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Home My WebLink About16 2003-04 ANNUAL RPT 12-06-04AGENDA REPORT MEETING DATE: DECEMBER 6, 2004 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: 2003-2004 ANNUAL REPORT SUMMARY Redevelopment Law requires that the Redevelopment Agency submit to the legislative body an annual report of housing activity for the preceding fiscal year. RECOMMENDATION It is recommended the Tustin City Council take the following action: Receive and File the Annual Report of Housing Activity for FY 2003-2004. FISCAL IMPACT There is no fiscal impact associated with this action. BACKGROUND/DISCUSSION California Health and Safety Code Section 33080.1 requires the preparation and filing of an annual report of housing activity by a redevelopment agency with its legislative body. A copy of this report must also be filed with the State Controller and with the State Department of Housing and Community Development within six months after the end of the Agency's fiscal year. The annual report must contain the following information: An independent financial audit of the previous fiscal year. The audit must include an opinion of the Agency's compliance with laws, regulations and administrative requirements governing activities of the Agency. 2. A fiscal statement containing the following information: a. The amount of outstanding indebtedness of the Agency. The amount of tax increment property tax revenue generated. C. The amount of tax increment revenues paid to taxing agencies pursuant to Section 33401. City Council Report Annual Report for 2003-2004 December 6, 2004 Page 2 d. The required Annual Report of Financial Transactions to the State Controller's Office. 3. Any other fiscal information the Agency believes is useful. 4. A description of the Agency's activities affecting housing and displacement containing the following information: a. The total number of households displaced or moved from their dwelling units as part of a redevelopment project during 2003-2004. b. An estimate of the total number of households that will be displaced during 2004-2005. C. The total number of dwelling units assisted housing persons and families of low -to moderate income as a part of a redevelopment project. d. The total number of Agency assisted dwelling units constructed, substantially rehabilitated, acquired or subsidized during 2003-2004 for occupancy at affordable cost by persons and families of low to moderate income. e. The status and use of the Low to Moderate Income Housing Fund, created pursuant to Section 33334.3. f. Any other information the Agency believes useful to explain its housing program. g. Any excess surplus funds which have accumulated in the Low to Moderate Income Housing Funds. Excess surplus funds are defined as any unexpended or unencumbered amount in the Housing Fund that exceeds the greater of $1,000,000 or the aggregate amount deposited in the fund in the preceding four (4) fiscal years. Monies are deemed encumbered if committed by a legally enforceable contract or agreement. 3. Any other information the Agency believes is useful to explain its housing program. City Council Report Annual Report for 2003-2004 December 6, 2004 Page 3 ANALYSIS Since there is only one City Council meeting scheduled in December, 2004, it is necessary to provide the Agency's audit materials in draft form. While the materials are assumed to be substantially complete, The Finance Director and independent auditor may need to make non substantial adjustments the final numbers prior to submitting to the State. The following responds to specific information required by the State. 1. Independent Financial Audit and Compliance Audit: A copy of the draft independent financial audit and compliance audit for 2003- 2004 is attached. 2. Fiscal statement: a. The amount of outstanding bonded indebtedness of the Redevelopment Agency, as of June 30, 2004, was reported to be $21,356,766. In addition, the Agency has outstanding loan obligations of $2,776,042 to the Town Center Housing Fund Deficit and $3,000,000 to the South Central City loan. b. The amount of gross tax increment property tax revenue received by the Redevelopment Agency in 2003-2004 was $5,867,056. C. The amount of tax increment paid to taxing agencies pursuant to Section 33401 was $2,000. d. The required annual report of financial transactions to the State Controller will be submitted with all final reporting documentation, forms and the final audit report prior to December 31, 2004. 3. There is no other fiscal information, which the Agency believes to be useful at the present time. 4. Activities Affecting Housing and Displacement: a. The total number of households displaced or moved as part of the Town Center and South Central Redevelopment projects during 2003-2004 was 23. b. The total number of households estimated to be displaced as part of the Town Center or South Central project areas in 2004-2005 is 9. City Council Report Annual Report for 2003-2004 December 6, 2004 Page 4 C. The total number of low to moderate -income dwelling units demolished or removed from the housing stock in 2003-2004 was 0. d. The total number of Agency assisted dwelling units which were constructed, rehabilitated, acquired or subsidized in 2003-2004 for occupancy at affordable cost by persons and families of low to moderate income was 0. For 2003-2004 the Redevelopment Agency entered a Disposition and Development Agreement with Olson Urban Housing LLC, regarding the construction of 63 ownership housing units located adjacent to the South Central Redevelopment Project area including 4 units to be restricted for very low-income households and 6 units to be restricted for moderate - income households. This project will be undertaken in furtherance of Planning Study for Housing Opportunities in the South Central Project Area, the City-wide Comprehensive Affordable Housing Strategy and the Second Five -Year Housing Implementation Plan completed during the 1999-2000 reporting period. In addition, the Agency will be continuing with ongoing programs to provide additional opportunities for affordable housing. These programs include the Mortgage Credit Certificate Program and rehabilitation of dwelling units through the Housing Rehabilitation Program. e. As of June 30, 2004, the Agency's low to moderate -income housing set- aside fund balance for the South Central Project Area was $6,045,935, which after adjustment for assets (loans receivable and land held for resale) and liabilities results in an available funds balance of $4,121,996. The available funds balance does not reflect other Agency approved encumbrances as reported on the attached HCD Report Schedule C. f. As of June 30, 2004, the Agency's low to moderate -income housing set- aside fund balance for the Town Center Project Area was $3,239,400, which after adjustment for assets (loans receivable and land held for resale) and liabilities results in an available funds balance of $2,954,551. The available funds balance does not reflect other Agency approved encumbrances as reported on the attached HCD Report Schedule C. g. As of July 1, 2004, there is no excess surplus in the Housing Set -Aside Fund for the combined Project Areas. City Council Report Annual Report for 2003-2004 December 6, 2004 Page 5 Agency staff will be available to respond to any questions at the City Council's meeting of December 6, 2004. As a result of the City Council's action, all final reporting documentation and forms will be filed with the State Controller and State Department of Housing and Community Development prior to December 31, 2004. Christine A. Shinglet Assistant City Manager Attachments: Jidl Draughon Redevelopment Program Manager HCD Report of Redevelopment Agency Housing Activities for FY Ending June 30, 2004 Draft June 30, 2004 Independent Financial Audit and Compliance Audit HCD REPORT OF REDEVELOPMENT AGENCY HOUSING ACTIVITY FOR FY ENDING: June / 30 / 2004 Agency Name and Address: - County of Jurisdiction: Tustin Redevelopment Agency _ Orange 300 Centennial Way Tustin, CA 92780 Health & Safety Code Section 33080.1 requires agencies to annually report on their _Low & Moderate Income Housing Fund and housine activities for the Department of Housing and Community Development (HCD) to annually report on agencies' activities in accordance with Section 33080.6. Section 33080.3 specifies agencies must send this form HCD Schedules and an Audit report to the State Controller Please answer each auestion below. Youranswers determine which HCD SCHEDULES must be completed in order for the agency to fulfill the statutory requirement to report LMIHF housing activity and fund balances for the reporting period: 1. Check one of the items below to identify the Agency's status at the end of the reporting period: ® New (Agency formation occurred during reporting year. No financial transactions were completed). ® Active (Financial and/or housing transactions occurred during the reporting year) ❑ Inactive (No financial and/or housing transactions occurred during the reporting year). ONLY COMPLETE ITEM 7 ❑ Dismantled (Agency adopted an ordinance to dissolve itself). ONLY COMPLETE ITEM 7 2. How many adopted nroiect areas did the agency have during the reporting period? 3 How many project areas were merged during the reporting period? _0 - If the agency has one or more adopted project areas complete SCHEDULE HCD-A for each project area. If the agency has no adopted project areas DO NOT complete SCHEDULE HCD A. 3. Within an area outside of any adopted redevelopment projectarea(s): (a) did the agency destroy or remove any dwelling units or displace any households over the reporting period, (b) does the agency intend to displace any.households over the next reporting period, (c) did the agency permit the sale of any owner -occupied unit prior to the expiration of land use controls over the reporting period, and/or (d) did the agency execute a contract or agreement for the construction of any affordable units over the next two years? © Yes (any question). Complete SCHEDULE HCD-B. ❑ No (all questions). DO NOT complete SCHEDULE HCD-B. 4. Did the agency have any funds in the Low & Moderate Income Housing Fund during the reporting period? ® Yes. Complete SCHEDULE HCD-C. ❑ No. DO NOT complete SCHEDULE HCD-C. 5. During the reporting period, were housing units completed within a project area and/or assisted by the agency outside a Proiect area? ❑ Yes. Complete all applicable HCD SCHEDULES DI -D7 for each housine project completed and HCD SCHEDULE E. ® No. DO NOT complete HCD SCHEDULES Dl -D7 or HCD SCHEDULE E. 6. Indicate whether HCD financial and housing activity information has been reported using method A and/or B checked below: ® A. Forms. All required HCD SCHEDULES A B. C Dl -D7. and E are attached. ❑ B. On-line (http://w .hcd.ca.govlydal) "Lock Report" date: . HCD SCHEDULES not required. (lock date is shown under "Admin "Area and "Report Change Historyi 7. To the best of my knowledge: (a) the representations made above and (b) agency information reported are correct. Date Signature of Authorized Agency Representative Redevelopment Program Manager Titl14) 573-3121 Telephone Number Signature of Authorized Agency Representative Finance Director Title (714) 573-3061 Telephone Number IF NOT REQUIRED TO REPORT SUBMIT ONLY THIS PAGE. and/or Division of Accounting and Reporting Local Government Reporting Section 3301 CStreet Suite 500—Sacramento, CA 95816 Redevelopment Agency Annual Report - Fiscal Year 2003-2004 HCD-Cover Cover (7/11/04) Page I of I SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6__/30 / 04 Agency Name: Tust.in:.Redeve lopment Agency Project Area Name: Town Center im raug on Preparer's Name, Title: Program Manager Preparer's E -Mail Address: jdraughon@tustinca.org Preparer's Telephone No: ( 714) 573-3121 Preparer's Facsimile No: GENERAL INFORMATION 1. _ Project Area Information (714) 573-3113 a. 1. Year I' plan for project area was adopted: 1976 2. Year that plan was last amended (if applicable): 1994 3. Was plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741, Statutes of 2001)? Yes_ NoX 4. Current expiration of plan: --Ll—,,L/ 2016 mo day yr b. If project area name has changed, give previous name(s) or number: N/A c. Year(s) of any mergers of the project area: --NJQ Identify former project areas that merged: N/A d. Year(s) project area