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2002-190-Approving The 2001-02 Annual Report For The Los Gatos Redevelopment Agency RESOLUTION 2002 -190 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE 2001-02 ANNUAL REPORT FOR THE LOS GATOS REDEVELOPMENT AGENCY WHEREAS: 1. The California Community Redevelopment Law {33080.1) requires every redevelopment :agency to present a report on financial and. housing activity to its legislative body within six months of the end of the .agency's fiscal year. 2. The Annual Report for the Redevelopment Agency consists of an independent financial audit report for the previous fiscal year, a fiscal statement for the previous fiscal year, and a description of the agency's activities affecting housing and displacement. 3. The audit issued by Maze and Associates, attached hereto as Exhibit A, gives an unqualified opinion of the Redevelopment Agency's financial activities includes the auditor's opinion of the agency's operations and financial position, and the agency's compliance with laws, regulations and administrative requirements governing activities of the agency, including all financial activities involving low- and moderate-income housing funds. 4. The Statement of Housing Activity and the Annual Report of Financial Transactions, attached hereto as Exhibits B and C, consist of forms provided by the .State Department of Housing and Community Development. 5. Approval of the.2001-02 Annual Report for the Los Gatos Redevelopment Agency does not constitute a project for purposes of the California Environmental Quality Act ("CEQA") RESOLVED, that the'Town Council hereby approves and adopts the 2001-02 Annual Report for the Los Gatos Redevelopment Agency, attached hereto as Exhibits A, B and C. FURTHER RESOLVED, that the Town Council determines the planning and administrative expenses from the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate- income housing. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on thel6th day of December, 2002 by the following vote.: COUNCIL MEMBERS: AYES: Steven Glickman, Diane McNutt, Joe Pirzynski, Mike Wasserman, Mayor Sandy Decker. NAYS: None ABSENT: None ABSTAIN: None SIGNED• AYOR F THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST.: ~~ fit;-~- `~ ~~ ~~~~ CLERK OF 1'HE TOWN OF' LOS GATOS LOS GA T OS, CALIFORNIA REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMPONENT i.TNIT FINANCIAL'STATEMENTS FOR THE YEARS ENDED .JUNE 30, 2002 AND .2001 E%HIBIT A REDEVELOPMENT AGENCY OF Tl3F, TOWN OF LOS GATOS - -- Component Unit Financial Statements For The Years Ended June 30, 2002 and 2001. TABLE OF CONTENTS Pace. Independent Auditor's Report ........................................................................................................ 1 Component Unit Financial Statements: Combined Balance Sheet -All Fund. Types and Account Groups ............................................................................................................ 2 Combined Statements of Revenues, Expenditures and Changes in Fund'Balances -All Govenunental Fund Types ............................................. 3 Combined. Statement of Revenues, Expenditures and Changes in Fund Balance -Capital Project Funds -Budget and Actual' ......................................... 4 Notes to Component Unit Financial Statements ..................................................................... 5 Combining Balance Sheets.-Capital. Project Funds ............................................................... 9 Combining Statements of Revenues, Expenditures and Changes in Fund Balances -Capital Project Funds ........................................................... 11 Combining Statement of Revenues,. Expenditures and Changes in Fund' Balance -Capital. Project Funds -.Budget and Actual' ......................................... 12 Report On Compliance And. On Internal. Control Over Financial Reporting Based On An Audit Of Financial Statements Performed' In Accordance With Government Auditing Standards ............................ 15 V'AZE & ` ; ASSOCIATES ACCOUNTANCY CORPORAT/ON 1931 San Miguel Drive -Suite 100 Walnut Creek, California 94596 (925) 930-0902 • FAX .(925) 930-0135 INDEPENDENT AUDITOR'S REPORT E-Mail: maze®mazeassociates.com - .. Wehsite; www.mazeassoclates.com To the Governing Board of the Redevelopment Agency of the Town of Los Gatos We have audited the accompanying financial statements of the Redevelopment Agency of the Town of Los Gatos, a component unit of the Town of Los Gatos, as of and for the years ended June 30, 2002 :and 2001 as listed in the table of contents. These component unit financial statements are the responsibility of the Agency's managerrient. Our responsibility is to express an opinion on these financial statements based on our audit.. We conducted our audit in accordance with generally accepted auditing standards in the United States of .America and the standards for financial .audits contained in Government Audit Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the .audit to obtain reasonable assurance as to whether the financial. statements are :free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financia'1 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 opiron, the component unit financial statements referred to above. present fairly in all material respects the financial position of the Redevelopment Agency of the Town of Los Gatos as of June 30, 2002 and 2001 and the results of operations for the years then ended, in conformity with generally accepted accounting principles in the United States of America. In accordance with Government Auditing Standards, we have .also issued .reports dated November 6, 2002, on our consideration of the Agency's internal control structure and on .its compliance with laws and regulations. November 6, 2002 A Professional Corporation R~ELOPMENT AGENCY OF THE TOWN OF LOS G , COMBINED BALANCE SIiEETS ALL FUND TYPES AND ACCOUNT GROUPS. _ _ JiJNE 30, 2002 WirFI COMPARA'INE AMOUN`CS FOR NNE S0, 2001 ASSETS Cash and investments (Note 2) Restricted cash and investments (Note 4) Intergovernmental. receivable Parking Lot # 4 Project (Note 4) Amount available in debt. service. fund Amount to be provided for retirement of general long-term debt. Totai Assets LIABILITIES Accounts payable. Advance from Town of Los Gatos (Note 3) Due to other agencies Pass through obligations Certificates of participation (Note 4) Total' Liabilities FUND EQUTfY Investment in general fixed assets Fund balancesr Reserved for Low. income housing Debt service Unreserved, designated for: Debt service Unreserved, undesignated Total Fund Equity Total Liabilities and Fund Equity TOTALS. (Memorandum Only) GOVERNMENTAL FUND TYPES ACCOUNT GROUPS Capital Debt General General Long- Projects Service Fixed Assets Term Debt 2002 2001 $3,349,947 $5,707,230 $9,057,177 $7,481,408 470,433. 470,431 442,712 7,806 36,646 44,452 90,243 $4,067,708 4,067,708' 4,067,708 $1,925,000 1,925,000 67,235 2,002,325 $3,357,753 $6,214,307 $4,067,708. $1,925,000 $15,564,768 $14,151,631 .$928,874- $2,222,3:98 $3,1S1,Z72 $895,804 1,968,500 1,968,500 1,968,500 1'6,729 16,729 505,836 81,680 81,680 i,560,968 $1,925,000 1;925,000 .2,069',560 928,874. 4,289;307 1,925,000 2,143,181 7,000,668 $4,067,708 2,075,926 470,431 4,067,708 4,067,708 2,075,926 1,418,614 470,431 442',712 1,454',569 l ,454,569 352',953 352,953 1,221,929 2,428,879 1,925,000 4,067,708 8,421,587 7,150,963 $3,357,753 $6,2.14,307 $4,067,708 $ 1,925,000 $15,564,768 $14,151,63'..1 -~ See accompanying notes to component unit financial: statements. 2 ( ~ REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMBINED STATEMENTS OF REVENUES, EXPENDITURES -.- AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR'ENDED JUNE 30, 2002 WITH COMPARATIVE AMOUNTS FOR THE FISCAL YEAR ENDED JiJNE 30, 2001 REVENUES Property tax increment Interest Other Total Revenues EXPENDITURES Capital outlay Project costs Pass through payments Debt service Principal (Note 4) Interest (Notes 3 and 4) Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OPERATING TRANSFERS Operating transfers in Operating transfers (out) Total Operating Transfers EXCESS (DEFICIENCY) OF REVENUES AND TRANSFERS OVER EXPENDITURES Fund balances at beginning of year Fund balances at end ofyear TOTALS GOVERNMENTAL FUND TYPES (Memorandum Onl y) Capital Debt Protects Service 2002 2001 $4,079,598 $4,079,598 $3,232,042 $113,678 415,434 529,112 700,856 1,305 1,305 63,161 114,983 4,495,032 4,610,015 3,996,059 1„99:1.,351 1,991,351 1.,477,109 646,470 646,470 550,657 260,000 260,000 250,440 44:1,570 441,570 479,060 1,991,351 1,348,040 3,339,391 2,757,266 (1,876,368) 3,146,992 1,270;624 1,238,793 1,472,481 67,814 1,540,295 2,879,573 (67,814) (1,472,481) (1,540,295) (2,879,573) 1,404;667 (1,404,667) {471,701) 1,742,325 1.,270,624 1,23:8,793 2,900,580 182,675 3,083,255 1,844,462 $2,428,879 $t,925,000 $4,353,879 53,083,255 See accompanying notes o financial statements 3 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS ~;~ COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30 2002 CAPITAL PROJECTS Variance avora e - .. Budget Actual (iJnfavorable) REVENUES Interest Other Total Revenues EXPENDITURES Capital outlay: Project costs. Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) OPERATING TRANSFERS Operating transfer in Operating transfer (out) $'75,020 $113,678 $38,658 1,305 1,305 75,020. 114,983 39,963 2,568,487 1,991,351 577;136 2,568;487 1,991,3 51 577.,136. (2,493,467} (1,876,368) 617,099 53b,300 1,472,481 936;181 (67,814) 67 814 Total Other financing: sources (uses) 536,300 1,404,667 868',367 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES ($1,957,167) (471,70.1} 51,485;466 Fund balances at beginning of year Fund balances at end of year 2,900;580 $2,428;879 See accompanyingnotesto component unit financial statements 4 .REDEVELOPMENT AG)~NCY OF THE __ 'TOWN OF LOS GATOS Notes To Component Unit Financial Statements NOTE 1-SIGNIFICANT ACCOUNTING POLICIES A. Description of .the Redevelopment Agency and Redevelopment Plan -The .Redevelopment Agency of the Town of Los liatos (tne agency was createa on i.~ecemvcr ~+, 1707 lLiluGl uiG pi VV Redevelopment Law (California Health and Safety Code), for clearance and rehabilitation of areas determined to be in a declining condition in the :Project Area. A Redevelopment Plan was adopted on November 25, 1991 to .provide an improved physical, social .and economic environment in the Central Los Gatos Redevelopment Project Area. As part of the Redevelopment :Plan, the Agency entered into agreements with various taxing authorities which required the. Agency to pass through portions of incremental property taxes to each taxing authority. Expenditures for these pass-through agreements .amounted to $646,470 for the .year ended June 30, 2002. lri addition, as of June 30, 2002 the Agency owed $81,680'in pass-through amounts to other agencies. The Agency is authorized to finance the Plan from various sources, including assistance from the Town, the state and federal governments, property tax .increments, interest income and the issuance of Agency debt. The Agency is an integral part of the Town of Los Gatos and, accordingly, the accompanying financial statements are included as a component of the general :purpose financial statements prepared by the Town. A component unit is a separate governmental unit, agency or nonprofit corporation which, when combined with all other component units, constitutes the reporting entity as .defined in the Town's general purpose financial statements. B. Fund Accounting .In the Combined Financial Statements, these funds are :grouped into the. fund types .and categories discussed below. The financial statements for each individual .fund in each fund type are presented in the Combining Financial Statements section of this report.. GOVERNMENTAL FUNDS Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary and trust funds). Debt 'Service .Funds are used to account for financial resources to be used for the payment of principal. and interest on long-term obligations. ACCOUNT GROUPS Account groups are used to establish accounting. control for the Agency's general fixed assets and principal of its general long-term obligations. Because these assets and liabilities are long-term they .are neither spendable resources nor do they require current appropriation. They are accounted for separately from governmental fund types. C. Basis of Accounting -Refers to when revenues and expenditures are recognized in the accounts and reported in the component unit fmancial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. ~ .CEDEVELOPMENT AGENCY OF THL TOWN OF LOS GATOS Notes To Component Unit Financial' Statements NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental fund types are accounted for using the modified accrual' basis of accounting, under which revenues. are recognized when received, or accrued when they become available and measurable as net current assets. Expenditures are recognized when the. related fund liability is incurred. revenues susceptible to accrual. consist principally of intergovernmental revenues. D. Budgets and Budgetary Accounting -The Agency adopts a budget effective July 1 for the capital projects fund. During the year ended .June 30, 2002 the Agency incurred encumbrances. which are reported as budgetary expenditures. However, since encumbrances represent commitments on open. purchase orders, they are not included as expenditures reported in conformity with. generally accepted accounting principles. NOTT 2 -CASH AND INVESTMENT'S Agency cash is included in a Town-wide cash and investment pool.. Details of the Town's cash and investment pool are. presented. in the Town's general. purpose. financial statements. T'he Town's investment policy and the California Government Code permit investments. in obligations of the U.S. Treasury and its agencies, commercial paper, banker's acceptances, repurchase. agreements,. certificates of deposit,. medium term notes,.. passbook savings. account. demand deposits, mutual funds and' the State of California Local Agency Investment Fund. NOTE 3 -ADVANCE FROM THE TOWN The Town.. advanced $1,968,5.00 to the Agency to partially fund operations.. The advance bears interest at 10% and is repayable on demand,. provided' that sufficient tax increment revenue funds are available. For the fiscal year ended June 30, .2002 the Agency paid the Town $196;850 in interest on this advance. NOTE 4 -REIMBURSEMENT AGREEMENT A. Accounting Treatment T'he Town issued Certificates of Participation (COPsj in the ~ original principal amount of $2,960,000 dated. August 1, 1992 to finance certain construction. costs of the Town's Parking.. Lot 4 Project, which was constructed'. on land within. the Central Lose Gatos Project. Area,. The COPS are similar to debt; they allow investors to participate in a share of guaranteed payments which are made by the Town. Because they are similar to debt, the present value of the total of the payments to be made is recorded aslong-term debt. Principal payments are due annually on August 1, with interest payments. payable semi-annually on February 1 and' August 1. The Town has pledged motor vehicle license fee revenues. as collateral for the repayment of the Certificates. REDEVELOPMENT AGENCY OF THE .TOWN OF LOS GATOS,. .Notes To Component Unit,Financial Statements NOTE 4 -REIMBURSEMENT AGREEMENT .