The URL can be used to link to this page

2008-140-Approving The 2007/08 Annual Report For The Los Gatos Redevelopment AgencyRESOLUTI,~~N 2008-140. RESOLUTION OF THE TOWN COUNCIL/REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS APPROVING THE 2007/08 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY WHEREAS: 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. 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 of the agency, including all financial activities involving low and moderate income housing fiords. 4. The Statement of Housing Activity, Annual Report of Financial Transactions,. and Statement of Indebtedness are attached hereto as Exhibits B, C and D, consist of forms provided by the State Department of Housing and Community Development. 5. Approval of the 2007/08 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 2007/08 Amnial Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A, B, C and D. FURTI31iJR RESOLVED, that the Town (~ouncil determines the planning and administrative expenses from the Low and Moderate Income Housing Fund is 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 15th day of December 2008 by the following vote: COUNCIL MEMBERS: AYES: Steve Glielcman, Diane McNutt, Joe Pirzynski, Barbara Spector, and Mayor Milce Wasserman NAYS: ABSENT: ABSTAIN: SIGNED: /,'mow A T PEST: !~. E ~OF THE TOWN OF LOS GATOS GZ, __~ I LOS GATOS, CALIFORNIA MAYOR OF TI-IE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA TOWN OF LOS GATOS REDEVELOI'NXENT AGENCY BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2008 W1TH INDEPENDENT AUDITORS' REPOR'T'S TEIEREON ~TBI'~ A TOWN OF LC~S GATOS REDEVELOPMENT AGIrNCY TABLE OF CONTENTS FOR THE. YEAR ENDED 3UNE 3 0, 2008 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 5heet ................................................................................................. 12 Reconciliation of the Balance 5hect -Statement of Net Assets .................... 7.3 Statement of Revenues, Expenditures, and Changes in Fund Balances,....... ] ~l Reconciliation of Statement ofRevenues, Expenditures, and Changes in Fund Balances - Statement of Activities ............................................. 15 Notes Lo the Financial Statements .............................................................................. 16 - 24 Supplementary Information: Budgetary Comparison Schedules: Schedule oflZeventtes, Expenditures, and Changes in Fund Balance -Budget to Actual -Redevelopment Fund ............................. 25 Schedule of Revenues, Expenditures, and Changes. in Fuud Balance -Budget to Actual -Housing Fund, ........................................ 26 Schedule of Revenues, Expenditures, and Changes in fund Balance - Budget to Actual -Certificates of Participation fund .......,,. 27 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Utlicr Matters Based on an Audit of Financial Statements I'erformcd in Accordance with Gouef•rt~aentAurliti~ig St~t~zdards .............................................................................. 28 - 29 Summary of Compliance Finclittgs ............................................................................... 30 Summary of Prior Year Compliance Findings ........................................................... 31 r T T T ~{h~~ ~-{ T CERTIFIEb PUBLIC ACCOUNTANTS & CONSULTANTS PEQQY H, CHEN, C.F:A. JEFFREYJ. IRA, C.P.A. KATHERINE CHAO, C.pA. Jl1UET. UN, C.P.A. INDEPENDENT AUDTT'OI2.S' 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 Las Gatos Redevelopment Agency (the "Agency"), a componentunit of the Town of Los Gatos,. California, as of and far the year ended rune 30, 2008, which collectively comprise the. Agency's basic financial statements, as listeCi in the rabic of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opiiYion 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 Stamdards, issued by the Comptroller General of the United States. Those standards require that we plan and perfornr 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 goverunicntal activities, each major fund and the aggregate remaining fund information of the Los Gatos Redevelopment Agency as of June 30, 200$, and the respective changes in financial position for the year. then ended in conformity wsth accounting principles generally accepted in the United States of America. Yn accordance with ovemment Auditing, Standards, we have also issued 'a report dated November 28, 2008 ou 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 grant agreements and ether matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results pf the resting,. 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 Audtin Standards and should be read in conjunction with this report in considering the results of our audit. 333 '['win Dolphin Dttive, Smite 230 • Redwood City, CA 940GS • Phone (G50) 802-8GG8 • Fax (G50) $02-0866 41.17 Clipper Court • Premone, CA 94538 • Phone (510) 770-8680 • Fax (510) 770-8685 1230 Midas Way, Suite 2S0 • Sunnyvale, CA 94D85 • Phone (408) 331-622 • Pax (408) 331-6243 &Mail - infoC~cgucpa,com • www.cgucpa.com ~~I The Management's Discussion and Analysis is not a required part of the basic financial statements, brit is supplementary information required by the Governmental Accounting Standards Board. 'VJe 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 an it. Our audit was conducted for the purpose of forming an opinion the financial statements that eolleatively comprise the Agency's basic financial statements. The budgetary schedules listed in the table of contents are presented far purposes of additional. analysis. and are nat a required part of the basic financial statements of the Agency Such information has been subjected to the auditing procedures applied in the audit of rho basic financial statements and, in our opinion, is fairly stated, in all material respects, in xelation to the basic financial statements taken as a whole. December 5, 20x8 Redwood City, Califonria. Management's Discussion and Analysis TOWN OF LOS GATOS RED~VELOI'MENT AGENCY MANAGEMENT'S DISCUSSION AND ANALYSTS 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 Loma Prieto Earthquake. The Redevelopment Agency area encompasses approximately 440 acres in and around Downtown Las Gatos, which includes retail and residential areas, lodging, schools, and main traffic thoroughfares. Projects Sllell 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 fiu•ther its purposes. FISCAL 2003 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 sotu•ee, increased $1,449,864 fi•am the amounts received the prior year. • The assets of the Agency exceeded its liabilities. at June 30, 2008 by $8,412,581 (net assets). Included in the determination of net assets is a negative (deficit) balance of ($4,082,194): in unrestricted net assets. The deficit in unrestricted. net assets is normal in California redevelopment agencies. All redevelopment agencies leverage current tax increment revea~ues by issuing long-term debt to raise capital to eliminate blight and promote economic growth within the Agency's project area. `Fhe Agency's total net assets decreased by $1.95 million from the prior year.. `t'he decrease is largely due to a t-•ansfer of capital assets to the "Town. • As of June 30, 2008, the Agency's governnlentai fluids reported combined ending fund balances of $16,469,613;. an increase of $1,288,664 in comparison from the prior year's combined field balance of $15,180;949. 't'he increase is due pritliarily to au increase in fund balances in tl~c'l'awn's Low and Moderate Housing Fund and Debt Service fund. • At June 30, 2008 total unreserved fiand balance in the Town's governmental funds of $5,728;848 increased $1,8'19,465 in comparison with the prior year's balances of $3,849,383. OVFI2VIEW OF THE BASIC FINANCIAL STA"1`LMENTS 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 rand fa~ancial statements, along with the Notes to these financial statements, and 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 rued rinancial Statements. These tvvo sets of financial statements provide two different views of the Agency's financial activities and financial position long-term and short-term. TOWN OF LOS GATOS 12.E]7EVELOPMENT AGENCY MANAGEMENT'S DISCUSSrON AND ANALYSIS The Agency-wide Financial Statements provide alonger-term view of the Agency's activities. as a whole, and comprise the State-nent 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 frill accrual basis, with the emphasis on measuring net: revenues or expenses of each. of the Agency's programs. The Statement of Activities explains in deta[1 the change in Net Assets for the year. The Fund Financial Statements report the Agency's ope-•ations 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 fond balances; they exclude capital assets, long-term debt,. and other long-term all'lOllntS. Major Funds account for the majo-• 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-majot• 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-tvicle 1+'i~ranci~al State-~7ents All of the Agency's basic services are considered to be Governmental activities, including; economic development, pass tllrotrgh agreements, and debt service. General Agency revenues such as incremental propettytaxes and investment earnings support these services. Agency-wide financial statements are prepared on the accrual basis, which means they measure the flow of al] economic resources of the Agency as a whole. F2~nd Figuncial Statel~~ents 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 financial statements. The fund financial statements provide detailed inforuration about. each. of the Agency's most significant funds, called Major I•tmds. "I'he concept of Major Funds, and the detet•mination of which are MaJOr FUlldS, was established by GASB Statement 34 and replaces Chc concept of combining like funds and presenting them in total, Instead, each Nlajor Fttnd is presented individually, with all Non-major Funds summarized and presented only in a single co{tunn. Subordinate schedules present the detail of these Non-majo-• firnds. Major Funds present the TOWN OF LOS GATOS RED~I~VELOPMENT AGENCY MANAGEMENT'S DISCUSSION AND ANALYSIS major activities of the Agency for the year. The Agency's Major Funds may change froth year to year as a result of changes in the pattern of Agency's activities. The Agency has three Major Governmental