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REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA, CALIFORNIA
FINANCIAL STATEMENTS
JUNE 30, 2010
203 North Brea Blvd
Suite 203
Brea, CA 92821
Lance Soll & Lunghard, LLP
41185 Golden Gate Circle
Suite 103
Murrieta, CA 92562
REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA, CALIFORNIA
FINANCIAL STATEMENTS
JUNE 30, 2010
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
JUNE 30, 2010
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS' REPORT
Financial Audit ................................................................................................................................... 1
Compliance Audit ................................................................................................................................3
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Assets ..................................................................................................................5
Statement of Activities .....................................................................................................................7
Fund Financial Statements:
Balance Sheets - Governmental Funds ..........................................................................................8
Reconciliation of the Balance Sheet of Government Funds
to the Statement of Net Assets ........................................................................................................11
Statement of Revenues, Expenditures
and Changes in Fund Balances ......................................................................................................12
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities .....................................................................................................................14
Budgetary Comparison Statement – Combined Low and
Moderate Housing Fund ................................................................................................................. 15
Notes to Financial Statements ........................................................................................................... 17
COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Project Area Balance Sheet - All Governmental Funds ............................................... 38
Combining Project Area Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Funds .................................................................. 40
Computation of Low and Moderate Income Housing Funds
Excess/Surplus ............................................................................................................................... 42
INDEPENDENT AUDITORS' REPORT
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of Azusa, California
We have audited the accompanying financial statements of the governmental activities and each major
fund of the Redevelopment Agency of the City of Azusa (Agency), a component unit of the City of Azusa,
California, as of and for the year ended June 30, 2010, which collectively comprise the Agency's basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
the Redevelopment Agency of the City of Azusa'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 Government Auditing Standards issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management as
well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Redevelopment
Agency of the City of Azusa as of June 30, 2010, and the respective changes in financial position thereof
and the respective budgetary comparison for the combined Low and Moderate Housing Special Revenue
Fund for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
In accordance with Government Auditing Standards issued by the Comptroller General of the United
States, we have also issued our report dated December 20, 2010, on our consideration of the
Redevelopment Agency of the City of Azusa's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of
our audit.
The Agency has not presented a management’s discussion and analysis that accounting principles
generally accepted in the United States of America has determined is necessary to supplement, although
not required to be part of, the basic financial statements.
Lance, Soll & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
Brandon W. Burrows, CPA
Donald L. Parker, CPA
Michael K. Chu, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of Azusa, California
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Agency's basic financial statements. The combining project area statements and
computation of low and moderate income housing funds excess/surplus are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
December 20, 2010
2
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of Azusa, California
We have audited the financial statements of the governmental activities and each major fund of the
Redevelopment Agency of the City of Azusa as of and for the year ended June 30, 2010, which
collectively comprise the Redevelopment Agency of the City of Azusa’s basic financial statements and
have issued our report thereon dated December 20, 2010. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Redevelopment Agency of the City of Azusa’s
internal control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on
the effectiveness of the Agency’s internal control over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of the Agency’s internal c ontrol over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect misstatements on a timely basis. A material weakness is a deficiency, or combination of
deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of
the Redevelopment Agency of the City of Azusa’s financial statements will not be prevented, or detected
and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
Lance, Soll & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
Brandon W. Burrows, CPA
Donald L. Parker, CPA
Michael K. Chu, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of Azusa, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the Agency 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 included those provisions of
laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment
Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for
Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental
Accounting and Auditing Committee of the California Society of 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
issued by the Comptroller General of the United States and under the Guidelines for Compliance Audits
of California Redevelopment Agencies, issued by the State Controller.
This report is intended for the information of the Audit committee, management and the State Controller.
However, this report is a matter of public record and its distribution is not limited.
December 20, 2010
4
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
STATEMENT OF NET ASSETS
JUNE 30, 2010
Governmental Activities
Assets:
Cash and investments 3,647,386$
Receivables:
Tax increment 925,554$
Accounts 3,555
Interest receivable 14,387
Loans 2,042,426
Total Receivables 2,985,922
Due from other governments 731,522
Land held for resale (net)42,105,847
Deferred charges 1,793,491
Prepaid costs 50
Restricted assets:
Cash and investments with trustees 4,124,223
Capital assets (Net of Depreciation):
Land and improvements 1,325,286
Total Capital Assets 1,325,286
Total Assets 56,713,727
Liabilities:
Accounts payable and accrued expenses 1,688,033
Due to other governments 6,381,737
Other current liabilities 32,862
Long-term liabilities:
Due within one year 1,228,442
Due in more than one year 111,214,368
Total Long-Term Liabilities 112,442,810
Total Liabilities 120,545,442
Net Assets:
Invested in capital assets, net of related debt 1,325,286
Restricted for:
Community development 12,793,201
Unrestricted (77,950,202)
Total Net Assets (63,831,715)$
See Notes to Financial Statements 5
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6
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Net (Expense)
Revenues and
Changes in
Operating Capital Net Assets
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Governmental Activities:
General government 1,831,130$ -$ -$ -$ (1,831,130)$
Community development 5,691,213 - - - (5,691,213)
Interest on long-term debt 6,816,391 - - - (6,816,391)
Contributions to other governments 2,491,858 - - - (2,491,858)
Other 170,040 - - - (170,040)
Total Governmental Activities 17,000,632$ -$ -$ -$ (17,000,632)
General Revenues:
Taxes (net of pass-through payments)5,021,545
Intergovernmental 1,114,895
Use of money and property 413,603
Total General Revenues 6,550,043
Change in Net Assets (10,450,589)
Net Assets at Beginning of Year (52,820,033)
Restatement of Net Assets (561,093)
Net Assets at End of Year (63,831,715)$
Program Revenues
See Notes to Financial Statements 7
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
Special Capital Capital Debt
Revenue Projects Projects Service
General
Agency
Fund
Low and
Moderate General Tax
Housing Agency Project Increment
Assets:
Cash and investments 160,420$ 1,550,586$ 1,012,356$ 423,722$
Cash and investments with trustee - - - -
Receivables:
Tax increment - - - 925,512
Accounts - - 3,555 -
Interest receivable 1,226 212 2,143 2,469
Loans 1,146,450 - 895,976 -
Due from City - - 450,000 281,522
Land held for resale 11,582,075 - 31,400,002 -
Allowance for decline in value - - (876,230) -
Prepaid costs - 50 - -
Advances to other funds 1,483,635 - - -
Total Assets 14,373,806$ 1,550,848$ 32,887,802$ 1,633,225$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 73,842$ 52,868$ 148,103$ 151,354$
Due to city 331,307 1,521,881 127,688 3,684,798
Due to other governments 29,006 - - 261,418
Deferred revenue 1,146,450 - 803,697 305,345
Salaries and benefits payable - 32,862 - -
Advances from other funds - - - 1,483,635
Total Liabilities 1,580,605 1,607,611 1,079,488 5,886,550
Fund Balances:
Reserved:
Land held for resale 11,582,075 - 30,523,772 -
Loans and advances receivable 1,483,635 - 92,279 -
Prepaid costs - 50 - -
Unreserved:
Designated:
Debt service - - - -
Continuing projects (272,509) - 1,192,263 -
Undesignated - (56,813) - (4,253,325)
Total Fund Balances 12,793,201 (56,763) 31,808,314 (4,253,325)
Total Liabilities and
Fund Balances 14,373,806$ 1,550,848$ 32,887,802$ 1,633,225$
Combined
Merged
Project Area
Merged
Project Area
See Notes to Financial Statements 8
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
Assets:
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest receivable
Loans
Due from City
Land held for resale
Allowance for decline in value
Prepaid costs
Advances to other funds
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Due to city
Due to other governments
Deferred revenue
Salaries and benefits payable
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Land held for resale
Loans and advances receivable
Prepaid costs
Unreserved:
Designated:
Debt service
Continuing projects
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
Debt
Service
Other Total
Governmental Governmental
Bonds Funds Funds
381,134$ 119,168$ 3,647,386$
4,124,223 - 4,124,223
- 42 925,554
- - 3,555
8,232 105 14,387
- - 2,042,426
- - 731,522
- - 42,982,077
- - (876,230)
- - 50
- - 1,483,635
4,513,589$ 119,315$ 55,078,585$
-$ 4,625$ 430,792$
- - 5,665,674
381,103 44,536 716,063
- - 2,255,492
- - 32,862
- - 1,483,635
381,103 49,161 10,584,518
- - 42,105,847
- - 1,575,914
- - 50
4,132,486 - 4,132,486
- 79,841 999,595
- (9,687) (4,319,825)
4,132,486 70,154 44,494,067
4,513,589$ 119,315$ 55,078,585$
Merged
Project Area
See Notes to Financial Statements 9
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10
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2010
Fund balances of governmental funds 44,494,067$
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.1,325,286
Deferred revenue is present in governmental fund financial statements to
indicate that receivables are not available currently; however, in the Statement of
Net Assets these deferrals are eliminated.2,255,492
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Unamortized debt issuance costs - amortized over life of new bonds 1,793,491
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds.
