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12-21-2010 - Annual Report for Year Ended June 30, 2010M s TO: Andrew G. Pasmant, Executive Director, and the Community Development Commission FROM: Thomas Bachman, Director Finance Department 0 Item Date City of West Covina MEMORANDUM AGENDA 4- December 21. 2010 SUBJECT: ANNUAL REPORT FOR THE YEAR ENDED JUNE 30, 2010 RECOMMENDATION: It is recommended that the Commission receive and file this report. DISCUSSION: Pursuant to California Redevelopment Law (Health and Safety Code Section 33080), an Annual Report of the Community Development Commission has been prepared for the fiscal year ended June 30, 2010. The law specifies that the report include the following: a) An independent financial audit report, including a compliance opinion; b) Fiscal statement which includes the Annual Report of Financial Transactions and all other requirements of Health and Safety Code Section 33080.5; c) Description of activities affecting housing and displacement as reported on the Schedule HCD; and d) Evaluation of the year's achievements and a work program for the coming fiscal year The financial portion of the report (a, b and regulatory agencies by December 31, 2010. Commission and the City Council. c) will be submitted to the appropriate state The report is required to be presented to the The financial statements include the debt service and capital project funds for both the Merged and Citywide project areas, the low and moderate -income housing fund, and the West Covina Plaza Community Facilities District. The combined fund balances for all funds decreased by $4,785,592. The decrease indirectly attributable to the $6.5 million Supplemental Educational Revenue Augmentation Fund (SERAF) payment to the county school fund as mandated in the 2009-10 state budget. Property tax revenues were stable with a $52,033 (0.3%) decrease in the Merged Project Area and a $172,173 (6.8%) increase in the Citywide Project Area. Finance Director Attachment: CDC Annual Report for fiscal year 2009/2010 #4 - ATTACHMENT li CDC Annual Report 12/21/10 E T v COMA COMMUNITY DEVELOPMENT COMMISSION Annual Report For the year ended June 30, 2010 J 1 LJ� 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ANNUAL REPORT Year ended June 30, 2010 TABLE OF CONTENTS Page AND COMPLIANCE REP Independent Auditors' Report I Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 3 Statement of Activities 4 Fund Financial Statements: Governmental Funds: Balance Sheet 6 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 9 Statement of Revenues, Expenditures and Changes in Fund Balances 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 12 Notes to the Basic Financial Statements 13 Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 35 FISCAL STATEMENT General Information 37 Achievement Information 38 Audit Information 41 Project Area Reports: Citywide Project Area 42 West Covina Redevelopment Project Area 43 Assessed Valuation Data: Citywide Project Area 44 West Covina Redevelopment Project Area 45 Pass -Through / School District Assistance: Citywide Project Area 46 West Covina Redevelopment Project Area 47 Summary of Statement of Indebtedness: Citywide Project Area 48 West Covina Redevelopment Project Area 49 Detail Summary of Long -Term Debt 50 Balance Sheet 52 Consolidated Statement of Income and Expenditures 56 HOUSING AND DISPLACEMENT ACTIVITIES Schedule A: Project Area Summary Report 61 Project Area Financial Information 62 Schedule A/B: Program Information 64 Schedule C: Agency Financial Summary 65 Agency Financial and Program Detail 66 Schedule D: General Project Information 69 Schedule E: Calculation of Increase in Agency's Inclusionary Obligation for Activities 72 PROGRESS REPORT AND EVALUATION 81 COMMISSION -OWNED PROPERTY 85 o GOALS & OBJECTIVES 87 Annual, Financial and Compliance Report Independent Audit For the year ended June 30, 2010 (Health & Safety Code 33080.1(a)) Mayer Hoff rl an McCann PC, An Independent CPA Firm 2301 Dupont Drive, Suite 200 ' Irvine, California 92612 I 949-474-2020 ph 949-263-5520 fx www. mhm-pc.com 1 Board of Directors Community Development Commission of the City of West Covina 1 West Covina, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities and each major fund of, the Community Development Commission of the City of West Covina (Commission) as of and for the year ended June 30, 2010, which collectively comprise the Commission's basic financial statements; as listed in the table of contents. These financial statements' are the responsibility of the ' management of the Community Development Commission of the City of.West Covina. Our responsibility is to express opinions on these financial statements based on our audit. The prior year partial comparative information has been derived from the financial statements of the Community Development Commission 1 of the City of West Covina for the year ended June 30, 2009 and, in our report dated December 7, 2009, we expressed an unqualified opinion on those financial statements. 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 the Government Auditing Standards, issued by the, Comptroller General of the United States. Those standards require that we plan and perform.the audit to obtain reasonable assurance about whether the financial statements are free of i 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 opinions. . In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Community Development Commission of the City of West Covina as of June 30, 2010, and the respective changes in financial position of the Community Development Commission of the City of West Covina for the year then ended in conformity with accounting principles generally accepted in the United States of America. 1 The Community Development Commission of the City of West Covina has not presented Management's Discussion and Analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be a part of, the basic financial statements. 11 1 In accordance with Government Auditing Standards, we have also issued a report dated December 14, 2010 on our consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other 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 of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of.our audit. `` Irvine, Califorma December 14, 2010 Re raon 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Statement of Net Assets ' June 30, 2010 Governmental Activities ' Assets: 2010 2009 Cash and investments (note 2) $ 22,100,140 27,307,956 Cash and investments with fiscal agents (note 2) 7,370,604 7,477,177 ' -Receivables, net: - Accounts 8,645 177,217 Taxes 1,133,638 1,624,466 Accrued interest 34,166 93,728 Assessments (note 4) 37,355,000 38,745,376 r Notes and loans (note 3) 23,093,486 25,551,252 ' Due from the City of West Covina 77,050 - Other assets 209,547 222,31.6 Land held for resale (note 5) 211,860 211,860 Capital assets (note 6): Land 15,597,560 15,597,560 Construction in progress 59,219 59,004 Other capital assets; net 7,448,877 3,577,757 Total assets 114,699,792 120,645,669 Liabilities: Accounts payable 305,398 1,042,239 Other accrued liabilities 48,158 88,220 Due to other agencies 1,017,606 984,304 Interest payable 1,124,837 1,159,992 Deposits payable 409,631 404,631 Due to the City of West Covina 833,045 1,290,856 Long-term liabilities (notes 10 to 15): Due within one year 6,492,297 7,427,959, Due in more than one year 124,263,249 124,296,170 ' Total liabilities 134,494,221 136,694,371 Net assets (deficits): Invested in capital assets, net of related debt 319337345 - Restricted for: Low and moderate housing 27096,711 237709,519 Unrestricted (50:824,485) (39,758,221) Total net assets (deficits) $ (197794,429) (16,048,702) See accompanying notes to the basic financial statements. 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Statement of Activities For the year ended June 30, 2010 Governmental activities: Low and moderate. income housing Community development Interest and fiscal charges Total governmental activities Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants $ 2,130,029 - - - 10,362,838 97,545 - - 6,488,327 - - - $ 18,981,194 97,545 - - General revenues: Taxes: Tax increment Sales tax Investment income Rental income Other revenues Total general revenues Change in net assets Net assets (deficits) at beginning of year, as restated (note 18) Net assets (deficits) at end of year See accompanying notes to the basic financial statements. 4 Net Governmental Activities 2010 2009 (2,130,029) (5,308,537) (10,265,293) (4,884,687) (6,488,327) (6,745,794) (18,893,649) (16,93 9,01 80) 8,545,254 15, 810,182 406,122 440,641 549,724 1,027,043 97,545 75,934 1,291,464 142,726 10,890,109 17,496,526 (7,993,540) 557,508 (11,800,889) (16,606,210) $ (19,794,429 (16,048,702) R, COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Governmental Funds - Balance Sheet June 30, 2010 Debt Service Funds Community Redevelopment Citywide Facilities Project Project Assets District Area Area Assets: Cash and investments $ 2,670,447 4,218,021 908,334 Cash and investments with fiscal agents 5,003,665 1,002,450 - Receivables, net: Accounts - - - Taxes 376,051 700,092 57,495 Accrued interest 1,785 13,137 2,173 Assessments - - - Notes and loans - - - Due from other funds (note 7) - - - Due from the City of West Covina 77,050 - - Prepaids and other assets 2,080 - - Advances to other funds (note 8) - - - Land held for resale - - - Total assets $ 8,131,078 5,933,700 968,002 Liabilities and Fund Balances Liabilities: Accounts payable - 55,180 4,526 Other accrued liabilities - - - Pass -through payable 178,917 678,216 160,473 Deposits payable - - - Due to other funds (note 7) 25,000 - - Due to the City of West Covina 434,965 296,330 101,750 Deferred revenue - - - Advances from other funds (note 8) - - 6,529,308 Total liabilities 638,882 1,029,726 6,796,057 Fund balances: Reserved for: Encumbrances - - - Low and moderate housing - - - Debt service requirements 7,490,116 4,903,974 - Notes and loans receivable - - - Prepaids and other assets 2,080 - - Advances to other funds - - - Land held for resale - - - Unreserved, reported in: Debt service funds - - (5,828,055) Capital projects funds - - - Total fund balances 7,492,196 4,903,974 (5,828,055) Total liabilities and fund balances $ 8,131,078 5,933,700 968,002 See accompanying notes to the basic fmancial statements m Capital Projects Funds Redevelopment Citywide Low and Project Project Moderate Totals Area Area Income Housing 2010 2009 3,549,187 2,692,421 8,061,730 22,100,140 27,307,956. - - 1,364,489 7,370,604 7,477,177 8,645 177,217 - - - 1,133,638 1,624,466 5,224 3,443 8,404 34,166 93,728 37,355,000 - - 37,355,000 38,745,376 13,683 - 23,079,803 23,093,486 25,551,252 25,000 - - 25,000 - - - - 77,050 - - - 207,467 209,547 222,316 - - 6,529,308 6,529,308 - 67,040 - 144,820 211,860 211,860 41,023,779 2,695,864. 39,396,021 98,148,444 101,411,348 223,835 4,008 17,849 305,398 1,042,239 17,322 4,375 26,461 48,158 88,220 - - - 1,017,606 984,304 409,631 - - 409,631 404,631 - - - 25,000 - - - - 833,045 1,290,856 37,355,000 - 23,079,803 60,434,803 64,270,011 - - - 6,529,308 - 38,005,788 8,383 23,124,113 69,602,949 68,080,261 34,874 - 33,051 67,925 109,396 - - 5,070,528 5,070,528 13,966,515 - - 1,364,489 13,758,579 12,817,868 - - - - 26,617 - - 207,467 209,547 222,316 - - 6,529,308 6,529,308 - 67,040 - 144,820 211,860 211,860 - (5,828,055) 2,916,077 2,687,481 2,922,245 8,525,803 5,976,515 3,017,991 2,687,481 16,271,908 28,545,495 33,331,087 41,023,779 2,695 864 39,396,021 98,148,444 101,411,348 7 \ COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2010 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity. Capital assets Accumulated depreciation Long term liabilities that have not been included in the governmental fund activity: Bonds payable Compensated absences Advances from City of West Covina Other long-term liabilities Accrued interest payable for the current portion of interest due on Long term debt has not been reported in the governmental funds. Revenues that are measurable but not available are recorded as deferred revenue under the modified accrual basis of accounting. Net assets of governmental activities See accompanying notes to the basic financial statements. 9 $ 28,545,495 34,156,362 (11,050,706) (74,395,000) (210,486) (25,224,571) (30,925,489) (1,124,837) 60,434,803 $ (19,794,429) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2010 Debt Service Funds. Community Redevelopment Citywide Facilities Project Project District Area Area Revenues: Property tax increment $ - 16,855,702 2,708,587 Sales tax 406,122 - - Other taxes 2,252,947 210 - Investment income 318,031 451191 6,209 Rental income - - - Program note and loan repayments - - - Other revenues 1,168,524 - Total revenues 4,145,624 16,901,103 2,714,796 Expenditures: Low and moderate income housing - - - Community development - - - Debt service: Principal 1,390,000 950,000 - Interest and fiscal charges 2,314,232 3,365,339 103,330 Repayment of advances to City - 1,217,469 - Pass -through payments - 2,649,379 545,349 SERAF payment -. - 6,529,308 Other contractual agreements 38,717 1,963,322 - Total expenditures 3,742,949. 