plan was amended involving real property that either: (1) Added property to plan: N/€1 (2) Removed property from plan: N/A 2. Affordable Housing Replacement and/or Inclusionary or Production Requirements (Section 33413). Pre -1976 project areas not subsequently amended after 1975: Pursuant to Section 33413(d), only Section 33413(a) replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to aproject area plan adopted before 1976. If the agency has elected to apply all or part of Section 33413, provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: _/_/_ Resolution Scope (applicable Section 33413 requirements): mo day yr Post -1975 project areas and geographic areas added by amendment after 1975 to Pre 1976 project areas: Both replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(1), 3b -3f, and 3i.. can be taken from what is reported to the State Controller's Office (SCO) on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report, except for the reclassifying of Transfers -In from Internal Funds and the reporting of Other Sources as discussed below: Transfers -In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a -j. For example, report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A, Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C, Line 4c. Do not report "net" funds transferred from the Debt Service Fund on ACD -A, Line 3a(3) when reporting debt service expenditures on HCD-C. Line 4c. Other Sources: Non -GAAP (Generally Acceptable Accounting Principles) revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be. reported on HCD-A Line 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h. California Redevelopment Agencies - Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) Page ] of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: Town Center Proiect Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year. Any income related to agency -assisted housing located outside the project area(s) should be reported as "Other Revenue" on Line 3j. (of this Schedule A), if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a. -3i., should also be reported on Line 3j. Enter on Line 3a(1) the full 100% of gross Tax Increment allocated prior to applicable pass throw h of funds and deductions for fees (refer to Sections 33401, 33446, &33676). Compute the required minimum percentage (%) of gross Tax Increment and enter the amount on Line 3a(2)(A) or 3a(2)(B). Next, report the amount of Tax Increment set-aside before any exemption and/or deferral (if amount set-aside is less than required minimum (%), explain the difference). If any amount of Tax Increment was exempted or deferred, in addition to completing lines 3a(4) and/or 3a(5) complete Line 4 and/or Line 5. To determine the amount of Tax Increment deposited to the Housing Fund [Line 3a(6)], subtract allowable amounts exempted [Line 3a(4)] or deferred [Line 3a(5)] from the actual amount allocated to the Housing Fund [Line 3a(3)]. a. Tax Increment: (1) 100% of Gross Allocation: $ 3,157,276 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20% required by 33334.2 (Line 3a(1) x 20%): $ 664,841 (B) 30% required by 33333.10(g) (Line 3a(1) x 30%): $ (Senate Bill 211, Chapter 741, Statutes of 2001) (3) Amount of set-aside (Line 3a(2)) allocated to Housing Fund $ 664,841 « * If, pursuant to Section 33334.3(1), less than the minimum % of Gross Tax Increment (see 3a(2) above) is being allocated from this project area, identify the project area(s) contributing the difference. Explain any other reason(s): (4) Amount Exempted [Health & Safety Code Section 33334.21 (if there is an amount exempted, also complete question #4, next page): ($ ) (5) Amount Deferred [Health & Safety Code Section 33334.6] (if there is an amount deferred, also complete question #5, next page): ($ ) (6) Total deposit to the Housing Fund [result of Line 3a(3) through 3a(5)1: $ 664,841 b. Interest Income: $ 47,723 c. Rental/Lease Income (combine amounts separately reported to the SCO): $ d. Sale of Real Estate: $ e. Grants (combine amounts separately reported to the SCO): - $ f Bond Administrative Fees: $ g. Deferral Repayments (also complete Line 5c(2) on the next page): S h. Loan Repayments: $ 55,849 i. Debt Proceeds: $ j. Other Revenue(s) [Explain and identify amount(s)]: Homeowner Prop. Tax Relief $ 2,401 $ $ 2,401 k. Total Project Area Receipts Deposited to Housing Fund (add lines 3a(6). through 3j.): $ 77 0, 841 California Redevelopment Agencies —Fiscal Year 2003-2004 sch A (7/1/04) HCD-A Page 2 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: Town Center Exemotion(s) 4; a. If an exemption was claimed on Page 2, Line 3a(4) to deposit less than the required amount, complete the following information: Check onlv one of the Health and Safety Code Sections below providing a basis for the exemption: ❑ Section 33334.2(a)(1): No need in community to increase/improve supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than the minimum set-aside % (20% or 30%) is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside % (20% or 30%) and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C), this exemption expired on June 30, 1993 but contracts entered into prior to May 1, 1991 maY not be subject to the exemption sunset ❑ Other: Specify code section and reason(s): b. For any exemption claimed on Page 2, Line 3a(4) and/or Line 4a above, identify: Date that initial (J") finding was adopted: _/_/_ Resolution # _ Into day yr Adoption date of reporting year finding: _/_/_ Resolution # _ mo day yr Date sent to HCD: mo day yr Date sent to HCD: mo day yr Deferral's) 5. a. Specify the authority for deferring anv set-aside on Line 3a(5). Check only one Health and Safety Code Section,. boxes: ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985, if net proceeds were used to refinance pre -1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e) expired. It was only allowable in each fiscal Year prior to July 1, 1996 with certain restrictions ❑ Other: Specify code Section and reason: b. For any deferral claimed on Page 2, Line 3a(5) and/or Line 5a above, identify: Date that initial'] ") finding was adopted: _/_/_ Resolution # mo day yr Adoption date of reporting Year finding: Too day yr Resolution # Date sent to HCD: mo day yr Date sent to HCD: mo day yr c. A deferred set-aside pursuant to Section 33334.6(d) constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred over the reporting Year and cumulatively as of the rod of the * The cumulative amount ordeferred set-aside should also be shown on ACD -C, Line 8a. df the prior FY cumulative deferral shown above differs from what was reported on the last HCD report (HCD-A and HCD-C), indicate the amount of difference and the reason: Difference: S Reason(s): California Redevelopment Aeencics - Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) Page 3 of 6 Amount of Prior Cumulative Amount Amount Deferred Deferrals Repaid Fiscal Year This Reporting FY During Reporting FY Deferred (Net of Any Amount(s) Repaid) (1) Last Reporting FY $2,776,042 (2)7hisReporting .FY S 0 $ 0 S*2,776,042 * The cumulative amount ordeferred set-aside should also be shown on ACD -C, Line 8a. df the prior FY cumulative deferral shown above differs from what was reported on the last HCD report (HCD-A and HCD-C), indicate the amount of difference and the reason: Difference: S Reason(s): California Redevelopment Aeencics - Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) Page 3 of 6 Agency Name: Tustin Redevelopment Agency Defetral(sl (continued) 5. Project Area Name: Town Center d. Section 33334.6(8) requires any agency which defers set -asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set -asides, has it adopted such aplan? Yes ® No ❑ If yes, by what date is the deficit to be eliminated? 6 / 30 / 2023 AM me day yr If yes, when was the original plan adopted for the claimed deferral? 2 /01/199 7 0 mo day yr Identify Resolution 4 NSA Date Resolution sent to HCD 0 3 Households Permanently Displaced -Total mo day yr When was the last amended plan adopted for the claimed deferral? _L_/ _Q 1 / 2000 mo day yr Identify Resolution # RDA_ 00-4 Date Resolution sent to HCD mo day yr Actual Project Area Households Displaced and Units and Bedrooms Lost Over Reporting Year: 6. a. Redevelopment Proiect Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed, over the reporting year, (refer to Section 33413 for unit and bedroom replacement requirements). Number of Households/1lnits/Redrnnms Project Activity VL L M AM Total Households Permanently Displaced - Elderly 20 0 0 0 0 Households Permanently Displaced - Non Eldedy 2 1 0 0 3 Households Permanently Displaced -Total 22 1 0 0 23 Units Lost (Removed or Destroyed) and Required to be Replaced Bedrooms Lost (Removed or Destroyed) and Required to be Replaced Above Moderate Units Lost That Agency is Not Required to Replace 0 0 Above Moderate Bedrooms Lost That Agency is Not Required to Replace 0 0 b. Other Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3) based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a, report by income category the number of elderly and nonelderly households permanently displaced over the reporting vear: Number of Nnusrhnlds Other Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 c. As required in Section 33413.5, identify, over the reporting veaz, each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a. and 6b. Date 8 / 04 ! 2003 Name of Agency Custodian Jim Draughon -mo day yr -- Date _!_/_ Name of Agency Custodian Too day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Califomin Redeveiopment Agencies- Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) page 4 of 6 Agency Name: Tustin Redevelopment Agency - project Area Name: Town Center Estimated Proiect Area Households to be Permanentiv Displaced Over Current Fiscal Year: 7. a. As required in Section 33080.4(a)(2) for a redevelopment project of the agency, estimate, over the current fiscal Yearthe number of elderly and nonelderly households, by income category, expected to be permanently displaced. (Note: actual displacements will be reported for the next reporting year on Line 6). Project Activity VL L M I AM I Total Households Permanently Displaced - Elderly Households Permanently Displaced - Non Elderly 2 2 5 1 0 9 Households Permanently Displaced - Total 2 2 5 1 0 9 b. As required in Section 33413.5, for the current fiscal year, identify each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date 8 /04 / 2003 mo day yr Date Name of Agency Custodian Name of Agency Custodian Jim Draughon mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Project Area to Fulfill Requirements of Other Proiect Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v), agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units, provided the agency conducts a public hearing and finds, based on substantial evidence, that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial, ethnic, or economic segregation Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ® No. ❑ Yes. Date initial finding was adopted? _/_/ Resolution # Date sent to HCD:_ mo day yr mo day yr Number of Dwellino Units Name of Other Project Area(s) VL L M Total California Redevelopment Agencies - Fiscal Year 2003-2004 HCD-A soh A (7niO4) Page 5 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: Town Center Sales of Owner -Occupied Units Inside the Proiect Area Prior to the Expiration of Land Use Controls R Section 33413(c)(2)(A) specifies that pursuant to an adopted program, which includes but is not limited to an equity sharing program, agencies may permit the sale of owner -occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3) years from the date the unit was sold, expend funds to make another unit equal in affordability, at the same income level, to the unit sold. a. Sales. Did the agency permit the sale of any owner -occupied units during the reporting year? FTNo ❑Yes Is a Total Proceeds From Sales Over Reporting Year Number of Units (SALES VL I L M Total 0 Equal Units. ❑X No ❑Yes Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? $ f— Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M I Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Project Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting year. Identify the project and/or contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As, B, OR Ds. Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date__ w/in 2 yrs of Col B Line 6a Line 7a VL L M Total E. Preble Dr. 6/20/03 1/01/05 $1,860,000 $ 2 2 5 9 S $ S $ Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies — Fiscal Year 2003-2004 Sch A (7/1/04) HCD-A Page 6 of 6 SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6 / 30/ 2004 Agency Name: Tustin Redevelopment Agency Project Area Name: South Central Jim Draughon Preparer's Name, Title: _ program Manager Preparer's E -Mail Address: jdraughon@tustinca.org Preparer's Telephone No: (714) 573-3121 Preparer's Facsimile No: (714) 573-3113 GENERAL INFORMATION 1. Project Area Information a. 1. Year 1" plan for project area was adopted: 1983 2. Year that plan was last amended (if applicable): 1999 3. Vas plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741, Statutes of 2001)? Yes_ No X 4. Current expiration of plan: 7 / 05 /2015 mo day yr b. If project area name has changed, give previous name(s) or number: N/A c. Year(s) of any mergers of the project area: - A Identify former project areas that merged: N/A d. Year(s) project area plan was amended involving real property that either: (1) Added property to plan: 198 j (2) Removed property from plan: N/A —_ 2. Affordable Housing Replacement andlor Inclusionary or Production Requirements (Section 33413). Pre -1976 project areas not subsequently amended after 1975: Pursuant to Section 33413(d), only Section 33413(a) replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency has elected to apply all or part of Section 33413, provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: / mo day yr Resolution Scope (applicable Section 33413 requirements): Post -1975 project areas and geographic areas added by amendment after 1975 to pre -1976 project areas: Both replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(1), 3b -3f, and 3i. can be taken from what is reported to the State Controller's Office (SCO) on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report, except for the reclassifying of Transfers -In from Internal Funds and the reporting of Other Sources as discussed below: Transfers -In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a -j. For example, report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A, Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C, Line 4c. Do not report "net" funds transferred from the Debt Service Fund on HCD—AA Line 3a(3) when reporting debt service expenditures on HCD-C. Line 4c Other Sources: Non -GAAP (Generally Acceptable Accounting Principles) revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h. California Redevelopment Agencies —Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) Page I of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: South Central Proiect Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year.. Any income related to agency -assisted housing located outside the project area(s) should be reported as "Other Revenue" on Line 3j. (of this Schedule A), if this nmiect area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a. -3i., should also be reported on Line 3j. Enter on Line 3a(1) the full 100% of Pross Tax Increment allocated prior to anolicable pass through of funds and deductions for fees (refer to Sections 33401, 33446, & 33676). Compute the required minimum percentage (%) of gross Tax Increment and enter the amount on Line 3a(2)(A) or 3a(2)(B). Next, report the amount of Tax Increment set-aside before any exemption and/or deferral (if amount set-aside is less than required minimum (%) explain the difference). If any amount of Tax Increment was exempted or deferred, in addition to completing lines 3a(4) and/or 30) complete Line 4 and/or Line S. To determine the amount of Tax Increment deposited to the Housing Fund [Line 3a(6)], subtract allowable amounts exempted [Line 3a(4)] or deferred [Line 3a(5)] from the actual amount allocated to the Housing Fund [Line 3a(3)]. a. Tax Increment: (1) 100% of Gross Allocation: $ 2,709,780 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20% required by 33334.2 (Line 3a(1) x 20%): S 541,95 (B) 30%" requiredby33333.10(g) (Line 3a(l) x 30%): $ (Senate Bill 211, Chapter 741, Statutes of 2001) (3) Amount of set-aside (Line 3a(2)) allocated to Housing Fund $ 541,956 r " If, pursuant to Section 33334.3(1), less than the minimum % of Gross Tax -increment (see 3a(2) above) is being allocated from this project area, identify the project area(s) contributing the difference. Explain any other reason(s): (4) Amount Exempted [Health & Safety Code Section 33334.2] (if there is an amount exempted, also complete question #4, next page): (5) Amount Deferred [Health & Safety Code Section 33334.6) (if there is an amount deferred, also complete question #5, next page): (6) Total deposit to the Housing Fund [result of Line 3a(3) through 3a(5)1: b. Interest Income: c. Rental/Lease Income (combine amounts separately reported to the SCO): d. Sale of Real Estate: e. Grants (combine amounts separately reported to the SCO): f. Bond Administrative Fees: g. Deferral Repayments (also complete Line 5c(2) on the next page): It. Loan Repayments: i. Debt Proceeds: j. Other Revenue(s) [Explain and identify amount(s)]: $ ($ ) k. Total Project Area Receipts Deposited to Housing Fund (add lines 3a(6). through 3j.): California Redevelopment Agencies — Fiscal Year 2003-2004 Sch A (7/1/04) $ 541,956 S 87,145 $ 70,003 $ $ 80,314 $ $ 3,156 S 782,474 HCD-A Page 2 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: South Central Exemption(s) 4. a. If an exemption was claimed on Page 2, Line 3a(4) to deposit less than the required amount, complete the following information: Check only one of the Health and Safety Code Sections below providing a basis for the exemption: ❑ Section 33334.2(a)(1): No need in community to inereaseiimprove supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than the minimum set-aside % (20% or 30%) is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside % (20% or 30%) and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C), this exemption expired on June 30, 1993 but contracts entered into prior to May 1, 1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and reason(s): b. For any exemption claimed on Page 2, Line 3a(4) and/or Line 4a above, identify: Date that initial W) finding was adopted: _/_/_ Resolution # mo day yr Adoption date of reporting vear finding: mo day yr Resolution # Date sent to HCD: mo day yr Date sent to HCD: mo day yr Deferral(s) 5. a. Specify the authority for deferring any set-aside on Line 3a(5). Check only one Health andSafety Code Section boxes: ❑ Section 33334.6(d): Applicable to project areas approved before .1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985, if net proceeds were used to refinance pre -1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e) expired. It was only allowable in each fiscal year prior to July 1, 1996 with certain restrictions. ❑ Other: Specify code Section and reason: b. For any deferral claimed on Page 2, Line 3a(5) and/or Line 5a above, identify: Date that initial (1 n) finding was adopted: _/_/_ Resolution # Date sent to HCD: mo day yr Adoption date of reporting year finding: —/_/_ Resolution # mo day yr me, day yr Date sent to HCD: / i me day yr c. A deferred set-aside pursuant to Section 33334.6(d) constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred over the reporting year and cumulatively as of the end of the reporting year: Amount of Prior Cumulative Amount Amount Deferred Deferrals Repaid Deferred (Net of Any Fiscal Year This Reporting FY During Reporting Amount(s) Repaid) (1) Last Reporting FY $ 0 (2) This Reporting FY $ 0 $ 0 S ` 0 " F --The cumulative amount of deferred set-aside should also be shonm on HCD-77=11180 If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report (HCD-A and HCD-C), indicate the amount of difference and the reason: Difference: $ Reason(s): California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-A Sch A (7n/04) Pace 3 of 6 Agency Name: Tustin Redevelopment Agency Deferrals) (continued) 5. Project Area Name: South Central d. Section 33334.6(g) requires any agency which defers set -asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set -asides, has it adopted such a plan? Yes ❑ No ❑ If yes, by what date is the deficit to be eliminated? mo day yr If yes, when was the original plan adopted for the claimed deferral? mo day yr Identify Resolution # Date Resolution sent to HCD mo day yr When was the last amended plan adopted for the claimed deferral? /_/_ Too day yr Identify Resolution # Date Resolution sent to HCD mo day yr Actual Proiect_Area Households Displaced and Units and Bedrooms Lost Over Reportin Year: 6. a. Redevelopment Proiect Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed, over the reporting Year. (refer to Section 33413 for unit and bedroom replacement requirements). Project Activity VL T L-T-m—JvAMyyTotal 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced -Total 0 0 0 0 0 Units Lost (Removed or Destroyed) and Required to be Replaced 0 0 0 0 Bedrooms Lost (Removed or Destroyed) and Required to be Replaced 0 0 0 0 Above Moderate Units Lost That Agency is Not Required to Replace 0 0 Above Moderate Bedrooms Lost That Agency is Not Required to Replace M 0 0 b. Other Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3) based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a report by income category the number of elderly and nonelderly households permanently displaced over the reporting year. Other Activity VL Y L M.., AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 c. As required in Section 33413.5, identify, over the reportingyear, each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a. and 6b. Date _/_/_ Name of Agency Custodian -mo day yr _. Date Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies— Fiscal Year 2003-2004 HCD-A Sch A (7/l/04) Page 4 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: South Central Estimated Project Area Households to be Permanently Displaced Over Current Fiscal Year: 7. a. As required in Section 33080.4(a)(2) for a redevelopment project of the agency, estimate, over the current fiscal year, the number of elderly and nonelderly households, by income category, expected to be permanently displaced. (Note: actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity I VL I L J M AM L Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 b. As required in Section 33413.5, for the current fiscal Year, identify each replacement housing plan required to be adopted before the permanent displacement, destruction, andlor removal of dwelling units and bedrooms impacting the households reported in 7a. Date _/ /_ Name of Agency Custodian mo day yr Date _/_/_ Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Project Area to Fulfill Requirements of Other Project Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v), agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units, provided the agency conducts a public hearing and finds, based on substantial evidence, that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial, ethnic, or economic segregation. Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ❑X No. ❑ Yes. Date initial finding was adopted? _/_/_ Resolution # Date sent to HCD:_/_� mo day yr mo day yr Number of Dwellina Units Name of Other Project Area(s) VL L M Total California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) Page 5 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: South Central Sales of Owner -Occupied Units Inside the ProiectArea Prior to the Expiration of Land Use Controls 9. Section 33413(c)(2)(A) specifies that pursuant to an adopted program, which includes but is not limited to an equity sharing program, agencies may permit the sale of owner -occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3) years from the date the unit was sold, expend funds to make another unit equal in affordability, at the same income level, to the unit sold. 1! Sales. ®No ❑Yes Did the agency permit the sale of any owner -occupied units during the reporting year? Equal Units. ®No ❑Yes Total Proceeds From Sales Over Reporting Year INumber of Units Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? Affordable Units to be Constructed Inside the Project Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting veaz. Identify the project andior contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As, B, OR Ds. Col A F— Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Project Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting veaz. Identify the project andior contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As, B, OR Ds. Col A Cot B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date w/in 2 yrs of Col B Line 6a Line 7a VL L M Total $ $ $ $ Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies — Fiscal Year 2003.2004 HCD-A Sch A hni041 Page 6 of 6 SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6 / 30/ 2004 Agency Name: Tustin Redevelopment Agency Project Area Name: MCAS Tustin Jim Draughon Preparers Name, Title: Program Manager Preparer's E -Mail Address: jdraughon@tustinca.org Preparer's Telephone No: (714) 573-3121 1. Project Area Information Preparer's Facsimile No: GENERAL INFORMATION (714) 573-3113 a. 1. Year V plan for project area was adopted: 2003 2. Year that plan was last amended (if applicable):_ 3. Was plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741, Statutes of 2001)? Yes_ No_ 4. Current expiration of plan: 7 /02 / 2033 mo day yr b. If project area name has changed, give previous name(s) or number: N/A e. Year(s) of any mergers of the project area: N[A Identify former project areas that merged: N/A d. Year(s) project area plan was amended involving real property that either: (1) Added property to plan: (2) Removed property from plan: 2. Affordable Housing Replacement and/or Inclusionary or Production Requirements (Section 33413). Pre -1976 nroiect areas not subsequently amended after 1975: Pursuant to Section 33413(d), only Section 33413(a) replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency has elected to apply 0 or part of Section 33413, provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: _ _/_ Resolution Scope (applicable Section 33413 requirements): mo day yr Post -1975 project areas and eeoeraphic areas added by amendment after 1975 to ore 1976 project areas: Both replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on ACD -A lines 3a(1), 3b -3f, and 3i. can be taken from what is reported to the State Controller's Office (SCO) on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report, except for the reclassifying of Transfers -In from Internal Funds and the reporting of Other Sources as discussed below: Transfers -In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a -j. For example, report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A, Line 3a(I) and report the Housing Fund's share of expenditures for debt service on BCD -C, Line 4c. Do not report "net" funds transferred from the Debt Service Fund on BCD -A, Linc 3a(I) when reportin2 debt service expenditures on HCD-C. Line 4c. Other Sources: Non -GAAP (Generally Acceptable Accounting Principles) revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h. California Redevelopment Agencies —Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) _ Page 1 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: MCAS Tustin Project Area Housing Fund Revenues and Other Sources 3. Report all revenuesand other sources of funds from this project area which accrued to the Housing Fund over the reporting year. Any income related to agency -assisted housing located outside the project area(s) should be reported as "Other Revenue" on Line 3j. (of this Schedule A), if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a. -3i., should also be reported on Line 3j. Enter on Line 3a(1) the full 100% of gross Tax Increment allocated prior to applicable pass through of funds and deductions for fees (refer to Sections 33401, 33446, & 33676). Compute the required minimum percentage (%) of gross Tax Increment and enter the amount on Line 3a(2)(A) or 3a(2)(B). Next, report the amount of Tax Increment set-aside before any exemption and/or deferral (if amount set-aside is less than required minimum (%), explain the difference). If any amount of Tax Increment was exempted or deferred, in addition to completing lines 3a(4) and/or 3a(5), complete Line 4 and/or Line 5. To determine the amount of Tax Increment deposited to the Housing Fund [Line 3a(6)], subtract allowable amounts exempted [Line 3a(4)] or deferred [Line 3a(5)] from the actual amount allocated to the Housing Fund [Line 3a(3)]. a. Tax Increment: (1) 100% of Gross Allocation: S 0 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20% required by 33334.2 (Line 3a(1) x 20%): S 0 (B) 30% required by 33333.10(8) (Line 3a(1) x 30%): $ (Senate Bill 211, Chapter 741, Statutes of 2001) (3) Amount of set-aside (Line 3a(2)) allocated to Housing Fund $ 0 * If, pursuant to Section 33334.3(1), less than the minimum % of Gross Tax Increment (see 3a(2) above) is being allocated from this project area, identify the project area(s) contributing the difference. Explain any other reason(s): (4) Amount Exempted [Health & Safety Code Section 33334.2] (if there is an amount exempted, also complete question #4, next page): (5) Amount Deferred [Health & Safety Code Section 33334.6] (if there is an amount deferred, also complete question #5, next page): (6) Total deposit to the Housing Fund [result of Line 3a(3) through 3a(5)1: b. Interest Income: c. Rental/Lease Income (combine amounts separately reported to the SCO): d. Sale of Real Estate: e. Grants (combine amounts separately reported to the SCO): f Bond Administrative Fees: g. Deferral Repayments (also complete Line 5c(2) on the next page): It. Loan Repayments: i. Debt Proceeds: j. Other Revenue(s) [Explain and identify amount(s)]: $ k. Total Project Area Receipts Deposited to Housing Fund (add lines 3a(6). through 3j.): California Redevelopment Agencies — Fiscal Year 2003-2004 Sch A (7/1/04) S 0 $ 0 $ 0 HCD-A Page 2 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: MCAS Tustin - Exemption(s) 4. a. If an exemption was claimed on Page 2, Line 3a(4) to deposit less than the required amount, complete the following information: Check only one of the Health and Safety Code Sections below providing a basis for the exemption: ❑ Section 33334.2(a)(1): No need in community to increase/improve supply of lower or moderate income housing. ❑ Section. 33334.2(a)(2): Less than the minimum set-aside % (20% or 30%) is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside % (20% or 30%) and has specific contractual obligations incurred before May I, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C), this exemption expired on June 30, 1993 but contracts entered into prior to May 1, 1991 may not be subjectto the exemption sunset. ❑ Other: Specify code section and reason(s): b. For any exemption claimed on Page 2. Line 3a(4) and/or Line 4a above, identify: Date that initial (1 ") finding was adopted: _/_/_ Resolution # Date sent to HCD: mo day yr mo day yr Adoption date of resorting year findine: _/_/_ Resolution # Date sent to HCD: mo day yr mo _ day yr Deferrals 5. a. Specify the authority for deferring any set-aside on Line 3a(5). Check only one Health and Safety Code Section boxes: ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985, if net proceeds were used to refinance pre -1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e) expired. It was only allowable in each fiscal year prior to July 1, 1996 with certain restrictions. ❑ Other: Specify code Section and reason: b. For any deferral claimed on Page 2, Line 3a(5) and/or Line 5a above, identify: Date that initial (I ") finding was adopted: _/_/_ Resolution # _ mo day yr Adoption date of reporting vear finding: _�_/_ Resolution #. mo day yr Date sent to HCD: mo day yr Date sent to HCD: Too day yr c. A deferred set-aside pursuant to Section 33334.6(d) constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred over the reporting year and cumulatively as of the end of the reporting year: Amount of Prior Cumulative Amount Amount Deferred Deferrals Renaid Deferred -(Net of Any Fiscal Year This Reporting FY During Reporting FY Amount(s) Repaid) (1) Last Reporting FY S N/A (2) This Reporting FY S 0 $ 0 $ " 0 * The cumulative amount of deferred set-aside should also be shown on HCD-C, Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report (HCD-A and HCD-C), indicate the amount of difference and the reason: Difference: $ Reason(s): California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-A Sen A (7l1t04) Page 3 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: Deferral(s) (continued) W MCAS Tustin d. Section 33334.6(8) requires any agency which defers set -asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set -asides, has it adopted such a plan? Yes ❑ No ❑ If yes, by what date is the deficit to be eliminated? If yes, when was the original plan adopted for the claimed deferral? Identify Resolution # Date Resolution sent to HCD When was the last amended plan adopted for the claimed deferral? Identify Resolution # Date Resolution sent to HCD mo day yr M AM Total mo day yr 0 0 0 mo day yr mo day yr M AM Total mo day yr Actual Proiect Area Households Displaced and Units and Bedrooms Lost Over Reporting Year: 6. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed, over the reporting year. (refer to Section 33413 for unit and bedroom replacement requirements). Nnmher of T4nllReho1d5/1Tnits/Redrnnma Project Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced -Total 0 0 0 0 0 Units Lost (Removed or Destroyed) and Required to be Replaced 0 0 0 0 Bedrooms Lost (Removed or Destroyed) and Required to be Replaced 0 0 0 0 Above Moderate Units Lost That Agency is Not Required to Replace 0 0 Above Moderate Bedrooms Lost That Agency is Not Required to Replace 0 1 0 b. Other Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3) based on activities other than the destruction or removal of dwelline units and bedrooms reported on Line 6a, report by income category the number of elderly and nonelderly households permanently displaced over the reporting Year: N��ml.ar of Roomr. nt.i. Other Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 c. As required in Section 33413.5, identify, over the renortingvear, each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a. and 6b. Date _/ /_ Name of Agency Custodian mo day yr Date /_/_ Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies- Fiscal Year 2003-2004 HCD-A SchA (7n/04) Page 4 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: MCAS Tustin Estimated Project Area Households to be Permanently Displaced Over Current Fiscal Year: 7. a. As required in Section 33080.4(a)(2) for a redevelopment project of the agency, estimate' over the current fiscal year, the number of elderly and nonelderly households, by income category, expected to be permanently displaced. (Note: actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 b. As required in Section 33413.5, for the current fiscal year, identify each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date _/_J_ Name of Agency Custodian mo day yr Date _/ /_ Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Proiect Area to Fulfill Requirements of Other Project Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v), agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units, provided the agency conducts a public hearing and finds, based on substantial evidence, that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial, ethnic, or economic segregation. Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? © No. ❑ Yes. Date initial finding was adopted? _/_/_ Resolution # Date sent to HCD:_/_/_ mo day yr mo day yr Name of Other California Redevelopment Agencies — Fiscal Year 2003-2004 Sch A (7/1/04) HCD-A Page 5 of 6 Agency Name: Tustin Redevelopment Agency Project Area Name: WAS Tustin Sales of Owner -Occupied Units Inside the Proiect Area Prior to the Expiration of Land Use Controls Section 33413(c)(2)(A) specifies that pursuant to an adopted program, which includes but is not limited to an equity sharing program, agencies may permit the sale of owner -occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3) years from the date the unit was sold, expend funds to make another unit equal in affordability, at the same income level, to the unit sold. la Sales. Did the agency permit the sale of any owner -occupied units during the reporting year? [INo []Yes Equal Units. ®No ❑Yes Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? F— Total Proceeds From Sales OverReporting Year Number of Units SALES VL L M Total Units Sold Over Reporting Year Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Estimated Sch C Amount Equal Units. ®No ❑Yes Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? Affordable Units to be Constructed Inside the Protect Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the repotting vear. Identify the project and/or contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As, B, OR Ds. Col A f— Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Protect Area Within Two Years 10. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the repotting vear. Identify the project and/or contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As, B, OR Ds. Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date (w/in 2 yrs of Col B Line 6a Line 7a VL L M Total Lain I 3/10 03 $ $ 22 12 44 78 Lain II 10/31/03 $ 0 $ 11 10 19 40 $ $ Please attach a separate sheet of paper to list additional infomration. California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-A Sch A (7/1/04) Page 6 of 6 SCHEDULE HCD-B Outside Project Area Activity for Fiscal Year Ended --j6—/-30 / 04 Agency Name: Tustin Redevelopment AgencyProject Name:_ Heritage Place Jim rang on Preparers Name, Title: Program Manager Preparer'sjr-Mail Address:_jdraughon@tustinca.org Preparer's Telephone No: (714) 573-3121 Preparer's Facsimile No: (714) 573-3113 Actual Households Displaced and Units and Bedrooms Lost Outside of Project Area(s) Over Reportin2 Year 1. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed, over the reporting vear, (refer to Section 33413 for unit and bedroom replacement requirements). Activity ,. umver of nuusenmus/ u nits/Beerooms VL L Households Permanently Displaced - Elderly 0 0 M 0 AM Total Households Permanently Displaced - Non Elderly 0 0 0 0 0 0 0 Households Permanently Displaced -7otal 0 0 0 0 Units Lost (Removed or Destroyed) and Required to be Replaced 0 0 0 0 Bedrooms Lost (Removed or Destroyed) and Required to be Replaced 0 0 0 Above Moderate Units Lost That Agency is Not Required to Replace 0 Above Moderate Bedrooms Lost That Agency is Not Required to Replace 0 0 0 0 b. Other Activity. Pursuant to Sections 33080.4(a)(1) and (a)(3) based on activities other than the destruction or removal of dwellmg units and bedrooms reported on Line la report by income category the number of elderly and nonelderly households permanently displaced over the reporting vear. - Activity ,.ufnuer ui nousenolps VL L M Households Permanently Displaced - Elderly AM Total 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 c. As required in Section 334135, identify, over the reporting year, each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and/or bedrooms impacting the households reported on lines I a. and l b. Date mo day yr Date mo day yr Name of Agency Custodian Name of Agency Custodian Please attach a sepamte sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies - Fiscal Year 2003-2004 HCD-B seh B (7/1/04) Page 1 of 2 Agency Name: Tustin Redevelopment Agency HCD B (Outside Project Area) Estimated Households Outside of Proiect Area(s) to be Permanently Displaced Over Current Fiscal Year 2. a. As required in Section 33080.4(a)(2) for a redevelopment project of the agency, estimate, over the current fiscal year, the number of elderly and nonelderly households, by income category, expected to be permanently displaced. (Note: actual displacements will be reported for the next reporting year on Line 1). Estimated Permanent Displacements Number of Households Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced - Non Elderly 0 0 0 0 0 Households Permanently Displaced - Total 0 0 0 0 0 b. As required in Section 33413.5, for the current fiscal year, identify each replacement housing plan required to be adopted before the permanent displacement, destruction, and/or removal of dwelling units and bedrooms impacting the households reported on 2a. Date _'_�_ Name of Agency Custodian mo day yr Date ��_ Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Sales of Owner -Occupied Units Outside of Proiect Area(s) Prior to the Expiration of Land Use Controls 3. Section 33413(c)(2)(A) specifies thatpursuant to an adopted program, which includes but is not limited to an equity sharing program, agencies may permit the sale of owner -occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3) years from the date the unit was sold, expend funds to make another unit equal in affordability, at the same income level, as the unit sold. a. Sales. Did the agency permit the sale of any owner -occupied units during the repotting year? [RNo ❑Yes $ i— Total Proceeds From Sales Over Reporting Year Number of Units Income Level VL L M Total Units Sold Over Current Reporting Year b. Equal Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? FINo ❑Yes $ Total Proceeds From Sales Over Reporting Year Number of Units Income Level VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Outside of Proiect Area(s) Within Two Years From Date of Agreement or Contract 4. Pursuant to Section 33080.4(a)(10), report the number of very low, low, and moderate income units to be financed by any federal, state, local, or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting vear. Identify the project and/or contractor, date of the executed agreement or contract, and estimated completion date. Specify the amount reported as an encumbrance on HCD-C, Line 6a. and/or any applicable amount designated on HCD-C, Line 7a. such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS SHOWN ON SCHEDULES HCD As OR Ds. Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date(w/in 2 yrs of Col B Line 6a Line 7al VL L M Total Olson Com an 3/01/04 6/01/05 $ 969,960 $ 4 0 1 6 10 $ $ $ $ Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies—Fiscal Year 2003-2004 - HCD-B Sch a (7/1/04) Page 2 of 2 SCHEDULE HCD-C Agency -wide Activity for Fiscal Year Ended Agency Name: Tustin Redevelopment Agency County: Orange Jim Draughon Preparers Name, Title: Program Manager Preparer's E -Mail Address: jdraughon@tustinca.org Preparer's Telephone No: (714) 573-3121 Low & Moderate Income Housing Funds Preparer's Facsimile No: (714) 573-3113 Report on the "status and use of the agency's Low and Moderate Income Housing Fund." Most information reported here should. be based on information reported to the State Controller. I. Beginning Balance (Use "Net Resources Available" from last fiscal year report to HCD) a. If Beginning Balance requires adiustment(s)identifv the reason and amount for each adjustment: Use < S > for negative amounts or amounts to be subtracted Kenyon Drive DDA Termination S6,689,200 S b. Total Adjustment(s) (indicate whether positive or <negative>) c. Adjusted Beginning Balance [Beginning Balance plus + or minus <-> Total Adjustment(s)] 2. Project Area(s) Receipts and Housing Fund Revenues a. All Project Areas. Total Deposits [Sum of amounts) from Line 3k.,HCD-A(s)] b. Other revenues not reported on Schedule HCD-A(s) [Identify source(s) and amount(s)]: c. Total Housing Fund Revenues Total Resources (Line I c. + Line 2a + Line 2c.) $ 638.970 $ 6,689,200 S 7,328,170 $ 1,553,315 $ S 8,881,485 NOTES: Many amounts to report as Expenditures and Other Uses (beginning on the next page) should be taken from amounts reported to the State Controller's Office (SCO). Review the SCO's Redevelopment Agencies Financial Transactions Report. Housing Fund "transfers -out" to other internal Agency funds: Report the specific use of all transferred funds on applicable lines 4a: k of Schedule C. For example, transfers from the Housing Fund to the Debt Service Fund for the repayment of principal and interest of debt proceeds deposited to the Housing Fund should be reported on the applicable item comprising HCD-C Line 4c, providing tax increment (gross and deposit amounts) were reported on Sch-As. External transfers out of the Agency should be reported on HCD-C Line 4j (e.g.: transfer of excess surplus to the County Housing Authority). Other Uses: Non -GAAP (Generally Accepted Accounting Principles) recording of expenditures such as land purchases for agencies using the Land Held for Resale method to record land purchases should be reported on HCD-C Line 4a(1). Funds spent resulting in loans to the Housing Fund should be included in HCD-C lines 4b, 4f" 4g., 4h., and 4i as appropriate. The statutory cite pertaining to Community Redevelopment Law (CRL) is provided for preparers to review to determine the appropriateness of Lou, and Moderate Income Housing Fund (LMIHF) expenditures and other uses. HCD does not represent That line items identifying any expenditures and other uses are allowable CRL is accessible on the Internet [website: http:iiwww.]eginfo.ea..gow(California Law)] beginning with Section 33000ofthe Health andSafegvCode. California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-C Sch C (7/1/04) Pagel of 8 Agency Name: Tustin Redevelopment Agency 4. Expenditures, Loans, and Other Uses a. Acquisition of Property & Buildinn Sites L33334.2(e)(I)l & Housine I33334.2(e)(6 (1) Land Purchases (Investment — Land Held for Resale) * $ 1,300,000 (2) Housing Assets (Fixed Asset) * $ (3) Acquisition Expense $ (4) Operation of Acquired Property $ (5) Relocation Costs $ 56,157 (6) Relocation Payments $ 7UUT6M (7) Site Clearance Costs $ (8) Disposal Costs $ (9) Other [Explain and identify amount(s)]: * Reported to SCO as part ofAssets and Other Debts (10) Subtotal Property/Building Sites/Housing Acquisition (Sum of Lines] —9) $ 1,556,157 b. Subsidies from Low and Moderate Income Housine Fund (LMIHF (1) 1" Time Homebuyer Down Payment Assistance $ (2) Rental Subsidies $ (3) Purchase of Affordability Covenants [33413(b)2(B)] $ (4) Other [Explain and identify amount(s)]: S S (5) Subtotal Subsidies from LMIHF (Sum of Lines 1 —4) c. Debt Service 133334.2(e)(9)1. Report LMIHF's share of debt service. If paid from Debt Service Fund, ensure "gross" tax increment is reported on HCD-A(s) Line 3a(1). (I) Debt Principal Payments ('a) Tax Allocation, Bonds & Notes $ (b) Revenue Bonds & Certificates of Participation $ (c) City/County Advances & Loans $ (d) U. S. State & Other Long—Term Debt S (2) Interest Expense $ (3) Debt Issuance Costs $ (4) Other [Explain and identify amount(s)]: (5) Subtotal Debt Service (Sum of Lines 1 —4) Plannim and Administration Costs f33334.3(e)(1)1: (1) Administration Costs (2) Professional Services (non project specific) (3) Planning/Survey/Design (non project specific) (4) Indirect Nonprofit Costs [33334.3(e)(1)(13)] (5) Other [Explain and identify amount(s)]: $ 0 $ 0 S 81,382 $ 105,737 S $ $ $ $ (6) Subtotal Planning and Administration (Sum of Lines I — 5) $ 187.119 California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-C Sch C (7/1/04) Page 2 of 8 Agency Name: Tustin Redevelopment Agency 4. Expenditures, Loans, and Other Uses (continued) e. On/Off-Site Improvements [33334.2(e)(2)] Complete item 13 f. Housing Construction [33334.2(e)(5)] g. Housing Rehabilitation [33334.2(e)(7)] h. Maintenance of Mobilehome Parks [33334.2(e)(I0)] i. Preservation of At -Risk Units [33334.2(e)(I 1)] Transfers Out of Agency (1) For Transit village Development Plan (33334.19) $ (2) Excess Surplus [33334.12(a)(1)(A)] $ (3) Other (specify code section authorizing transfer and amount) A. Section $ B. Section $ Other Transfers Subtotal S (4) Subtotal Transfers Out of Agency (Sum of j(1) through j(3)) k. Other Expenditures, Loans, and Uses [Explain and identify amount(s)]: S Subtotal Other Expenditures, Loans, and Uses $ 0 I. Total Expenditures, Loans, and Other Uses (Sum of lines 4a. -k.) S 1,743,276 5. Net Resources Available [End of Reporting Fiscal Year] [Page 1, Line 3, Total Resources minus Total Expenditures, Loans, and Other Uses on Line 4.1.1 $ 7,138,209 6. Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment of legal contract(s) or agreement(s). See Section 33334.12(g)(2) for definition. S Refer to item 10 on Sch-A(s) and item 4 on Sch-B. 3,740,938 b. Unencumbered Balance (Line 5 minus Line 6a). Also enter on Page 4, Line l la. $ 3 , 39 7 , 2 71 7. DesignatedfUndesignated Amount of Available Funds A Designated Amount of Line 6b. budgeted/planned to use near-term Refer to item 10 on Sch-A(s) and item 4 on Sch-B S b. Undesignated Amount of Line 6b. not yet budgeted/planned to use S 8. Other Housing Fund Assets (not included as part of Line 5) a. Indebtedness from Deferrals of Tax Increment (Sec. 33334.6) [refer to Sch-A(s), Line 5c (2)]. S 2,776,04 b. Value of Land Purchased with Housing Funds and Held for Development of Affordable Housing. Complete Sch-C item 14. S 2,005,00 c. Loans Receivable for Housing Activities $ 1,353,68 d. Residual Receipt Loans (periodic/fluctuating payments) S e. ERAF Loans Receivable (all years) (Sec. 3368]) S 0 f Other Assets [Explain and identify amoum(s)]: S s g Total Other Housing Fund Assets (Sum of lines Sa.