major funds are defined as funds that have assets,liabilities,revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the
grand total.The General Fund is always a major fund.The Agency may also select other
funds it believes should be presented as major funds.
The Agency reported the following major governmental funds m the accompanymg
financial statements:
Redevelopment Fund -This fund is used to account for financial resources used for the
acquisition or construction of major capital facilities.
Housing Set Aside Fund -This fund is used to account for twenty percent housing set aside
from the tax increment proceeds.
Certificates ofParticipation Fund -This fund is used to account for the accumulation of
financial resources and the payment of general long-term obligation principal,interest and
related costs.
Basis of Accounting
The government-wide financial statements are reported using the economic resources
measurement focus and the full accrual basis of accounting.Revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred,regardless of when the
related cash flows take place.
17
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
Governmental funds are reported using the current financial resources measurement focus
and the modified accrual basis of accounting.Under this method,revenues are recognized
when measurable and available.The Agency considers all revenues reported in the
governmental funds to be available if the revenues are collected within sixty days after
year-end.Expenditures are recorded when the related fund liability is incurred,except for
principal and interest on general long-term debt,which is recognized upon becoming due
and payable;and except for claims,judgments and compensated absences,which are
recognized when estimable and probable.Governmental capital asset acquisitions are
reported as expenditures in governmental funds.Proceeds of govennnentallong-term debt
and acquisitions under capital leases are reported as other financing sources.
Non-exchange transactions,in which the Agency gives or receives value with~ut directly,
receiving or giving equal value in exchange,include taxes,grants,entitlements,and
donations.On the accrual basis,revenue from taxes is recognized in the fiscal year for
which the taxes are levied or assessed.Revenue from grants,entitlements,and donations is
recognized in the fiscal year in which all eligibility requirements have been satisfied.Other
revenues susceptible to accrual include other taxes,intergovennnental revenue,interest,
and charges for services.
The Agency may fund programs with a combination of cost-reimbursement grants,
categorical block grants and general revenues.Thus,both restricted and unrestricted net
assets may be available to [mance program expenditures.The Agency's policy is to first
apply restricted grant resources to such programs followed by general revenues as
necessary.
Cash and Investments
The Agency's cash and cash equivalents are considered to be cash on hand,demand
deposits,and short-term investments if they are liquid.
The Town's investment policy and California Government Code permit investments in
obligations of 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.
Investments for the Agency are reported at fair value.The value is determined based upon
market closing prices.
Interfund Receivables and Payables
Balances representing lending/borrowing transactions between funds outstanding at the end
of the fiscal year are reported as either "due to/due from other funds"(amounts due within
one year),"advances to/from other funds"(non-current portions of interfund
lending/borrowing transactions),or "loans to/from other funds"(long-term
18
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
lendinglborrowing transactions as evidenced by loan agreements).Advances and loans to
other funds are offset by a fund balance reserve in applicable Governmental Funds to
indicate they are not available for appropriation,and are not expendable available financial
resources.
Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term
obligations are reported as liabilities in the Statement of Net Assets.
Tax Increment
The Agency has no direct taxing power and does not have the power to pledge the general
credit or taxing power of the Town,the State of California or any political subdivision
thereof.However,California's Health and Safety Code allows redevelopment agencies
with appropriate approvals of the local legislative bodies to recover costs of financing
public improvements from increased tax revenues (tax increment)associated with increased
property values of individual project areas.Property tax increment is recorded as revenue
when it becomes both measurable and available to finance expenditures.
Property Held for Resale
Property held for resale is acquired as part of the Agency's redevelopment program.All of
these properties are residential.Costs of developing and administering Agency projects are
charged to capital outlay expenditures as incurred.
The Agency does not maintain cost records by parcel,as there is no relationship between
costs incurred and the final disposition value,which is significantly affected by various use
restrictions.For financial statement presentation,this property is stated at the lower of
estimated cost or net realizable value.
Budgets and Budgetary Accounting
Prior to June 1,the Town Manager submits to the Town Council a proposed operating
budget for the upcoming fiscal year.The proposed budget includes a summary of proposed
expenditures and forecasted revenues of the Agency's governmental funds.
The Town Council adopts the budget by June 30 through passage of an adopting ordinance.
All appropriated amounts,as originally adopted or as amended by the City Council,lapse
at year-end or are subject to reappropriation in the following fiscal year.The budget is
adopted on a cash basis,which is not consistent with generally accepted accounting
principles.
19
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
The actual results of operations are presented in the combined statement of revenues and
expenditures -budget and actual in accordance with the budget basis to provide a
meaningful comparison of actual results to the budget.
Use of Estimates
The Agency's management has made certain estimates and assumptions relating to the
reporting of assets and liabilities and the disclosure of contingent assets and liabilities to
prepare these financial statements in conformity with generally accepted accounting
principles.Actual results could differ from those estimates.