10,145,509 7,177,986 Excess (deficiency) of revenues over (under) expenditures 402,675 - 6,755,594 (4,463,190) Other financing sources (uses): Transfers in (note 16) - - - Transfers out (note 16) - (5,371,-140) (1,341,717) Transfers to the City of West Covina - (105,660) (650,000) Proceeds of advances - - - Total other financing sources (uses) - (5,476,800) (1,991,717) Net change in fund balances 402,675 1,278,794 (6,454,907) Fund balances at beginning of year 7,089,521 3,625,180 626,852 Fund balances at end of year $ 7,492,196 4,903,974 (5,828,055) See accompanying notes to the basic financial statements. 10 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 Capital Projects Funds Redevelopment Citywide Low and Project Project Moderate Totals ` Area Area Income Housing 2010 2009 - - - 19,564,289 19,444,149 - - - 406,122 440,641 - - - 2,253,157 1,803,948 32,576 18,264 129,453 549,724 1,027,043 97,545 - - 97,545 75,934 - - 399,721 399,721 638,096 220,295 - 200 1,389,009 1,348,595 350,406 18,264 529,374 24,659,567 24,778,406 - - 2,756,409 2,756,409 5,535,277 2,571,099 224,966 - 2,796,065 4,447,311 - - 530,000 2,870,000 2,610,000 - - 740,581 6,523,482 6,785,341 2,500,000 800,000 - 4,517,469 3,635,801 - - - 3,194,727 3,468,902 - - - 6,529,308 - - - - 2,002,039 2,181,599 5,071,099 1,024,966 4,626,990 31,189,499 28,664,231 (4,720,693) (1,006,702) (3,497,616) (6,529,932) (3,885,825) 2,000,000 800,000 3,912,857 6,712,857 6,388,830 - - - (6,712,857) (6,388,830) - - - (755,660). (717,020) 2,000,000 500,000 - 2,500,000 3,300,000 4,000,000 1,300,000 3,912,857 1,744,340 2,582,980 (720,693) 293,298 415,241 (4,785,592) (1,302,845) 3,738,684 2,394,183 15,856,667 33,331,087 34,633,932 3,017,991 2,687,481 16,271,908 28,545,495 33,331,097 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year. ended June 30, 2010 Net changes in fund balances - total governmental funds $ (4,785,592) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay 215 Depreciation expense (376,693) Repayment of bond principal and repayment of Advances to the City of West Covina are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. (7,387,469) Additions and repayments of other long-term liabilities are recorded as revenues and expenditures in the governmental funds, but increase or decrease long-term liabilities in the statement of net assets. 9,373,252 To record as an expense the change in compensated absences in the statement of activities. (17,200) The statement of net assets includes accrued interest on long term debt. The change is reflected in the statement of activities. 35,155 Revenues that are measurable but not available are not recorded as revenues under the modified accrual basis of accounting. The change is reflected in the statement of activities. (3,835,208) Changes in net assets of governmental activities $ (7,993,540) See accompanying notes to the basic financial statements. 12 1 ' COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements Year ended June 30, 2010 (1) SummM of Significant Accounting Policies The following' is a summary of the significant accounting policies of: the. Community Development Commission of the City of West Covina (Commission): 1 (a) Organization and Tax Increment Financing Redevelopment Goals and Objectives The Community Development Commission, formerly the Redevelopment Agency of the .City of West Covina, was established on August 9, 1971. The general objective of the Redevelopment Plans adopted by the Commission is redeveloping certain areas of the City of West Covina to stimulate and attract private investment and to eliminate physical or economic blight. The Commission has the following ' project areas: West Covina Redevelopment Project Area — In December 1993, the Commission ' merged the Central Business District Project and the Eastland Project Areas. The Central Business District Project plan was adopted in December 1971 to acquire and develop property for commercial use and includes the West Covina Fashion ' Plaza and Civic Center. The plan has ,been amended to expand the project boundaries and development scope. The Eastland Project plan was adopted in July, 1975 to acquire and develop property for commercial use. The principal developments in the project area are regional shopping and entertainment centers. ' The plan has been amended to expand the project boundaries and development scope. The Commission has retained ownership to various parcels of land which it leases to commercial businesses or holds for resale. Fashion Plaza Expansion Project — The project plan is part of the West Covina Redevelopment Project Area, which concentrates on expansion of the leasable square footage of a regional shopping mall. ' West Covina Citywide Redevelopment Project Area — On July 15, 1999, the West Covina Citywide Redevelopment Project Area was adopted establishing a new ' redevelopment project area. This new project area was established for the purposes of carrying out activities related to upgrading public facilities and improving the quality of life for residents within the territory the project areas. This new project area consists of approximatelyin 302 acres located in multiple non-contiguous sub- areas throughout the City. 13 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (1) Summate• of Significant Accounting Policies (Continued) Tax Increment Financing The Law provides a means for financing redevelopment projects based upon an allocation of taxes collected within a redevelopment project. The assessed valuation of a redevelopment project last equalized prior to adoption of a .redevelopment plan or amendment to such redevelopment plan, or "base roll", is established and, except for any period during which the assessed valuation drops below the base year level, the taxing bodies, thereafter, receive the taxes produced by. the levy of the current tax rate upon the base roll. Taxes collected upon any increase in assessed valuation over the base roll ("tax increment") are paid and may be pledged by a redevelopment agency to the repayment of any indebtedness incurred in financing or refinancing a redevelopment project. Redevelopment agencies themselves have no authority to levy property taxes. Relationship to the City of West Covina The Commission is an integral part of the City and,. accordingly, the accompanying component unit financial statements are included as a blended component unit of the basic financial statements prepared by the City. 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 City's basic financial statements. (b) Basis of Accounting and Measurement Focus The basic financial statements of the Commission are composed of the following S Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole. These statements include separate columns for the governmental and business -type activities of the primary government. The Commission - of the City of West Covina has no business -type activities. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). 14 1 1 11 1 7 1 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (1) SummM of Significant Accounting Policies (Continued) The. accompanying gover7iinent-wide financial statements for the Commission present negative net assets because the primary activity of the Commission is to issue debt to assist with economic development • activities and construct infrastructure that will be owned and maintained by the City. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting' -from nonexchange transaction are recognized in accordance with the requirements of GASB Statement No. 33. Program revenues include charges for services and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government - wide financial statements, rather than reported as an expenditure. The issuance of long-term debt is recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. Fund Financial Statements The underlying accounting system of the Commission is organized and operated on the basis of separate funds, each of which is considered to be. a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by.which spending activities are controlled. 15 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds primarily. represent assets held by the Commission in a custodial capacity for other individuals or organizations. The Commission has no nonmajor funds, enterprise funds,. or fiduciary funds. Governmental Funds In the fund financial statements, governmental funds and agency funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they.become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Commission uses a sixty-day availability period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds, in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non -exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government - mandated and voluntary non -exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources during a period. n 1 E 1 1 16 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ' Notes to the Basic Financial Statements (Continued) ' (1) Summary of Significant Accounting Policies (Continued) Non -current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. iWhen both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. (c) Activities in Major Funds The following funds are presented as major funds in the accompanying basic financial statements: Community Facilities District Redevelopment Project Area and Citywide Project ' Area Debt Service Funds — To account for the accumulation of resources for the payment of debt service for bond principal, interest and trustee fees. Redevelopment Proiect Area and Citywide Project Area Capital Projects Funds — To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. Low and Moderate Income Housing Capital Projects Fund — To account for the required 20% set aside of property tax increment that is legally restricted for increasing or improving housing for low and moderate income households. ' (d) Cash and Investments For financial. reporting purposes, investments are adjusted to their fair value whenever the difference between fair value and the carrying amount is material. I 1 17 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (1) Summarof Significant Accounting Policies (Continued) Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. (e) Land Held for Resale Land held for resale includes land and project costs relating to property acquired or constructed which will be sold under terms of a disposition and development agreement or an owner participation agreement between the Commission and developers. The land held for resale is recorded at the lower of cost or estimated realizable value. (fl Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset. purchases in excess of $5,000 are capitalized. Depreciation has been provided using the straight-line method over the estimated useful life. of the asset in the government -wide financial statements. The Commission's capital asset useful lives are as follows: Structures and improvements 50 years Equipment 5-7 years (g) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. (h) Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the fund balance, is employed in the governmental funds. Encumbrances are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Encumbrances at year-end are re -appropriated in the following year. 18 H 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (i) Prior Year Data Selected- information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes 'only and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government's prior year financial statements, from which this selected financial data was derived. (2) Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: ' Statement of net assets: Cash and investments Cash and investments held -by bond trustee Total cash and investments J $22,100,140 7,370,604 29 470 744 Cash and investments as of June 30, 2010 consist of the following: Deposits $ 1,343,976 Investments 28,126,768 Total cash and investments 29 470 744 Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the Commission by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address. interest rate risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the. provisions of debt agreements of the Commission, rather than the general provisions of the California Government Code or the City's investment policy. I 19 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ' Notes to the Basic Financial Statements (Continued) (2) Cash and Investments (Continued) , Authorized by Maximum - Investment Types Investment Maximum Percentage Investment ' Authorized by State Law Policy Maturi * of Portfolio* In One Issuer* Local Agency Bonds No 5 years None None , U.S. Treasury Obligations Yes 5 years None None U.S. Agency Securities Yes 5 years None None Banker's Acceptances Yes 180 days 40% 30% Commercial Paper Yes 270 days 40% 10% ' Negotiable