Bonds payable (55,814,889)
Developer loans (9,366,038)
Loans from City (48,010,706)
Other debt (93,442)
Unamortized net original issue discounts and (premiums)842,265
Accrued interest payable for the current portion of interest due on Tax Allocation
Bonds has not been reported in the governmental funds.(1,257,241)
Net assets of governmental activities (63,831,715)$
See Notes to Financial Statements 11
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Special Capital Capital Debt
Revenue Projects Projects Service
General
Agency
Combined Fund
Low and
Moderate General Tax
Housing Agency Project Increment
Revenues:
Taxes and assessments -$ -$ -$ 9,272,173$
Use of money and property 76,979 2,595 209,058 12,756
Miscellaneous revenue 1,337 18,259 12,072 154
Total Revenues 78,316 20,854 221,130 9,285,083
Expenditures:
Current:
General government 84,066 1,166,519 504,977 -
Community development 431,913 - 84,526 -
Capital outlay - 200,086 365,347 1,089,722
Debt service 149,793 56,812 7,640,866 2,878,099
Other expenditures - - 55,967 -
Total Expenditures 665,772 1,423,417 8,651,683 3,967,821
Excess (Deficiency) of Revenues
Over (Under) Expenditures (587,456) (1,402,563) (8,430,553) 5,317,262
Other Financing Sources (Uses):
Transfers in 1,596,331 1,453,068 12,757 315,907
Transfers out (1,766,221) - (315,907) (5,729,301)
Long-term debt issued - - 4,400,868 2,105,396
Pass-through agreement payments - - - (2,863,379)
Gain (loss) on sale of land held for resale - - (3,519,705) -
Payment to Educational Revenue
Augmentation Fund - - - (2,450,602)
Contributions from (to) City - (107,695) (38,200) -
Total Other Financing
Sources (Uses):(169,890) 1,345,373 539,813 (8,621,979)
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses (757,346)$ (57,190)$ (7,890,740)$ (3,304,717)$
Fund Balances:
Beginning of Year, as previously reported 12,134,412$ 427$ 22,873,262$ 467,527$
Restatements 1,416,135 - 16,825,792 (1,416,135)
Beginning of Year, as restated 13,550,547 427 39,699,054 (948,608)
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses (757,346) (57,190) (7,890,740) (3,304,717)
End of Year 12,793,201$ (56,763)$ 31,808,314$ (4,253,325)$
Merged
Project Area
Merged
Project Area
See Notes to Financial Statements 12
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Revenues:
Taxes and assessments
Use of money and property
Miscellaneous revenue
Total Revenues
Expenditures:
Current:
General government
Community development
Capital outlay
Debt service
Other expenditures
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Pass-through agreement payments
Gain (loss) on sale of land held for resale
Payment to Educational Revenue
Augmentation Fund
Contributions from (to) City
Total Other Financing
Sources (Uses):
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses
Fund Balances:
Beginning of Year, as previously reported
Restatements
Beginning of Year, as restated
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses
End of Year
Debt
Service
Other Total
Governmental Governmental
Bonds Funds Funds
-$ 160,373$ 9,432,546$
45,511 535 347,434
- - 31,822
45,511 160,908 9,811,802
- - 1,755,562
- - 516,439
- - 1,655,155
4,466,312 335,008 15,526,890
- - 55,967
4,466,312 335,008 19,510,013
(4,420,801) (174,100) (9,698,211)
4,465,441 78 7,843,582
- (32,153) (7,843,582)
- 335,008 6,841,272
- (96,730) (2,960,109)
- - (3,519,705)
- (41,256) (2,491,858)
- - (145,895)
4,465,441 164,947 (2,276,295)
44,640$ (9,153)$ (11,974,506)$
4,087,846$ 97,609$ 39,661,083$
- (18,302) 16,807,490
4,087,846 79,307 56,468,573
44,640 (9,153) (11,974,506)
4,132,486$ 70,154$ 44,494,067$
Merged
Project Area
See Notes to Financial Statements 13
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
GOVERNMENTAL FUNDS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Net change in fund balances - total governmental funds (11,974,506)$
Amounts reported for governmental activities in the statement of activities differ
because:
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net assets.8,888,411
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Amortization for current fiscal year (81,904)
Unamortized premium or discounts on bonds issued are revenue or expenditures
in the governmental funds, but these are spread to future periods over the life of
the new bonds:
Amortization for current fiscal year (34,458)
Collections on receivables and loan transactions offset by deferred revenue are
reported as revenue and expenditures in governmental funds; however, they do not
provide revenue or expenses in the statement of activities.66,169
Governmental funds report capital outlay as expenditures. However, in the
statement of activities the cost of those assets in capitalized and allocated
over their estimated useful lives through depreciation expense:
Depreciation (58,399)
Proceeds of debt is revenue in the governmental funds, but these are additions
to the statement of net assets.
Loans (6,841,272)
Accreted interest on tax allocation bonds (83,688)
Compensated absences (17,083)
Revenues reported in the governmental funds which were previously
deferred and meet the revenue recognition criteria currently and, therefore,
are not reported as revenues in the Statement of Activity.(335,997)
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:
Current accrual of interest due on bonds (1,257,241)
Prior year accrual of interest due on bonds 1,279,379
Change in net assets of governmental activities (10,450,589)$
See Notes to Financial Statements 14
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
BUDGETARY COMPARISON STATEMENT
COMBINED LOW AND MODERATE HOUSING FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 , as restated 2,814,358$ 2,814,358$ 13,550,547$ 10,736,189$
Resources (Inflows):
Use of money and property 25,000 25,000 76,979 51,979
Other 10,000 10,000 1,337 (8,663)
Transfers from other funds 3,162,330 3,162,330 1,596,331 (1,565,999)
Amounts Available for Appropriations 6,011,688 6,011,688 15,225,194 9,213,506
Charges to Appropriation (Outflow):
General government 245,500 245,500 84,066 161,434
Community development 1,992,000 5,117,050 431,913 4,685,137
Debt service 149,793 149,793 149,793 -
Transfers to other funds 3,277,700 3,277,700 1,766,221 1,511,479
Total Charges to Appropriations 5,664,993 8,790,043 2,431,993 6,358,050
Budgetary Fund Balance, June 30 346,695$ (2,778,355)$ 12,793,201$ 15,571,556$
See Notes to Financial Statements 15
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16
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The Redevelopment Agency of the City of Azusa is a component unit of a reporting entity
that consists of the following primary and component units:
Reporting Entity:
Primary Government:
City of Azusa
Component Units:
Redevelopment Agency of the City of Azusa
Azusa Public Financing Authority
Azusa Industrial Development Authority
The attached basic financial statements contain information relative only to the
Redevelopment Agency of the City of Azusa as one component unit that is an integral
part of the total reporting entity. They do not contain financial data relating to the other
component units.
The Agency was created by Ordinance No. 1055 of the Azusa City Council, adopted on
May 7, 1973. The Agency was established pursuant to the Community Redevelopment
Law of California as codified in Part I of Division 24 of the State of California Health and
Safety Code.