3.CASH AND INVESTMENTS
The Agency holds its cash in the Town of Los Gatos (the "Town").The Town maintains a
cash and investment pool and allocates interest to the various funds based upon the average
quarterly cash balances.Information regarding credit risk and collateral requirements,as
applicable,can be found in the Town's financial statements.
Investments
The Agency voluntarily participates in LAIF,regulated under Section 16429 of the State
Government Code.LAIF allows local governments such as the Agency to participate in a
Pooled Money Investment Account managed by the State Treasurer Office and overseen by
the Pooled Money Investment Board and State Treasurer investment committee.A Local
Agency Investment Advisory Board oversees LAIF.As of June 30,2005,the Agency's
investment in LAIF was $2,268,752.
Information regarding investment risks related to credit risk,concentration of credit risk
and interest rate risk can be found in the Town's financial statements.
Under GASB 31,the Agency must adjust the carrying value of its investments to reflect
their fair value at each fiscal year end,and it must include the effects of these adjustments
in income for that fiscal year.
20
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
4.CAPITAL ASSETS
The following is a summary of the Agency's capital assets:
Balance Balance
Capital Assets July 1,2004 Additions Deletions June 30,2005
Infrastructure:
Parking Lot # 4 Project $4,355,330 $104,355 $$4,459,685
Alleys 229,709 15,669 245,378
Streets 1,642,600 139,685 1,782,285
Total capital assets 6,227,639 259,709 6,487,348
Less accumulated depreciation:
Parking Lot #4 Project 1,016,927 101,693 1,118,620
Alleys 434 7,657 8,091
Streets 515,341 52,842 568,183
Total accumulated depreciation 1,532,702 162,192 1,694,894
Total capital assets -net depreciation $4,694,937 $97,517 $ $4,792,454
Depreciation expense was $162,192 for the fiscal year ended June 30,2005.
5.ADVANCES FROM THE TOWN
The Town advanced $1,500,000 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 30,2005 the Agency paid the
Town $137,500 in interest on this advance.
6.LONG-TERM OBLIGATIONS
1992 Certificates of Participation (COPs)
The Town issued Certificates of Participation (COPs)in the original principal amount of
$2,960,000 dated August 1,1992.The Town's Motor Vehicle License Fee Revenues were
pledged as security for the COPs,and the guarantee was registered with the State
Controllers Office.The COPs were issued to [mance certain construction costs of the
Town's Parking Lot 4 Project,which was constructed on land located in the Los Gatos
Central Redevelopment Project Area.The COPs are similar to bond debt,and they allow
investors to participate in a share of guaranteed payments.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 1st,which interest payments payable semi-
annually on February 1st and August 1st.
21
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
To assist the Town in paying the cost of 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 1995-1996.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.
For the fiscal year ended June 30,2005,lease income and reimbursements in the amount of
$930,710 (offsetting)was recorded as other financing sources and uses in the Certificates
of Participation Fund.These transactions are eliminated from the Government-Wide
Statement of Activities.
2002 Certificates of Participation (COPs)
The 2002 Certificates of Participation financing parallels the 1992 issue.On August 1,
2002,the Town and the Los Gatos Redevelopment Agency issued $10,725,000 in 2002
Certificates of Participation to finance infrastructure improvements in the downtown
redevelopment area.The Town has pledged lease payments of real property and facilities
comprised of the Parks and Public Works Service Center and Baseball Field,as well as
Parking Lot No.1,2,and 3,as collateral for the repayment ofthe Certificates.
The COP principal payments are due annually on August 1st,with interest payments
payable semi-annually on February 1st and August 1st.
A summary of general long-term obligations account group transactions for the year ended
June 30,2005 follows:
Original Balance Balance Due
Issue June,30 JlIDe,30 Within One
Long-tennDebt A:rrount 2004 Additions Retirements 2005 Year
1992 Certificates ofParticipation,
5-9%,due 8/1/2012 $2,960,000 $1,615,000 $-$170,000 $1,445,000 $175,000
2002 Certificates ofParticipation,
Series A,2.5-5%,due 8/1/2031 10,725,000 10,515,000 215,000 10,300,000 225,000
Total Long-tennDebt $13,685,000 $12,130,000 $-$385,000 $11,745,000 $400,000
22
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
Future debt service requirements for general long-term debt with stated maturities are as
follows at June 30,2005:
Governmental Activities
For the Year
Ending June 30
Principal mterest
2006 $400,000 $526,758
2007 415,000 511,458
2008 430,000 495,910
2009 445,000 479,137
2010 465,000 460,975
2011-2015 1,845,000 2,040,304
2016-2020 1,680,000 1,699,837
2021-2025 2,110,000 1,257,883
2026-2030 2,685,000 666,375
2031-2032 1,270,000 64,250
Total Debt Service $11,745,000 $8,202,887
The Agency must maintain required amount 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 $973,953 at June
30,2005.
The California Government Code requires these funds to be invested in accordance with
Town ordinance,bond indentures or State statues.All these funds have been invested as
permitted under the Code.
