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2005/12/13 City Council Resolution (21)RESOLUTION NO. 2005- 366 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROR.NERT PARK RECEIVING FROM THE COMMUNITY DEVELOPMENT COMMISSION THE REDEVELOPMENT ANNUAL REPORT FOR FISCAL YEAR ENDING JUNE 30, 2005 WHEREAS, Section 33080.1 of Community Redevelopment Law of the State of California, Health and Safety Code, 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; and WHEREAS, the Community Development Commission of the City of Rohnert Park has prepared the 2004 -05 Annual Report containing various financial and performance information for the Rohnert Park Redevelopment Project Area and has submitted it to the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it has received from Community Development Commission the State Housing and Community Development Annual Report for Fiscal Year ending June 30, 2005 DULY AND REGULARLY ADOPTED this 13`h day of December 2005. CITY OF ROHNERT PARK City Clerk BREEZE: AYE FLORES: AYE SMITH: AYE VIDAK- MARTINEZ: AYE MACKENZIE: AYE AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0) JH- S:05 -d California Redevelopment Agencies - Fiscal Year 200412005 Project Area Contributions to Low and Moderate Income Housing Funds Sch A Project Area Summary Report ROHNERT PARK RDA Tax Incr. Percent Total Project Area 100% of Tax 20% Set Aside Tax Increment Amount Deposited to of Tax Repayment Other Deposited to Deferral Increment Requirement Allocated Exempted Hsng Fund Incr Dep Deferrals Income Housing ROHNERT PARK PROJECT $9,510,144 $1,902,029 $1,920,845 $0 $0 $1,920,845 20.20% $0 $236,223 $2,157,068 Agency Totals: $9 510,144 $1,902,029 $1,920,845 $0 $0 $1,920,845 20.20% $0 $236,223 $2,157,06 Note: Print this report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape) Page 1 of 1 12/08/05 California Redevelopment Agencies- Fiscal Year 200412005 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Agency ROHNERT PARK RDA Address 6750 Commerce Boulevard Community Development Agency Rohnert Park CA 94928 Project Area ROHNERT PARK PROJECT Type: Inside Project Area Status: Active Plan Adoption: 1987 Plan Expiration Year: 2027 - Gross Tax Calculated Amount Amount Amount Increment Deposit Allocated Exempted Deferred $9,510,144 $1,902,029 $1,920,845 $0 $0 Repayment Category Interest Income Loan Repayments Total Additional Revenue Total Housing Fund Deposits for Project Area Total % Deposited $1,920,845 20.20% $0 $129,471 $106,752 $236,223 $2,157,068 Cumulative Def. $0 Agency Totals For All Project Areas: Gross Tax Calculated Amount Amount Amount Total "% o Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $9,510,144 $1,902,028.8 $1,920,845 $0 $0 $1,920,845 20% $0 Total Additional Revenue from Project Areas: $236,223 Total Deferral Repayments: $0 Total Deposit to Housing Fund from Project Areas: $2,157,068 Page 1 of 1 12/08/05 California Redevelopment Agencies - Fiscal Year 2004/2005 Status of Low and Moderate Income Housing Funds Sch C Agency Financial Summary ROHNERT PARK RDA Adjusted Project Agency Net Other Housing Total Housing Encum- * Unen- cumbered Unen- Unen- cumbered cumbered Beginning Area Receipts Other Revenue Total Expenses Resources Available Fund Assets Fund Assets brances Balance Designated Not Dsgntd Balance $2,897,688 $2,157,068 $302,000 $2,536,816 $2,819,940 $3,319,588 $6,139,528 $0 $2,819,940 $2,819,940 $0 Expenses Debt Service Housm Housing �; I Planning and Pro Property Subsidies Transfers Out of Total Agency Construcgon Rehabilitaon Administration Acquisition � costs Co 2004/2005 $188,066 $1,088,154 $40,000 $1,039,727 $3,000 $85,636 $92,233 $2,536,816 *The Unencumbered Balance is equal to Net Resources Available minus Encumbrances Note: Print this report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape) Page 1 of 1 12/08/05 California Redevelopment Agencies - Fiscal Year 2004/2005 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail ROHNERT PARK RDA Beginning Balance $2,897,688 Adjustment to Beginning Balance $0 Adjusted Beginning Balance $2,897,688 Total Tax Increment From PAW $1,920,845 Total Receipts from PA(s) $2,157,068 Other Revenues not reported on Schedule A $302,000 Sum of Beginning Balance and Revenues $5,356,756 Expenditure Item Subitem Amount Remark Debt Service Debt Principal Payments Tax Allocation, Bonds & Notes $53,030 Interest Expense $135,036 Subtotal of Debt Service $188,066 Housing Construction No Information Provided Housing Rehabilitation No Information Provided Subtotal of Housing Construction Subtotal of Housing Rehabilitation Planning and Administration Costs Administration Costs Professional Services Subtotal of Planning and Administration Costs Property Acquisition Operation of Acquired Property Subtotal of Property Acquisition Page 1 of 3 12/08/05 $1,088,154 $1,088,154 $40,000 $40,000 $788,981 $250,746 $1,039,727 $3,000 $3,000 California Redevelopment Agencies - Fiscal Year 2004/2005 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail ROHNERT PARK RDA Unencumbered Undesignated $0 Total Encumbrances $0 Unencumbered Balance $2,819,940 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 430 & 450 City Hall Dr. 1.89 Mixed 12/19/2002 10/26/2005 Arbors Project Use _- - Use of the Housing Fund to Assist Mortgagors Income Adjustment Factor Requirements Completed Home $ Hope $ Non Housing Redevelopment Funds Usage Resource Needs LMIHF Deposits/Withdrawls Document Document Custodian Custodian Copy Name Date Name Phone Source Achievements I Description Page 3 of 3 12/08/05 California Redevelopment Agencies - Fiscal Year 2004/2005 Sch AIB Project Area Program Information ROHNERT PARK RDA oject Area: OUTSIDE PROJECT AREA OWNER- OCCUPIED UNITS Report Year Amount Very Low Low Moderate Total Sales: 2004/2005 $60,000 0 _ - 0 4 4 - oject Area: ROHNERT PARK PROJECT OWNER- OCCUPIED UNITS Report Year Amount Very Low Low Moderate Total Sales: 2004/2005 $242,000 0 11 3 14 Page 1 of 1 12/08/05 California Redevelopment Agencies - Fiscal Year 2004/2005 Sch D General Project Information ROHNERT PARK RDA Project Area Name: OUTSIDE PROJECT AREA Project Name: Rebuilding Together Rohnert Park - Cotati Address: 6750 Commerce BlvdRohnert Park 94928 Owner Name: Non - Profit SPECIAL NEEDS UNITS Category Sub Category Count Special Need Unit Special Needs 2 Special Need Unit Disabled (Physical) 1 Special Need Unit Elderly 1 UNIT INVENTORY - Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Non - Substantial Rehabilitation Non - Agency Owner Elderly Non- Agency Owner Non - Elderly Unit Total 1 0 0 0 0 1 1 0 0 0 0 1 2 0 