The principal objectives of the Agency are to upgrade residential neighborhoods, improve
the commercial environment, generate added employment opportunities and strengthen
the City of Azusa's economic base. The principal project of the Agency is known as the
Central Business District Redevelopment Project, which was approved by Ordinance
No. 2062 on September 18, 1978. This project has undergone five amendments which
were approved by Ordinance No. 2077 on July 2, 1979, by Ordinance No. 2113 on
July 20, 1981, by Ordinance No. 2197 on November 28, 1983, by Ordinance No. 2249 on
December 17, 1984 and by Ordinance No. 2250 on December 17, 1984.
A second project of the Agency, known as the West End Redevelopment Project, was
approved by Ordinance No. 2196 on November 28, 1983. On November 7, 1988,
Ordinance No. 2382 was passed which approved the merger of the Central Business
District Redevelopment Plan and West End Redevelopment Plan.
On July 17, 1989, the City Council passed Ordinance No. 2402, which approved the
redevelopment plan for the Ranch Center Redevelopment Project. On October 6, 2003,
Ordinance No. 03-06 was passed to add new territory and amend and restate various
limits for the Central Business District and the West End Redevelopment Projects.
On June 26, 2008, Ordinance No. 08-09 passed to add new territory to the Merged
Central Business District and West End Project, and increase the combined tax
increment cap to $300 million.
17
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
b. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the
statement of changes in net assets) report information on all of the nonfiduciary activities
of the primary government and its component units. 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. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially
accountable.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues
include: 1) charges to customers or applicants who purchase, use or directly benefit from
goods, services or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and fiduciary funds
even though the latter are excluded from the government-wide financial statements.
Major individual governmental funds are reported as separate columns in the fund
financial statements.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when a liability is incurred regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the Agency
considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue
of the current period. All other revenue items are considered to be measurable and
available only when cash is received by the government.
18
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The Agency reports the following major governmental funds:
Combined Low and Moderate Housing Fund
General Agency Fund
Merged Project Area:
- Project fund
- Tax increment fund
- Bonds fund
Governmental Fund Types
Special Revenue Funds account for that portion of tax increment and other
revenues that have been legally restricted for increasing or improving housing for
low and moderate income households. From April 1, 1985, through
December 31, 1988, the Agency established a finding declaring that a substantial
effort was being made to meet low and moderate income housing needs of the
community by means of other state, local and federal funding sources, including
the Community Development Block Grant program of the City of Azusa.
Accordingly, all tax increment revenues were allocated to the debt service funds,
as prescribed by Section 33334.2 of the Health and Safety Code. After
December 31, 1988, the Agency allocated a minimum of 20% of the tax
increment revenues received to the special revenue funds. From July 1, 1991, to
June 30, 1993, the Agency has established a finding that a substantial effort was
being made to meet its existing and projected housing needs of the Ranch
Center Project Area by means of funding by the Community Development Block
Grant Program. Tax increment revenues have been appropriately allocated to the
Ranch Center debt service fund.
Debt Service Funds account for the accumulation of resources for the payment of
interest and principal on general long-term debt.
Capital Projects Funds account for financial resources segregated for the
development and redevelopment of the project areas, including acquisition of
major capital facilities, other costs of benefit to the project areas and
administrative expenses incurred in sustaining the Agency.
When both restricted and unrestricted resources are available for use, it is the
government's policy to use restricted resources first, then unrestricted resources as they
are needed.
d. Assets, Liabilities and Net Assets or Equity
1. Cash and Investments
The Agency’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of three months
or less from the date of acquisition.
Investments for the Agency are reported at fair value. The State Treasurer's
Investment Pool operates in accordance with appropriate state laws and regulations.
The reported value of the pool is the same as the fair value of the pool shares.
19
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other
funds" (i.e., the current portion of interfund loans) or "advances to/from other funds"
(i.e., the non-current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a
fund balance reserve account in applicable governmental funds to indicate that they
are not available for appropriation and are not expendable available financial
resources.
All trade and property tax receivables are shown net of an allowance for
uncollectibles.
Property tax revenue is recognized in the fiscal year for which the taxes have been
levied providing they become available. Available means then due or past due and
receivable within the current period and collected within the current period or
expected to be collected soon enough thereafter (not to exceed 60 days) to be used
to pay liabilities of the current period. The County of Los Angeles collects property
taxes for the Agency. Tax liens attach annually as of 12:01 A.M. on the first day in
January preceding the fiscal year for which the taxes are levied. The tax levy covers
the fiscal period July 1 to June 30. All secured personal property taxes and one-half
of the taxes on real property are due November 1; the second installment is due
February 1. All taxes are delinquent, if unpaid, on December 10 and
April 10, respectively. Unsecured personal property taxes become due on the first of
March each year and are delinquent on August 31.
3. Inventories, Prepaid Items and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories
of governmental funds are recorded as expenditures when consumed rather than
when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial
statements.
Land purchased for resale is capitalized as inventory at acquisition costs or net
realizable value if lower.
4. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets
(e.g., roads, bridges, sidewalks and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial
individual cost of more than $2,500 (amount not rounded) and an estimated useful
life in excess of one year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
20
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
In accordance with GASB Statement No. 34, the Agency is required to report general
infrastructure assets. The Agency does not have any infrastructure assets.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets
constructed.
Property, plant and equipment of the primary government, as well as the component
units, are depreciated using the straight-line method over the following estimated
useful lives:
Assets Years
Structures and improvements 20 - 99
Furniture and equipment 5 - 25
5. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term
obligations are reported as liabilities in the governmental activities statement of net
assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Bond issuance
costs are reported as deferred charges and amortized over the term of the related
debt.
In the fund financial statements, governmental fund types recognize bond premiums
and discounts, as well as bond issuance costs, during the current period. The face
amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service
expenditures.
6. Fund Equity
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted
by outside parties for use for a specific purpose. Designations of fund balance
represent tentative management plans that are subject to change.
21
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The Governing Board approves each year's budget submitted by the Executive
Director prior to the beginning of the new fiscal year. The Board conducts public
meetings prior to its adoption. The budget is prepared by fund, function and activity,
and includes information on the past year, current year estimates and requested
appropriations for the next fiscal year. Supplemental appropriations when required
during the period are also approved by the Board. Intradepartmental budget changes
are approved by the Executive Director. In most cases, expenditures may not exceed
appropriations at the departmental level. At fiscal year-end all operating budget
appropriations lapse. During the year, several supplementary appropriations were
necessary.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods
and services. These commitments are recorded for budgetary control purposes in the
Special Revenue, Capital Projects and Debt Service funds. Encumbrances
outstanding at year-end are reported as a reservation of fund balance. They
represent the estimated amount of the expend iture ultimately to result if unperformed
contracts in process at year-end are completed. They do not constitute expenditures
or estimated liabilities. As of June 30, 2010, there were no encumbrances reported.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
As of June 30, 2010, cash and investments were reported in the accompanying financial
statements as follows:
Cash and investments 3,647,386$
Cash and investments with trustees 4,124,223
7,771,609$
The Agency follows the practice of pooling cash and investments of all funds, except for
funds required to be held by fiscal agents under provisions of bond indentures. Interest
income earned on pooled cash and investments is allocated to the various funds based
on cash and investment balances. Interest Income from cash and investments with fiscal
agents is credited directly to the related fund.
22
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 3: Cash and Investments (Continued)
Deposits
At June 30, 2010, the carrying amount of the Agency’s deposits was $553,863, and was
equal to the bank balance.
The California Government Code requires California banks and savings and loan
associations to secure a government entity’s deposits by pledging governm ent securities
with a value of 110% of its deposits. California law also allows financial institutions to
secure an Agency’s deposits by pledging first trust deed mortgage notes having a value
of 150% of a City’s total deposits. The City Treasurer may wa ive the collateral
requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral
for deposits in federal and state chartered banks is held in safekeeping by an authorized
Agent of Depository recognized by the State of California Department of Banking. The
collateral for deposits with savings and loan associations is generally held in safekeeping
by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository.