7.NET ASSETS AND FUND BALANCES
Net Assets are the excess of all the Agency's assets over all its liabilities,regardless of
fund.Net Assets are divided into three captions under GASB Statement 34.These captions
apply only to Net Assets,which is determined at the Government-wide level,and are
described below:
Invested in Capital Assets,net of related debt describes the portion of Net Assets which is
represented by the current net book value of the Agency's capital assets,less the
outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Assets which are restricted as to use by the terms
and conditions of agreements with outside parties,governmental regulations,laws,or other
restrictions which the Agency cannot unilaterally alter.These principally include debt
service requirements,and redevelopment funds restricted to low and moderate income
purposes.
Unrestricted describes the portion of Net Assets which is not restricted to use.
23
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
Reservations of Fund Balances -Fund balance consists of reserved and unreserved
amounts.Reserved fund balance represents that portion of fund balance that has been
appropriated for expenditure or is legally segregated for a specific future use.As of June
30,2005,portions of fund balance had been reserved because of the following:
Encumbrances are reserved to encumber fund balance for purchase order commitments
made before fiscal year end.
Capital Outlay and Redevelopment Projects reserves are funded from storm drain fees,
construction taxes and debt proceeds that are legally restricted for major capital projects.
Debt Service reserves reflect the cash balances in the debt service funds that are restricted
for debt service payments.
8.TAX INCREMENT SHIFT TO EDUCATIONAL REVENUE AUGMENTATION
FUND (ERAF)
In fiscal year 2003 the state of California directed that a portion of the incremental property
taxes,which had been received in prior years by redevelopment agencies be paid instead to
local educational agencies.During the fiscal year ended June 30,2005,the Agency paid
$303,158 as a result of the State directive.
9.PRIOR PERIOD ADJUSTMENT
Beginning net assets was decreased by $515,775 for accumulated depreciation that was not
recorded against Infrastructure in prior years.Per GASB 34,Infrastructure and related
depreciation is not required to be recorded by the Agency until June 30,2008.This error
was a result of ongoing reconciliations performed in order to implement GASB 34.
24
Required Supplementary Information
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
HOUSING SET-ASIDE FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL (GAAP)
FOR THE FISCAL YEAR ENDED JUNE 30,2005
Budget Actual
Variance
Favorable
(Unfavorable)
Revenues:
Interest
Total Revenues
Expenditures:
Capital outlay
Total Expenditures
Excess (Deficiency)of Revenues
over Expenditures
Other Financing Sources (Uses)
Transfers in
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance -Beginning
78,838
78,838
261,650
261,650
(182,812)
893,327
893,327
$710,515
$24,138
24,138
208,367
208,367
(184,229)
1,163,323
1,163,323
979,094
3,356,099
$
$
(54,700)
(54,700)
53,283
53,283
(1,417)
269,996
269,996
268,579
Fund Balance -Ending
25
$4,335,193
Supplementary Information
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
REDEVELOPMENT FUND CAPITAL PROJECTS FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL (GAAP)
FOR THE FISCAL YEAR ENDED JUNE 30,2005
Budget Actual
Variance
Favorable
(Unfavorable)
Revenues:
Interest
Other
Total Revenues
Expenditures:
Capital outlay
Total Expenditures
Excess (Deficiency)of Revenues
over Expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers (out)
Total Other Financing Sources (Uses)
75,000 $
75,000
885,709
885,709
(810,709)
515,750
515,750
69,111
4,597
73,708
769,571
769,571
(695,863)
515,750
515,750
$(5,889)
4,597
(1,292)
116,138
116,138
114,846
Net Change in Fund Balance
Fund Balance -Beginning
$(294,959)(180,113)==$========11==4==,8==46==
3,500,386
Fund Balance -Ending $3,320,273
26
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
CERTIFICATES OF PARTICPATION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL (GAAP)
FOR THE FISCAL YEAR ENDED JUNE 30,2005
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Property Tax $3,987,470 $5,316,509 $1,329,039
Less:ERAF(l)Allocations (303,000)(303,158)(158)
Interest 153,812 157,902 4,090
Total Revenues 3,838,282 5,171,253 1,332,971
Expenditures:
Pass through payment 1,517,154 2,084,767 (567,613)
Debt Service:
.Principal 385,000 385,000
Interest and fees 684,265 684,998 (733)
Total Expenditures 2,586,419 3,154,765 (568,346)
Excess (Deficiency)of Revenues
over Expenditures 1,251,863 2,016,488 764,625
Other Financing Sources (Uses)
Transfers out (1,409,077)(1,679,073)(269,996)
Total Other Financing Sources (Uses)(1,409,077)(1,679,073)(269,996)
Net Change in Fund Balance $(157,214)337,415 $494,629
Fund Balance -Beginning 4,144,430
Fund Balance -Ending $4,481,845
27
Other Independent Auditor's Reports
c.G.UHLENBERG LLP
CERTIFIED PUBLIC ACCOUNTANTS
ROBERT E.BARSANTI (RETIRED)•PEGGY H.CHEN,C.P.A.•JEFFREY J.IRA,C.P.A..KATHERINE CHAO,C.P.A..JULIE LIN,C.PA
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND
INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Members of the Board of the
Town of Los Gatos Redevelopment Agency
Los Gatos,California
We have audited the basic financial statements of the Los Gatos Redevelopment Agency ("the Agency")
as of and for the year end June 30,2005,and have issued our report thereon dated September 23,2005.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards,issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Agency's basic financial statements are free
of material misstatement,we performed tests of its compliance with certain provisions of laws,
regulations and contracts,noncompliance with which could have a direct and material effect on the
determination of financial statement amounts.Such provisions include those provisions of laws and
regulations identified 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
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 caused by error or fraud 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 Mayor,members of the Town Council,and the State
Controller's office,and is not intended to be and should not be used by anyone other than these specified
parties.