Certificates of Deposit Yes 5 years 30% None Repurchase Agreements Yes 100 days 20% None Reverse Repurchase Agreements Yes 92 days 20% of base value None ' Medium -Term Notes Yes 5 years 30% None Mutual Funds No N/A 20% 10% Money Market Mutual Funds Yes N/A 10% 10% Mortgage Pass -Through Securities No 5 years 20% None ' LA County Pooled Investment Funds Yes N/A None None Local Agency Investment Fund Yes N/A None None ' * Based on state law requirements or investment policy requirements, whichever is more restrictive. , Investments_ Authorized by Debt Agreements ' Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements; rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of, credit risk. , Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturi Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 180 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None , Investment Contracts 30 years None None 20 COMMUNITYDEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments (Continued) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. One of the ways that the Commission manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the Commission's exposure to interest rate risk as a result of its equity ' in the cash and investment pool of the City of West Covina is provided by disclosures in the notes to the basic financial statements of the City of West Covina that shows the distribution of the City's investments by maturity. Information about the sensitivity of the fair values of the Agency's investments to market interest rate fluctuations is provided by the following table that shows the distribution of these investments by maturity: Remaining Maturity (in Months) 12 Months 13 to 24 25-36 More Than ' Investment Type Or Less Months Months 36 Months Local Agency Investment Fund. $17,215,510 17,215,510 - - - '' Los Angeles County Investment Pool 3,540,654 3,540,654 - - - Held by fiscal agent: Money market funds 123,938 123,938 - - - Federal Agency securities 2,243,996 - 799,840 - 1,444,156 - Investment agreement 5,002,670 5,002,670 Total $28,126,768 21,679,942 - 1,444,156 5,002,670 Disclosures Relating to Credit Risk iGenerally, is credit risk the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum ' rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type. 21 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ' Notes to the Basic Financial Statements (Continued) (2) Cash and Investments (Continued) ' Minimum Rating as of Year End Carrying Legal Not Investment Type Amount Rating AAA Rated Local Agency Investment Fund $17,215,510 N/A - 17,215,510 Los Angeles County Investment Pool 3,540,654 N/A - 3,540,654 ' Held by bond trustee: Money market funds 123,938 A 123,938 - Federal Agency , securities 2,243,996 A 2,243,996 - Investment agreement 5,002,670 N/A - 5,002,670 Total 28.126.768 2,367.934 25,758,834 Concentration of Credit Risk Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and investment pools) that represent 5% or more of total investments for the entire entity are as follows: 1 Issuer Investment Type Reported Amount Westdeutsche Landesbank Investment agreement $ 5,002,670 Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be ' able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of r another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution securedeposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental ' unit). 22 n COMMUNITY DEVELOPMENT. COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments (Continued) The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150%, of the secured public deposits. For the investments held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. (3) Notes and Loans Receivable The Commission has made housing rehabilitation loans to qualified applicants using housing set -aside funds. These loans bear a one time interest of 5% and are repaid when title to the property changes. The Commission has also made loans to first-time home buyers. Loans are secured by second trust deeds and bear interest at 5%. Principal and interest are deferred for five years and due monthly in years 6 through 30. The Commission has 38 individual loans ' outstanding ranging from $5,500 to $25,000. The Commission has made housing preservation program loans to ' qualified applicants using housing set -aside funds. Principal and interest are deferred for ten years. After the tenth year, loans bear interest at 5%. Loans are repaid after the tenth year or when title to the property changes. The Commission has 126 individual loans ' outstanding ranging from $5,000 to $10,050. In May 1997, the Commission loaned $4,270,000 to Lark Ellen Towers. The loan is .secured by a deed of trust. The loan accrues interest at 3% per annum and requires annual payments equal to the maximum of $35,000 or 50% of net profits earned by the project. ' In April 1998, the Commission loaned $5,622,300 to Executive Lodge Apartments Limited Partnership (Promenade Apartments project). The loan is secured by. a deed of trust. The loan accrues interest at 3% per annum requires annual payments equal to 80% of net profits earned by the project. ' In April 2006, the Commission entered into a settlement agreement with Hassen Imports Partnership and West Covina Motors, Inc. where the Commission will receive $700,000 as resolution of a dispute of prior amounts due to the Commission. Outstanding Balance at June 30, 2010 $ 454,524 753,762 1,328,199 5,742,029 6,137,391 700,000 23 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) Outstanding (3) Notes and Loans Receivable (Continued) Balance at June 30, 2010 In May 2002, the Commission loaned $4,250,000 to West Covina Senior Villas, LLC. The loan is secured by a deed of trust. The loan does not accrue interest. The note requires annual payments of $141,667 through May 2032 that are forgiven by. the City unless the borrower defaults on the agreement. $ 3,116,666 In May 2009, the Commission entered into an agreement with West Covina Senior Villas II, L.P. to provide $8,600,000 for the acquisition of real property in the City of West Covina and construction and maintenance of an approximately 65-Lunt apartment complex to be rented to low income and very low income senior citizens. The loan is secured by a deed of trust. The loan does not accrue interest so long as the borrower does not default on the loan. The note requires annual payments of $86,869 through ninety-nine years of the note's commencement date. 3,964,952 Clippinger notes receivable bearing interest of 7% collateralized by a promissory note and sales tax guarantees. 675,269 Other notes receivable 4,092,944 Allowance for doubtful accounts (3,872,250) Total notes and loans receivable $23,093,486 (4) Assessments Receivable In connection with the Commission's issuance of its $51,220,000 1996 Special Tax Bonds (see note 10), the Commission has recorded $37,355,000 in assessments receivable, of which $37,355,000 has been recorded as deferred revenue in the fund financial statements because the tax assessments earned in conjunction with reporting this receivable do not meet the "availability" criteria under the modified accrual basis of accounting. These amounts will be reduced as the principal on the underlying debt matures. (5) Land Held for Resale Land held for resale is comprised of the following at June 30, 2010: ROP Site $ 144,820 BKK_ Project 67,040 Total land held for resale 211 860 CI' r] 24 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued). (6) Capital Assets Capital asset activity for the year ended June 30, 2010 was as follows: Balances at Balances at June 30, 2009* Additions Deletions June 30, 2010 Structures and improvements $ 18,403,608 - - 18,403,608 Equipment and vehicles s 95,975 - - 95,975 Total cost of depreciable assets 18,499,583 - - 18,499,583 Less accumulated depreciation for: Structures and improvements (10,612,353) (368,072) - (10,980,425) Equipment and vehicles (61,660) (8,621) - (70,281) Total accumulated depreciation (10,674,013) (376,693) - (11,050,706) Net depreciable assets 7,825,570 (376,693) - " 7,448,877 Capital assets not depreciated: Land 15,597,560 - - 15,597,560 Construction in progress 59,004 215 - 59,219 Capital assets, net 23,482,134 (3Z,4781 - 23,105,656 * Adjustments were made to the beginning balance , of certain capital asset categories to reflect the prior period adjustment to record the value of the Lakes Parking structure. Depreciation expense was charged in the following function of the Statement of Activities: ' Community development $376,693 (7) Due from. and to Other Funds Interfi nd receivables and payables at June 30, 2010 are as follows: Due From Other Funds Due to Other Funds Capital Projects Fund: Debt Service Fund: Redevelopment Project Area Community Facilities District Amount 25 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA , Notes to the Basic Financial Statements (Continued) (8) Interfund Advances ' Interfund advances at June 30, 2010 are as follows: Advances to Other Funds Advances from Other Funds Amount ' Capital Projects Fund: Debt Service Fund: ' Low and Moderate Income Housing Citywide Project Area 6 529 308 In February 2010 the Low and Moderate Income Housing Fund made an advance of , $6,529,308 to the Citywide Project Area Fund to satisfy the Commission's Supplemental Educational Revenue Augmentation Fund (SERAF) obligation as required by Assembly Bill ABX4-26. The advance bears no interest and must be repaid by June 30, 2015. (9) Propel y Taxes ' Under California law, property taxes are assessed and collected by the counties up to 1 % of the assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of West Covina accrues only those taxes that are received from the County within sixty days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February. I Collection dates December 10 and April 10 The Commission's primary source of revenue comes from property taxes. Property taxes allocated to the Commission are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the ' date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the , adoption of the Redevelopment Plan are allocated to the Commission; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other taxing agencies. (c) Property taxes allocated to the Commission above certain thresholds are subject to statutory pass -through requirements to the City and other taxing agencies. The Commission has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. ' 26 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (10) Long -Term Liabilities Long-term liability, activity for the year ended June 30, 2010 was as follows: Balance at Balance at Due within Due in more June 30, 2009 Additions Deletions June 30, 2010 one yea than one year ' Bonds Payable: 1988 Lease Revenue Bonds $ 4,875,000 - (335,000) 4,540,000 365,000 4,175,000 ' 1996 Special Tax Bonds 38,745,000 - (1,390,000) 37,355,000 1,485,000 35,870,000 1998 Housing Set -Aside Bonds 4,760,000 (175,000) 4,585,000 190,000 4,395,000 1999 Tax Allocation Bonds 3,915,000 - (115,000) 3,800,000 125,000 3,675,000 2001 Housing Set -Aside Bonds 8,960,000 - (355,000) 8,605,000 370,000 8,235,006 ' 2002 Tax Allocation Bonds 10,530,000 - (500.000) 10,030,000 520,000 9,510,000 Total Bonds Payable 71,785,000 - (2,870,000) 68,915,000 3,055,000 65,860,000 ' Advances from the City of. WC 27,242,040 2,500,000 (4,517,469) 25,224,571 3,403,162 21,821,409 Due to the County of Los Angeles .9,021,839 1,077,146 (472,365) 9,626,620 - 9,626,620 ' Developer agreement payable 23 481 964 3 296 905 - 26 778 - P , ,869 26,778,869. ' Compensated absences 193,286 48,546 (31,346) 210,486 34,135 176,351 Total long-term liabilities $131, 724,129 6,922,597 (7,891,180) 130,755,546 6,492,297 124,263,249 (11) Bonds Payyable 1.988 Lease Revenue Refunding Bonds (The Lakes Public Parking Project) In 1988, the- Commission issued $7,750,000 of Lease Revenue Bonds .for the purpose of constructing two multi -story parking structures. The bonds consist of $7,350,000 of current interest bonds and $400,000 of compound interest bonds. The bonds carried interest rates of 6.625% and 7.50% respectively, until January 1, 1994. On February 1, 1994, the bonds ' were converted to variable rate bonds. The interest rates vary based on the prevailing financial market conditions beginning on February 1, 1994, to a maximum of 12% over the tern of the bonds and are payable monthly. The bonds are subject to mandatory redemption beginning August 1, 1994, and annually thereafter through August 1, 2018. The bonds are secured b the facilities and lease rentals to be received ved pursuant to a lease agreement between the Commission and the City. The reserve requirement of $688,492 ' was fully funded at June 30, 2010. The principal balance of outstanding bonds at June 30, 2010 is $4,540,000. ' 27 I COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ' Notes to the Basic Financial Statements (Continued) (11) Bonds Payable, (Continued) ' The annual principal requirements to amortize the Lease Revenue Bonds as of June 30, 2010 are as