These securities are physically held in an undivided pool for all California public agency
depositors. Under Government Code Section 53655, the placement of securities by a
bank or savings and loan association with an “Agent of Depository” has the effect of
perfecting the security interest in the name of the local governmental agency.
Accordingly, all collateral held by California Agents of Depository are considered to be
held for, and in the name of, the local governmental agency.
Investments
Under provision of the Agency’s investment policy, and in accordance with the California
Government Code, the following investments are authorized:
U.S. Treasury Obligations (bills, notes and bonds)
U.S. Government Agency Securities and Instrumentalities of Government Sponsored
Corporations
Mutual Funds
Commercial Paper
Repurchase Agreements
Certificates of Deposit
Negotiable Certificates of Deposit
Passbook Savings Accounts
Medium Term Corporate Notes
Bank Money Market Accounts
Local Agency Investment Fund (State Pool)
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond
trustee. Investments of debt proceeds held by a bond trustee are governed by provisions
of the debt agreements rather than the general provisions of the California Government
Code or the Agency’s investment policy.
Investments in State Investment Pool
The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
23
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 3: Cash and Investments (Continued)
Treasurer of the State of California. LAIF is overseen by the Local Agency Investment
Advisory Board, which consists of five members, in accordance with State statute. The
State Treasurer’s Office audits the fund annually. The fair value of the position in the
investment pool is the same as the value of the pool shares.
GASB Statement No. 31
The Agency adopted GASB Statement No. 31, Accounting and Financial Reporting for
certain investments and for External Investment Pools, as of July 1, 1997. GASB
Statement No. 31 establishes fair value standards for investments in participating interest
earning investment contracts, external investment pools, equity securities, option
contracts, stock warrants and stock rights that have readily determinable fair values.
Accordingly, the Agency reports its investments at fair value in the balance sheet. All
investment income, including changes in the fair value of investments, is recognized as
revenue in the operating statement.
Credit Risk
The Agency's investment policy limits investments in medium term notes (MTNs) to those
rated A or higher by Standard and Poor's (S&P) or by Moody's. As of June 30, 2010, the
Agency's investment in medium term notes consisted of various investments rated A/AAA
by Moody’s and by S&P. All securities were investment grade and were legal under State
and Agency law. Investments in U.S. government securities are not considered to have
credit risk; therefore, their credit quality is not disclosed. As of June 30, 2010, the City's
investments in external investment pools and money market mutual funds are unrated.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover deposits or will
not be able to recover collateral securities that are in the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of
investment or collateral securities that are in the possession of an outside party.
As of June 30, 2010, none of the Agency’s deposits or investments were exposed to
custodial credit risk.
Interest Rate Risk
The Agency's investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The Agency's
investment policy states that no investment may have a maturity of more than five years
without receiving prior Agency Board approval. The only exception to these maturity limits
shall be the investment of the gross proceeds of tax-exempt bonds, and reserve funds
associated with bond issues. The Agency has elected to use the segmented time
distribution method of disclosure for its interest rate risk.
24
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 3: Cash and Investments (Continued)
As of June 30, 2010, the Agency had the following investments and original maturities:
Less than 1 to 3 3 to 5 Fair
6 months years years Value
California Local Agency
Investment Fund 3,093,521$ -$ -$ 3,093,521$
Cash with Fiscal Agents
Money Market Mutual Funds 2,383,791 - - 2,383,791
Investment Agreements - - 1,740,434 1,740,434
5,477,312$ -$ 1,740,434$ 7,217,746$
Investment Maturities (in Years)
Note 4: Capital Assets
A summary of changes in capital assets follows:
Balance at Balance at
July 1, 2009 Additions Deletions Transfers June 30, 2010
Capital Assets not being depreciated:
Land 410,420$ -$ -$ $410,420$
Total Capital Assets
not being depeciated 410,420 - - - 410,420
Capital Assets being depreciated:
Structures and Improvements 1,427,802 - - - 1,427,802
Total Capital Assets
being depeciated 1,427,802 - - - 1,427,802
Less accumulated depreciation:
Structures and Improvements 454,537 58,399 - - 512,936
Total Accumulated Depreciation 454,537 58,399 - - 512,936
Total Capital Assets, net of
accumulated depreciation 1,383,685$ (58,399)$ -$ -$ 1,325,286$
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government 58,399$
25
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt
a. A description of long-term debt outstanding (excluding defeased debt) of the Agency as
of June 30, 2010 follows:
Tax Allocation Bonds
Tax allocation bonds payable consisted of the following at June 30, 2010:
Balance
Outstanding
$11,580,000 2003 Series A Merged Project Area Tax Allocation Refunding
Bonds, dated December 1, 2003, were issued to refund the 1994 Series A
Merged Project Area Tax Allocation Bonds. Principal payments ranging
from $425,000 to $1,235,000 are due annually on August 1 beginning in
the year 2004 through the year 2023. Interest rates ranging from 3.00% to
4.60% per annum are payable on February 1 and August 1. Both principal
and interest payments are secured by tax increment revenues. 8,815,000$
$9,022,800 Series A Merged Project Area Tax Allocation Bonds, dated
February 17, 2005, were issued to finance redevelopment projects. The
issue consists of $7,765,000 Current Interest Bonds which are subject to
annual sinking fund installment payments ranging from $715,000 to
$1,170,000 beginning August 1, 2027 through August 1, 2034, bearing
interest at 4.50% per annum: and Capital Appreciation Bonds of
$1,257,800 due beginning August 1, 2024 through August 1, 2027, bearing
interest rates ranging from 5.16% to 5.33% per annum. Debt service
payments on the bonds are secured by tax increment revenues.9,429,889
$15,780,000 Series A Merged Project Area Tax Allocation Bonds, dated
July 31, 2007, were issued to finance redevelopment projects. Current
Interest Bonds are subject to annual sinking fund installment payments
ranging from $340,000 to $365,000 beginning August 1, 2008 through
August 1, 2009, bearing interest rates from 5.27% to 5.30% per annum.
Term Bonds are due beginning August 1, 2010 through August 1, 2035,
with installment payments ranging from $385,000 to $1,625,000, bearing
interest rates ranging from 5.77% to 6.15% per annum. Debt service
payments on the bonds are secured by tax increment revenues.15,075,000
$4,790,000 Series A Merged Project Area Tax Allocation Bonds, dated
July 31, 2007, were issued to refund the 1997 tax allocation bonds.
Current Interest Bonds are subject to annual sinking fund installment
payments ranging from $80,000 to $140,000 beginning August 1, 2008
through August 1, 2021, bearing interest rates ranging from 4.00% to
5.00% per annum. Term Bonds are due beginning August 1, 2022 through
August 1, 2036, with installment payments ranging from $150,000 to
$305,000, bearing interest rates ranging from 5.25% to 5.30% per annum.
Debt service payments on the bonds are secured by tax increment
revenues.4,625,000
26
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Balance
Outstanding
$6,715,000 Series A Merged Project Area Tax Allocation Bonds, dated
December 18, 2008, were issued to finance redevelopment projects.
Current Interest Bonds are subject to annual sinking fund installment
payments ranging from $70,000 to $140,000 beginning August 1, 2009
through August 1, 2018 with interest rates ranging from 4.5% through
6.75%. Term Bonds are due August 1, 2023, August 1, 2028, and August
1, 2034 for $1,850,000, $1,815,000, and 2,045,000 with interest rates of
7.5% and 8.2%. Debt service payments on the bonds are secured by tax
increment revenues.6,645,000
$11,580,000 Series B Merged Project Area Housing Tax Allocation Bonds,
dated November 25, 2008, were issued to finance redevelopment
projects. Current Interest Bonds are subject to annual sinking fund
installment payments ranging from $125,000 to $355,000 beginning
August 1, 2009 through August 1, 2020 with interest rates ranging from
3.5% through 6.6%. Term Bonds are due beginning August 1, 2024 and
August 1, 2038, for $1,075,000 and $8,420,000, respectively, and carry
interest rates of 6.75% and 7.0%. Debt service payments on the bonds are
secured by tax increment revenues.11,225,000
Total bonds payable 55,814,889$
The Azusa Redevelopment Agency has pledged, as security for bonds it has issued, a
portion of the tax increment revenue that it receives. The Agency has committed to
appropriate each year, from these resources, amounts sufficient to cover the principal
and interest requirements on the debt. The remaining principal and interest on such debt
is reflected in the debt service schedules which follow and amounted to $106,622,421.