September 23,2005
Redwood City,California
FINDINGS AND RECOMMENDATIONS
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
SUMMARY OF COMPLIANCE FINDINGS
YEAR ENDED JUNE 30,2005
No current year findings.
29
TOWN OF LOS GATOS REDEVELOPMENT AGENCY
SUMMARY OF PRIOR YEAR COMPLIANCE FINDINGS
YEAR ENDED JUNE 30,2005
No prior year findings.
30
__.~~l __....__..~~~~~_._-------------------..---------
California Redevelopment Agencies -Fiscal Year 2004/2005
Status of Low and Moderate Income Housing Funds
Sch C Agency Financial Summary
LOS GATOS RDA
Adjusted
Beginning
Balance
$3,356,099
Project
Area
Receipts
$1,187,461
Agency
Other
Revenue
$0
Total
Expenses
$208,367
Net
Resources
Available
$4,335,193
Other
Housing
Fund Assets
$0
Total
Housing
Fund Assets
$4,335,193
Encum-
brances
$0
*Unen-
cumbered
Balance
$4,335,193
Unen-
cumbered
Designated
$0
Unen-
cumbered
Not Dsgntd
$4,335,193
Expenses Planning and Total
Administration
Costs
12004/2005 $208,367 $208,367
*The Unencumbered Balance is equal to Net Resources Available minus Encumbrances
Note:Print this report in Landscape Orientation (Use the Print Icon just above,then Properties then Landscape)
Page 1 of 1 11/29/05
California Redevelopment Agencies -Fiscal Year 2004/2005
Status of Low and Moderate Income Housing Funds
Sch C Agency Financial and Program Detail
LOS GATOS RDA
Other Revenues not reported on Schedule A
Sum of Beginning Balance and Revenues
Total Tax Increment From PAls)$1,163,323
Beginning Balance
Adjustment to Beginning Balance
Adjusted Beginning Balance
Total Receipts from PA(s)
$3,356,099
$0
$3,356,099
$1,187,461
$0
$4,543,560
Expenditure
Item Subitem Amount Remark
Planning and Administration Costs
dministration Costs
Subtotal of Planning and Administration Costs
Total Expenditures
Net Resources Available
Indebtedness For Setasides Deferred
Other Housing Fund Assets
$208,367
$208,367
$208,367
$4,335,193
$0
Category
Total Other Housing Fund Assets
Total Fund Equity
Amount
$4,335,193
Remark
2000/2001
2001/2002
2002/2003
2003/2004
$714223
$815920
$828408
$1008739
sum of 4 Previous Years'
Tax Increment for 2004/2005
$3367290
Prior Year Ending
Unencumbered Balance
$3,356,099
Excess Surplus for
2004/2005
$0
Sum of Current and 3 Previous Years'Tax Increments
Adjusted Balance
Excess Surplus for next year
Net Resources Available
Unencumbered Designated
$3,816,390
$4,335,193
$518,803
$4,335,193
$0
Page 1 of 2 11/29/05
California Redevelopment Agencies -Fiscal Year 2004/2005
Status of Low and Moderate Income Housing Funds
Sch C Agency Financial and Program Detail
LOS GATOS RDA
Unencumbered Undesignated
Total Encumbrances
Unencumbered Balance
Unencumbered Balance Adjusted for Debt Proceeds
Unencumbered Balance Adjusted for Land Sales
Excess Surplus Expenditure Plan
Excess Surplus Plan Adoption Date
$4,335,193
$0
$4,335,193
$0
$0
No
Site Improvement Activities Benefiting Households
Income Level Low Very Low Moderate Total
Land Held for Future Development
Site Name Num Of
Acres
Zoning Purchase
Date
Estimated
Start Date Remark
Use of the Housing Fund to Assist Mortgagors
Income Adjustment Factor
Home
1__-
Requirements Completed 1 _
Hope IL$_
Non Housing Redevelopment I
Funds Usage .--_
Resource Needs
LMIHF DepositslWithdrawls
Document
Name
IAohlevements
Description
Document
Date
Custodian
Name
Custodian
Phone
Page 2 of 2 11/29/05
California Redevelopment Agencies-Fiscal Year 2004/2005
Project Area Contributions to Low and Moderate Income Housing Funds
Sch A Project Area Summary Report
LOS GATOS RDA
Tax Incr.Percent Total
Project Area 100%of Tax 20%Set Aside Tax Increment Amount Deferral Deposited to of Tax Repayment Other Deposited to
Increment Requirement Allocated Exempted Hsng Fund Incr Dep Deferrals Income Housing
CENTRAL LOS GATOS $5,816,615 $1,163,323 $1,163,323 $0 $0 $1,163,323 20%$0 $24,138 $1,187,461
PROJECT
Agency Totals:$5,816,615 $1,163,323 $1,163,323 $0 $0 $1,163,323 20%$0 $24,138 $1,187,461
Note:Print this report in Landscape Orientation (Use the Print Icon just above,then Properties then Landscape)
Page 1 of 1 11/29/05
California Redevelopment Agencies-Fiscal Year 2004/2005
Project Area Contributions to Low and Moderate Income Housing Fund
Sch A Project Area Financial Information
Agency
Address
LOS GATOS RDA
110 E.Main Street
PO Box 949
Los Gatos CA 95031
Project Area CENTRAL LOS GATOS PROJECT
Type:Inside Project Area
Plan Adoption:1991
Status:Active
Plan Expiration Year:2031
Gross Tax Calculated Amount Amount Amount Total %Cumulative
Increment Deposit Allocated Exempted Deferred Deposited Def.
