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2011/01/25 City Council Resolution 2011-10RESOLUTION NO. 2011 -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK RECEIVING THE ANNUAL REDEVELOPMENT REPO_ RT FOR FISCAL YEAR ENDING JUNE. 30, 2010 WHEREAS, Section 33080.1 of Community Redevelopment Law of the State of California ( "CRL ") requires that each redevelopment agency within the State of California present an annual report to its legislative body within six months of the end of the agency's fiscal year (December 31 "); and WHEREAS, the Community Development Commission of the City of Rohnert Park ( "CDC ") has prepared the Annual Redevelopment Report for Fiscal Year Ending June 30, 2010 ( "Annual Report") and has submitted the Annual Report to the City Council as required by CRL; and WHEREAS, the State Controller's Report, Independent Auditor's Report and Financial Statement and the California Housing and Community Development Report are components of the CDC's Annual Report; and WHEREAS, the CDC is required to submit the State Controller's Report and Independent Auditor's Report and Financial Statement for Fiscal Year Ending June 30th to the California State Controller's Office by December 31St; and WHEREAS, the CDC is required to submit the Housing and Community Development Report to. the California Department of Housing and Community Development for the same fiscal period by December 31St; and WHEREAS, the CDC has submitted these reports to the appropriate state agencies as required by CRL. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby receive the Annual Redevelopment Report for Fiscal Year ending June 30, 2010. DULY AND REGULARLY ADOPTED this 25th day of January, 2011. ATTEST: City CITY OF ROHNERT PARK 61F RNJ AHANOTU: AYE CALLINAN: AYE MACKENZIE: AYE STAFFORD: AYE BELFORTE: AYE AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0) JH- S:05 -d STATE CONTROLLER'S REPORT. r �z .,.,. «„ •:F.,�' ..,�.:y. ,,s: w,,Qp, e:l�'t��yu, A ;c r_O��`Th °:C:�,t >,:RoM ert P r{( ., .::a. u...,.�.... ,._ -. - ,..- ,„,....w..r,._..., :i i. °..:.. -• ..... 1.-...,., v� •Me�..�a:.�iz��Jnnti.��vuTE4cld �d'idvrw..':'w"c ^vi�.M.'r�" �'.`�',a'>�^1Yn . +t � A�S • �, � . ��: �f:,. ; t.� �1!: L�F�rr�u:- iGi+ita��•.'�- .{?wa1'ati:.t.., v: ,dlu:+.,.a.l.Enlw.�,.a :x4, ..L µ.J.aa,.: ": . �., ....,. - i,�A,..': 5.., :x�w,v'h1,ir1'•tn,FJ:• «�27';',SJ� ; +Hti •n:t G ..icnrs.+ ly.z„ t?t! M•� ,�r°Y �' "7'iti,�.v ,..fi....�.1�"..4 r"z'f:Yr'`r+1�. X': e o �" ..,...� _ .. ��...•>«. ,,...,..,,_�.�_,... �,r� ci A a � General Information Fiscal Year 2010 Members of the Governing Body Last Name First Name Middle Phone Initial Last Name First Name Middle. Initial Chairperson Stafford —� _� Pam Secretary - Member Mackenzie— Jake Report Prepared By Member Belforte co Muranishi & Co. LLP Member Joesph Call! an First Member Breeze Breeze [ -� Member '— ^ - - - -- _ -� Arnie City Member _ San Francisco State CA Member. Zip Code 94927 -1489 94104- Member . r�• L_ I Member —.— - - l - - -- - ---__ - -- (C�__ L-1 Mailing Address Street 1 P.O. Box 1489 Street 2 r T City Rohnert Park -� State CA ] Zip. 94927 -1489 . Phone (707) 585 - 6722 Is Address Changed? General Information Page 1 12/9/2010 Last Name First Name Middle Phone Initial Executive Director Schwarz Daniel _� (707) 588 -2223 Fiscal Officer I:ipitz —� Sandra _` I'• (707) 585 -6718 Secretary - Schwarz Daniel ] = (707) 588 -2223 J Report Prepared By Independent Auditor Firm Name co Muranishi & Co. LLP Last jOrme _� Millias First Cathy Chris Middle Initial -� — Street P.O. Box 1489 465 California Si., Ste 700 City Rohnert Park _ San Francisco State CA CA Zip Code 94927 -1489 94104- Phone' (707) 585 -6717 (415) 434 -3744 General Information Page 1 12/9/2010 Audit Information Fiscal Year Was the Report Prepared from Audited Financial C Yes Data, and Did You Submit a Copy of the Audit? Indicate Financial Audit Opinion Qualified 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 I Was a Compliance Audit Performed'in Accordance with Yes Health and Safety Code Section 33080,1 and the State - -- Controller's Guidelines for Compliance Audits, and Did . You Submit a Copy of the Audit? Indicate Compliance Audit Opinion Unqualified _ _� If Compllance Audit is not yet Completed, What is the _ (� - Expected Completion Date? `-- - -� If compliance opinion includes exceptions, state.the areas of non - compliance, and describe the agency's efforts to correct. Audit Information Page 1 12/9/2010 Project Area Report Fiscal Year .2010 Project Area Name Please Provide a Brief Description of the Activities for this Project Area . During the Reporting Year, Activity Report of Rohnert Park Redevelopment Agency sct Area Forwarded from Prior Year ? > rt ' Enter Code for Type of Project Area Report P P = Standard Project Area Report A = Administrative Fund L = Low and Moderate Income Housing Fund M = Mortgage Revenue. Bond Program 0 = Other Miscellaneous Funds or Programs S = Proposed (Survey) Project Area Does the Plan Include Tax IncrQment Provisions? . r' -- -Yes Date Project Area was Established (MM- DD -YY) Most Recent Date Project Area was Amended Did this Amendment Add New Territory? Most Recent Date ProjectArea was Merged Will this Project Area be Carried Forward to Next Year? Yes Established Time Limlt :. Repayment of Indebtedness (Year. Only) 2037 Effectiveness of Plan (Year Only) 2027 New Indebtedness (Year Only) C -- — 2007 Size of Project Area in Acres 1 711 Percentage of Land Vacant at the Inception of the Project Area 16.0 Health and Safety Code Section 33320.1 (zx.x %) Percentage of Land Developed at the Inception of.the Project Area 84.0 Health and Safety Code Section 33320.1 (xx.x %) Objectives of the Project Area as Set Forth in the Project Area Plan -ICP (Enter the Appropriate Code(s) in Sequence as Shown) R = Residential I = industrial C = Commercial P = Public 0 = Other Project Area Report Page 1 12/9/2010 Y: - 3`�: ' �t��....k � . ni " °;`.:; "'':i`c• 5 d: ''�t'rii n+'iri, ":6.��'�!��,� i. r I `v � T={'� � a", ;..) !. ...rte._. ..•, ....J.. .SL:�...a.nl_.�y_..0 �+lYwA•_IVldZ (� :� "'i . .`:.{i,.i.rS�f:'.... ..l +,i,L:'..,r• ' i . .: eb'.n., ... : 7� "P ,. A::C`i : a'+S: �r �'p��1��_� �• �ti x��i'�u �Qf��;;c yr � �.��;y�� t, �.:,.� �It ice; � jri•�M �0. SY�1'• :I %nJ� >+ii 'Pt.'��;: Vii.{.; ;: ��i45`[ � '� ,�, rd,. Lra� � �CM� 1�151f,..Y, iE »Iigfi',:•. k 17', �Jk +,�"Y�'�t��•�,�1�� ; 7 ''Y�': �.'� �sPy' 7 '.�' . 7 {9f�` 4• ii'4'` 6 �u rV'i1� �f��y' � 1 ,��l�•y N ��i..�"t,�. Y��SMY J•�'1`,Y,n,.. .f vc.�ftCfWM...ar�-`51']law.ly � ..laufi�,.,.�o"V } 'Y2 :�:4 • t��i.•'..,l.�T y� �r Y'�•e'�:: 4f ;,%�7y, i of l +I`..,i Assessed Valuatioh Data Fiscal:Year 2010 Project Area Name - City of Rohnert Park Redevelopment Agency Project Area Frozen Base Assessed Valuation 489,927,000 Increment Assessed Valuation 1,30.0,487,969 Total Assessed Valuation 1,790,414,96 . Assessed Valuation Data 12/9/2010 School Districts Community College District Special Districts Total Paid to Taxing Agencies Net Amount to Agency Gross Tax Increment Generated Pass- Through / School District Assistance i 0 -- --- -� . (City of Rohnert Park Redevelopment Agency Project Area -� Tax Increment Pass Through Detail Other Payments H& S Code. H& S Code H& S Code Total H& S Code H& S Code Section 33401 Section 33676 Section 33607 Section 33445 Section 33445.5. 3,925,997 1,520 517 46 -- $5,4,514rn��{. Exur - -- $0 ". 'Ysrl4'K°'i°a --- - - - - -- — - - - - - -- - - -- $o --- - - - - -- -1. so ,�•.•x7, -,,vy �5�.t7• „P.•R'�A r, ,k., Ceti r`s 'i'E'n s �. -- --• - -� �— — �. —.r.— $O 5F $ f� :Pi �IFL� �Q�'t� � �,�, i�,�,�x'3'. ,i a'4.�ir,; $3,925,997 $1,520,517 $0 $5,446514 $0 $0 :F'�. '� +F�ff'n';r.�7`!l;F�K��: ^F` �`?„' �j! ?�:'” li' S4;: �Yy- c^ ii�vF- Lg�. a?, ft}"'�'+��;�.+�,tll'.C, +K {l•:. '�fJi� !_ � �� ;.'y...,�'• .d�t""� ..,,.ra.�..��`� ^�.., R,.� $7,558.357 ri. �� : % "r�,if�ivik:• "�'d' {,'•�i':'! r�s, �..,"?s,l:,•b� vi.�l:sin=fSO7,.;�!tii oyn�.".7•?� -_ - -- _ «-' >` ' �� f "� �y- ?" 13.004,871) Pass - Through / School District Assistance Page 1 12/9/2010 Summary of the Statement of Indebtedness • Prgject'Area Fiscal Year 2010 Project Area Name WEE x �. Tax Allocation Bond Debt 139;144;764• Revenue Bonds _ 7,.071,673 Other Long Term Debt 2,940,000. City /County Debt . Low and Moderate Income Housing Fund L _� Other 4,668,385 Total $153,824,822 Available Revenues Net Tax Increment Requirements $153,824,822 Summary of the Statement of Indebtedness - Project Area Page 1 12/9/2010 _...... ....,., .,.....,y.....,.�,..,- ,.,,..,.. ...• a.. aRe. �d ?` c��ly F;:�ia,' -'S,�Wa r.%;F.2�'S > % :7.x +•�.a v'i7�i+;•,. n =��: -i� .d•av:.:_, ;ro:�,ar:C .gyp.. Agency Long -Term Debt Fiscal Year 2010_- __1 Project Area Name CitY_of Rohnert Park Redevelopment Agencv Project Area Forward from Prior Yearu °r Bond Type City /County Debt Year of Authorization l Principal Amount Authorized C -- -, 5 830,000. Principal Amount Issued C• - - ---� 5 830,000 Purpose of Issue Construction — Maturity Date,Beginning Year ( 1987 Maturity Date Ending Year 2024 Principal Amount Unmatured Beginning of Fiscal Year $2,234,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year C 76,000 . Principal.Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $2,158,000 Principal Amount In Default Interest In Default — ..___.._..__.__.._—.__ -- — _— ...—._ BondTypes 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 -Term Debt Page 1 12/9/2010 + . Y. i.. �i• �� i '.. '�, �, •' � . � M. U j' I�,a. � a ;i ;z• i ..S. MIN «. ; ; ;U1Q Y . „ ... ..f, �uS+�'`v ,.'.0 ". n•;duVS,n ;. �:v.{,�,.nFy :.r:w- .f Yi' <:w!+.nri 7 :H r s M�� .::...._,..:�:'�_.,.,:<'L::_ ,..�..,,.._. ...". x, RBC��N,< �O, I�, �.��f��?r�.aS,.�.a��:.�.��. � HQ`-a ��K`�.�- ��;s�.�,t s:3? n ,;,Y�r"':,�� ",�; '.'?• . �� "1C � 'Lth,..FYa�L..:._ s»._ h�. ,sinw.�..,•.t}e�..n.3+,...,.:.c r ,,..u..,. Agency Long -Term Debt Fiscal Year 2010 Project Area Name Cit of Roh.nert Park Redevelopment Aaencv 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 .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 Loans - -� 6,255,000 �6,255,0001 Refunded 1994 COPS .- 2004 2025 r $4,981,500 229,500 $4,752;000 L - � 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 -Term Debt Page ;2 12/9/2010 . .. .. ... ...... ... .4 .. .. :....: -., ..'.. 20, rn. .f.. ., ?.1iF`�t'u ♦':'�.,• .ii Tv ��v.�y r . _., ... .. • _ ...: , .. . . ,..:.._• ant ai.. =i c''s ". ?t: C•'.:'a r Coin uni:;yP�o �:R[yf,4rg= =;fn. ,a ,,Ye:�}rRarJc: s.:.., •.w_.�:�_...a a:.:.l.i;�4..rr:a.�, .i.e ?:.,lit 2x °. "Gd':,.e ""�", •i.. ,'r�•e;�, (� =Tc .esS:,c�� }: Rttin�. �' �'ST,1':�,,+��t:.'t6Pt:r4. vL::3::R.. .:+iA'Nl.ln ,Y'•'i+ > •y 'mm HIM .1111- �q•6.. 'A� :Sfiiiiv4,�lf:`tCra'��•1ni.ro `iflG...+i a:e,uuF.NV::3i: .:`•J•.d'J.:+f,u . .. ,; .; r...: •:. ,. : "t::.1" ,�:;,p.,L(•.•. a:9 . .. ^,i��1r. V;fl: ..h ;. y:ii:. .. ...... ., ...•........ ., h, ..... :•. .. ., Ly .,a°Li'+ e. L:. � � h.: kl.: rws 95' srr::..: >•. �. ti• . .... .... ...... �:'. ........... .. "„ _ r.... .; ^:.,'•• ,. ,:.r •. .:i�. i'. . !i', N. .7. t Kf�%yt'•k°:'f9 ';Ar „pb,;d° C . t. , r: ��;,..; li= ti;». g, 4;,. ltis.:. : «,.r:;y:�:'.r'.�..;:;:�s�,;�'r .,. � :x,':.::Rec(eueto ;_ fin, }�,A,= e < �� •.�•�� • „�,::••!.,%_., . ;��,� ; , - � .I.: y f �,. w.:..._.._ ..,.. ..�rc..... .....�...,......�•.�.... >� .p�t:.r,�.rc��.� ��.��.�:��ci�fS,Rrsactt�n•s R,G,�ort� � ...... ., 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. bate Ending Year 20110 J (City of Rohnert Park Cede: a ment Agency Protect Area Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principe.[ Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default 's Tax Allocation Bonds__ 1991 13,099,895 _ 13,099,895 Refund 88 Tabs. -- 2020 $1,504,950 _297,532 Accretion 172,092 L $1,035,326 ll II��J Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City /County Debt; US;S.tate; Loans; Lease Obligations; Notes; Deferred Pass - Throughs; Deferred Compensation; Other Agency Long-Term Debt Page 3 12/9/2010 N a —111=== ?MA ==X-14 WIM, =A' Agency Long -Term Debt Fiscal Year 1�201 Project Area Name EC[Wof R-ohnert Park .Redevelopment Agency Project Area Forward from .Prior Year Pond Type [Tax Allocation Bonds Year of Authorization . . ' Principal Amount Authorized –i�= 082,97:�]' Principal Amount Issued =6,082,973] Purpose of Issue Project Funding Maturity Date Beginning Year Maturity bate Ending Year 2036 Principal Arnount'Unmatured Beginning of Fiscal Year f—$14,244,776 Adjustment Made During Year F--T,123,197 Adjustment Explanation Accretion ,.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 014,987,973 Principal Amount In Default Interest In Default Bond Types. Allowed: Tax Allocation Bonds;. Revenue'Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;Sta.te;:Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation, Other Agency Long-Term Debt. Page 4 12/9/2010 ... .•..;. .... . .�:, � �'.;: ..... ::ice - : orn.m <rc Ctl.a'1t �•,.e k •�, , f �i � :.�� , , ..::.i,., ...o .,.... .. ti..fu..tu...'aw.,v: "tit .�C.n is r � ..Lry'�l .; �r.p: a �I .;r i%� •;r,...la�t.. � .1, " �u;,.... ;,•1 r:;.s t W y r�r "= ''�•.+ry.�l: ": s. /;s;'g,�k'r =' ';'!