For the current year, the total tax increment revenue recognized net of pass-through
payments by the Agency was $5,021,545 and debt service on bond outstanding was
$4,406,412.
Obligation Under Developer Agreement
On October 4, 1988, the Redevelopment Agency of the City of Azusa entered into a
developer agreement with the Price Company. Since fiscal year 1988-1989, the Price
Company advanced to the Agency $4,558,300 for the purpose of redeveloping the Price
Company site located in the West End project areas.
Interest on the advance accrues at a rate of 9.5% per annum. Accrued unpaid interest is
compounded annually. Sales tax revenues received from the site have been pledged as
security for the repayment of principal and interest. Annual repayments to Price Company
are due on the last business day of December, March, June and September, beginning
December 31, 1989, based upon the following allocation of sales tax revenues:
First $493,000 to Agency
Next $490,000 to Price Company
Next $178,000 to Agency
Next $178,000 to Price Company
Then balance divided 50% to the Agency and 50% to Price Company
27
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Payments will continue for a period of 25 years through October 31, 2015, or until all
accrued interest and principal are paid in full, whichever occurs first. In the event that the
entire interest and principal has not been repaid as of October 31, 2015, the unpaid
balance will be forgiven. The outstanding principal and matured unpaid interest balance
at June 30, 2010, is $9,366,038.
Loans from City
Loans from the City of Azusa bear interest at various rates and are due in varying
installments. At June 30, 2010, these obligations consisted of the following:
Merged Project Area – CBD
On October 3, 1994, the City of Azusa authorized an advance to the Agency of
$2,000,000 for the purpose of carrying out the Redevelopment Plan. The note is
payable from pledged tax increment revenues. Interest accrues at 5.25% per
annum. Principal payments beginning October 1, 2014 and interest are due
annually in varying installments through October 1, 2033. The balance
outstanding at June 30, 2010, is $4,696,531.
On April 21, 1997, the City of Azusa authorized an advance to the Agency of
$2,462,355 for the purpose of carrying out the Redevelopment Plan. As of
June 30, 2002, the full amount had been advanced. The note is payable from
pledged tax increment revenues and land sales proceeds. Interest accrues at
6% per annum. The terms of the note, as amended by the Board on
August 4, 1997, commence on the date that the loan proceeds were received by
the Agency. The first payment is due in 2014, and annually thereafter until 2033.
The balance outstanding at June 30, 2010, is $1,079,752.
On December 1, 2003, the City of Azusa authorized an advance to the Agency of
$4,825,000 for the purpose of carrying out the Redevelopment Plan. The note is
payable from pledged tax increment revenues. Interest rates range from
2% - 4.4% per annum, payable on February 1 and August 1. Principal payments
are due annually on August 1 beginning in 2004 through 2020. The balance
outstanding at June 30, 2010, is $3,480,000.
On November 7, 2005, in conjunction with the Talley Building development, the
City of Azusa authorized an advance to the Agency of $150,000 for the purpose
of carrying out the Redevelopment Plan. The note is payable from accumulated
tax increment funds in excess of those pledged for payment of Agency bonded
indebtedness, and/or may be paid from any other funds available to the Agency.
Interest accrues at 5% per annum. Payments on the Note will be deferred for the
first three years after receipt of proceeds, and then annually until paid in full, over
a term of 20 years. The balance outstanding at June 30, 2010, is $181,211.
On February 27, 2006, in conjunction with the purchase of real property by the
Agency from the Azusa Valley Water Company, the City of Azusa authorized an
advance to the Agency of $94,950 for the purpose of carrying out the
Redevelopment Plan. $57,450 was payable upon conveyance of property and
the balance of $37,500 was evidenced by a Promissory Note. Interest accrues at
5% per annum. Principal and interest payments are due as follows:
five (5) successive, annual installments of $8,662 each, beginning
February 27, 2006. The fifth and final payment shall be increased or decreased,
28
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
as necessary, to equal the entire then-outstanding principal balance, accrued
interest and all other sums due and payable under this Note. The balance
outstanding at June 30, 2010, is $8,249.
On March 3, 2008, the City of Azusa authorized an advance to the Agency of
$11,000,000 for the purpose of carrying out the Redevelopment Plan. The note is
payable from pledged tax increment revenues and land sales proceeds. Interest
accrues at 6.5% per annum from the date of the loan to the repayment by
Agency to the City. The balance outstanding at June 30, 2010, is $5,456,945.
On March 24, 2008, the City of Azusa authorized an advance to the Agency of
$5,300,000 for the purpose of carrying out the Redevelopment Plan. As of June
30, 2009, the full amount had been advanced. The note is payable from pledged
tax increment revenues and land sales proceeds. Interest accrues at the
prevailing LAIF annual rate. The terms of the note commence on the date that
the loan proceeds were received by the Agency. The balance outstanding at
June 30, 2010, is $5,440,510.
On December 21, 2009, the City of Azusa authorized an advance to the Agency
of $3,310,000 for the purpose of carrying out the Redevelopment Plan. The note
is payable from pledged tax increment revenues and land sales proceeds.
Interest accrues at 6.5% per annum from the date of the loan to the repayment
by Agency to the City. The balance outstanding at June 30, 2010, is $3,421,996.
On July 27, 2009, the City of Azusa authorized an advance to the Agency of
$450,000 for the purpose of carrying out the Redevelopment Plan. As of
June 30, 2010, the full amount had been advanced. The note is payable from
revenue proceeds generated by the project. Interest accrues at 5.5% per annum.
The terms of the note commence on the date that the loan proceeds were
received by the Agency. The first payment is due in 2011, and annually thereafter
until 2015. The balance outstanding at June 30, 2010, is $450,000.
Merged Project Area – West End
On May 15, 1989, in conjunction with the Price Company Developer Agreement,
the Agency entered into an agreement with the City of Azusa to transfer to the
City sales tax revenues received by the Agency that otherwise would have been
received by the City. Payment under this agreement is to be made by July 1 for
sales tax revenues received in the preceding fiscal year. Unpaid amounts will
accumulate as debt to the Agency. Interest will accrue at a rate of 7% per
annum from the date payment is due to date of repayment by Agency to the City.
The balance outstanding at June 30, 2010, is $16,360,403.
On July 2, 2007, the Agency approved the purchase and sale agreement
between the Agency and the City of Azusa for the property located at 850 W 10th
Street and reimbursement by the RDA to the City of Azusa and Light Fund for
acquisition cost of $1,615,878. The purchase price is reflective of acquisition
price of $828,000 plus 5% simple interest over a 30 year term. The first payment
is due at year 15 with annual payments of $53,863 amortized over a period of
30 years culminating in a balloon payment at the close of the 30 year note of
$861,801. The balance outstanding at June 30, 2010, is $1,615,878.
29
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
Ranch Center Project Area
On June 30, 1989, the City of Azusa advanced to the Agency $500,000 for the
purpose of carrying out the Redevelopment Plan. The balance in the
accompanying financial statements includes interest accrued through the
balance sheet date. The note is payable from pledged tax increment revenues.
Interest accrues at 8% per annum and principal and interest is due annually in
varying installments through June 30, 2014. The balance outstanding at
June 30, 2010, is $1,752,967.
On August 7, 1989, in conjunction with the Westland Reserves, Inc. Developer
Agreement, the Agency entered into an agreement with the City of Azusa to
transfer to the City sales tax revenues received by the Agency that otherwise
would have been received by the City. Payment under this agreement is to be
made by July 1 for sales tax revenues received in the preceding fiscal year.
Unpaid amounts will accumulate as debt to the Agency. Interest will accrue at a
rate of 7% per annum from the date payment is due to date of repayment by
Agency to the City. The balance outstanding at June 30, 2010, is $212,040.