(Continued) To assist the Town in paying the cost of the acquisition andconstruction of the Parking Lot 4 Project, the Town and its Redevelopment Agency entered into a Reimbursement Agreement. Under this agreement, the Agency will use available net tax increment revenues .resulting from the Project's effect on land values to repay the Town for all lease payments made by the Town to the Agency under the lease agreement for the Project. Net tax increment revenues are all taxes allocated to and paid into the :Redevelopment Agency Capital Projects Fund for the Project Area. Reimbursements under this agreement commenced in fiscal 1995-96. Accordingly the COPS have been recorded in the Agency's General .Long-Term Debt Account Group. In addition, the Parking Lot #4 Project, which was constructed with proceeds of the. COPS, has been included in the Agency's financial statements. B. Activity Changes in general long. term debt were as follows: Balance at Balance at Interest Maturity June 30, June 30, Rates .Date 2001 Rerirements .2002 Certificates of Participation 5%-9% 2012 $2,185;000 .$260,000 $1.,925,000 -_ ~-~ Repayment requirements for general .long term debt were as follows at June 30, 2002: Certificates of Year Ending June 30 Participation 2003 $249,895 2004 251,79.5 2005 252,995 2006 248,475 2007 248;500 Thereafter 1,253,500 Total payments due 2,505,160 Less amount representing interest 580,160 Principal amount $1,925,000 The Agency must maintain required amounts of cash and investments with the trustee under the terms of the COPs issue. These funds are pledged as reserves to be used if the Town fails to meet ~.rs obligations under the COPS issue. These reserves totaled. $470,431 and $442,712 respectively, at June 30, 2002 and 2001. The California Government Code requires. these funds to be invested in accordance with Town ordinance, bond indentures or State statutes. All these .funds have been .invested as permitted under the Code. REDEVELOPMENT AGENCY OF T) TOWN OF LOS GATOS __ Notes To Component ITnit Financial Statements NOTE 5 - SUBSEQUEN'P EVENT Cm July 18, 2002, the Town and the Lose Gatos Redevelopment Agency issued. $10,7250,000 in Certificates of Participation, 2002 Series A, at 2.5% to 5.0% interest rates, to finance the acquisition, construction,. rehabilitation, equipping. and improvement of several. capital improvement projects, Principal payments will be due annually on August 1 with interest payments payable semi-annually on February 1 and' August. 1,, comrriencing August 1,; 2003 through. 2031., The Town has pledged lease payments. for the real property and facilities comprised of the Parks and Public Works Service Center and Baseball Field. and Parking Lots No. 1, 2, and 3, as collateral for the repayment of the Certificate. REDEVELOPMENT.AGENCY OF THE TOWN OF LOS GATOS COMBINING BALANCE SHEETS -"' CAPITAL PROJECTS FUNDS JUNE 30, 2002 WITH COMPARATIVE AMOUNTS FOR NNE 30, 2001 _ Housing Redevelopment 'Set Aside ASSETS TOTALS :(Memorandum Only) 2002 2001 Cash and investments $1,274,888 $2,075;059 $3,349,947 $3,744,497 Intergovernmental receivable 7,806 7,806 15,816 Total Assets $1,274,888 $2,082,865 $3,357,753 $3,760,313 LIABILITIES Accounts payable $921.,935 $6,939 $928;8'74 $859,733 Total Liabilities 92.1,935 6,939 928,874 85.9,733 .FUND EQUITY .Fund. balances: Reserved for Low income housing 2;075,926 2,075,926 1,418,614 Unreserved, undesignated 352,953 352,953 1,481,966 Total Fund Equity 352,953 2,075..,926 2,428,879 2,900,580 Total Liabilities and Fund Equity $1,274,888 $2,082;865. $3,3.57,753 $3,760,313 See accompanying notes to component unit financial statements 9 ~` REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS COMBIMNG STATEMENTS OF REVENUES; EXPENDITURES ' -= AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS ' FOR THE FISCAL YEAR ENDED JUNE 30; 2002 WITH COMPARATIVE. AMOUNTS FOR THE FISCAL PEAR ENDED JUNE 30, 2001 TOTALS (Memorandum Only) Housing. Redevelopment. Set Aside REVENUE . Interest SSQ,189 S63,489 5113,678 5270,793 Other 1,305 1,305 63,161. Total Revenue 51,494 63,489 114,983 333,954 EXPENDITURES Capital outlay: Project costs 1,837,068 134,283 1,991,351 1,477,109 Total. Expenditures 1,837;068 154,283 1,991,351 1,477;109 EXCESS (DEFiCIENCl~ OF REVENUES OYEREXPENDITURES (1,785,574) (90;794) (1,876,368): (1,143,155) OTHER FINANCING SOURCES (USES). OPERATING TRANSFERS Operating transfer in 656,561 814,920 1,472,481 2,682;723 Operating transfer (out) (67,8.14)_ (67,814). (196,850). Total other financing sources (uses). 656,561 748,106 1,404,667 2,485,873 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND USES (1,129;013) 657,312. (471,701) 1,342,718 Fund'balances atbeginnting of year 1,A81,966 1,418,614 2,900;580 1,557,862 Fund balances at end of year 5352.953 52.075.926 52.428;879 52.900.580 See accompanying notesto financial statements 11' REDEVELOPMENT AGENCY OFTHE TOWN OF LOS GATOS COMBMING STATEMENT OF REVENUES, EXPENDITURES __ AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2002 REVENUE Interest Other Total Revenue EXPENDITURES Capital outlay: Project costs Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FQJANCDVG SOURCES (USES) REDEVELOPMENT HOUSING SET ASIDE Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget 550,189 550,189 575,020 563;489 (511,331) 575,020 L,303 1,305 31,494 51,494 75,020 63,489 (t 1,331) 75;020 52,064,087 1,837,068 227,019 504,400 154,283 350;117 2,568,487 2,064,087 1,837;068 227,019 504,400 154,283 350,117 2,568,487 (2,064,087 (.1,785,574) 278,513 (429,380 (90,794) 338,586 (2,493,467) OPERATING TRANSFERS Operating transfer in 656,561 656,561 536,300' 815,920 279,620 536,300 Operating transfer(out) (67,814) (67;814) Total other financing ources (uses) b36;561 656,561 136,300 748,106 21.1,606 536,300 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCIlVG SOURCES OVER EXPENDITURES AND USES (52,064,087) (1,129;013) 5935,074 S106,920 657,312 5550,392 .(51,957,167) Fund balances at beginning of year Fund balances at end of year 1,481,966 5352,953 See accompanying notes to component unit financial statements 12 1,418,614 52.075.926 TOTALS Variance .Favorable Actual (Unfavorable). - 5113',678 538,658 1,305 1,305 114,983 39,963 . 1,991,351 577,136 1,991,351 577,1836 (1,876,366} 617,099 1,472,481 936,18 t (67,814} (67,814) 1,404',66T 868,367 (471,701) 51,485,466 2,900,580 52,428,879 13 V'AZE & ~ ASSOCIATES ACCOUNTANCY CORPORATION 1931 San M/guel Drive -Suite 100 Walnut Creek, California 94596 (925) 930-0902 • FAX (925) 930-0135 E-Mall: maze~mazeassociates.com Website: www,mazeassociates.com REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO ~'ERNMENT A UDITING STANDARDS To the Governing Board of the Redevelopment Agency of the Town of Los Gatos, California We have .audited the `financial statements of the :Redevelopment Agency of the'Town of Los Gatos as of and for the year ended June 30, 2002, and have issued our report thereon dated November 6, 2002. We conducted our audit in accordance with generally accepted auditing standards in the United :States of .America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, :regulations, contracts. and grants, noncompliance with which could have a direct and material. effect on the determination of financial statement amounts. Those provisions include provisions of laws and regulations identified by in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller. However, providing an opinion on :compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. 