$5,816,615 $1,163,323 $1,163,323 $0 $0 $1,163,323 20%$0
Repayment $0
Category
Interest Income $24,138
Total Additional Revenue $24,138
Total Housing Fund Deposits for Project Area $1,187,461
Agency Totals For All Project Areas:
Gross Tax Calculated Amount Amount Amount Total %Cumulative
Increment Deposit Allocated Exempted Deferred Deposited Def.
$5,816,615 $1,163,323 $1,163,323 $0 $0 $1,163,323 20%$0
Total Additional Revenue from Project Areas:
Total Deferral Repayments:
Total Deposit to Housing Fund from Project Areas:
$24,138
$0
$1,187,461
Page 1 of 11/29/05
Achievement Inforrnation(U naudited)
Fiscal Year 2005
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
o
Rehabilitated
o
New
Construction
Commercial Buildings I~=======:;
Industrial Buildings I~=======Public Buildings I~======~Other Buildings I~~;;;;;;;;;:;;::;~
Total Square Footage r---
Enter the Number of Jobs Created 1----------,
from the Activities of the Agency
Enter the amount of square
footage completed this year by
building type and segregated by
new or rehabilitated construction.
Activity Report
Continued on the Street Repair and Resurfacing project,Downtown Parking
Improvements project and the Alley Reconstruction project.The Santa
CruzIWood Gateway project was started in 2004/05.
Please provide a description of the agency's
activitieslaccomplishments during the past
year.
(Please be specific,as this information will
be the basis for possible inclusion in the
pUblication.)
Types Completed
A=Utilities B=Recreation C=Landscaping D=Sewerl Storm E=Streetsl Roads
F=BuslTransit
Achievement Information (Unaudited)Page 1 11/29/2005
___1 . _-----------~~---------------------
Audif Information
Fiscal Year 2005
Was the Report Prepared from Audited Financial Data,
and Did You Submit a Copy of the Audit?
Indicate Financial Audit Opinion
If Financial Audit is not yet Completed,What is the
Expected Completion Date?
If the Audit Opinion was Other than Unqualified,State
Briefly the Reason Given
Was a Compliance Audit Performed in Accordance with
Health and Safety Code Section 33080.1 and the State
Controller's Guidelines for Compliance Audits,and Did
You Submit a Copy of the Audit?
Indicate Compliance Audit Opinion
If Compliance Audit is not yet Completed,What is the
Expected Completion Date?
Audit Information
Yes I
Unqualified I
Yes I
IUnqualified
Page 1
If compliance opinion includes exceptions,
state the areas of non-compliance,and
describe the agency's efforts to correct.
11/29/2005
Project Area Report
Fiscal Year 2005 Project Area Name /LOS Gatos Project Area
:=====1I
0.01
441 1
2031
1
2041
1
2011 1
100.01
Yes I
12/01/1991/
;=====1
Yesl
A =Administrative Fund
M =Mortgage Revenue Bond Program
S =Proposed (Survey)Project Area
(MM-DD-YY)
Forwarded from Prior Year?
Enter Code for Type of Project Area Report
P =Standard Project Area Report
L =Low and Moderate Income Housing Fund
o =Other Miscellaneous Funds or Programs
Does the Plan Include Tax Increment Provisions?
Date Project Area was Established
Most Recent Date Project Area was Amended
Did this Amendment Add New Territory?
Most Recent Date Project Area was Merged
Will this Project Area be Carried Forward to Next Year?