follows: , June 30 Principal Interest 2011 $ 365,000 125,304 ' 2012 390,000 .115,230 2013 425,000 104,466 2014 460,000 92,736 , 2015 495,000 80,040 2016-2020 2,405,000 172,224 Totals 4 540 000 690.000 ' 1996 Special Tax Bonds (The Fashion Plaza Project In 1996, the Commission issued $51,220,000 of Special Tax Refunding Bonds comprised , $9,980,000 of serial bonds and $41,240,000 of term bonds. The serial bonds matured during the fiscal year ended June 30, 2007. The term bonds bear interest at a rate from ' 5.75% to 6.0% payable semiannually and are due September 1, 2022. The term bonds are not subject to optional redemption; mandatory redemption begins September 1, 2007, then annually thereafter through September 1, 2022. Interest is payable semiannually on March 1 and September 1 of each year. The bonds are secured by and payable from a portion of ' therevenues derived from an annual special tax to be levied against all taxable real property within the Special Assessment District. In addition, the Commission has pledged certain other incremental revenues generated within the District consisting of property taxes and sales taxes. Cash and investments held by the fiscal agent, including the guaranteed investment contract at June 30, 2010 totaled $5,003,665. The required reserve at June 30, 2010 was $5,122,000 resulting in a deficit of $118,335. The outstanding principal balance of the bonds at June 30, 2010 is $37,355,000. . Debt service requirements on these bonds at June 30, 2010 are as follows: , June 30 Principal Interest' 2011 $ 1,485,000 2,196,750 2012 1,580,000 2,104,800 2013 1,770,000 2,004,300 ' 2014 2,055,000 1,8895550 2015 2,340,000 1757,700 2016-2020 155215,000 6:310,950 ' 2021-2023 12,010,000 1,233,600 Totals 37,355,000 17,497,650 28 , I COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA. Notes to the Basic Financial Statements (Continued) 01) Bonds Pa, able, (Continued) 1998 Housing Set -Aside Tax Allocation Bonds In 1998 the Commission issued $4 945 000 of Series A Tax Allocation Bonds and $1,200,000 of Taxable Series B Tax Allocation Bonds to provide funds for the acquisition ' and rehabilitation of a multi -family housing project. The bonds mature annually through September 1, 2025 in amounts ranging from $175,000 to $325,000, with interest rates varying from 4.5% to 7.0%. Interest is payable semiannually on March 1, and September 1, ' of each year. The bonds are payable solely from and secured by a pledge of that portion of the tax increment revenues receivable by the Commission with respect to the merged redevelopment project area and are required to be deposited into the Commission's Low ' and Moderate Income Housing Fund. At June 30, 2010 the required reserve of $439;430 was fully funded. The principal balance .of outstanding bonds at June 30, 2010 is $4,585,000. 2001 Housing Set -Aside Tax Allocation Revenue Bonds On December 1, 2001, the Commission issued $11,275,000 of Housing Set -Aside Tax ' Allocation Revenue Bonds. The proceeds of the bonds were used to fund a grant for the acquisition and development of a senior housing apartment complex and finance the implementation of a certain number of the Commission's low and moderate income housing programs. The bonds are payable from and secured. by certain, tax increment revenues. The interest on the bonds is payable on March 1 and September 1 of each year. The interest rate of the bonds ranges from 2.25% to 5.00%. The principal of the bonds is due annually through September 1, 2031 in amounts ranging from $355,000 to $600,000. The bonds are subject to optional and mandatory redemption provisions. At June 30, 2010 the required reserve of $733,333 was fully. funded. The principal balance of outstanding bonds at .Tune 30, 2010 is $8,605,000. The annual requirements to amortize housing tax allocation bonds as of June 30, 2009 are as follows: Year Ending 1998 Housing Bonds 2001 Housing Bonds June 30 Principal Interest Principal Interest 201.1 $ 190,000 249,430 370,000 399,716 2012 195,000 239,516 385,000 384,376 2013 210,000 228,908 .400,000 367,935 2014 215,000 217,683 420,000 350,195 ' 2015 230,000 205,715 435,000 331,167 2016-2020 1,350,000 818,632 2,505,000 1,324,595 2021-2025 2026-2030 1,775,000 420,000 381,951 11,938 1,930,000 1,500,000 720,419 397,000 2031-2033 - - 660,000 26,250 Totals $4-585 00 2,353,773 8,605,000 4.301.653 29 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA . 1 Notes to the Basic Financial Statements (Continued) �11) Bonds Payable (Continued) 1999 Tax Allocation Bonds On November 1, 1999, the Community Development Commission issued $3,945,000 of Taxable Variable Rate Tax Allocation bonds. The proceeds of the bonds were used to fund a loan to the Commission, which was used. by the Commission to finance certain ' redevelopment capital projects within the West Covina Merged Project Area. The bonds are payable from and secured by certain tax revenues payable to the Commission. The interest on the 1999 Bonds is payable monthly at an adjustable interest rate with a ' maximum of 12%. Principal is due annually through November 1, 2029, in_ amounts ranging from $5,000 to $165,000. The Commission has a letter of credit to pay the principal and interest due; on the bonds to , the extent that other funds are not available. In May 2010, as the result of a failed` remarketing, the trustee made a tender draw against the letter of credit in the amount of $3,802,967 at an interest rate of 3.25% per annum. The outstanding principal balance of the bonds at June 30, 2010 is $3,800,000. Subsequent to year end, a replacement letter of credit was issued and the bonds were successfully remarketed. 2002 Tax Allocation Revenue Refundiny, Bonds On June 4, 2002 the Community Development Commission issued $12,200,000 of Tax Allocation Refunding Bonds. The proceeds of the Bonds were used to prepay the outstanding 1993 Tax Allocation Bonds. The 2002 Bonds are payable from tax revenues of the Commission. The interest on the bonds is payable semiannually on September 1 and March 1 of each year. The interest rate on the bonds ranges from 1.75% to 5.10%. The principal of the bonds is due annually through September 1, 2025, in amounts ranging from $500,000 to $800,000. At June 30, 2010 the required reserve of $986,413 was fully funded. The principal balance of outstanding bonds at June 3 01 2010 is. $10,030,000. , Debt service requirements on the tax allocation bonds as of June 30, 2010 are as follows: Year Ending 1999 Tax Allocation Bonds 2002 Tax Allocation Bonds , June 30 Principal Interest Principal Interest 2011 $ 125,000 123,500 520,000 466,413 2012 130,000 119,438 540,000 446,003 2013 135,000 115,213 560,000 424,273 2014 140,000 1105825 580,000 401,110 2015 150,000 106,275 6055000 ' 376,291 2016-2020 8305000 454,513 3,470,000 1,4145516 2021-2025 1,025,000 308,425 3,105,000 546,083 2026-2030 1,265,000 126,100 650,000 16,575 3 8 000 1 4. 64.289 10.030.000 4.091.264 30 d ' COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF _WEST COVINA ' Notes. to the Basic Financial Statements (Continued) ' (12) Pledged Revenue The Commission has debt issuances outstanding that are collateralized by the pledging of ' certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed ' in the debt descriptions in the accompanying notes. For the current year, debt service payments asa percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages ' also approximate the relationship of debt service to pledged revenue for the remainder of the term of the. commitment: ' Annual Debt Service Payments Debt Service as a Description of Annual Amount (of all debt secured Percentage of Pledged Revenue of Revenue by this revenue) Pledged Revenue ' Special tax — Special assessment district $ 3,827,593 3,704,23 i' 96.8% Tax increment — Merged Project Area 13,484,562 4,315,340 32.0% Tax increment — Low and Moderate 1 Income Housing 3,912,858 l X0,581 32.5% (13) Advances from the City of West Covina The City has authorized several advances to be used for the operations of the Commission. At June 30, 2010 the outstanding advances are: Outstanding at June 30, 2010 1 Redevelopment Project Area Debt Service Fund $ 17,124,571 (a) Redevelopment Project Area Capital Projects Fund 7,000,000 (b) Citywide Project Area Capital Projects Fund 1,100,000 (c) ' Totals 25.224.571 ' (a) The City of West Covina has made the following advances to the Commission: Administrative and construction costs $ 10,564,091 Capital project costs 19597743 Revolving credit 4,600,737 Totals $17,124571 1 31 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ' Notes to the Basic Financial Statements (Continued) (13) Advances from the City of West Covina (Continued) The outstanding advances are comprised of original principal of $16,160,358 and accumulated interest of $964,213. The advances accrue interest at 10.5% per , annum and will be paid off in 2025. (b) In July 2000, the Commission entered into a line of credit agreement with the City , in the amount of $5,600,000. The Community Development Commission Capital Projects Fund withdrew $5,000,000 in the fiscal year ended June 30, 2004. The line of credit accrues interest at the LAIF interest rate plus 2% and has no , stipulated repayment date. In June 2010, the City advanced $2,000,000 to the Redevelopment Project Area Capital Projects Fund.. The advance accrues interest at 6.25% per annum and is due in June 2011. (c) In June 2003, the City advanced $600,000 to the Citywide Project Area Capital ' Projects Fund under the $5,600,000 line of credit. The advance accrues interest at the LAIF interest rate plus 2% and has no stipulated repayment rate. In June ' 2010, the City advanced another .$500,000 to the Citywide Project Area Capital Projects Fund. The advance accrues interest at 6.25% and is due June 2011. 0 4) Due to the County of Los Angeles , Based on an agreement dated June 19, 1990 between the Commission and the County, during the first .twenty years beginning in 1990, the Commission will retain from the County 50% of the County portion of tax increment. Per the agreement, the Commission must- repay all amounts withheld from the County beginning in 2011. Repayment terms twenty years and is 7% thereafter..The balance at June 30, 2010 is $9,626,620. a (15) Developer Agreement Payable , Outstanding . at June 30, 2010 The Commission entered into an agreement with a developer to -share certain future tax revenues .generated by the Community Facilities District. Since 1992, the developer's share of revenues totaled $41,612,844. The Commission has made payments to the developer totaling $14,833,975. 26.778.869 11 32 ' COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) (16) Transfers In and Out ' The following transfers were made during the year ended June 30, 2010: Transfer In Transfer Out Amount Capital Projects Funds: Debt Service Funds: Redevelopment Project Area Redevelopment Project Area $2,000,000 (a) City-wide Project Area Citywide Project Area 800,000 (a) Low and Moderate Income Housing Redevelopment Project Area 3,371,140 (b) ' Low and Moderate Income Housing Citywide Project Area 541,717 (b) 6 712 857 (a) The Redevelopment Project Area and Citywide Project Area Debt Service Funds transferred $2,000,000 and $800,000 to the Redevelopment Project Area and ' Citywide Project Area Capital Projects. Funds, respectively. The transfers were made to provide funding for the repayment of advances made by the City to the Capital Project Funds. (b) The Redevelopment Project Area Debt Service Fund and the Citywide Project Area Debt Service Fund transferred $3,371,140 and $541,717, respectively, to the Low and Moderate Income Housing Fund. This transfer represents 20% of property tax increment •received during the year that is restricted for low and moderate income housing projects. ' (17) Low and Moderate Income Housing Fund Excess Surplus Section 33334.12 (g)(1) of the Health and Safety Code defines Excess/Surplus applicable to Low and Moderate Income Housing Fund. This section allows community development commissions to maintain only a certain amount of monies within these funds without incurring penalties. The amount which can be retained is specified by this section as "any unexpended and unencumbered amount in a Commission's Low and i Moderate Income Housing Fund that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the Low and Moderate Income Housing Fund pursuant to Sections 33334.3 and 33334.6 during the Commission's preceding four fiscal years". A computation of the requirements of this section of the code has indicated that as of June ' 30, 2010, there is no excess/surplus. 