'The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and ,performing our audit, we considered the Agency's internal control over fmancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the .internal control over fmaneial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or •more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and :not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.. This report is intended for the information of the Agency Board, management and federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited. ~ ~ . November 6 2002 /~ 15 A Professional Corporation ~~ HCD ANNUAL REPORT OF HOUSING. ACTIVITY OF COMMUNITY REDEVELOPMENT AGENCIES FOR THE FISCAL. YEAR THAT ENDED 6 / 30 / 02 Agency Name and Address; County of Jurisdiction: Town of Los ~®>I;os Redevelopment Agei~ay - ~t-a~l~r-~ -~i~E-;z~`~~Do~atas; -93..~ California. Redevelopment law (Health and'Safety Code Section 33080, l) requires agencies to annually report their housing activities and maintenance and use of the Low & Moderate Income Housing Fund' (LMIHF) to enable the. Department of Housing and Community Development (HCD) to compile and annually publish a report on redevelopment agencies' housing. activities in accordance with Section. 33080.6. (Note: Pursuant taSeetion 33080.3, submit this form and, if applicable, all completed HCD Schedules, to the State Controller.) Please answer each question below. Your answers determine which HCD SCHEDULES must be completed in order for the agency to full 11 the statutory requirement to report LMIHF housing activity and fund balances for the reporting period. I . Check one of the items below to identify the Agency'astatus at the end'of the reporting period: ^ New (Agency formation occurred' during reporting yeas, No financial. transactions were completed). [~ Active (Financial and/or housing transactions occurred during the reporting year) Inactive (No financial and/or housing: transactions occurred during. the reporting year). ^ Dismantled (Agency adopted an ordinance to dissolve itself), 2, How many adopted proiect areas did .the agency have during the. reporting period?' ~_ How many project areas were merged during the reporting period? ~_ [f the agency has one ormore adopted project areas, complete SCHEDULE HCD-A for each project area. If the agency has no adopted;project areas, DO NOT complete SCHEDULE HCD-A. 3, Within an area outside of any adopted'. redevelopment project area(s): (l) did the agency destroy or remove any dwelling units or displace .any households. over the reporting. period, (2) will the agency displace any households over the next reporting period, (3) did the agency permit the sale of any owner=occupied unit prior to the expiration ofiand use. controls,, and/or (4} did the. agency execute a contract or agreement for the construction of any affordable units over the next two years? ^ Yes. (any question). Complete SCHEDULE HCD-B. No (all questions). DO NOT complete SCHEDULE HCD-8, 4, Did the agency have anv funds in the Low & Moderate Income. Housing Fund during. the reporting period? ,'®. Yes, Complete SCHEDULE HCD-C. ^ No. DO NOT complete SCHEDULE HCD-C. 5, During the reporting period;. were housing units completed within a proiect area and/or assisted b t~gency outside a project. area'? ^ Yes:. Complete all applicable HCD SCHEDULES. D l-D7 for each housing. project completed and HCD SCHEDULE E. No. DO NOT complete HCD SCHEDULES D1-D7 or HCD SCHEDULE E. 6, HCD financial and housing activity information. has been reported using. the method checked' below: Electronic. Report was. completed on-line. "Lock Report" date was: HCD SCHEDULES are not required. Note:. "Lock Report" date. is shown. under "Administrative Area" and "Form History" (https:i/appl .hcd.ca.gov/rda). Forms. All required HCD SCHEDULES A, B, C; D 1-D7, and E are attached; To the best of my knowledge, the representations made above and. all HCD information reported are correct. Date Signature of Authorized Agency Representative Finance Director Title Telephone Number IF NOT REQUIRED TO REPORT BASED ONABOVEANSWERS, ONLYSUBMIT THIS PAGE. IF REQUIRED TO REPORT, SUBMIT THIS PAGE AND EITHER. ALL HCD SCHEDULES (APPLICABLE SCHA-E)` OR PROOF OF ELECTRONIC REPORTING (accessible at: httn://www:hcd.ca.QOV/rda/1 SUBMIT TO THE STATE CONTROLLER Division of Accounting and Reporting Local' Government. Reporting Section P.O. Box 942850; Sacramento, CA 94250 California Redevelopment Agencies -Fiscal Year 2001-2002 Cover (7/1/.02) HCD-Cover Page I of I EffiIBIT B SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended ti / 30 Town of Los Gatos RDA Agency Name: Project Area Name; /02 Central Los Gatos Preparer's Name, Title: Steve. Co~ay, Finance D. Preparer's E-Mail Address: Conway@town.los-gatos.ca.us Preparer's Telephone No: (408354-b$~8 Preparer's Facsimile No: (408) 't99-5786 I . Project Area Information GENERAL 'INFORMATION a. 1. Year l'"plan for project area was adopted: 199.1 2. Year that plan was last amended (if applicable); 3. Current expiration of plan: 12 / 31 > 31 mo day yr b. Ifproject area name has changed; give previous name(s) or number; N/A c. Year(s) of any mergers of the project area: N/A [dentify .former project areas that merged: d. Year(s) project area plan was amended and real property was either: (1) added: N~ , (2) removed: 2. Affordable. Housing.Replacement and/or Inclusionary or Production Requirements (Section 33413). Pre-1976 project areas not subsequently amended after 197:5: Pursuant to Section 33413'(d), only Section 33413(a) replacement requirements apply to dwelling units destroyed or removed after .1995., The Agency can choose to-apply all or part of Section 33413 to a project area plan adopted before 1976.. If the agency has elected-to apply all or part of Section 33413, provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: N//A / Resolution Scope (applicable Section 33413 requirements mo day yr Post-1975 project areas and geographic areas added by amendment after 1975 to pre-1976 project areas: Both the.replacement and inc{usionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-Alines 3a(1), 3b-3f, and 3i. can be taken from what is reported to the State Controller's. Office (SCO) on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report, except for the reclassifying ofTransfers-In from Internal Funds and .the reporting of Other Sources as discussed below: Transfers-In .from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a-j. For example, report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount'by reporting gross tax increment on HCD-A, :Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C, Line 4c. Do :not resort "net" funds transferred fro_m_the Debt Service Fund on HCD-A,.Line 3a(3J when reaortine debt service expenditures on HCD-C,'L.ine 4c. Other'.Sources: Non-GAAP {.Generally Acceptable Accounting Principles) revenues such as from land sales for those agencies using the .Land Held for Resale method to .record land sales should be reported on .HCD-A Line 3d. Housing fund receipts for the repayment of loan,principal should be included on HCD-A Line 3h. California Redevelopment Agencies -Fiscal Year 2001-2002 HCD-A sch A (~n~oz) Page 1 of 6 Agency Name: Town. of LQS Gatos RDA Project Area Name:. Central Los Gatos ProiectArea. Housine Fund. Revenues and Other Sources ' 3. Report all revenues and other sources of funds from this. project. area which accrued to the Housing, Fund' over the reporting year. Any income related toagency-assisted housing located outside the projectarea(s) should'be reported as "Other Revenue" on Line 3j. (of this Schedule A), if this project area is named as beneficiary in the authorizing resolution.. Any other revenue sources-not reported on lines 3a.