Established Time Limit:
Repayment of Indebtedness (Year Only)
Effectiveness of Plan (Year Only)
New Indebtedness (Year Only)
Size of Project Area in Acres
Percentage of Land Vacant at the Inception of the Project Area
Health and Safety Code Section 33320.1 (xx.x%)
Percentage of Land Developed at the Inception of the Project Area
Health and Safety Code Section 33320.1 (xx.x%)
Objectives of the Project Area as Set Forth in the Project Area Plan
(Enter the Appropriate Coders)in Sequence as Shown)
R =Residential I =Industrial C =Commercial P =Public 0 =Other
Activity Report
Please Provide a Brief Description of
the Activities for this Project Area
During the Reporting Year.
Continuation of Street Repair and
Resurfacing Project,Downtown
Parking Improvements Project and
Alley Reconstruction.
The Santa Cruz/Wood Gateway
project was started in 2004/05.
Project Area Report Page 1.11/29/2005
Assessed Valuation Data
Fiscal Year
Project Area Name
2005
ILOS Gatos Project Area
Frozen Base Assessed Valuation
Increment Assessed Valuation
Total Assessed Valuation
Assessed Valuation Data
I 287,591,071 1
1 __3_6-.-:..4 ,8_5-.-:..1,_37_8 1
Page 1 11/29/2005
___.--l ~_---~------
Pass-Through I School DistrictAssistance
Fiscal Year 12005
Project Area Name ILOS Gatos Project Area
Tax Increment Pass Through Detail Other Payments
Amounts Paid To Taxing
Agencies Pursuant To:
H &S Code
Section 33401
H &S Code
Section 33676
H &S Code
Section 33607
Total H &S Code
Section 33445
H &S Code
Section 33445.5
$0
$75,697
$1,594,102
$0$2,079,912$500,106
'-__1_°-'-1,4_4_3 1 1-'-.,4_92-:.,6_5_9 1 -----;
75,6971 -------'
IITotalPaidtoTaxing
Agencies
County
School Districts
Community College District
Cities
Special Districts
Net Amount to Agency
Gross Tax Increment
Generated
Pass-Through /School District Assistance Page 1 11/29/2005
Summary of the Statement of IndebtEldness -ProjectArea
Fiscal Year
Project Area Name
Tax Allocation Bond Debt
Revenue Bonds
Other Long Term Debt
City/County Debt
2005
1=========1I I
1 56,363,574 1
I I
Low and Moderate Income Housing Fund
Other
Total
Available Revenues
Net Tax Increment Requirements
Summary of the Statement of Indebtedness -Project Area
I 41,218,754 1
I 110,442,623 1
............................_...._...._--.
[I $208,024,951
1 8,046,821 1
[I $199,978,130
Pager1 11/29/2005
~c_._L __. _
Agency Long-Term Debt
Fiscal Year
Project Area Name
12005 I
ILos Gatos Project Area
Iproject Funding
$1,445,833
====1
====1
169,167 1
I
1998
1
1 2,960,000 1
1 2,960,000 1
ICertificates of Participation
I========~1 _
1
1998
1
1
2012
1
II $1,615,000
II
CCC
•
Forward from Prior Year
Bond Type
Year of Authorization
Principal Amount Authorized
Principal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued During Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest In Default
Bond Types Allowed:
Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority
Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other
Agency Long-Term Debt Page 1 11/29/2005
Agency Long-Term Debt
Fiscal Year
Project Area Name
12005 I
ILos Gatos Project Area
$10,300,000
Forward from Prior Year
Bond Type
Year of Authorization
Principal Amount Authorized
Principal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued During Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest In Default
ICertificates of Participation
I :=l@
1 10,725,0001
I 10,725,000 I
Iproject Funding
I
2003
1
I
2032
1
II $10,515,000
,===:::::::0-_
I===~__--I~==II I
1 215,000 I
I 1
II
I---~
I I
Bond Types Allowed:
Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;State;
Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other
Agency Long-Term Debt Page 2 11/29/2005
Agency Long-Term Debt
Fiscal Year
Project Area Name
12005 I
ILos Gatos Project Area
FOlWard from Prior Year
Bond Type
Year of Authorization
Principal Amount Authorized
Principal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued During Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest In Default·
2001 1
20121
$984,250
~===I515,750 I
$1,500,000
Types Allowed:
Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;St,~te;
Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other
Agency Long-Term Debt Page 3 11/29/2005
____L ._
Statement of Income and Expenditures -Revenues
Fiscal Year
Proiect Area Name [Los Gatos Project Area
Capital Project
Funds
Debt Service
Funds
Low/Moderate
Income Housing
Funds
Special
Revenue/Other
Funds Total
$0
$0
$0
$0
$0
$0
$4,597
$930,710
$5,816,615
930,710
4,597
'---'-1_"5-','-8_16-',_6_15_1 li(I~111~il iJ'~~~t5l1~i'i,:ii.li,i.c;I.cIf{1
1 I I II $0====1====*=1===1====i1~1-=---==----·==··-==----·""='$0==
'---===='I I====::;:..r~---==-===-=~$O--=_
r-I 1 1 [$0
===::::::69::=,==11=11 157,9011 24,1381=======i~·"'·..............,..$2=5...1,....15....0='
Tax Increment Gross
(Include All Apporlionments)
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 $24,138 $0 ~$7,003,072
Statement of Income and Expenditures -Revenues Page 1 11/29/2005
._._~.J_~...~".~~.~__----------~--~.__.-_.----
Statement of Income and Expenditures -Expenditures
Fiscal Year
Project Area Name
12005 I
ILos Gatos Project Area
Capital Project
Funds
Debt Service Low/Moderate Special
Funds Income Housing Revenue/Other Total
Administration Costs
Professional Services
======55::;:7,=:64=;9 ========~=====2=0=4,::::::12==1 1==========r:~-....--~""-~.:..$7~61..;.,7-=7.:..0 ....