1 33 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA Notes to the Basic Financial Statements (Continued) L18) Prior Period Adjustment The accompanying financial statements reflect an adjustment to value the capitalization and related accumulated depreciation of the Lake Public Parking structure that was constructed with funds issued as part of the 1988 Lease Revenue Refunding Bonds. The following schedule summarizes the effect of the prior period adjustment on beginning net assets as of July 1, 2009: . Governmental Activities Net assets at the beginning of the year, as previously reported $ (16,048,702) To record the addition of the Lake Public Parking structure and related accumulated depreciation 4,247,813 Net assets at the beginning of the year, as restated (11, 809,8 89) u 34 [I J I 11 Mayer Hoffman McCann PC. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com. Board of Directors Community Development Commission of the City of West Covina West Covina, California REPORT ON COMPLIANCE AND OTHER MATTERS AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the Community Development Commission of the City of West Covina (Commission), as of and for the year ended June 30, 2010, and have issued our report thereon dated December 14, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Public Accountants. 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 or other matters that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Board of Directors 35 1 Community Development Commission of the City of West Covina West Covina, California Page Two Our consideration of the internal control over financial reporting was for the limited purpose ' described in the first paragraph of this section and would not necessarily identify all the deficiencies in the internal control that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that ' we consider to be material weaknesses, as defined above. However, we identified during our audit the following matter that provides you an opportunity to , enhance your existing controls: The Health and Safety Code §3334.3(d) requires that the Low and Moderate Income Housing Fund be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low- and moderate -income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing. The Health and Safety Code also requires agencies to annually determine the planning and administrative expenses that are necessary for the production, improvement, or preservation of low- and moderate -income housing. , We noted that management has memorialized an annual written determination regarding eligible planning and general administrative costs that may be paid from the Low.and Moderate Income Housing Fund. However, as a best practice, we recommend that the written determination be ' presented and approved by the Commission's Board of Directors on an annual basis. This report is intended solely for the information and use of the Board of Directors, management, , and the State Controller and is not intended to be and should not be used by anyone other than . these specified parties. A. Re 64n Irvine, California December 14, 2010 , 1 36 1 Fiscal Statement ' For the year ended June 30, 2010 Health & Safety Code 33080.1 b 1 III w West Coyina Redevelopment Agency Redevelopment'Agenc,iesfinancial Transactions Report . . General Information Fiscal Year 2010 Members of the Governing Body Middle Last Name First Name Middle Initial Last Name First Name Initial Phone Chairperson Sanderson Shelly Executive Director Pasmant i Andrew I� (626) 939-8401 Member isteve 1 F }Fiscal Officer Bachman Thomas (626) 939-8438 l 1� I• Member Hernandez - Roger Secretary Rush Sue (626) 939-8433 Member Lane �- (Sherri —=-- Report Prepared By _ ... .. ._ .. Independent Auditor Member Touhey 1Mike F- Firm Name Mayer Hoffman McCann P.C. Member -, Last Farr Swink Member First Dennis Jennifer Member Middle Initial Member Street 1444 W. Garvey Ave 1 2301 Dupont Drive, Ste 200 1 . Member city West Covina Irvine Mailing Address '. State -� CA CI A Zip Code — 91793- 192612- Street 1 P.O. Box 1440 _ - — Phone (626) 939-8438 (949) 474-2020 Street 2 city lwest Covina State ICA —1 Zip 91793- Phone ❑ Is Address Changed? (626) 939-8438 General Information Page 1 12115/2010 of the Activities of the Redevelopment Agency. Please provide a description of the agency's activities/accomplishments during the past Enter the amount of square year. footage completed this year by (Please be specific, as this information will building type and segregated by new or rehabilitated construction. be the basis for possible inclusion in the publication.) Activity Report ) Commercial Buildings Administered a Disposition and Development Agreement (DDA) with McIntyre Companies for the development of a two-phase project at the comer of Citrus W Street and Workman Avenue. Phase I consisted of a 50,518 sq. ft. first-class 00 Nissan Dealership and Phase II consists of a 30,400 sq. ft. first-class commercial retail center, the Citrus Grove. Monitored completion of construction pursuant to the DDA and issued a Certificate of Completion for the project. Provide marketing assistance to the property owner and entitlement assistance to Citrus Grove tenants (e.g., Buffalo Wild Wings). Administered the DDA with West Covina Heights LLC for the development of a. 1340,000 sq. ft. commercial center at the southern portion of the Sportsplex site. Monitored completion of construction pursuant to the DDA and issued a Certificate of Completion for the project. Project is now completed. Administered a Purchase & Sale Agreement with Charles Company to develop the 700 & 750 pads at the West Covina Sportsplex site into a mixed -use (general and medical) corporate office plaza on the approximately 5.87acre site. Assisted Westfield with Phase II and III of the Westfield mall development. Phase II of the development includes a new building for a 46,089 sq. ft. Best Buy and additional 130,000 sq. ft. of retail and restaurant area. Phase III will include the addition of 32,000-35,000 sq. ft of additional new retail space. Provided entitlement assistance for the relocation of the Best Buy store to the former Macy's location at 112 Plaza Drive. Project is now completed. Provided entitlement assistance to XXI Forever in opening a new 30,337 sq. ft. Achievement Information (Unaudited) Industrial Buildings Public Buildings Other Buildings Total Square Footage Enter the Number of Jobs Created from the Activities of the Agency Types Completed Square Footage Completed New Construction 121,8691 I � 121,869 547 ACDE j Rehabilitated 258,933 258,933 A=Utilities B=Recreation C=Landscaping D=Sewer/ Storm E=Streets/ Roads F=Bus/Transit Page 1 12/15/2010 MI M M M M m m m M m m = M m m r m m m flagship store. Project is now completed Assisted Norm Reeves Honda through the entitlement process for the expansion of existing Honda dealership and showroom, which includes a two-story 56,360 sq. ft. auto dealership. Project is now completed. Assisted DC Corporation in the entitlement process of a 20,518 sq. ft. office space and 135,043 sq. ft. of industrial condominiums on San Bernardino Road. Project is now completed. Assisted Sunset/Francisquito Center through the entitlement process for fagade renovations of the existing shopping center and construction of 29,000 sq. ft. of new retail.space. New tenants include Melrose Store, China Bowl, Hawaiian BBQ, LA Pizza Loca, Flavor Fresh Ice Cream and Access Dental. Provided marketing and entitlement assistance to QuailRidge Shopping Center, located on Nogales Street. New tenants include Food Mart International, Taekwondo Studio, Jogurt, Chai Cafe, a dental office, and Shaolin Temple. Provided marketing and entitlement assistance to Golden Eda Properties in opening a new 31,000 sq. ft. HK2 supermarket at Hong Kong Plaza. Successfully completed applications and received the following additional awards for the West Covina Commercial Center and Sportsplex project: 1.D2009 Regional Phoenix Award for Excellence in Brownfields Redevelopment — Environmental Protection Agency (EPA) Region 9 2.02009 Phoenix Award for Excellence in Brownfields _Redevelopment — National Grand Prize 3.[]League of California Cities (LCC) 2009 Helen Putnam Award for Planning and Environmental Quality Adopted a new 5-year Redevelopment Implementation Plan for the years 2010- 2014, as required by the California Health & Safety Code Section 33490. Prepared affordable housing database of units that were built or substantially rehabilitated using CDC Housing Set -Aside funds, in compliance with Assembly Bill 987. (During fiscal year 2009-2010, the CDC processed 55 loans under the Home Achievement Information (Unaudited) Page 2 12/15/2010 0 Achievement Information (Unaudited) 0 Page.3 12/15/2010 M M i M M M w M r M M M M M r M s M r r� ire r � � it r � r r■ r r rr r r it rr rr it West Covina Redevelopment Agency Redevelopment Agencies Fin'anc'iafTransactions Report Audit Information Fiscal Year 2010 Was the Report Prepared from Audited Financial Data, and Did You Submit a Copy of the Audit? Indicate Financial Audit Opinion If Financial Audit is not yet Completed, What is the Expected Completion Date? If the Audit Opinion was Other than Unqualified, State Briefly the Reason Given Was a Compliance Audit Performed in Accordance with Health and Safety Code Section 33080.1 and the State Controller's Guidelines for Compliance Audits, and Did You Submit a Copy of the Audit? Indicate Compliance Audit Opinion If Compliance Audit is not yet Completed, What is the Expected Completion Date? -- If compliance opinion includes exceptions, Yes i state the areas of non-compliance, and describe the agency's efforts to correct. j Unqualified I Yes i Unqualified - i Audit Information Page 1 12/15/2010 West`Co�ina,Redevelopment Agency Redevelopment`Agencliesi-inanctal Transactions Report Project Area Report . Fiscal Year 2010 Project Area Name 1Citywide, Project Area Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Forwarded from Prior Year ? _ ___.._:_r _Yes Enter Code for Type of Project Area Report P Activity Report P = Standard Project Area Report A = Administrative Fund L = Low and Moderate Income Housing Fund M = Mortgage Revenue Bond Program Provided marketing and entitlement assistance to QuailRidge Shopping O = Other Miscellaneous Funds or Programs S = Proposed (Survey) Project Area Center, located on Nogales Street. Does the Plan Include Tax Increment Provisions? Yes New tenants include Food Mart International, Taekwondo Studio, Date Project Area was Established (MM-DD-YY) =-_- 6/15/1999 Jogurt, Chai Cafe, a dental office, Most Recent Date Project Area was Amended and Shaolin Temple. _. Did this Amendment Add New Territory? No Provided marketing and entitlement assistance to South Hills Plaza, Most Recent Date Project Area was Merged _ - I located on 1414 S. Azusa Avenue. Maintained and distributed the ` Will this Project Area be Carried Forward to Next Year? Yes NJ available property listing to potential Established Time Limit: tenants and businesses. — -- Repaymentoflndebtedness (Year Only) 2045 Maintained and distributed the expanding tenant list to commercial Effectiveness of Plan (Year Only) -_-__----- 2030 property owners. New Indebtedness (Year Only) 2030 Administered and marketed the use Size of Project Area in Acres 302 of $7.9 million in private tax-exempt Percentage of Land Vacant at the Inception of the Project Area 0.0 bond allocation for private projects - Health and Safety Code Section 33320.1 (xx.x%) under the Recovery Zone Bonds. Percentage of Land Developed at the Inception of the Project Area _ 100.0 Adopted a new 5-year Redevelopment Implementation Health and Safety Code Section 33320.1 (xx.x%) Plan for the years 2010-2014, as Objectives of the Project Area as Set Forth in the Project Area Plan RCPO required by the California Health & (Enter the Appropriate Code(s) in Sequence as Shown) Safety Code Section 33490. R = Residential I = Industrial C = Commercial P = Public O = Other Project Area Report: :: _r; a : Page 1 12/15/2010 rr r� rr r� r� r r� r r r� rr rir rr �r r� rr r r r .A W Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Activity Report , 1 Administered a Disposition and Development Agreement (DDA) with McIntyre Companies for the development of a two-phase project at the corner of Citrus Street and Workman Avenue. Phase I consisted of a 50,518 sq. ft. first- class Nissan Dealership and Phase II consists of a 30,400 sq. ft. first- class commercial retail center, the Citrus Grove. Monitored completion of construction pursuant to the DDA . and issued a Certificate of Completion for the project. Provide marketing assistance to the property owner and entitlement assistance to Citrus Grove tenants (e.g., Buffalo Wild Wings). Administered the DDA with West Covina Heights LLC for the development of a 340,000 sq. ft. commercial center at the southern coition of the Sportsplex site. Monitored completion of construction pursuant to the DDA and issued a Certificate of Completion for the project. Project s now completed. Forwarded from Prior Year ? Yes: Enter Code for Type of Project Area Report — P = Standard Project Area Report A = Administrative Fund L = Low and Moderate Income Housing Fund M = Mortgage Revenue Bond Program 0 = Other Miscellaneous Funds or Programs S = Proposed (Survey) Project Area Does the Plan Include Tax Increment Provisions? Yes; Date Project Area was Established (MM-DD-YY) 12/20/1971 j Most Recent Date Project Area was Amended ! 