1997-141-Approving The 1996-97 Annual Report For The Town Redevelopment AgencyRESOLUTION 1997 - 141
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE 1996 -97 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 report describing the agency's activities affecting housing and displacement.
3. The audit issued by Maze and Associates, attached hereto as Exhibit A, gives an
unqualified opinion of the Redevelopment Agency's financial activities includes the auditor's
opinion of the agency's operations and financial position, and the agency's compliance with laws,
regulations and administrative requirements governing activities of the agency, including all
financial activities involving low- and moderate - income housing funds.
4. The Report of Housing Activity, attached hereto as Exhibit B, consists of forms
provided by the State Department of Housing and Community Development and the completed
forms describe the Agency's activities affecting housing and displacement.
5. Approval of the 1996 -97 Annual Report for the Los Gatos Redevelopment Agency
does not constitute a project for purposes of the California Environmental Quality Act ( "CEQA ").
RESOLVED, that the Town Council hereby approves and adopts the 1996 -97 Annual
Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A and B.
FURTHER RESOLVED, that the Town Council determines the planning and
administrative expenses from the Low and Moderate Income Housing Fund are necessary for the
production, improvement, or preservation of low- and moderate- income housing.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 15th day of December, 1997 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Jan Hutchins,
Mayor Linda Lubeck
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED: G (cr t �l - %L -d �
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN O LOS GATOS
LOS GATOS, CALIFORNIA
REDEVELOPMENT AGENCY OF THE
TOWN OF LOS GATOS
COMPONENT UNIT FINANCIAL STATEMENTS
FOR THE YEARS ENDED
JUNE A 1997 AND 19%
Wk,
REDEVELOP'NMNT AGENCY OF TB"
TOWN OF LOS GATOS
vomponant Unit Flnancisi Statements
For The Years Ended
June 30,1997 and 19%
Independent Auditor's Repoli ........................
Component Unit Fb mwjd sta mew.
Combined Balance Sheet - All Fund Types
andAccount G roups ......................... ............................... .... .
Combined Statements of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types .............. ............................... 3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual .... ...............................
Notes to Component Unit Financial Statemoma ...................................... ............................... 6
CompUanca Report of CardIled PubUc Accountants oa Management's Assertions ............... 9
Compliance Report of Certified Public Accountants .................................... ............................... 11
1NrDEPF"NDENT AUDITOR'S REPORT
To the Governing Board of the Redevelopment Agency
of the Town of Los Gatos
We have audited the accompanying financial statements of the Redevelopment Agency of the Town of Los
Gatos, a component unit of the Town of Los Gatos, as of and for the years ended June 30, 1997 and 1996 as
listed in the table of contents. These component unit financial statements are the responsibility of the
Agency's management. Our responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are
free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the component unit financial statements present only the Agency and are not
intended to present fairly the financial position and results of operations of the Town of Los Gatos in
conformity with generally accepted accounting principles.
In our opinion, the component unit financial statements referred to above present fairly in all material
respects the financial position of the Redevelopment Agency of the Town of Los Gatos as of June 30, 1997
and 1996 and the results of operations for the Yom then ended, in conformity with generally accepted
accounting principles.
September 25, 1997
REDEVELOPN'LNT AGiNCY OF THE TOW, t OF LOS GATOS
CONSINED BALANCE SHEET'
ALL FUND TYPES AND ACCOUNT Cxr @S
JUNE 30, 1997
w11ii OONPARATM AMOUNTS FOR R7NL 30,19%
ASSETS
Cash and lavesCnents (Note 2)
Intergovernmental receivable
Due Prom other funds
Total Assets
LIABUTIES
Accounts payable
Accrued payroll
Due to other Punch
Due to other governments
Pus through obligadoas
Advance from Town dLos Gatos (Note 3)
Torsi Liabilities
� • IaM�
1 ,, . ,
Encumbrances
Unreserved, undeatgaated
Total Fund Equity (Defldt)
Total Liabilities and Fund Equity
Housing
Redevelooarear Set Aside 1997 1996
5633,920 $347,948 $981,868 $719,348
$2,010 9,219 91,229 48,416
® 9,683