€?y::i}�`b+ni- xM1�:rr.. .x'dri;w.,� -,G ;�:wsr,•av ».,:::..�.•,.i `•13,;,: •.V,r.;.,, ,, .e•i. _.............r_..:.. _.. -..., ,,,,Redeveloprn` ante :9.1e>a,rl:i.lC.onxRe;pxq`aa,.� Agency Long -Term Debt Fiscal Year 5-10_ Project Area Name LCitY of Rohnert Park Redevelogment 9 - -Y A enc _Pro ect Area — _- 1-------- -._... - - -- .... - - - - -� 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 Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount D'efeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: (Tax�Alloocation Bonds 2001 Lam!_ 8,20.0,000.1. 8,200,00 Refund a portion of 1991 �— 2004 �— 2016 $6,800,000 65,000 C- - -7 (� $6,735,000 Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes;.Financing Authority Bonds; City /County Debt; US;State; Loans; Lease Obligations; Notes; Deferred Pass- Throughs; Deferred Compensation; Other Agency Long -Term Debt Page 5 9 12/9/2010 ... .. .... >. ...... - .. .. .: .... ::... ..: ... ... .fib -2'iit ";''u,:.•.aC.i� \;.:.....,: •y�. e.::p.:p;n ::�;. ,.,.t.�.rss• ,n;.v�;r;. .. .:..? �.. •r :'. o:': .. � ... t . .:,. .: .' r i �� .xc .I. gtfCA.F ALIT y�• ;, r, i o;':'� ....,....a...:.:y.,.. _.:et;i. ., '•T.,.. \. +.i�. V a �. �( {y� S �. .rK: ._q.v. J.�. r;',. i, Y_.' �... �.. ir.:,' J, Ct;..,:., l;: ibnkf' i«.. ,:SL7�;tNraiK}L'Gw«.��211?.:'.w i .5 iYS..a •'tiL'.. „7.k u;l• �[714�. 'k. :�� t,..: J� .L,y,� °";Xi.'.'- .rv..e .•!.. ' �,..: Y. �u ,unw,:V.KCVnu�.�.Ma�"m.�'>��x' •rv. ,. ��Y' o' w�l�' o�iS`'` 5. ��is�ac�kY. I�: hSl' ti�~ �~., ��. �. j, rufx::.; vi2url�WCry ]ui1Gi ".i:.5'�•�;i'E:-'.�`� �! '�:F,::n .Ci•1�..� �:: X ✓,.TY.•'Y +:: :i.' x NF. '.y� - i'- .in 2 F"+ YrIY: (�{" . ::S"'• .gyp •.q' u:Fca.. .y. ..Gc. ��x : F :Y•'•., Pin .{:. -,,,:, s, • u , r. M a rt:.... eu >,.:. �.:��- �s.�.1?��:..�,,...�.��;� , _ � i, �:. i}•��,- -� j +�.,va3 �t o. •R ,,�r7 •t- �,. •.3 �,.. � . ::,r•:�• _ - •::ufe�:....s.4.«�. �r�t1�..+�sS�ti� + -aUFhS y�us:��uz�&nk.:�'1^wQtir,�t� fux.' 4.•'�' �•tt�uu#' �aAw'::ril.'•:';�;;,v:::� �v::i:$.u+r:2ytiWin: ?:;L Agency Long -Term Debt Fiscal Year Project Area Name Forward from Prior Year 2010__ Cltv of Rohnert Park' Redevelopment Aaenc y Pro ect Area _ 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 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 Unmature.d End of Fiscal Year Principal Amount In Default Interest in Default Ta_x Allocation• Bonds I - 2007 26,760,000 �- 26,760;000 rousing C - 2007 77--16-371 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 -Term Debt Page. 6 12/9/2010 30,000. $16,360,000 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 -Term Debt Page. 6 12/9/2010 ... .. .. .. .: .... ... .- . , .. .•. ... c -j C.;: "7r`.' �S. ,,�. w �.. :ggSK'� •:e:q'a.:' -t; y� Q1 .. ............ .. ....... .:.......... ... .. ..a .. , .: - ' i• 4, m. 1. Da u t w... tnr 0 J. r. ..,c!a...,w:�,�d4uCf2w�.5mfs�" •-�`� .y��' • p„ ��,., �'• ��:' Siii✓.' �S�wni:C C41tvi6H�' a�' iLr�i�iwJ •:ii:::,Cti+:•,'uc...3i"t ._�...,,.,;,1..+ :... .:...::' :::i -r.:: i.P.::':•5 (- [X ,yf::. F t 7 ;1XASS'.t}I': .•ag tit? Ty `'AP.F.'rtr;'Y7^""adF.a�,'e'}�. iii'I'dre.n ti. `rt•F?q�[. x� •,r:6�_�•.'�''irp,.:rS .. .. �,. ._ ,.. �...... ,:._.w..r�:�...:Re�deuelo�rnent Agency Long-Term Debt Fiscal Year 0010 Project Area Name Ed t�o.f Rohnert Park Redevelopment AgencyProject 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 Adjustment' Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year. Prineipal•Amo.unt Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year .Principal Amount In Default Interest In Default Tax Allocation Bonds 2007 34,680 000 �— 347680,000 [Rehabilitation. `�� L_— O07 r 2037 $33,180,000 .r 12,785,000 $20,395,000 BondTypes 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 Compensafion; Other Agency Long -Term Debt Page 7 12/9/2010 ,..�, �:.. 'iY :�:K;^' ':.% y }.ur : y1:kR'.4 "•,,- (q+rl,~�%l�� "pr'.:. ti•`v+ ' <7 �,'•:;; (:i�C ?.. t,':Tr. .:k:,: m eP :a',. - fit,„ -�, •'k .r ?C' ..t ,.,:: >' ,.i4' 'e u . dC:�' t ,. �p hay.: ��=-`�� ''•• <., u:;# asJ. �rf. �F71:{ ti.`. �' Ww`.'.','.,:, tt, ix^.. Lrti�•. ��iiili' dtii�w( avu4Y. w. 34, WfA�. 31�t1�tY�w�wJ SA�MAifll6u :��. °�h:a"k"sa'.6��'ffiiui,�+i'7c ,'�.i�.�i,1tR:M..+,:r+iE t, .1. "}.�:. .Q' '�YJ F '7 � 'J'A:J:,LY'r.,•r,•.•�,:, -•, »7�r.} -,,, �`:�, � . Wei:•'' ".' F ur..Yy9_, , r :.i".� -'?.� `a`Si''iS:�kt 5VU4 ,. nIF'KC,).. � r �`'. ..¢' .. '�` -'S k• u'�. 'k• 4 :�'n' rai :•`v .,t;: �J r4...v�n. .�,. •�x.,- - rx. S .�� of ,.J,dW �+. •. *, ,� „i4; a,r:, M i 1, J �k•s ,:A.A. �� . as ''� h e <� ,+eia f <J': -;'•i uy. �`,” Y�,��wkY,�,wa':r`c.aa- '.•av, rti.4C3ia =•:'t� .r;uv±� �'w••i l4`'': Statement of Income and Expenditures - Revenues' Fiscal Year ;2010 .......... . .. ....:.........................t _ Project Area Name City of Rohnert Park Redevelopment. Agency Project _ Area ______ Low/Moderate Special Capital Project Debt Service Incom.e Housing Revenue /Other Funds Funds Funds Funds Total Tax Increment Gross L 13,004,$71 ,?' 4'J `, $13,004,871 (Include All Apportlonments) - -- Special Supplemental Subvention $0 Property Assessments r 181,408 Sales and Use Tax Transient Occupancy Tax 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 Statement.of Income -and Expenditures - Revenues Page 1 12/9/2010 Statement of Income and Expenditures'•. Expenditures Fiscal Year Project Area Name (City of Rohnert Park Redeveloament Aaenc�Project Area Capital Project Debt Service Low /Moderate Special Funds Funds Income Housing Revenue /Other Total 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 Cost Disposal Costs Loss on Disposition of.Land Held for Resale I- — 1,375,943 �- — _- - - -- �- -- .— 697,82_ -- - -._.. $2,073,768 = ----- —I- _ 12,015 _ _ $27 095 L - -- 63,455 - ----- ` --L�— —�_ — -- : —= - -- _ , $63,455 C _ — .Z. - ---- -- �- _ —_—�— - -- --- $o L__.._ �T - - -- _ - _-- 1------- 7- - - - - -- $0 28 546 -- $30,060 $0 C— _- 1,051,100 $2,040,6261 C_ - -- !_----- -- --�_ -_— $0 f - -- _- - - - - =� — ---- -L— --- __ —�— -.- - =- $0 Statement of Income and Expenditures - Expenditures Page 1 12/9/2010 Statement of Income and Expenditures.. Expenditures Fiscal Year [2010_ ,Project Area Name (City -of Rohnert Park Redevelopment Agency Proiect Area Capital Project Debt Service Low /Moderate Special Funds Funds Income Housing Revenue /Other Total Decline in Value of Land Held for Resal Rehabilitation Costs Rehabilitation Grants Interest Expense Fixed Asset Acquisitions Subsidies to Low and Moderate Income: Housing Debt Issuance Costs Other Expenditures Including Pass - Through Payments) 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 $0-. $22,939 _201,060 2,991,051 L- - $3,192,111 391,112 -- _ $5515 12 __ -- --- - -r - -- _ --� - -- -_ _ -�- -- = -- $0. _ - 9,570,985 1,564,428 - -- - - -t - - _- $11,140,413 ..___.- r 13 432 - ._- L._. -._.- $13432,092 rL-_- I- — — -r =- ---=------- - - - - -- $0 .76,000 -- - -- I - - - - -- $76,000 -_- 229;500 $229,500 $12,612,576 $17,987,571 $2,119,024 $0 $32,719,171 $1,726,286 ($17,942,65$)($1,29 3,725) $0 ($17,510,097) Statement of Income and Expenditures - Expenditures Page 2 12/9/2010 "U lit Deueloplrnen# Agr�cy #fNTh� CityfO4'f,�ohnr, Redevelopm$nt;Ageyn ties, ihartcia�rTlansa`,etlnns,ae ort ,..... _ .. Statement of Income and Expenditures.- Other Financing Sources Fiscal Year 2010^ Project Area Name Lit of Rohnert Park Redevelo merit Agency Pro "ect Area Capital Project Debt Service Low /Moderate Special Funds Funds Income Housing Revenue /Other Total Proceeds of Long -Term Debt — Proceeds of Refunding Bonds so Payment to Refunded Bond Escrow Agent $p Advances from City /County — - -- -- -_ .5_ —. - �_ - - -_ —_ —_� $0 Sale of Fixed Assets _ - -_ - -- _^- - -� __ — _ -L— —_ _ —$0 Miscellaneous Financing Sources (Uses) - Operating Transfers In l - - -T� 17,961,616 —' '$17,961,616 Tax Increment Transfers in , —__ 2,329_705 —� $2,329,705 Operating Transfers Out C- 17,039,124 -�— _ 922,492 - -- — - — $17,961,616 Tax Increment Transfers Out �— $2,329,705 _ _2,329,705 (To the Low and Moderate Income Housing Fund) -- Total Other Financing Sources (Uses) ($19,368,829) $17,961,616 $1,407;213 — $.0 $0 Statement of Income and Expenditures - Other Financing Source Page 1 12/9/2010 :. .. ..' I� •';k is M." n „ty owl T.it `a,`'f.: (� as� 4,54 '1',' :. .. ... ... ,.. . , �. ^..Cyfst .. ,. ...._, .. .. � ....a-, �5 Sa. 7"•” r.+"urL :;psi';:.;.':'V.�:'�, lii',:i::,.4 . .:....,. .... ...... .:, +wars. ` t. .. .. rp R i• . 'tJ'A hY��/1 ■yyT Y�.. ,�$'G•Ii1�Q�W'i� ..ten 5.4114.1 '.Uq: �d a3 �. 'G 97 r ♦ ... f. ...iau�xiS'"Ai:Z':. ;4s' �i��nr.` �, L'' a....•... sutn:<, r�. veih:..: n�i,:. �7�' tY. Fw.: �,.' i' �:sYdti:..,...u..i.:.�t..3r.:., .w.2,�u,u...__ r...,.,� .,.xu,:...,w.. �. Statement of Income and Expenditures - Other Financing Sources Fiscal Year [2010 Project Area Name City of Rohnert Park Redevelopment A IencV Project Area _.. Capital Project Debt Service Low /Moderate Special Funds Funds Income Housing Revenue /Other Total Excess (Deficiency). of Revenues and ($17,642,543) i $18,958 $113,488 �— $0 . ' ($17,510,097) Other Financing Sources over Expenditures and Other Financing Uses Equity, Beginning of Period $37,892;700 $1,757,105 $21,578,750 $0 $61,228,555. Prior Period Adjustments $o Residual.Equity Transfers - -- — Equity, End of Period $20,260,157 $1,776;063 1 $21,692,238 $0 $43,718,458 Statement of Income and Expenditures - Other Financing Source Page 2 12/9/2010 Balance Sheet - Assets and Other Debits Low /Moderate Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue /Other . General Long- General Fixed Funds. Funds Funds Funds Term Debt Assets Total Assets and Other Debits Cash and Im rest Cash p �_. - - -- 1 -'_943,717 �— II —� --- - -- - 91,21 °_L_ ----� :IsG6s;5? =1tsidri''r« *° °;; rs,.s ',..:. c` ��`s E.n,.., $2,034,935 Cash with Fiscal Agent 9 - - - -t -- -- — -- 7,944 4,818 1,776,063 13,12918231,,. r� ,u� N`r, Y'. $22,850,704 • �r:,, Tax Increments Receivable i.. �.__'_— _.— _...._ —_ �__— y W,h, ti .,'!s' sl ., r', `�`,.4.,•_u..u:...•: - max..- $0 Accounts Receivable 5 549, 87 —__" __. - _ -- — - - -- _fear .,rr�•+:�. -- ; , rh;,:y;;s,7, <:<nsr�,..t„ {e s �� = $549,587 11 Accru ed Interest Receivable l ; — .— — - - -- 15,7- -- - - -' - --- — ,••�.Y4r�r. +v. - ; •ca�;. T. � $21,209 —_ _ �Y:;tb!:5s..1, •"-r _ ;t. �, ::`,.. Loans Receivable - -- 288,500 -- - -- 19 092186 — — ��,��', zx''�yn ch > , w} 4;,� • ; t $9,380,686 s way Contracts Receivable - Sr", " F r, rn t_ 4 Vl „yf Rf�..y� Lease Payments Receivable — — — 1,776,063 hpY ' r'jk' `''; 13 i.a”' $1,776,063 Unearned Finance Charge - - 64,647,236 �`;., ?:� + ' $64,647,236 Due from Capital Projects Fund _.�:_ - - -- - -�. —_— — - - - -[ -- - -� - - =— c �.� ws �sl fi ATM'" �' `' $0 Due from Debt Service Fund * ^!� 'R, < z, • , $0 Due from Low /Moderates -- Income Housing Fund Due from Special �.__... —.._ -� -- ^----- as�„�� ,I l' �5«... °..;.. aL $or. Revenue /Other Funds _._.�._ - -- - - - - - - - -- . ,L,; _ , Balance Sheet - Assets and Other Debits Page 1 12/9/2010 Fiscal Year 2010 Balance Sheet Assets and Other Debits Low /Moderate Special Capital Projects Debt Service Income Housing Revenue /Other General Long- General Fixed Funds. Funds Funds Funds Term Debt Assets Total Investments . — — . —. —__— - - -:� :,Ft„a;'=:: Other Assets 10;055,725 Equipment ` s 10 055 725 Investments: Land Held for 1,•5E1;. ;::iii�'{��' 'a' _- - ray. v �,.•x —. C_-- - - - -rs , -..__. _�i}� r -rr'..i °.a';li �—� ,.. :, $0 Resale -- _..-1— Service Fund Allowance for Decline c e l'n -- - - -- - f..?,..:.,,...;:k "' ar,�:wa.:ti,'�,�r:f5 °n, Fa.. '...„ _ T_ �` i'ka ?u:•`i` ?ss r ?). $0 Value of Land Held for Resale - -- '� - -- ,} w „! Fixed Assets Lan ,',.;.. ag,,:;; r• c:, z:, c:: ��, t.;!: .p(tG:+C::':wrrq::: <:;S2�,i,..M ` %,� n,J.. +,(t,y .. }. :.R7}u_ :�1im2+. "t�.. ..tl^... }. ?' 5,: . �: -,.. mt:..�:•::r.,.�,,:y:..,�. -' ;1'ls„ "ss„ n '•r,., rk.,r. ..,, >t3 - --- -• :..if^i{1:r.`%x:'f'.':,A'^ —_ -.— - --_ s,, ,,.. , - :.a.af; ..1:.r.>;s; ;; >r.,J;.., .. 41,087,607 $41,087,607 Structures,. and Improvements o''.. -- - -• — "�JW - - - -' - Equipment .1.• •,'Y„A:i:Y'�3'. ^.Y1� fryt '• ?`` t:;:s' �, `a�a.[[ ::n {r:�F•. :w'n'�.E:a ":i �„ a D.. ;t.. rl aY ,,.., 4i:':•': i;iv' "P +" fh �,.- n .3r r y i ••:x: - -. `'t•.�st;<.,ii;�4.3�:•. - -- -' ti i. .,,..., - ?;�;.,,br<, 5,264 $805,264 ' Amount Available In Debt ,. s,.. .;,_:s,:;-sf ..., n, ,.r�x�, �� - - -- h� �$0 Service Fund �_� , . , .spa – —" - - -" —'– --- .._.I.W c.,.�,.4 Amount to be Provided for M1 Payment of Long-Term Debt Total Assets and Other $20,787,825 $1776,063 '$22,328,958 $0 I $66,423,299 ! $41,892,871 $153,209,016 Debits (Must Equal Total Liabilities, Other Credits, and Egaities) . Balance Sheet - Assets and Other Debits Page 2 1219/201.0 ... ....... _. C Fiscal Year 2010 Liabilities and Other Credits Accounts Payable Interest Payable Tax Anticipation Notes Payable Loans Payable Other Liabilities . Due to Capital Projects Fund Due to Debt Service Fund Due to Low /Moderate Income Housing Fund Due to Special Revenue /Other, Funds Tax Allocation Bonds Payable Lease Revenue, Certificates of Participation Payable, Financing Authority Bonds All Other Long -Term Deb Total Liabilities and Other Credits . Balance Sheet • Liabilities and Other Credits Low /Moderate Special Capital Projects Debt Service Income Housing Revenue /Other General Long. General Fixed Funds_ _Funds Funds Funds Term Debt Assets Total 0 111- fi > 15 W 1 W ;•ii:'ic .apt`<'r(n•;e'?