6/17/2008 Did this Amendment Add New Territory? Nod Most Recent Date Project Area was Merged 12/21/19973 Will this Project Area be Carried Forward to Next Year? Yes Established Time Limit: Repayment of Indebtedness (Year Only) 20391 Effectiveness of Plan (Year Only) 2029 New Indebtedness (Year Only) 2029, Size of Project Area in Acres 1,942 1 Percentage of Land Vacant at the Inception of the Project Area 15.01 Health and Safety Code Section 33320.1 (xx.x%) Percentage of Land Developed at the Inception of the Project Area 85.0 Health and Safety Code Section 33320.1 (xx.x%) Objectives of the Project Area as Set Forth in the Project Area Plan RICPO) (Enter the Appropriate Code(s) in Sequence as Shown) R = Residential I = Industrial C = Commercial P = Public O = Other Project Area. Report.;, , : 12/15/2010 West Covina Redevelopment Agency` Redevelopment Agencies Financial ;°Transacttoris Report , Assessed Valuation Data Fiscal Year 2010 Project Area Name Frozen Base Assessed Valuation Increment Assessed Valuation Total Assessed Valuation Assessed Valuation Data ,Cit d Project Area -- — 165,200,988 262,152,193 427,353,1811 Page 1 12/15/2010 r r rr r r� rr �r r� rr rr r r r r r r wi rr r Assessed Valuation Data Page 2 12/15/2010 County Cities School Districts Community College District Special Districts Total Paid to Taxing Agencies Net Amount to Agency Gross Tax Increment Generated Pass -Through / School District Assistance �- --- $2,163,239 2,708,587 Page 1 12/15/2010 r ® M M MMM r M MM i Mao M West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Pass -Through / School District Assistance Fiscal Year 2010 Project Area Name West Covina Redevelopment Project Area Tax Increment Pass Through Detail Other Payments Amounts Paid To Taxing H & S Code H & S Code H & S Code Total H & S Code H & S Code Agencies Pursuant To: Section 33401 Section 33616 Section 33607 Section 33445 Section 33445.5 County _. -- -- — — 33,4201 1,756,874 $1,790,294 L Cities _ 160,869 $160,869 School Districts j L_ 543,746 $543,746 Community College District — - 85.682 $85,682 L v Special Districts 68,788 $68,788 Total Paid to Taxing r— $0�$33,426-1 $2,615,95rl $2,649,379 $0 $0 Agencies Net Amount to Agency $14,206,323 Gross Tax Increment i ._ _.,;_ 16 855,702 --' -= — - — Generated Pass -Through / School District Assistance Page 2 12/15/2010 West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Repoilt Summary of the Statement of Indebtedness -Project Area Fiscal Year 2010 Project Area Name Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt Low and Moderate Income Housing Fund Other Total Available Revenues 00 Net Tax Increment Requirements 17,902,000 i 2,882,449 7,112,591 583,2831 ............ _ .._....... . M,480,323 704,861 11 M,775,462 Summary of the Statement of Indebtedness - Project Area Page 1 12/15/2010 M M M M M*0 r M M r M M r M M M M m r r r rr rr rr rr � r r r ri rr r r rr rr it rr Summary of the Statement of Indebtedness - Project Area Page 2 12/15/2010 West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Detail Summary of Long -Term Debt Fiscal Year 2010 !City/County Debt I Citywide Project Area ' Principal Amount Year Amount Amount Unmatured End Purpose of Issue Authorized Authorized Issued of Fiscal Year Line Of Credit 2003 2,900,000 2,900,000 1,100,000 IWest Covina Redevelopment Project Area Principal Amount Year Amount Amount Unmatured End Purpose of Issue Authorized Authorized Issued of Fiscal Year Refund Bonds 1971 43,905,131 43,905,131 24,124,571 (Deferred Pass-Throughs West Covina Redevelopment Project Area Principal Amount Year Amount Amount Unmatured End Purpose of Issue Authorized Authorized Issued of Fiscal Year Deferred Pass-throughs - 1990 11,077,146 11,077,146 9,626,620 County (Other west Covina Redevelopment Project Area Principal Amount Year Amount Amount Unmatured End Purpose of Issue Authorized Authorized Issued of Fiscal Year Developer Agreement 1971 27,066,652 27,066,652 26,778,869 Compensated Absences 1971 15,580,497 15,580,497 210,486 Long Term Debts Page 1 12/15/2010 50 ' West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report ' Detail Summary of Long -Term Debt Fiscal Year 2010 Revenue Bonds IWes1 Covina Redevelopment Project Area L Principal Amount Year Amount Amount Unmatured End Purpose of Issue Authorized Authorized Issued of Fiscal Year Fashion Plaza Project 1997 51,220,000 51,220,000 37,355,000 ' Parking Project 1988 7,750,000 7,750,000 4,540,000 Tax Allocation Bonds CWest Covina Redevelopment Project Area L Principal Amount Year Amount Amount Unmatured End Purpose of Issue Authorized Authorized Issued of Fiscal Year Refund 1993 Tabs 2002 12,200,000 12,200,000 10,030,000 L/m Income & Senior 2001 11,275,000 11,275,000 8,605,000 Housing Programs West Covina Project Area 1999 3,945,000 3,945,000 3,800,000 Executive Lodge Project 1998 6,145,000 6,145,000 4,585,000 1 Long Term Debts Page 2 12/15/2010 51. 14 �rt General Long- General Fixed Term Debt Assets Total Assets and Other Debits Cash and Im rest Cash-6,241,608 P Cash with Fiscal Agent 7 796,802 8,061,730 - - — —. r- -- ----6,006,1 -..__�5 --------- ---- $22,100,140 $7,370 ,604 Tax Increments Receivable T --- 1,133,638 Accounts Receivable 37,363,645 77,0501 - -- __�$37,440,695 Accrued Interest Receivable 8,667 — 17-095 8,404 _ $34,166 Loans Receivable L— 13,683 — _.. _._. 23,079,803 __�--- — $23;093,486 Contracts Receivable $0 ' Lease Payments Receivable Unearned Finance Charge Due from Capital Projects Fund �_L Due from Debt Service Fund I 25,000 _ _ 6,529,308]$6,554,308 - $0 Due from Low/Moderate Income Housing Fund �- $0 _ Due from Special, �'' > . j , $0 Revenue/Other Funds M I t - A nd 0 et itt 1'/" !" ' `j Pag 12/16/2010 n M M A" = r fin = M M M M Low/Moderate Special Fiscal Year 2010 Capital Projects oout Senxxo Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Fixed Assets: Land, 15, 6,779m5�5O.778 Structures, and Improvements u" LIU Equipment �1o�ue.00a ' Amount Available |nDebt Service Fund Amount mbaProvided for i�`__ ° 124,187,431 $124.187.431 Payment orLong-Term Debt Total Assets and Other u43./19.643 1 »15.M,/80 | $39356,02T | $u | *130.759.5*o | *3*.156,362 | ~265.660.352 Debits . (must Equal Total Liabilities, Balance Sheet-'Liabilities.and Other Credits Low/Moderate Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Liabilities and Other Credits Accounts Payable 1 227,8421 59,706 17,849 _ ._�_ I $305,397 Interest Payable — -- — -- - _ $0 Tax Anticipation Notes Payable �— ' _' J $0 Loans Payable $0 Other Liabilities 37,786,329 1,850,651 " 23,106,264 $62,743,244 Due to Capital Projects Fund 25,0001 $25,000 Due to Debt Service Fund --- —` -- --- — - ... $0 Due to Low/Moderate _ _ 6,529,308 �— _ $6,529,308 Income Housing Fund---'—"= Ln Due to Special A Revenue/Other Funds Tax Allocation Bonds Payable Lease Revenue, Certificates of Participation Payable, Financing Authority Bonds All Other Long -Term Debt Total Liabilities and Other Credits ---- ----- --TT — __.____ _--�-._4 ... ..]i�o 14,171 P,464,969_1 $23,124,113 27,020,000 _ $27,020,000 $41,895,000 61,840,546 L $61 130,755,546 $200 Balance Sheet - Liabilities and Other Credits Page 1. 12/16/2010: ® M = M = = = ='. = = = M M m m Low/Moderate Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Equities Investment In General Fixed r I 34,156,362 $34,156,362 Assets -- -- -- ---- ---- Fund Balance Reserved-37,239,404 6,568,115 16,271,908 ($14,399,381) ------- - _-- Fund Balance $0 _ Unreserved -Designated ---"- Fund Balance 42,94876 - > $42,944,876 Unreserved-Undesignated f - - ----�---— -- - 1 -- - -- -� Total Equities $5,705,472 $6,568,115 I $16,271,908 $0 934,156,362 $62,701,857 Total Liabilities, Other Credits, and Equities $43,719,643 $15,032,786-1 $39,396,021 1 $0 $130,755,546- $34,156,36F-1 $263,060,352 Balance Sheet - Liabilities and Other Credits Page 2 12/16/2010 West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Revenues - Consolidated Fiscal Year 2010 Low/Moderate Special Captial Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross $0 $19,564,289 $0 1 $0 $19,564,289 Special Supplemental Subvention �— $0 $0 $0 $0 $0 Property Assessments $0 $2,253,157 1 $0 $0 $2,253,157 Sales and Use Tax $0 �$406,122 $0 $0 1— $406,122 Transient Occupancy Tax $0 $0 $0 $0 $0 Interest Income $148,385-1 $369,431 $129,452 �— $0 $647,268 rn Rentallncome �— $0 Lease Income $0 r— $0 Sale of Real Estate $0 $0 $0 $0 $0 Gain on Land Held for Resale $0 $0 $0 1$0 $0 Federal Grants $0 $0 $0 $0 $0 Grants from Other Agencies $0 $0 $0 1 $0 Bond Administrative Fees $0 I $0 $0 $0 $0 Other Revenues 1 $220,285 $1,168,524 1 $399,921 $0�1 $1,788,730 Total Revenues $368,670 1 $23,1767523 $529,37T-1 $0 $24,659,56F— Revenues - Consolidated Page 1 12/15/2010 l� it M 1=1 r M IMI = 1=11 M = = 1=1 M its M 1=1 it rr r rr r r r r r r r r r r r� r® r r West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Expenditures - Consolidated Fiscal Year 2010 Low/Moderate Special Capital Projects Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Administration Costs ; $1,291,980 $324,697-1 $1,405,382 1 — $0 1 $3,022,055 Professional Services $1,382,049 $0 $24,480 $0 $1,406,529 . Planning, Survey, and Design r� $5,852 $O r .$98,215 .$j'—J $104,067 Real Estate Purchases $0 $0 $0 �— $0 '�—$0 Acquisition Expense $0 $0 $Q $0 $0 Operation of Acquired Property $2;530 $0 r— $0 $0 $2,530 Relocation. Costs r $0 $0 $0 $0 $0 4 Relocation Payments $0 $0 $0 $0 'r $0 Site Clearance Costs r $0 $0 �— $0� $0 1 $0 _ Project improvement / Construction $113,654 $1,996,291 $755,371 1 $5-1 $2,865,316 Costs Disposal Costs $0 r $0 $0 $0 $0 Loss on Disposition of Land Held for Resale Expenditures - Consolidated Page 1 12/15/2010 West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Expenditures - Consolidated Fiscal Year 2010 Capital Projects Debt Service Low/Moderate Special Total Funds Funds Income Housing Revenue/Other Funds Funds A' B C D E Decline in Value of Land Held for —$0 1 $0 $0 1 $0 1 $0 Resale Rehabilitation Costs $0 I $0 $540,833 '' $0 $540,833 Rehabilitation Grants $0 r— $0 1 $0 $0 Interest Expense $0 $5,425,238 $672,709 r $0 $6,097,947 Fixed Asset Acquisitions $0 �— $0 $0 �r $0—$0 Subsidies to Low and Moderate $0 $0 $0 $0 $0 ap Income Housing Fund Debt Issuance Costs $0 $0 $0 $0 1 $0 Other Expenditures Including Pass $0 1 $9,255,0Z-1 $0 �— $0 $9,259,042 Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes $0 1 $615,000 1 $530:000 1 .$5-1 $1,145,000 Revenue Bonds and $0 . $1,725,080 $0 r $0 $1,725,000. Certificates of Participation City/County Advances and Loans $3,300,000 $1,217,469 $0 �_ $0 $4,517,469 U.S., State and Other Long -Term Debt $0 $503,711 $0 $0 $503,711 Total Expenditures $6,096,065 $21,066,444 1 $4,026,990 1 $0 $31,169,499 Excess (Deficiency) Revenues ($5,727,395) $2,695,079 ($3,497,617) �— $0 ($6,529,933) Over (Under) Expenditures Expenditures - Consolidated - Page 2 12/15/2010 i M= M M r r r r M M M M M M M M M =11 I=1 Fiscal Year 2010 West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Other Financing Sources (Uses) - Consolidated Low/Moderate Special Capital Projects Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Proceeds of Long -Term Debt $0 Proceeds of Refunding Bonds $0,$0 $0 $0 $0 Payment to Refunded Bond Escrow $0 $0 $0 $0 $0 Agent Advances from City/County $2,500,000 $0 $0 $2,500,000 Ln �p Sale of Fixed Assets �— $0 $71 $0 $0 r $0, Miscellaneous Financing Sources (Uses) $0 ($755,660) $0 �_ $0 ($755,660) Operating Transfers In $2,800,000 �— , $0 $0 $0 $2,800,000 Tax Increment Transfers In $3,912,857 ( $3,912,857 Operating Transfers Out $0 1 $2,800,000 1 $0 1 $0 $2,800,0 00 Tax Increment Transfers Out $0 1 $3,912,857 $3,912,857 (To the Low and Moderate Income Housing Fund) g (Uses) ($7,468,517) $3,912,8 77 I $0 $1,744,340 Total Other Financing Sources Uses $5,300,000 Other Financing Sources (Uses) - Consolidated Page 1 12/15/2010 West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Other Financing Sources (Uses) - Consolidated Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses Equity Beginning of Period rn Prior Year Adjustments C Residual Equity Transfers Other (Explain) Equity, End of Period Other Financing Sources (Uses) - Consolidated Capital Projects Debt Service Low/Moderate - Special Total Funds Funds Income Housing Revenue/Other Funds Funds A B C D E ($427795) ($4,773,438) $415,240 $0 ($4,785,593) $6,132,867 $11,341,553 $15,856,6 88 $0 1 $33,331,088 _$o (— _ $o r $o $o $o ........ ..... $0 $0 $0 $0_ $0 $5,705,472 1 $6,568,115 $16,271,908 $0 $28,545,495 Page 2 12/15/2010 M= a. r it M M r M M M M1=1 i i111111111111 M M M IM Housing and Displacement Activities For the year ended June 30, 2010 (Health & Safety Code 33080.1(c)) rr �r rr rr �r r� r rr ar rr rr �r r� r� rr �r r� rr rr California Redevelopment Agencies -Fiscal Year 2009/2010 Project Area Contributions to Low and Moderate Income Housing Funds Sch A Project Area Summary Report WEST COVINA Project Area Taxlncr. 