-3 i., should also be reported on Line 3j. Enter on Line 3a(l) the full 100% of gross. Tax Increment allocated'. prior to applicable pass through o6 funds and deductions for fees (refer to Sections 33401, 33446, & 33676). Compute 20% of gross Tax Increment and enter the amount on Line 3a(2). Next, report the amount of Tax Increment set-aside before any exemption and/or deferral (if amount set-aside is less than 20%, explain the difference). [f any amount of Tax Increment was. exempted or deferred,. in addition to completing lines 3a(4) and/or 3a(5), complete Line 4 and/or Line 5. To determine the amount of Tax Increment deposited to the Housing Fund [Line 3a(6)], subtract allowable amounts exempted [Line 3a(4)] or deefetred [Line 3a(5)] from the actual amount allocated to the Housing Fund [Line 3a(3)], a, Tax Increment: (l) 100°io of Gross Allocation: $ 4 , 079 , 598 (2) Required 20% Housing Fund'set-aside (Line3a(1) x 20%); $ 8'15,920 ' 815,920 * (3) Actual amount allocated to Housing Fund $ • * If less than 20% of the Gross Tax Increment (see 3a(2) above) is being. • set-aside in this project area in accordance with. Section 33334.3(1), identify the project area(s) contributing the difference. Explain any other reason(s): (4) Amount. Exempted [Health & Safety Code Section 33334.2] (if there is an amount exempted, also complete question r`#h, next page); ($' ) (5) Amount Deferred! [Health. & Safety Code Section 33334.6] (ifthere is arramount deferred, also complete question #5, next page):. ($ ) (6) Total deposit to the Housing Fund [result of Line 3a(3) through 3a(5)]: $ 815,920 b. Interest Income; $ 63 , 489 c. Rental/Lease Income (combine amounts separately reported to the SCO): $ - d„ Sale of Real Estate: $ e. Grants (combine. amounts separately reported to the. SCO): $ f l3ond' Administrative Fees: $ g. Deferral Repayments (also complete. Line Sc(2) on the next page):. $ h. Loan Repayments: ~ ~ $ i. Debt. Proceeds: $ j, Other Revenue(s) [Explain and identify amount(s)]: $ $ k. Total Project Area Receipts Deposited to Housing Fund (add' lines 3a(6). through 3j.); $ 879 , 409 California Redevelopment Agencies- Fiscal Year 200f-2002 Sch A (7!t/02) HCD-A Page. 2 of 6 __ CALCULATION OF AVAILABLE REVENUES TOWN OF LOS GATOS REDEVELOPMENT AGENCY CENTRAL PROJECT AREA TAX YEAR 2002-03 RECONCILIATION'DATES: July 1, .2001 to June 30 , 2002 1. Beginning Balance, Available Revenues $ 3,335,377 2. Tax Increment Received-Gross ~ 4,079,598 All Tax Increment Revenues , to include any Tax Increment. pass through to other local taxing agencies 3. All Other Available Revenues Received 1,306,037 4. Revenues from any other source, included - in column E of the Reconciliation Statement, but not included in (1-3) above 5. Sum of Sines 1 through 4 8,72.1;012 6. Total .amounts paid against indebtedness in previous year. (p + E on Reconciliation Statement) 1,886.,790 7. Available Revenues., End of Year (5-6) 6,834,222. FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER'PAGE, TINE 4 NOTES Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts pass through to otheriocal taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund. will be washed in the above calculation, and therefore omitted from Available Revenues at year end.. Item 4 above: This represents any payments form any .source other than Tax Increment OR available revenues. For instance, an .agency funds a project with a bond issue. The previous SOI .included a Disposition and Development Agreement (DDA) which was fully satisfied with these .bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the "other" column (Col f), but.with funds that were neither Tax Increment, .nor"Available Revenue; as defined. The amounts used to satisfy this'DDA would be included online 4 above. in orderto accurately determine ending "Available ..Revenues". Agency Name: ~ew~of L~~ ('atn~ RnA Project Area Name: Central Los Gatos Exemption(s) -" 4. a. If an exemption was claimed on Page 2, Line 3a(4) to deposit less than the required amount,. complete the following information: Check. only one of the Health. and. Safety Code Sections below providing. a basis for the exemptions ^' Section 33334.2(a)(1); No need in community to increase/improve supply of lower or moderate income housing. ^ Section 33334.2(a)(2): Less than 20% set-aside is sufficient to meet the need, N'/A ^ Section 33334,2(a)(3): Community is making substantial effort equivalent in value to 20% set-aside and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this. funding. Note: Pursuant to Section 33334.2(a)(3)(C), this exemption. expired on June 30;.1993 but contracts entered into prior to May 1, 1991 may not be subject to the. exemption sunset. Other: Specify code section and. reason(s): N/A b. For any exerriptionclaimed on Page 2, Line 3a(4) and/or Line 4a above, identify: Date Ghat initial (151) findine was adopted; / / Resoluton# Date sent to HCD; / / mo day yr mo day yr Adoption date. of reportingLyear finding: / / Resolution # Date sent. to HCD: / / mo day yr mo day yr Deferral s 5, a. Specify the authority for deferring any set-aside on Line 3a(5), Check onl one Health and Safety Code Section boxes: ^ Section 33334;6(d): Applicable to project areas approved before 1'986 in which the required. resolution was sent to HCD .before September 1986 regarding. needing tax increment to meet existing. obligations, Existing obligations can include those .incurred after 1.985, if net proceeds were used to refinance pre-1986 listed obligations. Note: The previous allowable deferral under Section 33334ai(e) expired. It was only allowable in each fiscal year prior to July 1, 1996 with certain restrictions. ^ Other: Specify code Section and reason; b. For any deferral claimed on Page. 2, Line 3a(5) and/or Line Sa above,. identify: Date that initiaP (1"1 finding was adopted: ! / .Resolution # _ mo day yr Date sent to. HCD: Adoption date of reporting year findine: / / Resolution mo day yr Date sent to HCD mo day yr mo day yr c. A deferred set-aside pursuant to: Section 33334'.6(4) constitutes an indebtedness to the Housing. Fund. Summarize the amount(s): ofset-aside deferred over the rennrtinu ~Pa~ an.t rmm~lafivafv a~ ..F aho a«,a ,.F'.t.,...,._,....:__ -.___. - - - - - -- --r _----'o ~_.... Amount-ofPrior Cumulative Amount Amount Deferred Deferrals Repaid Deferred (Netof Any Fiscai Year This Reporting FY During Reporting FY Atr~ount(sj Repaid) (1) Last: Reporting. FY $ (2) This Reporting. FY $ $ $ ~ . ,.~ ~ ...,..,u<< ~r u~,.~N.~~ v~ ue~erreu ser-asrae snoula also be shown on HC'U-C Line 8a ~ If the prior FY cumulative deferral. shown. above differs from what~was reported on the last HCD report (HCD-A and HCD-C), indicate the amount of difference and the reason; Difference: S Reason(s): C'alilbnua Redevelopment Agencies -Fiscal Year 2001-2002 .- HCD-A scn A t' ~ o2r Page 3 of b Agency Name: Town of Los-Gatos RDA Project Area Name: Central Los Gatos Deferrals (continued) 5, d. Section 33334.6(8) requires any agency which.defers set-asides to adopt a plan do eliminate the deficit in subsequent years. If this agency has deferred set-asides, has itadopted such a plan? Yes 0 No ^ If yes, by what date is the deftcit to be eliminated? / / N/A mo day yr if yes, when was the original plan adopted for the claimed deferral? I mo day yr ' ddentify'Resolution # Date Resolution sent to HCD / / mo day yr When was the last amended plan adopted for the claimed deferral? / / mo day yr Identify Resolution # , Date Resolution sent to HCD 1 / mo day yr Actual Project Area Households Displaced and Units and Bedrooms Lost Over Reportin:? Year: 6. a. Redevelopment Project Activity. Pursuant to Sections33080,4(a)(1)avd (a)(3), report by income category the number of elderly and nonelderly Households .permanently displaced and the number of units and bedrooms removed or destroyed, over the r~ortine year, (refer to Section 33413 for unit and bedroom replacement requirements). N,....hn.