Funds in 2008. These are the Redevelopment Fttnd, the hlousiug 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 atld changes in net assets of the Agency as a whole. Tables 1, 2 and 3 focus on the Agency's Governmental Statement of N'et Assets and Statement of Activities. Goverrzrraeratcrl ~Ictivftres 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, 2008 (In Millions) June 30, 2008 Junc 30, 2407 Cash and Investmetlts $ 20,95 $ 22.11 Other Assets 3.17 6.79 Total Assets $ 24.12 $ 28.90 Long'l'erm Debt Outstanding $ 10.50 $ 10.93 Other Liabilities 5..39 7.60 Total Li~bilitics $ 15.89 $ 1.8.53 Net Assets: Invested in Net Assets $ 1.75 $ S .24 Restricted 10.74 I I.33 Unrestricted (4.26) (6.21} Total Net Assets: $ 8.23 $ 10.36 The Agency's governmental net assets amounted to $8.23 million at June 30, 2008. The Agency's net assets at June 30, 2008 ace comprised of the following: Unrestricted cash and investments comprised $20.95 million of pooled cash and investments avai table for operations. Substantially all of these amounts were held in the Tovvn's cash and investment pool as described in Notc 3 to the flllallelal State111e11tS. IZeStt'[Cted cash and 5 TOWN OF LOS GATOS REIT~~EVELOPIVIENT AGENCY MANAGEMENT'S DISCUSSION AND ANALYSIS investments of $1.49 million are holds held by trustees as prescribed under the Celtif-cate of Participation issuances. Other Assets of $3.17 million largely represents the value of the Parking Lot #4 parking structure, which is considered an infrastructure capital asset under the provisions of GASB 34. Sho1•t-term payables and pass-through obligations campl•ise $3.71 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 Ju11e 30, 2008. As of June 30, 2008 the ~l'own of Los Gatos had advanced the Agency a total of $1.S million to partially fund ongoing Agency operations. This advance is repayable on demand. d Long-term debt of $10.50 million, of which $1.O.OS n11I11011 1S dUe in fLltilt'e years and $.45 million, is due currently. • The $1.74 million of `Xnvcstlnents in Capita] Assets, Net of Related Debt' describes the portion of Net Assets that represents the Current llet bOOlt Vahle of the Agency's capita( assets, less the outstanding balance of any debt issued to finance these assets. • Restricted net assets total $10.74 million, of which $3.00 million may be Lrsed only for capital projects, $7.2.0 million is restricted for low and moderate income housing purposes, and $.54 million may be used only for debt service, `.l'he restrictions on these fiords were placed there by outsidcl•s and ca1111ot be changed by the Agency. • Um•estricted net assets are the part of net. assets that can be used to trance day-ta-day operations without constraints established by debt covenanCs or other legal reduirements or restrictions. The Agency had $(4.2G) million of unrestricted 11et assets at June 30, 2008. This dei7cit is a result of the $11.75 million in long-term debt proceeds, 1vhich are deducted from fiord balance. TOWN OF LOS GATOS REDI~VELOPMENT AGENCY MANAGEMENT'S DISCUSSION AND ANALYSIS Changes in GovernraaentaJ NetAssets The Statement of Activities presents p-•agram revenues and expenses and gene-•al revenues in detail All these are elements in the Changes in. Governmental Net Assets summarized below: Table 2 Cl-anges in Governmental Net Assets (In Millions) Revenues Ger~errtl Revenues rrrarl Ti•rcrzsfers: Propet•ty Tax Increments 1`itter~est Tr•ruasfer:s to Towra of Los Gtttos Total Revenues Activities: Fatracitorts /Progr~uaas Redevelopment Projects Pass~through payments >(nterest and Fees Total Government Activities zoos zoo? $ 8.07 0.90 (4.98) $ 3,99 $ 7.42 0.81 $ 8.23 $ 2,07 $ 1.18 3.21 2.90 0.84 0.73 6.12 $ 4.81. Cl-ange iz- Net Assets $ (2.13) $ 3.42 As Table 2 above shoves, $8.97 million (100%) of the Agency's 2008 Govermnental revenue is general revenges such. as taxes and interest. General revenues ace not allocable to programs. Gene-•al revenues are used to pay for the net cost of governmental programs. During tlac year the Agency transferred $3.58 million, net of accumulated depreciation, in infiastracture assets to the Town that were purchased using redevelopment resources since will be owned and maintained by the Town. The total transfer of $4.98 million includes current year capital outlay reported in the Agency's redevelopment ft~nd. 7 TOWN OF LOS GATOS RE~EVELOI'MENT AGENCY MANAGEMENT'S DISCC~SSION AND ANALYSXS Net Reveaaire (expense) of Govea^naaaental Activrta.'es Table 3 presents the net (expanse) or t•evenue of each. of the Agency's governmental activities, including interest on lang~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} Zoos 2007 Redevelopment Projects $ (2;07) $ (L18) Property Tax Increments. (3.21) (2.90) Interest (0.84} (0.73) Totals $ (6.12). $ (4.81) 'I'PIE AGENCY'S FUND FINANCIAL STATEMTNTS Table 4 below summarizes Governmental Activity and balances at the fitnd level: Table 4 Financial ftighligbts .rt Fund Level (In Millions) Governmental Fund 2008 2007 Total. Assets $ 21.48 $ 22.60 Total Liabilities 5.19 7.42 'Total I'rmd Balances 16,29 15.18 Total Revenues. 8.97 8.24 Total Expenditures 7,86 6.01 Total Other financing Sources {Uses} - .. Analyses of Majot• Governmental Funds Redevelopment Fund Accounts for activities of the Redevelopment ngency of the Town and the related program tax revenues. This fund encompasses three core fiuictions: Redevelopment Agency administration, Capital Project development and implementation, and the implementation of the Economic Vitality Program. 8 TOWN OF LOS GATOS REDEVELOPMENT AGENCY MANAGEMENT'S DISCTI;~SION AND ANALYSIS Housing Set t~side 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. Certificates of Participationx F2rrad 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 fiuid the key infrastructure projects in tl~e Downtown redevelopme~rt area:. At June 30, 2008, the Agency's debt comprised: June 30, 2008 ,Tune 30, 2007 Balance Balance Goverrzmer~tActivrty Debt (In Millions). (In Millions) 1992 Certificates of Participation $ 0.$9 $ 1.08 2002 Certificates of Participation 9.61 9.85 Total X.,ong "Perm Debt $ 10.50 $ 10.93 ECONOMIC Oi7TLOOK AND MAJOR INITL4TIVES The economy of the Agency and its major initiatives are discussed in detail in the. Letter of Transmittal in the Town of Los Gatos' C~mprehensivc Annual Financial Report for the fiscal Ycar Ended .lone 30, 2008. CONTACTING TH7i; AGENCY'S FINANCIAL MANAGI+;MENT These Financial Statements are intended to provide citizens, taxpayers, investors, and creditors with a generat overview of the Agency's finances. Questions about. this Report should be directed to the hinance Department, at 110 East Main Street, Los Gatos, CA 95030, Basic Financial St.itements TO'UVN OF LOS GATOS REDEVELOPMENT AGENCY STATEMENT OF NET ASSETS JC7NE 30, 2008 ASSETS Cash and investments Restricted. cash and inveshn eats Accounts receivable Capital assets (net) Total Assets LI.A BTLITIES Accounts payable Interest payable Unearned revenue Passthrottgh obligations Advance li•om Town of Los Gatos General Fund Noncurrent liabilities: Due within one year Due in more than one year Total Liabilities NET ASS)CTS lttvested in capital assets (net of related debt) Restricted for: Redevelopment projects Low income housing Debt service Unrestricted Total Net Assets See accompanying notes to financial statements G overumenta I Ac:tivitie¢ $ 19,456,682 1,49 4,91 G 526,266 2.0,44.0.10 $ 24,121,874 $ 294,900 201,042 18 5,121 3 ,210,9 34 1,50 0,000 44 5,0 00 10,05 5,0 OU $ 15,891,997 $ [,754,010 2,997,77G 7.,19 8,5 00 544,4 89 (4,264,898). $ 8,229,877 t0 TOW N OF LOS GATOS REDEVELOPMENT AGENCY STATEMENT OF ACTIVITIES FOR TIIE FISCAL YEAR ENDED JUNE 30, 2008 Program Expenses: Redevelopment Passthrough payment Interest and fees Total Program Expenses Net Program 1licom a (Expense) Cienerai Rcvenues and Trans['ors: General Revenues: Tax allocation increment Interc;st income Transfers to the Town ofLos Gatos Total General Revenues and Transfers Chauge in Net Asscts Net Assets ~ Beginning Nct Assets -Ending See acca-npauyitig notes to financial statements Governmental Activities $ 2,069,275 3,210,934 83 $, 967 6,119,.176 (6,119,176) 8,072,]76 897,968 (4,984,824) 3.,985,320 (2,133,856) 10,363,733 $ 8,229,877 1t TOWN OF LOS GATOSRED~EVELOPIYIENT AGl;NC'Y GO'VERNMENT'AL FUNDS BALANCE SHEET JUNE 30, 2008 ASSETS Cash and investments available for operations Restricted cash and investments Accounts receivable TOTAL ASSETS LIAL'ILITIES Accounts payable befen•ed revenue Advurees finnrTowu of l.as Gatos General Fund Passthrough obligations TOTAL LIAB1L11'TES FUND BALAN CE S Reset'ved for bebl sewice Redevelo ptnent projects Low and moderate income housing Unreserved, designated for: Debt service 'TOTAL P[JND BALANCES '1 OTAL LIABILI'11F,5 c4c, rUND BALANCES DEBT 5ER VI CE CAP ITAL PROJECT FUNDS FUNDS Total Housing Ce-tificates of Government Redevelopment Set-Aside Par•ticipatian Runds $ 2,090,100 $ 6,926,752 $ 10,439,830 $ 19,456,682 950,427 - 544,489 1,494,916 - 462,950 63,316 526,266 $ 3,040,527 $ 7,389,702 $ ].],047,635 $ 21,477,864 $ 42,751 $ 6,081 $ 246,068. $ 294,900 - 185,121 - I8S,121 - - 1,500,000 1,5D0,000 - - 3,210,934 3,210,934 42,751 191,202 4,957,002 5,190,955 - - 544,489 544,489 2,997,776 - - 2,997,776 7,198,500 - 7,198,500 - - 5,546,144 5,546,144 2,997,77b 7,198,500 6,090,633 16,286,909 $ 3,040,527 $ 7,389,702 $ 11,047,635 $ 21,477,864 See accompanying notes to financial statements 12 TOWN OF LOS GATOS REDEVELOPMENT AGENCY RECONCILIATION OF THE BALANCE SHF,ET TO TFIE STATEMENT OF NET ASSETS JUNE 30, 2008 Fund .Balances _ Governmental Funds Amounts repat~ted for governmental activities in the Statement of Net Assets are different from those reported in the Govet•nrnental Funds because of the Capital assets .