On July 1, 1991, the City of Azusa authorized an advance to the Agency of
$227,030 for the purpose of carrying out the Redevelopment Plan. Additional
amounts were authorized for a total advance of $1,550,277. The balance in the
accompanying financial statements includes accrued interest through the
balance sheet date. The note is payable from pledged tax increment revenues.
Interest accrues at a rate of 8% per annum. Principal and interest are due in one
installment on June 30, 2039. The balance outstanding at June 30, 2010, is
$1,895,700.
On July 18, 1994, the City of Azusa authorized an advance to the Agency of
$485,000 for the purpose of carrying out the Redevelopment Plan. The balance
in the accompanying financial statements includes accrued interest through the
balance sheet date. The note is payable from pledged tax increment revenues.
Interest accrues at a rate of 6% per annum. Principal and interest are due in
annual installments through June 30, 2024. The balance outstanding at
June 30, 2010, is $1,221,945.
Combined Low and Moderate Income Housing Fund
On July 1, 1991, the City of Azusa authorized an advance to the Agency, which
was funded on July 10, 1991, of $2,300,000 for the purpose of carrying out the
Redevelopment Plan. The note is payable from pledged tax increment revenues
and 20% set-aside low-to-moderate income housing fund revenues. Originally,
interest accrued at 9% per annum and principal and interest were due in annual
installments through June 30, 2002. The terms of this advance were revised
June 5, 1995, beginning with payment due June 30, 1995. Interest accrues at
6% per annum. Principal and interest are due in annual installments through
June 30, 2016. The balance outstanding at June 30, 2010, is $736,579.
Total Loans from City at June 30, 2010, amount to $48,010,706.
Other Long-Term Debt Payable
Employee Leave Benefits 93,442$
30
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
b. The following is a summary of the changes in long-term debt of the Agency for the fiscal
year ended June 30, 2010:
Balance Balance Due Within
July 1, 2009 Adjustments Additions Repayments June 30, 2010 One Year
Merged Project Area
City Loans - Principal 22,582,737$ **16,300,000$ 3,760,000$ 7,463,790$ 35,178,947$ -$
City Loans - Unpaid Interest 3,589,549 1,068,583 2,354,397 - 7,012,529 -
Developer Loans - Principal 4,558,300 - - - 4,558,300 -
Developer Loans - Unpaid Interest 4,415,871 - 391,867 - 4,807,738 -
Bonds - 2003 Tax Allocation Refunding 9,265,000 - - 450,000 8,815,000 460,000
Bonds - 2005 Tax Allocation, Series A 9,346,201 - *83,688 - 9,429,889 -
Bonds - 2007 Tax Allocation, Series A 15,440,000 - - 365,000 15,075,000 385,000
Bonds - 2007 Tax Allocation, Series B 4,710,000 - - 85,000 4,625,000 85,000
Bonds - 2008 Tax Allocation, Series A 6,715,000 - - 70,000 6,645,000 80,000
Bonds - 2008 Tax Allocation, Series B 11,580,000 - - 355,000 11,225,000 125,000
Total 92,202,658 17,368,583 6,589,952 8,788,790 107,372,403 1,135,000
Ranch Center
City Loans - Principal 3,380,175 - - - 3,380,175 -
City Loans - Unpaid Interest 1,367,468 - 335,008 - 1,702,476 -
Total 4,747,643 - 335,008 - 5,082,651 -
Combined Low and Moderate Housing
City Loans - Principal 836,200 - - 99,621 736,579 -
Total 836,200 - - 99,621 736,579 -
Unallocated Between Project Areas
Employee Leave Benefits 76,359 - 59,250 42,167 93,442 93,442
Total 76,359 - 59,250 42,167 93,442 93,442
Total - All Project Areas
City Loans - Principal 26,799,112 16,300,000 3,760,000 7,563,411 39,295,701 -
City Loans - Unpaid Interest 4,957,017 1,068,583 2,689,405 - 8,715,005 -
Developer Loans - Principal 4,558,300 - - - 4,558,300 -
Developer Loans - Unpaid Interest 4,415,871 - 391,867 - 4,807,738 -
Bonds Payable 57,056,201 - 83,688 1,325,000 55,814,889 1,135,000
Employee Leave Benefits 76,359 - 59,250 42,167 93,442 93,442
Total 97,862,860$ 17,368,583$ 6,984,210$ 8,930,578$ 113,285,075 1,228,442$
Adjustments:
Unamortized net original issue (discount) or premium (842,265)
Net Long-term Debt 112,442,810$
* Additions include $83,688 for accreted interest for the fiscal year ended June 30, 2010.
**Adjustments were to record city loans as long-term debt which was previously recorded
as due to/from other funds.
31
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 5: Long-Term Debt (Continued)
c. The following schedule illustrates the debt service requirements to maturity for bonds
outstanding as of June 30, 2010. Excluded are obligations for which the actual amounts
of annual debt service depend on various factors that are not yet determinable.
Principal Interest Principal Interest Principal Interest
2010 - 2011 460,000$ 354,279$ -$ 349,425$ 385,000$ 894,779$
2011 - 2012 475,000 339,779 - 349,425 410,000 871,863
2012 - 2013 495,000 323,516 - 349,425 430,000 847,650
2013 - 2014 515,000 305,519 - 349,425 450,000 822,284
2014 - 2015 530,000 286,248 - 349,425 480,000 795,477
2015 - 2020 2,990,000 1,086,750 - 1,747,125 2,845,000 3,514,926
2020 - 2025 3,350,000 344,073 534,155 1,747,125 2,940,000 2,582,868
2025 - 2030 - - 4,135,734 2,104,077 2,025,000 1,898,044
2030 - 2035 - - 4,760,000 2,491,464 3,485,000 1,010,906
2035 - 2040 - - - - 1,625,000 49,969
Totals 8,815,000$ 3,040,164$ 9,429,889$ 9,836,916$ 15,075,000$ 13,288,766$
Principal Interest Principal Interest Principal Interest
2010 - 2011 85,000$ 234,230$ 80,000$ 499,388$ 125,000$ 697,626$
2011 - 2012 90,000 230,423 80,000 495,188 125,000 691,533
2012 - 2013 95,000 226,305 85,000 490,544 130,000 685,158
2013 - 2014 100,000 221,968 95,000 485,250 135,000 678,364
2014 - 2015 105,000 217,405 100,000 479,275 145,000 670,833
2015 - 2020 595,000 1,008,510 645,000 2,279,331 865,000 3,209,859
2020 - 2025 745,000 844,288 1,980,000 1,877,963 1,280,000 2,883,071
2025 - 2030 970,000 620,734 1,990,000 1,057,294 3,000,000 2,139,200
2030 - 2035 1,245,000 329,263 1,590,000 396,000 3,765,000 933,975
2035 - 2040 595,000 31,933 - - 1,655,000 26,775
Totals 4,625,000$ 3,965,059$ 6,645,000$ 8,060,233$ 11,225,000$ 12,616,394$
2003 Tax Allocation Refunding Bonds,
Series A
2005 Tax Allocation Refunding
Bonds, Series A
2007 Tax Allocation Bonds,
Series A
2007 Tax Allocation Bonds, Series B 2008 Tax Allocation Bond Series A
Housing Tax Allocation Bond 2008
Series B
d. As of June 30, 2010, the Agency has issued various residential mortgage revenue bonds.
The proceeds of these bonds were used to purchase mortgage loans made to
homeowners for the purpose of financing residential property. These bonds, secured by
first trust deeds and private mortgage insurance, were issued from 1985 through 1992.
Although the Agency has arranged this financing program, these bonds are not payable
from any revenues or assets of the Agency. Generally, the bondholders may look only to
the mortgage loans and other assets held by trustees for security on the indebtedness.
Accordingly, since these bonds do not constitute an obligation of the Agency, they are not
reflected in Long-Term Debt in the accompanying financial statements:
Original
Year Amount Balance at
Issued Issued June 30, 2010 Due Date
Taxable Collateralized
Refunding Bonds-Series 1992 1992 9,903,000$ 303,000$ December 1, 2012
Single Family Mortgage Revenue
Refunding Bonds 1992 10,000,000 6,670,000 October 1, 2012
32
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 6: Low and Moderate Housing Fund
Per Section 33334.2 of the Health and Safety Code, not less than 20% of all taxes allocated
to the Agency pursuant to Section 33670 must be set-aside for purposes of increasing,
improving and preserving the community’s supply of low and moderate income housing.