• nFi-inucahnldc/l lnitc/Rnrlrnnm5 N/A Project Activity VL L M AM . Total Households Permanently Displaced -Elderly Households Permanently Displaced -Non Elderly Households-,Permanently Displaced -Total Units Lost (Removed or Destroyed) and'Required to be Replaced Bedrooms'.Lost (Removed or Destroyed) and Required to be Replaced Above Moderate Units Lost That Agency is Not Required o Replace Above Moderate Bedrooms Lost That Agency is Not Required to Replace b. Other Activity. Pursuant to Sections 33080.4(a)(1)and (a)(3) based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a, report by income category the number of elderly and nonelderly households permanently displaced over the reportingyear: N..mhn.• nfi-rnn cahnlAc N/A Other Activity V4. L M AM .Total Households Permanently Displaced -Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced -Total c:. As required in Section 33413.5„ identify, overihe reporting_year, each replacement housing plan required tobe adopted before the .permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported on dines 6a. and 6b. Date / 1 Name of Agency Custodian mo day yr . Date / / Name of Agency Custodian. mo day yr Please attach a separate sheet of paper listigg any additional housing.plans-adopted. {'alifom,a Redevelopment Agencies -Fiscal Year 2001-2002 -- 'HCD-A sct, :~ ~' i ozl Page 4 of 6 (~ Agency Name: Town of Los Gatos RDA Project Area Name: Central Los Gatos Estimated Proiect Area Households to be Permanently Disalaced Over Current Fiscal Year; T. a. As required in Section 33080.4(x)(2) for a redevelopment project of the agency, estimate, over the current fiscal year„the number of elderly and nonelderly households, by income category, expected to be permanently displaced. (Note: actual displacements will be reported for the next reporting year on Line 6). Numher of Hnncrhnlrlc N/A Project Activity ~ ~ VL , L M AM Total Households Permanently Displaced -Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced -Total b. As required in Section 334 t3.5, for the current fiscal year;. identify each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting. the households. reported in 7a. Date C F Name of Agency Custodian mo day yr Date / / Name of Agency Custodian mo day yr Please attache a separate sheet of paper listing any additional. housing. plans adopted. Units Develoned~ Inside the Proiect Area to Fulfill. Requirements of Other Proiect Area(sY 8. Pursuant to Section 33413(b)(2)(A)(v), agencies may choose one or more project areas to fulfill' another project area's requirement to construct new oc substantially rehabilitate dwelling units, provided the agency conducts a public hearing and finds, based on substantial evidence, that the aggregation of dwelling units in one or more project areas will not cause or exacerbate. racial, ethnic, or economic segregation. N~~ere any dwelling, units in this project area. developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units?' ^ No. Q Yes., Date initial finding was adopted? / / Resolution # Date sent to HCD: / /_ mo day yr mo day yr Number of Dwellin Units • Name of Other Project Area(s): VL L M Total Calirurnia Rede~ elopmeni Agencies- Fiscal S'ear2001.2002 -- HCD''-A Sch A c' t o:~, Page 5 of 6 :'lgency Name: Town of Los Gatos RDA ' Project Area Name: Central Los Gatos Sales of Owner-Occupied Units Inside the Project Area Prior to the Expiration of Land Use Controls N/A 9. Section 33413(c)(2)(A) specifies that pursuant to an adopted program, which includes but is not limited to an equity sharing program, agencies may permit .the sale ofowner-occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3) years from the date the unit was sold, expend funds to make another unit equal in affordability, at the same income level, to the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied units during the reporting year? ^No Yes' $ Total Proceeds From Sales Over Reporting Year Number of Units SALES INCOME LEVEL VL' L M ' Total Units Sold Over Reporting Year b. Were reporting year funds spent to make units equal in affordability to units sold over the .last three reporting years? Total Proceeds From Sales Over Reporting Year Number of Un its SALES INCOME .LEVEL VL L ~ M Total Units .Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Bold One Reportin Yr Ago Units Made Equal This Reporting Yrto Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Uriits Sold Three'Reporting Yrs Ago Affordable Units to be Constructed dnside the'Proiect Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting year, Identify the project and/or contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated. on HCD-C, .Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT'REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As,_B, OR Ds. N/A Col A Col B Col C Col D Col E' Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date w/in 2 rs of Col B Line 6a Line 7a VL L M . Total $ $ $ $ Please attach a separate sheet of paper to list additional information. Cahfurnia ftede~ clopment Agencies -Fiscal fear 200.1-2002 .Sch A 1' 102) Equal Units. ^No ^Yes -- HCD-A Page b of b __ ~ SCHEDULE HCD-C Agency-wide Activity for Fiscal Year Ended 06 ~ 30 ~ 02 Agency Name: Town of T;ns Gatos RDA County; Santa Clara ~Q~ Preparer'sName,Title:~te-ve 6o$wa~-, Finanrp DirPreparer'sE-MailAddress:sco~ay@town.los-gatos.ca.us Pre arer's Tele hone No; - (408) 354-6828 (408) 399-5786 P P Preparer's Facsimile No: Low & Moderate Income. Housing Funds Report on the "status. and' use of the agency's' Low and Moderate Income Housing Fund," Most information reported here should be based on informationYeported to the State Controller,. L. Beginning Balance (Use "Net Resources Available" from last year's report to HCD) $ ' 1,418,614 a. If BeeinninQ Balance requires adiustment(s) identify the reason and amount for each adjustment: Use < $ > for negative amounts. or amounts to be subtracted ' $ b; Total'Adjustment(s) (indicate whether positive or <negative>) c. Adjusted Beginning Balance [Beginning. Balance plus + or minus <-> Total Adjustment(s)] Project Area(s) Receipts. and Housiing Fund Revenues a. All Project Areas, Total' Deposits jSum of amount(s) from. Line 3k.,HCD-A(s)] b. Other revenues not reported on .Schedule HCD-A(s) [Identify source(s) and amount(s)]:;. c. Total Housing Fund Revenues Total Resources (Line lc. +Line 2a+Line 2a) $ 1,418',61.4 $ 879,.409 $ 2,,298,023 NOTES: Many amounts to report as Expenditures and Other Uses (beginning on the. next page). should be taken from amounts reported to the: State Controller's Office (SCO). Review the SCO's Redevelopment Agencies Financial Transactions Report. Transfers-out to other internal funds: Report the specific use of all transfen•ed funds on applicable lines 4a.-k of Schedule. C. For example, transfers from the Housing. Fund'to the: Debt Service Fund. for the repayment of debt. should. be reported on the applicable item comprising HCD-C Line 4c, providing gross tax increment was reported on Sch-As, Any transfers. out of the Agency (for example: the transfer of excess surplus funds to a county Housing Authority) should'. be reported on HCD-C Line 4j(2). Other Uses; Non-GAAP (Generally Accepted Accounting Principles) recording of expenditures such as land purchases for certain agencies using the Land Held for Resale method to record land'purehases should be reported.on_HCD-C Line 4a(I), Money spent on loans from the Housing Fund. should be included' in HCD-C lines 4b., 4f, 4g,, 4h„ and 4i as appropriate. The statutory cite pertaining to Community RedevelopmenCLaw (CRC) is provided for preparers to review to determine the appropriateness of Low and Moderate Income Housing Fund (CHINE} expenditures and other uses. HCD does not'represent that line items identifying atty expenditures and other uses are allowable. CRL is accessible on the Internet /k~ebste: Init~: ~~ ~~ ~~ .Icginfc~.