(net) used in governmental activities are not cLU•rent assets ar f nancia[ resources and therefore, are not. reported in the Governmental Funds Balance Sheet. Capital assets Accumulated depreciation Inlerest payable on long-term debt does not require the use of cus•rent financial resources and, therefore, are not reported in the Governmcnta[ Funds Balance Sheet. $ 16,28G,909 $ 4,OG7,708 (1,423,G98) 2,G44,010 Long-term liabilities, including bonds payable, at•e not due and payable in the current period and, therefore, ate not reported in the Governmental Funds Balance Sheet Certificates of participation Net Assets of Governmental Activities See accompanying notes to financial statements (201,042) (1.0,500;000) $ 8,229,877 13 TOWN OF LOS GATOS REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES; AND CHANGES IlV FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 DE)3T SERVICE CAPITAL PROJECT FUNDS FUNDS Total Housing Certificates of Government Redevelopment Set-Aside Participation Funds REVErIUF..S Tax allocation increment $ ~ $ - $ 8,072,176 $ 8,072,176 Interest income 138,569 312,963 446,436 897,968 Total Revenues 138,569 312,963 8,51.8,G(2 8,970,144 EXPENDITURES ConununityDevelopment 603,811 1,285,877 77,894 1,967,582 Capital Outlay 1,403,903 - - 1,403,903 Passtlnough payment 3,21.0,934 3,210,934 Debt service: Principal payments - - 430,000 430000 Interest ar~d fiscal charges - - 851,765 851,765. Total Expenditures 2,007,714 1,285,877 4,570,593 7,864,184 lxcess (Deficiency) o1'Revenues over Expenditures (1,869,145 (972,914) 3,948,019 1,105,960_ __. OT11ER FINANCING SOURCES (USES} Transfers in 550,000 1,614,435 - 2,164,435 Transfers out - - {2,.164,435} (2,164,435) _ `Total Other Financing Sources (Uses) 550,000 1,614,435 (2,164,435) - Net Changes in Fund Balances {1,319,145} 641,521 1,783,584 1,105,960 Iieginningfiuldbalanccs 4,316,921 6,556,979 4,307,049 15,180,949 Ending fund balances $ 2,997,776 $ 7,198,500 $ 6,090,633 $ 16,286,909 See accotnpanyitlg notes to tu~anciai statements 14 ~r 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, 2008 The schedule below reconciles the Net Changes in Fund Balances repotted on the Governmental Funds Statement of Revenues, Expendituures, and Changes in Fund Balances, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Assets of Govermnental Activities reported. in the Statement of Activities, which is repotted on the full accrual basis. Net Changes in Fond Balances -Total Governmental Funds $ 1,105,960 Amounts repotted for governmental activities in the Statement of Activities are different from thosa repotted in the Statement of Revenues, Expenditures, and' Changes in Fund Balatces because of the following; Governmental funds t•epott capital outlays as expenditures. I-Iowevet•, in the statement of activities the cost of those assets is capitalized. and allocated over their estituatcd useful [ivies and repotted as depreciation expense, This is the amount by which capital outlays exceeded depreciation in the current period. Depreciation expense is deducted from the fund balance {101,693) Transfer of capital asset from the Agency to the Town are reported in the Statement of Activities, however, they have no impact on the Statement. of Revenues, Expenditures, and Changes in Fttnd Balances. (3,580,921) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. 'Phis amount is the net effect of these differences in the treatment of long-term debt. Repayment of debt principle is added hack to fund balance 430,000 The amounts below inchtded in the Statement of Activities do not provide (ar require the use of) current financial resources and therefore arc not repotted as revenue or expenditures hi governmental fiutds (net change); Interest payable i 2,798 Government Wide Changes in Net Assets $ (2,133,856} Sec accompanying notes to financial statements 15 Notes to Fiziancial Statements TOWN OF LOS GATOS REDEVELOPMENT AGENCY NOTES. TO p'1NANCIAL STATEMENTS Y, DESCRIPTION Off' 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 far any of its cotpot•ate 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 ofthe Loma Prieto Earthquake in 1989 and the need to rebuild existing infi•astri.tcture. The Redevelopment Agency area encompasses approximately 440 acres in and around Downtown Las Gatos, which includes retail and residential arras, lodging, schools, and main traffic thoroughfares. Projects. such as street and utility reconstruction, parking, streetscape and civic improvements were called out in the plan. As part of the Redevelopment Plan, the Agency entered. into agreements with variocis taxing authorities, which rewired the Agency to pass through portions of incremental property taxes to each taxing authorities. Expenditures for these pass-through agreements ai1•tounted to $3,210,934 for the year ended June 30, 2008. As the Town is financially accountable for the Agency, the Agency is considered a COTnpoilent Llnlt of the 'Town, As such, the. Agency is reported as part of the :l'own in the basic financial statements of the 't'own. 2. SIGN~`ICANT ACCOUNTING POLICIES Basis of Presentation The Agency's Basic Component Unit pinaneial Statements are prepared in conformity with accounting principles generally accepted in the rh~ited States of Ame-•ica, 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. Gouernnzent-i•vide Stalei~zerats -The Statement of Net Assets and the Stateixicnt of Activities include the financial activities of the overall Agency. Eliminations have been made to minimize the effect of interfitnd of activities. Governmental. activities are. generally financed through taxes, itrtergovernmcntal revenues, and. other nonexclsange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each fiu~ction of the Agency's activities. Direct expenses are those that are specifically associated with a program or fiuictioil gird, therefore, are cleai•Iy identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods IG TOV4rN OF LOS GATOS REDEVELOPMENT AGENCY' NOT)aS TO FINANCIAL, STATEMENTS 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 financing the acquisition or construction of capital assets. Revenues that are not classified as program. revenges, including all taxes, are presented as ge-leral revenues. Fund ~'r'r7crrrciad Statera7er7ts ~ The fiord financial statetllents provide information about the Agency's fluids. 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 a-•e aggregated and reported. as nonmajor funds. Maior Funds GASH Statement 34 defines major fields and requires the Agency's major governmental fields to be identified and presented separately in the fund financial statements. All other fiends, called nonmajor funds, are combined, atul reported in a single column, regardless of their fund-type. Major funds are defined as fiends that have assets, liabilities, revenues or ex}7etldlttl]'CSICXpeIlSeS equal t0 tell percent of their fund type total and five percent of the grand total 'Fhe General Fund is always a major fund, The Agency may also select other funds it believes should be presented as major fonds. The Agency reported the foilorwing major governmental fields in the accompanying financial statements: Redeveloprnenl Fund -This field is used to account for financial resources. used far the acquisition or construction of major capital facilities. H~zrsr.'rzg Set aside Fzrr~d -- This fund is used to account for twenty percent housing set aside from the tax increment proceeds. C'er°tiftcates of Pcrr^ticiputiorr. I'zend _ 'Phis. 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 Accountin The government-wide financial statements at•e rcpot•ted using the ecor~ornic r•esucrc°ces rrzeaszrr^enzent focus and the fitll acct^acal basis of accounting. Revenges are recorded when ear^ned and expenses are recorded at the time liabilities are incur^~°ecl, regardless of when the t•elated cash flows take place. Govet'n-nental fields are reported rising the cur•r°ent•~rrccncial r°esozrr°ces measurement focus and the rzzodifzed crccr^zral basis of accounting. CJnder t{lis method, revenues at•e recognized 17 TOWN OF IlOS GATOS REbE'VELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS when nzeaszcrable and av~rilaUle. The Agency considers al[ revenues reported in the governtnetltal fields to be available if the revenues ace 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. Governnlentaf capital asset acquisitions are reported as expendttzrt^es in governmental fields. Proceeds of govet•nnlental long-terns debt atld acgLrisitions under capital leases are reported as other fi.r~ancing soza^ces. Non-exchange transactions, its which the Agency gives or receives value without 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, intergovernmental 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 6e available to finance program expenditlu•es. The Agency's policy is to first apply testricted grant resources to such programs followed by general revenues as necessary. Casb and Investments The Agency's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments ifthcy at•e liquid. The Town's investment policy and California Government Code permit investments in obligations of YJ.S. 'Treasury and its agencies, convncrcial paper, banker's. acceptances, repurchase agreements, certificates of deposit, medium term notes, passbook savings account demand deposits, mutual fields and the State of California Local Agency Investment Ftrnd. ilivesttnents for the Agency are reported at fair value. The value is detcrtnined Uased upon mat•kctclosing prices. Intez•fund Receivables and I'ayables Balances representing lending/borrowing transactions between funds outstanding at the end of the fiscal year are reported as eithet• "due to/due from other funds" (amounts due wtthm one year}, "advances to/from other fertlds" (non-current portions of interfi~nd (ending/borrowing transactions), ot• "loans to/from other funds" (long-term lending/borrowing transactions as evidenced by loan agreements), Advances and ]oans to other funds are offset by a fund balance t•eserve in applicable Governmental Funds Co 18 TOWN Op' LOS GATOS TtCD~VELOPMENT AG);NCY NOTES TO FTNAI~ICIAL STATEMENTS indicate they are not available foe appropriation, and are not expendable available financial resources. Long-Term C}Uli~ations In the government~wide financial statements long-term debt and other long-term obiigatians are reported as liabilities in the Statement of Net Assets. Ta:~ Tncrement The Agency has no direct taxing power and does. not have the power to pledge the general credit or taxing power of the 't'own, the State of California or any political subdivision therepf. However, California's health and Safety Code al[o~vs redevelopment agencies with appropriate approvals. of the local legislative bodies to recover costs oI' 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. P~•operty 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 tact-rred and the fir-al disposition value, which is significantly affected by various use restrictions. For lnancial statement presentation, this property is stated at the lower of estimated cost or net realizable value. Badnets and Budgetary Accounting Prior to June I, the Town Manager submits to the Town Council a proposed operating budget far the upcoming fiscal year. The proposed budget includes a summary of proposed expenditures and forecasted revcm-es ofthe Agency's governmental fiends. The Town Council adapts the budget by rune 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. The actual results of operations are presented ni the combined statement of revenues and expenditYU•es -budget and actual in accordance with the budget basis to provide a meaningful comparison of actual results to the buc[get. 19 TOWN OF' LOS GATOS RET~EVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Expe~ulitures over Appropriation For the current fiscal year, actual expenditures exceeded budgeted amounts are as follows; Fund Ex enditure Cate or Excess Ex endittu~e Ex ianation Housing. Set-Aside Community $ 809,457 The additional. Fund development expenditures amount had been approved by the Council but no amended bud et was ro osed, Certificates of. 