-f.) $ 6,134,727 9• TOTAL FUND EQUITY[Line 5 (Net Resources Available) +8g (Total Other Housing Fund Assets]$ 13.272.936 Compare Line 9 to the below amount reported to the SCO (Balance Sheet of Redevelopment Agencies Financial Transactions Report. [Explain differences and identify amount(s)]: $ ENTER LOW -MOD FUND TOTAL EQUITIES (BALANCE SHEET) REPORTED TO SCO California Redevelopment Agencies - Fiscal Year 2003-2004 HCD-C Sch C (7/l/04) Page 3 of 8 Agency Name Tustin Redevelopment Agencv Excess Surnlus information Pursuant to Section 33080.7 and Section 33334.12(g)(1), report on Excess Surplus that is required to be determined on the first day of afiscal year. Excess Surplus exists when the Adjusted Balance exceeds the Greater of: (1) $1,000,000 or (2) the aggregate amount of tax increment deposited to the Housing Fund during the prior four fiscal years. Section 33334.12(g)(3)(A) and (B) provide that the Unencumbered Balance can be adjusted for: (1) any remaining revenue generated in the reporting year from unspent debt proceeds and (2) if the land was disposed of during the reporting year to develop affordable housing, the difference between the fair market value of land and the value received. The Unencumbered Balance is calculated by subtracting encumbrances from Net Resources Available. "Encumbrances" are funds reserved and committed pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities [Section 33334.12(g)(2)]. - For Excess Surplus calculation purposes, carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the first day of the reporting fiscal year. Determine which is larger: (1) $I million or (2) the total of tax increment deposited over the prior four years. Subtract the largest amount from the Adjusted Balance and, if positive, report the amount as Excess Surplus. 10. Excess Surplus: Complete Colmmna 1 3 4 k S in nalnnl Gtr Fvrrec Cnmhw, fn- 1k. Column 1 Column 2 Column 3 __---- ------- ._.--_. Column 4 �........a ....... Column 5 .............oa u..0 r 1' ` Column 6 i. vcWS D Ucss 3urmus Column i Sum of Tax Current Current Amount 4 Prior and Current Reporting Years Total Tax Increment Deposits to Housing Fund Increment Deposits Over Prior Four FYs Reporting Year I ' Day Adjusted Balance Reporting Year 1" Day Excess Surplus Balances Expended/Encumbered Against FY Balance of Excess Surplus as of End of Reporting Year Remaining Excess Surplus for Each Fiscal Year as of End of Reporting Year 4 Rpt Yrs Ago FY 99-00- $1157549.lff$ 282,279 $1,226,476 $ 0 13 Rnt Yrs Ago �FY 00-01 515996570 $1,393,345 S 0 2 RptYrs Ago FT 01-02 $18127200 $ 727,662 $ 0 1 Rat Yr Ago FY 02-03 $1518840 $ 304,884 $6,915,947 $ 0 CURRENT Sum of Column ? Last Year's Sch C Col 4 minus: larger of Col 3 or $bion Reporting Adiusted Balance Year (report positive S) $ 0 FY 03-04 $6,088,766 $ 638,970 $5,484,214 $ 0 11. Renortino Year Ending, Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance (End of Year) [Page 3, Line 6b] $3,397,271 b. If eligible, adjust the Unencumbered Balance for: (1) Debt Proceeds[33334.12(g)(3)(B)]: - Identify unspent debt proceeds and related income remaining at end of reporting year $ 0 (2) Land Conveyance Losses [(33334.12(g)(3)(A))]: Identify reporting Year losses from sales/grants/leases of land acquired with low -mod funds, if 49% or more of new or rehabilitated units will be affordable to lower-income households $ 0 12. Adjusted Balance (for next Year's determination of Excess Surplus) [Line Ila minus sum of 1 ib(1) and I lb(2)] $3,397,271 Note: Do not enter Adjusted Balance in Col 4. It is to be reported as next vear's 1st day amount to determine Excess Surplus a. if there is remaining Excess Surplus from what was determined on the first day of the reporting year, describe the agency's plan (as specified in Section 33334.10) for transferring, encumbering, or expending excess surplus: b. If the plan described in 12a. was adopted, enter the plan adoption date: mo day y Califonia Redevelopment Agencies - Fiscal Year 2003-2004 ECD -C Sch C'(7/1/04) Page 4 of 8 Agency Name: Tustin Redevelopment Agency Miscellaneous uses of Funds 13. If an amount is reported in 4e., pursuant to Section 33080.4(a)(6), report the total number of very low-, low-, and moderate -income households that directly benefited from expenditures for onsite/offsite improvements which resulted in either new construction, rehabilitation, or the elimination of health and safety hazards. (Note: If Line 4e of this schedule does not show expenditures for improvements, no units should be repotted here.) IncomeHouseholds Level Constructed Households Rehabilitated Households Benefiting from Elimination of Health and Safety Hazard - Duration of Deed Restriction Very Low Newport Avenue 0.4 R-3 1/9/2000 Low Exgt. 8 units for Rehab. W.Preble Drive 0.5 R-3 Moderate 6/30/2005 Exgt. 9 units for Rehab. - 14. If the agency is holding land for future housing development (refer to Line 8b), summarize the acreage (round to tenths, do not report square footage), zoning, date of purchase, and the anticipated start date for the housing development. Site Name/Location* No. of Acres Zoning Purchase Date Estimated Date Available Comments Newport Avenue 0.4 R-3 1/9/2000 6/30/2005 Exgt. 8 units for Rehab. W.Preble Drive 0.5 R-3 1/13/2004 6/30/2005 Exgt. 9 units for Rehab. Please attach a separate sheet of paper listing any additional sites not reported above. 15. Section 33334.13 requires agencies which have used the Housing Fund to assist mortgagors in a homeownership mortgage revenue bond program, or home financing program described in that Section, to provide the following information: a. Has your agency used the authority related to definitions of income or family size adjustment factors provided in Section 33334.13(a)? Yes ❑ No ❑ Not Applicable b. Has the agency complied with requirements in Section 33334.13(b) related to assistance for very low-income households equal to twice that provided for above moderate -income households? Yes ❑ No ❑ Not Applicable ❑X California Redevelopment Agencies — Fiscal Year 2003-2004 HCD-C Sen C (7/1)04) Page 5 of 8 Agency Name: Tustin Redevelopment Agency 16. Did the Agency use non-LMIHF funds as matching funds for the Federal HOME or HOPE program during the reporting period? YES ❑ NO If yes, please indicate the amount of non-LMIHF funds that were used for either HOME or HOPE program support. HOMES HOPE$ 17. Pursuant to Section 33080.4(a)(11), the agency shall maintain adequate records to identify the date and amount of all LMIHF deposits and withdrawals during the reporting period. To satisfy this requirement, the Agency should keep and make available upon request any and all deposit and withdrawal information. DONOTSUBM7TANY DOCUMENTS/RECORDS. Has your agency made any deposits to or withdrawals from the LMIHF? Yes ® No ❑ If yes, identify the document(s) describing the agency's deposits and withdrawals by listing for each document, the following (attach additional pages of similar information below as necessary): Name of document (e.g. ledger, journal, etc.): Name of Agency Custodian (person): Custodian's telephone number: Place where record can be accessed: Name of document (e.g. ledger, journal, etc.): Name of Agency Custodian. (person): Custodian's telephone number: Place where record can be accessed: Ran Nault (714) 573-3061 City of Tustin 18. Use of Other (non Low -Mod Funds) Redevelopment Funds for Housin Please briefly describe the use of any non-LMIHF redevelopment funds (i.e., contributions from the other 80% of tax increment revenue) to construct, improve, assist, or preserve housing in the community. N/A 19. Situestions/ResourceNeeds Please provide suggestions to simplify and improve future agency reporting and identify any training, information, and/or other resources, etc, that would help your agency to more quickly and effectively use its housing or other funds to increase, improve, and preserve affordable housing? 20. Annual Monitoring Reports of Previouslv Completed Affordable Housing Proiects/Pro ams (H&SC 33418) Were all Annual Monitoring Reports received for all prior years' affordable housing projects/programs?: Yes ® No ❑ California Redevclopmem Agencies — Fiscal Year 2003-2004 HCD-C Sch C (7/1/04) Page 6 of 9 DRAFT TUSTIN COMMUNITY REDEVELOPMENT AGENCY BASIC FINANCIAL STATEMENTS WITH REPORT ON AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS JUNE 30, 3004 TUSTIN COMMUNITY REDEVELOPMENT AGENCY TABLE OF CONTENTS June 30, 2004 Pane Number Independent Auditors' Report 1 - 2 Management's Discussion and Analysis 3 - 7 Basic Financial Statements: Statement of Net Assets 8 Statement of Activities 9 Balance Sheet - Governmental Funds 10 - 11 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 12 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues. Expenditures and Chances in Fund Balances of Governmental Funds to the Statement of Activities 1 c Notes to Basic Financial Statements 16-26 Supplementary Information: Computation of Low/Moderate Income Housing- Funds - Excess/Surplus 27 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditine Standards 28 - 29 October 13, 2004 I DEPENDENTAUDITORS' REPORT The Board of Directors Tustin Community Redevelopment Agency Tustin. California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Tustin Community Redevelopment Agency (a component unit of the City of Tustin, California), as of and for the year ended June 30. 2004, which collectively comprise the Agency's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Agency'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 basic 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 basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Tustin Community Redevelopment Apte), as of June 30, 2004, 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. -I- In accordance with Government AuditinH Standards, we have also issued our report dated October 13, 2004 on our consideration of the Tustin Community Redevelopment Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws. resulations, 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 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Tustin Community Redevelopment Agency's basic financial statements. The computation of the excess surplus of the low/moderate income -housing funds is presented for additional analysis and is not a required part of the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. TUSTIN COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF NET ASSETS June 30, 2004 ASSETS: Cash and investments (Note 2) Taxes receivable Prepaid items and deposits Loans receivable (Note 3) Propeny held for resale Restricted assets: Investments with fiscal agent Capital assets, not depreciated (Note 4) Capital assets, depreciated, net (Note 4) TOTAL ASSETS LIABILITIES: - Accounts payable Interest payable Deferred revenue Due to the Citv of Tustin Noncurrent liabilities: Due within one year (Note 5) Due in more than one year (Note 5) TOTAL LIABILITIES NET ASSETS: Invested in capital assets. net of related debt Restricted for: Debt service Community development Unrestricted TOTAL NET ASSETS See independent auditors' report and notes to basic financial statements. -8- Governmental Activities $ 26373.050 105.521 30,000 1.430.875 2.9ff'000 1.677.181 1,300.000 9.388.874 43-110.501 9,,299 62.247 1.357,968 4,305.597 920,000 14 990 000 21J^9 i I1 1.677,181 9.285,' - 5 10.518.874 $ 21.481.390 Functions/Programs PRIMARY GOVERNMENT: Governmental activities: Community development Interest on Ions -term debt Total Governmental activities TUSTIN COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF ACTIVITIES For the year ended June 30, 2004 $ 1.990.442 $ $ 877.511 $ 2,867.953 $ - $ - S - GENERAL REVENUES: Taxes: Tax increment Rental income Other revenues Investment earnings Total general revenues CHANGE IN NET ASSETS NET ASSETS -BEGINNING OF YEAR NET ASSETS - END OF YEAR See independent auditorsreport and notes to basic financial statements. 9 $ (1.990,442) (87751 1 (2,867,953) 5,867.056 85,076 136.192- 36S.576 6.456.900 3,588.94 7 —17.891.44-,- 5 .892.4435 21.481390 Net(Expense) Revenue and Changesin Program Revenues Net Assets Operating Capital Charges for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities $ 1.990.442 $ $ 877.511 $ 2,867.953 $ - $ - S - GENERAL REVENUES: Taxes: Tax increment Rental income Other revenues Investment earnings Total general revenues CHANGE IN NET ASSETS NET ASSETS -BEGINNING OF YEAR NET ASSETS - END OF YEAR See independent auditorsreport and notes to basic financial statements. 9 $ (1.990,442) (87751 1 (2,867,953) 5,867.056 85,076 136.192- 36S.576 6.456.900 3,588.94 7 —17.891.44-,- 5 .892.4435 21.481390 TUSTIN COMMUNITY REDEVELOPMENT AGENCY BALANCE SHEET- GOVERNMENTAL FUNDS June 30,200z LIABILITIES AND FUND BALANCES LLkBILITIES Accounts payable and accrued liabilities Debt Service Funds Due to other funds — South Central Tustin Center - - Proiect Area Project Area ASSETS - - FUND BALANCES (DEFICITS): Cash and investments S 11.089,332 S 4,376.663 Investments with fiscal a_eent - 1,677.181 Taxes receivable 21,355 43.398 Deposit - TOTAL LIABILITIES AND FUND BALANCES Due from other funds 376,512 - Loans receivable - - Land held for resale - - TOTAL ASSETS $ 11.487199 $ 6,097 242 LIABILITIES AND FUND BALANCES LLkBILITIES Accounts payable and accrued liabilities - Due to other funds — _ - Due to City of Tustin - - Deferred revenue - - TOTAL LIABILITIES - - FUND BALANCES (DEFICITS): Reserved for debt service 11,487,199 6.097,242 Reserved for land held for resale - - - Reserved for low income housim_ - - Unresened- Undesignated - - TOTAL FUND BALANCES (DEFICITS? 11,487.199 6.097.24'_ TOTAL LIABILITIES AND FUND BALANCES S 11.487199 $ 6.097.24= See independent auditorsreport and notes to basic financial statements. -10- S 3.512 S 8,865 Canital Projects Funds $ 15.547 5 812 South South Central - Town Center 376,5E Other Total Central Low Income Town Center Low Income Marine Base Governmental Governmental Project Area Housine Project Area Housing Proiect Area Fund Funds - S 5517,605 - S 3,Z20.65', S 143.670 $ - $ 26.373050 - - - - - - 1.677,181 - 21.478 - 19,290 - - 105.521 15.000 15.000 30,000 - - - - - - 376512 - 1.219,034 77,190 134,651 - - 1,430.875 1545.000 705,000 855.000 - - - 1905.000 $ 3,570.123 $ 7278.117 S 93^_.190 S 3,389598 $ 143.670 $ - $ 3'_.898.139 S 3.512 S 8,865 S 64.563 $ 15.547 5 812 Is - S 93299 - 376,5E - - 376,512 3.000.000 - - - 1.000,000 305,597 4,305,597 - 1.223.317 134.651 - 1,357,968 3.003.512 1232.182 441,075 150.198 7.000.812 305.597 6.133,476 - - - - - - 17,584.441 1.345,000 - 705.000 855.000 - - - 2,905,000 - 5.340,935 - 3.239.400 - - 8,584335 (778.389) - (363.885) - (857.142) (305597) (2305,013) 566.611 6.045,935 491.115 3239,400 (857.142) (305.597) 26,764.763 $ 3.570.12: S 7.378.117 S 932.190 S 3,389.598 S 143.670 $ - S 32.898.139 TUSTIN COMMUNITY REDEVELOPMENT AGENCY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS June 30, 2004 Amounts reported for governmental activities in the Statement of Net Assets are different because: Fund balances for governmental funds $ 26.764.763 When capital assets (land, buildings, equipment) that are to be used in governmental activities are purchased or constructed, the costs of those assets are reported as expenditures in governmental funds. However, the Statement of Net Assets includes those capital assets among the assets of the Agency as a whole. Beginning Balance, net depreciation S 8.819,358 Current year additions 2,090.000 Current year deletions - Current year depreciation (220.484) Ending Balance. net depreciation $ 10,688.874 10,688,874 Lone -term liabilities applicable to the Agency's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term. are reported in the Statement of Net Assets. Tax allocation bonds (15,910.000) Interest on long-term debt is notaccrued in governmental funds. but rather is recognized as an expenditure when due. (612-1-, Net assets of governmental activities S 21-481.390 See independent auditorsreport and notes to basic financial statements. -12- TUSTIN COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUND TYPES For the year ended June 30, 2004 REVENUES: Taxes Investment income Rental income Other revenues TOTALREVENUES EXPENDITURES: Current: General government Charges for City of Tustin Educational Revenue Augmentation Fund payment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES (DEFICITS) - BEGINNING OF YEAR FUND BALANCES (DEFICITS) - END OF YEAR See independent auditors' report and notes to basic financial statements. -13. Debt Service Funds South Central Tustin Center Proiect Area Project Area $ 2.167.824 S 2,491435 98,992 134,717 2266.816 27,732 59,314 126.468 48.600 2.627.152 28,396 272.585 129.795 890.00() 262114 2,089.306 2.004.702 537.846 9.482.497 - 5.559396 S 11.487.199 $ 6.097 242 14- Capital Projects Funds South South Central Town Center Other Total Central Low Income Town Center Low Income Marine Base Governmental Governmental Project Area HousmE Proiect Area Housinn Project Area Fund Funds $ - S 541.956 Is - $ 664,847 $ - $ - $ 5,867956 - 87.145 - 47,723 - - 368,577 15.073 70.003 - 85,076 - 80.314 29 55.849 - - 136.192 15.073 779.418 29 768.413 - - 6.456.901 317.910 107,574 483.507 111.546 28.587 - 1,105.252 - - - - 331.899 39,937 - 36,609 - 332,809 - - 590.000 1.500-000 - - 2,090.000 - - - - - 890.000 38.392 - 4.231 - - 20.798 880.551 356,302 147,511 1.077.7,381.648,155 28,587 20.798 5.630,5 11 (341,229) 631,907 (1977,709) (879,742) (28,587) (20,798) 826.390 907.840 5.414.028 1.568.824 4.119.142 (828555) (284.799) ^_5938373 $ 566.611 $ 6.045.935 $ 491,115 $ 3,239.400 $ (857.742) $ (305,597) S26.764.76? 14- TUSTIN COMMUNITY REDEVELOPMENT AGENCY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES June 30, 2004 Amounts reported for governmental activities in the Statement of Activities are different because: Net Change in fund balances - total governmental funds When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital expenditures $(2.090.000) exceeded depreciation $(220.484) in the current period. Repayment of long-term debt is reported as expenditures in governmental funds, and, thus. has the effect of reducing fund balance 'because current financial resources have been used. For the Agency as a whole, however, the principal payments reduce the liabilities in the Statement of Net Assets and do not result in an expense in the Statement of Activities. 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: . Net chance in accrued interest for the current period. Chance in net assets of governmental activities See independent auditors' report and notes to basic financial statements. - 15 - 826.390 1,869,516 890,000 3,041 $ 3.588,947 TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Description of Reporting Entity: The Tustin Community Redevelopment Agency, a component unit of the City of Tustin, was established October 20. 1976, pursuant to the State of California Health and Safety Code. Section 33000, entitled "Community Redevelopment Law". Its purpose is to prepare and carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Tustin. The City provides management assistance to the Agency, and the members of the City Council also act as the governing body of the Agency. In accordance with GASB Code Section 2100, "Defining the Reporting Entity', the Agency's financial activities will be included (blended) with the financial activities of the City of Tustin for reporting purposes. Tax Increment Financing The A.-enev's primary source of revenue, other than loans and advances from the City, comes from property taxes. Property taxes allocated to the Agencv are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency. All taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Agency has no power to levy and collect taxes, and any legislative property tax reduction might correspondingly reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, long-term debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would necessarily increase the amount of tax revenues that would be available to pay principal and interest on long-term debt. See independent auditors' report. 16- TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30. 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (CONTINUED): Measurement Focus. Basis of Accounting and Financial Statement Presentation: The basic financial statements of the Agency are composed of the following: • Govemment-wide financial statements • Fund financial statements • Notes to the basic financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncement. FASB pronouncements issued after November 30, 1989 are not followed in the preparation of the accompanying financial statements. Government -wide Financial Statements: The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the Agency. For the most part.. the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support. The Tustin Community Redevelopment Agency has no business -type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include I) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. See independent auditors' report. 17- TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus Basis of Accounting and Financial Statement Presentation (Continued): Fund Financial Statements: The accounting system of the Agency is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets, liabilities, fund equit}, revenues, and expenditures. Governmental resources 'are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Agency's governmental funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental funds. The funds of the A$encv are described below: Governmental Fund Types: Debt Service Funds are used to account for the current interest and principal payments on the long-term debt of the Agency. Capital Projects Funds are used to account for resources used in developing the project areas as well as the administrative costs incurred in sustaining Agenev activities. The Agency's major governmental funds are as follows: South Central Project Area Debt Service Fund is used to account for the tax increment revenues and expenditures of the South Central Project Area. Tustin Center Project Area Debt Service Fund is used to account for tax increment revenues and expenditures of the Tustin Center Project Area. South Central Project Area Capital Projects Fund is used to account for the fiscal activities of the South Central Project Area of the Tustin Community Redevelopment Agency. See independent auditors' report. -18- TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus. Basis of Accounting and Financial Statement Presentation (Continued): Governmental Fund Types (Continued): The Agency's major governmental funds (Continued): South Central Low Income Housing Capital Projects Fund is used to account for the redevelopment requirement to set-aside 20% of available tax increment, and to use those funds only for the benefit of providing low and moderate income housing to residents of the South Central Project Area. Town Center Project Area Capital Projects Fund is used to account for the fiscal activities of the Town Center Project Area of the Tustin Community Redevelopment Agency. Town Center Low Income Housing Capital Proiects Fund is used to account for the redevelopment requirement to set-aside 20% of available tax increment, and to use those funds only for the benefit of providing low and moderate income housing to residents of the Town Center Project Area. Marine Base Project Area Capital Projects Fund is used to account for the fiscal activities of the Marine Base Project Area. Measurement Focus: Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. In the government -wide Statement of Net Assets and the Statement of Activities, activities are presented using the economic resources measurement focus. Under the economic resources mcasurement focus. all (both current and long-term) economic resources and obligations of the government are reponed. See independent auditors' report. -19- TUSTLN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus. Basis of Accountin_ and Financial Statement Presentation (Continued): Measurement Focus (Continued): In the fund financial statements, all governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of "available spendable resources Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Noncurrent portions of long-term receivables are reported on the governmental fund balance sheets in spite of their measurement focus. However, special reporting treatments are used to indicate that they should not be considered "available spendable resources", since they do not represent net current assets. Recognition of governmental fund type revenue represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other' long-term receivables are offset by fund balance reserve accounts. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transaction are recognized in accordance with the requirements .of`GASB Statement No. 33. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as a fund asset. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. See independent auditors' report. -20- TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30. 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus. Basis of Accounting and Financial Statement Presentation (Continued): Basis of Accounting: In the government -wide Statement of Net Assets and Statement of Activities, the governmental activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used, regardless of the timing o:` related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e.. the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when and enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntar; nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Budgetary Data: The budgets of the Agency are primarily "long-term" budgets which emphasize capital outlay plans extending over one year. Because of the long-term nature of redevelopment projects. "annual' budget comparisons are not considered meaningful and accordingly, no budgetary information is included in the accompanying financial statements. See independent auditors' report. -21- TUSTIN COMMUNITY REDEVELOPMENTAGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2004 1. REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Investments: Investments are stated at fair value (the value at which a financial instrument could be exchaneed in a current transaction between willing parties, other than a forced or liquidation sale), except for certain investments which have a remaining maturity of less than one year when purchased, which are stated at amortized cost. Capital Assets: Capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of 1 year or more. The Agency does not own any infrastructure assets. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government -wide financial statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statement of net assets. The range of lives used for depreciation purposes for each fixed asset class are as follows: Building 50 years Furniture, fixtures and equipment 10 years Land Held for Resale: Land held for resale is carried at the lower of cost or estimated realizable value. The Capital Projects Fund fund balance is reserved in an amount equal to the carrying value of land held for resale because such assets are not available to finance the Agency's current operations. 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 effect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. See independent auditors' report. 11 - TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2004 2. CASH AND INVESTMENTS: Cash and investments reported in the accompanying financial statement consisted of the following: • Cash and Investments pooled within the City of Tustin • Investments with fiscal agent Cash and investments are reported as follows in the Statement of Net Assets: Cash and investments $ 26,373,050 Restricted assets: Investments with fiscal agent 1.677.181 S X8:050.231 Cash and investments at -June 30, 2004 consisted of the following: Pooled with Citv of Tustin $ 26,373,050 Investments held by fiscal agent: Investment Aareement 1,677,013 Money market mutual funds 168 S 28.050.231 The Agency's funds are pooled with the City of Tustin's cash and investments in order to generate optimum interest income and reduce administrative costs. The Agency has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, may be invested in accordance with the ordinance, resolutions or indentures specifying the types of investments its trustees or fiscal agents may make. Cash and Investments with Fiscal Agent The cash and investments with fiscal agent consisted of $168 in money market mutual funds and 51,677,013 in investment agreements which are not required to be categorized under the interpretative guidelines of Government Accounting Standards Board Statement No. 3. The additional information required by GASB Statement No. 3 related to the cash and investments pooled with the City is available in the annual report of the City. See independent auditors' report. _23_ TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED.) June 30, 2004 3. LOANS RECEIVABLE: Commercial Loans The Agency has commercial loans to small businesses for making improvements. At June 30. 2004, the amount due to the Agency under this program totaled $327,190. Home Improvement Loans The Agency has provided a home improvement program to low and moderate income households. These loans are payable to the Agency in ten years or when borrower sells their property. whichever comes first. The total outstanding balance as of June 30, 2004 was $434.118. Homebuver Program Loans The Agency has provided down payment assistance to qualified first time homeliuvers. These loans are payable to the City in ten years or when borrower sells their property, whichever comes first. The total outstanding balance as of June 30, 2004 was $669,567. :. CAPITALASSETS: Thefollowing is a summary of the capital asset activity for the year endedJune30, 2004: Balance Balance July 1. 2003 Additions Deletions June 30. 2004 Capital assets, not being depreciated: Land and improvements $ S 1.300.000 S - S 1.300.000 Capital assets, being depreciated: Building -Civic Center Furniture, fixtures and equipment Total capital assets. being depreciated Less: accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net See independent auditors' report. 11,024,198 790,000 443.998 11,468,196 790,000 (2.648.838) (220.484) 8.819.358 569.516 - 11.8]4.198 443.998 12,258,196 (2.869.322) 9.388.874 S 8.819.358 $ 1.869.516 $ $ 10.688 874 24- TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30. 2004 5. LONG-TERM LIABILITIES: The following is a summary of the long-term liabilit57 activity for the year ended June 30, 2004: Balance July 1, 2003 Tax allocation bonds 516.800.000 Tax Allocation Bonds: Balance June 30. Additions Retirements 2004 Due Within One Year $ - S 890.000 515.910 000 $ 220.00 On July 1, 1998, the Tustin Community Redevelopment Agency issued $20,805,000 Tax Allocation Refunding Bonds to refund the Agency's Town Center Area Redevelopment Project Tax Allocation Refundina'Bonds, Series 1987 in aggregate principal amount of $5.145,000 and the Agency's Town Center Area Redevelopment Project Subordinate Tax Allocation Bonds, Series 1991 in aggregate principal amount of $12,880.000. The net proceeds of $20,192.172 (after payment of $552.424 in underwriting fees, insurance, and other issuance costs) plus an additional $805,500 of 1987 Series sinkine fund monies were used to purchase U.S. -government securities. Securities for the 1987 and 1991 bonds were deposited in an irrevocable trust with an escrow agent to provide for all future payments when Tax Allocation Bonds. Series 1987 and 1991 are called for redemption. As a result, the 1987 Tax Allocation Refunding Bonds and 1991 Tax Allocation Bonds have been removed from the lona-term liabilities. As of June 30, 2004. the 1987 and 1991 bonds have been fully redeemed. Serial bonds are payable in annual installments ranging from $775,000 commencing on December 1, 1998. Interest is payable semiannually on June 1 and December 1, with rates ranging from 3.5% to 5.0% per annum. The 'bonds maturing on or after December 1. 2009, are subject to redemption prior to maturity as a whole or in part, at the option of the Agency, on any date on or after December 1, 2008 at prices ranging from 100% to 101% of principal. See independent auditors' report. - 25 - S 15-910.000 TUSTIN COMMUNITY REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2004 5, LONG-TERM LIABILITIES (CONTINUED): The annual requirements to amortize the tax allocation refunding bonds are as follows: Year Endina June 30, 2005 2006 2007 2008 2009 2010-2014 2015-2017 Totals Principal $ 920,000 960,000 1,000,000 1.055.000 1,105.000 6,305:000 4.565.000 $ 15910.000 6. COMMITMENTS AND CONTINGENCIES: Interest $ 727,640 687,680 642,040 _594.358 547,365 1,907.,778 339.905 $ 5.446J66 Total $ 1,647,640 1,647.680 1,642,040 1,649,358 1,652,365 8,212,778 4.904,905 3 21.356.766 The California Health and Safety Code requires redevelopment agencies to set aside 20 percent of their tax increment from project areas established before 1976 for low and moderate income housing. Between fiscal years 1985-86 and 1991-92, the Tustin Community Redevelopment Agency deferred a total of $2,776,042 from its low and moderate -income housing obligation. On February 1, 1993; the Agency adopted a plan to eliminate the deficit in subsequent years. 7. REQUIRED INDIVIDUAL FUND DISCLOSURES: The Marine Base Debt Service Fund and Marine Base Project Area Capital Projects Fund had deficit fund balances of $305.597 and $857,142, respectively, as of June 30. 2004. The Agency's manasement intends to eliminate this deficit fund balance from future revenues or by transferring funds from other Agency funds. See independent auditors' report. -26- TUSTIN REDEVELOPMENT AGENCY COMPUTATION OF LOW/MODERATE INCOME HOUSING FUNDS - EXCESS/SURPLUS Julv 1, 2003 All Project Areas OPENING FUND BALANCE- JULY 1, 2003 S 9.533,170 LESS OTHER RECEIPTS (INTEREST INCOME AND OTHER REVENUES]: 2002-2003 $ 491.931 2001-2002 692.102 2000-2001 601,770 1999-2000 260.777 (2.046.580) ADJUSTED OPENING FUND BALANCE - JULY 1, 2003 7,486590 LESS UNAVAILABLE AMOUNTS: Amount encumbered Land held for resale AVAILABLE LOW/MODERATE INCOME HOUSING FUNDS 7.486.590 LIMITATION (GREATER OF $1,000.000 OR FOUR YEARS SET-ASIDE): Set-aside for last four years: 2001-2002 $ 1,045,392 2000-2001 1.120,619 1999-2000 997.885 1998 -1999 896.772 TOTAL SET-ASIDE FOR LAST FOUR YEARS $ 4.060.668 Base limitation $ 1,000,000 GREATER AMOUNT 4.060.668 COMPUTED EXCESS/SURPLUS - JULY 1. 2003 $ 3.425.922 (a) Reflects Help Funds $1,150.000 indebtedness created February 20. 2001 (RDA Resolution No. 01-2) and $350,000 reserved for Heritage Place, LLC pursuant to Development and Disposition Agreement sinned on April 11, 2002 and Residential Rehabilitation Program encumbrances of $29361. See independent auditors' report. 21- z October 13. 2004 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCLAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of the Tustin Community Redevelopment Agency Tustin. California We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Tustin Community Redevelopment Agency, a component unit of the City of Tustin, California as of and for the year ended June 30, 2004, which collectively comprise the Agency's basic financial statements and haveissued our opinion report thereon dated October 13. 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 Auditins Standards. issued by the Comptroller General of the United States, Internal Control Over Financial ReportinL In planning and performing our audit, we considered the Tustin Community Redevelopment Agency'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 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 caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. _L8_ Compliance As part of obtaining reasonable assurance about whether the Tustin Community Redevelopment Agency's financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in the Guidelines For Compliance Audits of California Redevelopment Agencies, issued by the State Controller's Office and as interpreted in the Suggested Auditing Procedures for Accompanvind 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended for the. information and use of the Board of Directors and management of tine Tustin Community Redevelopment Agency and the State Controller's Office, Division of Accounting and Reporting and is not intended to be and should not be used by anyone other than these specified parties. -?9 -