~~a.a~>v (CalifarnraLax~)/ beginning with Section 33000 of the Heath and Safety Code. $. C'ahfonua Rede~elapmenv Agencies - Fiscal Year 2001-2002 HCD-C srh c' ~~ ~ o2r Page. 1 of 8 Agency Name: Town of Los Gatos RDA 4. Expenditures and Other Uses a. Acauisition of Property & Buildine Sites f33334.2(e)(1)1 & Housine f33334.2(eJ(611: (1) Land Assets (Investment -Land Held for Resale) * $ (2) Housing Assets (Fixed Asset) * $ (3) Acquisition Expense $ (4) Operation of Acquired Property $ (5) Relocation Costs $ (6) Relocation Payments $ (7) Site Clearance Costs $ (8) Disposal Costs $ (9) Other [Explain and identify amount(s)]: $ $ $ * Reported to SCO as part of Assets and Other Debts (10) Subtotal Property/Building Sites/Housing Acquisition (Sum of Lines 1 - 9) $ p 'b. Subsidies from'Lowand Moderate IncomeHousine Fund'(LMIHF): (9) l"Time Homebuyer Down Payment Assistance $ (2) Rental Subsidies $ (3) Purchase of Affordability Covenants [33413(b)2(B)] $ (4) Other [Explain and identify amount(s)]: • $ $ $ (5) 'Subtotal Subsidies from LMIHF (Sum of Lines 1 - 4) $ U c. Debt Service [33334.2(el(91~ :Report LMIHF's share of debtservice. 'If paid from Deb t Service Fund, ensure ":gross" tax increment is reported on H CD-A(s) Line 3a(1). (1) Debt Principal Payments (a) Tax Allocation,. Bonds & Notes $ {b) Revenue Bonds & Certificates of Participation $ {c) City/County Advances & Loans $ (d) U. S, State & Other Long-Term Debt $ (2) Interest Expense ~ $ (3) Debt Issuance Costs $ (4) Other {Explain and .identify amount(s)]: $ $ (5) :Subtotal Debt Service (Sum of Lines 1 - 4) $ 0 d. Planning and Administration Costs [33334:3(el(1))_; 149, 103 (1) Administration Costs . {2) Professional Services (non project specific) $ . (3) Planning/Survey/Design (non project specific) $ (4) Indirect Nonprofit Costs [33334.3(e)(1)(B)] $ {5) Other [Explain and identify amount(s)]; $ $ (6) Subtotal Planning and. Administration (Sum of Lines 1 - 5) $ 11Egy 103 Califomi:~ Redevelopment Agencies -Fiscal Year 2001.2002 HCD-C sin c' i~ i'o~~ Page 2 of8 Agency Name: Town of Los Gatos RDA 4. Expenditures and Other Uses (continued) e. On/Off-Site Improvements j33334,2(e)(2)] Complete item 13 f Housing Constructionj33334,2(e)(5)] g. Housing Rehabilitation [33334.2(e)(7)] h. Maintenance of Mobilehome Parks [33334,2(e)(10)] i. Preservation of At-Risk Units [33334,2(e)(I l)]' j. Transfers Out of Agency (1) For Transit village Development Plan (33334.19) $ (2) Excess. Surplus [33334. l2(a)(1)(A)] $ (3') Other (specify code section authorizing. transfer and amount). A. Section $ B, Section. $ Other Ttansfers Subtotal $. (4) Subtotal Transfers Out of Agency (Sum of j(L) through j(3)} $ 0 k. Other Expenditures and Uses. [Explain. and identify amount(s)]; Transfers out to RDA Debt Service $ 67,814 Subtotal Other Expenditures and' Uses $ 67, 814 1• Total Expenditures and. Other Uses (Sum oflines 4a.-k;) $ 222,.097 5~ Net Resources Available [End of Reporting Fiscal Year]. [Page 1, Line 3, Total Resources minus Total Expenditures and Other Uses on Line 4.1.] $ 2 ,.075.926 6. Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment. of legal contract(s) $ or agreement(s). See Section 33334,12(8)(2) for definition, Refer to item !O on Sch-A(s) and item 4 on Sch-B.. b, Unencumbered Balance (Line 5 minus Line6a): Also enter on Page 4, Line l la, $ 2..075.926. ~~ Designated/Undesignated Amount of Available Funds A Designated Amount of Line 6b. budgeted/planned'to use near-term $ Refer to item 10 on Sch-A(s) and item. 4 on Sch-B b. Undesignated Amount of Line 6b. not yet budgeted/planned to use $ n 8 9. Other Housing. Fund Assets (not included as part of Line. 5) a. Indebtedness from Deferrals. of Tax Increment (Sec. 33334.6) {,refer to Sch-A(s), Line Sc (2)], $ b. Value of Land' Purchased with Housing.Funds and Held for Development of Affordable Housing: Complete Sch-C item 14, $ c, Loans Receivable for Housing Activities $ d, Residual Receipt Loans (periodic/fluctuating payments) $ e. ERAF Loans Receivable {all years) (Sec. 33681): $ f: Other Assets [Explain and identify amount(s)]: ' ~ g. Total Other Housing; Fund Assets (Sum of lines 8a.-f.) $ 0 Tl1TA 1 l~llNil G'(ll IiTVn ~ o c riot no~,,..~,.o~ n.,.,;1.,wto~ a4,. rr„t.,i m+t,e. [a,..,~t..,, ^,..,a n~~ot~iR ..~ ...L ..,...~ ..~ ..,... r~.,..,,, ., ,,.,,.....~.,,,,.,,,~ ..............~ ~ ~b ...,.u, .,...,,....,...,...b ....... , .~,.,w,- 2 ~ 075 , 926 Compare. Line 9 to the below amount reported to the SCO (Balance Sheet of Redevelopment Agencies FinanciaLTi-ansactions Report. [Explain differences and identify amount(s)]: $ $ ENTER. LOW-MOD FUND TOTAL EQUITIES (BALANC>v SHEET) REPORTED TOSCO $ C'alifomia Rede~elopmenrAgencies -Fiscal Year 2001-2002 HCD-C sin c t~ ~ 02> Page 3 of 8 Agency :Name: Town of Los Gatos )tDA Excess Surplus Information Pursuant to Section 33080.7 and Section 33334.12(g)(l ), report on'Exeess Surplus that is required to be determined on the ..first day of a fiscal year. Excess Surplus exists when the Adjusted Balance exceeds the Qreater of: (1) $1,000,000 or (2) the aggregate amount of tax increment deposited to the Housing Fund during the four prior fiscal years. Section 33334,12(g)(3)(A) and (B) .provide that the Unencumbered Balance can be adjusted for: { 1) any remaining revenue generated in the reporting year from unspent debt proceeds and (2) if the land was disposed of during the.reporting year to develop affordable housing, .the difference between the fair market value of land-and the value received. The Unencumbered Balance: is calculated by subtracting encumbrances from Net Resources Available. "Encumbrances" are funds reserved and committed pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities [Section 33334.12(g)(2)j, 'For Excess Surplus calculation,purposes, carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the :first day of the reporting fiscal year. Determine which is larger: {1) $] million or (2) the total of tax increment deposited over the prior tour years. Subtract the largest amount from the Adjusted Balance and, if positive, report the amount as Excess Surplus. CO. Excess Surplus: Complete Columns 2, 3, 4, & 5 to calculate Excess Surplusfor the reportingyear. Columns 6 and 7 track prior years' Excess Surplus. .Column l Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Prior and Current Reporting Years Sum of Tax Total Tax Increment 'Increment .Deposits Over Deposits to Prior Four Housing Fund FYs Current Reporting Year 1'S' Day Adjusted Balance Current Reporting Year 1'S1 Day Excess Surplus Balances .Amount $xpended/Encumbered Against FY Balance of ' Excess Surplus as of End of Reporting Year Remaining .Excess Surplus for Each Fiscal Year as of End of Reporting Year Rpt Yrs Ag $ 226 560 $ $ $ Rpt Yrs Ago $319,524 $ $ $ Rpt Yrs Ago $424,612 $ $ $ Rpt Yr Ago $ 714, 223 $ $ $ Sum of Column 2 Last Year's Sch C Col 4 minus: larger Current AdiustedBalance ofCol3or$tmm .Reporting {report positive.