`A4i4:5`j� II -Sw h2 GV L''FA yt�i� xls , rGx 3 S t% M�) �:aoJ[M f cSr L b hr 59,513,299 WY31'— $59,51 x.299 -, �� r 4sji 3� �� aM1~ }r,�i.h'o�.�,.�'�,�{ "'f r.��"��r�r';�f"� >tdaln JJA�ST't 6 y.. ,M,. •� Balance Sheet - Liabilities and Other Credits. Page 1 12/9/2010 Balance Sheet - Liabilities and Other Credits Low /Moderate Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue /Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Equities . Investment In General I ;:•rrtk; t, :•o,r [:��s1".',—s - �.y�;r y..��,x�:.�..�.+�. t kk axex 3 rx,. a �y o r i k, ,: - -- v� ? 41,892,871 $41,892,871 Fixed Assets ------ ..`c , _ , . —.. -- - - -- - -- — Fund Balance Reserved —_ 18,000,543 - -T 21,692,238�f �._..— ._�-- '---- -- �-_.'_- -' -_— - -. - -_ - •;YfiSife. mjYk`1`,;,�,t��.t'�3 �liPfr \ w2 ?y !r 1 S Y'F $39,692,781 A.Jf qY.l. ?.1.15. 1 '� a ,� i3y. ... .. Fund Balance - - -_ —� -- 1,776;063 - �� - 2,249,614 ,i +y�T`'s�Y `s��,`,at ?k $4,025,677 Unreserved - Designated — — Fund Balance �- - _--- ------- - --_— . - - -_I_ _ - - _� — - - - - - -- a/ s.:b ?'; ks= ._ $Q. Unreserved- Undesignated _ - -- Equities --► $20,250,157: $1,776,063 s r mot; « :..Total $41,892,871 $85,611,329 ,. , . Total Liabilities, Other Credits, and Equities _ $20,787,825 $1,7761063 $22,328;958 $0 $66,423,299 $41,892,871 $153,209,016 .. y.:y,::'ti�. .; �r ai'> 'l.:Y.x C OM MU n......D: , �f it . ev [ty ,} :,y.. ,.r, .I. .� .. Olt 4- . h:::sr�•,f. ^rui:iru�.:ti:.,<:�> s':`.'i )Y, vox{ ji.) �y' rS�:. a' `�':..ti�4 "'�„`�':�9�j^`7`skAiS ;F . .i. P: .,.1nF.. 'YYi': 4 ' N'�::WY "t•Y. :, "�'i �; I (n �,�g�ncl�� F;irr��,ti[a� �'��'a�tto'r��.s�� ,wort .� • >z < � t :l. .- .. :. � .:.... .,..0 . _.r., , � �.t- .•v.i:.:., ar„ 41 r.< ..._.ata..f .r..xz:ouv -w Y�iin�T'�.id%' `idD�y �.k�„s''' ` x" x' u' r:.. ca.. NS�i':: �.,:. rusw�i J,f'`wr"..t55ir°� *.�^w`,'iS'' wF:tb��s:.,.rw T�.nM .., d....;.. , n,.., ...w.r ,,......,. Statement of Income and Expenditures - Summary, Combined Transfers In /Out Fiscal Year 2010 Operating Transfers In $17,961,616 Tax Increment Transfers in $2,329,705 r Operating Transfers Out $17,961,616 Tax Increment Transfers Out $2,329,705 Statement of Income and Expenditures - Summary, Page 1 12/9/2010 Combined Transfers In /Out AUDIT REPORT S COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK Independent Auditor's Reports, Management's Discussion and Analysis, Basic Financial Statements, and Statistical Information For the Fiscal Year Ended June-3 0, 2010 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Table of Contents Page(s) Independent Auditor's Report .................................................................................... ............................1 -2 Management's Discussion and Analysis (Required Supplementary Information) ............................3 -8 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets ............................................................................... ..............................9 Statement.of Activities ............................................................................. ............ .I.................. 10 Fund Financial Statements: Balance Sheet — Governmental Funds ............................:......................... ............................... 11 Reconciliation of the Governmental Funds Balance Sheet to the Government -wide Statement of Net Assets — Governmental Activities ............................. 12 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ........................... ............................... 13 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government -wide Statement of Activities — GovernmentalActivities ........................................... ........ ............. :...................................... 14 Notes to Basic Financial Statements ............................................................... .....:....................15 -28 Other Report and Information: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by GovernmentAuditing Standards ........................29 30 Schedule of Findings and Recommendations ........................................................... ............................... Statistical Information (Unaudited): Assessed Valuations and Incremental Valuations ...................................:....... ............................... 32 >+� i 1 DENSERG 1 ULLAKKO 1 MURANIS II December 14, 2010 Board of Directors of the Community Development Commission of the City of Rohnert Park, California 465 California Street Phone: (415) 434 -3744 Suite 700 Fax: (415) 788 -226• San Francisco, CA 94104 1 www.oimcpa.com INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental. activities and each major fund of the Community Development Commission of the City of Rohnert Park (Commission), a component unit of the City of Rohnert Park (City), California, as of and for the fiscal year ended June 30, 2010, which collectively comprise the Commission's basic financial statements as listed in the accompanying 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 Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we. plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Commission as of June 30, 2010, and the respective changes in financial position thereof for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2010, on our consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of law's, 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. The management's discussion and analysis, as listed in the accompanying table of contents, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have. applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we -did not audit the information and express no opinion on it. The statistical information identified in the accompanying 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 has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. LLP Pa COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 As management of the Community Development Commission of the City of Rohnert Park (Commission), a component unit of the City of Rohnert Park (City), California, we offer readers of the Commission's- basic financial statements this narrative .overview and analysis. of the financial activities of the Commission for the fiscal year ended June 30, 2010. Readers are encouraged to consider the following information in conjunction with the Commission's basic financial statements. FINANCIAL. HIGHLIGHTS The assets of the Commission exceeded its liabilities by $6,659,678, at the government -wide level. Of this amount, $688,576 is restricted for debt service, $915,85' ) is restricted for community development projects, and $9,543,217 is restricted. for housing projects. Generally, net assets may serve over time as a useful indicator of a government's financial position. The Commission's investment in capital assets, net of related debt, was $4,421,797 and its unrestricted net assets had a deficit of $8,909,765 at June 30, 2010. This condition of deficit is expected for an agency established to borrow and expend funds for the purpose of economic development, with the borrowed funds to. be repaid with the revenue generated by the increased economic activity. • The Commission's governmental funds reported ending fund balances of $43,718,458, a decrease of $17,510,097, as compared to the prior year, due mainly to the expenditures on large capital projects. OVERVIEW OF THE FINANCIAL STATEMENTS. The Commission's basic financial statements are comprised of three components: 1) government -wide financial- statements, 2) fund financial statements, and 3) notes to basic financial statements. . Government -wide financial_ statements. The government -wide financial statements are. designed to provide readers with a broad overview of the Commission's finances, in a manner similar to a private - sector business. The statement of net assets presents information on all of the Commission's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Commission is improving or declining. The statement of activities presents information showing how the Commission's net assets changed during the_ most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government -wide financial statements report on the function of the Commission that is principally supported by incremental property tax revenues. The Commission's functions are to revitalize blighted and economically disadvantaged sections of the City and to provide affordable housing assistance. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Commission, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The governmental funds are used to account for essentially the same function report ed as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows ofspendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information maybe useful in evaluating a government's near -term. financing requirements. The Commission maintains major governmental funds for the Redevelopment Capital Projects Fund, the Low/Moderate.Income Housing Capital Projects Fund and the Debt Service Fund in the balance sheet and the statement of revenues, expenditures, and changes in fund balances. The governmental funds focus is narrower than that of the government -wide financial statements and, therefore, it is useful to compare the information presented in the governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near-term financial decisions. The governmental funds balance sheet. and the governmental funds statement of revenues, expenditures, and changes in fund balances each provide a reconciliation to facilitate this comparison between the governmental funds and governmental activities. Notes to basic financial statements. The notes provide additional information that. is essential to a full understanding of the data provided in the government -wide and fund financial statements. GOVERNMENT -WIDE FINANCIAL ANALYSIS The following table presents the net assets of governmental. activities as of June 30, 2010 and 2009: 2009 2010 Assets, other than capital assets $ . 46,363,626 Capital assets, net 28,805,766 Total assets 75,169,392 Current liabilities 1,329,769 Noncurrent liabilities 67,179,946 Total liabilities 68,509,715 Net assets: 80,088,127 Invested in capital assets, net - 16.12% of related debt 4,421,797 Restricted 11,147,646 Unrestricted (8,909,765) 4,624,087 $ 6,659,678 2009 $ Change % Change $ 64,113,606 $ . (17,749,980) - 27.60% 27,795,994 1,009,772 3.63% 91,909,600 (16,740,208) - 18.21% 2,029,799 (700,030) . - 34.490/o 80,088,127 (12,908,181) - 16.12% 82,117,926 (13,608,211) - 16.57 % 4,624,087 (202,290) - 4.37% 9,946,707 1 ,200,939 12.07% (4,779,120) (4,130,645). 86.43% $ 9,791,674 $ (3,131,996) - 31.99% Total assets decreased by $16,740,208. Net capital assets increased by $1,009,772, mainly due to a land acquisition for approximately $274,000 and Southwest Station for approximately $980,000 from the City, and approximately $435,000 spent on the City Center Plaza Project. Other assets decreased by $17,749,979 as $2 million of bonds proceeds were used for large expenditures on capital projects, $14 million was spent to defease $12.375 million in outstanding bonds on the 2007R Tax Allocation Bonds and $4.1 million was sent to the State as the Commission's share of the SERAF shift. Total liabilities decreased by $13,608,211 during the fiscal year ended June 30, 2010. Current liabilities decreased by $700,030, primarily due to a decrease of $631,06$ in accounts payable related to payments made towards capital projects. The decrease in the noncurrent liabilities of $12,908,181 is due to the debt payments made during the year on the existing debt, as well as the $12375 million bond defeasance. The Commission's net assets decreased by.