'Community $ X170,279 Under budgeted pass Pa-•ticipat'ton land development, Pass through payments due to through payment, and increment in pass interest and PiscaL through receipts, charges Under budgeted interest payment due to interest expenses being budgeted on cash basis. 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 fnancial statements in conformity with generally accepted accounting principles, Actual results could differ from those estimates. 3. CASH AND 1NVTSTMENTS Cash `Che Agency holds its cash in the Town. of Iaos Gatos (the "Totivn"}• `['he `Town maintains a cash and inveshnent pool and allocates interest to the various funds based upon the average quai~erly cash balances, Information regarding credit risk and collateral requirements, as applicable, can be found in the Town's financial statements. za TOWN OF LOS GATOS REIYEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS During the year, the Town determined that the infrastructure assets reported by the Agency will be owned and maintained solely by the Town. Accordingly, the Agency has transferred infi•astrttettu•e assets in the amount of $3,580,921, net accumulated depreciation of $757,775, to the Town. The total transfer of $4,984,824 includes cu-•rent year capital outlay reported in the Agency's redevelopment fund. Depreciation expense was $101,693 for the fiscal year ended June 30, 2008. S. INTERFUND TRANSACTIONS Aclvctnees fi^on7 the Tonvn -The Town aclvanecd $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 fitnds at•e available. For the fiscal year ended 7ttne 30, 2008, tine Agency paid the Town $150,000 in interest on the advance. 6. LONG-TERM OBLIGATIONS 1992 Certificates of Participation (COPs The Town issued Certifi.eates 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 finance 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 COYs are similar to bond debt, and they allow investors to participate in a share of guaranteed payments. Because they are similar to debt, tine present value of the total of the payments to be made is recorded as long-tet•m debt. Principal payments are due annually on August 1, which interest payments payable semi-annually on February 1 and August l , To assist the Town in paying the cost of acquisition arnd construction of the Parking Lot 4 Project, the `I'owa and its Redevelopment Agency entered into a Reimbursement Agreement. Undet• this agreement, the Agency will use available net tax increment revenues resulting from the Project's effect on land values to repay tine 'Town far all lease payments anode by the `1"own to the Agency unclce the. lease agreement for the Project. Net tax increment revenues are all taxes allocated to and paid into the Redevelopment Agency Capital Projects Fund fot• the Project At•ea. 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. Itn addition, the Parking 7_~ot 4 Project, 4vhich was constructed with proceeds of the COPS, has been included in the Agency's financial statements. For the ftscal year ended June 30, 2008, lease income and reimbursements in the amount of $930,717 offsets in the Certificates of Participation Fund and is eliminated from the Uoverninent-Wide Statement of Activities. 22 TOWN OI' LOS GATOS REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Investments The Agency voluntarily participates in LAIF, regulated under Section I6429 of the State Government Code. LAIF allows local governments such as the Agency to pat•ticipate in a Pooled Money Investment Account managed by the State Treasurer Office and oversewn by the Pooled Money Investment Board anti State Treasurer investment committee. A Local Agency Investment Advisory Board oversees LAIF. The fair value of the Agency's position in the pool is the same as the value of its pool shares. The total amount invested by all public agencies in LAIF, as of June 30, 2008, was approximately $70 bill ion. Of that amount, 85.3% is invested in non-derivative ftnancial products and 1.4.7% in structured notes and asset- backed securities. The average mattu•ity for the investment in LAIF is 212 days. As of June 30, 2008, the Agency's investment in LAIF was $262,91 S, Information regarding investment risks related to credit risk, concentration of credit risk and interest rate. risk earl be foutld in the Town's financial statements. Under GASB 3I, the Agency must adjust the carrying value of its investments to reflect their fait• value at each rascal year end, and it must include the effects of these adjustments in income for that rascal year. 4, CA>PX1"AL ASSETS The following is a summary of the Agency's capital assets: Buildings Infi•astrti cttu'c: Parking Lots Alleys Streets Balance at June 30, 2007 Additions $ 4,092,474 $ Deletion / Balance at Transfer Junc 3D, 2008 $ 24,766 $ 4,D67,708 Total capital asset Less accumulated depreciation: Buildings Parking Lots Alleys Streets Total accumulated depreciation "Total net capital assets 660,392 - 660,392 - 400,272 - 400,272 - 3,253,266 - 3,253,266 8,406,404 4,338,696 4,067,708 1,322,005 101,693 ~ 1,423,698 S,19G - 5,196 - 19,085 - 1.9,D8S 733,494 - 733,494 - 2,079,780 101,693 757,775 1,423,698 $ 6,326,624 $ ({01,693). $ 3,580,921 $ 2,644,01.0 21 TOWN OF LOS GATOS REDT~VELOPMENT AGENCY NOTES TO FINANCIAL. STATEMENTS The California Govermnent Code -•equires these fiords to be invested in accordance with Town ordinance, bond indentures, or State statues. All these fi-nds have been invested as pe-•-nitted unde-• the Code. 7. NET ASSETS AND FCJIVD BALANCES Net Assets are the excess of all. the Agency's assets over all its liabilities, regardless of fiuid. Net Assets are divided into three captions under GASB Statement 34. These captions apply only to Net Assets, which is determined. at the Govet•nznent-wide Icvel, and are described below; 1'nvested 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 patties, governmental regulations, laws, or other restrictions which the Agency cannot unilaterally alter. These principally include debt se-•vice requirements, and redevelopment fiords restricted to low and moderate income purposes. Unrest°ieted describes the portion of Net Assets which is not -•estricted to use. Xteservatioris of T~"uzzd Bala~zces -Fund balance. consists of reserved and tulreserved amounts. Reserved fiord balance represents t11at portion of fund balance that has been appropriated fot• expenditure or is legally segregated for a specific future use.. As of June 30, 2008, portions of fiord balance had been reserved because of the following; Capital Outlay crud Redevelapnaent Prgjects 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 fiends that are restricted for debt service payments. L~1v and Moderate Inca»ae Hoaising reserves reflect the cash balances restricted for So4v and moderate housing activities. 24 SnPplennentaiy Information TOWN OF LOS GATOS REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS 2002 Certificates of Participation (COPs) The 2002 Certificates of Participation financing parallels the 1992 issue. On August 1, 2002, the Town. and the Los Gatas Redevelopment Agency issued $10,725,000 in 2002 Certificates of ]'anticipation to finance infi•astructtu•e improvements in the downtown redevelopment area. The Town has pledged lease payments of real pnaperty and facilities comprised of the Parks and Public Wanks Service Center and BaseUall Field, as well as Parking Lot No, 1, 2, and 3, as collateral for the repayment of the Cet•tifieates. The COP principal payments are due annually on August 1, with interest payments payable semi-annually on February 1 and August 1. A summary of general long-term obligations accotutt group transactions for the year ended. June 30, 2008 follows: Original [3alauce Balance Issue Jttne, 30 June, 30 Current Amount 2007 Additions Retirements 2008 Porliou 1992 CertiGcaies of Participation, S-4%, due 8/1/2012 $ 2,960,000 $ 1,08S,OD0 $ - $ 195,000 $ 890,000 $ 205,000 2002 Certificates of Participation, Series A, 2.5-5%, due 8/3!2031 10,725,OOD 9,845,000 - 235,000 $ 9,610,000 240,OOD Total Long-'Penn DeUt $ 13,685,000 $ 10,930,000 $ - $ 430,000 $ 10,500,000 $ Q4S,000 Future debt service reduirements for general long-term debt with stated maturities are as follows at June 30, 2008: For the Year Governmental Activities ~ Ending June 30, 2008 Pt•incipal Interest 2009 $ 445,000 $ 479,137 2010 465,000 460,975 2011 435,000 441,325 2012 505,000 420,276 2013-2017 1,485,000 1,902,929 2018-2022 1,835,000 1,539,706 2023-2027 2,320,000 1,040,163 2028-2032 2,960,000 384,250 Total $ 10,500,000 $ 6,668,761 The Agency must maintain required amount of cash and investments with the trustee under the terms of the COPS issue. These fiords ane pledged as reserves to be used if the Town fails to meet its obligations tinder the COPS issue. These reserves totaled $944,342 at June 30, 2008. 23 r TO~V'N OF LOS GATOS REDEVELOPMENT AGENCY SCHEDULE OF REVENUES, E~'ENDXTURES AND CHANGES IN FUND BALANCE. BUDGET AND ACTUAL (GAAP) REDEVELOPMENT FUND CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2008 REVENUES I~~terests Total Revenues EXPENDITURES Current: Community development Capital outlay Variance Favorable Budget Achaal (Unfayot~ble) $ 50,000 $ 138,569 $ 88,569 50,000 138,569 88,569 661,480. 