$) Year $ 1,b84,91 $ 1,418,61 $ 0 $ $ 1 1. Reporting Year Ending Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance (End of Year) [Page 3, Line 6b] ~ $ ~ 75 Q9F, b. If eligible, adjust the Unencumbered Balance for: (l) Debt Proceeds[33334.12(g)(3)(B)]: Identify uns ent debt proceeds and related income remaining at end of reporting year $ (2) Land Conveyance Losses [(33334.12(g)(3)(A))j: Identify reportingyear losses from sales/grants/leases of land acquired with low-mod funds, if 49% or more of new or rehabilitated units will. be affordable to lower-income'households $ 12. Adjusted Balance (for next year's determination of Excess Surplus) [Line l la minus sum of ] lb(1) and l lb(2)j $ 2.075.,926 Note: Uo not enter Adjusted Balance'in Co14. It is to be reported as nextyear's 1st day amount to determine Excess Surplus a. if there is remaining Excess Surplus from. what was determined on the first day ofthe reporting year, describe the agency's.plan (as specified in.Section 33334.10) for transferring, encumbering, or expending excess surplus: b. If the plan described in 12a. was adopted, .enter the plan adoption date: Cahlorma Rede~•edopment Agencies • Fiscal Year 2001.2002 soh c't' i•o2t / /_ mo day yr HCD-C Page 4 of 8 Agency Name: Town of Los Gatos RDA Miscellaneous Uses of Funds 1' 3. if an amount is reported in 4e., pursuant to Section 33080.4(a)(6), report the. totaf number of very low=; low-, and moderate-income households that directly benefited from expenditures for onsite/offsite improvements which resulted' in either new construction,. rehabilitation, or the. eliminatiomof health and safety hazards. (Note: 1f Line 4e of this schedule does not show expenditures for improvements, no units should'.be reported here.) Income Level Households Constructed Households Rehabilitated Households. Benefiting from Elimination of Health and Safety Hazard Duration of Deed Restriction Very Low ' Low Moderate 1.4. if the agency is holding land for future housing development (refer to Line 8b), summarize the acreage (round to tenths, do not report square footage), zoning, date of purchase, and the anticipated start date for the housing. development, ' No. of Purchase Estimated' Date Site Name/Location* Acres Zoning ' Date Available Comments Please attach a separate sheet of paper listing any additional'. sites not reported above. 15. Section 33334,13 requires agencies which have. used the. Housing.. Fund to assist mortgagors in a homeownership mortgage revenue bond program, or home financing program, described in that Section, Co provide the following information: a. Has your agency used'. the authority related to definitions of income or family size adjustment factors provided in Section. Yes ^ No ^ Not Appheable ,~ b. Has the agency complied with requirements in Section 33334.13(b) related to assistance for very low-income households equal to twice that provided for above moderate=income households?' Yes ^ No ^ N'ot Applicable '~' C'aliforniu Rede~elnpmenl Agencies • Fiseaf Year 2001-2002 HCD-C scat C (~ ~ o^_) Page. 5 of 8 .Agency Name: ~ownr-of Los Gatos .R.IaA. 16. Did the Agency use non-LMIHF funds as matching funds for the Federal HOME or HOPE program during .the reporting period? YES ^ NO Ifyes, please indicate the amount of non-LMIHF funds that were used for either HOME or HOPE program support. HOME$ NOPE$ 17. 'Pursuant to Section 33080:4(a)(11),tbe agency shall maintain adequate records to identify the date and amount of all LMIHF deposits and withdrawals during the reporting period, To satisfy this requirement, the Agency should keep and make available upon request any and all deposit and withdrawal information. DO NOT SUBMIT RECORDS OF DEPOSiTStWITHDRAWALS. Has your agency made any deposits to or withdrawals from the LMIHF? Yes ~, No ^ If yes, identify the document(s) describing the agency's deposits and withdrawals by listing for each document, the following {attach additional pages of similar information as necessary): Pentamation Financial System Transaction Report Name of document: Date of document: 06/ 30 / 02 mo day yr Name of Agency Custodian (person): Steve (:omaa~, Finance Director Custodian's telephone number: ~tc.U.8.~ 3:511-6.88 Place where record can be accessed: 16110 R Mafia 5t Los Gatos, Ca 95030 Name of document: Date of document: / /_ mo day yr - Name of Agency Custodian (person): Custodian's telephone number: Place where record can be accessed: 18. Use of Other Redevelopment Funds for Housing Please briefly.describe the use of any non-LMIHF redevelopment funds:(i.e., contributions from the other 80% of tax increment revenue) to construct, improve, assist, or preserve housing in the community. N/A 19. Suggestions/Resource Needs Please provide suggestions to simplify and improve future agency reporting and identify any training, information, and/or other ..resources, etc. that would help your agency to more quickly and effectively use its housing or other funds to increase, improve, and preserve affordable housing? None 20. ,Annual Monitoring Reports of Previously Completed Proiects/Programs were all Annual Monitoring Reports received for all prioryears' projects/programs?: Yes No ^ Califomui Rede~elopmeni Agencies -Fiscal Year zooa•zoo2 HCD-C sct, c' i' i opt _ Page 6 of $ i -- SCHEDULE HCD-E CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION BASED ON SPECIFIED HOUSING ACTIVITY DURING THE REPORTING YEAR Agency: Tnrm of T.na (~atnr: RpAE+yaln=mont ~enc~ Name of Project or Area (if applicable,'Jist "Outside" or "Summary": Central Los Gatos Complete this form to report activity separately by project or area or to summarize activity for the year. Report all new construction and/or substantial rehabilitation. units from Forms D2 through D7 that were: (a) developed by ..the agency and/or (b):developed only in a project area by a nonagency person or entity. PART I [H&SC Section 33413(6)(1)] AGENCY DEVELOPED UNITS DURING THE REPORTING YEAR BOTH INSIDE AND OUTSIDE OF A PROJECT AREA 0 1. New Units Developed by the AQencY 0 2, .Substantially Rehabilitated Units .Developed by the Agency 0 3. Subtotal -Baseline of A Developed Units (add lines 1 & 2) 0 4, Subtotal of Increased Inclusionary Obligation (Line 3 x 30%) (see Notes 1 and 2 below) ' 0 5, Very-Low Inclusionary Obligation Increase Units .(Line 4 x 50%) 0 PART II [H&SC Section 33413(6)(2)] NONAGENCY DEVELOPED UNITS DURING THE REPORTING YEAR DNLY INSIDE A PROJECT AREA 6. New Units .Developed by Any Nonag_encX Person or Entity 0 7. Substantially Rehabilitated Units Developed by Any Nonagency Person or Entity 0 $. Subtotal - Baseline of Nonag_encX Developed Units (add lines 6 & 7) 0 9. Subtotal of Increased Inclusionary Obligation (Line 8 x 15%) (see Notes 1 and 2 below) 0 0. Ven Low Inclusionary Obligation Increase (Line 9 x 40%) PART III REPORTING YEAR TOTALS 1 1. Total Increase in Inclusionary Obligation (add .lines 4 and 9) D 12. Very Low Inclusionary Obligation Increase (add lines 5 and 10) :(Line 12 is a subset of Line 11) 0 *+*++++**:*+++++++++++++++++++++++++++++++++++++*+rt+++*+++++++++++++++++++*++++++++++++++++++++++++++•++++++++++++++++++++++*++ ,'VOTES: 1. Section 33413(6)(1),. (2), and (4) require agencies to ensure that applicable percentages (3D% or IS%) o all (market-rate. and affordable) "new and substantially rehabilitated dwelling units" are made available at affordable housing cost within 10 year planning periods. Market-rate units: units not assisted with low-mod funds and .jurisdiction does not control affordability restrictions. Affordable units: units: generally restricted for the longest feasible time beyond the redevelopment plan's land use controls and jurisdiction controls, affordability restrictions. AQency developed units: market-rate units can not exceed 70 percent and .affordable units must be at least 30 percent; .however, all units assisted with low-mod funds must be .affordable. 1VonaQency developed .(project :area) units: market-rate units can not exceed 85 percent and affordable units must be at least IS percent. 2. Production requirements may be met on a project-by project basis or in aggregate within each 10 year planning period. The percentage of affordable units relative to total units required within each 10 year, planning period may be calculated as follows: AFFORDABLE units = Market-rate x (.30 or .151 TOTAL units = .Market-rate or A ordable (. 70 or .85) (. 70 or .85) (.30 or,15) California RedevelopmenlAgencies -Fiscal Year2001-2002 -- HCD-E Sch E-I (7 V02) I 0 ' 0 d ~' C~ N O ~ v N ~ c H A o :. ~ ~ i ~ c w ! 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