$3,U1,996 during the fiscal year ended June 30, 2010. Net assets invested in capital assets, net of related debt decreased by $202,290 as a. result of additions to land and construction -in- progress of $1,683,734, additions to building and improvements of $356,890, less depreciation of $1,030,852; plus scheduled principal payments made on debt used to acquire capital assets of $13,424,500, less interest accreted on debt used to acquire capital assets. of $1,123,197, less amortization on capital asset debt - related items of $40,478, less the change in unspent debt proceeds of $13,472,887_ Restricted net assets increased by $1,200;939. Unrestricted net assets deficit increased by $4,130,645 as a result of the residual effect of the operations of the Commission after taking into consideration the changes in the restricted net assets and invested in capital assets, net of related debt. The following table presents the change in net assets of governmental activities for the fiscal years ended June 30, 2010 and June 30, 2009: % Change - 2.17 % - 16.06% - 100.00% - 97:41% - 12.54% -1.39% N/A - 27.08% 34.66% 36.16 % 7176.19%, 72.36% - 3.1.99% As the information above indicates, the change in net assets as compared to the prior fiscal year decreased by $3,131,996, due to the decrease in revenue of $2,247,583, plus the increase in expenses of $4,995,204. The decrease in revenues is primarily due to the decline in interest rates, as well as the bond tender and State funding for streets projects that did not occur in the current fiscal year. The increase in expenses is primarily due to the SERAF payment to the State for approximately $4.1 million and the loss on defeasance of $1.6 million of the 2007R Tax Allocation Bonds. As noted earlier, net assets may serve over time as a useful indicator of a government's improving or declining financial position. In the case of the Commission, assets exceeded liabilities by $6,659,678, with a negative change of $3,131,996 in net assets. The Commission's largest source of revenue is from property tax increment, which is primarily used to reduce or eliminate blight in the redevelopment area and to assist or provide affordable housing. This revenue stream had grown steadily over the years as new commercial and multi - family properties were developed in the redevelopment area; however, revenues have declined slightly in the current year as a result of the recession and properties being reassessed. Investment income reflects interest earnings on idle cash and bond proceeds. Investment income decreased as a result of less cash available for investment, mainly attributable to bond proceeds being used to fund capital projects and the 2007 Housing Tax Allocation Bond tender the previous fiscal 2010 2009 $ Change General revenues: Taxes $ 13,186,280. $ 13,479,154 $ (292,874) Investment and rental income 2,470,363 21943,152 (472;789) Gains on tender of bond - 759,614 (759,614) Other 19,230 741,536 (722,306) Total general revenues 15,675,873 17,923,456 (2,247,583) Expenses:. Community development 8,053,020 8,166,810 (113,790) SERAF contribution 4;108,698 - 4,108,698 Housing 1,129,498. 1,549,030 (419,532) Interest /loss on defeasance 5,516,653. 4,096,825. 1,419,828 Total expenses . 18,807,869 13,812,665 4,995,204 Change in net assets (3,131,996) 4,110,791 (7,242,787) Net assets, beginning of year 9,791,674 5,680,883 4,110,791 Net assets, end ofyear $ 6,659,678 $ 9,791,674 $ (3,131,996) % Change - 2.17 % - 16.06% - 100.00% - 97:41% - 12.54% -1.39% N/A - 27.08% 34.66% 36.16 % 7176.19%, 72.36% - 3.1.99% As the information above indicates, the change in net assets as compared to the prior fiscal year decreased by $3,131,996, due to the decrease in revenue of $2,247,583, plus the increase in expenses of $4,995,204. The decrease in revenues is primarily due to the decline in interest rates, as well as the bond tender and State funding for streets projects that did not occur in the current fiscal year. The increase in expenses is primarily due to the SERAF payment to the State for approximately $4.1 million and the loss on defeasance of $1.6 million of the 2007R Tax Allocation Bonds. As noted earlier, net assets may serve over time as a useful indicator of a government's improving or declining financial position. In the case of the Commission, assets exceeded liabilities by $6,659,678, with a negative change of $3,131,996 in net assets. The Commission's largest source of revenue is from property tax increment, which is primarily used to reduce or eliminate blight in the redevelopment area and to assist or provide affordable housing. This revenue stream had grown steadily over the years as new commercial and multi - family properties were developed in the redevelopment area; however, revenues have declined slightly in the current year as a result of the recession and properties being reassessed. Investment income reflects interest earnings on idle cash and bond proceeds. Investment income decreased as a result of less cash available for investment, mainly attributable to bond proceeds being used to fund capital projects and the 2007 Housing Tax Allocation Bond tender the previous fiscal year. Other income decreased as the prior year figure included a large reimbursement from Cal. Trans for the City Center Plaza Development project. The Commission's primary source of revenue is property taxes, which are allocated to the Commission in the following manner: a. The assessed valuation of.all property within each Commission project area is determined on the date of adoption of the Redevelopment Plan by a designation of a fiscal year assessment roll. b. A portion of the 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 districts receiving taxes from the project area in addition to a mandatory pass - through amount that is determined by a formula in state law. FUND FINANCIAL ANALYSIS As noted earlier, the Commission uses. fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The Commission's governmental funds are discussed below: Governmental funds. The focus of the Commission's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Commission's financing requirements. In particular, fund balance may serve as a useful measure of a government's net resources available for spending for program. purposes at the end of the fiscal year. The Commission's governmental funds reported an ending fund balance of $43,718,458. The Commission's major source of revenue is .property taxes. The major uses of these funds are to fund construction improvements that eliminate slums and blight within the project area. The fund balance primarily represents the. accumulation of incremental property tax and 'interest income in excess of expenditures, as well as the balance of bond proceeds designated for capital improvements. Fund balance in the amount of $41,757,344 is reserved for loans and notes receivable, community development projects, low- and moderate - income housing projects and future debt service. 6 The following documents the change in fund balance and provides a comparison of revenues and expenditures for the fiscal years ended June 30, 2010 and 2009: 2010 2009 $ Change % Change Revenues: Taxes $ 13,186,280 $ 13,479,154 $ (292,874) - 2.17% Interest and rental income 2,003,565 2,674,676 (671,111) - 25.09% Other 19,230 741,539 (722,309) - 97.41% Total revenues 15,209,075 16,895,369 (1,686,294) - 9.98% Expenditures General government 7,674,679 8,207,458 (532,779) SERAF contribution 4,108,698 - 4,108,698 N/A Capital outlay 2,040,626 5,536,317 (3,495,691) - 63.14% Debt service 18,494,131 15,220,938 3,273,193 21.50% Other expenditures 401,038 455,576 (54,538) - 11.97% Total_ expenditures 32,719,172 29,420,289 3,298,883 11,21% Excess (deficiency) or revenues over (under) expenditures (17,510,097) (12,524,920) (4,985,177) 39.80% Other Financing Sources (Uses): Gain from the tender of bonds - 759,614 (759,614) N/A Total other financing sources (uses) - 759,614 (759,614) - 100.00% Increase (decrease) in fund balance $ (17,510,097) $ (11,765,306) $ (5,744,791) 48.83% The significant changes in the Commission's fund balance are due to: (1) the SERAF payment made to the State for $4.1 M; (2) capital outlay expenditures decreased by $3,495,691 on new, and on -going capital projects; (3) debt service' increased by $1,708,765 due to the defeasance of a, portion of the 2007 Redevelopment Tax Allocation Bonds $12.375M; (4) the cost of defeasance was $1,564,428; (5) investment earnings declined by $671,111 due to lower investment rates as well as a reduction in bond proceeds; and (6) Other Revenue decreased by $722,309 as the Commission did not receive any State or Federal funding for capital projects. CAPITAL ASSET AND DEBT ADMINISTRATION Capita! assets. The Commission's capital assets as of June 30, 2010 were $28,805,766, net of accumulated depreciation. These assets include land, buildings, improvements, construction in progress, and equipment. The Commission expended $1,264,489 for land and the Southwest Station, $435,409 on the City Center Plaza Development project, $109,905 on the Corridor Improvement project, $134,296 on the Stadium Lands Wetlands Elimination project, and $96,525 on various other small projects. Additional information on the Commission's capital assets can be found in Note 5 to the basic financial statements. 7 Long -Term debt.. Long -term debt of the Commission :decreased by $12,908,1181 to $67,179,946 from $.80,088,127, primarily due to the defeasance of a portion of the 2007. Redevelopment Tax Allocation .Bonds, as well as debt service payments made.during the year.. The long-'term debt of the Commission at June 30, 2010 includes $51.7 million. in Tax Allocation Bonds and $7.8 million in Refunding Tax Allocation Bonds. .Additional information on the. Commission's long -term debt can be found in Note 7 to the basic financial Statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS The following factors were considered in preparing the Commission's budget for the 2009 fiscal year: • The redevelopment project area's assessed valuation is estimated to decline by approximately 4 %. • The State will take an ERAF shift of approximately $894,000 from Redevelopment tax increment. In order to stimulate private investment in the Project Area, the. Commission may provide assistance to organizations and engage professional services as needed. The Commission will pursue opportunities to promote economic development by funding and facilitating activities and programs that appeal to visitors; attract and retain businesses, create jobs, and support workforce training and development that meet the needs of local employers. • The Commission will explore opportunities to improve recreational and community facilities serving the Project Area. Several projects have been identified as beneficial to the Project Area, including year -round sports turf for sports fields, an aquatics facility: and a water /spray park. • The Commission will conduct a feasibility study to determine the highest and best use for affordable housing and mixed use projects.on existing sites. To the extent funds are available, the, Commission will continue to provide funding to community - based organizations. • The Commission will pursue opportunities to purchase affordability covenants to restrict occupancy of Rohnert Park rental units for 55 years to low and very-low income households. REQUESTS FOR INFORMATION . This. financial. report is designed to provide a general overview of the Commission's finances for all those with -an interest.; Questions concerning any of the information provided in this report or requests for additional financial I. information should be addressed to the .Director of Administrative Services of the City of Rohnert Park, 130 Avram Avenue, Rohnert Park, CA 94928. 8 BASIC FINANCIAL STATEMENTS COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK STATEMENT OF NET ASSETS GOVERNMENTAL ACTIVITIES JUNE 30, 2010 ASSETS 168,121. Cash and investments $ 2,034,935 Receivables 556,169 Restricted cash and investments 22,850,704 Deferred charges 1,485,407 Loans and notes receivable, net 9,092,186 Advances to City of Rohnert Park 10,344,225 Capital assets: Nondepreciable assets 13,888,613 Depreciable assets, net of accumulated depreciation 14,917,153 Total assets 75,169,392 LIABILITIES Accounts payable 168,121. Due to the City of Rohnert Park 10,838 Interest payable 1,150,810 Noncurrent liabilities: 915,853 Debt due within one year 1,339,160 Debt due in more than one year 65,840,786 Total liabilities 68,509,715 NET ASSETS Invested in capital assets, net of related debt 4,421,797 Restricted for: Housing projects 9,543,217 Community development projects 915,853 Debt service 688,576 Unrestricted (8,909,765) Total net assets $ 6,659,678 See accompanying notes to basic financial statements E COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2010 EXPENSES GENERAL REVENUES Taxes Investment and rental income Other Total general revenues Other Financing Sources (Uses): CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR 9,791,674 NET ASSETS, END OF YEAR $ 6,659,678 See accompanying notes to basic financial statements. 10 Contributions Community to Other Total Development Housing Interest Governments $ 18,807,869 $ 8,053,020 $ 1,129,498 $ 5,516,653 $ 4,108,698 13,186,280 2,470,363 19,230 15,675,873 (3,131,996) OF YEAR 9,791,674 NET ASSETS, END OF YEAR $ 6,659,678 See accompanying notes to basic financial statements. 10 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2010 Capital Projects Funds Low/Moderate Debt. Income Service Redevelopment Housing Fund Total ASSETS Cash and investments $ 1,943,717 $ 91,218 $ - $ 2,034,935 Receivables: Taxes 44,657 - . - 44,657 Due from other governments 504,930. - - 504,930 Accrued interest 5,478 1,104 - 6,582 Due from other funds - 14,627 - 14,627 Restricted cash and investments 7,944,818 13,129,823 1,776,063 22,850,704 Loans and notes receivable, net - 9,092,186 - 9,092,186 Advances to:City of Rohnert Park 10,344,225 - - 10,344,225 Total assets $ .20,787,825 $ 22,328,958 $ 1,776,063 $ 44,892,846 LIABILITIES Accounts. payable $ 11,740 $ 156;381 $ - $ 168,121 Due to other funds 14,627 - - 14,627 Due to City of Rohnert Park 6,37 -1 4,467 - 10,838 Deferred revenue 504,930 475,872 - 980,802 Total liabilities 537,668 636,720 - 1,174,388 FUND BALANCES Reserved for: Loans and notes receivable 10,344,225 8,616,314 - 18,960,539 Housing projects - 13,075,924 - 13,075,924 Community development projects 7,944,818 - - 7,944,818 Debt service - 1,776,063 1,776,063. Unreserved 1,961,114 - - 1,961,114 Total fund balances 20,250,157 21,692;238 1,776,063 43,718,458 Total liabilities and fund balances $ 20,787,825 $ 22,328,958 $ 1,776,063 $ 44,892,846 See accompanying notes to basic financial statements. 