60 3,811 57,669 1,409,405 1,403,903 _-_- _ -- -5'5.02 - Total Expenditures 2,070,885 2,007,714 63,171 E;ccess(DeJ'iciency)ofRevenuesO~erExpenditi.~res (2,020,885} (1,869,145) 151,740 OTHERFLNANCING SOURCES (USES) Trtu~s['ers in 550,000 550,000 - Total Other Financing Sources {Uses) Net Change in Fund Balance Fund Balance- Begitwing 550,000 550,000 - $ {1,470,885) (1,319,145} $ 151,740 4,3 } 6,921 Fttnd Balance- Ending $ 2,997,776 25 r TOWN OF LOS GATOS REDEVELOPMENT AGENCY SCHEDULE OF REVENUES, EXI'ENDTI'URES AND CUANGES IN FUND BALANCE BUDGET AND ACTC7AL (GAAP) HOUSING SET ASIDE FUND FOR TIIE FISCAL YEAR ENDED JUNE 30, 2008 REVENUES Interest Total Revenues EXPENDITURES CL1Trellt: Comn~unily development Variance Favorable Budget Actual (i.hLfavorable) 200,000 312,963 112,963 200,000 312,963 112,963 476,420 1,285,877 (809,457} Total Expenditures 476,420 1,285,877 (809,457) Excess (Deficiency) ofRevertues Over Expenditures (276,420) (972,914) (696,494) OTII}sR FINANCING SOURCES (USES). 'I'r~ulsfers in 1,476,800 1,614,435 137,635 Total Other Financing Sources (Uses) 1,476,800 1,614,435 137,635 Net Change in Fund Balance $1,200,380 641,521 $ (558,859) Fend Balance- Beginning Fund Balance -Ending 6,556,979 $ 7,198,500 2G TOWN OF LOS GATOS REDEVELOPMENT AGENCY SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES TN FUND BALANCE - BUAGET AND ACTUAL (GAAP} CERTIFICATES OF PARTICIPATION FUND FOR THE FISCAL YEAR ENDED ,TUNE 30, 2008 REVENUES Ptopetty Tax Interest Total Revenues EXPENDITURES Convnunity development Pass through payment Uebt service: Ptinci pat Interestand fiscal charges Total Exp endit ures Variance Favotable Budget Actual (Unfavorable) $ 7,384,010 $ 8,072,176 $ 688,166 309,000 446,436 137,436 7,693,01.0 8,S 18,612 825,602 72,200 77,894 (5,694) 2,941,640 3,210,934 (269,294) 430,000 430,000 - 650,780 851.,765 (200,985} 4,094,620 4,570,593 (470,279) Excess {Deficiency) ofRevenues Over Expenditures 3,598,390 3,948,019 355,323 OTHER. rINi1NCING SOURCES (USES) Transfers oUt (2,026,800) (2,164,435)._ Y.. (137,635) Total Other Financing Sources (Uses) Net Change in rand Balance Fund Balance -Beginning (2,026,00) (2,164,436} (137,636) $ 1,571,590 1,783,584 $ 217,688 4,3 07,449 Fund Balance - Lading $ 6,090,6.33 27 Othe~• Independent Andrtor's Reports C. ~. IJHLE~BE~.G LLP CERTIFIED PVI3 LIC ACCOUNTANTS & CONSULTANTS PEf3riY H. CHEN , C.P.A. JEFFREYJ. IRA,.C.P.A. KATHERINE GHAO, C.P.A. JULIE 7 LIN, C,RA. REPORT ON INTERNAI, COiVTROr. OVER FINANCIAT, REPORTING AND ON COlYII'LIANCE AND OTHER MATTERS BASED ON AN AUDIT OT FINANCL4L STATEMENTS PERFORMED W ACCORDANCE WITH GDYERNItIENT A UDITING STANDARDS Members of the Doard of the Town of Los Gatos Redevelopment Agency Los Gatos, California We have audited the basic fmaneial statements of the Tawn of Los Crates Redevelopment Agency ("the Agency"} as of and far the year-end June 30, 2008, and have issued our report thereon dated November 28, 2408. 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 Crovern»aent Auditing Standards, issued by the. Comptroller General of the United States. Internal. Control over, Firaaractal Reporting In plamiittg and performing our audit, we considered the Agency's internal control over financial reporting as a basis for designing out auditing procedures for the purpose of expressing our opinion on the basic financial statements, bnt not £or the purpose of expressing an opinion on the effectiveness of the Agency's intentai control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting, A control. deficiency exists when the design or operation of a control does not allow management or emplcyees, in the normal. course of performing. their assigned functions, to prevent or detect misstatements. on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Agency's ability to initiate, authorize, record, process, or report' financial data reliably in accordance with generally accepted accounting principles such that there is mare than a remote likelihood that a misstatement of the Agency's Financial statements that is more than iuconsequeniialwtll not be prevented or detected by the Agency's internal control. A material weakness is a significant deficiency, or combination. of significant deficiencies, that results in more than_ a remote likelihood that a material misstatement of the Financial statements will not be prevented or detected by the Agency's internaE control. Our consideration aF the internal oontrol over financial reporting was for the limited purpose described. itt the First paragraph of this section and would not necessarily identify all deficiencies. iu internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over finaneialreportingfhat we consider to be material weaknesses, as defined above, 333 Twin Dolphin Drive, Sulte 230 • Redwood City, C:A 94065 • Phone (GSO) $02.8GG$ • Fax (650) SU2-o$66 4117 Clipper Court • Fremont, CA 94538 • Phone (S10) 770-8680 • Fax (510} 77D-8685 1230 Midas Wxy, Smite 250 • Sunnyvale, CA 94085 • Phone {408) 331-6242 • Fax (40$) 331-6243 E-Mail ~ infoC cbnrcpa.cnm • wvvwcgucpa.com Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, we performed tests of its. compliance with ceztain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which oould have a direct and material effect an the determination of financial statement amounts. However, providing an opinion an compliance with those provisions was not an objective of our andit and, accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Aurliting Standards and which are described in the accompanying schedule of findings and questioned costs as items 08-O1. The Agency's response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs, We did not audit Agency's response and, accordingly, we express no opinion on it This report is intended saloly for the informafion and use of the Mayor, members of the Agency beard members, and the State Controller's office, is not intended to be„and should not be used by anyone other than these specified parties. December 5, 2008 Redwood Cify, Califotmia 29 FINDINGS AND RECOR'iMENDATIONS TOWN OF LOS GATOS REDF~VELOI'MENT AGENCY SUMMARY OF COMPLIANCE FINDINGS YEAR ENDED JUNE 30, 2008 0801 Pursuant to I-Iealth and Safety Code Section 33334.I2(g), "excess surplus" means an unexpended and >.uieneumbered amount in an agency's Low and Moderate Ineanl Dousing Fund that exceeds the greater of, one million dollars ($1,000,000}, or tl' aggregate amount of tax increment deposited into the Low and Moderate h]COn1 housing Fund during tale agency's preceding four fiscal years (pursuant to Sect'tor 33334.2 and 33334.6). It •vvas determined that. the Los Gatos Redevelopment Agenc retained an excess surplus of approximately $1,79S,14S for the fiscal year ended June 31 2008, based on the aggregate amount of tax increment deposited in the Law an Moderate Income Housing Fund. Recommendation: Pursuant to Health and Safety Code Section 33334.12(a){1)(B), r~ recommend that the Los Gatos Redevelopment Agency encumbers or expends the exce; surplus. The funds should be encumbered to cat•ry out activities consistent with redevelopment agency as defined in Health and Safety Code Sections 33334.2 ar 33334.3. Client's response: The agency is in the process of carrying out activities to encumber tl funds. 30 'S'OWN OF LOS GATOS RE)~EVELOPMENT AGENCY SUMMARY OF PRIOR YEAR COMPLIANCE FINDINGS YEAR ENDED TUNE 30, 2007 07-01 Pursuant to Health and Safety Code Section 33334.12(8), "excess surplus" means any unexpended and unencumbered amount in an agency's Low and Moderate Income Housing Fund that exceeds the greater of: one million dollars ($1,000,000), or the aggregate amount of tax increment. deposited into tl~e Low and Moderate Income Housing Fund during the agency's preceding four fiscal years (pursuant to Sections 33334.2 and 33334.6). It was determined that the Los Gatos Redevelopment Agency retained an excess surplus of approximately $1,037,474 for the fiscal year ended June 30, 2007, based OIl the aggregate amount of tax increment deposited in the Low and Moderate Income Housing Fund. Re~omrnendation; Pursuant to Health and Safety Code Section 33334.12(a)(1)(B), we recommend that the Los Gatos Redevelopment Agency cnctunber the excess surplus within two years. The funds should be encumbered to carry out activities consistent with a redevelopment agency as defncd in Health and Safety Cade Sections 33334.2 and 33334.3. Crrr•rerrt Status: The agency is still in the process of carrying out activities to encumber the funds, see current year findings 0~-01. 3t ~ ~ Cf d ~ 1 ~ N ~ d " d C E, L] ~ ~ ~ ~ pp ~ e~ ~z ~s 'n +: m C W C , ~ ~ ~ ~ ~ ~ ~ y V i ~ O iH ~° a ! 0 C ~ ~ C7 ~ ~°m ai ~ um i ~ ~ ; N ~ 'a W ~ ~ °~ ~ I b) NIL L SS N ~ Y {..- f ~ ~ ~ N ~ E ,. '~ .N Q n ~° es °' ~ F - C m u. win z ~ i r- ~ C U O , ,N i c ~ ro ~ .N ~ ~ L ~ i Q ~ U) a~ ~ , ~ o ~0 w~~.a O o C. =~, E a ~ ~- °u~ a. o ~ `~ ~ S7 r N ~ V ,p O (L^ Q N ~ y ~ ' C1 ~ ~ y ¢ ti ~ 'L ro ~ ~ 4+ ro ~' ~ ~ ~ C ' ~, ~ ' I ~ I . ro ~ N r ~ ~N ; i ~ i .. ~ ~ . C11 ~, ~ : e ~ I W I C ~ ~ yu i ifl ~+ N ,a M dace a ~ ~ I~ ~ ~ N j ~ ro a ~ i ai N 'a 4 ,~ U ~ o~ M C C ++ , fD d ~.: ' ro , ' Oi C ~ y M «~ , m £ U .~ ;a a ' y C C C N ~ ~ to C 1N ~ ~ i . ~ 61 ro i ~ 47 y .~ ~o N (~] ~ ~ ~ X Ill N i d d ro u N C ro C d m m m R. O a` C N .G a .a ro N a, G O .