0 0 0 2 PROJECT FUNDING SOURCE Funding Source Amount Redevelopment Funds $8,000 Page 1 of 5 12/08/05 California Redevelopment Agencies - Fiscal Year 2004/2005 Sch'D General Project Information ROHNERT PARK RDA Project Area Name: ROHNERT PARK PROJECT Project Name: Market Rate Second Dwelling Units Address: 406 Burton Ave & 7585 Beth Ct.Rohnert Park NON ASSISTED PROJECT UNITS Category vlow low__ mod amod New Constructions 0 0 0 2 NON ASSISTED PROJECT UNITS Category vlow low amod Substantial Rehabil 0 0 0 0 ,UNIT INVENTORY Other Provided without LMIHF Unit 94928 Building Permit Number BP2001 -0809C BP2003 -0625C Building Permit Date 02- NOV -04 13- AUG -04 Building Permit Number Building Permit Date BP2001 -0809C 02-NOV-04 BP2003 -0625C 13- AUG -04 Very Low Low Moderate Above Mod Became Total Ineligible New Construction Non- Agency Owner Non - Elderly 0 0 0 2 0 2 Unit Total 0 0 0 2 0 2 Page 3 of 5 12108/05 California Redevelopment Agencies - Fiscal Year 2004/2005 Sch D General Project Information ROHNERT PARK RDA Project Area Name: ROHNERT PARK PROJECT Project Name: Rebuilding Together Rohnert Park Address: 6750 Commerce Blvd. Rohnert Park 94928 Owner Name: Non- Profit Volunteer Org. with Board of Directors SPECIAL NEEDS UNITS Category Sub Category Count Special Need Unit Special Needs 8 Special Need Unit Disabled (Physical) 8 Special Need Unit Elderly 8 UNIT INVENTORY PROJECT FUNDING SOURCE Funding Source Amount Redevelopment Funds $32,000 Page 5 of 5 12/08/05 Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Non- Substantial Rehabilitation Non- Agency Owner Non - Elderly 6 0 0 0 0 6 Non- Agency Rental Elderly 2 0 0 0 0 2 Unit Total 8 0 0 0 0 8 PROJECT FUNDING SOURCE Funding Source Amount Redevelopment Funds $32,000 Page 5 of 5 12/08/05 t., ,sn .., ., .... .. .. vt^' Y; Y any t.t... d2 .Y' .',a✓.. '+ f, 3:. myfy 3 a .a _s,, , r fi 't ...� 4?. o-i��.'"�. '�"' �J� 5� tt 1 fret`, .�' �Lf; n�s� General "Information ` Fiscal Year 2005 Members of the Governing Body. ILauchner Middle Deborah Last Name First Name:- Initial Chairperson IMackenzie IJake State Member jBreeze [Am ie Phone Member Vidak- Martinez I IVicki Member Smith Tim Member jArmando Member I �� i Member Member Member — Member i —� Mailing Address Street 1 PL 0-1B -X 1489 Street 2 City Rohnert Par - -k —� State CA Zip 94927 -1489 Phone (70� 7) 585 -6722 Is Address Changed? General Information Officials Last Name ExecutiG,e Director, Donley FiscalO.fficer' Lipitz Secretary Donley Firm Name Last ILauchner First Deborah Middle Initial Street JP,0. Box 1489 City IRohnert Park State CA Zip Code 94927 -1489 Phone 1(707) 585 -6722 First Name Middle Phone Initial Steve (707) 588 -2223 Sandra (707) 585 -6718 Steve (707)588 -2223 Independent Auditor Macias, Gin! & Company Ernest 2175 N. California Blvd., Ste 620 Walnut Creek CA 94596- (925)465 -3908 Page 1 11/23/2005 Project Area Keport Fiscal Year 2005 Project Area Name City of Rohnert Park Redevelopment Agency l Project Area CUVi Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. 6121= M,af t" Forwarded from Prior Year ? Enter Code for Type of Project Area Report P = Standard Project Area Report L = Low and Moderate Income Housing Fund O = Other Miscellaneous Funds or Programs Does the Plan Include Tax Increment Provisions? Date Project Area was Established (MM- DD -YY) Most Recent Date Project Area -was Amended Did this Amendment Add New Territory? Most Recent Date Project Area was Merged f5s��tt �(CC P A = Administrative Fund M = Mortgage Revenue Bond Program S = Proposed (Survey) Project Area Yes 7/7/1987 Will this Project Area be Carried Forward to Next Year? Yes Established Time Limit: Repayment of Indebtedness (Year Only) Effectiveness of Plan (Year Only) New Indebtedness (Year Only) Size of Project Area in Acres Percentage of Land Vacant at the Inception of the Project Area Health and Safety Code Section 33320.1 (xx.x %) Percentage of Land Developed at the Inception of the Project Area Health and Safety Code Section 33320.1 (xx.x %) Objectives of the Project Area as Set Forth in the Project Area Plan (Enter the Appropriate Code(s) in Sequence as Shown) R = Residential I = industrial C = Commercial P = Public O = Other 2037 2027 2007 1,711 16.0 84.0, RICP I Project Area Report Page 1 11/23/2005 Aass=TfirroudK,/ Shci0ol District- Assistance; — Fiscal Year 2005 - -� Project Area Name Amounts Paid To Taxing Agencies City of Rohnert Park Redevelopment Agency Project Area Tax Increment Pass Through Detail H & S Code H & S Code H & S Code Total Section 33401 Section 33676 Section 33607 Other Payments H & S Code H & S Code Section 33445 Section 33445.5 3,114,954 1, 114,883 $4,229837 ... ..,.,...,,..._� �,_ County Cities__„ ... ...._.._.........__._ School Districts Community College District Special Districts $3 114 954 $1 114 883 $0 .$4 229 837_ $0 $0 Total Paid to Taxing _ _�___.� .., y ..... _ Agencies Net Amount to Agency _$6_395,190._.... C c� 625,0271, Gross Tax Increment �- Generated 11/23/2005 Pass - Through / School District Assisfarice Page 1 a, Ew,v ,h k�52 ±;r* ?"xy s��� `'� ,r4 J1"a{ f, t (� w ,1,s n qtr 9g �y "' ., "'.k�i ?;�"�e'� _...ti..wam.e. ........ ., Agency Long -Term Debt Fiscal Year 2005 Project Area Name (City of Rohnert Park Redevelopment Agencv 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 City /County Debt [ 1987] 4,200,000 4,200,000 Construction �- 1987 2024 $2,531,0001 i i 50,000 $2,481000 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'1 11!23/2005 -x € r s �. '{ti�9 �"5)�ry�.i, "�" �� s . s��s�,to `i'pr�3 .�!"�[•°�`� a�y�ri� a ,.+ �� °c+� �+��r�,.(5� 4t�.m�a{�('�,��`' a p}�!�.F`€3 �� tl 1�� hY�i } Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt 2005 !City of Rohnert Park Redevelopment Agency Project 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 Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Tax Allocation Bonds 13,099,895 13,099,895 Refund 88 Tabs 1991 2020 $3,459,28_6 238,995 Added current yr accretion 245,601 $3,452680 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 3 11/23/2005 u nri r k {€4M�` V. : m e .j11 3ti nc i ric rftK B i r rr } a C R.