8,377 4,245 1 .r $12,622
Planning,Survey,and Design I :1 $0
Real Estate Purchases I ,r $0
Acquisition Expense I I ~$0
::~::~:::::Property ~==~~==~~==~~==~~==~~=";;1~==~~==~~==~~==~~==~=:=~:==~:==~:==~:==~:==~:~==~~==~~==~~==~~==~~=~~J~=~~==~~==;c~==~~==~::=;c~:
Site Clearance Costs I I r---$0
Project Improvement 1 Construction Costs 1 1_9_6'----,7_7_5L.1 ----'L./------Cr,"""$196,775-""
Disposal Costs I r"-------..-$0----
Loss on Disposition of Land Held for I ,I -$0 -
Resale
Statement of Income and Expenditures -Expenditures Page 1 11/29/2005
----~-~._--.--~----_.-.-------~---
Fiscal Year
Project Area Name
Statement of Income and Expenditures -Expenditures
12005 1
ILos Gatos Project Area
Capital Project
Funds
Debt Service Low/Moderate Special
Funds Income Housing Revenue/Other Total
$0
$0
$0
$0
_..-
$6,768
$1,615,708
l--__]L-__-'-I__,----L__-.J[f
I I ~..
================1 II
1 1,615,708 1 !I
:========1 I r
___~6,,,--,76:..::....81 1 il
==============1===============[;...1~~~$O=-
2,888,863 1 ------e[r-$2,888:863
Rehabilitation Costs
Rehabilitation Grants
Decline in Value of Land Held for Resale
Interest Expense
Fixed Asset Acquisitions
Subsidies to Low and Moderate Income
Housing
Debt Issuance Costs
Other Expenditures Including Pass-
Through Payment(s)
Debt Principal Payments:
Tax Allocation Bonds and Notes
Revenue Bonds,Certificates of
Participation,Financing Authority
Bonds
1 f --.--_.--$0
======~=======
_____..1...-__--=3..:..842 ,1.:..::6..:-71 --l --.-.;:I $384,167
$0
$0City/County Advances and Loans 1 --'---'1 ---..;11
All Other Long-Term Debt I I r
Total Expenditures r -$769,56~I-r $4.888,738$208,366~$0 ,I $5,866,673
Excess (Deficiency)Revenues over [1($695,861)·il $2,016,488($184,228)11~~~~~$=-:0:---ij]~·~~$::":1~,1~376,~39"'9"""
(under)Expenditures
Statement of Income and Expenditures -Expenditures Page 2 11/29/2005
'-~~-'~~~~---~-~-----~.-------_._-----------.-.
Statement of Income and Expenditures·Other Financing Sourc.es
Fiscal Year
Project Area Name
12005
ILos Gatos Project Area
Capital Project
Funds
Debt Service Low/Moderate Special
Funds Income Housing Revenue/Other Total
$0
$0
$515,750
$515,750
$515,750$0 -[I$1,163,323 r---
I I [1---------
________Il-I ---ir,----
__-=-51-=-5,,--75_01 -;='========'[I
================5=1~5,=75~0-L:~~~~~1~,1=63=,3=2=3:~iF:~...,$:-;-.~=,i6--1:=:~=~~~'
1,163,323 I ~---$1,163,323
~=============~======I=======~r""""·--~---~~$O~I r-------------$0-
~============~=====I=======I:-.-I~..............;.$O~
515,750 I I r
Proceeds of Long-Term Debt
Proceeds of Refunding Bonds
Payment to Refunded Bond Escrow Agent
Advances from City/County
Sale of Fixed Assets
Miscellaneous Financing Sources (Uses)
Operating Transfers In
Tax Increment Transfers In
Operating Transfers Out
Tax Increment Transfers Out
(To the Low and Moderate Income Housing Fund)
...-==~~~-:F'=7=~........=;r="""="""';"'""""""=:;=====~
Total Other Financing Sources (Uses)
Statement of Income and Expenditures ~Other Financing Sources Page 1 11/29/2005
----_._---------~~---,-----,,-,-----
Statement of Income and Expenditures-Other FinanCing Sources
Fiscal Year
Project Area Name
12005
!Los Gatos Project Area
Capital Project
Funds
Debt Service Low/Moderate Special
Funds Income Housing Revenue/Other Total
Excess (Deficiency)of Revenues and [r'"($180:11-1')[r
Other Financing Sources over
Expenditures and Other Financing Uses
$979,095[1 $0 $1,652,149
Equity,Beginning of Period [r $3,500,385"t!$5,128,680 'II $3,356:099"r'$"ci '[$11,985,164
Prior Period Adjustments I ~I I II $0
Residual Equity Transfers I -1 11r-------11L-.-...:-1 1----'[1'($2)