~ a C O C N 0 N Q U y 'B C J c O Q t .. .C d O Z co 0 N' Q N r Q a~ C7 ro a ~XH~BIT B California Redevelopment Agencies - Fiscal Year 2007!2008 Status of Low and Moderate income Housing Funds Sch C Agency Financial and Program Detail LOS C/k7OS Beglnning Balance $8,556,978 Adjustment to Beginning Balance $D Adjusted Beglnning Balance $6,556,978 Total Tax increment From PA(s) $1,614,435 Total Receipts from PA(s) $1,927,398 Other Revenues not reported on Schedule A $0 Sum of Beglnning Balance and Revenues $8,484,376 Expenditure ~ Item Subitem Amount Remark Planning and Administration Costs Administration Costs $353,976 Subtota{ of Planning and Administration Costs $353,178 Subsidies from the LMIHF Other $932,700 Need to Input Subtotal of Subsidies from the LMIHF $932,760 Total Expendikures $1,285 876 Net Resources Available $7,198,500 Indebtedness For Setasides Deferred $p ;Other Housing Fund Assets Category Amount Remark Total Other Housing Fund Assets Total Fund Equity $7,198,560 2D03!1004 $1668739 200412005 $1163323 sum of 4 Previous Years' Prior Year Ending Excess Surplus for 2005/2006 $1073315 Tax Increment for 2007/2008 Unencumbered l3alance 2007/2008 2006/2007 $1516456. $4761833 $6,556,978 $1,795,145 Sum of Current and 3 Previous Years' Tax [ncrements $5,367,529 Page 1 of 2 12lD2/08 Califor~„a Redevelopment Agencies - Fiscal Year 2067/2008 Status of Low and' Moderate Income Housing Funds Sch C Agency Financial and Program Detail LOS GATOS s Adjusted E3alance Excess Surplus for next year Net Resources Available Unencumbered Designated Unencumbered Undesignated Total Encumbrances Unencumbered Balance Unencumbered Balance Adjusted for Dobt Proceeds Unencumbered Balance Adjusted for Land Sales Excess Surplus Expenditure Plan Excess Surplus Plan Adoption Date Site improvement Activities Benefiting Households Income Leyef Low Very l.ow ;Land Held for Future Development Site Name Num Of Zoning Purchase Estimated Acres Date Start date Use of the Housing Fund to Assist Mortgagors $7,198,500 $1,830,971 $7,198, 500 $0 $7,198,500 $0 $7,198,500 $0 $0 No Moderate Total income Adjustment Factors Requirements Completed ..._.. Home ~ $ f Hope $ Non Housing Redevelopment , Funds Usage +. - ...- i Resource Needs ~ LMIHF DepositslWithdrawls Document Document Name Date. • Achievements Description Custodian Custodian Copy Name Phone Source Remark Page 2 of 2 12!02!08 o ao ~~ ~ ~'+ N C ~ M ! r.' a ~ m i ~ ay y j ~ O i ~ M M ~3 O © ~ i ~ G ~ N N M ~ M ff3 C N ~ ~ ~ O ~ T N ~ S]. d ^ 1 C ~ ~ o a d `O O ~. ~ F' v O O f a ~ O Ll. ~ C i N d N N G C ~ ~ ~ OO Cfl ~ lL ! d' ~ I O ° ~ °~ n I a N a ~- ~ ~ M ~. I ' V ~ d ~ i ~ ` ~~ E° - a ~ • a ro , ~ ~ ~~ N ~ m p ~ ~ c~~a 3 a o rn~ aCh of r° en ~~ ~ 34 Em; B~ C o .. Q ' ~ .J N ~ O • c 'r+ [y ' ~n ++ D O L, ~ 'o ~ ~ ~ vY M ~ 4' ~~~ ~ w i r i t via God ~~U ~¢: ~,~~ ~ i~ C ~ v ~ c' ~ My ~ M ~ ~ ~ v ~ ~ ~ U ct d ~_ ~ r ~ w ~ 7 Yn 7 dq . ~ • ~ N ~ ~ N ~ L1. i to i Sp M~ ~ ~ t... F ., ~ d O ~ N I~- C ~ N W W W ~ 64 ~ O 4F? f- d ~ N cv ~ d w ~ ~ ~ ~ ~w u a~ r ~ c •o z o ~ .. ~ w~ ~ Ua a O 0 G N r O P d m lV d California Redevelopment Agencies- Fiscal Year 2x07/2008 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financi~l Information a~ Agency LOS GATOS Address 110 E. Main Street <~O Sox 949 Los Gatos CA 95031 Project Area GENTRAL LOS GATOS PROJECT Type: Inslde Project Area Sta#us: Active Plan Adoption: 1991 Plan Expiration Year: 2031 Grass Tax Calculated Amount Amount Amount Total %° Cumulative i Encremenf Deposit Allocated Exempted. Deferred Deposited Def. $6,072,176 $1,614,435 $1,614,435 $0 $0 $1,614,435 20.xa% $0 { Repayment $0 i Catei~ory Interest Income $312,963 Total Additional Revenue $312,963 Total Housing Fund Deposi#s for Protect Area $1,927,398 Agency Totals For All Project Areas: Gross lax Galculated Amount Amount Amount Total % Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $8,072,176 $1,614,435.2 $1,614,435 $0 $0 $1,61.4,435 20% $0 Total Additional Revenue from Project Areas: $312,963 Total Deferral Repayments: $0 Total Deposit to Housing Fund from Project Areas: $1,927,398 Page 1 of 1 121x2108 ,. _ .:.~.: O:'. :' of :: ?. ~.; .d :. ~ ~..:~,: `~(~. =' 0 ~.: o...:~_: ~.J::~_~ '.Q .' ;.:U1:; tC.,_ ~-. ,....t~,, b ;'O>;. mss: t. I ~..,,~ ;. ~;: b ,;C.; 'Q, ~~;. ; ; ~. ;p:;_ '. ~ ' `: ai: _ ': L2:' '13:. tl1 _ ;~.: ~r N o0 O M N M cp 00 W ~~~ ~~ N C M MM ..~J~ 4. v ~. ~. ( I ' ~ ~ O O O ~ •~ t ~ ~, ~i ~e i ~ I ~ a j) a'i ~I~i ~i ~~ ~~ } ~ I ~'1 ~ ~ 9 ~ ~ I ~ ~I M ~ ~ ~~ ~ ` ~~ i I a ._ G Lf3II~~~! M~ U rn, ~, ,~ ~ ,~ ~~~ ~ ` ~ 's i ~ 1 m ~~ ~ [ ~ I ~ i ro ~ ~~ >r s a. t z 7, ~ is a ;~ ,o ~ ~ Q 3 Q ~ ~ (tl M ~ ~ o £ 4. ai vro I ° I w o °O t 's ~ r c o c[ ~ o i ;` j _i O t IN u i ~.~ ~. j ~ j :® ~ m ;.,~ d E c a~ j [~ ~ d ~'' ~ z w ..~ o m V S a~ x '~ ~ ~ i% ~ i,. ~ to U to N a gq W u. to j' _ ___ _.._ ._...._..........._~. 0 0 N } u' i W II - ~ ~n I 'h(~ It L~'~~~ ~~ i ,~ 1= I, ,I ~, m ~ •I ~~ ~~r ~ a li Io m ~, i i OI CL ' C tC I ! ~ ~ f s i L Y i `y a ~ ~ I,~ ~ U< i ~ y {O O N S N ~ df N N W N L N 91 N E '~ ~~ E E E~ E~~ ~~ U ~ ~ ~ ~ ~ ~ ~ ~ ~ d `o t7 4 .~ ~hf r-I r-i r~ ~ ~ i ,' d II !imp ~ , , ~! ro I II ~~~- ~ ~, ` ~ N v t II N ~ v 4 Q N U' m +% cn a~ ! m I~ ~ I ~ N m I I l6~ ~ I. M, ~l II pJ li_I IJI I`~'t r N N N y, b in t"n U a 0 O N a ~, ro a C O t~tl l6 N ~~~~~~ C ~ , p. ip si:. :.0. N.. f,V ~. ~'' .. ~.'~: _. '.:o. ~. ®•....: Lcr `~ U :. ~ :..;~ ..~ 6 , - }'''. c. ~. ~:' ~ ...~.. ~-.__~ ~~ v _~ ~. -~ ~' ~~ a :.~ a :>a :- ;_ .~ .~:: ~:~. :_ :'d% q1 ~',fLL. .. V. ~~ ,~ vi G ~~~ ~`°` 0 ~~~ N ,N ~ Q.~ a ~ O C U N G C N ~ c U ~ .,.. c 'a o ~ o N ro ro °~ ~ m ~m~ a.~Q1, o a; ~u U lsf ~ N ~ I ~ i ICI ~ Jj~ ~ ~f I I~ I ~. a I~~ ,~ ~~ ~. ~. 1 ..~ ~_ ~, ~ a ~ ~ ~ ~ ~ 0 r ~ °~~z7 N C N C tq N ~ ~ ~ Stl w~. ~ ~_ ~ ~ y ~ it O C C ~ .ro U ro 'D l4 ,w ~ ~, Q z- '~ (U i 'O. ~ 'O C. .C W Ul v Q ~; 't7 0 ~ °. ! oo ~ m ~ ~ a> m ,ca c ~ „_. ~ o o E -a ~ ~V ~ ~~ O~ a ~~s ~ c ~. ~ ro v o^ $> > o~ o Q N a ~ c 4 ~ Ul c( N ~ ~ ~ ~ V C A ~ '~ O. 0.. ~ N ~, a~ o a U >` a~. p ~ j u~. .C ~ .~ v a •~ `~ row ° U - ~( Q: y" ~. p N C N ~ '~ N= N O. w~. ~. m ro v `Z >. m~ Q~ is E Vl m ~ a ii x°x~ ~ ~ c~u aroi o o 'n C~ R 0 0 N a m a C O ~~ c v Q O.' ,:W~..: '~''~nn ;.' .... ~:_O` :•O:i•-• ;;,d_ U .,O ~. N .~i 3.., ~ . O :: F""` ... .~ 'r '::.10 0 ~: .~ ; 0. '-.~i-~" is Ci lU ;Os!lid . , 4 ;'`~j is N : u =i.,~ Ql al~ C fl tea.. ~ :~ :aCC~ Q. ~ O G.. `.q~.. >~ ~ . ~ _ . ;: 'r7 ,'~. d..:~i. ~. ;?o: ~: :. ~~~//~:: 1 LL. i I' Q7 4 V .© n. N 0 N t6 L a •o O N lit V ,N N ~~ N ~ I~ i~~ ~~ tl I I. j ~ o , ~i ,~ ~~ Vii' ~• ~_~. ~ a °~ tl I-- I l ~ ~ ~ u. ~ Z } ~ ~ ~ ~ N ~ N O Q ,~ i ;I j i ~ I O~ II O •~ m o m m .n Q ~° Q ro Q ~ ~ d. II II Q ~l 11 2 U1 ~ ~ p N Q C d ~ ~ ~ ~ N lL ~ G C1 ~ t71 O Q "O 'C. C ~ .N C• -00 '6 'v, d y C C tl a •e ~ n a ~ E ~' ~ ~ Q z rn Q o ~ l6 N N ~ qCj u7 L N ~' ~ pEp ~ ~ ~ ~ v ~ ~J ~-U' j U N N ,''s N a. a~ Q ~ ~ ~ ~ ¢ z ¢ U 'Z7 v d °~ ~ e ~ m N o Q o n a o ~ ~ ~ g m ~~ ~ 3 a C ~- O O C N .OC C ¢ n 'C ~ .O N fn ,J ~ R N C ~ N ~ o n u n ~ 'o ~ ~ ani g N N C ~1 N U1 N v o 110. w o o ~ o ~ ~' m °- ~ o ~ ~- ~ \ a m ~ ~ k ° k w m Z O `' CO ~ C U ~ O C c. Q e-- ~ ~ V 16 O Q' PN7 ~ rNM~ LL N V M M lp ~ ~ ~ C O C (n ,C m, C n '6 O N 'O • +.. ~ m m m ~ b c y ~ ~ ~ o? o (7 ~ o N n~ v n ~, ¢ v u U y ~ ~. w -a b °1 _ ~ ~ ~ ~ Q ~ U N U N N ] D ~ n `~ ~ -oa d N ~ ~ ~ ~° ~ 0. o c Q ~ C 0 C ¢ J (j~ J~ ~ 4 'CJ ~ ~. a N ~ ~ o b P b o~ ~ .o O C N ~ O ~ ~ ~ ~ ~ .-. ~ ~ N~~~ a m~ ~ w m~ u ~n ~ ~ o ~ ~ ~ ~ ~ ~ ~ ru ~ ~ W s= N to ~ w z in a x a~ o y 0 0 C ~ {'C.r. C . ~ L 9 ~ '~ Q .. .~.! -_ U 7 C Ql 7 f~ C. ~ i `? ~ cV D 4 Q1 'C O: ~ ~ ~ ~ ~. d. ~ ~. N N N U o ~ v C Oj N~ O C ~ N 07 U tl~ N v Q7 Cl" } N; c N • to m O U N .O C~ v G Q v ~ N O N n~ ~j , m ~K ~~- o f c O7 0 ~ ++ '~ O fi+ ~ ~ 0? N a-+d ~ 'C N 'O U ~ 7 y, O ~ P p t0 Ql C t'i 7 O N N eD N~ W U d O N '06~N ~, ' y~ L~vJOONO-.~~~0 C~~O~r ~ } u } N ~ ; O Q -•. D, ~ ~ ~ L O) .N^.r -O N G r' ~ ` t1t-... Z I"' C Ul C p 0 '~ G ` C N ~ O C ~ Q ~ O ~ ~ a ftJ 'C. ~ ^ ~..? p to ~ '[7 ~ ~ L ~ C ~ ' N U C C "O U ~ 'O N R} N N cL6 O •R. ~U` m~ U1 ~t6. ~ . a -- U O~ N. E C C I/i m O~ O U ..'_. ro 0 0 ~ ~ N ~ ~ ~ d f6 O +' 'O ~ o c Y`o ro ~ ~ aCi U C O O~ O~ ({{ O na~•aNa-oo_ .C > m o •- I- d d~ cU }y •C C O Ew o m ~ O ~ ~ a UI .O O 'C U O ~. J 0 0 N a m Q O O. ro w U Ql 'O a O: t'4~:' %~:: ~.. ~~:0;.:. `.~: O , ~ ;' ~r :` L .O .h'' A >,~: ;~ . , ,.C: ~. V. :~, ~}~ : ~. ro a~ . ~ ..: ro ~`'~ d C,:~ '~ a W: '~'~j - ': a rJ1;r ~, .: N Q: i ~ '., N . _~ .,~.. . C ~:~ ~ • ~:: ~,; _: • Q "~: ,': . -~..: i~; .: gip: ~:._ ~i m m d U N .Q a 0 m Q N ~ i ~ L ~ z ~ ~' roI¢ U ~' N 'n ~ i d. N I~ r a O N M 67 i W ~ ~ :~ m IN ~ M C 0 m w y n~ m c N 0 u. C O ro re v Q c w m C 0 .~ Q1 0 H 0 a N N m a m m c O ro a I r ~ ~ L ~ ~o . ~ ~ I ~, S ~, ,' ~ N a I ~ I -- .. `m i ~ ~ ~ 'te ( I ! ~ O a OM ~ ~~- I I U ~ I 1 I i o ~ U ~ ~ ; . ,.y:.:. Q.. ~ ~ ~ I _. ...,. o, ~, ..:~ .~..~~~ I ~ f ' M ~ o `~ I I rn . r i ; :u~ ~'~~ ~~~Q ~ O I ~ ~ ~ ~ ~ brg ~ 6N9 -~ '~ V C •~0.~:'N:. N ,...~..,;,~ N v . _... ....._._ ...._..- _ I ..: d;:::it~V" `'~' ; N rn U C ` : _ ~ ; ~ to O .~ry. .!C.' C ~' ~ ~ ~ ~ I W -r,v~ ,: •.~N ~ N 0. ll~ ~O ~~: 070 .. i - 3? •~''~i: a+ N 'q M .f ~. ~.'1 .-Q~ 'Q ~ ~ E O M p N ICI I I ., ;~, ~:~~ efM . Q. p 1. L ~ i v : c C ~ ° I i ~ 1 I. ~ ~ N ~ , >< = N I ~ i ! , :0!..- ~. 0 , r ~ I ` ' ~ I F i ~ ' , i j ' I . ! _.....-., Q . ~ Q I 1~ i eD ~ ch I, N_ rn : cv ! a ~ ~ ~ ! ~ ~ ~ M ~ I IV; ,~ ~' , '~` ~.~` ~~ ~ I' I ~ U" O I I I I N I ~ I ' N ~ ~ ''~ I t3 i U' I U1 on +' ~ I I ~ ! ' ~ . _~ ~NI ;~ ~ xN J ~ ~ IJ ~ L ____. ~ ~ N CR C ~ ~ ~ rn m H - ~ fd ~ F- ~ ~ ~ N ~ a~ o '~ U ~ o ~ ~ Q m ~ Q, a v, ~ ~ t] w ro m d ' ~ V d r ~ C •U i ~. Cl O c ~ its v + G UI + ~' ° ~ I ~ ~ N ~ ~ o Q t t ~a _. ... W LL ~ q e( i U i U v1 U to 0 a ~~ N .ti. CQ : ~° u1 nj ~ Imo; 0 N ~i ~ ~ i i N a -_l I N •~ i U N ~ l~ Q u i o E L ' ~ U i C U E '~ ~ ! m Q F' co i ~ a+ Vs ~ L ~ O G I ~' N N (.~ C7 ( ~ d i {Y~:..d1 '_'_ N i 0 0 ~ . ~. ; ~'..: ~ I O '~°' v i.~'; al Qj:; ,,~ t'C.'~~ ~ '<4;::i i 4-1 ~:..~. w ~ Q' ~ -: ~... i .~ :.'N::_ y -: v' . ?.0}~ ' U ~ ~ ' C` ~-' C Q' N a.+ ~+ C' w O :~ ~i ~~~~~' ~ ~ ~ ~ Iro ~:~~~'-:: E ~°o (Xi ;:.~,:.. i ~'~' :~, ~ (0 4f q,.. l ~ ~ «~ b' ~ O ~ U~~ :. a M O ~ ~ : N : cn . . ~ ~ .. ' (~ O .: c0. D W ~vj fD ~ N n..:: ~ W N N M N ~ c~p p ~ ~ N 'd' O h^, O m:.: ` 1 m n. ~ ~ Z i, ~ v ~ } '~ i ttl u ,~~i o i ~- _ .... ~ ~ a c lL ,~ ~ ~ ~ .N ~ o ~ S '~ a~ a' ta ~ ~ . m ^ ~ a' ~ G C c ~ a~ ~ E m N ~ ~ ~ G L ~ o m ~ a ~ ~ y ~ d ~ ~ ~. ~ s F 'm z O Q ~ U .~ O Q N a~ m ro a co as 4 'o fl. N v "FU N n v- 0 a~i E a~ O ~^ E E m d m H rn c 0 J U G Cl Q d Q N L y. V VI L1. cU ISS L Q p. (V ~ O ~ ~ ~ N p ~ ~ C ~ ~ ~ 0 °- cd' r u 11,. 0 Ri C m ~ C } } is ts1 _ ~ m" ~ u N IL L1 IL ~ C N ~ ~ ~ ctl ~ '~ ~ ~ •~ ~ ro ~ ~ ~ ~ ~ w ~ cs ~~ ~ •~ N c .a ,~ ~"n C 5 '~ '~ N m L o ¢ ~ c c 7. n C a ~ ~ d N ~ 7 ~ fA W O ~ N *~.' G C C E L ~ ~ N N N ~ ~ W N o 0 0 ~ ~ Q ¢ b ^ O G. w m ¢ Q ¢ ¢ o ~c 'c c ro c °. Y ~ ~ ~ a m ~ c ~ (6 tU 'O iCY u°. m° S- n. a. ate. ~ ~ ¢ ¢ ~ a a a` ........................... ' 'vi C ~ o i ~ N t ro } vj s D ~ tl U U 0 r ~ F LO o' O ' > c ~U # :p i O' N G m : ~ LL EA' N j ~ ..