���� ,������ Fiscal Year Project Area Name Forward from Prior Year Bond Type Year of Authorization Principal Amount Authorized Principal Amount Issued Purpose of Issue Maturity Date Beginning Year Maturity Date Ending Year Agency Long -Term Debt F005 City of Rohnert Park Redevelopment Agency Project 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 Principal Amount Unmatured End of Fiscal Year Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds -2001 8,200,000 8,200,000 Refund a portion of 1991 TABs - -- 2004 2016 $7,040,000 - 131,876„ premium and deferred refunding $6,908,124 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 11'123/2005 Statement of Income and Expe nditures.o Expenditures Fiscal Year 12005 Project Area Name lCity of Rohnert Park Redevelopment Agency Proiect 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 1,609,429 623,5481 ,_,$2,232,977 69,634 158,385 $228,019 $0 $ _e_.._.._ $o. 996,892 $996,892 W 100,037 '.-11-0 0,037 $0 7 ._ _...7.,._......_,_..._.$�__a Statement of income and Expenditures- .EXpeniitures Page 1 11!2312005' 0OZL£Z4 6' { a6ed aomog.Buloueul j j.aq;o sapj!puadx3 pue awooul 10 luaw9184S _. _ .... _ .,._.._. -w ._ �,. ,....... w. w...._ ..._.. ... .........,,,.�._,..... ,..,___.._. ..., __.......M,_,...._ ses sao.ino Buloueul ja e o 0$ 0$ L89'6LC6$ 8Z9'Z6Z'4$ �96Z`Z60`£$), � ft) S d g101 � 1 (punt Bu/snoH awoou/ a ;eJapoky pue MO-7 ay; ol) �- 005 Z� ;no sja ;suejl;uawaaoul xel ;no sja ;suejL 6ul;ejadp ul saa;sueil ;uawaJoul xel ul sja ;sueal 6ui;ejado (sesn) saoinos 6uloueulj snoeuellaoslW sassy paxlj ;o ales A;unoo /l;lo wog} saouenpy ;ua6y Mojos3 puog papun ;ab o;;uawled saa {nog �u�oueulj aey ;0,- saan;ipuedx3 pue'awo�u� ;o wawa, ;e ;s spuog 6ulpun ;aa ;o spanoid ;qaQ wjal- 6uo-i 10 spaaooad aweN eaay;oaload jealk jeosid ; y,� k_. azF,n .. .��.? . .w..,a'�ur :.o-k• � a�t.�5.,�4�'ak.;+n, »cs � �!r. -rat �ta��;r -%`.r„ s�st1��$ r�e.�r_<.?!�`wYtt�':�t'�Y �R `?S'Si. 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A.R aw . r ..a.x✓,,,aa- +��GY��5 ara„� ,.'�na. �` .€ +�tia w,�.� -. .,.��.ru.w,x� Balance Sheet - Assets and Other "Debits Low /Moderate Special Fiscal Year 2005 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 3,959,856 274 3,278,039 ? �SW:'r "5 7 238 169 Cash with Fiscal Agent 1,347,954 1,772,587 -{; =� >�,, $3 120 541 Tax Increments Receivable 135,672 ll , `� >��wgt - ��..( $135,672 Accounts Receivable 2,127 ) 'M� ����' � > Accrued Interest Receivable 51,023 30,661 ''' '� ;�`` " " ��ke =� $81 684 Loans Receivable 3,193,090 °. - ..w $3,193,090 Contracts Receivable ''`' ._.w.,,..._. _ $_�_ Lease Payments Receivable Unearned Finance Charge Due from Capital Projects Fund 32,437 Due from Debt Service Fund' $0 Due from Low /Moderate —�- Income Housing Fund Due from Special " k =___ ..._ __$,. Revenue /Other Funds Balance Sheet - Assets and Other•Debits Page.1r 11/23/2005 ; Fiscal Year 2005 Liabilities and Other Credits Accounts Payable Interest Payable Tax Anticipation Notes Payable Loans Payable Other Liabilitie 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 Payabl Lease Revenue, Certificates of Participation Payable, Financing Authority Bonds All Other Long -Term Deb Total Liabilities and Other Credits Balance Sheet - Liabilitiesand 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 180,028 Balance Sheet- Liabilities and O:therC'r6dlts.,? _Page 1 <) 11/23/2005 ` $32,437.,. 32,437 $0 I z 23 451 591 p $23 451,591 s 0... ,. N f!f°'�x`Ur !m P, a�A ,,,A,. . Balance Sheet- Liabilities and O:therC'r6dlts.,? _Page 1 <) 11/23/2005 Statement of'lncome and Expenditures - Summary, Combined Transfers. In %Out Fiscal Year 2005 Operating Transfers In Tax Increment Transfers In Operating Transfers Out Tax Increment Transfers Out Statement of Income and Expenditures Sum, mary, Combined Transfers In /Out $1,742,427 m $1,935,342 $1935,342 _, Page 1 "11/23/2005 Name of Redevelopment Agency Name of Project Area Fiscal Period - Totals (Optional) Post Fiscal Period - Totals Grand Totals Available Revenues From Calculation of Available Revenues, Line 7 Net Requirement STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2005 -06 TAX YEAR Community Development Commission of the City of Rohnert Park Rohnert Park Redevopment Project Area Consolidate on this form all of the data contained on Form A and B (including supplemental pages). Form A is to include all indebtedness entered into as of June 30 of the Fiscal Year, Form B may be flied at the option of the agency, and Is to Include indebtedness entered into post June 30 of the Fiscal Year, pursuant to Health and Safety code Section 33675(c)(2). This is optional for each agency and is not a requirement for filing the Statement of Indebtedness. The Reconciliation Statement Is to include indebtedness from Form A only. Certification of Chief Financial Officer: Pursuant to Section 33675 (b) of the Health and Safety Code, I hereby certify that the above is a true and accurate Statement of Indebtedness for the above named agency. Rev..(6/3/94) Sandra M. Lipitz Finance Director Name Title September 28, 2005 Date RECONCILIATION STATEMENT.- CHANGES IN INDEBTEDNESS Page 2 of 2 FILED FOR THE 2005 -06 TAX YEAR Name of Redevelopment Agency Community Development Commission of the City of Rohnert Park Name of Project Area Rohnert Park Redevopment Project Area Tax Year 2004 -05 Reconciliation Dates: From July 1, 2004 to June 30, 2005 Note: This form is to reconcile the previous Statement of Indebtedness to the current one being filed. However, since the reconciliation period is limited by law to a July 1 - June 30 fiscal year period, only those items included on the S01 Form A Is to be included on this document. To assist in following each item of indebtedness from one SOI to the next, use page and line number references from each SOI that the item of indebtedness is listed on. If the Indebtedness Is new to this fiscal year, enter "new" in the "Prior Yr" page and line columns. Column F must equal the current SOI, Form A Total Outstanding Debt column. (H) Reimburse General Fund for 2004 -05 administration costs (1) Arbitrage rebate calculation service for outstanding debt (J) Chamber of Commerce funding for 4th Quarter (K) Sonoma County Tourism funding (L) Capital Improvement Fund for Municipal Golf Course - percentage of revenue (M) Various consulting services (N) Stadium Lands Salvage Project, to be paid from tax increment (0) BARC Re -roof Project, to be paid from tax increment (P) Westside Public Safety Facility Project, to be paid from tax increment Rev. (6/3/94) A B C D E F Debt Identification: Outstanding Debt Adjustments Amounts Paid Against Remaining SO' and line: All Beginning Increases Decreases Indebtedness From: Balance Prior Yr Current Yr Brief Description Balances (Explain) (Explain) Tax Increment Other Funds (A +B- C -D -E) P 1, Line O P 1, Line R 2004 -05 Admin Cost Reimbursement 0 451,000 (H) 225,500 225,500 P 1, Line P P 1, Line S Arbitrage Rebate Services 0 900 (1) 1 900 0 P 1, Line Q P 1, Line T Chamber of Commerce Funding 0 20,000 (J) 20,000 .0 P 1, Line R P 1, Line u Sonoma County Tourism Funding 0 30,888 (K) 30,888 0 P 1, Line v Foxtail Capital Improvement Fund 0 13,506 (L) 13,506 0 P 1, Line S P 1, Line w Contractual Services 0 38,740 (M) 38,740 0 P 1, Line X Stadium Lands Salvage Project 0 410,000 (N) 54,526 355,474 P 1, Line Y BARC Re -roof Project 0 635,000 (0) 27,237 607,763 P 1, Line z' Westside Public Safety Facility Project 0 1,050,000 (P) 4,242 1,045,758 Subtotals 0 2,650,034 0 415,539 0 2,234,495 Subtotal From Page 1 85,643,654 2,124,913 3,024,843 7,694,103 165,149 76,884,472 Grar-1 Totals 85,643,654 4,774,947 3,024,843 8,109,641 165,149 79,118,968 Note: This form is to reconcile the previous Statement of Indebtedness to the current one being filed. However, since the reconciliation period is limited by law to a July 1 - June 30 fiscal year period, only those items included on the S01 Form A Is to be included on this document. To assist in following each item of indebtedness from one SOI to the next, use page and line number references from each SOI that the item of indebtedness is listed on. If the Indebtedness Is new to this fiscal year, enter "new" in the "Prior Yr" page and line columns. Column F must equal the current SOI, Form A Total Outstanding Debt column. (H) Reimburse General Fund for 2004 -05 administration costs (1) Arbitrage rebate calculation service for outstanding debt (J) Chamber of Commerce funding for 4th Quarter (K) Sonoma County Tourism funding (L) Capital Improvement Fund for Municipal Golf Course - percentage of revenue (M) Various consulting services (N) Stadium Lands Salvage Project, to be paid from tax increment (0) BARC Re -roof Project, to be paid from tax increment (P) Westside Public Safety Facility Project, to be paid from tax increment Rev. (6/3/94) Agency Name Project Area Tax Year Reconciliation Dates NOTES CAL JLATION OF AVAILABLE REVENU, Community Development Commission of the City of Rohnert Park . Rohnert Park Redevopment Project Area 2005 -06 From July 1, 2004 to June 30, 2005 1. Beginning Balance, Available Revenues (See Instructions) 2. Tax Increment Received - Gross All Tax Increment Revenues, to include any Tax Increment passed through to other local taxing agencies. 3. All other Available Revenues Received (See Instructions) 4. Revenues from any other source, included in Column E of the Reconciliation Statement, but not included in (1 - 3) above. 5. Sum of Lines 1 through 4 6. Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 7. Available Revenues, End of Year (5 - 6) FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE, LINE 4 $4,939,480 8,796,249 104,525 151,109 $13,991,363 8,274,790 $5,716,573 Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set -aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at year end. Item 4, above: This represents any payments from any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous SOI included a Disposition Development Agreement (DDA) which was fully satisfied with these bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the "other" column (Col E), but with funds that were neither Tax Increment, nor "Available Revenues" as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues." Rev. (613194) I-01 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 Year Ended June 30, 2005 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK FOR THE YEAR ENDED JUNE 30, 2005 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: Statementof Net Assets ................................................. ...............I...I....I...... 9 Statementof Activities ................................................. ............................... 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 = Governmental Activities .............................................. .............................14 Notes to Basic Financial Statements ....................................... ..........................15 -24 Other Report and Information: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards ................ 25 -26 Status of Prior Year Findings and Recommendations ......................... .............................27 Statistical Information (Unaudited): Assessed Valuations and Incremental Valuations .................... .............................28 Housing Set -Aside Revenues ..................................... ............................... 29 -30 Board of Directors of the Community Development Commission of the City of Rohnert Park, California 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 year ended June 30, 2005, 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 opinions. Iii 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, 2005, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated ;5�> on our consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts 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. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005 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, 2005. Readers are encouraged to consider the following information in conjunction with the Commission's basic financial statements. FINANCIAL HIGHLIGHTS • The liabilities of the Commission exceeded its assets by $285,905, at the government -wide level. Of this amount, $7,914,516 is restricted for housing projects and debt service and the remaining deficit relates to capital assets or is unrestricted. • The Commission's governmental funds reported ending fund balances of $12,863,280, an increase of $462,216, as compared to the prior year, due principally to the increase in tax increment revenues of X10 625., 027 exceeding total expenditures of $9,391 997_for both the redevelopment and the housing 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 reported 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 of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Total liabilities increased by $1,096,649_during the fiscal year ended June 30, 2005. Current liabilities increased primarily due to the $770.895 that is due to the City of Rohnert Park. as well as an increase in interest payable of - - - Deleted: payments due to the City of $274,826. The increase in the noncurrent liabilities is due to the increase in fiscal charges, partially offset by Rohnert Park of $770,895, scheduled principal payments on long -term debt. The Commission's net assets decreased by $,7.80,05.3. during the fiscal year ended June 30, 2005_ Net _ _ _ Deleted: zss,9o5 —� assets invested in capital assets, net of related debt decreased by V993,066 as a result of current year depreciation, plus scheduled principal payments made on debt used to acquire capital assets, less acquisition of additional capital assets in the current year with the Commission's resources. Restricted net assets increased primarily do to the increase in the Housing Projects reserve, offset by a small decrease in the Housing loans and notes receivable. Unrestricted net assets increased as a result of the residual effect of the operations of the Commission after adjusting for changes in the restricted net assets and invested in capital assets, net of related debt categories. The following table presents the change in net assets of governmental activities for the year ended June 30, 2005 and June 30, 2004;_ - _ - _ _ _ _ _ _ - - Deleted: , as restated As the information above indicates, the change in net assets decreased by $780,053 primarily due to the increase in expenses of $3,684,124, offset by the increase in revenues of $1,585,241. The increase in community development expenditures of $2,704,116 is due primarily to the increase in the tax increment pass - through, as well as a lump sum payment to the Cotati - Rohnert Park School District for their share of prior year's tax increment. The increase in housing of $239,497 is due to funds .provided to non -profit organizations for affordable housing. The increase in interest expense 90740,511 is due to a payment on the 1991 Tax Allocation Refunding Bond (no payment was due last year). 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, liabilities exceeded assets by $285,905, with a negative change of $780,053 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 has grown steadily over the years as new commercial and multi - family properties are developed in the redevelopment area, which increased the assessed valuation. Investment income reflects interest earnings on idle cash and bond proceeds. 2005 2004 $ Change % Change General revenues: Taxes $10,626,793 $ 9,310,566 $ 1,316,227 14.14% Investment and rental income 285,855 243,639 42,216 1733% Other 250,000 23202 226,798 977.49% Total general revenues 11,162,648 9,577,407 1,585241 1655% Expenses: Community development 8,030,496 5,326,380 2,704,116 50.77% Housing 1,826,617 1,587,120 239,497 15.09% Interest 2,085,588 1,345,077 740,511 55.05% Total expenses 11,942,701 8258,577 3,684,124 44.61% Change in net assets (780,053) 1,318,830 (2,098,883) - 159.15% Net assets, beginning of year 494,148 (824,682) 1,318,830 -159.92% Net assets, end of year $ (285,905) $ 494,148 $ (780,053) - 157.86% As the information above indicates, the change in net assets decreased by $780,053 primarily due to the increase in expenses of $3,684,124, offset by the increase in revenues of $1,585,241. The increase in community development expenditures of $2,704,116 is due primarily to the increase in the tax increment pass - through, as well as a lump sum payment to the Cotati - Rohnert Park School District for their share of prior year's tax increment. The increase in housing of $239,497 is due to funds .provided to non -profit organizations for affordable housing. The increase in interest expense 90740,511 is due to a payment on the 1991 Tax Allocation Refunding Bond (no payment was due last year). 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, liabilities exceeded assets by $285,905, with a negative change of $780,053 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 has grown steadily over the years as new commercial and multi - family properties are developed in the redevelopment area, which increased the assessed valuation. Investment income reflects interest earnings on idle cash and bond proceeds. The following documents the change in fund balance and provides a comparison of revenues and expenditures for the years ending June 30, 2005 and 2004: Deleted- --------------------- ItySomaperuuna he significant changes in the Commission's fund balance are due to: (1) the incremental prope rty ?° taxes increased $507,656 due to an increase in the assessed valuation of the redevelopment area as a re�Lirfredlartt,ectrcrety�x� result of new growth; (2) the property tax pass - through increased $1,594,000; (3) contractual expense suwcrc�syer,r?!m I increased by $705,136 as the Commission paid the School District $798,430 for their share of prior_ _ _ . Deleted:. year increment; (4) capital outlay expenditures decreased by $506,385 as the Commission spent very little on capital projects during the fiscal year; (4) debt service, net of proceeds, decreased by $394,472 due to the refunding of the Certificates of Participation in the prior year. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The Commission's capital assets as of June 30, 2005 were $18,543,269, net of accumulated depreciation. These assets include land, buildings, improvements, construction in progress, and equipment. The Commission expended $27,237 during the year on the preliminary design work for a roof replacement on a recreation center, $54,525 6 demolition costs to clear the _ _ . Deleted: 6 —� stadium lands, and $4,769 on two other capital project. Additional information on the Commission's capital assets can be found in Note 5 to the basic financial statements. 7 2005 2004 $ Change % Change Revenues: Property taxes $ 10,625,027 $ 10,117 ,371 $ 507,656 5.02% Interest & rentals 285,855 243,639 42216 17.33% Other 250,000 23202 226,798 977.49% Total revenues 11,160,882 10,384212 776,670 7.48% Expenditures General government 8,322,170 5,711,868 2,610,302 45.70% Capital outlay 86,531 592,916 (506,385) -85.41% Debt service 1,584,459 8,017 ,931 (6,433,472) -8024% Other expenditures 705,506 445,085 260,421 58-51% Total expenditures 10,698,666 14,767,800 (4,069,134) -2755% Excess (deficiency) of revenues over (under) expenditures 462216 (4,383,588) 4,845,804 - 11054% Proceeds from borrowing 6,039,000 (6,039,000) 100.00% Increase in fund balance $ 462,216 $ 1,655,412 $ (1,193,196) - 72.08% Deleted- --------------------- ItySomaperuuna he significant changes in the Commission's fund balance are due to: (1) the incremental prope rty ?° taxes increased $507,656 due to an increase in the assessed valuation of the redevelopment area as a re�Lirfredlartt,ectrcrety�x� result of new growth; (2) the property tax pass - through increased $1,594,000; (3) contractual expense suwcrc�syer,r?!m I increased by $705,136 as the Commission paid the School District $798,430 for their share of prior_ _ _ . Deleted:. year increment; (4) capital outlay expenditures decreased by $506,385 as the Commission spent very little on capital projects during the fiscal year; (4) debt service, net of proceeds, decreased by $394,472 due to the refunding of the Certificates of Participation in the prior year. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The Commission's capital assets as of June 30, 2005 were $18,543,269, net of accumulated depreciation. These assets include land, buildings, improvements, construction in progress, and equipment. The Commission expended $27,237 during the year on the preliminary design work for a roof replacement on a recreation center, $54,525 6 demolition costs to clear the _ _ . Deleted: 6 —� stadium lands, and $4,769 on two other capital project. Additional information on the Commission's capital assets can be found in Note 5 to the basic financial statements. 7 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK STATEMENT OF NET ASSETS GOVERNMENTAL ACTIVITIES JUNE 30, 2005 ASSETS Cash and investments $ 7,237,895 Receivables 217,356 Restricted cash and investments 3,120,815 Deferred charges 468,383 Prepaid Expenses 63,400 Loans and notes receivable 3,195,217 Capital assets: 33,132,240 Nondepreciable assets 808,816 Depreciable assets, net of accumulated depreciation 17,734,453 Total assets 32,846,335 LIABILITIES Accounts payable 180,028 Due to the City of Rohnert Park 770,895 Interest payable 571,657 Noncurrent liabilities: Due within one year 832,420 Due in more than one year 30,777,240 Total liabilities 33,132,240 NET ASSETS Invested in capital assets, net of related debt (92,711) Restricted for: Housing projects 6,141,655 Debt service 1,772,861 Unrestricted (8,107,710) Total net assets $ (285,905) See accompanying notes to basic financial statements. I COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2005 ASSETS Cash and investments Receivables: Taxes Accrued interest Due from other funds Due from the City of Rohnert Park Prepaid Expenses Restricted cash and investments Loans and notes receivable Total assets LIABILITIES Accounts payable Due to other funds Due to City of Rohnert Park Deferred revenue Total liabilities FUND BALANCES Reserved for: Loans and notes receivable Housing projects Debt service Unreserved Total fund balances Total liabilities and fund balances Capital Projects Funds Low /Moderate Income Redevelopment Housing $ 3,959,856 $ 3,278,039 Debt Service Fund Total $ - $ 7,237,895 135,672 - - 135,672 51,023 30,661 - 81,684 - 32,437 - 32,437 63,400 63,400 1,347,954 - 1,772,861 3,120,815 2,127 3,193,090 - 3,195,217 $ 5,496,632 $ 6,597,627 $ 1,772,861 $ 13,867,120 $ 18,909 $ 161,119 $ - $ 180,028 32,437 - 32,437 494,395 276,500 - 770,895 - 20,480 - 20,480 545,741 458,099 - 1,003,840 2,127 3,193,090 - 3,195,217 - 2,946,438 - 2,946,438 - - 1,772,861 1,772,861 4,948,764 - - 4,948,764 4,950,891 6,139,528 1,772,861 12,863,280 $ 5,496,632 $ 6,597,627 $ 1,772,861 $ 13,867,120 See accompanying notes to basic financial statements. 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2005 See accompanying notes to basic financial statements. 13 Capital Projects Funds Low/Moderate Debt Income Service Redevelopment Housing Fund Total REVENUES Taxes $ 10,625,027 $ - $ - $ 10,625,027 Investment and rental income 95,142 164,226 26,487 285,855 Other 250,000 - 250,000 Total revenues 10,970,169 164,226 26,487 11,160,882 EXPENDITURES Current: General government 6,500,344 1,821,826 - 8,322,170 Payments to the City of Rohnert Park 700,715 4,791 705,506 Capital outlay 86,531 - 86,531 Debt service: Principal 50,000 - 560,601 610,601 Interest and fiscal charges 227,790 - 746,068 973,858 Total expenditures 7,565,380 1,826,617 1,306,669 10,698,666 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 3,404,789 (1,662,391) (1,280,182) 462,216 OTHER FINANCING SOURCES (USES) Transfers in 119,922 2,027,576 1,292,627 3,440,125 Transfers out (3,136,928) (303,197) - (3,440,125) Total other financing sources (uses) (3,017,006) 1,724,379 1,292,627 - NET CHANGE IN FUND BALANCES 387,783 61,988 12,445 462,216 FUND BALANCES, BEGINNING OF YEAR 4,563,108 6,077,540 1,760,416 12,401,064 FUND BALANCES, END OF YEAR $ 4,950,891 $ 6,139,528 $ .1,772,861 $ 12,863,280 See accompanying notes to basic financial statements. 13 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2005 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. Private - sector standards of accounting and financial reporting issued on or before November 30, 1989, generally are followed in the government -wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The Commission has elected not to follow subsequent private- sector guidance. 15 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2005 NOTE 2 - SIGNIFICANT ACCOUN'T'ING POLICIES (Continued) e. 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 $5,000 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 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. f. Property Tax Levy, Collection and Maximum Rates The State Constitution Article XIII 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 XIII 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 July 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. 17 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2005 NOTE 3 - CASH AND INVESTMENTS (Continued) Custodial Credit Risk As of June 30, 2005 none of the Commission's investments were exposed to custodial credit risk. A summary of the Commission's cash equivalents and investments at June 30, 2005 is shown below. Total cash and investments $ 10,358,710 The Commissions cash and investments consists of the following at June 30, 2005: Unrestricted cash and investments Restricted cash and investments $ 7,237,895 3,120,815 $ 10 38.710 Interest Rate Risk 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. 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. Of the investments held at June 30, 2005, 80.4% are invested in the State's Local Agency Investment Fund and 17% are invested in Blackrock Provident Institutional Funds. NOTE 4 — INTERFUND TRANSACTIONS The composition of interfund receivables and payables for the year ended June 30, 2005 follows: Fund reporting receivable Fund reporting payable Amount Low /Moderate Income Housing Capital Projects Fund Redevelopment Capital Projects Fund $ 32,437 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. 19 Maturities Investment type Fair value Less than 1 year State treasurer local agency investment fund $ 7,341,791 $ 7,341,791 County of Sonoma Treasurer's investment pool 19,331 19,331 Money market funds 1,772,861 1,772,861 Total investments 9,133,983 $ 9,133,983 Demand deposits 1,224,727 Total cash and investments $ 10,358,710 The Commissions cash and investments consists of the following at June 30, 2005: Unrestricted cash and investments Restricted cash and investments $ 7,237,895 3,120,815 $ 10 38.710 Interest Rate Risk 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. 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. Of the investments held at June 30, 2005, 80.4% are invested in the State's Local Agency Investment Fund and 17% are invested in Blackrock Provident Institutional Funds. NOTE 4 — INTERFUND TRANSACTIONS The composition of interfund receivables and payables for the year ended June 30, 2005 follows: Fund reporting receivable Fund reporting payable Amount Low /Moderate Income Housing Capital Projects Fund Redevelopment Capital Projects Fund $ 32,437 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. 19 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2005 NOTE 5 — CAPITAL ASSETS (Continued) Construction in progress for governmental activities at June 30, 2005 is made up of the Southwest Boulevard Fire Station Renovation project with $85,000 authorized in expenditures, of which $27,812 has been expended to date with a balance of $57,188 remaining. During the year, the Commission began three additional projects, the Stadium Lands Salvage Project, the Burton Avenue Recreation Center Roof Replacement (BARC) and the Westside Public Safety Facility. The Stadium Lands project spent $54,525 to clear the stadium for future development. The total budget for this project is $375,000. The BARC Roof Replacement spent $27,237 for a new roof on the recreation center. The total budget authorized is $244,750. The Westside Public Safety Facility project spent $4,242 for the preliminary engineering work to build a Westside station. The total budget authorized is $5,140,000. There were no Commission projects completed during the fiscal year. Depreciation expense in the amount of $999,629 was charged to the community development function. NOTE 6 - RELATED PARTY TRANSACTIONS Community Center Lease The Commission and the City entered into a Ground Lease Agreement (Lease Agreement) whereby the Commission agreed to pay the City $210,000 annually. 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. Sate of Land In the fiscal year ended June 30, 2003, the City sold a building with land that had an original book value of approximately $630,000 to the Commission for approximately $1,335,000. The building acquisition included the purchase of land for $695,000 and the building for $640,000. For the City's reporting purposes, the sale transaction was treated as a transfer of cash between the City and the Commission with no change to capital assets since the building will continue to be used in the City's governmental operations. The Commission reported the purchase of the building and land at the purchase price for its stand -alone financial statements resulting in a permanent difference in the capital. assets of the Commission between its stand -alone reports and in the City's financial statements. The basis of land and building associated with this sale is reported as follows: City's financial statements $ 630,000 Permanent difference from sale of land value and building, stepped up basis 705,000 Commission's stand -alone financial statements $ 1,335,000 P41 NOTE 8 - COMMITMENTS & CONTINGENCIES The Commission entered into pre- development agreement with Burbank Housing Development Corporation (Burbank Housing) for a commitment of $1,115,000 for the pre - development of approximately 54 affordable housing units. As of June 30, 2005, Burbank Housing had requested $674,954 of the pre - development amount. Burbank Housing has also agreed to purchase the site from the Commission for $1,335,000. The site includes the public safety parking lot currently owned by the City. The City will deed the parking lot to the Commission, who will in turn include this parcel in the site being sold to Burbank. In exchange for the parking lot, Burbank Housing will construct a new parking lot and security gate on an adjacent grassy area owned by the City. The Commission will also assist Burbank Housing with the financing of the project through a non- recourse loan in the amount of $3,925,000. The Commission has also entered into a pre - development agreement with Committee on the Shelterless (COTS) Commons to construct affordable housing units on City owned property. The housing units are to be permanent support housing for individuals and families in need of assistance. The Commission will purchase the land from the City at an estimated purchase price of $1,000,000 to be paid over a three -year period. The pre - development tasks for all three agreements include, but not limited to, site environmental studies, site engineering reports, architectural plans and specifications, engineering plans and specifications, environmental mitigation and public infrastructure improvements. The Commission also agreed to assist Caritas Affordable Housing, a nonprofit, with the purchase of Valley Village mobile home park. The bond issuer will be Independent Cities Lease Finance Authority. The assistance will be in the form of a forgivable loan for $1.2 million. The Commission will not be obligated for the debt and will not be a party to the issuance. 23 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2005 NOTE 7 - LONG -TERM DEBT (Continued) Future debt service requirements (principal and interest) at June 30, 2005 were as follows: Tax Allocation Bonds Loan from the City Loan from RPFA year ending June 30: Principal Accreted interest interest Principal ]merest Principal Interest 2006 611,415 339,399 747,202 54,000 223,290 207,000 235,963 2007 611,869 311,800 747,014 59,000 218,430 211,500 230,732 2008 603,415 291,766 749,996 64,000 213,120 216,000 225,388 2009 613,993 276,179 742,855 70,000 207,360 220,500 219,380 2010 617,092 256,101 737,066 76,000 201,060 229,500 212,516 2011 -2015 3,540,569 883,663 3,234,076 497,000 889,380 1,269,000 933,983 2016-2020 4,933,748 298,717 2,566,108 764,000 621,630 1,548,000 646,096 2021 -2025 3,135,356 730,472 5,615,119 897,000 210,510 1,935,000 238,334 2026 -2030 2,011,545 802,088 6,763,455 - - - 2031 -2035 1,536,556 618,073 7,238,444 2036 -2040 260,389 299,262 1,494,611 $ 18,475,947 $ 5,107,520 $ 30,635.946 $ 2,481,000 $ 2,784,780 $ 5,836,500 $ 2,942,392 NOTE 8 - COMMITMENTS & CONTINGENCIES The Commission entered into pre- development agreement with Burbank Housing Development Corporation (Burbank Housing) for a commitment of $1,115,000 for the pre - development of approximately 54 affordable housing units. As