100% of Tax 20% Set Aside Tax Increment Amount Amount Deposited to Percent of Tax Repayment Other Total Deposited to Increment Requirement Allocated Exempted Deferred- Hsng Fund Incr Dep Deferrals Income Housing WEST COVINA CITYWIDE $2,708,587, $541,717 $541,717 $0 $0 $541,717 20.00% . $0 $0 $541;717 WEST COVINA $16,855,702 $3,371,140 $3,371,140 $0 $0 $3,371,140 20.00% $0 $529,374 $3,900,514 REDEVELOPMENT PROJECT AREA Agency Totals: $19,564,289 $3,912,858 0,912,857 $0 $0 $3,912,857 20.00% $0 $529,374 $4,442,231 rn ' Note: Print this report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape) Page 1 of 1 12/15/10 California Redevelopment Agencies- Fiscal Year 2009/2010 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Agency WEST COVINA Address 1444 WEST GARVEY AVENUE P.O. BOX 1440 WEST COVINA CA 91793 Project Area WEST COVINA CITYWIDE Type: Inside Project Area Status: Active Plan Adoption: 1999 Plan Expiration Year: 2030 Gross Tax Calculated Amount Amount Amount Total % Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $2,708,587 $541,717 $541,717 $0 $0 $541,717 20.00% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $541,717 Project Area WEST COVINA REDEVELOPMENT PROJECT - --AREA- - -- - - -- -- - - - - - --- -- -- Type: Inside Project Area Status: Active Plan Adoption: 1971 Plan Expiration Year: 2031 Gross Tax Calculated Amount Amount Amount Total Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $16,855,702 $3,371,140 $3,371,140 $0 $0 $3,371,140 20.00% $0 Repayment $0 Category Interest Income $129,453 Loan Repayments $399,721 Other Revenue $200 Total Additional Revenue $529,374 Total Housing Fund Deposits for Project Area $3,900,514 Agency Totals For All Project Areas: Gross Tax Calculated Amount Amount Amount Total off, Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $19,564,289 $3,912,857.8 $3,912,857 $0 $0 $3,912,857 20% $0 Page 1 of 2 12/15/10 62 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 California Redevelopment Agencies- Fiscal,Year 2009/2010 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Total Additional Revenue from Project Areas: $529,374 Total Deferral Repayments: $0 Total Deposit to Housing Fund from Project Areas: $4,442,231 Page 2 of 2 63 12/15/10 California Redevelopment Agencies - Fiscal Year 2009/2010 Sch A/B Project Area Program Information WEST COVINA 'roject Area: WEST COVINA REDEVELOPMENT PROJECT AREA FUTURE UNIT CONSTRUCTION Estimated -Execution Completion Contract Name Date Date Very Low Low Moderate Total Senior Villas II 05/05/09 09/15/11 13 51 0 64 Page 1 of 1 12/15/10 64 California Redevelopment Agencies - Fiscal Year 2009/2010 Status of Low and Moderate Income Housing Funds Sch C Agency Financial Summary WEST COVINA Adjusted Project Agency Net Other Total * Unen- Unen- Unen- Beginning Area Other Total Resources Housing Housing Encum- cumbered cumbered cumbered Balance Receipts Revenue Expenses Available Fund Assets Fund Assets brances Balance Designated Not Dsgntd $15,856,667 $4,442,231 $0 $4,026,990 $16,271,908 $0 $16,271,908 $33,051 $16,238,857- $13,316,612 $2,922,245 0) Un Expenses 2009l201( Debt Service Housing On/Off-Site Planning and Total Rehabilitation Improvements Administration Costs $1,202,709 $540,507 $755,371 $1,528,403 $4,026,990 *The Unencumbered Balance is equal to Net Resources Available minus Encumbrances Note: Print this report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape) Page 1 of 1 12/16/10 California Redevelopment Agencies - Fiscal Year 2009/2010 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail WEST COVINA Beginning Balance Adjustment to Beginning Balance Adjusted Beginning Balance Total Tax Increment From PA(s) $3,912,857 Total Receipts from PA(s) Other Revenues not reported on Schedule A Sum of Beginning Balance and Revenues Expenditure Item Subitem Debt Service Debt Principal Payments Tax Allocation, Bonds & Notes Interest Expense Subtotal of Debt Service Housing Rehabilitation Subtotal of Housing Rehabilitation On/Off-Site Improvements Subtotal of On/Off-Site Improvements Planning and Administration Costs Administration Costs Planning, Survey/Design Professional Services Subtotal of Planning and Administration Costs Total Expenditures Net Resources Available Indebtedness For Setasides Deferred Page 1 of 3 12/16/10 $15,856,667 $0 $15,856,667 $4,442,231 $0 $20,298,898 Amount Remark $530,000 $672,709 $1,202,769 $540,507 $540,507 $755,371 $755,371 $1,405,382 $98,541 $24,480 $1,528,403 $4,026,990 $16,271,908 $0 California Redevelopment Agencies - Fiscal Year 2009/2010 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail . WEST COVINA Other Housing Fund Assets Category Amount Remark Total Other Housing Fund Assets Total Fund Equity $16,271,908 2005/2006 $3044288 2006/2007 $3351063 sum of 4 Previous Years' Prior Year Ending Excess Surplus for 2007/2008 $3717107 Tax Increment for 2009/2010 Unencumbered Balance 2009/2010 2008/2009 $3888830 $14001288 $9,790,019 $0 Sum of Current and 3 Previous Years' Tax Increments Adjusted Balance Excess Surplus for next year Net Resources Available Unencumbered Designated Unencumbered Undesignated Total Encumbrances Unencumbered Balance Unencumbered Balance Adjusted for Debt Proceeds Unencumbered Balance Adjusted for Land Sales Excess Surplus Expenditure Plan Excess Surplus Plan Adoption Date $14,869,857 $11,598,296 $0 $16,271,908 $13,316,612 $2,922,245 $33,051 $16,238,857 $4,640,561 $0 No Site Improvement Activities Benefiting Households Income Level Low Very Low Moderate Total Land Held for Future Development Site Name Num Of Zoning Purchase Estimated Acres Date Start Date Remark Use of the Housing Fund to Assist Mortgagors Income Adjustment Factors Requirements Completed Page 2 of 3 12/16/10 Me California Redevelopment Agencies - Fiscal Year 2009/2010 Status of Low and Moderate Income Housing Funds. Sch C Agency Financial and Program Detail WEST COVINA Home $ Hope $ Non Housing Redevelopment Funds Usage Resource Needs LMIHF Deposits/Withdrawls Document Document Custodian Custodian COPY Name Date Name Phone Source General Ledger 30-JUN-10 Finance Director (626) 939-8438 City Hall Achievements Description Page 3 of 3 12/16/10 California Redevelopment Agencies - Fiscal Year 2009/2010 Sch D General Project Information WEST COVINA Project Area Name: OUTSIDE PROJECT AREA Project Name: HOME IMPROVEMENT LOAN UNIT INVENTORY ---- -.. ---- --- ------ ----_._...._._.,.-- — -- - Very Low Low Moderate Above Mod Became Total Ineligible Other Provided without LMIHF Unit Non -Substantial Rehabilitation Non -Agency Owner Non -Elderly 3 40 0 0 0 43 Non -Agency Owner Elderly 5 7 0 0 0 12 Unit Total 8 47 0 0 0 55 Project Name: HSG PRESERVATION PRG UNIT INVENTORY Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Non -Substantial Rehabilitation Non -Agency Owner Non -Elderly 0 0 4 0 0 4 Unit Total 0 0 4 0 0 4 Page 1 of 3 12/15/10 California Redevelopment Agencies - Fiscal Year 2009/2010 Sch D General Project Information WEST COVINA Project Area Name: WEST COVINA CITYWIDE Project Name: Pacific Communities Address: West Covina 91791 Owner Name: CP West Homes NON ASSISTED PROJECT UNITS Category vlow low mod amod Building Permit Number New Constructions 0 0 0 5 B10-0026 B09-0429 B09-0425 B09-0423 B09-0433 Page 2 of 3 12/15/10 Building Permit Date 13-APR-10 22-JAN-10 12-MAY-10 05-MAR-10 13-JAN-10 70 California Redevelopment Agencies - Fiscal Year 2009/2010 Sch D General Project Information WEST COVINA . Page 3 of 3 12/15/10 71 SCHEDULE HCD E CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 Agency: WEST COVINA NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)] . AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] NON -AGENCY DEVELOPED UNITS 6. New Units 5 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6 & 7) 5 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 1 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 1 12. Total Increase in Very Low Income Units .Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 Schedule E (11/01) 'Totals may be impacted by rounding Page 1 of 1 12/15/2010 72 ISCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 ' Agency: WEST COVINA Project Area: WEST COVINA REDEVELOPMENT PROJECT ' AREA Project: EXECUTIVE LODGE ' NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] NON -AGENCY DEVELOPED UNITS '6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6 & 7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 ' 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 0 11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 12/15/2010 Schedule E ) be impacted may be impacted by rounding Page 1 of 7 ' 73 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 Agency: WEST COVINA Project Area: WEST COVINA REDEVELOPMENT PROJECT AREA --Project: LARK ELLEN VILLAGE NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] NON -AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6 & 7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 Schedule E (11/01) 'Totals may be impacted by rounding Page 2 of 7 12/15/2010 74 SCHEDULE HCD Et CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) ' Report Year: 2009/2010 Agency: WEST COVINA Project Area: WEST COVINA REDEVELOPMENT PROJECT ' AREA Project: SUNSET WALK i NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PARTI [H & SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units p 3. Subtotal -Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30% 0 5. Subtotal of Inclusionary Obligation Accrued this year for Ve ry-Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] NON -AGENCY DE VELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8: Subtotal -Baseline of Units (add lines 6 & 7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Un its (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Ve ry Low Income Units (line 9 x 40%) 0 PART III TOTALS al Year (add line 4 & 9) 0 11. Total Increase in Inclusionary Obligations During This FiscI 12. Total Increase in Very Low Income Units Inclusionary Obligati 0 be impacted by rounding i Page 3 of 7 75 California Redevelopment Agencies -Fiscal Year 2009/2010 12/15/2010 Schedule E ) 'Totals may be impacted SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 Agency: WEST COVINA Project Area: WEST COVINA REDEVELOPMENT PROJECT AREA Project: WEST COVINA SENIOR VILLAS NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)) AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)) NON -AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of UvAs (add lines 6 & 7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 Schedule E (11/01) 'Totals may be impacted by rounding Page 4 of 7 12/15/2010 76 d SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 ' Agency: WEST COVINA Project Area: WEST COVINA CITYWIDE ' Project: PACIFIC COMMUNITIES This form is a summary of the totals of all new construction or substantial rehabilitation units 'NOTE: from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)] ' AGENCY DEVELOPED 1. New Units 0 '2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 ' 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] ' NON -AGENCY DEVELOPED UNITS 1 6. New Units 7. Substantially Rehabilitated Units 5 0 8. Subtotal - Baseline of Units (add lines 6 & 7) 5 ' 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 1 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS I11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) I 1 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 12/15/2010 I Schedule E ) be impacted *Totals may be impacted by rounding Page 5 of 7 I, L M 77 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 Agency: WEST COVINA Project Area: WEST COVINA CITYWIDE Project: PACIFIC PARK NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] NON -AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6 & 7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 Schedule E (11/01) 'Totals may be impacted by rounding Page 6 of 7 12/15/2010 M SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2009/2010 ' Agency: WEST COVINA Project Area: WEST COVINA CITYWIDE ' Project: SUNSET WALK This form is a summary of the totals of all new construction or substantial rehabilitation units 'NOTE: from forms HCD-D7 which are developed in a project area by any entity (agency or non -agency). PART [H & SC Section 33413(b)(1)] ' AGENCY DEVELOPED 1. New Units 0 '2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units (add line 1 & 2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 ' 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x 50%) 0 PART II [H & SC Section 33413(b)(2)] NON -AGENCY DEVELOPED UNITS ' 6. New Units 7. Substantially Rehabilitated Units 0 0 8. Subtotal - Baseline of Units (add lines 6 & 7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 ' PART III, TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0 California Redevelopment Agencies -Fiscal Year 2009/2010 12✓1 5/2010 ' Schedule E ) be impacted - 'Totals may be impacted by rounding Page 7 of 7 Ll ' 79 Q Page Intentionally Left Blank 80 � Progress Report and Evaluation Fiscal Year 2009-2010 (Health & Safety Code 33080.1(d)) 1 1 CDC ANNUAL REPORT FY 2009-2010 ACCOMPLISHMENTS REDEVELOPMENT • . 700/750 Pad Administered a Purchase & Sale Agreement with Charles Company to develop the 700 & 750 pads at the West Covina Sportsplex site into a mixed -use (general and medical) corporate office plaza on the approximately 5.8-acre site. • Citrus Grove Administered a Disposition and Development Agreement (DDA) with McIntyre Companies for the development of a two-phase project at the corner of Citrus Street and Workman Avenue. Phase I consisted of a 50;518 sq. ft. first-class Nissan Dealership and Phase II consists of a 30,400 sq. ft. first-class commercial retail center, the Citrus Grove. Monitored completion of construction pursuant to the DDA and issued a Certificate of Completion for the project. Provide marketing assistance to the property owner and entitlement assistance to Citrus Grove tenants (e.g., Buffalo Wild Wings). • West Covina Heights Administered the DDA with West Covina Heights LLC for the development of a 340,000 sq. ft. commercial center at the southern portion of the Sportsplex site. Monitored completion of construction pursuant to the DDA and issued a Certificate of Completion for the project. Project is now completed. ECONOMIC DEVELOPMENT ' • HK2 Supermarket Provided marketing and entitlement assistance to Golden Eda Properties in opening a new 31,000 sq. ft. HK2 supermarket at Hong Kong Plaza. • Norm Reeves Honda Expansion ' Assisted Norm Reeves Honda through the entitlement process for the expansion of existing Honda dealership and showroom, which includes a two-story 56,360 sq. ft. auto dealership. Project is now completed. ' • Prosperity,Business Park Assisted DC Corporation in the entitlement process of a 20,518 sq. ft. office space and ' 135,043 sq. ft. of industrial condominiums on San Bernardino Road. Project is now completed. I ' 81 • QuailRidge Shopping Center Provided marketing and entitlement assistance to QuailRidge Shopping Center, located on Nogales Street. New tenants include Food Mart International, Taekwondo Studio, Jogurt, Chai Cafe, a dental office, and Shaolin Temple. • Sunset/Francisquito Center Assisted Sunset/Francisquito Center through the entitlement process for fagade renovations of the existing shopping center and construction of 29,000 sq. ft. of new retail space. New tenants include Melrose Store, China Bowl, Hawaiian BBQ, LA Pizza Loca, Flavor Fresh Ice Cream and Access Dental. Westfield Expansion Assisted Westfield with Phase I, II and III of the Westfield mall development. Westfield is currently developing a three-phase development plan for the mall. Phase I consisted of expanding the former Robinsons/May building by 30,000 sq. ft. and relocating Macy's to the space (completed). Phase Il of the development includes a new building for a 46,089 sq. ft. Best Buy and additional 130,000 sq. ft. of retail and restaurant area. Phase III will include the addition of 32,000-35,000 sq. ft of additional new retail space. o Provided entitlement assistance for the relocation of the Best Buy store to the former Macy's location at'l 12 Plaza Drive. Project is now completed. o Provided entitlement assistance to XXI Forever in opening a new 30,337 sq. ft. flagship store. Project is now completed. o Provided entitlement assistance for G by Guess (5,055 sq. ft.), Michelle D (3,000 sq. ft), Lee's Sandwiches (2,861 sq. ft), and California Crepe and Pasta (2,800 sq. ft.) • Awards for Sportsplex Project Successfully completed 11 applications and received the following 13 awards for the West Covina Commercial Center and Sportsplex project: 1: Southern California Association of Governments (SLAG) 2008 Compass Blueprint Award for Sustainability 2. Southern California Real Estate and Construction Review "The Building of America" 2008 Gold Medal Award 3. National Electrical Contractors Association 2008 Electrical Excellence Award 4. California Parks and Recreation Society 2008 Award of Excellence 5. National League of Cities (NLC) 2008 Silver Award for Municipal Excellence 6. International Economic Development Council (IEDC) 2008 Excellence in Economic Development (Public -Private Partnerships) Award 7. IEDC 2008 Excellence in Economic Development (Website and New Media) - Honorable Mention for the "Landfill to Landmark" video 0 1 1 L it Ir1 I 8. American Planning Association- California Chapter (APACA) 2008 Hard -Won Victories Award 9. San Gabriel Valley Economic Partnership (SGVEP) 2008 City Beautification Award 10.2009 Regional Phoenix Award for Excellence in Brownfields Redevelopment — Environmental Protection Agency (EPA) Region 9 11. 2009 Phoenix Award for Excellence in Brownfields Redevelopment National Grand Prize 12. California Redevelopment Association (CRA) 2009 Award of Excellence for Community Revitalization 13. League of California Cities (LCC) 2009 Helen Putnam Award for Planning and Environmental Quality HOUSING • Home Improvement Program During fiscal year 2009-2010, the CDC processed 55 loans under the Home Improvement Loan Program (HILP). • Housing Preservation Program During fiscal year 2009-2010, the CDC processed 4 loans under. the Housing Preservation Program (HPP). ADMINISTRATION • Adopted a new 5-year Redevelopment Implementation Plan for the years 2010-2014, as required by the California Health & Safety Code Section 33490. • Prepared affordable housing database of units that were built or substantially rehabilitated using CDC Housing Set -Aside funds, in compliance with Assembly Bill 987. ' 83 Page Intentionally Left Blank n Commission -Owned Property For the year ended June 30, 2010 1 (Health & Safety Code 33080.1(f)) 1 1 M M M M M r M M Ir i r M M Ili I! M M s M West Covina Community Development Commission Commission -Owned Property As of June 30, 2010 # of Parking Site Notes Address Zoning Current Use Land Buildings Spaces West Covina Redevelopment Project Area Capital Projects Fund: BKK PROJECT: AAA Pad 2210 S. Azusa Ave. PARKING: Westfield Shoppingtown (parking structure) Westfield Shoppingtown (surface parking) LnThe Lakes OS Vacant 1200 W. West Covina Pkwy. WC 9, R-C Parking Structure (3) no site address" R-C Surface Parking (4) 1000 E. Garvey Ave. WC 91790 R-C Parking Structures Low/Moderate Income Housing Fund: ROP Site R-1 1420 S. Willow Vacant 2.1 acres None None 308,405 sq. ft. n/a 2,121 7.08 acres 704,633 sq. ft. n/a 16.18 acres 175,982 sq. ft. n/a 4.04 acres 9,750 sq. ft. n/a 1,416 476 (structure parking) 219 (surface parking) None Notes: (1) - Per Real Property Exchange Agreement, parking for "Parcel D" is dedicated to Westfield Corporation, Inc. Number of parking spaces verified through visual count. (2) - Number of parking spaces verified through visual count. (3) - Per Owner Participation Agreement (OPA)/Reciprocal Easement Agreement (REA), Agency grants developer rights to operate, manage and maintain the surface parking area. (4) - Per Parking Facility Sublease Agreement, all parking spaces are for patrons and tenants of the commercial office building. 1 Page Intentionally Left Blank i _ 1 86 t ' Goals & Objectives ' Fiscal Year 2010-2011 CDC ANNUAL REPORT . ' FY 2010-2011 GOALS AND OBJECTIVES REDEVELOPMENT ' • 700/750 Pads o Monitor construction pursuant to the Purchase and Sale Agreement. o Assist and facilitate in the developer entitlement process. ' o Provide marketing assistance to attract office tenants. • . AAA Pad o Negotiate and execute a DDA. ' o Monitor construction pursuant to the DDA. ' • CGM Medical Office o Continue to assist prospective office and medical use tenants through the entitlement process. ' o Continue to provide marketing. assistance to attract tenants to the site. • Citrus Grove Center o Continue to provide marketing assistance to attract retail tenants to the site. • Civic Center Site ' o Continue to market site for the potential development of an upscalemix-use development on the site. o Continue to provide marketing assistance to attract upscale entertainment and retail ' tenants to the site. • Golf Course ' o Pursue golf course development and/or alternative use at the West Covina Sportsplex site. o Continue to monitor environmental compliance with regulatory agencies on site. ' • K-M art Site o Execute an Owner Participation Agreement for the potential redevelopment of the tK-mart site. o Encourage rehabilitation of site. ECONOMIC DEVELOPMENT ' • Business Assistance, Attraction, and Retention o Pursue funding from Federal Economic Development Stimulus Plan for grant to assist ' 87 n with Economic Development. o Provide assistance to property owners in filling vacancies of retail centers. o Continue to manage the Auto Plaza Business Improvement District. o Attend International Council of Shopping Centers (ICSC) conferences in San Diego and Las Vegas. o Coordinate ground breaking and grand opening ceremonies. o Continue to assist various developments through the entitlement process. o Continue updating and maintaining available property listing database. o Continue updating and maintaining database of expanding retail tenants. o Continuously monitor, update, and administer CDC pages on the City website. o Continue preparing articles for the City's Discover newsletter. • Entitlement Assistance o Continue to market and provide development/entitlement assistance for various projects including but not limited to:. Westfield Mall expansion, Westfield Eastland, Citrus Grove, McIntyre Square (former Country Club Center), South Hills Plaza, Hong Kong Plaza, Marketplace II, Fairfield Inn and Suites by Marriott, Quailridge Shopping Center, Sunset/Francisquito Shopping Center, Corona Grill Restaurant, 501 S. Vincent, and West Covina Parkway Plaza. • 501 S. Vincent Avenue o Continue to assist and facilitate in the entitlement process for new tenants. o Continue to provide marketing assistance to attract retail tenants to the site. • Corona Grill Restaurant o Continue to assist and facilitate in the property owner entitlement process. • Eastland Shopping Center o Continue to work closely with Westfield in re -tenanting vacancies at the site (Circuit City, Levitz, Mervyns, Hollywood Video). o Continue to assist and facilitate in the developer entitlement process. o Continue to provide marketing assistance to attract retail tenants to the site. • Fairfield Inn and Suites o Continue to assist and facilitate in the developer entitlement process. • Former Wickes Site o Continue to work closely with property owner in re -tenanting vacancies at the site. o Continue to provide marketing assistance to attract retail tenants to the site. o Continue to explore land use alternatives with the developer on the site. Marketplace II (former DSW/Best Buy Center) o Continue to work closely with property owner in re -tenanting vacancies at the site. o Continue to provide marketing assistance to attract retail tenants to the site. o. Continue to explore land use alternatives on the site. 1 Ell 11 11 I 11 :: ' • McIntyre Square (former Country Club Center) o Continue to assist developer/tenant through entitlement process. ' o Continue to provide marketing assistance to attract retail tenants to the site. • Quail Ridge Shopping Center ' o Continue to assist and facilitate in the entitlement process for new tenants. o Continue to provide marketing assistance to attract retail tenants to the site. ' • South Hills Plaza o Continue to work closely with property owner in re -tenanting vacancies at the site. o Continue to assist and facilitate in the entitlement process for new tenants. ' o Continue to provide marketing assistance to attract retail tenants to the site. • Sunset/Francisquito Center ' o Continue to assist and facilitate in the entitlement process for new tenants. o Continue to provide marketing assistance to attract retail tenants to the site. • Westfield Mall Expansion o Continue to work with Westfield in providing assistance in developing a lifestyle commercial and retail development at the Mall. o Continue to assist in providing entitlement assistance to tenants at the site. o Continue to provide marketing assistance to attract retail tenants to the site. IHOUSING H L • Affordable Housing o Continue to pursue the potential development of affordable housing projects. o Pursue acquisition of land for future affordable housing developments. • Home Improvement Loan Program (HILP) o Review and approve applicants and provide funding for qualified homeowners. o Administer existing loans. o Continue marketing the program to maximize its utilization. • Housing Preservation Program (HPP) o Review and approve applicants and provide funding for qualified homeowners. o Administer existing loans. o. Continue marketing the program to maximize its utilization. • West Covina Senior Villas II o Administer the Owner Participation Agreement (OPA) and provide entitlement assistance. 1 89 ADMINISTRATION • Continue to monitor and analyze state bill and statutes pertaining to redevelopment. • Prepare annual redevelopment reporting requirements (Statement of Indebtedness, State Controller's Report) in compliance with California Redevelopment Law. 0