7 777 447
$4,656
$250
$4,906
$23,091
5,360
1,710
7,070
2,419
11,426
1,588
I3,014
9,683
263,879
263,879
140,867
356,344
356,344
251,345
200,000
200,000
200,000
841,665
3,548
845,213
627,405
353,619 353,619 235,861
13,191 13,191 2,170
(138,926) (138,926) (87,989)
(125,735) 353,619 227.884 150,042
..== MULL9L =UQ= 7 7
See accompanying notes to component unit Anaacial statements
Tate! Rcv==
Rxp
CaPi &I MU&Y
Fmjwt *am
Pea Ownsh Pt)mrm
Pll OW4 • D48t WVM (Na4 4)
Iotsaa (Nam 3 4ad 4)
Tact EValdiMm
EXCR sOF REVLVM
OVER EXFENDnvm
OTHER FINANCING (t21ES)
Opmadol ttald4n (wt)
EXCES6 (DEFICSENCY) OF REVS RM
OVER ZUENMTEMM AND OTHER
FINANCING USES
Fnad b.,.n (dci cit) 4t k*Aojq of rw
Fund billow (dadZU) u and afy"r
A
5790,013
SISILM
394ILD16
3593311
— 2$•442
_ 13,073
40,317
31.593
113.455 _
173.071
9!1,533
636,976
406.164
33320
467,114
179,396
174 70
176,310
141.701
90,000
90,000
00.000
111.303
193,419
134,737
35370
910,037
394,323
(39,152)
117,731
71,476
32,433
(634) (634) — (1ul7f
(39,916) 117.758 71,842 77,066
,x.819)
235.861 _ 150,042 117.976
` 5130.042
Sao ACWC*adyL 1n1WtomY14I1lSWRMNU
REr —vELOPMENT AOL tCX OF TIE TOWN OF LOS SOS
CC -M40 STATEIIBN'T OF REVENUES, Exq! ml, -S
AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUNDS
F, �g��
FOR THE
JUNE 30, 1991
RBVENuu
Imam cw property two
Zara a
TOW Ravetmaa
EXPENDITURES
ow'w muar•
Nm amn
ha Lrw paymama
Debt orrice . pn=pal
Debt wrvia •udenat
Taal Elpeadimm
EXCESS (DEFICISNCY) OF REVENUES
OVER EXFENDIIURU
0, PINANCINO (11519)
.. Opauin8transfan (ous)
EXCE88 (DEFICIENCY) OF REVENUES
OVER M2ENDnWM AND OTHER
PINANCINQUSES
Fund WA 4 NOW%) at baWmlai ofYY$u
P=4 bs mm (daflo@) ae aid of year
31.544 9382 (70.126) 106363 117,731 11395
(634)
530910 (39,916) 87,326) $1® 117,758 531.395
1.319 233.861
� �mpaWiaE a4Or to eaapmbt0ah flonWal,rwmeon
REDMWPUENT adaor.
ING MT HOUST A OM
Favamwe
aname
—Budge
Aamd
_ (VO$venbb)
BadRS Aetna!
Favmnhl
Ofivaeabla
SE71„ 90
8790,613
(Sii,3n
5131,110
fiSE,00;
(3107)
y
3.600
13,073
11,473
E84J90
81545 J
(61,93
161.710
173,078
11.36E
419,006
40064
12,142
33,347
35,320
27
164,000
176,570
(12,370)
95,000
90,000
5,000
174.940
181303
(6
832.846
134,737
(1,891)
$3,347
53.320
n
31.544 9382 (70.126) 106363 117,731 11395
(634)
530910 (39,916) 87,326) $1® 117,758 531.395
1.319 233.861
� �mpaWiaE a4Or to eaapmbt0ah flonWal,rwmeon
TOTALS
VACUA
P.va wa
HudeR AoMd (Undwn6ls)
53.036.500 $941,016 (8e 8,484)
95600 40,517 30,w
1,046,100 988,533 (57,567)
474,353
461.154
11,169
164,000
176470
(12370)
95,000
90,000
$,000
_ 174,840
191,303
(6,463)
got 193
910,057
137,907 78,476 _ (39� 443111
634 (634)
s1� 3j" 77,542 159 431
SO 041
REDEVELOPMENT AGENCY OF TR-
TOWN OF LOS GATOS
N, J To Component Unit FinaacW Statemeus
A. Description of r*a Rgdavelopmou Agency and Redavalopmant Plan - The Radovelopment Agency
of the Iowa of Los Gatos (the Agency) was created on December 4, 1999 under the provisions of the
Redevelopment Law (Califomia Hedth and Safety Code), foe clearance and rehabiHtatioa of area
determined to be in a declining condition in the Project Area. A Redevelopmem Plan was adopted on
a
November 25, 1991 to provide an Improved physical, social and economic snvlroas ado to the
Central Los Gatos Redevelopment Project Area
As part of the Redevelopment Plan, the Agency entered into agreements with various taxing
authorities which required the Agency to pass through portions of incremental property taxes to each
taxing authority. Expenditures far these pass- tough agreements am to to 5176,570 for the year
ended June 30, 1997.
The Agency is authorized to finance the Plan from various sources, including assistance from the
Town, the stare and federal governments, property tax increments, interest income and the issuance
of Agency debt.
The Agency is an integral part of the Town of Los Gatos and, accordingly, the accompanying
financial statements are included as a component of the general purpose financial statements
prepared by the Town. A component unit is a separate governmental unit, agency or nonprofit
corporation which, when eombinird with all odor component units, constitutes the reporting entity as
defined in the Town's general purpose financial statements
A DescrWdon of Funds - The accounts of the Agency are organized on the basis of funds, each of
which is considered a separate accounting entity, The operations of each fund are accounted fbr with
a separate set of self - balancing accounts which comprise its assets, liabilities, fund equity, revenues
and expenditures, The Agency uses a capital projects find, which is used to account for all resources
used in the acquisition and construction of capital facilities and other fined assets under the
Redevelopment Plan.