of June 30, 2005, Burbank Housing had requested $674,954 of the pre - development amount. Burbank Housing has also agreed to purchase the site from the Commission for $1,335,000. The site includes the public safety parking lot currently owned by the City. The City will deed the parking lot to the Commission, who will in turn include this parcel in the site being sold to Burbank. In exchange for the parking lot, Burbank Housing will construct a new parking lot and security gate on an adjacent grassy area owned by the City. The Commission will also assist Burbank Housing with the financing of the project through a non- recourse loan in the amount of $3,925,000. The Commission has also entered into a pre - development agreement with Committee on the Shelterless (COTS) Commons to construct affordable housing units on City owned property. The housing units are to be permanent support housing for individuals and families in need of assistance. The Commission will purchase the land from the City at an estimated purchase price of $1,000,000 to be paid over a three -year period. The pre - development tasks for all three agreements include, but not limited to, site environmental studies, site engineering reports, architectural plans and specifications, engineering plans and specifications, environmental mitigation and public infrastructure improvements. The Commission also agreed to assist Caritas Affordable Housing, a nonprofit, with the purchase of Valley Village mobile home park. The bond issuer will be Independent Cities Lease Finance Authority. The assistance will be in the form of a forgivable loan for $1.2 million. The Commission will not be obligated for the debt and will not be a party to the issuance. 23 OTHER REPORT AND INFORMATION BASIC FINANCIAL STATEMENTS Board of Directors of the Community Development Commission of the City of Rohnert Park, California INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING 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, 2005, which collectively comprise the Commission's basic financial statement and have issued our report thereon dated fieptembz 17;,2004. 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 in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. 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 26 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2005 This section presents prior year findings that continue to result in current year compliance exceptions. DHCD Approved Housing Element in General Plan Finding: The City has not received approval from the State Department of Housing and Community Development (DHCD) indicating that the housing element of the City's General PIan substantially complies with state law. State Health and Safety Code Section 33302 requires the City to have a General Plan which is in compliance with Government Code Section 65300 et. seq., to include a housing element that substantially complies with state law. The City is in the process of completing anew General Plan, which includes a housing element. The City has submitted a draft of the housing element to the DHCD for review. DHCD has responded to the draft housing element with recommended changes. The City is in the process of incorporating the recommended changes into the housing element. Recommendation: The City should complete the General Plan and obtain the required approval of the housing element to comply with State regulations. Status: The Commission submitted a draft of the housing element to the DHCD, which was approved on December 3, 2001. Five -Year Implementation Plan Finding: Redevelopment agencies must prepare an implementation plan in accordance with Health & Safety Code Sections 33490 and 33413(b), for each project area every five years and have the first plan adopted by December 31, 1994. The Community Development Commission of the City of Rohnert Park (the Commission) adopted its first plan on December 14, 1994. The Commission's second implementation plan was due on December 14, 1999. As of September 27, 2002, the Commission has not adopted the second implementation plan in order to comply with the Health & Safety Code. Recommendation: The Commission should adopt its five -year implementation plan. Status: The Five -Year Implementation Plan was adopted by the Commission on June 24, 2003. 28 STATISTICAL INFORMATION (UNAUDITED) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK ASSESSED VALUATIONS AND INCREMENTAL VALUATIONS FOR THE TEN YEARS ENDED JUNE 30, 2005 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Assessed Valuation 928,948,311 925,410,010 971,609,242 980,307,232 1,027,081,973 1,124,854,200 1,230,538,337 1,329,427,086 1,433,592,447 1,507,607,335 28 Less: Base Year (489,927,900) (489,927,900) (489,927,900) (489,927,900) (489,927,900) (489,927,900) (489,927,900) (489,927,900) (489,927,900) (489,927,900) Valuation 439,020,411 435,482,110 481,681,342 490,379,332 537,154,073 634,926,300 740,610,437 839,499,186 943,664,547 1,017,679,435 COMMUNITY DEVELOPMENT COMMISSION OF THE CTPY OF ROHNERT PARK WORKSHEET SUPPORTING STATEMENT OF ACTIVITIES FOR THE YEAR ENDED NNE 30 2004 Total lartrnt R.- Iezrfm4 Cover®ental Fmd+ CFA LTD Debt Irt® E.'- R­-, EBmfaatlom T-1 REVENUES: 1,766 10,626,793 Taxes 10,625,027 285,855 Interest end rentals 285,855 250.000 Intergovern MA 250,000 Total Re,.- 11 ,160,882 - - 1,766 10 912,648 EXPENDITURES: CLrrent: 8,322,170 General government 8,322,170 - 503 ne Paywr,t to the city of rohn park 705,506 (202,500) '006 Other 999,629 Depreciation - 999,629 32,308 32,308 Amortization Capital outlay - 86,531 (86,531) Debt -ice: Principal rethemed 610,601 (610,601) _ 2,085,588 Iota and fiscal charges 973,858 - 796,468 39,986 275,276 Costs of bortowiog 10,698 666 913 098 (16,633) 72,294 275,276 - _ 11,942,701 Total Expenditures EXCESS(DEFICIENCY)OFREVENUES 098) 16 633 (72,294) (275,276) 1,766 - (1,030,053) OVER (UNDER) EXPENDITURES 462,216 (913 OTHER FINANCING SOURCES (USES): _ Proceeds from borrowing (3,440,125) - T-fers in 3,440,125 3.440. 125 _ Transfers -t (3,440,125) - Capita com.uliom Toml Other Fi -acing Sources (Uses) - - - (780,053) NET CHANGE IN FUND BALANCES 462,216 (913,098) 16,633 (72,294) (275,276) 1,766 - -FUND BALANCES, BEGINNING OF THE YEAR 12,401,064 19,456,367 (31,917,600) 831,984 (296,381) 18,714 494,148 PRIOR PERIOD ADJUSTMENT FUND BALANCES, AS RESTATED 12,401,064 19,456,367 (31,917,600) 831,984 (296,381) 18,714 494.148 FUND BALANCES, END OF YEAR E 12,863,280 E 18,543,269 E (31,900,967) E 759,690 E (571 657) E 20,480 S E (285.905) WORKSHEET =GIS _ 0.00 - 0.00 - 0.00 - .