Other(Specify)A 8 C D E Refresh
IIL..-----T-ota-I-I ;'--,.,--:---'-""'ll-""-----'-------.ui=,===='
Other Total
Equity,End of Period
r
rr'
T
$13,637,311
Statement of Income and Expenditures -Other Financing Sources Page2 11/29/2005
---.__.__.--------.------------
Balance Sheet·Assets and Other Debits
Fiscal Year 2005 Capital Projects
Funds
Debt Service
Funds
Low/Moderate
Income Housing
Funds
Special
Revenue/Other
Funds
General Long-
Term Debt
General Fixed
Assets Total
Assets and Other Debits
Accrued Interest Receivable
Contracts Receivable
Loans Receivable
Accounts Receivable
Cash and Imprest Cash
Cash with Fiscal Agent
Tax Increments Receivable
Lease Payments Receivable
Unearned Finance Charge
Due from Capital Projects Fund
~======~==========:===========:============Due from Debt Service Fund
Due from Low/Moderate
Income Housing Fund
Due from Special
Revenue/Other Funds
Balance Sheet -Assets and Other Debits Page 1 11/29/2005
_____1 .~~~~~~~~~~~~~~~~_
Balance Sheet -Assets and Other Debits
Fiscal Year 2005 Capital Projects
Funds
Debt Service
Funds
Low/Moderate
Income Housing
Funds
Special
Revenue/Other
Funds
General Long-
Term Debt
General Fixed
Assets Total
Investments
Other Assets
Investments:Land Held for
Resale
Allowance for Decline In
Value of Land Held for Resale
$0
,-_.._.._._.._-__..
$0
Fixed Assets:Land,
Structures,and Improvements
Equipment
Amount Available In Debt
Service Fund
Amount to be Provided for
Payment of Long-Term Debt
Total Assets and Other
Debits
(Must Equal Total Liabilities,
Other Credits,and Equities)
r $3,330,636 $8,116,007 1 $4,464,196 -.~--$0 -r $13,245,833 l $0 r $29,156,672
Balance Sheet -Assets and Other Debits Page 2 11/29/2005
---~.._--..----_.-__._..-----
Balance Sheet-Liabilities and Other Credits
Fiscal Year 2005 Capital Projects
Funds
Debt Service
Funds
Low/Moderate
Income Housing
Funds
Special
Revenue/Other
Funds
General Long-
Term Debt
General Fixed
Assets Total
Liabilities and Other Credits
Accounts Payable
Interest Payable
Tax Anticipation Notes Payable
Loans Payable
Other Liabilities
Due to Capital Projects Fund
Due to Debt Service Fund
Due to Low/Moderate
Income Housing Fund
Due to Special
Revenue/Other Funds
Tax Allocation Bonds Payable
Lease Revenue,Certificates
of Participation Payable,
Financing Authority Bonds
1,634
8,729
2,079,912
54,250
129,003
6
$54,250
$0
$0
$137,732
$0
..._.__.__._-----------,
$0
$0
$0
All Other Long-Term Debt
Total Liabilities and Other
Credits
$10,363[1$2:134,162 11
/J:':. .:'::,1
$129,003[1 $0 'r 1,500,000 It,:..1 $1,500,000
$15,519,361
Balance Sheet -Liabilities and Other Credits Page 1 11/29/2005
Balance Sheet-Liabilities and Other Credits
Fiscal Year
Equities
2005 Capital Projects
Funds
Debt Service
Funds
Low/Moderate
Income Housing
Funds
Special
Revenue/Other
Funds
General Long-
Term Debt
General Fixed
Assets Total
Investment In General Fixed
Assets
Fund Balance Reserved
Fund Balance
Unreserved-Designated
Fund Balance
Unreserved-Undesignated
Total Equities
Total Liabilities,
Other Credits,and
Equities
$3,320,273
$3,330,636 1I
$5,981,845
$8,116,007
$4,335,193[1
$4,464,196···.·.·.·[1 $0 $13,245,833
$0
$0·"
$13,637,311
$29,156,672
Balance Sheet -Liabilities and Other Credits Page 2 11/29/2005
Statement of Income and Expenditures-Summary,Combined Transfers InlOut
Fiscal Year
Operating Transfers In
Tax Increment Transfers In
Operating Transfers Out
2005
[I $1,163,323
[1~~~$5~1""'5,~75~0~
Tax Increment Transfers Out
Statement of Income and Expenditures -Summary,
Combined Transfers In/Out
[I $1,163,323
Page 1 11/29/2005