C Basis ofAccountfug - refen to when revenues and expenditures are recognized in the accounts and
reported in the component unit financial statements. Basis of accounting relates to the timing of the
measurements made, regardless of the measurement focus applied.
Governmental fund types are accounted for using the modified accrual basis of accounting, under
which revenues are recognized when received, or accrued when they become available and
measurable as net current assets. Expenditures are recognized when the related fund liability is
incurred. Revenues susceptible to accrual consist principally of intergovernmental revenues.
D. Budge& and Budgetary Accounting • The Agency adopts a budget effective July I for the capital
projects fund. During the year ended June 30, 1997 the Agency incurred encumbrances which are
reported as budgetary expenditures. However, since encumbrances represent commitments on open
purchase orders, they are not included as expenditures reported in conformity with generally accepted
accounting principles.
REDEVELOP AGENCY OF THE
TOWN OF LOS GATOS
1�_ To Component Unit Fln>anciat Stateme
Agency cash is included in a Town -wide cash and investment pool. Details of tuna Town's cash and
investment pool are presented in the Town's general purpose financial statements.
The Town's investment policy and the Califomie Goverameat Code permit investments in
obligations of the U,S. Treasury and its agencies, commercial paper, bankers acccptaacas, repurchase
agreements, cwtifc s of dgMit, medium term notes, passbook savings account demand deposits,
mutual funds and the State of California Local Agency Investment Fund.
Agency operations have been partially funded by advances from the Town, which bear interest At
10% and are repayable on demand, provided that sufficient tax increment revenue funds are
available. These advances are not expected to be repaid in the current fiscal year. For fiscal year
ended June 30, 1997 the Agency paid interest in the amount of S20 ,000.
Time Town issued Cardilcates of Participation (COPS) in the original principal amount of
W60,000 dated August 1, 1992 to finance certain construction costa of the Town's Parking Lot 4
Project, which was constructed on land within the Central Los Gstos Project Area. The COPS are
simile to debt, they allow investors to participate in a share of guaranteed payments which are made
by the Town. Because they are similar to debt, the present value of the total of the payments to be
made by the 'sown is recorded as long -term debt Principal payments are due annually on August 1,
with interest payments payable semi- annually on February i and August 1. The Town has pledged
motor vehicle license fee revenues as collateral for the repayment of the Certificates.
COMPLIANCE REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
ON X4YAGEMENT'S ASSERTIONS
To the Governing Board of the
Redevelopment Agency of the Town of Los Gatos
We have examined the Redevelopment Agency of the Town Los Gatos management's rssertion, included in
its representation letter dated September 25, 1997 that the Agency compiled with Iaws, regulations and
administrative requirements of the State of California, based on the Criteria set forth in Guidolwa For
Compliance Audits of California RadeVeloRment Agencies issued by the State Controller's Office, Division
of Local Government Fiscal Affairs, during the fiscal year ended June 30, 1997. As discussed in the
representation letter, Agency management is responsible for the Agency's compliance with those
requirements. Our responsibility is to express an opinion on the Agency's management's assertion as to the
Agency's compliance based on our examination.
Our examination was made in accordance with standards astablished by the American Institute of Certified
Public Accountants and included examining on a test basis evidence as to the Agency's compliance with the
State's requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion. Our
examinadon does not provide a legal determination of the Agency's compliance with specific requirements.
In our opinion, the assertion of Agency management that the Agency has complied with laws, regulations
end administrative requirements of Section 33080.1 of the Health and Safety Code of the State of California
during the fiats! year ended June 30, I997 is correct in all material respects, based on the criteria set forth in
the Guidelines for Compliance Audits o4 slifomia RedevelepMOM Agmcies issued by the State
Controller's Office, Division of Local Govemment Fiscal Affairs.
September 25, 1997
COMPLIANCE REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
To the Governing Board of the
Redevelopment Agency of the Town of Los Gatos
Los Gatos, California
We have audited the financial atatements of the Redevelopment Agency of the Town of Los Gatos as of and
for the year ended June 30, 1997, and have issued our opinion thereon dated September 25, 1997. We
conducted our audit in accordance with generally accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable auurance as to whether the financial statements are free
of material misstatements.
Compliance with laws and regulations applicable to the Agency is the responsibility of management. As
part of obtaining reasonable assurance as to whether the financial statements are free of material
misstatement, we performed tests of the Agency's compliance with provisions of laws and regulations
contained in the Guidelines For Compliance Audits of Cglifamill n velooment ,agencies issued by the
State Controller's Office, Division of Local Government Fiscal Affairs.
The results of our taste indicated that with respect to the items tested the Agency complied in all material
respects with the provisions referred to on the preceding paragraph. With respect to items not tested,
nothing came to our attention that caused us to believe that the Agency had not complied in all material
respects with those provisions.
September 25, 1997