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS - GOVERNMENTAL ACTIVITIES JUNE 30, 2010 Amounts reported for governmental activities in the statement of net assets are different because: Fund balances - total governmental funds (page ,I 1). $ 43,718,458 Capital assets used in governmental activities are not financial resources and; therefore, are not reported in the governmental funds. 28,805,766 Interest receivables are not available to pay current period. expenditures and, therefore, are deferred in the funds. 980,803 Bond issuance costs are expensed in the governmental funds when paid, however, are capitalized and amortized over the life of the corresponding bonds for purposes of the statement of net assets. 1,485,407 Interest payable that does not require the use of current financial resources are not . reported in the governmental funds. (1,150,810) Long -term liabilities are not due and payable in the current period and,'therefore, are not reported in the funds. Loans from the City of Rohnert Park $ (2,158,000) Loan from the Rohnert Park Financing Authority (4,752,000) Tax allocation bonds (52,173,164) Accretion on tax allocation bonds (7,340,135) Unamortized premiums (1,250,273) Unamortized discounts 372,647 Unamortized deferred amounts on refunding 120,979 (67,179,946) Net assets of governmental activities (page 9) $ 6,659,678 See accompanying notes to basic financial statements. 12 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Capital Projects Funds Low/Moderate Debt Income Service Redevelopment... Housing Fund Total. REVENUES Taxes $ 13,186,280 $ - . $ - $ 13,186,280 Investment and rental income 1,134,026 824,626 44,913 2,003,565 Other 18,557 673 - 19,230 Total revenues 14,338,863 825,299 44,913 15,209,075 EXPENDITURES Current: General government 6,627,131 1,047,548 - 7,674,679 Payments to the City of Rohnert Park 319,088 81,950 - 401,038 Contributions to other governments - Payment to SERAF 4,108,698 - - 4;108,698 Capital outlay 1,051,100 989,526 2,040,626 Debt service: Advance refunding escrow - Note (7). - - 13,939,428 13,939,428 Principal 305,500 - 1,465,000 1,770,500 Interest and fiscal charges 201,060 - 2,583,143 2,784;203 Total. expenditures 12,612,577 2,119,024 17,987,571 32,719,172 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,726,286 (1,293,725) (17,942,658) J17,510,00) OTHER FINANCING SOURCES (USES) Transfers in - 2,329,705 17,961,616 20,291,321 Transfers out (19,368,829) (922,492) - (20,291,321). Total. other financing sources (uses) (19,368,829) 1,407,213 17,961,616 - NET CHANGE IN FUND BALANCES : (17,642,543) 113,488 18,958 (17,510,097) FUND BALANCES, BEGINNING OF YEAR 37,892,700 21,578,750 1,757,105 61,228,555 FUND BALANCES, END OF YEAR $ 20,250,157 $ 21,692,238 $ 1,776,0.63 $ 43,718,458 See accompanying notes to basic financial statements. 13 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (page 13) $ (17,510,097) Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense, Capital outlays $ 2,040,626 Depreciation (1,030,854) 1,009,772 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 466,798 The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of govenrmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued whereas these amounts are deferred and . amortized in the statement of activities. Principal repayments: Loans from the City $ 76,000 Loan from Rohnert Park Financing Authority 229,500 Tax allocation bonds 13,840,000 Accreted interest on capital appreciation bonds (1,233,573) 12,911,927 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in interest payable $ 69,297 Amortization of deferred costs of issuance (75,947) Amortization of deferred amount on refunding, discounts and premiums (3,746) (10,396) Change in net assets of governmental activities (page 10) $ (3,131,996) See accompanying notes to basic financial statements. 14 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK NOTES TO BASIC FINANCIAL STATEMENTS FOR THEYISCAL YEAR ENDED JUNE 30, 2010 NOTE 1- DESCRIPTION .OF THE COMMUNITY DEVELOPMENT COMMISSION AND REDEVELOPMENT PLAN The Community Development Commission of the City of Rohnert Park (Commission) was established pursuant to part 1.7 of Division 24 of the California Health and Safety Code to assist with redevelopment and housing programs within the. boundaries of the City of Rohnert Park (City), California. As of January 24, 1995, the Commission assumed all the rights, powers, duties, responsibilities, and obligations of the Community Development Agency of the City of Rohnert Park. Through the Commission's .redevelopment plan, approved in July of 1987, the Commission receives incremental property tax revenues on redeveloped property due to increases in assessed value. The Commission is a separate legal entity and its policies are determined by the City Council of the City in a separate capacity as members of the Commission Board. All staff work is performed by the officials and staff of the City, or by consultants to the Commission. For financial reporting purposes, the Commission includes all activities of the Commission that are -controlled by the Board. The Commission is an integral part of the City, and the accompanying basic financial statements are included as a blended component unit of the basic financial statements prepared by the City. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies of the Commission used in preparation of the accompanying basic financial statements. are as follows: a. Government -wide Financial Statements The government -wide financial. statements (i.e., the statement of net assets and the statement of activities.) report information on the Commission's activities. The effect of interfund activity has been removed from these statements. The Commission is only engaged in governmental activities, which normally are supported by tax revenues. . When both restricted and unrestricted net assets are available, unrestricted resources are used only after the restricted resources are depleted. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues, if any. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include grants that are restricted to meeting the operational or capital requirements of a particular function. There were no program revenues earned during the year. Taxes and other items not included among program revenues are reported instead as general revenues. b Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless. of the timing of cash flows. Property taxes are recognized as revenues in the year for which they are levied. 15 NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental fund financial statements are reported using the current financial_ resources measurement focus and the modified-accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available if they are collected within 60 'days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest on long -term .obligations is generally recognized when paid. Property taxes and interest associated with the current fiscal period are all considered being susceptible to accrual and so have been recognized as revenues of the current fiscal period. The Commission reports the following major governmental funds: Redevelopment Capital Projects Fund - This fund is used to account for financial resources, designated for the acquisition or construction of land and capital facilities or significant repairs or improvements thereto. Low/Moderate Income Housing Capital Project. Fund — This fund is used to account for financial resources designated for increasing and improving the supply of housing for persons and families of low or moderate income.. Debt Service Fund — This fund is used to account for the accumulation of resources for, and the payment of, long -term debt principal, interest and related costs. e.. Investments The Commission maintains investments in accounts separate from those of the City and .investments are made in the name of the Commission. The Commission records investment transactions on the trade date. Investments are reported at fair value. Fair value is .defined as the amount that the Commission could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by quoted market prices. d Capital Assets Capital assets are recorded at historical cost or at estimated historical cost primarily for donated capital assets if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. The Commission defines capital assets as assets with an initial, individual cost of more than $5,OOO.and an estimated. useful life in excess of one year. Capital assets used in operations are depreciated using the straight -line method over their estimated useful lives in the government -wide statements. The estimated useful lives are as follows: ' Buildings and improvements 35 years Equipment 5 years 16 NOTE 2 - .SIGNIFICANT ACCOUNTING POLICIES.(Continued) Capital expenditures for certain projects, including acquisition of real. property, site clearance and project improvements, are charged to expenditures when incurred. Management of the Commission has transferred certain assets to the City and, therefore, these assets are not capitalized in the Commission's financial statements. However, appropriate records are maintained by the Commission for both management and accountability purposes. e. Property Tax Levy, Collection and Maximum Rates. The State Constitution Article X1II A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation. debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article X111 A and may be increased by no more than two percent per year unless the property is sold, transferred or improved. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts and other districts. The Commission's property tax revenues include only property taxes resulting from increased assessed values on property within the redevelopment project area. Sonoma County assesses, bills for, and collects property taxes as follows: Secured Unsecured Lien dates January 1 March 1 Levy dates Judy 1 July 1 Due dates 50% on November 1 July 1 50% on February 1 Delinquent as of December 10 (for November) August 31 April 10 (for February) Taxes are secured by liens on the property being taxed. The term "unsecured" refers to taxes on personal property other than land and buildings. f. 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 certain reported amounts and disclosures: Accordingly, actual results could differ from those estimates. 17 NOTE 3 = CASH AND INVESTMENTS Authorized Investments and Required Credit Ratings The Commission's bond trust indentures authorize the Commission to invest in Federal securities, obligations of federal agencies that have the full faith and credit of the United States, bonds, notes or other evidence of indebtedness rated "AAA" by Standard & Poor's and "Aaa" by Moody's Investors Service and issued by the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHMC), with remaining maturities not exceeding .3 years, money market funds rated "AAAm or "AAAm -G" or better by Standard & Poor's, United States deposit accounts and certificates of deposit rated "A -1" or "A -1 +" or better by Standard & Poor's, bankers' acceptances rated "A -1" or "A -1 +" by Standard & Poor's and "P -l" by Moody's Investors Service, commercial paper rated "A -1 +" by Standard & Poor's and "P -1" by Moody's Investors Service which matures no more than 270 days after purchase. Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned to it. For an investment, custodial credit risk is the risk that in the event of the failure of the. counterparty, the Commission will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Commission is not exposed to such risks as all deposits are insured and collateralized. None of the Commissions investments are subject to custodial credit risk. The Commissions cash and investments consist. of the following at June 30, 2010: Cash and investments Restricted cash and investments Interest Rate Risk $ 2,034,935 22,850,704 24,885, 639 As a means of limiting its exposure to fair value losses arising from rising interest rates, the Commission's trust indentures limit investments in commercial paper to maturities not to exceed 270 days and investments in bonds, notes or other indebtedness with FNMA or FHMC to maturities not to exceed 3 years. Currently, the Commission does not have any investments in either of these investment categories. 