~ i o s 3 ~ - ~ r k ro O v r N li. O W b d 7 b _ C ~ C a_ E ~ ¢ d ~u N C '~ d v n a ¢ '~ ro ~ } I-' N i ^ C as U t d U N ! ~ ~ (tl 4- a~ n ~ IA N v~ ~, o~ U ~ 4=. O r v 3 ~' U ~ ~a C ,~ O ~ m _ N N N D LTL ~+ m d ~ ~ 3 d o ~ Q m O Ul C •p ~ # N ~ ~ } C ~ ~° .fl 00 N ? ~" ~ ~ ¢ ~ ~ O X of ~ m H~ < ~ ' N ~' OQ - b m _F rn d r :`f ~~? ~r G ~-" C J U YA a N b O ~ O O N N ~ pl Imo- :~ O O ~ W N d O - 0 O 'ct ~~ O O a N ~ :~ 69 m ~ O ~ y a ~ W ~ ~ ~ nS ~ b1 ,~ ` m a1°i Vl ii ~ 0 ~ ~ m v } r o 0 cV J y } m ~ b CA ~ °i j,N W ~ ~ O? a LI.. 07 C v ' TI ~ lF ~ ~ ~ C ~ ~ ~ ltl ~ _ ~ N ~ s~ ~~ ~ ro n. ~ . q j ~ ~ ry m ~ rn ~ ~ ~ ~ ~ ~ N ~ ~ @1 C ~ . ~ ~ '~ N N C G C ~ ~ ~ G 'O ~ C C C C C L N D_ .O O. O. m W ~ (tl ~ ~ U O O O Q O u- ~~( o ~ ~ E ~ ro a m v E ~ E E ~ tV 4J ~ ~ D 2 CL N C C ~ ~ ~ ~A Q Q Q C Q. V ~~--~ ~ -p 'V U O ~ ~ , C N Ul ~ .V 'Cj U 'U C ~ O O d ~C 'C 7 ~ ~ d. 'ij ~ ~ '~ 'C ~ ~ N ~~ °o m ~ J ~ r a w } n U ~` - U N { .C O m Z Q ~ { C ~U ~ N ~ N } C as ~ .. . !~ } ~ C N O ~ N S Cp C Q O F- m f Q. ~ d mU ~. ~, ~ U f a N i ,~ ~ 0 c v . ld ~ ~~ s w~ ~ a~i I- ~ U N ' '~ ~ ' C .~ ~ ~ ~ w d ~ dl w ~ ~ :n o a ~ n t '4 m V! ~ O ~ • . ~ _ a ~ ~ rn ~ O O p C -F .. - 0 0 ~ _- _- q N , Nd ,- ~ tl~ ,- N N p - p p '7' c cpp tl' O --j U d ~ w m F~ rn G O ...1 >. U C v rn a N G O J ;~ ~ d o 's U ! U v o m a, o o c :O ~ C lt '1 11.. ~ ~ '" O ~ i, } N ~ .~ ° u t9 U' m C m ~ m ~ w Cam'] ~ C N ~ }" O CV J , } ro W C . y ~ ry(~ t t N LL U1 '~' N 4111 jy, ~ .~' ~ ~ G N mo ~ i. i' ~ ~ ~ ~ [ d ~ • 7 ~ d l d ~ ~ ~ ~ ~ a ~ ~ m ~ c o ¢ ~ .E ~ ~ _ ~ ~~ a ~ ~~ ~ ~ N y ~ a? o ~ ~ ~ ~ y. o ~ _ o ro ~ ~ a ~ N ~, ~ a ~ ~ m w o E v ro m ~ ~ ~ ~ ~ o ~ ~ ,., ~ v s ° ° w u f v `~ ~ l~ .~ ~ E E E d E fi g E ,°~ ~ Q Q ~t n ~ G l U N' n. a~i w 4 `Z d Q ~, d .? C? 'U f" d Q N y , ~-+ } , ~ ~ ~ ~ f~ d O C fl- fJ '~ ~ 'q O ro U U ~ ~ , ~ ~ ~ C tL 7 ~ ~ ro [) ~ [) C .. U ~ ~ d. U c N li. ~ Il, ti n m a i }- c a a. ~ d m ~ m ~ v d v ¢ ~ ti a`. ' a. • a ro~ o n d ~ N # ~ Q. ~ E : o 0 is U } ,U ~ Q'is ~ ~ E ro a~ o ~ ai .~'c i ~ a ~ U ~a ~ro m v cU w m CS ~ m ~ ~~ i d O C ~L Q m o m ~ ~~ Q a °- e» C ~ ~ .il i F- d d N b Q ~ v ~ C x ro m h% ~ O N a M b] a n n G J rn d _. , 'cb o oojo <t!o no~o 0 0 o v'~ n cfl r~ ; v> ; u> ~ ~ : cn ! ~ qtr dr ~H car ~ r r Q n o ~ ~ ~ •~ I N ~ : ~~ .. ~; ''II ~ ~ o .:. I 0::;.;: N:. I I ~• II I I~ a 7 1 1 :L ~ '~ I I ~ ' ~- ~.O ~ ~.C I i ~ HN -~ ~ N ~ ;:I aas > I N' i N : rn `:::!iM ~ i fd ~ ~ ~ p ~ ~ N t» S. O_ ~:; she.. , ~ ~ ~. :.F;~- ad o c Uf :..~ ~ :.:::~ i2. G7 r VM' ~ N 4.. ..:~!. .' 1!J d N o ~ ! m ~: ~ d ~~ ~: _~:: I' ;~~ji;°~ Ii~~ ;41...01' N.~: i 1 ~~ 1_ _:_ ___.-.,.__.'..~.._.i. ~. _ Q1 .''LQ1 _ . gin/: ..a: C. IL I .-~ O _;~ _ ~ ~ N U1 ~ t6 ~ CC X ~ 'U N j m O ~ l~6( C o ¢ ~ N .. - .. ~ ~ j ~ Q ~ ~ ~-- Q ~ ~ L ~ to _ ~ ~ 'c ~ Q ~ ~ c'i ~ ~ a~ W ~ c p in 5 a~i ro V 1 N 'J ~ A C C C. C ~ C v- T7 ~ . - (~ QS U U ~ .t. N N ~..' v-- O Q ii. d ~ cn a cn ~ - ~ ~ ~ c7 ~ ~ m° O 0 a r o~ m c .~~ 'O C QS X W 'cl C (~ N V c ra G m ~n ~+~+ 'O d !Si ~' ~. w ' :. Lw... ~.. a' LL3 b: C" .ro ~~. E.°. a. U. . ~: ~:. d: . :~. . ~. G. a.. ~.. m'. ..,,.. ~ ~ N d t0 ~ q •J" 4-+ ~ .~+ .~ L roq 'v aj N ~ ~ C In y Ql bl b O O ~ O ~ ~ U C N U_ b ~ C fq y ~ !L W .., w ,o ~ ~ a C ~~ IL V ... ~ 'd' m ~ o i o ' n ~ n a ` a o : m. a o q m 64 Ffl. 6'9~ • 64 y} 64 ~ 64 ~. ~ 64 69 N , . N i f ! i M i ~ . o r7. ~ a ~ ~' ~.. R1. - a. N UI J a ... ... _ o ~ U c ° `~ W o ~ ~ y U v t: C . C i ~ C T~ W ~ ~ N ¢ t!1 p C C ? 4. p ~ U ~ I L N - ~- rs . ~ a a c v o ~. N o c ~ i ~ ~u ~ m v ~ c in ~ c ro ,~ ~ U U ~ m ~ ~ ~ ~ ~ tl C l!) Z ~ Q 4 N tl) N p C o ~ - U~ U d. ~ ~ 0 2 `° n ~ m ~ o U: Q n o o o n s ~ N "U1 ~ N a.. O " ~ N ~ C 'C C ~. ~= W "~ ~tl U U U U ~ ~ E c ~ w ° ° N " ~' ~ E o ` m ¢ - m o - N ° as m ¢ n . a ~ O a a ~ a o .. ~ i 0 W- .. a _. ~ rop ~~ 'm a~ N a~i ...' 7 N' y:. ; ~ ~.. a c M ~~ ?J y C ~p O ~ P~ ?{ ~ a W. ?r ~ ~ O ~ ~ V ~' y G.. g. a i<:. N ~ l!J ~ W ~.. n _~ ' ~ d m '~ v ~ ~. Q y ~ av ~ ,~ W v.. N ro ~' ~ N ro'. ~ n O N J a z tC L ~ ~~.+ G~ V •~t N O ~ 'i N ~ ° ~i (J ~ m~ ~ ~ r 0 yr ; ~». ri ~ r: .~ s<r : ui ; yr ° o, E t»; ; vy. °o. m im ~ N ~ ~ ~ N ~ . r ~ . . ~ . N _ ~. ~ w o o ~ .q a u~ cn : n op m ~ N: ~. ~ _. h. :.-- :~ m ° o ~ : ig H a ... ~ .....: :....... ~ w Cy N a ~ a a u] ~ 8 ~ ~ 0. ~ ° o N ~ ~ ~ i o W } ~ ~ b !A z a ~ T3 a ~ O, '~ N. O ~ ~ C U ¢ ~ ~ ~ lJ.l ro o c 'C ~ U `-~ C ~ . m ur v ~' c a ro c ~ ~ d ~ ~ a , O m a N ~ ~ ~ ~ C ro ~ b , v a U C} w L`Y S o U ~ q j :C ro m V1 . v u ~ ~ C dy a ~. ~ ro ~ C a Q J U G } p. O . ~ ¢ G ~ n W C O O ^. , O C m n ° ' C ' _ w x W N ~ ro 7 a 0. x C ~ m U p~ .C ~ , ~ Ul ~ N N b a _ ~. cn Q a p~ (~ Ul W .~ ~. p O ~ ~ ~ O N ~ a ,.p C C ~ ~ ~ N ~ ,C '~~' ~ a , ~. Q C ' av.~ U L O t,, o tJ ~ x pl E ~ s r ~ ~n ~ a a a c x ~ n a c O a ro a ro o U m p ~ ~ i% N z o ~ n F- y a m [t -0:: `- N :. ~ :r~:.5 ~ .: ~:: i (~ .,: ~~:~: ..1 ~,j: ~,.~: ~Q N ; ~: ~: ~. w FN ;::• iii :: :: p~~.~'. '~.~. '~ '_ :.~ '-'~ . ~'~.". ice. . ~;. • :~ :. ~~ O:' .~ .,~ ' :~. oct~ oEn °~ °~ °c~ itl O L ~ ~ . ` _..,.i ~ I ro . ~ i Q~ I, ~ ~ ~ w ~~` ~~ 1 . ~ o ~ ~ o~ ~ ~~ u -a c U I y ~{ 'O ~ C Q ~ Sl. i./ d ; •` I U t ~ ~ ~ ~ ~ ~~ ~ a ~ ~ j~~i I ~~ ~ ; ~ I~ ; ~ ~~ ~~. a ~ ,; it I ~ I ; ~ lo,,y , ~ i ~ ~ I . ~ Q ~ ~ p .. ~ ( A i~ tD :~ (p ~ ~ m ~ ~.. v `~ tr ~~ i ~._ o ,o O ('r~ O d' V• I~ ~ Y { ( i N d O p' 4 1 ~~ i~ ! ~ .I i~ il;~;~ ..-. .. C ll. m o a~ ~ v ~ C Q U W~ 3 O ~ C m ~ ~1 N m I- j Q a w ~ w ~ ~ I- ~ b ~ b G ~C i.L C C C L ro c ro c m a m C ~ ~ rn C ~ ~ ~ '~ b m ~ a ~ X ~ ~ ~ n ~ X ~ •.'~.. O ~. O H ~ c P `~ I ¢ a i o N _ 10 ~ l ~ D J m m N ~ w W Q ~ "' ~ ~ ~ ~' o N a ~ O ~ ~ ~ c1 ~ LL ~O y B. ~ o N I N U ~ a a N 4 U ~ a a ~ ~ n. '~• N ~ ~ ¢ x LL ~ Q! m cn a°~ NC U N ~ a N a rn a N U a 0 m c ~U C m lL CQ w Y ~a c xN W a C m U c 0 N ~ icp ~ ~ ~~ ~io 0 N m cn rn . ° ° r h r p ti c0 ti . ' ... I i ~~ ~ ~ Y . .. . ..:..,. _ o ta A . ....: ~ ~ ~~ t~3 ~.c. : ~ ~ ~ ~~ v ~ . '.-o : :.' ~ C3. C ; _ N ;rte i N ~ { I i ~ 'N 4r C i oT o ~ I °' _ o c j N } }+~~ i C ii~„ii ...~':. O i + ;5:~. ~ I 4 ~';.(Q~ ~_ ~~L:. ~ III. to 7 , ti ; co ( ~ u7 , ' ~ :~ ~ v~r' s . ~ : . ~ c:. s: N ~ g w n : '~c~: N.'." u.1 ~, v . '~ ~ • ~ rn ' ~ ~~ ° E y ° N ' ~ ~%~ ~:' ~ G ~ j ~ ch ~ M ' N ~ ::Q ~:. ::0 ~ , ~ ~ y:i LL. - ~ ~ ~ v~r rn . . ' .N: :L3:. o a,, ~ ~ o~ ~' m V I ~ '~ C~ ~NI ~J ~ G > _ , I - c N' ~ v :UT : .w at m U1,:_: (A ~ O ~'~ ~ ~ , ~ ~ ro > 0 ~ '-o N N N LL ' . c m l5f r ~ ` 0. w, N O. ~ 'p o i " R. ~ N O ~jJ f0 a, 6 d Ol a~i ~ O '~ c r,( ~ ~ ro ~ j ~ 0. a . ~ . V1 a ~ ~ N ~ ~' _ V y ~ 0 ~~ N ii ~a ~ -a a o W W o . h LL CL UI~~ 1 N y W m ~ ~ ~ c . ~~ W ~~ ~ O N W ! ` N' w a ~ i m r .. o a ca rn'o 'a o o a a o In 00 N 64 N (R (fY EA 6g 64 <H ff> ttl 07 r'I o~ I~~ E j~ L~ x rn 111 ~ ~, ~ I ~ 1 - Via" ;:: L ~~ ~ ~~ ~ ~n ,: is Q ~ .: ro ~ I v , a ~ d~ ~ ' .i `~ L_ I ~ l I, i . ':;~'` L n a = LL ~ ! '~ i( ~~ i1 ,i i j' '~ i it I ~. ~ ~ a , I II ~ ~ ,i 1, ~I I i I~' ~~,,~ ~ Id 67 I ~ I 1 I I IN' ir! r~ I L' I~ I li I~ I ':4~ ~ fA ID ~ i ti ~ ! I ~ I ;I l;~.i 'I ;~ ' ~ ~ ELL ~~ r Ii ~ ~~ e l ~ I II I :~ ~ .~ c ~ ~ I ~ ~~ :4~ ~ n ,~ .:~ m v) ti o I t I I I ( ~- ~ I ~~ ' _ __ :.:~ +~> ~ Off] N I I. I I ~:~ ~~ ~ C~ N O i i I U y( a d~ I I I I i ~. '._~ :. ~O o~ rn I I a ~W I,~I~~~~~I~i~ ~~ ~~ ~ .~ ' I ~ C i ~ ~ ~ ~ ~ ~ .~ ~ ~ N 7 y Vl C ~ ~~ ~ t ~ U N V Vl o O U m ~ ~ ~ ~ ~ U a ~~, .~ ~ o N W in Q d' Z ~ ~ }_ ~ ~ O ~ LL ~~{{ cU '~' ~ U w N. N N ~ ~ ~ ;C ~ C U N ~ ~ E i.~ ~ ~ ~ ~ ~ ~ iL U ^ ~ a In O ~' ~ m m 3 ~ ~ ~ ~ ~ a ~ ~ a o m o . U.. I Ul N t~6 ~ U U p O qj C ~ ~ ~ U 3 N. Q U U I- 4 4 ~ U ~~ o 0 oS otx i a 0 N a a 9 0I n C ro N Q 0I m N U N m a~ r°- N lL N a ~ o~ " r~ w ~ .e J ~ iN..:: :..R.... ~ ''"' LLB F- ~ , ~ , d ~ ~ N 'L ~ -~Q"~~ ~'~~~ N ~` cj c I-- ~ - ~ ,9; crn ~ u N 4 p S C ~m~ ~.. ~ o :~~ .: ~ ~;;~. C. .~ . ~ c ~ ~ ~ C ro c '~ N . Q. ~ '.. , ~ G CO m N ~ C~ ~ ~, : A LL '' ~ "j ~d ~ ~ / ~. . . ~ ~ U I ~ ... d ~ N ' O a ^ LL ro U LL ` : ~ o ° ° ti :h 0 . ~L~.,. ~ a ~ ~h : I ~ to i~ i O N 0 `~ 0 0 0 b O 0 I I ~ I I __. I ~ ._... i ~ ,E _ .._..._ . ' ~ ~ ,: ~ : . I I~ ;. ~ l i 3 .: i ~ ~ I ~ .. ! i I € ~ ~I '-' I ! f i~ ~ . - ~ ~ ~ I ~ ' ~ !~_.. - ~ ~ I ~.... ~ ~. I ~ _..._.. y.. I I ~ , m O M 1 J ~ ~ ' ~ ~ , Ew. . _. ~ ~ 111 ~ ~ ~ N '~' c~ ~ n v~^ .~ L b w ago ~ o n ~~ Q ~~ ~ C J ~. N O~ ~ J~ N N OO ~ ~' o fC ~0 C ~~ .~+ N N ~~ N~ N C d~ +~. N ~~. l A N U J ~ N N 'Q LL O ~ ~ b- ~j Q I ~ `_ ~?~ ro ~ n ~ `~ ,~ a ~ wU i ~' ~' m u a b E m E T . ~"~ ~~ ~ r y a i ° ro xy a c a c ~ ca Q~ LLf~ W QU1 Q4. ~ ~ . °o ry <- N a m a a~ a~ O a m N Q t N U c [6 m ,~ . , .. `. .;, :.o. ;~ ~ ~ ..~ . ~. a ~~ ~ c : ;~~. ~, o ~-_~ :.; _.~ .C1..; ca ...J -~v ~~~ ~~~.~ ~ ~ ~ :c. ~ ` ~ {~ t4 ' ~, ~ '~ :a~ .::. ~^ ,~. ,_ q ~~ .~s :.., y .~,a,~/s. ~ 6L ~ . a~,r Ni K ~v C ~4~ (~ C31 ..~ C ~ O ~. ~a ~~ v ~, ~~. c~ i ~, ~~ ~ ' .U ~ C i ~~~: v ~. . x N N ~ N ; O S G ~ ~ ~~~ 3 o tl j. J u I .~ N i N 'O ~~~ W m ~ n , U I N O .NC3 a c 3 , t0LL i tl. U ~ ~ a C7 N a ` N v~ ~~ '' is ~r ~, ~ ~, r-- ; ~ ~ :-o ,I i, ilii ' i~ ~ -~~_.1 ~._.~ I 1. ~_ ,.j ~_.._.~ ~ •c ~ i o ICI. ~ it I ~ ! ~ ~i f I ~. ,'~ ~rn I~ I ~~ ~ k ~. ' ~ ~ .I ~.: ~I..I _ . ~~ ~ ~ ~ o I` N N I 1 1 ..' i~ M ~ I ~ -~ i~:: I~ I. ~ ~ ~~ [ I -1 ~ ;~, 1~~~~ ~~ ~~ i i I I ~ i ~ h ~I m ,„ ,~% ° -o m m ~ C ~ N +,C+ m ~ li ~ ~ ~ v .o O t o t'i ~- a~~ a N ~ ~m ~ N U ~ a C C N T }. N +~+ ~ Z ~~ ~ LL IL O (.) N .C N 01 p A N C 0.. ~ 'O bl 00 dj a' Q ~-~' N _ ,p O N ~ y' m .B y? ~ ~ mac' N ~ r p C ~ 7 C .A ~ m ~ O ~ O Q N ... ~ d U ^ .~ fA ~ o ~ O ~ ~ ... a aNi q ~~ 0 0 0~ o ~ ~C m ro~~ w p m m ~ ~ ~ v ~ v ~ mac O l-U :~ Q c Fm^ T O D D f~ ~ Q 0' F- ~ o ii Q O O N a ro 0. C N U .mac O ro m a N r U c m 0 d _ x ~~. N Q C 1J _' ~ a ~ ~ ~ L° E 'O w ~ i~` ' ~ ~ i~ ~ ~:C ~ O ~ V ~ O :~'.! _ Y Q .: N. U a C ii .~ : L ~ ~ a ~'9 r.; ~'- . a :~.., U. C ld ~ ~ ro •N ~' a° ~'~.~' ~ ;w ~ Q x c ~~Q ~ :~~ V N ~ ~ ~ Ql li p O , ~~ .:. Q1 `~ -~ c ~..~ Q ' d ~ ~ . v ~: : ~' ~:'; C N a t . ~.~ `r.Q . ;~,~ ~ :; ~ ~° -' 0.` v a a , `~ ~- ' - a IV .. U .. ~ Q O N f0 r m LL Q T ` C(OU VM' ~ ~ ' t" F- ~ N (O : 47 r o o co ~ n ` ' ~ : M o ro ~ ~ ~ ~ i ' i i --. ~~ ' 1 t 4 0 i ' ` ~ M 1~ I O I ~ - I ~ I ~ ~ I I, , . ~' I ~ ~ ~ . 6~9 ~ i ~~~; ~rni~ h- ~ 0 0 0 0 Q N :~ i I o i ~ i ' ~ ~ ~ i ~_' N m ~ ~ o ° rn ti r: m m N { ~ n ~ cs> yr L._... I i ..~ ~ LJ _ . a m I x 'li v ~ ~ . i . N N ~ N ~ 'a M a~ C ~ ' N a '~ N UI ~ ~ U1 w ~ I °' U ~R ~? 's n$ ~ i ~ ~ ro~ ro v lU ~ .J U v1 N F~ +~ ~q as m N ~. N m tU ~ W N w ~^ ±+ i [d ~~ i 7 > ~ c /i t c ~ ~ ~ F- M Ca W ~ 111 S Q lL LL. ~ . li. ~ 1 O O N N a U v O zs m a~ tU v U1 U t6 C7 lfi b ~ ln: g ~. g ~ :o; ~: ~ ~- ~: ~ ~ :~° ;~ - ~. ~ o. ,~ N N' ~, . C p U '~ 'y . ' C ~ d ' ~ . :G. ... N ~pp ~ L (w (pp ~: G i~ ' ' .. y H y H ' C v C C L C 4! F- d F- a ~ : . ~- ~ v, ~ rn ~ -+ + ~ C a . C ~ 1.. C ro ~. C N ~ ~ ~ ~ 11. d F- O h- ~. o.. . ~.: ~. ~. N 1~. ~" C. ~xa~G W ~J ~~ N~ ~ ~ E a~ U'~ c ~ o l-~ m c v .a 0 W r } U N l~-~ Q 00 /W11q.' °a 1+4 A H r^p~}'i W !