Towards this end, the Agency has set-aside the following amounts:
Tax Increment Percentage Amount
Receipts(1)Set-Aside Set-Aside
Merged Project Area 7,821,281$ 20% 1,564,256$
Ranch Center Project Area 160,373 20%32,075
Total 7,981,654$ 1,596,331$
(1) Includes Los Angeles County portion.
The amount of $1,596,331 is represented as transfers of tax increment from the Merged
Project and Ranch Center debt service funds to the combined low and moderate income
housing special revenue fund. As of June 30, 2010, there were no amounts determined to be
excess surplus as defined by the Health and Safety Code.
IV. OTHER DISCLOSURES
Note 7: Insurance
The Azusa Redevelopment Agency is covered under the City of Azusa’s insurance policies.
Therefore, the limitation and self-insured retentions applicable to the City of Azusa also apply
to its redevelopment agency. Additional information as to coverage and self-insured
retentions can be obtained by contacting the City.
Note 8: Interfund Receivable, Payable and Transfers
The composition of interfund balances as of June 30, 2010, is as follows:
a. Advances To/From Other Funds
On December 2007, the Combined Low and Moderate Housing Fund advanced
$1,350,000 to the Merged Project Area –Tax Increment Fund for purposes of the Merged
Redevelopment Project Area. The loan will be repaid to the 20% set-aside fund at a rate
of 5% simple interest per annum, with all principal and interest paid in full by
June 30, 2011. The balance outstanding at June 30, 2010, is $1,483,635.
b. Interfund Transfers
The transfers out of $1,766,221 from the Combined Low and Moderate Housing Fund
were to allocate administrative expenditures and provide debt service.
The transfers out of $315,907 from the Merged Project Area Capital Project Fund were for
debt service payments.
The transfers out of $5,729,301 from the Merged Project Area –Tax Increment Fund were
to move 20% set-aside of tax increment revenue, provide debt service, and allocate
administrative expenditures.
33
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 8: Interfund Receivable, Payable and Transfers (Continued)
The transfers out of $32,153 from nonmajor funds were to move 20% set-aside of tax
increment revenue and allocate administrative expenditures.
Special
Revenue Capital Project
Debt
Service
Combined
Housing Fund
Merged Project
Area
Merged Project
Area - Tax
Increment
Nonmajor
Funds Total
Special Revenue:
Combined Housing Fund -$ -$ 1,564,256$ 32,075$ 1,596,331$
Capital Projects:
General Agency 290,614 - 1,162,454 - 1,453,068
Merged Project - Project - - 12,757 - 12,757
Debt Service:
Merged Project-Tax Increment - 315,907 - - 315,907
Merged Project-Bonds 1,475,607 - 2,989,834 - 4,465,441
Nonmajor Funds - - - 78 78
Total 1,766,221$ 315,907$ 5,729,301$ 32,153$ 7,843,582$
Transfers In:
Transfers Out
Note 9: Pass-Through Agreement Payments
At June 30, 2010, the Agency had expenditures of $2,960,109 to other agencies and entities
related to specific pass-through agreements.
Central
Business Ranch
District West End Center Total
Pass-Through Payments
Agencies and Entities:
L.A. County Pass-Through Agrmts 905,157$ 1,612,181$ 88,849$ 2,606,187$
City of Azusa (statutory)51,615 - - 51,615
Azusa Unified School District 107,956 89,361 4,625 201,942
Citrus College 11,959 52,617 3,256 67,832
Other Taxing Agencies 19,086 13,447 - 32,533
Total Pass-Through Payments 1,095,773$ 1,767,606$ 96,730$ 2,960,109$
Merged Project Area
Project Area
34
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 10: Restatement of Fund Balances and Net Assets
Beginning fund balance has been restated as follows:
Special Revenue - Low and Moderate Housing Fund:
1,416,135$
Capital Projects - Merged Project Area:
17,368,583
(542,791)
Debt Service - Merged Project Area - Tax Increment Fund:
(1,416,135)
Other Governmental Funds:
(18,302)
Total Governmental Funds restatements 16,807,490$
Beginning net assets has been restated as follows:
Fund balance restatements detailed above 16,807,490$
(17,368,583)
Total Net Asset restatements (561,093)$
To record city loans as long-term debt which were previously recorded as
due to/from other funds.
To record advances within the Agency that were previously recorded as
long-term debt.
To record city loans as long-term debt which were previously recorded
as due to/from other funds.
To record advances within the Agency that were previously recorded as
long-term debt.
To record prior years interest expense for a Light & Water city loan.
To record prior years interest income
Note 11: Transactions with the State of California
SERAF Shift for fiscal year 2009-2010 and 2010-2011
On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal
years 2009-2010 and 2010-2011 to be deposited into the County “Supplemental”
Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed
to meet the State’s Prop 98 obligations to schools. The California Redevelo pment
Association (CRA) and its member agencies filed a legal action in an attempt to stop
these amounts from having to be paid; however, in May 2010 the Sacramento Superior
Court upheld the legislation. This decision is in the process of being appealed by CRA
and its member agencies.
The payment of the SERAF was due on May 10, 2010, for fiscal year 2009-2010 and it
was made in the amount of $2,491,858. The legislation allowed this payment to be made
from any available monies present in any project area(s). Subsequent legislation was
passed which even allowed the funding for this payment to be borrowed from the Low
and Moderate Income Housing Fund with appropriate findings from its legislative body.
Any amounts borrowed from Low and Moderate Income Housing (including any
suspended set-aside amounts) are to be repaid by June 30, 2015. If those amounts are
not repaid, by that date, then the set-aside percentage to Low and Moderate Income
Housing will increase from 20% to 25% for the remainder of the life of the Agency.
35
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2010
Note 11: Transactions with the State of California (Continued)
To accomplish the payment, the Agency utilized $2,491,858 from its available resources.
In the accompanying financial statements, the amount paid to the County has been
reported as a use of current year resources.
It is estimated that the Agency’s share of the SERAF shift for fiscal year 2010 -2011 will
amount to approximately $512,545 and this amount will be payable in May 2011 if the
appeal is not successful.
36
THIS PAGE INTENTIONALLY LEFT BLANK
37
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2010
Capital Special Debt Debt Capital
Projects Revenue Service Service Projects
General Combined Tax
Agency Housing Tax Revenue
Fund Fund Increment Bonds Project
Cash and investments 1,550,586$ 160,420$ 423,722$ 381,134$ 1,012,356$
Cash and investments with trustee - - - 4,124,223 -
Receivables:
Tax increment - - 925,512 - -
Accounts - - - - 3,555
Interest 212 1,226 2,469 8,232 2,143
Loans - 1,146,450 - - 895,976
Due from City - - 281,522 - 450,000
Land held for resale - 11,582,075 - - 31,400,002
Allowance for decline in value ---- (876,230)
Prepaid costs 50 ----
Advances to other funds - 1,483,635 ---
Total Assets 1,550,848$ 14,373,806$ 1,633,225$ 4,513,589$ 32,887,802$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 52,868$73,842$151,354$-$148,103$
Due to City 1,521,881 331,307 3,684,798 - 127,688
Due to other governments - 29,006 261,418 381,103 -
Deferred revenue - 1,146,450 305,345 - 803,697
Salaries and benefits payable 32,862 ----
Advances from other funds -- 1,483,635 --
Total Liabilities 1,607,611 1,580,605 5,886,550 381,103 1,079,488
Fund Balances:
Reserved:
Land held for resale - 11,582,075 -- 30,523,772
Loans and advances receivable - 1,483,635 --92,279
Prepaid costs 50 ----
Unreserved:
Designated:
Debt service --- 4,132,486 -
Continuing projects - (272,509)-- 1,192,263
Undesignated (56,813)- (4,253,325)--
Total Fund Balances (56,763) 12,793,201 (4,253,325) 4,132,486 31,808,314
Total Liabilities and
Fund Balances 1,550,848 $ 14,373,806 $ 1,633,225 $ 4,513,589 $ 32,887,802 $
Merged Project Area
38
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2010
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Due from City
Land held for resale
Allowance for decline in value
Prepaid costs
Advances to other funds
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to City
Due to other governments
Deferred revenue
Salaries and benefits payable
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Land held for resale
Loans and advances receivable
Prepaid costs
Unreserved:
Designated:
Debt service
Continuing projects
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
Debt Capital
Service Projects
Debt Capital Special
Tax Service Projects Revenue
Increment Project Funds Funds Funds
39,417$79,751$844,273$2,642,693$160,420$
-- 4,124,223 --
42 - 925,554 --
---3,555 -
15 90 10,716 2,445 1,226
--- 895,976 1,146,450
-- 281,522 450,000 -
--- 31,400,002 11,582,075
--- (876,230)-
-- - 50 -
---- 1,483,635
39,474$ 79,841$ 6,186,288$ 34,518,491$ 14,373,806$
4,625$-$155,979$200,971$73,842$
-- 3,684,798 1,649,569 331,307
44,536 - 687,057 -29,006
-- 305,345 803,697 1,146,450
---32,862 -
-- 1,483,635 --
49,161 - 6,316,814 2,687,099 1,580,605
--- 30,523,772 11,582,075
---92,279 1,483,635
-- - 50 -
-- 4,132,486 --
- 79,841 - 1,272,104 (272,509)
(9,687)- (4,263,012) (56,813)-
(9,687) 79,841 (130,526) 31,831,392 12,793,201
39,474$ 79,841 $ 6,186,288 $ 34,518,491 $ 14,373,806 $
Ranch Center
T O T A L S
39
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Capital Special Debt Debt Capital
Projects Revenue Service Service Projects
General Combined Tax
Agency Housing Tax Revenue
Fund Fund Increment Bonds Project
Revenues:
Taxes and Assessments:
Tax increment -$ -$7,821,281$ -$ -$
Sales and use tax -- 1,450,892 --
Use of Money and Property:
Interest income 2,595 76,979 12,756 45,511 40,485
Rental income ---- 168,573
Other revenue:
Miscellaneous revenue 18,259 1,337 154 -12,072
Total Revenues 20,854 78,316 9,285,083 45,511 221,130
Expenditures:
Current:
General Government:
Administrative costs 1,002,132 70,555 -- 167,332
Professional services 164,387 13,511 -- 337,645
Community Development:
Operation of acquired property - 431,913 --78,351
Disposal costs ----6,175
Capital Outlay:
Project improvement costs 200,000 - 1,089,722 - 365,347
Acquisition of fixed assets 86 ----
Debt Service:
Interest expense 56,812 50,172 2,414,309 3,141,312 640,866
Long-term debt repayments -99,621 463,790 1,325,000 7,000,000
Other Expenditures:
Grant expenditures ----55,967
Total Expenditures 1,423,417 665,772 3,967,821 4,466,312 8,651,683
Excess of Revenues over
(under) Expenditures (1,402,563) (587,456) 5,317,262 (4,420,801) (8,430,553)
Other Financing Sources (Uses)
Transfers in 1,453,068 - 315,907 4,465,441 12,757
Transfers out - (1,766,221) (4,165,045)- (315,907)
Housing set-aside transfers in - 1,596,331 ---
Housing set-aside transfers out -- (1,564,256)--
Long-term debt issued -- 2,105,396 - 4,400,868
Pass through agreement payments -- (2,863,379)--
Gain (Loss) on sale of land held ---- (3,519,705)
Payment to Educational Revenue
Augmentation Fund -- (2,450,602)--
Contributions from (to) City (107,695)---(38,200)
Total Other Financing Sources
(Uses)1,345,373 (169,890) (8,621,979) 4,465,441 539,813
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses (57,190)$ (757,346)$ (3,304,717)$ 44,640$ (7,890,740)$
Fund Balances
Beginning of Year, as previously
reported 427$ 12,134,412$ 467,527$ 4,087,846$ 22,873,262$
Restatements - 1,416,135 (1,416,135) - 16,825,792
Beginning of Year, as restated 427 13,550,547 (948,608) 4,087,846 39,699,054
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses (57,190) (757,346) (3,304,717) 44,640 (7,890,740)
End of Year (56,763)$ 12,793,201 $ (4,253,325)$ 4,132,486 $ 31,808,314 $
Merged Project Area
40
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
Revenues:
Taxes and Assessments:
Tax increment
Sales and use tax
Use of Money and Property:
Interest income
Rental income
Other revenue:
Miscellaneous revenue
Total Revenues
Expenditures:
Current:
General Government:
Administrative costs
Professional services
Community Development:
Operation of acquired property
Disposal costs
Capital Outlay:
Project improvement costs
Acquisition of fixed assets
Debt Service:
Interest expense
Long-term debt repayments
Other Expenditures:
Grant expenditures
Total Expenditures
Excess of Revenues over
(under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Housing set-aside transfers in
Housing set-aside transfers out
Long-term debt issued
Pass through agreement payments
Gain (Loss) on sale of land held
Payment to Educational Revenue
Augmentation Fund
Contributions from (to) City
Total Other Financing Sources
(Uses)
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses
Fund Balances
Beginning of Year, as previously
reported
Restatements
Beginning of Year, as restated
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses
End of Year
Debt Capital
Service Projects
Debt Capital Special
Tax Service Projects Revenue
Increment Project Funds Funds Funds
160,373$ -$7,981,654$ -$ -$
-- 1,450,892 --
79 456 58,346 43,536 76,979
--- 168,573 -
--154 30,331 1,337
160,452 456 9,491,046 242,440 78,316
--- 1,169,464 70,555
--- 502,032 13,511
---78,351 431,913
---6,175 -
-- 1,089,722 565,347 -
-- -86 -
335,008 - 5,890,629 697,678 50,172
-- 1,788,790 7,000,000 99,621
---55,967 -
335,008 - 8,769,141 10,075,100 665,772
(174,556) 456 721,905 (9,832,660) (587,456)
-78 4,781,348 1,465,903 -
(78)- (4,165,123) (315,907) (1,766,221)
---- 1,596,331
(32,075)- (1,596,331)--
335,008 - 2,440,404 4,400,868 -
(96,730)- (2,960,109)--
--- (3,519,705)-
(41,256)- (2,491,858)--
--- (145,895)-
164,869 78 (3,991,669) 1,885,264 (169,890)
(9,687)$ 534$ (3,269,764)$ (7,947,396)$ (757,346)$
18,302$ 79,307$ 4,573,675$ 22,952,996$ 12,134,412$
(18,302) - (1,434,437) 16,825,792 1,416,135
- 79,307 3,139,238 39,778,788 13,550,547
(9,687) 534 (3,269,764) (7,947,396) (757,346)
(9,687)$ 79,841 $ (130,526)$ 31,831,392 $ 12,793,201 $
Ranch Center
T O T A L S
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REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMPUTATION OF LOW AND MODERATE
INCOME HOUSING FUNDS
EXCESS/SURPLUS
Low and Moderate Low and Moderate
Housing Funds - All Project Areas Housing Funds - All Project Areas
July 1, 2009 July 1, 2010
Opening Fund Balance 12,134,412$12,793,201$
Land held for resale (7,053,882)$ (11,582,075)$
Advances to other funds - (1,483,635)
Unspent debt proceeds (Section 33334.12 (g)(3)(B))(3,975,280) -
Less: Unavailable Amounts (11,029,162)(13,065,710)
Available Low and Moderate Income Housing Funds 1,105,250 (272,509)
Limitation (greater of $1,000,000 or four years set-aside)
Set-Aside for last four years:
2009 - 2010 - 1,596,331
2008 - 2009 1,586,870 1,586,870
2007 - 2008 1,508,994 1,508,994
2006 - 2007 1,379,024 1,379,024
2005 - 2006 1,287,007 -
Total 5,761,895$ 6,071,219$
Base Limitation 1,000,000$ 1,000,000$
Greater amount 5,761,895 6,071,219
Computed Excess/Surplus None None
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