18 NOTE.3 -.CASH AND INVESTMENTS (Continued) A summary of the Commission's cash equivalents and investments at June 30, 2010 is shown below. Total cash and investments $ 24,885,639 As of June 30, 2010, the Commission's investment in LAIF was $1,470,217, which has a weighted average maturity of'203 days. The total amount invested by all public agencies in LAIF at that date is approximately $23.3 billion. The Commission's proportionate share of structured notes and asset- backed securities held by LAIF was $38,8,14 or 2:64% of 'the Commission's investment in LAIF. The Local Investment Advisory Board.(Board) has oversight responsibility for LAIF. The Board.consists of five members as designated. by. State Statute. The value of the pool shares in LAIF that may be withdrawn is determined on an amortized . cost basis, which is different from the fair value of the Commission's position in the pool. The Commission's investment in LAIF is unrated for credit risk. As of June 30, 20 10,. the Commission's investment in the County's Pool was $22,712, which has a weighted average maturity of 486 days. The total amount invested by the County's Pool at -that date is approximately .$1.5 billion. The County's Pool is subject. to regulatory oversight by the Treasury Oversight Committee._ The value. of the pool shares in the County Pool that may be withdrawn is determined on an amortized cost basis, which is different from the fair value of the Commission's position in the pool. The Commission's investment in the County's Pool is unrated for credit risk. Concentration of Credit Risk The Commission's bond trust indentures place no limit on the amount.that the Commission may invest in any one issuer. At June 30, .2010, both of the Commission's guaranteed _investment contracts that amounted to $19,701,159, or 79% of its total cash and investments, were with Royal Bank of Canada and both mature on June 1, 2012. 19 Maturities Credit Less than More than Investment type Rating Fair value 1 year 1 - 3 years 3 years State treasurer local agency investment fund (L.AIF) Not rated $ 1,470,217 $ 1,470,217 - County of Sonoma Treasurer's investment pool Not rated 22,712 - 22,712 - Guaranteed investment contracts Not rated 19,701,159 - - 19,701,159 Money market funds AAAm 3,149,543 3,149,543 - Total investments 24,343,631 $ 4,619,760 $ 22,712 $ 19,701.,159 Demand deposits 542,008 Total cash and investments $ 24,885,639 As of June 30, 2010, the Commission's investment in LAIF was $1,470,217, which has a weighted average maturity of'203 days. The total amount invested by all public agencies in LAIF at that date is approximately $23.3 billion. The Commission's proportionate share of structured notes and asset- backed securities held by LAIF was $38,8,14 or 2:64% of 'the Commission's investment in LAIF. The Local Investment Advisory Board.(Board) has oversight responsibility for LAIF. The Board.consists of five members as designated. by. State Statute. The value of the pool shares in LAIF that may be withdrawn is determined on an amortized . cost basis, which is different from the fair value of the Commission's position in the pool. The Commission's investment in LAIF is unrated for credit risk. As of June 30, 20 10,. the Commission's investment in the County's Pool was $22,712, which has a weighted average maturity of 486 days. The total amount invested by the County's Pool at -that date is approximately .$1.5 billion. The County's Pool is subject. to regulatory oversight by the Treasury Oversight Committee._ The value. of the pool shares in the County Pool that may be withdrawn is determined on an amortized cost basis, which is different from the fair value of the Commission's position in the pool. The Commission's investment in the County's Pool is unrated for credit risk. Concentration of Credit Risk The Commission's bond trust indentures place no limit on the amount.that the Commission may invest in any one issuer. At June 30, .2010, both of the Commission's guaranteed _investment contracts that amounted to $19,701,159, or 79% of its total cash and investments, were with Royal Bank of Canada and both mature on June 1, 2012. 19 NOTE 4 — LOANS AND NOTES RECEIVABLE, NET The Commission extends various developer loans, first -time homebuyer loans, and rehabilitation loans to property owners for the rehabilitation and improvements of commercial buildings and residential homes, and other loans for families and individuals of low /moderate income. The Commission has a secured interest in the properties for which the loans were made. Management has established an allowance for bad debts in the amount of $2,964,063 based on historical payment history. This allowance represents 90 % of the 1998 First -Time Homebuyers loans ($555,000), 100% of the Sonoma County Rehabilitation loans ($805,743), and 100% of the Sonoma Mountain Business Cluster Loan of $500,000, all of which are forgivable, as well as. 100% of the accrued interest on two of the Burbank notes (120 Santa Alicia Drive and 781 East Cotati Avenue) totaling $718,900. Additionally, the Commission has established an allowance of $439,920 related to accrued interest on the Muirfield Apartment loan, as this interest could be forgivable by the Commission. Interest amounting to $475,872 on the Commission's other loans and notes receivable is reported as deferred revenue in the fund financial statements. On April 1, 2001, the Commission entered into an agreement with Millennium Housing of California ( "Millennium ") to aid in Millennium's purchase of a mobile home park from the Rohnert Park Finance Authority. The Commission loaned Millennium $250,000 for costs associated with the sale. The loan accrues simple interest at 3% per annum, with no payments due until April 14, 2016. Beginning April 2016, total unpaid principal and interest are to be paid in thirty equal annual installments. Principal and interest totaled $325,000 at June 30, 2010. On September 13, 2005, the Commission entered into an Affordable Housing and Loan Agreement with Burbank Housing to develop a 56 -unit affordable housing project on a City-owned City Hall Drive site. The Commission purchased the site from the City and assisted Burbank with the .financing and pre - development costs. Burbank purchased the land from the Commission for $1,335,000 (the amount paid by the Commission to the City for the property): The term of the loan agreement is a non - recourse loan in the. amount of $4,015,000, . which will accrue interest at the rate of 2% per annum and is deferred for 55 years. Principal. and accrued interest totaling $4,385,123 related to this loan is included in loans and notes receivable on the accompanying financial statements. On May 23, 2006, the Commission entered into an Affordable Housing and Loan Agreement with Vida Nueva Partners for the development of the Vida Nueva Affordable Housing Project, which includes twenty-four (24) very-low income permanent supportive housing units (carrying 55 -year affordability restrictions), a community building, laundry facilities, a management office and activity and counseling rooms. The Commission purchased the site from the City at the appraised value of $1,630,000 to be financed over a three -year period beginning in fiscal 2006 -07. The final installment payment from the Commission was paid in fiscal year 2008 -09. The loan agreement provided for the Commission to loan $1,675,000 to Vida Nueva Partners at an accrued interest rate of 2 %u per annum, with the principal and accrued interest deferred for 55 years. Principal and accrued interest totaling $1,720,985 related to this loan is included in loans.and notes receivable on the accompanying financial statements. Vida Nueva Partners purchased the site from the Commission for $810,000 during the fiscal year ended June 30, 2008 (see Note 6). In December 2007, the Commission loaned $500,000, with interest accruing at 3% simple interest per annum, to the Sonoma Mountain Business Cluster (incubator) to pay a portion of the cost for tenant improvements at the former Agilent site. The terms of the loan call for continued .operation of the incubator, increased. occupancy and eventually job creation. The loan provides that as long as the improvements are made as specified in the agreement and continues to operate the Incubator, and is not 20 NOTE 4 — LOANS AND NOTES RECEIVABLE, NET (Continued) . in default, of any terms of the loan, the loan and accrued interest will be forgiven ten years from the date the businss incubator is open for business. As of June 30, 2010 the incubator was not in default of any terms of the loan. The Commission has recorded an allowance against the full. amount of the loan. On December 12, 2007, the Commission executed a loan agreement to Rainbow - Copeland Creek. LLC for improvements to Copeland Creek Apartments (an all senior affordable housing complex) for $1.2 million. The funds were primarily used for energy efficient improvement at the complex. The loan is at an accrued interest rate of 1% per annum, with the principal and accrued interest deferred for 55 years, as defined in the agreement. Principal and accrued interest totaling $1,230,542 related to this loan is included in loans and notes receivable on the accompanying financial statements. On January 27, 1998, the Commission entered into a note agreement with Muirfield Apartments for supportive housing for persons with disabilities and low income persons. The note represents an advance of funds by the Commission to Muirfield Apartments for the pre - development and development expenses in the amount of $611,000 accruing 6 % per annum, simple interest. Interest shall accrue and be paid concurrently with principal' on or before June-30, 2039, but in no event before the maturity date .of the Housing Urban Development (HUD) mortgage note. During the term of the Note, Muirfield Apartments may request and the Commission, at its option, may cancel this note or extend the terms of the note. The Commission has recorded an allowance. against the accrued interest portion of this loan totaling $439,920 at June 30, 2010. On July 1; 1995, the. Comrission and Burbank Housing Development Corp. executed .a loan agreement in the amount of $260,000. The loan was for pre- development costs for the property: at 120 Santa Alicia Drive. for residential low income housing. The note accrues 3 %u per annum simple interest and is to be paid concurrently with principal on or before September 1., 2023. During the term of the Note, Burbank Housing Development may request and the Commission, at its option,. may cancel this note or extend the terms of.the note. The Commission has recorded an allowance against the accrued interest portion of. this loan totaling $131,300 at June 30, 2010. On August 23, 1991, the Commission entered into a non- recourse promissory note in the amount of $390;000. with Burbank Housing Development Corp. for the construction of 50 low income rental housing units at 781. East_ Cotati Avenue. The note bears interest at 8% simple interest per annum and is due on or before .August 23, 2021. During the term of the Note, Burbank Housing Development may request and the Commission, at its option, may cancel this note or extend the terms of the note. The Commission has recorded an allowance against the accrued interest portion of this loan totaling $587,600 at June 30, 2010. 21 NOTE 5 — CAPITAL ASSETS Capital asset activity for the year ended June 30, 2010, follows: Balance Balance July 1, 2009 Additions Retirements Adjustments June 30, 2010 Governmental Activities: Capital assets, not being depreciated: Land $ 9,007,182 $. 274,962 $ - $ - $ 9,282,144 Construction in progress 3,197,697 11765;662 - (356,890) 4,606,469 Total capital assets, not being depreciated 12,204,879 2,040,624 - (356,890) 13,888,613 Capital assets, being depreciated: Buildings and improvements 26,842,104 Equipment 805,264 356,890 27,198,994 805,264 Total capital assets, not being depreciated 27,647,368 . 356,890 - - 28,004,258 Accumulated depreciation: Buildings and improvements (11,250,989) (1,030;852) - - (12,281,841) Equipment (805,264) - - - (805,264) Total accumulated depreciation: (12,056,253) (1,030,852) - - (13,087,105) Total capital assets being depreciated, net 15,591,115 (673;962) - - 14,917,153 Total capital assets $27,795,994 $ 1;366,662 $ - $ (356,890) $28,805,766 Construction in progress at June 30, 2010 included the City Center Plaza Development ($3,300,000 authorized), the Community Center Fountain/Plaza:Development ($250,000 authorized), the Stadium Lands Wetlands Elimination ($140,000 authorized), the _Stadium. Lands Building Removal ($120,000 authorized, the Corridor Improvements ($3,000,000 authorized) and the purchase of the Southwest Boulevard Fire Station ($1,000,000). To date; the Commission has spent $3,262,013 on the City Center Plaza Development, . $19,094 on the Community Center Fountain/Plaza Development, $134,296 on the Stadium Lands Wetland Elimination, $46,639 on the Stadium Lands Building Removal, $129;534 on the Corridor Improvements, $989,526 on the purchase of the Southwest Boulevard Fire Station and $25,367 on other smaller, projects. There were five Commission projects which were completed during the fiscal year: the Westside.Public Safety Facility ($57,810), the Public Safety Bay & Driveway Realignment ($260,033), the .Alicia Pool Decommissioning ($21,047), the Ladybug Pool Decommissioning ($18,000) and the purchase of two vacant parcels on Redwood Drive ($274,962). Depreciation expense in the amount of $1,030,852 was charged to the community development function. 22 NOTE 6 - RELATED PARTY TRANSACTIONS Land Acquisition As discussed above, the Commission purchased two vacant parcels from the City on Redwood Drive ($274,962) that will allow greater flexibility for economic development on adjacent sites. The City also purchased the former Southwest Boulevard Fire Station for the development of affordable housing or housing- related development, such as a nonprofit incubator. Community Center Lease The Commission and the City entered into. a Ground Lease Agreement (Lease Agreement) dated July 8, 2003, whereby the Commission agreed to pay the City $210,000 annually for the Community Center. The Basic. Lease Payment will be reviewed and adjusted every five years after the commencement of the Lease Agreement to determine whether an adjustment in the Basic Lease Payment is warranted to reflect increases in fair market value of the property. Commencing in fiscal 2010, the Basic Lease Payment was adjusted to $241,000 annually. Eastside Sewer Main Project On May 22, 2007 (amended August 26, 2008), the Commission entered into a reimbursement agreement with the City whereby the Commission would fund 88% of the project cost of the Eastside .Sewer Main Phase 1 Improvement, which is.the portion of the project that lies within the project area, in advance of the City receiving the money through public facilities finance fees. The Commission is funding this project from the 2007R Tax Allocation Bond proceeds, and pursuant to the terms of the reimbursement agreement, the maximum amount to be funded by the Commission is $12,144,000. As of June 30, 2008, the Commission had advanced $101055,725.to.the City for this project, and no further advances have been made since then. The. Commission will receive interest on.the Than at the Guaranteed Investment Contract rate, which is the investment that holds the majority of the. bonds proceeds. The Commission will be reimbursed such. advances from the City provided the City collects development fees as defined in the agreement. At June 30, 2010, no amount of this advance has been deemed uncollectible, and therefore no allowance for bad debt has been recorded by the Commission. The Commission will reassess the collectability of these advances at least annually. Hazel Wetland Preserve In October 2006, the Commission purchased the Hazel Wetland Preserve for $288,500, which is to be reimbursed by the City upon the sale of stadium lands. 23 NOTE 7 - LONG -TERM DEBT The Commission's long -term debt payable at June 30, 2010 follows: Loans from the City - Performing Arts Center 1991 Refunding TaxAllocation Bonds, including accreted interest 1999 TaxAllocation Bonds, including accreted interest 2001 Refunding TaxAllocation Bonds 2007 TaxAllocation Bonds 2003 Loan from RPFA Interest Maturity Rates 2004 -2024 9.000/0 2004 -2020 6.60 - 6.80% 2004 -2036 3.60-5.30% $ 4,200,000 3.50-5.25% 2004 -2016 3,50-5.00% 2008 -2038 2.50-4.75% 2004 -2025 6,735,000 Total governmental activities - bonds, loans payable, and accreted interest on capital. appreciation bonds Annual Principal Installments $45,000 - 254,000 550,000 - 580,000 285,000- 260,389 55,000 - 775,000 315,000 - 5,090,000 202,500 - 423,000 Original Issue Outstanding at Amount June 30, 2010 $ 4,200,000 $ 2,158,000 13,099,895 1,035,326 11,936,651 14,987,973 8,200,000 6,735,000 61,440,000 36,755,000 6,255,000 4,752,000 $ 66,423,299 Loan from the City —Performing Arts Center The City's General Fund loaned $4,200,000 to the Commission in order to construct a performing arts center. The loan is. being repaid with property tax increment. Loan from Rohnert Park Financing Authority The Commission leases the Public Safety Facilities to the City. Such facilities were constructed with proceeds of the 1991 certificates of participation. Under*the terms of the lease, the City's lease payments to the Commission are scheduled to be equal to the debt service requirements of the certificates of participation. Under a separate agreement; the Commission has agreed to provide surplus tax increment revenues to the City to make lease payments if the City does not otherwise provide for the lease payments. During the year, the Redevelopment Capital Projects Fund made the lease payments with surplus tax increment. On July 1, 2003, the Rohnert Park Financing Authority (RPFA) issued Lease Revenue Refunding Bonds, Series 2003 (Bonds), in the amount of $6,950,000. Proceeds of the bonds were used to refund the City's 1999 COPs (Master Equipment Lease) and the Commission's 1994 Refunding COPs (Public Safety Facility Project) outstanding balance of $5,280;000. The Commission entered into the loan arrangement with the RPFA to repay its portion of the bonds at the amount equal to approximately 90% of the debt service of the bonds. See the RPFA's debt disclosures to its basic financial statements for further details on the refunding transaction. Tax Allocation Bonds. Debt service payments on tax allocation bonds are funded with.property tax increment received from the state for property located within the redevelopment area. 1991 Tax Allocation Refuridin;z Bonds On May 1, 1991, the Commission issued Tax Allocation Refunding Bonds in the amount of $13,099,895 ( "Series 1991 Bonds "). The bonds were issued for the purpose of advance refunding the entire outstanding $11,765,000 principal amount. of the 1988 Rohnert Park Redevelopment Project Tax Allocation Bonds, to fund a reserve account and to pay the costs of issuance of the 1991 Tax Allocation Refunding Bonds. The 1991 Tax Allocation Refunding Bonds are limited obligations of the 24 NOTE 7 - LONG -TERM DEBT (Continued) Commission payable from and secured by tax revenues to be derived from the Rohnert Park Redevelopment Project and from interest earnings on the funds and accounts on deposit with the Trustee. The pledge of future revenues ends upon final payment scheduled to. occur in 2021. 1999 Tax Allocation Bonds On January 15, 1999, the Commission issued Tax Allocation Bonds, Series 1999 ( "1999 TABS ") in the amount of $11,936,651. The 1999 TABS .were issued for the purpose of funding certain capital improvements, to . fund a reserve fund and to pay the costs of issuing the Series 1999. Bonds. The 1991 TABS are limited obligations of the Commission payable from and secured by tax revenues.to be derived from the project area. The pledge of future revenues ends upon final payment scheduled to occur in 2036. 2001 Tax Allocation Bonds On September 25, 2001, the Commission issued the Rohnert Park Redevelopment Project Tax Allocation Refunding Bonds, Series 2001 ("2001 TABs ") in the amount of $8,200,000 for the purpose of refunding a portion of the .Commission's outstanding Series 1991 Bonds, funding certain capital improvements, funding a reserve fund and paying the issuance costs. The 2001 TABs are limited obligation bonds of the Commission payable from and secured by a portion of tax increment revenues. The pledge of future revenues ends upon final payment scheduled to occur in 2021 2007 Tax Allocation Bonds On March 28; 2007 the Commission issued the Rohnert Park Redevelopment Project Tax Allocation Bonds., Series 20078 (. "2007 Redevelopment Project Bonds ") in the amount of $34,680;000, and the Rohnert' Park Redevelopment Project Housing Tax Allocation .Bonds ( "2007 _Housing Bonds ") in the amount .0f.$26,760,000, for the purpose of financing certain public improvements, including certain housing projects, purchasing municipal bond debt service reserve fund policies in order. to. satisfy the reserve requirements for the respective reserve accounts, and paying the costs of issuing the bonds. The 2007 Redevelopment Project Bonds are special obligations of the Commission payable from and secured by tax revenues. The pledge of future revenues ends upon final payment scheduled to occur in 2038 for both of the 2007 Tax Allocation Bonds. Based on .a recent analysis of the future housing project needs, the Commission determined that there were surplus bond proceeds. On June 18, 2009, the Commission tendered $9,630,000 of a 2037 Housing Term Bond, with $450,000 remaining outstanding. In June 2010, the Commission defeased $12,375,000 of the 2007 Redevelopment Project Tax Allocation Bonds by depositing $13,939,428 into an irrevocable escrow with an escrow agent. The funds were used to purchase U.S. government securities, the purpose of which is to provide for.all future debt service on the refunded amount. As a result, $12,375,000 of the 2007 Redevelopment Project Tax Allocation Bonds are considered defeased and.the liability for this amount has been removed from the government -wide statement of net assets. No new debt was issued in connection with. this refunding. The Commission advance refunded these bonds to reduce its total debt service over the next 28 years. A loss was recorded I n the government -wide statement of activities in the amount of $1,564,428, which has been.recorded in interest expense. In fiscal year 2010, pledged revenues for the Series 1991 Bonds, 1999 TABs, 2001 TABs, and 2007 Redevelopment Project Bonds totaled $3,314,054, and required debt service was $3,314,137, as follows: 1991 Bonds - $580,000; 1999 TABs - $387,790; 2001 TABs - $386,368; and 2007 Redevelopment Project Bonds = $1,959,979. The 2007 Housing Bonds are special obligations of the R NOTE 7 -LONG -TERM DEBT (Continued) Commission and payable from and secured by the housing set -aside amount. Revenues pledged in fiscal year 2010 for the 2007 Housing Bonds were $734,004, and the required debt service was $734,006. The following is a summary'of long -term debt activity for the year ended June 30, 2010. ending 90,000 Amount due Balance Additions/ Balance Within One June 30, 2009 Accretions Retirements June 30, 2010 Year Long-term Debt: .2011 Loans from the City $ 2,234,000 $ - $ (76,000) $ 2,158,000 $ 83,000 Loan fromRPFA 4,981,500 - (229,500) 4,752,000 238,500 Taxallocation bonds 65,605,256 - (13,432,092) 52,173,164 620,355 Accretion on taxallocation bonds 6,514,470 1,233,573 (407,908) 7,340,135 419,038 Total long-term debt 79,335,226 1,233,573 (14,145,500) 66,423,299 1,360,893 Issuance premium. 1,302,591 - (52,318) 1,250,273 34,330 Issuance discount (382,125) - 9,478 (372,647) (9,479) Deferred amount on refunding (167,565) - 46,586 (120,979) (46,584) Total long-term liabilities $ 80,088,127 $ 1,233,573 $ (14,141,754) $ 67,179,946 $ 1,339,160 Future debt service requirements (principal and interest) at June 30, 2010 were as follows: 2016 -2020 Year. Tax Allocation Bonds $ 83,000 ending 90,000 186,750 Accreted June 30: Principal Interest Interest .2011 $ 620,355 $ 1,993,280 $ 579,645 2012. 601,810 1,984,567 603,190 2013 1,028,453, 1,963,567 186,547 20.14 1,051,007 1,929,728 198,993 2015 1,073,944 1,892,713 211,056 2016 -2020 11,3181748 8,232,232 1,881,251 2021 -2025 10,845;356 6,105,203 5,594,644 2026 -2030 11,656,546 4,139,393 6,763,455 2031 -2035 7,706,555 2,149,438 7,238,444 2036 =2038 6,270,390 517,453 1,494,611 $ 52,173,164 $ 30,907,574 $ 24,751,836 NOTE 8 - INTERFUND TRANSACTIONS Loans from the Principal Interest $ 83,000 $ 194,220 90,000 186,750 99,000 178,650 108,000 169,740 117,000, 160,020 764,000 621,630 897,000 210,510 $2,158,000 $1,721,520 Loan from RPFA Principal Interest $ 238,500 $ 204,934 243,000 196,535 252,000 187,500 261,000 177,781. 274,500 167,233 1,548,000 646,095 1,935,000 238,332 $ 4,752,000 $1,818,410 The composition of interfund receivables and payables for the year ended June 30, 2010 follows: Fund reporting receivable Fund reporting payable Amount Low /Moderate Income Housing Capital Projects Fund Redevelopment Capital Projects Fund $ 14,627 (a) (a) This interfund. balance represents an outstanding amount due to the Low/Moderate Income Housing Capital Projects Fund from the Redevelopment Capital Projects Fund for the 20% of tax increment that is transferred annually. 