~ N H C/1 61 4 U U W h a U A Q N O U a~ ~ ~ A ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~~ ~. • a ~ A ~ ~ am L ,. ~ 6R} 6R U b m ao 00 bD w r i p O M P~ ~ C G1 C 00 ~ Ctl .-~ .-~ O ry N ~ ~ ~ ~ ~ o a ~ H ~ ~ ~ _ ~t v U v v a v h ~y ~ N C + O ,..~ rn ^ N } W +~ , ° ' Cd ~ ~ 0 a ~ W ~ w o "~ ~ o 0 .:: ~ " ~ Cd O W b O Cd _~ ~ ~ ,~ O ~ ~ O ~ G i o ~ A. ~ ~ w ~ m y a , ~ ~ ~. d ~ , ~ '~c +. u . ~° C 7 ~ ~ 0 0 a ~ ' M ~., ~ ~ a~i ti .~'-~ ~j N d ~ U ~ ~ x ~ ~ .~ o~ ~ ,° ~ ~ ' G C Ft. o N ~ ~ y ~ ~ ~C C '~"' N C ~ ~ ~ G] *' ~ N ~ ~ + C N G G N O J.7 ~ (S.~ 'p ~ ~ H O ~ ~ ~ Q • C ~ +Q+ [ ,,77 67 N N ' a~ w +- AE= Q ~ ~ Y ~r 'O N O ~ N ,~ ~ U"-+ ~"' ~ ~ O b ti"' ~ E 'O ~ ~ ~_ w row U ~ a P .. CfJ U N , W ~ ~ C C G ~ E"' ca M Z V ~ O G ~~ G .Q '~ v ~ ~ y, 'O 7~ U U G C 'Q ~ . ~ O ~ y ~ ~~' Qa o '+~ ~ ;: c -v o ~ ~ ~ m •~; a ,~ O O ~ ~ U O ~ O N ~ ~ C . . cd N ~ ~ N ~ y bn ^ y"' ~ N .o cV ~ ~ N o q ~ cd v W ~~ O `'' O O P4 . 's= M ~ M rn + ~° ,~ ~ y M *'~ U.°,~~° b U G F" N ~ O GU] ~' ~ O N ~ ~ G ~ C U ~' 'n '~ O d °~ ~a ~ ~ U , U G A N c U d ~ G ~ N 7 ~'"' ~ m U w ~ w ~ .c ~. x ~ , ~ U n, ,-~ o ~gHIBIT D '~' O Qr b W QI Gc~ A W G4 w z d U W Fir A A4 W F-+ d GO 0 0 N !-~ ~f U W N ~ O frl d f~ ~ W rA ~!~ d b w^a O ~ as d d 0 fit G ,..~ Pa ~ G-~ +~'.' O ~ a a r O U w L n»4 4 ` NQ r p~ » » h rn O oo d ~ Qn nf nc F O q s~ q ri a; » M r° O d" ~ ~ v" r an -" ~n n H C i f n ~ 0, ~ n fr~. W L ~ M fn ~O y k H t-M `^ 4L C d •~. 7 C ~ ~ A ~L L Q.f ~ ~ ~ ~ V C No n. --~ rn » » a w r• » N o r'•I nl :b r- o, N " ~o a oa oo r <r ~o " vi ' w CN ob" ~O ~ rn o ~ d" .. r o M ~fi co oo rr rn rn tY b <Y c? d~ _r r~ » ~ rn in ~ .+ ni n M bl o ~ ~ q ~ N f o b o o ~ '~ a+ b ~y Fry 69 b9 m O ~ E°r C M 61 N b q N C.' N A N b Ql q N p N C N G N g N G N F" y i fl. 0 0 C q 0 q 0 F7 0 q 0 G 0 p 0 G 0 C 0 G 0 F 0 G cy nl nl cal nl N m 0 m 0 M 0 rn 0 cn 0 rn 0 V ~ ["~ d' d' d' d' ~' d. p f a ~ ~ ~ ~ J 7 ~? J .~ •L o C•1 O 1` r~ D\ » Vt o ~O l~ » N n rn ~ •D ~ . -i ~ o oMO c4 ~ H0' w ~ fA ~ ci w t-" cn bo a. m ~o ~ o t~ ,C ~i i m ~ a. 69 0 0 0 0 4 0 0 ~1 0 ~I 0 ~V 0 ~ 0 N 0 N Cpl N N M . CH CSI M 0 0 0 0 0 0 fn O rn O M O rn C1 fn O O +"~+ ~ ~ ~ ~ ~ r~ v c:l :~l ~l ~l .~.. ~ ~ `A fa ~ o `b o b o ~ o ~ o 0 d' 0 <h 0 ~ 0 d - 0 d ' 0 d' Nr Mr A F-! { M . ~ ~.'i a A ifR~~ U c i-. ~ in Q U b a ~+ ~ ~ N b .~ ~ o p F ~°oQ f v n. ~ w ~ ~ ' ~ ~° c U a ~ ~v o q ~ -a ~ ~ •~ ~ h v w ~ c c y q O y G O ~" q ~, e ~ (c2 O 4 O N ~ G p ~ p y y , O y . , r~ ~ O I.4 n i a v c y ~ ~ U y ~ O~ U ~ v ~ ^ ~ c'i Q O • ~ o o ~ t ~ Q + O -~ o o~ `~ ~ o w u, ~ 'a 7 7? ~ y H ~ 7~ 7 rn m" ' c d c ~ ~ q c c ~ ^ 4 ~ y y y ~ ~ 0 0 `'~ rft ' v 5 :, ia 3 r ¢ v5,~.a3 ~ m ~ 8 ~~ ~' u E E ~ ~, ~ ~/~ ~/-~ ~ ~/~ G ^ H FJ ^ 4--f A q ~ C[~i]a bD by rn bA bn by G C G n nn n cn 7p 0 0 0 0 0 0 ~~~~",~~ ~ ~ ~ ~ ~ ~ aa.wwwa. ~ ~~~~ a~~_~~~ N ~ N /pi] ~ N QCaC~OQQ C Hf~ ~ ~HN z~~irze ~ ~ ~ ~ ~ ~ M Cn C/J r/7 f/]. Vql b .C .[ x .~..C - U ~ by bA op. b0 by o V ice. v H N ~ 5~-i ~ !~ ~ ~ ~ H o h ~ ~ ~ ~ ~ ~,aac,aara.. a~~ ~~ ~~ ~,~~~~~~ d ~~~~' N Q C ~' N O~ [~ Cr /~/w~ 1"~ Q~ 7 6L' rdrJ, !'~Y ;N d` U rn L ~t z w (.n pa A H w Q ~" i Yom-. w F N Vj i~ ~+ rn oq 4 Q N w ~~/ W 0 S~x~ >~' r~ z w 4 ~ b w ° M a O a `' W o W ~ ~?~] ~ `~ ~ ~ d ~ O F-~ al"i W ~ ~ ~ V © ~ ~ w ,.a O O ~ w ~ O rn ~ ~ in o h rn V. a O ~ ~ n fY n O o ~ In m 0 n A v b. i., rn ° rn ~„ ~ N ~ ~a ~- ~n in Lei 7„ M ~ x ro w F '- nu ~y C ~ p y d b V ~ C Q ~ a U .~c o rn A rn o ~n o ~t A N !; M O dn' N O bl O o~q W O ~ n ~ ~ 5 0 .-. on ~n .o ~n r fr ~ N to m N n7. O .~ ~ ... a, o d o >ti N tT .~ c~a C4 y e ei G m R ~ a O o C 0 C y ~ ~ ~ ~ C ~ Y M ~ y ` r ~1" ~"' ~y'' ~" N ~ ai ~ ~ ~ p i C ~ ~ ~ ° '~ U U U U U ~ bl .v p^ O I' n O O rn o on o °a °n rn ~D °o ~ ri ~ O rn ~A i ftl ~ M O ° d' 'd' ~ i to n ih V c N O fn ~O .-~ ^~ M a N rn N Cli N 01 N O~ O+ n O+ N O o -~ o ~ O~ --~ O 'n O ry O+ ~ ` 6i O~ U~ T ~ O ~ O ~ O ~ ~ ~ O ~ O ~ p 4 rr~ n o h C~ ` ~n Q o rn ~ o o ` N o ` ~i O ' M N N N N ~ M1 h C`~ r n om 0 0 0 O .-~ 0 0 0 0 0 0 O ~ b q ~ U V ~ V ~ ~ ~ '~ m v"Ci }~ G ~ _ D .7+'" n o o a ~ w o o o o ~ '~ ro u o oCi .°c ..~ x .c° . ~ a Q iii b ~ UJ V] r%l b .y •~ ~ ~ N ' v E ~ ~ ~ x ~ n, ~ w , `a ~ c ~, b ~ O ~ ~ H ~ a~ v ~ ~ o ~ o p ~ q$q ~ Q a. w y e i i e ~ r.l ~ ~ b o 0 0 0 0 ~ ~ a 0 ~ b ¢ ° , `~ ~ ° ~ w 4 ~ cJ C7 ld C5 (d C7 iG C7 td C7 CJ (.~ cd ~ N O h' ~ 4~ a ~ ~ 'n vj G o 0 0 0 o u N ~ N °p om G ~ ~ o ~ V ~ ~ o ~, 0 KC Cq u , Gl w w T. . c7 ~ : c x a -rJ •p W W G G .~ ,~ ~i x ti U ~ ~ •O ~~~~ bn Q 'd y w o, '~~~' a ~~od~ nn O°'3 3d0 r~f~1 .y ~ ei ~ .°1 c>' r] ~+ p J O p ~ 4' P. ~" !V' Q. a.Od.o.o,00 c U f4 y .° ¢ a> n nt M C V? .n L O u¢w~ooN c~xvvxv~ O P O 0 o vI, ,~ ° o e ~ . ~ t~~ ~ aA an °; °" as ,~', o ~ o Y d ,n o, en •~ ~~~~~~~ o n, a o ~ o- n, h m ~ U o.~ O p ~ ~ ,~ p rtl U aww o.aGQ; aG~OCi¢4~ 4o~U faww STATEMENT OF INDEBTEdNESS-FISCAL YEAR INdE`$TEDNESS ONLY FORM B FILEd FOR TFIE 2008-09 TAX YEAR (Optional) TOWN OF LOS GATOS REDI~VELOPMENT AGENCY CENTRAL PROJECT AREA For Indebtodness entered into posl June 30, 2007 Original data Current Principal I Total Interest Due Interest Total Outstanding During Tax Debt Identification Date Principal Term Raie Interest Debt Year Totals, Fiscal Year Indebtedness Purpose of Indebtedness: Ir7 E~ a sir 4 U ~~7 /r H H ~"}}t F•i U lV U C7 "4 E.., a O rW W A a 0 0 ~] k~ O E• F V U Q C N m C ~'7 c C O N r-i h 0 f~ Q ,~ N ~U C O 0 4 0 N ti m a, x E~ v °C h p b h ~ b ~~ n 4 r ^ ~D t~. n N O n01 N y W r~K ~ Pa Ll ' i'~ tl' Orn m .. ~ nl ~ ,-. P ~° tr o ~ o o p~p~~ oo <~i' n dam' p~ d' ~ r ` ~n M n ,-. co G~ ~p .-- T ~ q . '~ ~ W n~ Or ~F -' ~O O nl O~ h ~ O ~ C ~, M f` o ~ a ,+'~ O n ~ ~ h U pp U •C N rn N ~ a 0 A p ~' d ~ ~ rr1 rd G y v ~ ~ n'e ~ O O U yy , ~ ~ C 0 ti G ' b0 5 . ~ ~ kt . o rd N tl ~ ~ p ~ v rn v°~- ~ or r°~ n ~O o r` ~ O a , n .- v; - o a ~ o o , Q 71 ~a+ ~ ~ M omo N ~ h n' W ~ Q\ m .n N 4 ^ ~"~ ' d ~ H V l ~] ~ 8 ~ " N y. y '~ + 'c3 y n ~ r~- n I ~i N o no~o ~ • C ,[ h r ~ ~q ~~F o r N~ r1 M M r0 ~° 0o n N ao V nj n j P. ~ ~ T+ p d' r ~l d [ '~ Q n ti O 'O C. v ,~ ~ nl nl nl dJ °~ f^ ~"., ~ 4 U rq~ y ~ p , '-" O G' U N v ~ ' r.~~, F 7 ~ o . ~+ ~ ~ e~i n >, ~, ~r . ° ~-, "r7 y U V 6L1 ~ ~ ro nw r n.~ rn~n ~ ~ 3 'r `n 4 ~ 0 ~ ~ rn 0 ~ r ~n ~ r4 o ~ r ° w ~ : rri o G t o mw Y m n a o *~ o C rn d- ,- ~r -. ~ n! ~ r7 3 ,ti N ~ ~ ~ ~ •~ ~.. a ~ -ci L °L' W ~ O ~ ~ '~ G3 H ~ ~ ~ C ~ A N y '~C o rn N rn rn tY < r N rn Y oo r ~ c 1 t^~ o o ~n o rn rn <~ f rv N ~ rn oo G•, b ~ Y o n - _ q chi a~ ° U C 'cf ~ n1 o m ~ a rn t rn Q^ ~ ` a D n~ ~ ; oo r D ao N co r O~ l r ~ c w ° o 0o : m 'd +~ ~ m ~ ~ ~ ~~ N no° ~~n~ ~ ' m N ~ oo o ~~ rp. d by 'C7 b~ N M~ ~ p ~ p N Lj C O cy C N b N ~ ~ ~[ o ~ r~ ~° ' a ~ C O bt " y U •-+ ~ ~ ,C ti p ~ C O N U y 'D ~ .L1 ~ o a~ q y U '~ U 'd G [ti ~ .~ ~ 4 4 .~ ,n ,~ . ~+ [7 ~ $ Q w ~ o ' p Ca ~ ~ ° Q p A .c y uj o ,.GO C ,c y~ o 0 Y ~~ id ~ N b rn U N O h r r/1 U ~ ~ fJ f" a"'"i W °J 1d ° ,~ w W °~ ' b l ~ y ~ ~ Q o ' ~ o Q ~ ~ ._ ~ ~ o ° O ° `° ro ~ ~ ~ ° ~ -ci ~ o a w ~ ~ U ha O ~ C ~ rv N •-- (~° U ~ ~L(, ~ V) C N w w N ~ . ~ /~ a. -~ N V '~ O O H N Q 'C p p~ N ,~ H r/Z ' a Q'17 ~ s C7? CJ ° N O. id~ r CJ v ~ p ~tii ~ 'd at y C7 b U u. ~ O Y ~ N U ~.pl .p]~ rn Cl ~.°-1° a°~ rn ti a v v ~ y~ P .~ L V r., N N N 6) N r y Gl N N N Al F+ r' t0., rV v ~.-~ a::a aa :a:~ aa :ia a w° Q ~ u V ~ ._ ,-, ,-. C ~p 7 a~' o ~ ' G C~ 'n "~ ~, d a1V faw u.C7 ]C~ ._: d a, "'~ ~ ~ ~ O ui E., p ~ ` G ~ ~ ~ ~ ~ v G ~' m ~ ~ ~, ~ ~ H ~ O z La a:=a aa a..=a aa :aa a ' ' ~ a<w ww wn, n.a wa wa w 00 w Q N N A. A H W z F-t E-~ fY7 t°• H O H O U ,y W T^I .-1 Sx7 W U U W 0 ~f Rdi P4 H V w d 0 N m n 5 0 O 4 N M 7, M ~Ti Cqqd WI G' O !d •C u C!i L T cd F+ O In W (D O O 4i M O W Q~ In O O N O ~ ~ N (`7 O ~7' N h 0 G v A of ° co o ° ~r v' co r- ' o 00 w 'ro wU o m u ~. m ~ v i ~ n ~ ~ ~ N '- r te (D ~ ~ 4 W °- 6 L s v n ~~ w ^ 4 ' ro q q - o 0 ~ 0 ~0 ~ o Q Xj U ~ N L O O ~ ~ ~ 6 1 C a G V m d" ~ O In O O V" ~(1 <'9 V L) O y N l{7 N ul a N ~~ ~ M to H h N rn ~ o N N <a Is e ai V Q .~° N M ~ ,~ cri ri of U ~ C ftl eG '-' G ~ W ,~, d Q q q SS ~ ~ U Q O O Ln ((++~~ V In M V L' e P V th Q •~ N ~ ~ to C N ~, r. Y ~W H O M ~ O W C , ~ O 1 b C7 0 ~ (1 d- i n N O O V m C C7 f0 O W V7 M N M J' N t`- u°i ~n m o ~ m FC ~ ~ .= ~ N" 1ti 6i d ~ V ~ d m +' R ~ b0 T1 C ~ O N a 7'n ~ y ~ ~ ~ a } ~ o N C ~ - t+ O N ~ ~ t 0 O O 'v ?y Ul ~ '~ .: 'a ~ Q C (. ~ LL . V ~~ - p - ~7 A = j ~ ~ 0. O .~ ~ 0. R m O E C O O c ( zz ?~ N N ~ p ~ ~ ~ ~ b tl N ~ y ~~ ~ IL ro ? o C n C ~ ~ 'G '°' Ol U C b Q .ia m N U N U c A O I1J I- .U O N N ti ~' C] W lt. _ ~ Y J ~ ~ N C W O7 W N N 01 US Ul N tl :--. G H C -J C .-1 'C :-1 C J C J ~ .a ~ . A C J C J ~ U N N N N N N . N N N ,Q v ~ a a a a n. a ~ a N m ^ u .C9 S l J Q ~ a h O ~^ C .~ C J G ~ C J C J C J C J C J J ~ Q p N N N N ¢ N M N N F- . ,i a° a a .a z a a o_ p . ~ . c~ 4 M ~m A N ~ O O '6 m ~ ~ C N Q~ n ~ N ~O a~ C ~. Ol ~ OA ~ V ~ C O O 0 w° C O O O N m ~ C1 4 CALCULATION OF AVAILASL~ REVENUES TOWN OF LOS GATOS REDEVELOt'MENT AGENCY CENTRAL PROJECT AREA TAX YEAR 2008-09 RECONCILIATION DATES: July 1, 2007 to June 30 , 2008 1. Beginning Balance, Available Revenues $ 11,533,539 2. Tax Increment Received-Gross 8,716,836 All Tax Increment Revenues , to include any Tax Increment pass through to other local taxing agencies 3. All Other Available Revenues Received (2,726,370) 4. Revenues from any other source, included - in column E of the Reconciliation Statement, but not included in (1-3) above 5. Sum of lines 1 through 4 17,524,005 6. Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 6,539,687 7. Available Revenues, End of Year (5-6) 10,984,318 FORWARD THIS AMOUNT TO STATEMENT OF INDEI3TEDNESS, COVER PAGE, LINE. 4 NOTES Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts pass fhrough to other local taxing agencies pursuant to Health and Safety Code Section 33676, Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefore omitted from Available Revenues at year end. Item 4 above: This represents any payments form any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous 501 included a bispositicn and Development Agreement (DDA) which was fully satisfied with these band proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid tinder the "other" column. (Col. E), buk with funds that wore neither Tax Increment, nor "Available Revenues" as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues".