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12-20-2011 - Annual Report for Year Ended June 30, 2011City of West Covina MEMORANDUM AGENDA Item: 11 Date: December 20, 2011 TO; Andrew G. Pasmant, Executive Director and the Community Development Commission FROM: Thomas` Bachman, Director Finance Department SUBJECT: ANNUAL REPORT FOR THE YEAR ENDED JUNE 30, 2011 RECOMMENDATION: It is recommended that.the Community Development 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, 2011. 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 annual report will be submitted to the appropriate state regulatory agencies by December 31, 2011. The report is required to be presented to the Commission and the City Council within six months of the end of the Commission's fiscal year. 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 $4,107,570. The decrease is primarily attributable to the $1.3 million Supplemental Educational Revenue Augmentation Fund (SERAF) payment to the county school fund as mandated in the 2010-11 state budget, the end of the county deferral of 50% of their tax increment revenue for the Merged Project Area and contributions for construction to the Senior Villas II housing project.. Property tax revenues were stable with a $489,551 (2.9%) increase in the Merged Project Area and a $511,666 (18.9%) decrease in the Citywide Project Area. Prepared by: Denise Bates Accounting Manager Reviewe Approve Tom Bachman Assistant City Manager Attachment: CDC Annual Report for fiscal year 2010/2011 1 1 WE T v CO%A COMMUNITY DEVELOPMENT COMMISSION Annual Report For the year ended June 30, 2011 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA ANNUAL REPORT (Pursuant to Health & Safety Code Section 33080.1) Year ended June 30, 2011 TABLE OF CONTENTS PART I - AUDIT REPORT (H & S V3080.1(a): ANNUAL FINANCIAL AND COMPLIANCE REPORT - INDEPENDENT AUDIT Page Independent Auditors' Report ........................................................................................................ I Basic Financial Statements: Government -wide Financial Statements: Statementof Net Assets........................................................................................................ 3 Statementof Activities.......................................................................................................... 5 Fund Financial Statements: Governmental Funds: BalanceSheet..................................................................................................................6 1 Reconciliation of the Balance Sheet of Governmental Funds to the Statementof 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 Computation of the Excess Surplus of the Low/Moderate Income Housing CapitalProjects Fund.............................................................................................................40 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............................................................................................ 41 PART II - FISCAL STATEMENT (H & S 433080.1(b): Amount of outstanding indebtedness............................................................................................ 43 Amount of tax increment property tax revenues.......................................................................... 43 Amount of tax increment revenues paid to or spent on behalf of a taxing agency, other than a school or community college district.......................................................................... 43 Amount allocated to school or community college districts........................................................ 44 t Amount of existing indebtedness and total amount of payments required to be paid ................. 44 Financial Transactions Report submitted to the California State Controller GeneralInformation...................................................................................................... 45 AchievementInformation............................................................................................. 46 AuditInformation......................................................................................................... 52 Project Area Reports: CitywideProject Area................................................................................................... 53 West Covina Redevelopment Project Area................................................................... 54 Assessed Valuation Data: CitywideProject Area................................................................................................... 55 West Covina Redevelopment Project Area ...................................... Pass -Through / School District Assistance: CitywideProject Area................................................................................................... 57 West Covina Redevelopment Project Area................................................................... 58 Summary of Statement of Indebtedness: CitywideProject Area................................................................................................... 59 West Covina Redevelopment Project Area................................................................... 60 Long -Term Debt........................................................................................................... 61 Statement of Income and Expenditures........................................................................ 72 BalanceSheet................................................................................................................ 83 Consolidated Statement of Income and Expenditures.................................................. 87 Statementof Indebtedness........................................................................................................... 93 PART III - HOUSING AND DISPLACEMENT ACTIVITIES (H & S 433080.1(c): Schedule A: ProjectArea Summary Report .................................................................................... III Project Area Financial Information............................................................................112 Schedule A/B: ProgramInformation...................................................................................................114 Schedule C: AgencyFinancial Summary........................................................................................ 115 Agency Financial and Program Detail........................................................................116 Schedule D: General Project Information....................................................................................... 119 Schedule E: Calculation of Increase in Agency's Inclusionary Obligation for Activities .............. 121 PART IV - PROGRESS REPORT AND EVALUATION (H & S V3080.1(d):.............123 PART V - LOANS IN DEFAULT (H & SV3080.1(e):.....................................................129 PART VI - COMMISSION -OWNED PROPERTY (H & S �33080.1(f):........................131 PART VII - TIME LIMITS (H & S433080.1(z):..............................................................133 PART VIII — OTHER INFORMATION (H & S Q30801(h)• OtherInformation................................................................................................................135 Goals& Objectives..............................................................................................................136 I PART Annual Financial and Compliance Report Independent Audit I For the year ended June 30, 2011 (Health &Safety Code 33080.1(a)) INDEPENDENT AUDITORS' REPORT ' The Board of Directors Community Development Commission of the City of West Covina West Covina, California 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 (the Commission), (a ' component unit of the City of West Covina, California), as of and for the year ended June 30, 2011, which collectively comprise the Commission's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditiniz 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 basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over 1 financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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. I 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, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 11 to the basic financial statements, the Commission has implemented the provisions of Governmental Accounting Standards Board Statement Number 54, "Fund Balance Reporting and Governmental Fund Type Definitions", for the year ended June 30, 2011. -1- ' 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 1 Offices located in Orange and San Diego Counties As explained further in Note 12, the future operation of redevelopment agencies in the state of California may be impacted by the results of litigation initiated in response to certain legislative actions enacted by the California State Legislature. In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2011 on our consideration of the Community Development Commission of the City of West Covina's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and 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. Management has not presented the management's discussion and analysis that accounting principles generally accepted in the United States of America require to" be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fmancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Our audit was conducted for the purpose of forming opinions on the fmancial statements that collectively comprise the Community Development Commission of the City of West Covina's basic financial statements. The computation of the excess surplus of the Low and Moderate Income Housing Capital Projects Fund, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Commission. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information * directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. December 14, 2011 Irvine, California -2- 1 1 1 1 t 1 1 1 1 1 1 1 1 1 1 1 t 1 1 t 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA STATEMENT OF NET ASSETS June 30, 2011 ASSETS: Cash and investments Cash and investments with fiscal agents Receivables, net: Accounts Taxes Accrued interest Assessments Notes and loans Due from other agencies Prepaid and other assets Land held for resale Capital assets: Not depreciated Being depreciated, net TOTAL ASSETS LIABILITIES: Accounts payable Other accrued liabilities Due to other agencies Interest payable Deposits payable Due to the City of West Covina Noncurrent liabilities (Note 9): Due within one year Due in more than one year TOTAL LIABILITIES NET ASSETS (DEFICIT): Invested in capital assets, net of related debt Restricted for debt service Restricted for low and moderate housing Unrestricted TOTAL NET DEFICIT See independent auditors' report and notes to basic financial statements. -3- Governmental Activities $ 19,451,226 7,380,240 72,718 1,531,222 22,443 35,870,000 27,008,123 360 .199,159 67,040 15,753,616 7,069,770 114,425,917 283,518 416,165 1,272,662 1,059,557 414,631 1,899,511 4,566,989 123,254,553 133,167,586 4,656,916 7,380,240 39,881,282 (70,660,107) $ (18,741,669) (This page intentionally left blank) I] 1 1 1 fi f] n 1 1 1 1 fi [i COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA STATEMENT, OF ACTIVITIES For the year ended June 30, 2011 Net (Expense) Revenue and Changes in Program Revenues Net Assets Operating Capital Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Governmental activities: Low and moderate income housing $ 1,127,049 $ - $ - $ - $ (1,127,049) Community development 3,935,453 62,900 - - (3,872,553) Interest and fiscal charges 7,062,355 - - (7,062,355) Total governmental activities $ 12,124,857 $ 62,900 $ - $ - (12,061,957) GENERAL REVENUES: Taxes: Tax increment 8,580,282 Sales tax 575,316 Other taxes 2,126,588 Investment earnings 469,356 Gain on sale of property 250,199 Other revenues 1 112 Total general revenues CHANGE IN NET ASSETS NET DEFICIT - BEGINNING OF YEAR NET DEFICIT - END OF YEAR See independent auditors' report and notes to basic financial statements. -5- ,976 13,114,717 1,052,760 (19,794,429) $ (18,741,669) 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA BALANCE SHEET - GOVERNMENTAL FUNDS June 30, 2011 ASSETS Cash and investments Cash and investments with fiscal agents Receivables, net: Accounts Taxes Accrued interest Assessments Notes and loans Due from other governments Prepaids and other assets Advances to other funds Land held for resale TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Other accrued liabilities Passthrough payable Deposits payable Due to the City of West Covina Deferred revenue Advances from other funds TOTAL LIABILITIES FUND BALANCES (DEFICIT): Nonspendable Restricted Unassigned TOTAL FUND BALANCES (DEFICIT) TOTAL LIABILITIES AND FUND BALANCES Debt Service Funds Community Redevelopment Citywide Facilities Project Project District Area Area $ 2,915,792 $ 6,120,462 $ 408,832 5,002,670 1,010,319 - 411,782 1,027,504 91,936 3,758 11,299 1,646 2,118 - - $ 8,336,120 $ 8,169,584 $ 502,414 $ . - $ 103,163 $ - 399,904 - - 223,646 814,716 234,300 461,942 1,371,988 65,581 - - 7,873,577 1,085,492 2,289,867 8,173,458 2,118 - 7,248,510 5,879,717 - - - (7,671,044) 7,250,628 5,879,717 (7,671,044) $ 8,336,120 $ 8,169,584 $ 502,414 See independent auditors' report and notes to basic financial statements. -6- Capital Projects Funds Redevelopment Citywide Low and Total Project Project Moderate Governmental Area Area Income Housing Funds ' $ 2,717,640 - $ 2,414,137 - $ 4,753,663 1,367,251 $ 19,451,226 7,380,240 - - 72,718 72,718 - - - 1,531,222 3,115 2,625 22,443 35,870,000 - - 35,870,000 - - 27,008,123 27,008,123 360 360 - - 197,041 199,159 - - 7,873,577 7,873,577 1 67,040 - - 67,040 $ 38,698,155 $ 2,497,462 $ 41,272,373 $ 99,476,108 $ 163,471 $ 2,410 $ 14,474 $ 283,518 5,528 1,366 9,367 416,165 - - - 1,272,662 414,631 = 414,631 = 1,899,511 35,870,000 - 27,008,123 62,878,123 - - - 7,873,577 36,453,630 3,776 27,031,964 75,038,187 67,040 - 8,070,618 8,139,776 2,177,485 2,493,686 6,169,791, 23,969,189 - - - (7,671,044) ' 2,244,525 2,493,686 14,240,409 24,437,921 $ 38,698,155 $ 2,497,462 $ 41,272,373 $ 99,476,108 i I -7- 1 (This page intentionally left blank) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS June 30, 2011 Fund balances for governmental funds Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: Capital assets Less: accumulated depreciation Long-term liabilities applicable to the Commission's governmental activities are not due and payable in the current period and, therefore, are not reported in the funds: Bonds payable Compensated absences Advances from the City of West Covina Other long-term liabilities Accrued interest payable on long-term liabilities is not being 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 deficit of governmental activities See independent auditors' report and notes to basic financial statements. -9- $ 34,253,199 (11,429,813) $ (65,860,000) (240,381) (21,521,409) (40,199,752) $ 24,437,921 22,823,386 (127,821,542) (1,059,557) 62,878,123 $ (18,741,669) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY.OF WEST COVINA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the year ended June 30, 2011 REVENUES: Property tax increment Sales tax Other taxes Investment income . Rental income Program note and loan repayments Gain on sale of property Other revenues TOTAL REVENUES EXPENDITURES: Low and moderate income housing Community development Debt service: Principal retirement Interest and fiscal charges Repayment of advances to City Pass -through payments SERAF payment Other contractual agreements TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICIT) - BEGINNING OF YEAR FUND BALANCES (DEFICIT) - END OF YEAR Debt Service Funds Community Redevelopment Citywide Facilities Project Project District Area Area $ - $ 17,345,253 $ 2,196,921 575,316 - _ 2,126,588 - _ 319,100 50,805 6,196 889,462 3,910,466 17,396,058 2,203,117 1,485,000 1,010,000 - 2,667,034 2,982,659 77,507 603,162 - - 4,084,635 434,946 - - - 1,344,269 - 2,270,808 650,000 4,152,034 10,951,264 2,506,722 (241,568) 6,444,794 (303,605) (5,469,051) (1,539,384) (5,469,051) (1,539,384) (241,568) 975,743 (1,842,989) 7,492,196 4,903,974 (5,828,055) $ 7,250,628 $ 5,879,717 $ (7,671,044) See independent auditors' report and notes to basic financial statements. -10- 1 1 1 I 1 1 Capital Projects Funds Redevelopment Citywide Low and Total Project Project Moderate Governmental Area Area Income Housing Funds $ - $ - $ - $ 19,542,174 - - - 575,316 - - - 2,126,588 13,664 12,005 67,586 469,356 62,900 - - 62,900 - - 516,991 516,991 - - 250,199 250,199 1,028,754 - 84,222 2,002,438 1,105,318 12,005 918,998 25,545,962 - - 5,572,360 5,572,360 1,878,784 205,800 - 2,084,584 - - 560,000 3,055,000 - - 726,572 6,453,772 2,000,000 1,100,000 - 3,703,162 - - - 4,519,581 - 1,344,269 - - 2,920,808 3,878,784 1,305,800 6,858,932 29,653,536 (2,773,466) (1,293,795) (5,939,934) (4,107,574) 2,000,000 1,100,000 3,908,435 7,008,435 - - - (7,008,435) 2,000,000 1,100,000 3,908,435 - (773,466) (193,795) (2,031,499) (4,107,574) 3,017,991 2,687,481 16,271,908 28,545,495 $ 2,244,525 $ 2,493,686 $ 14,240,409 $ 24,437,921 [1 -11- t COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES For the year ended June 30, 2011 Net change in fund balances - total governmental funds 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 expenses. This is the amount by which capital outlays exceeded depreciation in the current period:' Capital outlay Depreciation expense Repayment of bond principal and repayment of advances to the City of West Covina are expenditures in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Assets. 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. To record as an expense the change in compensated absences in the Statement of Activities. The Statement of Net Assets include accrued interest on long-term debt. The change is reflected in the Statement of Activities. 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. Change in net assets of governmental activities See independent auditors' report and notes to basic financial statements. -12- $ 96,837 (379,107) $ (4,107,574) (282,270) 6,758,162 (3,794,263) (29,895) 65,280 2,443,320 $ 1,052,760 fl COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS IJune 30, 2011 1. SUMMARY 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 (the Commission): 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 CiWyide 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 in the project areas. This new project area consists of approximately 302 acres located in multiple non-contiguous sub -areas throughout the City. See independent auditors' report. -13- 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): a. Organization and Tax Increment Financing (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: 0 Government -wide financial statements • Fund financial statements • Notes to the basic financial statements See independent auditors' report. -14- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 ' 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): ' b. Basis of Accounting and Measurement Focus (Continued): Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole. These statements include the governmental activities of the Commission. The 1 Commission of the City of West Covina has no business -type activities. The accompanying government -wide financial statements for the Commission present a net deficit 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 1 liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33. 1 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. The issuance of long-term debt is recorded as a liability in the government -wide financial statements. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability. See independent auditors' report. -IS- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Basis of Accounting and Measurement Focus (Continued): 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. The fund financial statements for the Commission's governmental funds are presented after the government -wide financial statements. These statements display information about major funds individually. 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. In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting. 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. 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. See independent auditors' report. 16- n I� 1� 1 1 u P COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 ' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): ' b. Basis of Accounting and Measurement Focus (Continued): Fund Financial Statements (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. 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. When 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 Protect 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 Project 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. 1 See independent auditors' report. -17- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA 1 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): c. Activities in Major Funds (Continued): 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. Investments: For financial reporting purposes, investments are stated at fair value, except for investment agreements which are stated at cost. 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. f. 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 See independent auditors' report. 11 1 ii P, IJ 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): g. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 2. CASH AND INVESTMENTS: Cash and Investments Cash and investments as of June 30, 2011 are classified in the accompanying financial statements as follows: Statement of net assets: Cash and investments $ 19,451,226 Cash and investments with fiscal agents 7,380,240 Total cash and investments 26.831.46 Cash and investments as of June 30, 2011 consist of the following: Pooled Deposits with City of West Covina $ 2,804,528 Deposits 1,737,471 Petty cash 200 Investments 22.289.267 Total cash and investments 26.831.466 See independent auditors' report. -19- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 2. CASH AND INVESTMENTS (CONTINUED): 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. Authorized Maximum Investment Types by Investment Maximum Percentage. Investment Authorized by State Law Policy Maturity* 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. N/A - Not Applicable �l See independent auditors' report. -20- r, I Ci 1 11 I 11 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 2. CASH AND INVESTMENTS (CONTINUED): Investments Authorized by Debt Agreements Investments 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 Maximum Percentage Investment Authorized Investment Type Maturity 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 N/A - Not Applicable 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. See independent auditors' report. -21- 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA L NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Interest Rate Risk (Continued) 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 to 36 More Than Investment Type or Less Months Months 36 Months Total Local Agency Investment Fund $ 7,624,892 $ - $ - $ - $ 7,624,892 Los Angeles County Investment Pool 7,284,137 - - - 7,284,137 Held by fiscal agent: Money market funds 127,289 - - - 127,289 Federal Agency securities 799,960 - 1,450,319 - 2,250,279 Investment agreement - - - 5,002,670 5,002,670 Total $ 15.836 $ - $ 1.450.319 $ 5.002.670 $ 22.289.267 Disclosures Relating to Credit Risk Generally, credit risk is 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 Commission's investment policy, or debt agreements, and Standard and Poor's actual rating as of year end for each investment type. Minimum Total Legal as of Not Investment Type Rating June 30, 2011 AAA Rated Local Agency Investment Fund N/A $ 7,624,892 $ - $ 7,624,892 Los Angeles County Investment Pool N/A 7,284,137 - 7,284,137 Held by fiscal agent: Money market funds A 127,289 127,289 - Federal Agency securities A 2,250,279 2,250,279 - Investment agreement N/A 5,002,670 5,002,670 Total $ 22.289.267 $ 2.377.568 19.91 L699 N/A - Not Applicable Subsequent to June 30, 2011, Standard and Poor's reduced the rating of the United States Government Sponsored Agency Securities from AAA to AA+ . See independent auditors' report. -22- i1 I J 11 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 2. CASH AND INVESTMENTS (CONTINUED): ' Concentration of Credit Risk Investments in anyone 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: Reported Issuer Investment Type 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 another party. The California Government Code and the Commission'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 secure deposits ' 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). ' 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. II See independent auditors' report. -23- 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 3. NOTES AND LOANS RECEIVABLE: The Commission has made housing rehabilitation loans to qualified applicants using housing set -aside fund. 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. During the fiscal year the Commission received an award for damages, attorneys' fees, and cost under a foreclosure judgment in superior court the amount of $7,586,603. This amount is the result of a positive verdict in litigation against Hassan Imports Partnerships and various related entities, stemming from breach of contract of various agreements and covenants with the Community Development Commission. The Commission is pursuing collection of these amounts in federal bankruptcy court. The developer has also filed an appeal of the judgment. 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. See independent auditors' report. -24- Outstanding Balance at June 30, 2011 $ 454,524 661,613 1,197,269 5,660,679 6,234,404 7,586,603 3,116,666 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 3. NOTES AND LOANS RECEIVABLE (CONTINUED): Outstanding ' Balance at June 30, 2011 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-lmit 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. $ 7,730,819 Clippinger notes receivable bearing interest of 7% collateralized by a promissory note and, sales tax guarantees. 557,846 Other notes receivable 2,233,567 Allowance for doubtful accounts (8,425,867) Total notes and loans receivable S 27,008,123 4. ASSESSMENTS RECEIVABLE: In connection with the Commission's issuance of its $51,220,000 1996 Special Tax Bonds, the ' Commission has recorded $35,870,000 in assessments receivable, of which $35,870,000 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. 1 5. LAND HELD FOR RESALE: The Commission owns a property located in Redevelopment Project Area, with a book value of $67,040, which the Commission expects to sell to developers. See independent auditors' report. -25- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 6. CAPITALASSETS: Capital asset activity for the year ended June 30, 2011 was as follows: Balance at Balance at July 1, 2010 Additions Deletions June 30, 2011 Capital assets, not being depreciated: Land $ 15,597,560 $ - $ - $ 15,597,560 Construction in progress 59,219 96,837 156,056 Total capital assets, not being depreciated 15,656,779 96,837 - 15,753,616 Capital assets, being depreciated: Structures and improvements 18,403,608 - - 18,403,608 Equipment and vehicles 95,975 - 95,975 Total capital assets, being depreciated 18,499,583 - 18,499,583 Less accumulated depreciation for: Structures and improvements (10,980,425) (368,072) - (11,348,497) Equipment and vehicles (70,281) (11,035) - (81,316) Total accumulated depreciation _(11,050,706) (379,107) - (11,429,813) Total capital assets, being depreciated, net 7,448,877 (379,107) - 7,069,770 Capital assets, net 23.105,65 $ (282,270) - $ 22,823.3R6 Depreciation expense of $379,107 was charged to the community development function. See independent auditors' report. -26- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA H 1 1 I J I', 1 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 7. INTERFUND ADVANCES: Interfund advances at June 30, 2011 are as follows: Advances To Advances From Low and Moderate Income Housing Citywide Project Area Capital Projects Fund Debt Service Fund Amount 7,873,527 In May 2010, the Low and Moderate Income Housing Capital Projects Fund made an advance of $6,529,308 to the Citywide Project Area Debt Service 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. In May 2011, the Low and Moderate Income Housing Capital Projects Fund made an advance of $1,344,269 to the Citywide Project Area Debt Service 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, 2016. 8. PROPERTY 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 Commission accrues only those taxes that are received from the County within sixty days after year-end. Lien date Levy date Due dates Collection dates January 1 July 1 November 1st - 1st installment February 1st - 2nd installment December loth - 1st installment April 1 Oth - 2' installment 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. See independent auditors' report. -27- 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 8. PROPERTY TAXES (CONTINUED): 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. 9. LONG-TERM LIABILITIES: Long-term liability activity for the year ended June 30, 2011 was as follows: Due Due in Balance Balance Within More Than June 30. 2010 Additions Deletions June 30, 2011 One Year One Year 1988 Lease Revenue Bonds $ 4,540,000 $ $ (365,000) $ 4,175,000 $ 390,000 $ 3,785,000 1996 Special Tax Bonds 37,355,000 (1,485,000) 35,870,000 1,580,000 34,290,000 1998 Housing Set -Aside Bonds 4,585,000 (190,000) 4,395,000 195,000 4,200,000 1999 Tax Allocation Bonds 3,800,000 (125,000) 3,675,000 130,000 3,545,000 2001 Housing Set -Aside Bonds 8,605,000 (370,000) 8,235,000 385,000 7,850,000 2002 Tax Allocation Bonds 10,030,000 (520.000) 9,510,000 540,000 8,970,000 Total bonds payable 68,915,000 (3,055,000) 65,860,000 3,220,000 62,640,000 Advances from the City 25,224,571 (3,703,162) 21,521,409 - 21,521,409 Due to the County of Los Angeles 9,626,620 673,864 - 10,300,484 1,314,327 8,986,157 Developer agreement payable 26,778,869 4,502,504 (1,382,105) 29,899,268 - 29,899,268 Compensated absences 210,486 58.495 (28,600) 240,381 32,662 207,719 Total long-term liabilities $ 1 0.755 546 5 234.86 $ (8.168.R67) $ 1 7.8 1 4 $ 4.566.9R9 L__12125A.M BONDS PAYABLE: 1988 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 term 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. See independent auditors' report. -28- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA 11 1 1 L� 1 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): BONDS PAYABLE (CONTINUED): 1988 Lease Revenue Refunding Bonds (The Lakes Public Parking Project) (Continued) The bonds are secured by the facilities and lease rentals to be received pursuant to a lease agreement between the Commission and the City. The reserve requirement of $671,139 was fully funded at June 30, 2011. The principal balance of outstanding bonds at June 30, 2011 is $4,175,000. The annual debt service requirements on the 1988 Lease Revenue Refunding Bonds as of June 30, 2011 are as follows: Year Ending June 30, 2012 2013 2014 2015 2016 2017 - 2019 Totals Principal $ 390,000 425,000 460,000 495,000 535,000 1,870,000 Interest Total $ 7,098 6,435 5,712 4,930 4,089 6,520 $ 397,098 431,435 465,712 499,930 539,089 1,876,520 ' 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 the revenues 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. See independent auditors' report. -29- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): BONDS PAYABLE (CONTINUED): 1996 Special Tax Bonds (The Fashion Plaza Project) Continued) Cash and investments held by the fiscal agent, including the guaranteed investment contract at June 30, 2011 totaled $5,002,670 . The required reserve at June 30, 2011 was $5,122,000 resulting in a deficit of $119,330. The outstanding principal balance of the bonds at June 30, 2011 is $35,870,000. The annual debt service requirements on the 1996 Special Tax Bonds as of June 30, 2011 are as follows: Year Ending June 30, 2012 2013 2014 2015 2016 2017 - 2021 2022 - 2023 Totals Principal Interest Total $ 1,580,000 1,770,000 2,055,000 2,340,000 2,515,000 16,495,000 9,115.000 $ 2,104,800 2,004,300 1,889,550 1,757,700 1,612,050 5,359,650 572,850 $ 3,684,800 3,774,300 3,944,550 4,097,700 4,127,050 21,854,650 9,687,850 35,870,000 15,300,900 $ 5 L.M.20-00 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 $195,000 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, 2011 the required reserve of $445,958 was fully funded. The principal balance of outstanding bonds at June 30, 2011 is $4,395,000. See independent auditors' report. -30- 1 _F �J 1 1 1 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): BONDS PAYABLE (CONTINUED): 1998 Housing Set -Aside Tax Allocation Bonds (Continued) The annual debt service requirements on the 1998 Housing Set -Aside Tax Allocation Bonds as of June 30, 2011 are as follows: Year Ending June 30, 2012 2013 2014 2015 2016 2017 - 2021 2022 -2026 Totals 1999 Tax Allocation Bonds Principal $ 195,000 210,000 215,000 230,000 240,000 1,425,000 1,880,000 Interest Total $ 239,516 228,908 217,683 205,715 192,875 741,183 278,465 $ 434,516 438,908 432,683 435,715 432,875 2,166,183 2,158,465 4.395,000 $ 2,104,345 $ 6.499 345 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 fmance 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 $130,000 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. The outstanding principal balance of the bonds at June 30, 2011 is $3,675,000. 1 1 See independent auditors' report. -31- t COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): BONDS PAYABLE (CONTINUED): 1999 Tax Allocation Bonds (Continued) The annual debt service requirements on the 1999 Tax Allocation Bonds as of June 30, 2011 are as follows: Year Ending June 30, 2012 2013 2014 2015 2016 2017 - 2021 2022 -2026 2027 - 2030 Totals Principal Interest Total $ 130,000 135,000 140,000 150,000 155,000 860,000 1,075,000 1,030,000 3,675,000 $ 8,820 8,508 8,184 7,848 7,488 31,572 20,316 6,276 $ 99.012 2001 Housing Set -Aside Tax Allocation Revenue Bonds $ 138,820 143,508 148,184 157,848 162,488 891,572 1,095,316 1,036,276 $ 3.774.012 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 $385,000 to $600,000. The bonds are subject to optional and mandatory redemption provisions. At June 30, 2011 the required reserve of $722,437 was fully funded. The principal balance of outstanding bonds at June 30, 2011 is $8,235,000. See independent auditors' report. -32- I� COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA I I I NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011. 9. LONG-TERM LIABILITIES (CONTINUED): BONDS PAYABLE (CONTINUED): 2001 Housing Set -Aside Tax Allocation Revenue Bonds (Continued) The annual debt service requirements on the 2001 Housing Set -Aside Tax Allocation Revenue Bonds as of June 30, 2011 are as follows: Year Ending June 30, 2012 2013 2014 2015 2016 2017 - 2021 2022 -2026 2027 - 2031 2032 Totals Principal Interest Total $ 385,000 400,000 420,000 435,000 455,000 2,625,000 1,555,000 1,765,000 195,000 1 2002 Tax Allocation Revenue Refunding Bonds $ 384,376 367,935 350,195 331,167 310,915 1,202,775 634,325 315,375 4,875 $ 769,376 767,935 770,195 766,167 765,915 3,827,775 2,189,325 2,080,375 199,875 12.136.938 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 $540,000 to $800,000. At June 30, 2011 the required reserve of $986,003 was fully funded. The principal balance of outstanding bonds at June 30, 2011 is $9,510,000. 1 1 I See independent auditors' report. - 33 - COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): BONDS PAYABLE (CONTINUED): 2002 Tax Allocation Revenue Refunding Bonds (Continued) The annual debt service requirements on the 2002 Tax Allocation Revenue Refunding Bonds as of June 30, 2011 areas follows: Year Ending June 30, 2012 2013 2014 2015 2016 2017 - 2021 2022 - 2026 Totals PLEDGED REVENUE: Principal $ 540,000 560,000 580,000 605,000 630,000 3,640,000 2,955,000 9,510,000 Interest $ 446,003 424,273 401,110 376,292 349,891 1,235,731 362,992 3,526,222 Total $ 986,003 984,273 981,110 981,292 979,891 4,875,731 3,317,992 $ 13.106,292 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 as a 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 Annual Service Payments Debt Service as a Amount (of all debt secured Percentage of Description of Pledged Revenue of Revenue by this revenue) Pledged Revenue Special tax - Special Assessment District $ 3,591,366 $ 4,152,034 115.6 % Tax increment - Merged Project Area 13,876,202 3,992,659 28.8 % Tax increment - Low and Moderate Income Housing 3,908,435 1,286,572 32.9 % See independent auditors' report. -34- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): 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, 2011 the outstanding advances are: Redevelopment Project Area Debt Service Fund $ 16,521,409 (a) ' Redevelopment Project Area Capital Projects Fund 5,000,000 (b) Totals 21,521,409 ' (a) The City of West Covina has made the following advances to the Commission: Administrative and construction costs $ 10,169,801 Capital project costs 1,893,279 Revolving credit 4,458,329 Totals $ 16,521,409 The outstanding advances are comprised of original principal of $15,766,068 and accumulated interest of $755,341. 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 gr ty 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. 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. The repayment is made annually from tax increment revenues and is based on a calculation of excess tax increment revenues from the sub -project area. The amount of repayment due for the 2011 fiscal is $1,314,327. As the repayment period has begun, the outstanding balance now accrues interest at 7% thereafter. The balance at June 30, 2011 ' is $10,300,484. ' See independent auditors' report. -35- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 9. LONG-TERM LIABILITIES (CONTINUED): DEVELOPER AGREEMENT PAYABLE: Outstanding ' Balance at June 30, 2011 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 $46,115,348. The Commission has made payments to the developer totaling $16,216,080. 29,899,268 10. TRANSFERS IN AND OUT: The following transfers were made during the year ended June 30, 2011: Transfers In Capital Projects Funds: Redevelopment Project Area Citywide Project Area Low and Moderate Income Housing Low and Moderate Income Housing Transfers Out Debt Service Funds: Redevelopment Project Area Citywide Project Area Amount $ 2,000,000 (a) 1,100,000 (a) n Redevelopment Project Area 3,469,051 (b) 1 Citywide Project Area 439,384 (b) (a) The Redevelopment Project Area and Citywide Project Area Debt Service Funds transferred $2,000,000 and $1,100,000 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 and Citywide Project Area Debt Service Funds transferred $3,469,051and $439,384, respectively, to the Low and Moderate Income Housing Capital Projects Fund. This transfer represents 20% of property tax increment received during the year that is restricted for low and moderate income housing projects. See independent auditors' report. -36- 1 1 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 11. FUND BALANCE CLASSIFICATION: The Commission has implemented Governmental Accounting Standards Board Statement No. 54, "Fund Balance Reporting and Governmental Fund Type Definitions", for the year ended June 30, 2011. The fund balances reported on the fund statements now consist of the following categories: Nonspendable Fund Balance - This includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance - This includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed Fund Balance - This includes amounts that can be used only for the specific purposes determined by a formal action of the city council. Assigned Fund Balance - This includes amounts that are designated by the city council for specific purposes. Unassigned Fund Balance - This is the residual classification that includes all spendable amounts not contained in the other classifications Debt Service Funds Capital Proiects Funds Low and Community Redevelopment Citywide Redevelopment Citywide Moderate Total Facilities Project Project Pmject Project Income Governmental District Area Area Area Arna Housine Funds Nonspendable: Prepaids and other assets $ 2,118 S - S - $ - $ - $ 197,041 $ 199,159 Land held for resale 67,040 67,040 Advances to other funds - - - - 7,873,577 7,873,577 Restricted: Debt service 7,248,510 5,879,717 1,367,251 14,495,478 Low and Moderate income housing - - - - - 4,802,540 4,802,540 Redevelopment Projects - - - 2,177,485 2,493,686 - 4,671,171 Unassigned - (7,671-044) - (7,671,044) Total S 7 ?MA2g S 5 R79]],2 S (7 7fi i fldd) S ? 944 5�5 ? 423 6Rfi $ 14 140 400 $ �4 417 Ool See independent auditors' report. -37- COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 ' 12. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES: On June 29, 2011, the Governor of the State of California signed Assembly Bills X1 26 and 27 as , part of the State's budget package. Assembly Bill X1 26 requires each California redevelopment agency to suspend (effective July 1, 2011) nearly all activities except to implement existing contracts, meet already -incurred obligations, preserve its assets and prepare for the impending dissolution of the agency. Assembly Bill Xl 27 provides a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment Program. Under this program, each city would adopt an ordinance agreeing to make certain payments to the County Auditor Controller in fiscal year 2011-12 and annual payments each fiscal year thereafter. Assembly Bill XI 26 indicates that the city "may use any available funds not otherwise obligated for other uses" to make this payment. The City of West Covina intends to use tax increment allocable to its redevelopment agency for this purpose. The amounts to be paid after fiscal year 2011-12 and 2012-13 have yet to be determined by the state legislature. Assembly Bill Xl 26 directs the State Controller of the State of California to review the ro rie p P ty of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed j to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by Assembly Bill Xl 26. In the event that Assembly Bill XI 26 is upheld, the receivable recognized by funds of the City that had previously loaned or advanced funds to the redevelopment agency may become uncollectible with a loss recognized by the advancing funds. Funds of the City may also be impacted by the elimination of reimbursements previously paid to the City by the redevelopment agency for shared administrative services. The League of California Cities and the California Redevelopment Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme Court to overturn Assembly Bills Xl 26 and 27 on the grounds that they violate the California Constitution. On August 11, 2011, the California Supreme Court issued a stay of all of Assembly Bill X1 27 and most of Assembly Bill Xl 26. The California . Supreme Court stated in its order that "the briefing schedule is designed to facilitate oral argument as early as possible in 2011, and a decision before January 15, 2012." A second order issued by the California Supreme Court on August 17, 2011 indicated that certain provisions of Assembly Bills X1 26 and 27 were still in effect and not affected by its previous stay, including requirements to file an appeal of the determination of the community remittance payment by August 15, the requirement to adopt an Enforceable Obligations Payment Schedule (`BOPS") by August 29, 2011, and the requirement to prepare a preliminary draft of the initial Recognized Obligation Payment Schedule ("ROPS") by September 30, 2011. See independent auditors' report. -38- I', COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2011 ' 12. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES (CONTINUED): tBecause the stay provided by Assembly Bill X1 26 only affects enforcement, each agency must adopt an Enforceable Obligation Payment Schedule prior to September 30, as required by the ' statute. Enforceable obligations include bonds, loans and payments required by the federal or State government; legally enforceable payments required in connection with agency employees such as pension payments and unemployment payments, judgments or settlements; legally binding and enforceable agreements or contracts; and contracts or agreements necessary for the continued administration or operation of the agency that are permitted for purposes set forth in AB1X 26. The Commission adopted their Enforceable Obligation Payment Schedule on August 23, 2011. On August 23, 2011, The City Council Adopted Resolution Number 2011-49 and the Commission Board adopted Resolution Number 613 declaring their intention to enact an ordinance whereby the City and the Commission elect to participate in the Voluntary Alternative Redevelopment Program in order to permit the continued existence and operation of the Commission, in the event Assembly Bills X1 26 and/or 27 are upheld as constitutional. The ordinance has not been adopted because the California State Supreme Court's September 13, 2011 stay prohibited such actions until they render judgment on the issues under their review. Should the voluntary program be found valid, the initial payment by the Commission is estimated to be $5.85 million with one half due on January 15, 2012 and the other half due May 15, 2012. Thereafter, an estimated $1.4 million will be due annually. The amounts to be paid after fiscal year 2011-12 and 2012-13 have yet to be determined by the state legislature. The semi-annual payments will be due on January 15 and May 15 of each year and would increase or decrease with changes in tax increment. Additionally, an increased amount would be due to schools if any new debt is incurred. Assembly Bill X1 27 allows a one-year reprieve on the Commission's obligation to contribute 20% of tax increment to 1 the low -and -moderate -income housing fund so as to permit the Commission to assemble sufficient funds to make its initial payments. Management believes that the Commission will have sufficient funds to pay its obligations as they become due during the fiscal year ending June 30, 2012. The nature and extent of the operation of redevelopment agencies in the State of California beyond that fiscal year are dependent upon the outcome of litigation surrounding the actions of the state. In the event that Assembly Bills X1 26 and/or 27 are specifically found by the courts to be unconstitutional, there is a possibility that future legislative acts of the California State legislature may create new challenges to the existence 1 and funding of redevelopment agencies in view of the California State legislature's declared intent to eliminate redevelopment agencies and to reduce their funding. 1 See independent auditors' report. -39- r, I u COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA COMPUTATION OF THE EXCESS SURPLUS OF THE LOW AND MODERATE INCOME HOUSING CAPITAL PROJECTS FUND July 1, 2010 OPENING FUND BALANCE - JULY 1, 2010 LESS UNAVAILABLE AMOUNTS: Advances to other funds AVAILABLE FUNDS LIMITATION (GREATER OF $1,000,000 OR FOUR YEARS SET -ASIDE): Set -aside for last four years: 2009 - 2010 2008 - 2009 2007 - 2008 2006 - 2007 TOTAL SET -ASIDE FOR LAST FOUR YEARS Base limitation GREATER AMOUNT COMPUTED EXCESS SURPLUS - JULY 1, 2010 See independent auditors' report. -40- $ 3,912,857 3,888,830 3,351,063 3,351,063 $ 14,503,813 $ 1,000,000 All Project $ 16,271,908 6,529,308 9,742,600 14,503,813 11 fl 1 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER COMPLIANCE The Board of Directors Community Development Commission of the City of West Covina West Covina, California Compliance We have audited the West Covina Community Development Commission's (the Commission) compliance with the California Health and Safety Code as required by Section 33080.1 for the year ended June 30, 2011. Compliance with the requirements referred to above is the responsibility of the Commission's management. Our responsibility is. to express an opinion on the Commission's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Guidelines for Compliance Audits of California Redevelopment Agencies, June 2011, issued by the State Controller and as interpreted in the Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, August 2011, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the Commission has occurred. An audit includes examining, on a test basis, evidence about the Commission's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Commission's compliance with the requirements referred to in the first paragraph. In our opinion, the Commission complied, in all material respects, with the compliance requirements referred to above that are applicable for the year ended June, 30, 2011. -41- 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties Internal Control Over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the Commission's internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over compliance. A deficiency in internal control over compliance 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, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over , compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. , We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management, the Board of Directors, others within the Commission and the State Controller's Office, Division of Accounting and Reporting and is not intended to be and should not be used by anyone other than these specific parties. 1"4 Um om 94mi 11 December 14, 2011 Irvine, California -42- F�l PART II ' Fiscal Statement LI 1 For the year ended ,Tune 30, 2011 (Health &Safety Code 33080.1(b)) I COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA FISCAL STATEMENT FY 2010-2011 A) Amount of outstanding indebtedness of the agency by project area: (Form A, Grand Totals line, from the Statement of Indebtedness) Project Area Name Amount of Outstanding Indebtedness West Covina Redevelopment Project Area $ 1,041,412,726 West Covina Citywide Redevelopment Project Area $ 271,878,387 Total $ 1,313,291,113 The complete Statement of Indebtedness can be found on pages 93 to 109 of this report. Additionally, terms of the Commission's debt are more fully described in Note 9 of the Commission's audited. financial statements on pages 28 to 36 of this report. ' B) Amount of gross tax increment generated in each Project Area: (Statement of Income and Expenditures -Revenues, Tax Increment Gross line, from the Financial Transactions Report) I Project Area Name Amount of gross tax increment West Covina Redevelopment Project Area $ 17,345,253 West Covina Citywide Redevelopment Project Area $ 2,196,921 Total $ 19,542,174 The complete Financial Transactions Report can be found on pages 45 to 91 of this report. Additional information on property taxes and tax increment financing can be found in the notes to the audited financial statements on pages 14, 27 and 28 of this report. 1 C) Amount of tax increment revenues paid to, or spent on behalf of, a taxing agency, other than a school or community college district: (Capital Improvement Detail, from the Financial Transactions Report) Project Area Name Amount of tax increment revenues paid to a taxing agency, other than a school or community college district (H & S §33401 & 33676) West Covina Redevelopment Project Area $ 2,419 West Covina Citywide Redevelopment $ 0 Project Area Total $ 2,419 1 43 Additional information on pass through payments made to taxing agencies can be found in the Financial Transactions Report on pages 57 and 58 of this report. No tax increment revenues were spent on behalf of a non -school or non -community college district taxing agency. D) Amount allocated to school or community college districts: (Pass-Through/School District Assistance form, Total column for School District and Community College Districts, from the Financial Transactions Report) Project Area Name Amount allocated to schools or community college districts (H & S §33401, 33445, 33445.5, 33676 & 33681) West Covina Redevelopment Project Area $ 0 West Covina Citywide Redevelopment $ 0 Project Area Total $ 0 Additional information on pass through payments made to taxing .agencies can be found in the Financial Transactions Report on pages 57 and 58 of this report. E) The amount of existing indebtedness, as defined in Section 33682 (for debt present prior to fiscal year 1992-93), and the total amount of payments. required to be paid on existing indebtedness for that fiscal year (Form A from the Statement of Indebtedness): Project Area Name Amount of Existing Total Amount of Indebtedness Payments Required to be Made West Covina Redevelopment $ 492,768,781 $ 11,662,829 Project Area West Covina Citywide $ 1,609,132 $ 40,000 Redevelopment Project Area Total $ 494,377,913 $ 11,702,829 F) The financial transaction report required pursuant to § 53891 of the Government Code: The State Controller Financial Transactions Report can be found on pages 45-91 of this report. G) Statement of Indebtedness The Statement of Indebtedness can be found on pages 93-109 of this report. H) Any other fiscal information which the agency believes useful to describe its programs Number of Jobs created from the activities of the Commission: 816 44 Lrl Fiscal Year Members of the Chairperson Member' Member Member Member Member Member Member Member Member Mailing Address aKR 1Nest Coin edevelopment Agency, 2011 3over6ing''Body Middle' Last,Name First Name. Initial �Herfert 1 Steve (Armbrust Karin Lane Sherri 1s-an der -so n _� �helly = r jTouhey Mike i i Street 1 11444 West Garvey Avenue Street 2 --- City West Covina State CA Zip 91790- Phone 1(626) 939-8438 Is Address Changed? General Information Last Name First Name!: ,Middle Phone initial rector Pasmant Andrew © `(626) 939-8401 1 Fiscal Officer Bachman Thomas (626) 939-8438 Secretary Rush Sue (626) 939 8433 Report Pre ared'By Independent Auditor Firm Name White Nelson Diehl Evans LLP -_ Last ISwink Callanan First Dennis Robert Middle Initial Street 1444 W. Garvey Ave J 2875 Michelle Drive Suite 300 "City: West Covina Irvine State _ CA CA Zip Code 191793- r92606- Phone (626) 939-8438 (714) 978-1300 1 General Information Page 1 12/15/2011. Z West Covina Redevelopment Agency . , , s j..2 .` w.. .v av,v a den E ...... ............... .. Achieve.ment lnformafion (Unaudited) Fiscal Year '2611 Indicate Only Those Achievements Completed During the Fiscal Year of this Report as a Direct Result 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.) y p , I Acbwt ,Re ort, Commercial Buildings Assisted with improvements and renovations to the Westfield 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 II of the development included the construction of a new 45,000 sq. ft. building for Best Buy and additional 30,000 sq. ft. of retail and restaurant building areas. Phase III consist of the addition of 32,000-35,000 sq. ft. of additional new retail space with new mini - anchor Nordstroms Rack and tenant Gold's Gym. The following are achievements at the Westfield Mall. Provided entitlement assistance to H&M and opening of an approximately 20,000 sq. ft. store. Project is now completed. Provided entitlement assistance to Gold's Gym and opening of an approximately 34,088 sq. ft facility. Project is now completed. Provided entitlement assistance to Chronic Taco and opening of a 600 sq. ft. restaurant. Project is now completed. Provided entitlement assistance to Foreign Exchange and opening of a 7,153 sq. ft. store. Project is now complete. Provided entitlement assistance to Fanzz and opening of a 1,900 sq. ft. store. Project now complete. 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 ACD J 57,028 57,028 816 Rehabilitated 165,700 165,700 A=Utilities B=Recreation C=Landscaping D=Sewer/ Storm E=Streets/ Roads F=Bus/Transit (Provided entitlement assistance to Love Diva and opening of a 830 sq. ft. store. Achievement Information (Unaudited) Page 1 12/15/201.1 r M M M� M M M� M r r -an ter M M� " r or M M M M M� = M M M M M� M M r M M i v 'AcFiievementnforrnation (Unaudited) Project is now complete. Provided entitlement assistance to T-Mobile and opening of a 2,499 sq. ft. store. Project is now complete. Provided entitlement assistance to Lenscrafters and opening of a 1,490 sq. ft. store. Project is now complete. Provided entitlement assistance for the relocation of Express and opening of a 8,000 sq. ft. store. Project is now complete. Provided entitlement assistance to Closet and opening of a 7,657 sq. ft. store. Project is now complete. Provided entitlement assistance to Nordstrom Rack (36,500 sq. ft.). Provided entitlement assistance to Lee's Sandwiches (2,861 sq. ft.). Provided entitlement assistance to Lazy Dog Cafe (8,652 sq. ft.). Provided entitlement assistance to Gatten Sushi (2,169 sq. ft.). Provided entitlement assistance to Love D (1,119 sq. ft.). Provided entitlement assistance to LA Nails (1,000 sq. ft.). Provided entitlement assistance to Skin Food (830 sq. ft.). Provided entitlement assistance to Tacos Mexico (767 sq. ft.). Provided entitlement assistance to All In Ink (1,007 sq. ft.). Provided entitlement assistance to Champs (5,006 sq. ft.). Provided entitlement assistance to the new relocation of Men's Warehouse (6,000 sq. ft.). Provided marketing and entitlement assistance to the Westfield Eastland Shopping Center in re -tenanting vacancies as a result of closures of Levitz, Circuit Achievement Information (Unaudited) Page `2 12/15/2011 e g^ v, 9 E,y, b F S :a U,F", z.•vr �. , ay.: s �S 'F � Covina Redevelopment,AgencY., u kf xt Redevelopment Agenaes Financial Transactions Report 5.1 '. ,�'�z°�'��e: � 'S�-::`: �� ;�u� ✓aS`� �. '":�i ....:,�,;.:.. ._i��xr.�an."�,..5��:.x1'�;'�� .'�>'u�.d �.r�..��:xis,.�•r �,"��-''��..�'c �:s�,.: :� .. � -.>f,:..�...- > r�w.a,..y"�` Achievement`Information"(Unaudited) ` , Hollywood Video, and the of Babies R Us. Provided assistance to Dick's Sporting Goods (46,364 sq. ft.) for interior remodeling. Project is now completed. Provided entitlement assistance to The Habit Burger and opening of a 2,200 sq. ft. restaurant. Project is now completed. �d entitlement assistance to PetSmart and opening of a 17,812 sq. ft. Project is now complete. ;d entitlement assistance to Styles For Less and opening of a 4,954 sq. ft. Project is now completed. Provided entitlement assistance in the facade improvement of Avenue Shoppes at the Eastland Shopping Center. Project is now complete. Provided entitlement assistance to Pacific Fish Grill (2,200 sq. ft.). Provided entitlement assistance to Dollar Tree (11,010 sq. ft.). entitlement assistance to Qdoba Mexican Grill (2,631 sq. ft.). Assisted McIntyre Companies in marketing to solicit tenants and entitlement assistance for four phases of rehabilitation and new facade improvements for the 6.37 acres McIntyre Square (former Country Club Center). Phase I (Shops A - 13,991 sq. ft.) will rehab the facade, store front, roof and walkways of the former Trader Joe's building. Phase II (Shops B - 11,167 sq. ft.). Phase III (Shops C - 4,787 sq. ft., Shops D - 9,742 sq. ft. and Restaurant - 3,228 sq. ft.). Phase IV (Shops E - 12,340 sq. ft. and Shops F - 5,214 sq. ft.). Phase V (Shops G- 9,746 sq. ft., Shops H 4,784 sq. ft. and Shops 14,030 sq. ft.). Provided entitlement assistance to Country Club Animal Hospital (1,638 sq. ft.). Provided entitlement assistance to Jersey Mike's Subs (1,285 sq. ft.) at the Citrus Grove Center. sisted Brighton Management through the entitlement process for the velopment of a 5-story, 110-room Marriott Fairfield Inn & Suites, approximately ,028 sq. ft. located at 3211 E. Garvey Avenue South. Project is now Achievement Information (Unaudited)`: Page'3' 12/15/2011 � M M M � M m! M a" M m � r M r M M M West Covina Redevelopment Agency.... Achievement Information (Unaudited) Provided marketing and entitlement assistance at the Sunset/Francisquito Center. New tenants that have opened include Fashion Outlet (1,105 sq. ft.), Blue Hills Dental (3,049 sq. ft.), and BB Threading (928 sq. ft.). Provided entitlement assistance for Citiwear (6,500 sq. ft.). Provided marketing and entitlement assistance to QuailRidge Shopping Center, located on Nogales Street. New tenants that have opened include Shaolin Temple (1,300 sq. ft.) and Vision Center (2,468 sq. ft.). Provided entitlement assistance to Happy Art Studio (1,240 sq. ft.). Provided marketing and entitlement assistance to Golden Eda Properties in marketing vacancies within the 118,836 sq. ft. Hong Kong Plaza shopping center. Provided entitlement assistance to Yum Cha Cafe and opening of a 1,303 sq. ft. restaurant. A Provided entitlement assistance to The Crawfish Spot (1,975 sq. ft.). Provided entitlement assistance to Tao Martial Arts Studio (2,500 sq. ft.). Provided marketing and entitlement assistance to South Hills Plaza, located on 1414 S. Azusa Avenue. Provided marketing assistance to the former Orchard Supply Hardware site, located on 501 S. Vincent. Provided marketing and entitlement assistance to re -tenant the former Best Buy, DSW, Barnes & Noble and Starbucks at Marketplace II. Provided entitlement assistance to Toys R Us/Babies R Us (66,000 sq. ft.) and Michael's (30,000 sq. Facilitated and coordinated ground breaking and grand opening ceremonies for new businesses. ooWestfield West Covina Nordstrom Rack and Gold's Gym Groundbreaking Ceremony. Marriott Fairfield Inn & Suites Grand Opening Ceremony. Renewed the Agreement for City Sponsored Event Services with the Greater West Covina (GWC) Business Association. Under the Agreement, GWC is to Achievement Information (Unaudited) Page 4 12/15/2011 West Co{uina,Red"y'ko rnent,AgencY Achievement Information (Unaudited) coordinate am operate at no cost to the City, various events to promote the City and surrounding businesses at the Lakes Entertainment Center. Coordinated the annual meeting of the Auto Plaza Business Improvement District (BID), and implemented their budgetary planning and assessment needs for the BID's ongoing operations for the fiscal year 2011-2012. Entered into a purchase contract for the sale of the 1420 South Willow Avenue property. CDC staff directly marketed, negotiated, and executed the sale of the 1,575 sq. ft. single-family home, constructed in August 2009. Closed escrow. Project is now complete. Negotiated and entered into an Owner Participation Agreement (OPA) with West Covina Senior Villas II, LP for the development of a 65-unit affordable senior housing project on the 1.07 acre Azusa/Workman site. Monitored the OPA and provided entitlement assistance to the developer. In Prepared and monitored Affordable Housing Compliance guidelines and requirements pursuant to the Affordable Housing Agreements for the restriction of affordable housing units. Heritage Park Apartments (14 affordable housing units) Lark Ellen Village Apartments (122 affordable housing units) The Promenade Apartments (124 affordable housing units) Mauna Loa Apartments (12 affordable housing units) West Covina Senior Villas I Apartments (85 affordable housing units) Since fiscal year 2010-2011, the CDC has processed 51 loans under the Home Improvement Loan Program (HILP). A total of 1,686 loans have been issued since HILP inception in 1970. Since fiscal year 2010-2011, the CDC has processed 1 loan under the Housing Preservation Program (HPP). A total of 347 loans have been issued since HPP inception in 2000. Prepared and mailed packets to Housing Preservation Program (HPP) loan recipients' who have yet to repay the loan within the 10 year interest free period a Achievement Information (Unaudited) Page 5 12/15/2011 M m r m M r m m m M r M i M M W M M M Ln °' � <.. .�'«� � r � ,�,x� r � � � � _ s�i�; � .€:.ra�r, s .n ; '?,� �s�� ;s�..,a � i ,;� ?"w. S t #�'Y!2:._f '�� -Sr�.x �'°' haw -'.✓ P�� .�� ' �- `�.k.� ��,� ;...�� ...` �,:� �� ...,�.._. West Covina Redevelopment,v�►gen.cY;r: ,........ ��Z.,... ._. ;.z....w�>;��.� .y.��.�. ��,�� >� } Redevelopment Agencies Financial�Transactions Report v ..4 .. ,� .,..,,.. �_1... n- , ,'Sr......� y...c �. . r� r { cy, 3, . - ,o .. � F .. •.)��' .-�xSv'�, run �` E: n �. .,. si'„�a-J..e .., e. w b _a�., z._ � .. ., ,-.. ., _ ., �.. .. tea,_ .., �.e . ��<. � "5 aS'. _ ...,, o -. .. x Achieve ment'Information (Unaudited) monthly payment booklet and payment schedule, to be returned as part of the mortgage payment. Prepared requested subordination, reconveyances, and beneficiary statements to loan receipts of both the Housing Preservation Program (HPP) and Home Loan Improvement Program (HILP). Prepared annual redevelopment reporting requirements (Statement of Indebtedness, State Controller's Report) in compliance with California Redevelopment Law. Monitored and analyzed (for compliance) state bills and statutes pertaining to redevelopment. Prepared affordable housing database of units that were built or substantially rehabilitated using CDC Housing Set -Aside funds, in compliance with Assembly Bill 987. Assisted Finance Department in the proper administration of the Community Facilities District (CFD) agreements. Achievement Information (Unaudited) Page 6 12J15/2011 Audit Information Fiscal Year 2011 Was the Report Prepared from Audited Financial Data, _Yes and Did You Submit a Copy of the Audit? Indicate Financial Audit Opinion Unqualified 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 I_n You Submit a Copy of the Audit? N Indicate Compliance Audit Opinion If Compliance Audit is not yet Completed, What is the Expected Completion Date? Audit Information Unqualified Yes Page 1 If compliance opinion includes exceptions, state the areas of non-compliance, and describe the agency's efforts to correct. 12/15/2011 M M M M M M M a M M r M M M M r M M M M M M r m m ,m m m M r m M r M M M M M Fiscal Year 2011, - Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Activity Report ., Provided marketing and entitlement assistance to QuailRidge Shopping Center, located on Nogales Street. New tenants that have opened include Shaolin Temple (1,300 sq. ft.) and Vision Center (2,468 sq. ft.). Provided entitlement assistance to Happy Art Studio (1,240 sq. ft.). Provided marketing and entitlement Ln assistance to South Hills Plaza, W located on 1414 S. Azusa Avenue. Maintained and distributed the available property listing to potential tenants and businesses. Maintained and distributed the expanding tenant list to commercial property owners. Attended ICSC conferences in September (San Diego) and May (Las Vegas) to solicit tenant and development interest. Redesigned the CDC portion of the City's website to provide information to businesses and residents. Project Area Report Project Area Name, ; Citywide Project Area 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 O = 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) F 6/15/1999 Most Recent Date Project Area was Amended Did this Amendment Add New Territory? j No Most Recent Date Project Area was Merged _ Will this Project Area be Carried Forward to Next Year? Yes Established Time Limit: Repayment of Indebtedness (Year Only) Effectiveness of Plan (Year Only) 2030 New Indebtedness (Year Only) — 2030 Size of Project Area in Acres _ 302 Percentage of Land Vacant at the Inception of the Project Area ;- _ 0.0 Health and Safety Code Section 33320.1 (xx.x%) Percentage of Land Developed at the Inception of the Project Area 100.0 - Health and Safety Code Section 33320.1 (xx.x%) Objectives of the Project Area as Set Forth in the Project Area Plan RCPO (Enter the Appropriate Code(s) in Sequence as Shown) R = Residential I = Industrial C = Commercial P = Public O = Other Project Area ReRorf; at,:. 12 1,ii2ftlge 1 12/15/2011 Activitv Report Assisted with improvements and renovations to the Westfield 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 II of the development included the construction of a new 45,000 sq. ft. building for Best Buy and additional 30,000 sq. ft. of retail and restaurant Cn building areas. Phase III consist of the addition of 32,000-35,000 sq. ft. of additional new retail space with new mini -anchor Nordstroms Rack and tenant Gold's Gym. The following are achievements at the Westfield Mall. Provided entitlement assistance to H&M store and opening of an approximately 20,000 sq. ft. store. Project is now completed. Provided entitlement assistance to Gold's Gym and opening of an approximately 34,088 sq. ft facility. Project is now completed. Provided entitlement assistance to Enter Code for Type of Project Area Report P = Standard Project Area Report L = Low and Moderate Income Housing Fund O = Other Miscellaneous Funds or Programs Does the Plan Include Tax Increment Provisions? Date Project Area was Established (MM-DD-YY) Most Recent Date Project Area was Amended Did this Amendment Add New Territory? Most Recent Date Project Area was Merged Will this Project Area be Carried Forward to Next Year? Established Time Limit Repayment of Indebtedness (Year Only) Effectiveness of Plan (Year Only) New Indebtedness (Year Only) Size of Project Area in Acres A = Administrative Fund M = Mortgage Revenue Bond Program S = Proposed (Survey) Project Area Yes —_--12/20/1971 (� 6/17/2008 Nol 12/21 / 1993 Yes' Percentage of Land Vacant at the Inception of the Project Area Health and Safety Code Section 33320.1 (xx.x%) Percentage of Land Developed at the Inception of the Project Area Health and Safety Code Section 33320.1 (xx.x%) Objectives of the Project Area as Set Forth in the Project Area Plan (Enter the Appropriate Code(s) in Sequence as Shown) 2039� C_------20291 _ 2029. 1,942 15.0'; R = Residential I = Industrial C = Commercial P = Public O = Other 85.0 RICPO' Proj ce t Afea;,Repo,rt ap,<=tE� 42/15/2013 ' M M M � M M M M M M M M M M M M M M M Ln Ln ke8eve opmph Agencies "" t Assessed Valuation Data Fiscal Year 2011 Project Area Name Frozen Base Assessed Valuation Increment Assessed Valuation Total Assessed Valuation Citywide Project Area 165,200,966 268,719,106 F----433,920,69 Assessed Valuation Data Page 1 12/15/2011 Ln 0) Assessed Valuation Data , Fiscal Year 2011 Project Area Name Frozen Base Assessed Valuation Increment Assessed Valuation Total Assessed Valuation West Covina Redevelopment Project Area I 197,455,633 .............. ....................... 1,719,163,273 1,916,618,906I Assessed Valuation Data Page 2 12/15/2011 � M M M M M M M M M M M M r M M M M M Pass -Through Y:$chool District Assistance Fiscal Year 2011 Project Area Name Citywide 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 33676 Section 33607 Section 33445 Section 33445.5 County 274,655 $274,655 Cities �� 65,581 $65,581 zk= G School Districts 81,4341 $81,434 In Community College District 14,1731 $14,173 Special Districts j 29,1031 $29,103 Total Paid to Taxing $0 $0 $464,946 $464,946 $0 $0 Agencies Net Amount to A enc�k 1,731,975 - Gross Tax Increment •, •_�_, F �„=,_. 2,196,921 Generated Pass -Through / School District Assistance Page 1 12/15/2011 , h�...,.3._.... _. Pass -Through/ $chool•District'Assistance Fiscal Year 2011 _ ---I 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 33676 Section 33607 Section 33445 Section 33445.5 County 2,419 3,186,163 $3,188,582 Cities -- ---- -- — ... - 155,843 $155,843 -- - -- School Districts --- 990,001 $590,001- Community College District --- - 97,4991 $97,499 Ln Special Districts I „ . I 52,7101 $52,710= Total Paid to Taxing $0 �- $2,419 $4,082,216 $4,084,635 1 $0 1 $0 Agencies Net Amount to Agency y, ��` �i. r .^� $13,260,618 Gross Tax Increment 89_ s }fix f = _:: J�-k, i > " :i s> 17,345,253 Generated Pass -Through / School District Assistance Page 2 12/15/2011 M M M M M M M M M M M M M M M M M M M M M M M M M M M M M W M M M Redevelopment EA al" Transactions nc! T a� rmaiV�ohhe'Sta c Summary terhent of Project Area'' Fiscal Year 2011, Project Area Name Citywide 40 Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt Low and Moderate Income Housing Fund Other Total un Available Revenues LD Net Tax Increment Requirements Summary of the Statement of Indebtedness - Project Area ....... . . . . -17,252,000 196,226,387 24,461,000 33,939,000 $271,878,387 $276,109,952— Page 1 12h5/2011 West Covina' Redevelopment Agency& b y,z'ro i ✓- rFx T wsfi {' y�Rede�elopment AgenclesFinancial TransactionsReport� e Summaryof the Statement of Indebtedness 0roje,c rea Fiscal Year 20.11 Project Area Name VVestaCovmaRedevelopment Project Area I,.., .� .F_ Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt Low and Moderate Income Housing Fund Other Total 0) Available Revenues 0 Net Tax Increment Requirements Summary of the Statement of Indebtedness - Project Area Page 2 12/15/2011 M M M M r M Agency Long -Term Debt Fiscal Year F2O 11 Forward from Prior Year Bond Type Year ofAuthorization Principal Amount Authorized Principal Amount Issued Purpose ofIssue Maturity Date Beginning Year Maturity Date Ending Year Principal Amount unmatumuBeginning n,Fiscal Year Adjustment Made During Year m Adjustment Explanation interest Added toPrincipal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount oefeonuuDuring Fiscal Year Principal Amount unmammmEnd p,Fiscal Year Principal Amount In Default interest In Default Bond Types Allowed: � � Tax Allocation Bonds; Revenue Bonds; Certificates mParticipation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; uoS=e/ Compensation;Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Other. L--------'------ ----- Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year West CoA[WRedevelopmel 't A"" evelopment Agencies`FlnalnciaL"Transact><ons Reporty , Agency Long -Term Debt Chide Project Area _� Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year Adjustment Explanation N Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default City/County Debt 2003 F— 2,900,000 2,900,000 Line of Credit — — 200]6 2009I $1,100,000 1,100,000 $0 Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other - ",'1bi•3 ge2Ten-- 1 2 _ , •,.;�ency�Tern.,1C,,,�t � .�.r�n:� , . «'��.. ..�: � `�, /� � ' M M M M M M M M M r M M M M M M M M M �� "�� y� y��West4Couina�Redevelopment Agency �_ ��' ��' �� k rw RedevelopmentAgeneies Ftnancial,Transactlons Report Agency Long -Term Debt Fiscal Year 2011 Project Area Name West Covina Redevelopment Project Area _ Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year rn Adjustment Explanation W Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: (Deferred Pass-Throughs 11,077,146 11,077,146 !Deferred Pass-Throughs - County 19901 ---- - — — 2013 $9,626,620 673,864 $10,300,484 Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other .....JIV .=Agency:Long=Term Debt , .:�.,` Page . ,2! i ,1;i, Page 3 :,.r.t, ,.r ,� � , .:�,.: _ ;c...12/15/2011 ... ;'rc Y � ✓.. RTM V,"ST opmenAgency 7.,, 01 Atinngecap<-orrt5_ an,ts � Nfi Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt 2011 West Covina Redevelopment Project Area Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year rn Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Other__ _ 15,580,497 15,580,497 Compensated Absences 1996 2013 $210,486 58,495 28,600 $240,39.17. Bond Types Allowed:Vm WNN H i Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; ` Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other r = == M == == ===so M == mm == Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt F261 l FWest Covina Redevelopment_ Project Area Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year Adjustment Explanation t-n Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: 1Other i 1-9771 i 31,569,156 31,569,156] ,Developer Agreement -J 1971 20311 $26,778,869 4,502,504 — ------ - -- -- --- ---- 1,382,105 $29,899,268 Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other 12/15/2011" ,;Age �fcy . Long-T6n-nZiJbt Pa'-�vi 12',15:4: I'Page 5 1 , fi x x ?' v Y.t , .,West Covina Redevelopment Agency v r� �:- 1� ry A 7`z.�"' %` $, Y. F"Y's? 'js3,..- :a'Y.3z «: ,� a :� �.a; xip«::'*„ a�^'5,. .`.:.::� ...:,2`"''•'..s.:a:.,.a...3 ;.`,,., t ..:. r r ex1g, _ sf'' ,..� r.-;:•• Retleuelopment¢AgenciesFinancial frTlransactions Re ort' Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt 2011 West Covina Redevelopment Protect Area _. __.__..,_.._ __ _.__ Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year Adjustment Explanation 0) Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Yes (Revenue Bonds 1988 7,750,000 7,750,000 Parking Project 1994 �2018 $4,540,000 365,000 (�4,175,000 I Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other { v r r ' •i "iF;t r. :.aencyr , ;i r M = = = = i r M= M = = M 'E Redevelopment Agencies `FtnanctalkTransacttons Report s .° f Agency Long -Term Debt Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year 2011 West Covina Redevelopment Project Area Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year Adjustment Explanation v Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: Yes [Fevenue Bonds — 51,220,000 51,220,000 Fashion Plaza Project - - - - -- 2022 $37,355,000 r 1,485,000 $35,870,000 Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other i ,".. . ,,, :Agency:Long-TermtDebt ,?, ,f Uae ,+: :_. �r.�t i~ rr:.- , ... _F� :S,�J-i:.page.7r: r:.Y-n.: c,.:_ rt: ., i,. C : 12/15/2011 �� f West Covina Retlevelopment Agency, �f s.�'z. _�..5� �..°�+«�.�=-�is`�, ix�r<,.�.�;> � ..,.... . „3...7z� k ,.., .,r F-,. ,.,M ...a.��. xsi._. :.� .:3;•-..:.kt_.x,..� ...,�,i,�m:nz.s .u;.�a.,.,:. �, s�.,�,-_ " , .. .,,.� 4,t«': -, s7. -i� �_ . _ . ,. .._. .,-. � _.. fl.�,,...�- AqF Redevelopme,ntAgenectes',,Financial„Transactions,Report Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt F011.___ [West Covina Redevelopment Project Area __-__ _-._.__ _ Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year rn Adjustment Explanation Co Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Tax Allocation Bonds 19981 6,145,0001 C 6,145,000 Executive Lodge Project - 1998 2025 $4,585,000 1190,000 �::1 $4,395,000 7. Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other e8.: .:iv r.' ��- `-',<r12/ 11. .. ehc Te ;enz. i1r , M. M = == i == r = m m m m West Covina RedeveloRJ5pment Agency . _..z Redevelgpment Agencies F�rnanc�aj Transact�onsF Report Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt West Covina Redevelopment Project Area Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year p1 Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Tax I _ ------ 1999 3,945,OOO�I 3,945,000 West Covina Project Area 1999 2029 $3,800,000 125,000 I $3,675,000 17 F Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other Agency.Long Ter`m'tjebt t ,e:>. <, t,E 512E)�i 1?age`9: 1.2/157 011 _ West Covina Redevelopment Agency �,� „ �,,' �r , Redevelopment AgenciesFtnancial TransacttonsReport � �„ �„ .. e. � �..� .... Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt 2011 West Covina Redevelopment Pro ect Area Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year v Adjustment Explanation 0 Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds 2001 11,275,000 11,275,000 L/M Income & Senior Housing Programs 1 2002� ----20311 �---- - $8,605,000 — 1 I 370,0001 _-$8,235,000 I Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State; I Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other ;fiPaa 1 �. :.121151 r.;, . Fiscal Year Project Area Name Forward from Prior Year Bond Type Year ofAuthorization Principal Amount Authorized Principal Amount |osued Purpose ofIssue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt --- i Redevelopment Proect Area Principal Amount unmatumuBeginning vrFiscal Year Adjustment Made During Year w Adjustment Explanation Interest Added voPrincipal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Doo:usodDuring Fiscal Year Principal Amount unmmmnmEnd cxFiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: i i Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; UG;atate; � � ,' M, y5rs "n -zr sek �� z? „g WestCovtna Redevelopment�Agency ...F Fiscal Year Proiect Area Name Tax Increment Gross (Include All Apportionments) Special Supplemental Subvention Property Assessments Sales and Use Tax v Transient Occupancy Tax N Interest Income Rental Income Lease Income Sale of Real Estate Gain on Land Held for Resale Federal Grants Grants from Other Agencies Bond Administrative Fees Other Revenues Total Revenues 2011 Citywide Project Area Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total 2,196,921 $2,196,921� $0 $0 $0 $12,005 $2,203,117 $0 $0 12,215,122 Statementof Income and ExpenditIOres - Revenues Page 1 12/15/2011 r M M M M M M M M M M M M M M M M M M �s42. �� West Covina Redevelopment Agency x � � ��,� � Redevelopment Agencies Financial T,r�$a^nsactions�Report�� ,�� Statement of Income and Expenditures --Revenues ............._................ .... ................ Fiscal Year '2011 .............. _.... _..................._ Proiect Area Name 1west Covina Redevelopment Project Area — -- - Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross (Include All Apportionments) Special Supplemental Subvention Property Assessments Sales and Use Tax v Transient Occupancy Tax W Interest Income Rental Income Lease Income Sale of Real Estate Gain on Land Held for Resale Federal Grants Grants from Other Agencies Bond Administrative Fees Other Revenues Total Revenues �- 17 345,253� $17,345,253 -- — — 2,126,5881 iE U6,588 575,316 $575,316 1 -- I--__--- -_- -- -J- $0 13,664 ! 369,905 j 67, 85 6 $451,155 I 62,900I $62,900 250,199 I - —�— $250,199 -- -- - --- $0 1,028,754 889,462 601,213 $2,519,429 $1,105,318 1 $21,306,524—J $618,998 $0 $23,330,840 Statement of Income and Expenditures - Revenues Page 2 12/15/2011 Statement of n'co,me,and Expenditures. -'Expenditures ' Fiscal Year 2011 Project Area Name Citywide Project Area Administration Costs Professional Services Planning, Survey, and Design Real Estate Purchases Acquisition Expense v Operation of Acquired Property A Relocation Costs Relocation Payments Site Clearance Costs Project Improvement / Construction Costs Disposal Costs Loss on Disposition of Land Held for Resale Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total — 191,823 1— 36,278.L -_- $228,101 13,977 $13,977 f--� -_ - --- -I -- 1- $0 $0 ----- f_—I . _. -- -----L --� $0 $o -- -- - - -----� --- _ �— $o ---- - --1 �r $0 ,: r0t as -:E �t'tures P. e?.1 12/15/2011 xrr_ teme com xpe M Nw r �s r M r M M M am M MM = == == = M M MIMMMM mmm Statement of Income and Expe,ndlitures Expenditures Fiscal Year pi I Project Area Name � ity_wide project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total I Decline in Value of Land Held for Resale 1 $0 Rehabilitation Costs Rehabilitation Grants $0 Interest Expense --[_--41,229] $41,229'— Fixed Asset Acquisitions Subsidies to Low and Moderate Income Housing Debt Issuance Costs $0, Other Expenditures Including Pass- 2,429,2151 $2,429,215� Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes i $0 Revenue Bonds, Certificates of $0 Participation, Financing Authority Bonds City/County Advances and Loans 1,100,000 $1,163,353 All Other Long -Term Debt L $0 Total Expenditures $1,34,800 '1 $2,506,722 r 971 UT2,522 Excess (Deficiency) Revenues over ($17293,795)1 ($303,905) $0 $F_J ($1,597,400)— (under) Expenditures .Statement.'ofancotTi,3t;��-.Expenditures - Expenditures 2 Statement 6 .lnncome and Expenditures'- Expenditures Fiscal Year 2011 Project Area Name West Covina Redevelopment -Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs 1,017,085 285,025 i 1,479,350 $2,781,460 Professional Services 743,544 182,548 $926,092 Planning, Survey, and Design E��— — �— _�— $0 Real Estate Purchases L ,� _ � $0 —. Acquisition Expense — - - -- ... .... .... $0 v Operation of Acquired Property 19,248 _ $19,248 Relocation Costs I r — $0 Relocation Payments Site Clearance Costs Project Improvement / Construction Costs 98,907 —1 3,910,462 $4,009,369 Disposal Costs — $0 Loss on Disposition of Land Held for $0� Resale x .enc,+. g, Statement 6ffi Ine6f ?and:Exo6nditures. ,Ex enditures . tijt.. < r.. � .i; 3 +t, .:;, ".:.. : _� ,._, , ° : i :.4 ,p E f12/1$I�014 1 == M M M r M M M M= r M r=1 M M M r Statement oflncome.and Expenditures = Expenditures Fiscal Year 2011 _ Project Area Name West Covina Redevelopment Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Decline in Value of Land Held for Resale Rehabilitation Costs Rehabilitation Grants Interest Expense v Fixed Asset Acquisitions v Subsidies to Low and Moderate Income Housing Debt Issuance Costs Other Expenditures Including Pass - Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes Revenue Bonds, Certificates of Participation, Financing Authority Bonds City/County Advances and Loans All Other Long -Term Debt Total Expenditures Excess (Deficiency) Revenues over (under) Expenditures Total $0 - - 4,659,713 $4,659,713 645,000 560,000 $1,205,000 - - - 1,850,000 — - $1,850,000 2,000,000 603,162$2,603,162 1,410,'05� - $1,410,705 $3,878,784 $15,103,298 $6,858,932 $0 $25,841,014 ($2,773,466) '1 $6,203,226 ($5,939,934) $0 ($2,510,174) . _. i.L ��e;,tr_a ,e.. ,. ;=Statement .of<In¢o€ne and €xpenditures_ Expenditures..>... , .. ,...._ .c.a: .4. ..c, �,.,,. s ,, s,,_ .._r-+3/:1�5/20.11 ._. Proceeds of Long -Term Debt Proceeds of Refunding Bonds Payment mRefunded Bond Escrow Agent Advances from City/County Sale nfFixed Assets Miscellaneous pinanmngSources (U000) — Operating Transfers m Tax Increment Transfers m Operating Transfers Out Tax Increment Transfers Out Capital Project Debt Service Low8wvuo,ato Special Funds Funds Income Housing Revenue/Other Tota I so so 3,100,000 (To the Low and Moderate Income Housing Fund) M mm r rr = = M = M� M mmm Tth iR inandaft, Statement of Income and Expenditures - Other Financitig Sources Fiscal Year Project Area Name [citywide Project Area -------- Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess (Deficiency) of Revenues and $1,806,20-51 ($7,312,040) $3,908,435 F- $0 F ($1 597,400) Other Financing Sources over Expenditures and Other Financing Uses' Equity, Beginning of Period $2,687,481 �F —($5,828,055) $71 $0 ($3,140,574) Prior Period Adjustments $07 Residual Equity Transfers F- $o Equity, End of Period $4,493,686—J (W,140,095) $3,9574-351 $0 1 ($4,737,974) St , i0- SG ,6t6mdnVbf4ndbne. 6�t r it r Fiscal Year Project Area Name Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds ovLong-Term Debt p" Proceeds ovRefunding Bonds L so Payment toRefunded Bond Escrow Agent | ^v Advances from city/County Sale o,Fixed Assets L--__---_-__J-_-_ | °" miscnn�noousFinanmn000urn�s(uooa} so Co__-__-_____`__ ^~ Operating Transfers |n L- | - __-_-�l $" Tax Increment Transfers m l *v Operating Transfers Out LL_ s" Tax Increment Transfers Out _]_ | | $v (To the Low and Moderate Income Housing Fund) Total Other Financing Sources (Uses) so $0 F— so mmm MMMIMM M MM M M WM M MM M eVe16 3 Redevelopment Agencies Financial --rainsa'C ion' Stafern-ent, ofincomci and Expenditures -'Other Financing Sources Fiscal Year F2O 1 Project Area Name West CovinaRedevelopMenCProject Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess (Deficiency) of Revenues and ($2,773,466) $6,203,226 ($5,939,934) $0 (U,510,174) Other Financing Sources over Expenditures and Other Financing Uses Equity, Beginning of Period $3,017,991 $12,396,170 $16,271,9.08 $0 $31,686,069 Prior Period Adjustments 00 Residual Equity Transfers $0 Equity, End of Period $244,525 $18,599,396 J $10,331,974 $0 $29,175,895 ,d''Ej- '� ft-ScStatqeht.of-Incohehd o OrFihaicing Sourcest� U Statement bf income and Expenditures - Summary; Page 1 12/15/2011 Combined Transfers In/Out M rm m m m mm M M� = MMMMMMM Balance Sheet - Assets and Other Debits Low/Moderate Special Fiscal Year 2011 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Assets and Other Debits Cash and Imprest Cash 5,252,477 9,445,0861 4,753,663 1 $19,451,226 Cash with Fiscal Agent _T1 ------- 2 9891 1,367,251 $7,380,2 40 Tax Increments Receivable 531,2221 $1,531,222 Accounts Receivable 718 , di $35,943,078 Accrued Interest Receivable F-------5,7401— 16,7031 — — — — -- $22,447 1— 00 Loans Receivable W ------ 27,008,123 $27,008,123 Contracts Receivable Lease Payments Receivable $0 Unearned Finance Charge $0 Due from Capital Projects Fund v-z 4 $0. Due from Debt Service Fund 7,873,577 Due from Low/Moderate $0 Income Housing Fund Due from Special $0 Revenue/Other Funds 6 etfQkOitg-,� P- _0z -:,B�l hc i,Sheett�,,As�' t �6nd, h Balance Sheet Assets arid'Other Debits, Low/Moderate Special Fiscal Year 2011 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Investments - Other Assets -- ---- 2,118 197,041 — -, ;. $199,159 _. _ Investments: Land Held for 67,040 n _ F j;:. ., r _x $67,040 Resale Allowance for Decline In__—_ $0 Value of Land Held for Resale Fixed Assets: Land. r R 15,753 616 $15753,6 16 , pp Structures, and Improvements 18,499,583 $18,499,583 Equipment Amount Available In.Debt 5,459,302,p, , F; $ $5,459,302 Service Fund ___.. Amount to be Provided for ---�— rr- . s: ....._......_ ...................... -- _ _$122,362,240 122,362,240 ; Payment of Long -Term Debt Total Assets and Other $41,195,617 7F$17,008,118 $41,272,373 $0 $127,821,542 $34,253,199 $261,550,849 Debits (Must Equal Total Liabilities, Other Credits, and Equities) 0�'i i'li? a.l ,"`t4i£"!".• °d , ... ,'1 ..� • � � '�, � n M M M:M-ter M M M M M = M M-M M M W M M Balance Sheet -Liabilities and.6ther Credits Low/Moderate Special Fiscal Year 2011 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 165,88 1 103,163 14,474 I A 8 Interest Payable Tax Anticipation Notes Payable $0 LA - - Loans Payable ---- -7 ---L 7 $0 Other Liabilities -3 6,2 27,017,490 $66,881,092 Due to Capital Projects Fund $0 Due to Debt Service Fund $0 Due to Low/Moderate 7873 ,,577 . ........ . . . $7,873,577 Income Housing Fund 00 Ln Due to Special - ------------ $0 Revenue/Other Funds Tax Allocation Bonds Payable 25,815,1600 1,� 'Z_ $25,815,000 Lease Revenue, Certificates 40,045,000 00 of Participation Payable, Financing Authority Bonds All Other Lon Term Debt Ff 91 061,542 $61,961,542 Total Liabilities and Other $36,497,496 $11,548,817 1 $27,9311,96T_J $0,1 $1127,Kl.,_;5�42, $202,859,729 Credits eet - Liabilities and Other Balance Sheet Credits -'Pagel .12/15/2011 _0 Fiscal Year 2011 Equities Investment In General Fixed Assets Fund Balance Reserved Fund Balance Unreserved -Designated Fund Balance Unreserved-Undesignated Total Equities 00 Total Liabilities, Other Credits, and Equities bala' rdeSh6ef.w-'Liabilities and Otfier Credits Low/Moderate Special Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total _ — 1--= -- 34,253,199 $34,253,199 67,040 6,015,107 14,240,409 20,322,556 --- F-74,6711171 1 7,115,238 ,� $11,786,409 —-_,- -- C----7,671,044 C— ($7,671,044) $4,7381211 J $5,459:30171 $14,240,409 $34,253,199 $58,691,120 $41,195,617 $17,008,118 $41,272,373 1— $0 61 $127,821,542 ;P4,253,1994. $261,550,849 Balance Sheet —Liabilities and Other Credits - Page 2 12/15/2011 t 1=1 r M M IM M r M M m m m m m m m m m m Fiscal Year 2011 West Covina. Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Revenues - Consolidated Low/Moderate Special Captial Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross $0 $19,542,174 $0 _T071 $19,542,174 Special Supplemental Subvention �— $0 �— $0 $0 $0 $0 Property Assessments $0 1 $2,126,588 l $0 ` $0 $2,126,588 Sales and Use Tax $0 $575,316 $0 $0 r $575,316 Transient Occupancy Tax r$0—$0 $0 00 Interest Income $25,669 r $376,101 $67,586 $0 $469,356 Rental Income $62,900 $0 �` $0�' $0 $62'900 Lease Income $0 r $0 0� $0 1� $0 Sale of Real Estate �� $0� $0 $0 $0 $0 Gain on Land Held for Resale $0 $0 $250,199�—$0 $250,199 Federal Grants $0 $0 $0 $0 1 $0 Grants from Other Agencies—$0 ri $0 $0 $0 $0 Bond Administrative Fees $0 $0 $0 r $0 r$0 Other Revenues 1 $1,028,754 $889,462 $601,213 $0 $2,519,429 Total Revenues 1 $1,117,323 1 $23,509,641 1 $918,998 $0 $25,545,962 Revenues - Consolidated Page 1 12/15/2011 e West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Fiscal Year 2011 Administration Costs Professional Services Planning, Survey, and Design Real Estate Purchases Acquisition Expense Operation of Acquired Property Relocation Costs Relocation Payments Site Clearance Costs Project Improvement / Construction Costs Disposal Costs Loss on Disposition of Land Held for Resale Expenditures - Consolidated Expenditures - Consolidated Low/Moderate Special Capital Projects Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total $1,208,908 1 $321,3571 $1,479,350 1 $3,009,561 $757,521 $0 $182,548.9 $0 $940,069 $o $o $o $o $o $o $0 $0 $o $o $o $o $19,248 $0.. $0 $0 1 $19,248 $o $0 $0 $0 so- $0- $o $o r- $o $o $o .1, . $o $99,9071 $0 $3,910,462 $0 $4,009,369 $o $o — $o $o $o $o �_ _ $o $0 Page 1 12/15/2011 M1=1 IM M M 1=1 1=1 air M M r1=1 s .m IM r M1=1 s 1=1 M M m i m m m m MIMI r m m r m1=1 M M West Covina Redevelopment Agency Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures Fiscal Year 2011 Decline in Value of Land Held for Resale Rehabilitation Costs Rehabilitation Grants Interest Expense Fixed Asset Acquisitions 00 Subsidies to Low and Moderate Income Housing Fund Debt Issuance Costs Other Expenditures Including Pass Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes Revenue Bonds and Certificates of Participation Expenditures - Consolidated Capital Projects Debt Service Low/Moderate Special Total Funds Funds Income Housing Revenue/Other Funds Funds A B C D E $o $o $o .�. $o $o $0 $7,088,928 I $0 $0 $7,088,928� $0 $645,000 1 $560,900 $0 $1,205,000 $0 r $1,8,000 $0 50$0 $1,850,000 City/County Advances and Loans $3,106,000 $603,162 $0 $0 $3,703,162 U.S., State and Other Long -Term Debt �— $0 $1,410,709-1 $0 1 $1,410,705 Total Expenditures r $5,184,584 $17,610,020 $6,858,932 r� $0 $29,653,536 Excess (Deficiency) Revenues ($4,667,291) I $5,899,621 ($5,939,934) $0 ($4,107,574) Over (Under) Expenditures Expenditures - Consolidated Page 2 12/15/2011 Fiscal Year 2011 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 �r $0 $0 $0 �— $0 $0 Proceeds of Refunding Bonds $0 $0 $0 $0 ' $0 Payment to Refunded Bond Escrow —$0 ' $0 $0 $0 :1 $0 Agent Advances from City/County $0 $0 $Or $0 $0 O Sale of Fixed Assets I $0 $0 $0 F $0 $0 _ Miscellaneous Financing Sources (Uses) $0�$0 $0 $0 ! $0 Operating Transfers In I $3,100,000 1 r $0 $0 I $0 1 $3,100,000 Tax Increment Transfers In 4 ° x $3 908,435 „,�., r. �.. .,,.t�� ,.... $3,908,435 _ Operating Transfers Out $0 $3,100,000 1 $0 1 $0 $3,100,000 Tax Increment Transfers Out $0 $3,908 435? �, M $3,908,435 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources (Uses) $3,100,000 ($7 008,435) $3,908,435—$0 r� $0 Other Financing Sources (Uses) - Consolidated Page 1 12/15/2011 = 1=1 1=1 M M = mIN IM1 1=1 M = alp r s r r = M r it r rr rrr r r ar r r rr +�■� rr ilr it r� rr r� 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 �-' Prior Year Adjustments Residual Equity Transfers Other (Explain) Equity, End of Period Capital Projects Debt Service Low/Moderate Special Total Funds Funds Income Housing Revenue/Other Funds Funds A B C D E ($967,261) ($1,108,814) ($2,031,499) $0 ($4,107,574) Other Financing Sources (Uses) - Consolidated Page 2 12/15/2011 Page Intentionally Left Blank 01) M M r r M r M M M r r M r M M M On M M Re STATEMENT OF INDEBTEDNESS -CONSOLIDATED FILED FOR THE 2011-12 TAX YEAR Name of Redevelopment Agency West Covina Redevelopment Agency Name of Project Area Merged Project area Consolidate on this form all of the data contained on Form A and B (including supplemental pages). Form A is to include all indebtedness entered into as of June 30 of the Fiscal Year. Form B may be filed at the option of the agency, and is to include indebtedness entered into post June 30 of the Fiscal Year, pursuant to Health and Safety Code Section 33675(c)(2). This is optional for each agency and is not a requirement for filing the Statement of indebtedness. The Reconciliation Statement is to include indebtedness from Form A only. Certification of Chief Financial Officer: Pursuant to Section 336775 (b) of the Health and Safety Code, I hereby certify that the above is a true and accurate Statement of Indebtedness for the above named agency. Rev 7/6/2000 Thomas Bachman Assistant City Manager Name T ;,i Cover Page STATEMENT --'OF INDEBTEDNESS 2POST FISCAL YEAR INDEBTEDNESS ONLY Form B FILED FOR THE 2011-12 TAX YEAR (Optional) To be used only if the agency wishes to include indebtedness entered into after June 30 Name of Redevelopment Agency West Covina Redevelopment Agency Name of Project Area Merged Project area For Indebtedness Entered into post June 30, 2011 as of September 30, 2011 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year �) ABX1 27 Ongoin Continuation Payment 8/23/11 23,800,000.00 OngoingN/A - 23,800,000.00 - 3) ABX1 27 Onctime Continuation Payment 8/23/11 4,680,000.00 6/30/2012 N/A - 4-680.000.00 4.680.000.00 K) L) iOT ALS OST FISCAL YEAR INDEBT EDNESS 46.00 $ 80 000 � 28,480,000.00 'urpose of Indebtedness: :A) Fifty percent of the ABX 127 ongoing continuation payment (C) ,13) Eighty percent of the ABX 1 27 onetime payment (1�) ,C) (I) ,D) M (E) (K) (F) (L) �r rr rr rw �r r �r rrr rr r� �r rr rr rr r rr� rr it r� =' STATEMENT OF INDEBTEDNESS Form A FILED FOR THE 2011-12 TAX YEAR Pagel of 3 Name of Redevelopment Agency West Covina Redevelopment Agency . Name of Project Area Merged Project area For Indebtedness Entered into as of June30, 2011 Debt Identification (A) 1999 Tax Allocation Bonds (B) 2002 Tax Allocation Bonds (C) 1996 CFD Refunding Bonds (D) 1988 Lease Revenue Refunding Bonds (E) DDA - The Lakes (F) SB 2557 Admin Cost Original Data Date 11/15/99 6/13/02 8/I/96 8/1/88 6/26/87 7/l/91 Principal 3,945,000 12,200,000 51,200,000 7,500,000 1,766,000 7,818,916 Term l l/I/29 9/l/25 9/I/23 8/1/18 8/2/97 7/l/39 Interest Rate Variable 5.10% 5.93% Variable N/A N/A Total Interest 7,340,000 8,125,790 53,169,056 9,383,657 - - Total Outstanding Debt Principal/Interest Due During Tax Yea 8,966,283 205,000 13,134,847 996,413 51,170,899 3,684,800 6,874,672 1,800,000 7 818 916 505,230 230,000 250000 (G) Owner Participation Agmit - CFD 6/26/89 25,425,000 6/30/19 N/A 7,912,852 ! 1,150,000 (H) City Note Payable - Administration 7/1/76 12,846,174 1/l/10 10.50% 22,514,525 19,789,504 1,483,600 (I) City Note Payable - CIP I(J) 7/1/76 1,788,767 1/l/10 10.50% 39,703 3,604,284 259,783 City Note Payable - Revolving 7/1/76 3,815,000 1/l/10 10.50% L�L8,497,261 8,318,522 556,616 Sub Total, o This Page is Pg Totals To s Forward 129,390,779 Fr t i All Other Pages s 912,021,947 47 0 9 11,543,644 543 44 and Grn d Totals s 1,041,412,726 20 5 86 086 v r Available Revenues cues From Calculation of Available Reentt es 1 3 6 2 0 (4,961,230) Net t• n Rentren e t t 1 3 4 1 4 0 6 5 97 Purpose of Indebtedness: (A) Project Improvements (F) Admin cost for tax increment collection services from County (B) Project Improvements (G) OPA Agreement (C) Project Improvements (11) Administrative Expenses - Due City (D) Parking Stricture (I) Project Improvements �(C)_:MA.Agreement::..;... .;: ::.::..::..::.:.:: r. , :, Ji C;i(: ioan fot I "e ;-::.r:r•c::cs :u::; c:.t; ':_,%Y,_at_>_; (J) City loan for project improvements and administration i L'i Name of Redevelopment Agency Name of Project Area STATEMENT OF INDEBTEDNESS ""FILED FOR THE 2011-12 TAX YEAR - West Covina I Merged Project area For Indebtedness Entered into as of June 30, 2011 Form A Page 2 of 3 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year A) Tax Passthrough Agreements 6/19/90 379,223,273 6/30/25 7.00% 17,704,416 316,816,174 3,800,000 13) 20% Housing Allocation 1/1/86 142,249,562 6/30/25 N/A 107,875,995 3,352,600 C) Ongoing Bond Expenses 8/1/88 4,696,705 11/1/29 N/A 2,971,705 75,000 D) BLD Reimbursement Agreement 6/29/06 18,474,225 6/29/40 N/A 17,114,425 461,000 E) City Line of Credit 6/29/06 18,474,225 6/29/40 N/A - 11,477,891 ; 200,000 F) Sales Tax Reimbursement 7/25/05 33,796,488 6/30/25 4.00% 5,799,600 32,332,541 1,006,336 C) County Deferral (#65636) 1990 10,085,562 TBD 7.00% To be determined 8,986,157 To be determined H) Nissan Sales Tax Guarantee 12/7/04 800,000 12/31/17 N/A - 800,000 1) Cooperation Agreement 2/15/11 296,470,000 7/1/45 N/A 296,470,000 - J). Golf Course Implementation Agnrt 2/15/11 45,000,000 7/1/45 N/A 45,000,000 - K) CFD CSS CFD 12/7/04 4,803,381 7/1/45 N/A 4,803,381 100,000 L) Non Personnel Operations rota I 8/23/ILL 37,989,688 7/1/45 N/A 37,989,688 1,866,397 rhis Pe 9 a 882,637,957 i '1 081 6 333 'urpose of Indebtedness: (A) Property tax sharing payments (13) Low & moderate income housing programs - legal requirement (C) Bond trustee, letter of credit, remarketing and other bond expenses (D) Reimburse City for project area's share of BLD bond debt service (E) Land Acquisition (F) Project Improvements (G) Reimburse LA County for deferred pass thrus Agreement # 65636 (H) Nissan sales tax guarantee (1) Cooperation agreement between the City and the Agency for various projects (J) Agency obligation for golf course development (K) Agency obligation to Coastal Sage Lei. Scrub CFD (L) Merged Share of agency non personnel costs for ongoing operations � r_.... �r- _ .. �...._.._�--.._ �•..._.�-....T � _ a�-�=�:._�� :_�s �._ �r■r-;_��r :.:-_.�--�--:-=ter-=��--=-r r �r r r rr r re r r r� r r� rr r r r r r STATEMENT OF INDEBTEDNESS Form A FILED FOR THE20.11-12 TAX YEAR Page 3 of 3 Name of Redevelopment Agency West Covina Redevelopment Agency Name of Project Area Merged Projeefarea For Indebtedness Entered into as of June 30, 2011 Original Data Intere! Debt Identification Date Principal Term Rate Costs 8/23/11 29,383,990.00 7/1/45 N/A 1 ULM fhis Pe 9 a 'urpose of Indebtedness: ;A) Merged share of agnecy personnel costs for ongoing operations r0) I ,C) ,D) (g) (F) Current Total Total Principal/Interest Interest Outstanding Debt Due During Tax Year 29,383,990.00 682,311.00 $ 29,383,990.00 1 $ 682.311.00 kc a RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Page 1!of 3 Pages Name of Agency West Covina Redevelopinent Agency Name of Project Area Merged Project area Tax Year 2011-12 Reconciliation Dates: From .Iniv 9 gnin Tn _I,@— in on4-i A g C D E F Debt Identification: Outstanding Debt All Beginning Indebtedness Adjustments Amounts Indebtedness, Paid Against from: Remaining Balance (A+B-C-D-E) SOI, page and line: Brief Description Increases (Attach Explanation) Decreases (Attach Explanation) Prior Yr Current Yr Tax Increment Other Funds 'g 1 Pg 1 -ine A Line A 1999 Tax Allocation Bonds 9,102,866 - 136,583 - 8,966,283 Pg 1 Pg 1 Line B Line B 2002 Tax Allocation Bonds 14,121,260 - - 986,413 - 13,134,847 Pg 1 Pg 1 Line C Line C 1996 CFD Refimding Bonds 54,852,649 - Pg 1 Pg 1 - - 3,681,750 51,17Q899 Line D Line D 1988 Lease Revenue Refunding Bonds 7,296,522 - Pg 1 Pg 1 - - 421,850 6,874,672 Line E Line E DDA - The Lakes 219,552 1,811,362 - 230,914 - 1,800,000 Pg New Pg 1 Line Line F SB 2557 Admin Cost - 8,078,941 - 260,025 - 7,818,916 Pg 1 Pg 1 Line G Line G Owner Participation Agent - CFD 8,802,298 - - 889,446 - 7,912,852 Pg 1 Pg 1 Line H Line H City Note Payable - Administration 21,293,023 - - 1,503,519 - 19,789,504 TOTAL - THIS PAGE 115,688,170 9,890,303 4,006,900 4,103,600 1117,467,973 TOTALS FORWARD 519,571,771 418,200,923 489,587 13,338.354 - 923,944,753 GRAND TOTALS 635,259,941 428,091,226 489,587 17,345,254 4,103,600 L,041,412,726 NOTE: Column A must equal the previous year Statement of Indebtedness Outstanding Debt. Column F must equal this year's SOI Outstanding Debt column. Use the page and line number that the indebtedness is listed on in each year as appropriate, and a brief description. Ignore any indebtedness fully repaid in the previous year, as it had a zero ending balance. All new indebtedness entered into since the previous SOI is to be listed below the previous indebtedness. Enter "new" in the "Prior Yr" page and line column for each new indebtedness. Rev. 5/2/94 r r M M r M r 1=1 r Im M r" r M= M M M M M M r M M M M M i M M M r RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Page 2 of 3 Pages Name of Agency West Covina Redevelopment Agency Name of Project Area Merged Project area rax Year 2011-12 Reconciliation Dates- Frnm -till" T -9nin T„ Debt Identification: Brief A Outstanding Debt All Beginning B Adjustments Increases C Decreases D E Amounts Paid Against Indebtedness, from: F Remaining balance SOI, page and line: Prior 'g Yr Current Yr Description p Indebtedness (Attach Explanation) (Attach Explanation) Tax Increment Other Funds 1 Pg 1 (A+B-C-D-E) -ine I Line I City Note Payable - C1P 3,857,729 - - 253,445 3,604,284 'g 1 Pg 1 -ine J Line J City Note Payable - Revolving 8,861,558 - - 543,036 - 8,318,522 'g 2 Pg 2 -ine A Line A Tax Passthrough Agreements 320,511,418 - - 3,695,244 - 316,816,174 'g 2 Pg 2 -ine B Line B 20% Housing Allocation 111,345,046 - - 3,469,051 107,875,995 'g New Pg 2 -ine Line C Ongoing Bond Expenses - 3,080,000 - 108,295 i�g 2 Pg 2 - 2,971,705 -ine D Line D BLD Reimbursement Agreement 17,575 425 - 461,000 " 17,114,425 'g 2 Pg 2 -ine E Line E City Line of Credit 11,686 347 208,456 - 11,477,891 'g 2 Pg 2 -ine F Line F Sales Tax Reimbursement 33,548,686 - �g 2 Pg 2 - 1,216,145 " 32,332,541 -ine G Line G County Deferral (#65636) 10,085,562 673,864 458,942 1,314,327 8,986,157 �g New Pg 2 -ine Line H Nissan Sales Tax Guarantee - 800,000 - - 800,000 =g New Pg 2 -ine Line I Cooperation Agreement - 296,470,000 - 296,470,000 Pg 2 Pg Line C Line City Loan Proj & Admin 10/11 2,100,000 - 30,645 2,069,355 TOTAL - THIS PAGE 519,571,771 301,023,864 489,587 13,338,354 806,767,694 NOTE: Column A must equal the previous year Statement of Indebtedness Outstanding Debt. Column F must equal this year's SOI Outstanding Debt Column. r C C Name of Agency Name of Project Area fax Year 2011-12 RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS West Covina Redevelopment Agency Merged Project area Reconciliation Dates: From Julv 1. 2010 Tn .Dino �n gnii Page 3 of 3 Pages A B C D E F Debt Identification: Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) SO], page and line: Brief Description Increases (Attach Explanation) Decreases (Attach Explanation) Prior Yr 'g New Current Yr Pg 2 Tax Increment Other Funds _ine )g New Line J Pg 1 Golf Course Implementation A mt - 45,000,000 - - - 45,000,000.00 _ine Line K 1CFD CSS CFD 4,803,381 - - - 4,803,381.00 'g New Pg 1 _ine Line L Non Personnel Operations 37,989,688 - _ - 37,989,688.00 3g New Pg 3 _ine Line A Employee Costs - 29,383,990 _ _ _ 29,383,990.00 Jg Pg _ine Line Pg Pg _ine Line 3g Pg _ine Line 3g Pg _ine Line :)g Pg _ine Line 'g Pg _ine Line 3g Pg -ine Line :pg Pg _ine Line rOTAL - THIS PAGE 117,177,059.00 117,177,059.00 NOTE: Column A must equal the previous year Statement of Indebtedness Outstanding Debt. Column F must equal this year's SOI Outstanding Debt Column.. Reconciliation Statement - Description of Adjustments Agency: West Covina Redevelopment Agency Project Area: Merged Project area Reconciliation Sheet Description of Adjustment page and line: Amount Pg 1 Line E Increase reflects estimate of Lake's DDA expenses for remaining term $ 1,811,362 Pg 1 Line F Estimate of administrative fees to L.A. County ursuant to SB 2557 for life of project $ 8,078,941 Pg 2 Line E Bond trustee, letter of credit, remarketing and other expenses for remaining life $ 3,080,000 Pg 2 Line I $673,864 inrease for beginning of 7% interest in first year $ 673,864 Pg 2 Line I Less $458,942 reduction to adjust balance as agreed between agency and county $ (458,942) Pg 2 Line J Add Nissan Sales Tax Guarantee to schedule $ 800,000 Pg 3 Line K Add cooperation agreement to schedule $ 296,470,000 Pg 2 --- Line L Decrease for interest savings due to early payoff of operating loan $ (30,645) Pg 3 Line A Add Golf Course Implementation Agmt to schedule $ 45,000,000 Pg 3 Line B Add CFD CSS CFD $ 4,803,381 Pg 3 Line C Add Non Personnel Operations $ 37,989,689 Pg 3 Line D Add Employee costs $ ,,1.. 29,383,990 Pg Line t Pg ) Line Pg i Line Pg Line -- Pg Line Pg Line Pg .- Line Pg - Line Pg Line Pg - Line Grand Total $ 427,601,637. . 101 CALCULATION OF AVAILABLE REVENUES , AGENCY NAME West Covina Redevelopment Agency PROJECT AREA Merged Project area TAX YEAR 2011-12 RECONCILIATION DATES: JULY 1, 2010 TO JUNE 30, 2011 1. Beginning Balance, Available Revenues 3,811,195 (See Instructions) Adjustments made after previous SOI filed. 1,092,779 2. Tax Increment Received - Gross 17,345,254 All Tax Increment Revenues, to including any Tax Increment passed through to other local taxing agencies 3. All other Available Revenues Received 57,256 (See Instructions) 4. Revenues from any other source, included in Column E of the Reconciliation Statement, but not included in (1 - 3) above 4,103,600 5. Sum of Lines 1 through 4 $ 26,410,083 6. Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) $ 21,448,854 7. Available Revenues, End of Year (5 - 6) $ 4,961,230 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS NOTES Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set -aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at year end. Item 4. above: This represents any payments from any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous SOI included a Disposition Development Agreement (DDA) which was fully satisfied with these bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the 'other" column (Col E), but with funds that were neither Tax Increment, nor "Available Revenues" as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues". Rev (5/2/94) 0to]N M M M M M M M M M r r M M M M M M M M STATEMENT OF INDEBTEDNESS -CONSOLIDATED Cover Page FILED FOR THE 2011-2012 TAX YEAR Name of Redevelopment Agency West Covina Redevelopment Agency Name of Project Area City -Wide Project Area Current Balances Carried Forward From: Total Principal/Interest Line Outstanding Debt Due During Tax Year Fiscal Period - Totals (From Form A, Page 1 Totals) (1) $ 271,878,387 $ 1,817,459 (Optional) Post Fiscal Period - Totals (From Form B Totals) (2) S. 24,970,000 $ 1,170,000 Grand Totals (3) $ 296,848,387 $ 2,987,459 Available Revenues From Calculation of Available Revenues, Line 7 (4) ($ 4,222,565) Net Requirement (5) $ 301,070,952 Consolidate on this form all of the data contained on Form A and B (including supplemental pages). Form A is to include all indebtedness entered into as of June 30 of the Fiscal Year. Form B may be filed at the option of the agency, and is to include indebtedness entered into post June 30 of the Fiscal Year, pursuant to Health and Safety Code Section 33675(c)(2). This is optional for each agency and is not a requirement for filing the Statement of indebtedness. The Reconciliation Statement is to include indebtedness from Form A only. Certification of Chief Financial Officer: Pursuant to Section 336775 (b) of the Health and Safety Code, I hereby certify that the above is a true and accurate Statement of Indebtedness for the above named agency. Rev 7/6/2000 Thomas Bachman Assistant City Manager Name Title 0 N STATEMENT OF INDEBTEDNESS -='POST FISCAL YEAR INDEBTEDNESS ONLY Form B FILED FOR THE 2011-2012 TAX YEAR (Optional) To be used only if the agency wishes to include indebtedness entered into after June 30 Name of Redevelopment Agency West Covina Redevelopment Agency Name of Project Area City -Wide Project Area For Indebtedness Entered into post June 30, 2011 as of September 30, 2011 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year (A) ABXI 27.Ongoing Continuation Payment 08/23/11 23,800,000 Ongoing N/A - 23,800,000 - (13) ABXI 27 Onetime Continuation Payment 08/23/11 1,170,000 6/30/2012 N/A - 1,170,000 1,170,000 (C) (D) (E) (F) (G) (13) (I) 0) (h) (L) TOTALS L S CAL YEAR INDEBTEDNESS POST FISCAL 24,970,000 117000 0 Purpose of Indebtedness: (A) Citywide Share of the ABXI 27 ongoing continuation payment (G) (13) Citywide Share of the ABX l 27 onetime payment (►I) (C) (I) (D) 0) (E) (IQ (F) (W M M M M M M M M M r STATEMENT OF INDEBTEDNESS• Form A -- FILED FOR THE 2011-2012 TAX YEAR Page 1 of I Pages Name of Redevelopment Agency West Covina Redevelopment Agency Name of Project Area City -Wide Project Area For Indebtedness Entered into as of J«ne 30, 2011 Debt Identification (A) 20%Housing Allocation (B) Pass Through Agreements Original Data Total Principal/Interest Outstanding Debt Due During Tax Year Date 7/l/99 7/l/99 Principal 811,962 811,962 Term 6/30/21 6/30/21 Interest Rate - Total Interest - - 24,461,000 431,000 33,939,000 (C) BLD Debt Service 6/29/06 20,095,000 6/29/40 N/A - 431,000 17,252,000 (D) SB2557 Administrative Cost 7/l/91 1,572,854 7/l/45 - - 650,000 1,609,132 0 tr (E) SERAF 2010 Hsg Loan 6/15/09 6,529,308 6/30/15 - 40,000 6,529,308 - (F) SERAF 2011 Hsg Loan 5110110 1,344,269 6/30/16 - - - 1,344,269 (G) Cooperation Agreement 2/15/11 119,370,000 7/l/45 119,370,000 (H) Non personnel Operations 8/23/11 37,989,688 7/l/45 _ 37,989,688 93,833 (I) Em loyee Costs 8/23/11 29,383,990 1 7/l/45 - - 29,383,990 171,626 271,878,387 1 1,817,459 271,878,387 1,817,459 4,222,565 276,100,952 (F) 2011 SERAF loan from housing find (G) Citywide share of cooperation Agreement (1-1) Citywide Share of agency non personnel costs for ongoing operations (1) Citywide share of agnecy personnel costs for ongoing operations O 0) RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Name of Agency West Covina Redevelopment Agency Name of Project Area City -Wide Project Area Tax Year 2011-2012 Reconciliation Dates: From July 1, 2010 To June 30, 2011 Page 1 of 2 Pages A B C D E F Debt Identification: Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) SOI, page and line: Brief Description Increases (Attach Explanation) Decreases (Attach Explanation) Prior Yr Current Yr Tax Increment Other Funds Pg 1 Pg 1 1 Line A Line: A 20% Housing Allocation 583,283 24,317,101 - 439,384 - 24,461,000 Pg 1 Pg 1 Line B Line B Pass Through Agreements 583,283 33,795,101 - 439,384 - 33,939,000 Pg 1 Pg Line C Line City Loan Proj & Admin 10/11 525,000 - 7,661 517,339 - Pg 1 Pg Line D Line Financing Agreement - City 1,014,472 - 390,582 623,890 - - Pg New Pg 1 Line Line D SB2557 Administrative Cost - 1,645,410 - 36,278 - 1,609,132 Pg 1 Pg 1 Line E Line C BLD Debt Service 17,902,000 - - 650,000 - 17,252,000 Pg 1 Pg 1 Line F Line E SERAF 2010 Hsg Loan 6,529,308 - - - _ 6,529,308 Pg New Pg .1 Line Line F SERAF 2011 Hsg Loan - 1,344,269 - - _ 1,344,269 TOTAL -THIS PAGE 27,137,346 61,101,881 398,243 2,706,275 - 85,134,709 TOTALS FORWARD 1,342,977 186,744,970 - - 1,344,269. 186,743,678 GRAND TOTALS 28,480,323 247,846,851 398,243 2,706,275 1,344,269 271,878,387 NOTE: Column A must equal the previous year Statement of Indebtedness Outstanding Debt. Column F must equal this year's SOI Outstanding Debt column. Use the page and line number that the indebtedness is listed on in each year as appropriate, and a brief description. Ignore any indebtedness fully repaid in the previous year, as it had a zero ending balance. All new indebtedness entered into since the previous SO[ is to be listed below the previous indebtedness. Enter "new" in the "Prior Yr" page and line column for each new indebtedness. Rev. 5/2/94 r = = M M = 1=1 r M N O v RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Page 2 of 2 Pages Name of Agency West Covina Redevelopment Agency Name of Project Area City -Wide Project Area Tax Year 2011-2012 Reconciliation Dates: From Julv 1. 2010 To June 30. 2011 A B C O E F Debt Identification: Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) S01, page and line: Brief Description Increases (Attach Explanation) Decreases (Attach Explanation) Prior Yr Current Yr Tax Increment Other Funds Pg 1 Line G Pg Line SERAF 2011 County Payment 1,342,977 1,292 - 1,344,269 Pg New Line Pg 1 Line G Cooperation Agreement - 119,370,000 - - 119,370,000 Pg New Line Pg 1 Line H Non personnel Operations - 37,989,688 - - 37,989,688 Pg New Line Pg 1 Line I Employee Costs - 29,383,990 - - - 29,383,990 Pg Line Pg' Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pgi Line Pg Line Pg Line TOTAL -THIS PAGE $ 1,342,977.00 $ 186,744,970.00 $ 1,344,269.00 $ 186,743,678.00 NOTE: Column A must equal the previous year Statement of Indebtedness Outstanding Debt. Column F must equal this year's SOI Outstanding Debt Column. Reconciliation Statement - Description of Adjustments Agency: West Covina Redevelopment Agency , Project Area: City -Wide Project Area Reconciliation Sheet Description of Adjustment page and line: Amount Pg I Line A Adjust 20% housing allocation to estimate for remaining life of project area $ 24,317,101 Pg 1 Line B Adjust pass throughs to estiamte for remaining life of project area $ 33,795,101 Pg 1 Line C Admin loan repaid early reduced for interest savings $ (7,661 Pg 1 Line D City line of credit repaid early reduced for interest savings $ (390,582, Pg 1 Line E Adjust debt for administrative fees to County to estimated lifetime total $ 1,645,410 Pg 1 Line H New Loan from housing fiend to pay 2011 SERAF $ 1,344,269 Pg 1 Passthru calculations are still in process, payment number is an Line A estimate which will require adjusnnents to actual next year. NA Pg 2 - Line A Adjust 2011 SERAF payment to County to actual $ 1,292 Pg 2 Line B Adjust to add Citywide share of cooperation agreement $ 119,370,000 Pg 2 1 Line C Adjust to show Citywide share of non -personnel operating costs over life of project $ 37,989,688 Pg 2 Line D Adjust to show Citywide share of employee costs over life of project $ 29,383,990.00 Pg l i Line — Pg Line Pg Line Pg Line - Pg Line Pg Line - Pg _ Line " Pg- Line Pg Line Pg Line Pg - Line IGrand Total $ 247,448,60.$. 1111: CALCULATION OF AVAILABLE REVENUES 1 1 u 1 1 11 1 AGENCY NAME West Covina Redevelopment Agency PROJECT AREA City -Wide Project Area TAX YEAR 2011-2012 RECONCILIATION DATES: JULY 1, 2010 TO JUNE 30, 2011 1. Beginning Balance, Available Revenues (See Instructions) Adjustments made after previous SOI filed. 2. Tax Increment Received - Gross All Tax Increment Revenues, to including any Tax Increment passed through to other local taxing agencies 3. All other Available Revenues Received (See Instructions) 4. Revenues from any other source, included in Column E of the Reconciliation Statement, but not included in (1 - 3) above 5. Sum of Lines 1 through 4 6. Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 7. Available Revenues, End of Year (5 - 6) FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS NOTES $ 704.861 $ (6,532,916) $ 2,106,275 $ 2,205,490 $ 1,344,269 $ (172,021) $ 4,050,544 $ (4,222,565) Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set -aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at year end. Item 4. above: This represents any payments from any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous S01 included a Disposition Development Agreement (DDA) which was fully satisfied with these bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the "other" column (Col E), but with funds that were neither Tax Increment, nor "Available Revenues" as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues". Rev (5/2/94) 109 Page Intentionally Left Blank 11 L' 1 1 n 1 �7 11' 110 i� 1 1 PART III Housing and Displacement Activities ' For the year ended June 30, 2011 (Health &Safety Code 330801(c)) r-� California Redevelopment Agencies -Fiscal Year 201012011 Project Area Contributions to Low and Moderate Income Housing Funds Sch A ProjectArea Summary Report WEST COVINA Amount Taxlncr. Percent Total ProjectA►ea 100%of Tax 20%Set Aside Taxlncrement Amount Suspended Depositedto of Tax Repayment Other Depositedto Increment Requirement Allocated Exempted and/or Deferred Hsng Fund Incr Dep Deferrals Income Housing WEST COVINA CITYWIDE $2,196,921 $439,384 $439,384 $0 $0 $439,384 20.00% $0 $0 $439,384 WESTCOVINA $17,345,255 $3,469,051 $3,469,051 $0 $0 $3,469,051 20% $0 $918,998 $4,388,049 REDEVELOPMENT PROJECT AREA Agency Totals: $19,542,176 $3,908,435 $3,908,435 $0 $0 $3,908,435 20.00% $0 $918,998 $4,827,433 Note: Print this report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape) Page 1 of 1 12115111 California Redevelopment Agencies- Fiscal Year 20102011 ProjectArea Contributions to Low andModerate Income Housing Fund SchA Project Area Financial Information Agency WEST COVINA Address 1444 WEST GARVEYA VENUE WEST COVINA CA 91790 ProjectArea WEST COVINA CITYWIDE Type: Inside ProjectArea Status: Active Plan Adoption: 1999 Plan Expiration Year: 2030 Amount Gross Tax Calculated Amount Amount Suspended Total % Cumulative Increment Deposit Allocated Exempted and/or Deferred Deposited Def. $2,196,921 $439,384 $439,384 $0 $0 $439,384 20.00% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $439,384 ProjectArea WEST COVINA REDEVELOPMENT PROJECT AREA Type: Inside ProjectArea Status: Active Plan Adoption: 1971 Plan Expiration Year. 2031 Amount Gross Tax Calculated Amount Amount Suspended Total % Cumulative Increment Deposit Allocated Exempted and/or Deferred Deposited Def. $17,345,255 $3,469,051 $3,469,051 $0 $0 $3,469,051 20% $0 Repayment $0 Category Interest Income $67,586 Loan Repayments $516,991 Other Revenue1 $84,202 Other Revenue2 $20 Sale of Real Estate $250,199 TotalAdditional Revenue $918,998 Total Housing Fund Deposits for Project Area $4,388,049 Agency Totals For All Project Areas: Amount Gross Tax Calculated Amount Amount Suspended Total / Cumulative Increment Deposit Allocated Exempted and/or Deferred Def. Deposited $19,542,176 $3,908,435.2 $3,908,435 $0 $0 $3,908,435 20% $0 Page 1 of 2 12115111 112 California Redevelopment Agencies- Fiscal Year 201012011 ProjectArea Contributions to Low and Moderate Income Housing Fund SchA Project Area Financial Information Total Additional Revenue from Project Areas: $918,998 Total Deferral Repayments: $0 Total Deposit to Housing Fund from Project Areas: $4,827,433 Page 2 of 2 12115111 113 California Redevelopment Agencies - Fiscal Year 201012011 Sch A/B Project Area Program Information WEST COVINA Page 1 of 1 12115111 114 California Redevelopment Agencies - Fiscal Year 201012011 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 FundAssets brances Balance Designated NotDsgntd $9,742,600 $4,827,433 $0 $6,858,932 $7,711,101 $0 Expense: 201012011 Debt Service Housing Planning and Total Construction Administration Costs $1,286,572 $3,910,462 $1,661,898 $6,858,932 - $7,711,101 $28,764 $7,682,337 $0 $7,682,337 *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 12115111 California Redevelopment Agencies - Fiscal Year 201012011 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail WEST COVINA Beginning Balance $9,742,600 Adjustment to Beginning Balance $0 Adjusted Beginning Balance $9,742,600 Total Tax Increment From PAW $3,908,435 Total Receipts from PA(s) $4,827,433 Other Revenues not reported on Schedule A $0 Sum of Beginning Balance and Revenues $14,570,033 . Expenditure Item Subitem Amount Remark Debt Service Debt Principal Payments Revenue Bonds & Certificates of $560,000 Participation Interest Expense $726,572 Subtotal of Debt Service $1,286,572 Housing Construction $3,910,462 Subtotal of Housing Construction $3,910,462 Planning and Administration Costs Administration Costs Professional Services Subtotal of Planning and Administration Costs Total Expenditures Other Housing Fund Assets Category SERAF Total Receivable $1,479,350 $182,548 $1,661,898 $6,858,932 Net Resources Available $7,711,101 Indebtedness For Setasides Deferred $0 Total Other Housing Fund Assets Page 1 of 3 Total Fund Equity Amount Remark $0 $0 $7,711,101 12/15/11 116 California Redevelopment Agencies - Fiscal Year 201012011 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail WEST COVINA 200612007 $3351063 2007/2008 $3717107 sum of 4 Previous Years' Tax Prior Year Ending Excess Surplus for 2008/2009 $3888830 Increment for 2010/2011 Unencumbered Balance 201012011 200912010 $3912857 $14869857 $11,598,496 $0 Sum of Current and 3 Previous Years' Tax Increments $15,427,229 Adjusted Balance $7,682,337 Excess Surplus for next year $0 Net Resources Available $7,711,101 Unencumbered Designated $0 Unencumbered Undesignated $7,682,337 Total Encumbrances $28,764 Unencumbered Balance $7,682,337 Unencumbered Balance Adjusted for Debt Proceeds $0 Unencumbered Balance Adjusted for Land Sales $0 Excess Surplus Expenditure Plan No Excess Surplus Plan Adoption Date Site Improvement Activities Benefiting Households Income Level Low Very Low Moderate :] Total Land Held for Future Development Site Name Num Of Zonin4 Purchase Estimated Acres Date Start Date Remark Use of the Housing Fund to Assist Mortgagors Income Adjustment Factors I Requirements Completed Home �$ Hope $ Non Housing Redevelopment Funds Usage Resource Needs Page 2 of 3 12115111 117 California Redevelopment Agencies - Fiscal Year 20102011 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail WEST COVINA LMIHF Deposits/Withdrawls Document Document Custodian Custodian Copy Name Date Name Phone Source General Ledger 30-JUN-11 Finance Director (626) 939-8438 City Hall Achievements Description Page 3 of 3 12115111 118 California Redevelopment Agencies - Fiscal Year 201012011 Sch D General Project Information WEST COVINA Project Area Name: OUTSIDE PROJECT AREA Project Name: HOME IMPROVEMENT LOAN UNITINVENTORY ---------------------------------------------- Very Low Low Moderate Above Mod Became Total Other Provided with LMIHF Ineli ible Unit Non -Substantial Rehabilitation Non -Agency Owner Non -Elderly 0 25 0 0 0 25 Non -Agency Owner Elderly 0 25 0 0 0 25 Unit Total 0 50 0 0 0 50 ROJECTFUNDINGSOURCE--------------------------- ------------------ Funding Source Amount Redevelopment Funds $486,563 Project Name: HSG PRESERVATION PRG UNITINVENTORY---------------------------- -- -------- Very Low Low Moderate Above Mod Became Total Other Provided with LMIHF Ineligible Unit Non -Substantial Rehabilitation Non -Agency Owner Non -Elderly 0 0 1 0 0 1 Unit Total 0 0 1 0 0 1 ROJECTFUNDINGSOURCE------------------ --- ---------- Funding Source Amount Redevelopment Funds $10,050 Page 1 of 2 12115111 119 California Redevelopment Agencies - Fiscal Year 2010/2011 Sch D General Project Information WEST COVINA Project Area Name: WEST COVINA REDEVELOPMENT PROJECT AREA Project Name: Home Improvement Loan UNITINVENTORY ---------------------------------------------- Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Non -Substantial Rehabilitation Non -Agency Owner Elderly 0 1 0 0 0 1 Unit Total 0 1 0 0 0 1 ROJECTFUNDINGSOURCE--------------------------------- Fundin_i Source Amount Redevelopment Funds $10,050 Page 2 of 2 12115111 120 SCHEDULE HCD E CALCULATION OF INCREASE /N AGENCY'S /NCLUS/ONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only- Actual Obligation is based on Implementation Plan) Report Year: 2010/2011 Agency: WEST COVINA rNOTE: 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 InclusionaryObligation Accrued this Year for Units (line 3 x30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very -Low Income Units (line 4 x50%) 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 InclusionaryObligation 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 x40%) 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 1 CaliforniaRede%elopmentAgencies- FiscalYear 20IGM11 SchedtdeE(11/01) 'Totals maybe impacted byrounding Page 1 of 1 12/15/2011 1 1 Page Intentionally Left Blank 1 I �� I I I 122 PART IV Progress Report and Evaluation Fiscal Year 2010-2011 (Health & Safety Code 33080.1(d)) I F CDC ANNUAL REPORT Accomplishments during the fiscal year July 1, 2010 — June 30, 2011 REDEVELOPMENT • Citrus Grove Provided entitlement assistance to Jersey Mike's Subs (1,285 sq. ft.) at the Citrus Grove Center. • 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. • AAA Pad Negotiated an ENA with Ashdon Development, Inc., to develop the approximately 2.1-acre site for commercial retail use. • 880 Pad Marketed 880 pad for future redevelopment of the site. ' • Golf Course Marketed and solicited development interest for golf course use and/or alternative usage on the golf course site at West Covina Sportsplex. ' • Civic Center Negotiated an ENA with CGM to develop a 4-story, 50,000 sq. ft. office complex. ECONOMIC DEVELOPMENT • Westfield Expansion Assisted with improvements and renovations to the Westfield 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 II of the development included the construction of a new 45,000 sq. ft. building for Best Buy and additional 30,000 sq. ft. of retail and restaurant building areas. Phase III consist of the addition of 32,000-35,000 sq. ft. of additional new retail space with new mini -anchor Nordstroms Rack and tenant Gold's Gym. The following are achievements at the Westfield Mall. o Provided entitlement assistance to H&M and opening of an approximately 20,000 sq. ft. store. Project is now completed. o Provided entitlement assistance to Gold's Gym and opening of an approximately 34,088 sq. ft facility. Project is now completed. 1 123 o. Provided entitlement assistance to Chronic Taco and opening of a 600 sq. ft. restaurant. Project is now completed. o Provided entitlement assistance to Foreign Exchange and opening of a 7,153 sq. ft. store. Project is now complete. o Provided entitlement assistance to Fanzz and opening of a 1,900 sq. ft. store. Project now complete. o Provided entitlement assistance to Love Diva and opening of a 830 sq. ft. store. Project is now complete. o Provided entitlement assistance to T-Mobile and opening of a 2,499 sq. ft. store. Project. is now complete. o Provided entitlement assistance to Lenscrafters and opening of a 1,490 sq. ft. store. Project is now complete. o Provided entitlement assistance for the relocation of Express and opening of a 8,000 sq. ft. store. Project is now complete. o Provided entitlement assistance to Closet and opening of a 7,657 sq. ft. store. Project is now complete. o Provided entitlement assistance to Nordstrom Rack (36,500 sq. ft.). o Provided entitlement assistance to Lee's Sandwiches (2,861 sq. ft.). o Provided entitlement assistance to Lazy Dog Cafe (8,652 sq. ft.). o Provided entitlement assistance to Gatten. Sushi (2,169 sq. ft.). o Provided entitlement assistance to Love D (1,119 sq. ft.). o Provided entitlement assistance to LA Nails (1,000 sq. ft.). o Provided entitlement assistance to Skin Food (830 sq. ft.). o Provided entitlement assistance to Tacos Mexico (767 sq. ft.). o Provided entitlement assistance to All In Ink (1,007 sq. ft.). o Provided entitlement assistance to Champs (5,006 sq. ft.). o Provided entitlement assistance to the new relocation of Men's Warehouse (6,000 sq. ft.) 124 • Marriott Fairfield Inn & Suites Assisted Brighton Management through the entitlement process for the development of a 5- story, 110-room Marriott Fairfield Inn & Suites, approximately 57,028 sq. ft. located at 3211 E. Garvey Avenue South. Project is now completed. • Sunset/Francisquito Center Provided marketing and entitlement assistance at the Sunset/Francisquito Center. New tenants that have opened include Fashion Outlet (1,105 sq. ft.), Blue Hills Dental (3,049 sq. ft.), and BB Threading (928 sq: ft.). Provided entitlement assistance for Citiwear (6,500 sq. ft.). • McIntyre Square Assisted McIntyre Companies in marketing to solicit tenants and entitlement assistance for four phases of rehabilitation and new fagade improvements for the 6.37 acres McIntyre Square (former Country Club Center). Phase I (Shops A - 13,991 sq. ft.) will rehab the fayade, store front, roof and walkways of the former Trader Joe's building. Phase II (Shops B - 11,167 sq. ft.). Phase III (Shops C - 4,787 sq. ft., Shops D - 9,742 sq. ft. and Restaurant - 3,228 sq. ft.). Phase IV (Shops E - 12,340 sq. ft. and Shops F - 5,214 sq. ft.). Phase V (Shops G- 9,746 sq. ft., Shops H 4,784 sq. ft. and Shops 14,030 sq. ft.). Provided entitlement assistance to Country Club Animal Hospital (1,638 sq. ft.). 1 J 1 k 1 • Westfield Eastland Center Provided marketing and entitlement assistance to the Westfield Eastland Shopping Center in re -tenanting vacancies as a result of closures of Levitz, Circuit City, Mervyns, Hollywood Video, and the relocation of Babies R Us. o Provided assistance to Dick's Sporting Goods (46,364 sq. ft.) for interior remodeling. Project is now completed. o Provided entitlement assistance to The Habit Burger and opening of a 2,200 sq. ft. restaurant. Project is now completed. o Provided entitlement assistance to PetSmart and opening of a 17,812 sq. ft. store. Project is now complete. o Provided entitlement assistance to Styles For Less and opening of a 4,954 sq. ft. store. Project is now completed. o Provided entitlement assistance in the fagade improvement of Avenue Shoppes at the Eastland Shopping Center. Project is now complete. o Provided entitlement assistance to Pacific Fish Grill (2,200 sq. ft.). o Provided entitlement assistance to Dollar Tree (11,010 sq. ft.). o Provided entitlement assistance to Qdoba Mexican Grill (2,631 sq. ft.). ' 125 • QuailRidge Shopping Center Provided marketing and entitlement assistance to QuailRidge Shopping Center, located on Nogales Street. New tenants that have opened include Shaolin Temple (1,300 sq. ft.) and Vision.Center (2,468 sq. ft.). Provided entitlement assistance to Happy Art Studio (1,240 sq. ft.). • HK2 Supermarket Provided marketing and entitlement assistance to Golden Eda Properties in marketing vacancies within the 118,836 sq. ft. Hong Kong Plaza shopping center. o Provided entitlement assistance to Yum Cha Cafe and opening of a 1,303 sq. ft. restaurant. o Provided entitlement assistance to The Crawfish Spot (1,975 sq. ft.). o Provided entitlement assistance to Tao Martial Arts Studio (2,500 sq. ft.). • South Hills Plaza Provided marketing and entitlement assistance to South Hills Plaza, located on 1414 S Azusa Avenue. • Marketplace II (former DSWBest Buy Center) Provided marketing and entitlement assistance to re -tenant the former Best Buy, DSW, Barnes & Noble and Starbucks at Marketplace II. Provided entitlement assistance to Toys R Us/Babies R Us (66,000 sq. ft.) and Michael's (30,000 sq. ft.). • Grand Opening Events Facilitated and coordinated ground breaking and grand opening ceremonies for new businesses. o Westfield West Covina Nordstrom Rack and Gold's Gym Groundbreaking Ceremony. o Marriott Fairfield Inn & Suites Grand Opening Ceremony. • Available Property List Maintained and distributed the available property listing to potential tenants and businesses. • Expanding Tenants List Maintained and distributed the expanding tenant list to commercial property owners. • Trade Shows and Conferences Attended ICSC conferences in September (San Diego) and May (Las Vegas) to solicit tenant and development interest. 126 1. 1 • GWC Event Services Renewed the Agreement for City Sponsored Event Services with the Greater West Covina ' (GWC) Business Association. Under the Agreement, GWC is to coordinate and operate at no cost to the City, various events to promote the City and surrounding businesses at the Lakes Entertainment Center. 1 • Auto Plaza BID ' Coordinated the annual meeting of the Auto Plaza Business Improvement District (BID), and implemented their budgetary planning and assessment needs for the BID's ongoing operations for the fiscal"year 2011-2012. • CDC Website Redesigned the CDC portion of the City's website to provide information to businesses and residents._ • Discover Newsletter ' Prepared articles for the City's Discover newsletter. Articles provided included topics which have marketed West Covina shopping centers, highlighted new and existing businesses within the community, encouraged residents to shop locally, and marketed the City's'housing ' programs. • Outreach and Marketing Mailed over 2,000 letters. to West Covina businesses providing information to City's Economic Development resources and services. HOUSING • ROP House Entered into a purchase contract for the sale of the 1420 South Willow Avenue property. CDC staff directly marketed, negotiated, and executed the sale of the 1,575 sq. ft. single- family home, constructed in August 2009. Closed escrow. Project is now complete. • West Covina Senior Villas II ' Negotiated and entered into an Owner Participation Agreement (OPA) with West Covina Senior Villas II, LP for the development of a 65-unit affordable senior housing project on the 1.07 acre Azusa/Workman site. Monitored the OPA and provided entitlement assistance to ' the developer. • Home Improvement Program ' Since fiscal year 2010-2011, the CDC has processed 50 loans under the Home Improvement Loan Program (HILP). A total of 1,683 loans have been issued since HILP inception in 1970. • Housing Preservation Program 127 Since fiscal year 2010-2011, the CDC has processed 1 loan under the Housing Preservation Program (HPP). A total of 347 loans have been issued since HPP inception in 2000. Prepared and mailed packets to Housing Preservation Program (HPP), loan recipients' who have yet to repay the loan within the 10 year interest free period a monthly payment booklet and payment schedule, to be returned as part of the mortgage payment. • Subordination Requests Prepared requested subordination, reconveyances, and beneficiary statements to loan receipts of both the Housing Preservation Program (HPP) and Home Loan Improvement Program (HILP). • Housing Compliance Monitor compliance requirements of the Affordable Housing Agreements for the restriction of affordable housing units for Mauna Loa Apartments, Heritage Park Apartments, Senior Villas I Apartments, The Promenade Apartments, and Lark Ellen Village. • Assembly Bill 987 Prepared affordable housing database of units that were built or substantially rehabilitated using CDC Housing Set -Aside funds, in compliance with Assembly Bill 987. ADMINISTRATION • Prepared annual redevelopment reporting requirements (Statement of Indebtedness, State Controller's Report) in compliance with California Redevelopment Law. • Monitored and analyzed (for compliance) state bills and statutes pertaining to redevelopment. e Prepared affordable housing database of units that were built or substantially rehabilitated . using CDC Housing Set -Aside funds, in compliance with Assembly Bill 987. • Assisted Finance Department in the proper administration of the Community Facilities District (CFD) agreements. 128 PART V Loans in Default 1 For the year ended June 30, 2011 (Health &Safety Code 33080.1(e)) u �I 11 Community Development Commission of the City of West Covina Loans in Default Fiscal Year 2010-2011 1 1 Loans in Default - $50,000 or more: None ' Loans not in compliance with the terms of the loan approved by the Community Development Commission - $50,000 or more: In May 1997, the Commission loaned $4,720,000 to Lark Ellen Towers, a multi -family housing project in the City of West Covina. The terms of the loan are more fully described on page 24 of this annual report in Note 3 of the CDC audited financial statements. During the year, a dispute arose between the CDC and the Owner regarding the method of calculation of the rent that could be charged to the tenants of the Affordable Housing Units. On June 30, 2011, the Regulatory Agreement was amended to more clearly state the methodology used in calculating rents for the Project and to extend the Affordability Period set forth in the Regulatory Agreement ' by ten (10) years until February 18, 2047. The dispute and non-compliance issue was resolved as of June 30, 2011. 1 129 I� 1 Page Intentionally Left Blank 130 PART VI ' Commission -Owned Property For the year ended June 30, 2011 � (Health &Safety Code 33080.1(t)) w w■� w► w w w w w w w w wr w w w w �w ■w w West Covina Community Development Commission Commission -Owned Property As of June 30, 2011 # of Parking Site Notes Address Zonin Current Use Land Buildings Spaces West Covina Redevelopment Project Area Capital Projects Fund: BKK PROJECT: AAA Pad 2210 S. Azusa Ave. OS Vacant PARKING: Westfield Shoppingtown (parking structure) 1200 W. West Covina Pkwy. WC 9' R-C Parking Structure Westfield Shoppingtown (surface parking) N W The Lakes Low/Moderate Income Housing Fund: None (3) *no site address* R-C Surface Parking (4) 1000 E. Garvey Ave. WC 91790 R-C Parking Structures 2.1 acres None None 308,405 sq. ft. n/a 2,121 7.08 acres 704,633 sq. ft. n/a 1,416 16.18 acres 175,982 sq. ft. n/a 476 (structure parking) 4.04 acres 219 (surface parking) 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. (5) - No properties were acquired during the fiscal year ended June 30, 2011. R F L_1 L 1 1 Page Intentionally Left Blank 132 PART VII Time Limits For the year ended June 30, 2011 (Health & Safety Code 33080.1(g)) ' Community Development Commission of the City of West Covina P ty a Time Limits ' As of June 30, 2011 11 11 1 E Fiscal Year of Expiration For the commencement For the of eminent establishment domain of loans, To repay proceedings to advances and For the indebtedness acquire indebtedness effectiveness with the property to finance the of the proceeds of Redevelopment Adoption within the redevelopment redevelopment property Plan Date project area pro'ect plan taxes West Covina Redevelopment Project Area: Central Business District Original 12/20/71 2005 12/20/14 12/20/14 12/20/24 CBD Amendment (2) 07/07/80 2005 7/7/23 7/7/23 07/07/33 CBD Amendment (3) 12/20/84 2005 12/20/27 12/20/27 12/20/37 Eastland Original 07/14/75 2005 07/14/18 07/14/18 07/14/28 Eastland Amendment (1) 07/09/90 2005 12/21/29 12/21/29 12/21/39 West Covina Merger 12/21 /93 2005 12/21/29 12/21/29 12/21 /3 9 Citywide Redevelopment 06/15/99 N/A 06/15/30 06/15/30 06/15/45 Project Area 1 133 Page Intentionally Left Blank I 1 134 1 7 L Ll PART VIII Other Information For the year ended June 30, 2011 I (Health &Safety Code 33080.1(h)) F F-i LI ' Community Development Commission of the City of West Covina Other Information For the fiscal year ended .Tune 30, 2011 F 1 u 1 n 1 Enter the amount of square footage completed this year (FY 10/11) by building type and segregated by new or rehabilitated construction. Square Footage Completed New Construction Rehabilitated Commercial Buildings 57,028 165,700 Industrial Buildings Public Buildings Other Buildings Total Square Footage 57,028 165,700 Number of Jobs Created from the activities of the CDC 816 Number of Jobs Lost from the activities of the CDC 0 Types Completed Legend: A=Utilities; B=Recreation; C=Landscaping; D=Sewer/Storm E=Streets/Roads; F=Bus/Transit A, C, D 135 CDC ANNUAL REPORT Goals and Objectives For Fiscal Year 2011-2012 REDEVELOPMENT • West Covina Heights o Secure the property and the owner's consent to use and develop this property into a City dog park consisting of a smaller 25,000 sq. ft. park and approximately 2 acres for the larger total. • 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 Solicit for development interest on CDC owned parcel. o Negotiate and execute an ENA. • 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. • Citrus Grove Center o Continue to provide marketing assistance to attract retail tenants to the site. • Civic Center Site o Negotiate a purchase agreement with CGM for the development of an office building on Civic Center. o Negotiated an amendment to the County Parking Agreement with the City to facilitate the office development. • Former Wickes Site o Continue discussion with the Charles Co. for the conceptual redevelopment of the former Wickes property. Proposal involves a mixed use concept with retail on ground level and approximately 400 residential units on upper level. ECONOMIC DEVELOPMENT • Entitlement Assistance o Continue to market and provide development and 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, Quailridge Shopping Center, Sunset/Francisquito 136 Shopping Center, Corona Grill Restaurant, 501 S. Vincent, and West Covina Parkway Plaza. 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. • McIntyre Square (former Country Club Center) o Continue to assist developer and tenant through entitlement process. o Continue to provide marketing assistance to attract retail tenants to the site. • 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 provide entitlement assistance for new tenants including Pacific Fish Grill (2,200 sq. ft.), PetSmart (17,812 sq. ft.). o Continue to assist and facilitate in the developer entitlement process. o Continue to provide marketing assistance to attract retail tenants to the site. • Quail Ridge Shopping Center 0 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. 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. • Marketplace II (former DSWBest 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. o Continue to provide entitlement assistance to Toys R Us/Babies R Us in opening a 66,500 sq. ft. store. Project is expected to be completed in July 2011. o Continue to provide entitlement assistance to Michael's in opening a new 30,000 sq. ft. store. 1 137 • 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. • Corona Grill Restaurant o Continue to assist and facilitate in the property owner entitlement process. • Provide assistance to property owners in filling vacancies of retail centers. • Continue to aggressively pursue sit-down restaurants to West Covina. • Continue to manage the Auto Plaza Business Improvement District. • Attend ICSC conferences in San Diego and Las Vegas. • Coordinate ground breaking and grand opening ceremonies. • Continue to assist various developments through the entitlement process. • Continue updating and maintaining available property listing database. • Continue updating and maintaining database of expanding retail tenants. • Continuously monitor, update, and administer CDC pages on the City website. • Continue preparing articles for the City's Discover newsletter. HOUSING • West Covina Senior Villas II o Administer the Owner Participation Agreement (OPA) and provide entitlement assistance. • Housing Compliance o Monitor compliance requirements of the Affordable Housing Agreements for the restriction of affordable housing units for Mauna Loa Apartments, Heritage Park Apartments, Senior Villas I Apartments, The Promenade Apartments, and Lark Ellen Village. • Home Improvement Program o Review and approve applicants and provide funding for qualified homeowners. o Administer existing loans. o Continue marketing the program to maximize its utilization. n fl 11 138 1 1 1 11 1 • Housing Preservation Program o Review and approve applicants and provide funding for qualified homeowners. o Administer existing loans. o Continue marketing the program to maximize its utilization. • Affordable Housing o Continue to pursue the potential development of affordable housing projects. o Pursue acquisition of land for future affordable housing developments. ADMINISTRATION • Prepare annual redevelopment reporting requirements (Statement of Indebtedness, State Controller's Report) in compliance with California Redevelopment Law. • Continue to monitor and analyze state bill and statutes pertaining to redevelopment. • Continue to monitor the Governor Brown's proposal in eliminating Redevelopment and reallocating local Redevelopment funds to pay for State expenditures. ' 139 Page Intentionally Left Blank 140