01 NOTE 8 — INTERFUND TRANSACTIONS (Continued) The composition of interfund transfers for the year ended June 30, 2010 follows: Transfers in Low /Moderate Income Housing Capital Projects Fund Debt Service Fund Debt Service Fund Transfers out Redevelopment Capital Projects Fund Redevelopment Capital Projects Fund Low /Moderate Income Housing Capital Projects Fund Amount. $ 2,329,705 (a) 17,039,124 (b) 922,492 (b) $ 20,291,321 (a) This transfer represents 20% of tax increment earned for the year ended June 30, 2010 which is required to be set aside in a separate fund to provide adequate housing for families and individuals with low or moderate income. (b) These transfers represent tax increment revenues collected by the Commission that were transferred to the debt service fund for purposes of repayment on the . tax allocation bonds. NOTE 9 — COMMITMENTS AND CONTINGENCIES. The Commission .received an award of $600,000 on June 29, 2007 from the State of California Department of Housing and Community Development CalHome program for the purpose of operating an Owner- Occupied. Rehabilitation loan program for eligible residential properties that_ are occupied by low- income households. The program provides for deferred payment loans with below - market interest. rates to eligible, owner- occupied, low- income households with incomes at or below 80% of the median area income. The term of the loans will be for thirty years, with no payments required prior to the thirtieth anniversary of the loan, except if i) the borrower dies; ii) the property is. sold or transferred; iii) the borrower no longer occupies the property as their principal residence ( except under certain situations as defined); or iv) the borrower is in default of any other loan condition. Interest will accrue on the loans at 3% simple interest.. The Commission received $150,000 from this first draw request in December 2008, and during the fiscal year the funds were provided to the Department of Housing and Community Development for rehabilitation loans. The Commission estimates it will owe approximately $894,000 in fiscal 2010 -11 to the State of California in conjunction with the SERAF shift (see Note 11 — Transactions with the State of California). 27 NOTE 10 - RISK MANAGEMENT The Commission is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The Commission participates in the Redwood Empire Municipal Insurance.Fund (REMIF), a joint power agency (risk - sharing pool) as a component unit of the. City. The purpose of REMIF is to spread the adverse effects of losses among the member agencies and to .purchase excess insurance as a group, thereby reducing its expense. The Commission, through cost allocations from the City, contributes its pro -rata share of anticipated losses to a pool administered by REMIF. There have been no claims during the past three years that have exceeded excess insurance coverage. Additional disclosures required under Governmental Accounting Standards Board Statement Nos: 10 and 30 and information regarding the City's insurance is presented in the City's basic financial statements, which can be obtained from the City of Rohnert Park, Finance Department, 130 Avram Avenue, Rohnert Park, CA 94928. NOTE 11- TRANSACTIONS WITH THE STATE OF CALIFORNIA SERAF Shift for fiscal year.2009 -10 and 2010 -11 On July 23, 2009, the State adopted legislation requiring a shift of monies during fiscal years 2009 -10 and 2010 -11 to be deposited into the County "Supplemental" Educational Revenue Augmentation Fund ( SERAF). These monies were to be distributed to meet the State's Proposition. 98 obligations to schools. The California Redevelopment Association (CRA) and its member agencies filed a legal action in an attempt to stop these amounts from having to be paid; however, in May 2010 the Sacramento Superior Court upheld the legislation. This decision is in the process of being appealed by CRA and its member agencies. The payment of the SERAF was due on May 10, 2010, for fiscal year 2009 -10 and it was made in the amount of $4,108,698. It is estimated the Commission's share of the SERAF shift for fiscal year 2010 -11 Will amount to approximately $894,000; and will be due by May 2011 if ongoing appeals are not successful. NOTE 12 - SUBSEQUENT EVENTS The Commission has evaluated subsequent events through December 14, 2010, the date the financial statements were deemed available for issuance. 28 OTHER REPORT AND INFORMATION m NCO. LI :P c - • Business Consu@ ants & Advisers December 14, 2010 Board of Directors of the Community Development Commission of the City of Rohnert Park, California 465 California Street Phone: (415) 434 -3744 Suite 700 Fax (415) 788 -220 San Francisco, .CAA 94104 1 www.ourTicpa.com REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS We have audited the basic financial statements of the governmental activities and each major fund of the Community Development Commission of the City of.Rohnert Park (Commission), a component unit of the City of Rohnert Park, California, as of and for the fiscal year ended June 30., 2010, which collectively comprise the Commission's basic financial statement and have issued our report thereon dated December 14, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly; we 'do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or_ detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a time basis. Our consideration of internal control over financial reporting was for the . limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in .internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants. agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. Such provisions include those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the California State Controller and ' as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those. provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other .matters that are required to be reported under Government Auditing Standards and which is described in the. accompanying schedule of findings and questioned costs as Item 2010 -01. This report is intended for the information and use of the. members of the Board of Directors, management, and the State Controller's Office and is not intended to be and should not be used by anyone other than these specified parties. 0 30 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK SCHEDULE OF FINDINGS AND RECOMMENDATIONS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 .CURRENT YEAR FINDINGS Item 2010 -01: The 2009/10- 2013/14 Five -Year Implementation Plan for the Rohnert Park Redevelopment Project Area was not adopted until April 27, 2010. PRIOR YEAR FINDINGS None. 31 STATISTICAL INFORMATION (UNAUDITED) 32 COMMUNITY DEVELOPMENT COMMISSION OF THE' CITY OF ROHNERT PARK ASSESSED VALUATIONS AND INCREIVIENTALVALUATIONS FOR THE ..TEN FISCAL YEARS ENDED JUNE 30, 2010 Incremental Assessed Valuation Less: Base Year Valuation 2000/01 1,124,854,200 (489,927,900) 634,926,300 2001/02. 1,230,537,337 (489,927,900) 740,609,437 2002/03 1,329,427,086. (489,927,900) 839,499,186. 2003/04 1,433,592,447 (489,927,900) 943,664,547 2004/05 1,507,607,335 (489,927,900) 1 1,017,679,435 2005/06 1,600,487,039 (489,927,900) 1,110,559,139 2006/07 1,739,849,103 (489,927,900) 1,249,921,203 2007/08 1,803,142,243 (489,927,900) 1,313,214,343 2008/09 1,818,722,010 (489,927,900) 1,328,794,110 2009/10 1,790,414,969 (489,927,900) 1,300,487,069 32 This page is intentionally left blank. HCD REPORT California Redevelopment Agencies- Fiscal Year 2009/2010 Project Area Contributions to Low and Moderate Income Housing Funds Sch A Project.Area Summary Report ROHNERT PARK Tax Incr. Project Area 100% of Tax 20% Set Aside Tax Increment Amount Amount Deposited to Percent of Tax Repayment Total Other Deposited to Increment Requirement Allocated Exempted Deferred Hsng Fund Incr Dep Deferrals Income Housing ROHNERT PARK. PROJECT $11,648,525 $2,329,705 $2,329,705 $0 $0 $2,329,705 20% $0 $0 $2,329,705 Agency Totals: $11,648,525 $2,329,705 $2,329,705 $0 $0 $2,329,705 20% $0 $0 Note: Print this. report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape) Page 1 of 1 12110/10 $2,329,705 California Redevelopment Agencies- Fiscal Year 200912010 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Agency ROHNERT PARK Address 130 Avram Avenue City of Rohnert Park Community Development Commission Rohnert Park CA 94928 Project Area ROHNERT PARK PROJECT Type: Inside Project Area Status: Active Plan Adoption:. 1987 Plan Expiration Year: 2028 Gross Tax Calculated Amount Amount Amount Total % Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $11,640,525 $2,329,705 $2,329,705 $0 $0 $2,329,705 20% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund. Deposits for Project Area $2,329,705 Agency Totals For All Project Areas: Gross Tax Calculated . Amount Amount Amount Total % Increment Deposit Allocated. Exempted Deferred Deposited .$11,6487525 $2,329,705 $2,329,705 $0. $0 $2,329,705 20% Total Additional Revenue from Project Areas: $0 Total Deferral Repayments: $0 Total Deposit to Housing Fund from Project Areas: $2,329,705 Page 1 of 1 12/10/10 Cumulative Def. $0 bcn Eves rroject Area rrogram enrormanon ROHNERT PARK oject Area: ROHNERT PARK PROJECT OWNER- OCCUPIED UNITS -=--- - - - - -- - -- - - - - -- - --- - - - - -- --- - - - - =- - - - -- ----------- - - - - -- - -- - -- - - - - -= Report Year Amount Very.Low Low Moderate Total Sates: 2009/2010 $0 0 0 1 1 Page 1 of 1 12/10/10 Expenses 2009/2010 Debt Sery ice Housing Planning and Property Subsidles Transfers Out of Total California Redevelopment Agencies - Fiscal Year 2009/2010 Acquisition Agency Qz¢ro►� Status of Low and Moderate Income Housing Funds Costs Sch C Agency Financial Summary $83,151 $60,361 $1,018,072 $531,440 $576,000 ROHNERT PARK Adjusted Project Agency. Net Other Total *Unen- Unen- Unen- ' Beginning Area Other Total Resources Housing Housing Encum- cumbered cumbered cumbered Balance Receipts Revenue Expenses Available Fund Assets Fund Assets brances Balance Designated Not Dsgntd $1,082,764 $2,329,705 $0 $3,340,044 $72,425 $0 $72,425 $50 $72,375 $50 $72,325 Expenses 2009/2010 Debt Sery ice Housing Planning and Property Subsidles Transfers Out of Total Rehabilitation Administration Acquisition Agency Costs $1,071,020 $83,151 $60,361 $1,018,072 $531,440 $576,000 $3,340,044 '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 12110/10. zitatus.or Low and moderate income Housing Funds Sch C Agency Financial and Program Detail ROHNERT PARK Beginning Balance $1,082,764 Adjustment to Beginning. Balance $q Adjusted Beginning Balance $1,082,764 Total Tax Increment From PA(s) $2,329,705 Total Receipts from PA(s) $2,329,705 Other Revenues not reported on Schedule A $0 Sum of Beginning Balance and Revenues $3,412,469 Expenditure Item Subitem Amount Remark Debt Service Debt Principal Payments Tax Allocation, Bonds & Notes $267,092 Interest Expense $655,400 Other $148,528 Deferred Interest Subtotal of Debt Service $1,071,020 Housing Rehabilitation $83,151 Subtotal of Housing Rehabilitation $83,151 Planning and Administration Costs Administration Costs $60,361 Subtotal of Planning and Administration Costs $60,361 Property Acquisition' Acquisition Expense $2,263 Operation of Acquired Property $28,546 Real Estate Purchases $987,263 Subtotal of.Property Acquisition $1,018,072 Subsidies from the LMIHF Page 1 of 3 12/10/10 Status of. Low and Moderate. Income Housing Funds. Sch C Agency Financial and Program Detail ROHNERT PARK Total Encumbrances $50 Unencumbered Balance $72,375 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 Zoning Purchase Estimated Acres Date Start Date Remark. 435 Southwest Blvd .Z4 P4 05124/2010 09101/2012 6750 Commerce Blvd .86 R -H 06130/2008. 09101/2012 100 Avram Ave ..69 R -H 02/2112008 09/01/2012 120 Avram Ave .77. R -H .01122/2008 09101/2012 Use of the Housing Fund to Assist Mortgagors Income Adjustment Factors Requirements Completed Home $ Hope $ . Non Housing Redevelopment Funds Usage Resource Needs LMIHF Deposits/Withdrawis Document Document Custodian Custodian Copy Name Date Name Phone Source Achievements Description Page 3 of 3 12110/10 bcn U Ueneral Prvjecl luwnitauvu ROHNERT PARK Project Area Name: ROHNERT PARK PROJECT Project Name: COTS - Vida Nueva Support Services PROJECT FUNDING SOURCE --------------------------------------------------------------=-------=---------- Funding Source. Amount Redevelopment Funds $75,000 Project Name: Committee on the Shelterless Address: 1500 B Petaluma Blvd. South Petaluma 94952 Owner Name: Board of Directors based non - profit organization NITINVENTORY -------------------------------------------------------------------------------------------- Very Low Low Moderate Above Mod Became Total Ineligible Other. Provided with LMIHF Unit Subsidy Non-Agency Rental Non- Elderly 5 0 0 0 0 5 Unit Total 5 0 0 0 0 5 PROJECT FUNDING SOURCE ----------=----------=---=----=----------------------- Funding Source Amount Redevelopment Funds $88,851 Project Name: Homeless Prevention Program (SCAYD) Address: 7345 Burton Ave Rohnert Park 94928 Owner Name: Non - profit IT INVENTORY Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Subsidy i- Agency Rental Non - Elderly 0 .151 0 0 0 151 Unit Total 0 151 0 0 0 151 OJECTFUNDINGSOURCE ------------------------------------------------- Funding Source Amount Redevelopment Funds $130,000 Page 1 of 3 12/10/10 Sch D General Project Information« ROHNERT PARK Project Area Name: . ROHNERT PARK PROJECT Project Name: Rebuilding Together. Rohnert Park Address: 245 Southwest Boulevard Rohnert. Park 94928 Owner_ Name: Non - Profit Volunteer Org. with Board of Directors NIT-INVENTORY --------- - - - - -- --------------------- - - - - -- --------- - - - - -- ----- - - - - -- - --- - - - - -- - - - - Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Subsidy Non- Agency Owner Non - Elderly 6 0 0 0 0 6 Non-Agency Owner Elderly 14 0 0 0 0 14 Unit Total 20 0 0 0 0 20 PROJECT FUNDING SOURCE - - -.- - -- - - - -- - - - - - -- - - - - - - - ------- - - - - -- - - - - - - - -- - -- - -- - - - - - -- Funding Source Amount Redevelopment Funds $70,000` Page 3 of 3 12/10/10