HomeMy WebLinkAboutRDA ReportREDEVELOPMENT AGENCY OF THE
CITY OF AZUSA, CALIFORNIA
FINANCIAL STATEMENTS
JUNE 30, 2008
REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA, CALIFORNIA
FINANCIAL STATEMENTS
JUNE 30, 2008
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
JUNE 30, 2008
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 .....................................................................................................................6
Fund Financial Statements:
Balance Sheets - Governmental Funds ..........................................................................................7
Reconciliation of the Balance Sheet of Government Funds
to the Statement of Net Assets ........................................................................................................8
Statement of Revenues, Expenditures
and Changes in Fund Balances ......................................................................................................9
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities .....................................................................................................................10
Notes to Financial Statements ............................................................................................................11
COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Project Area Balance Sheet - All Governmental Funds ...............................................30
Combining Project Area Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Funds ..................................................................32
Budgetary Comparison Schedule – Special Revenue Housing Fund ...........................................33
Computation of Low and Moderate Income Housing Funds
Excess/Surplus ..............................................................................................................................34
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, 2008, 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 accordance with Government Auditing Standards issued by the Comptroller General of the United
States, we have also issued our report dated December 12, 2008, 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.
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, 2008, 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.
203 N. Brea Blvd., Suite 2
203 N. Brea Blvd., Suite 203 ● Brea, CA 92821-4056 ● (714) 672-0022 ● Fax (714) 672-0331 ● www.lslcpas.com
Brandon W. Burrows
Donald L. Parker
Michael K. Chu
David E. Hale A Professional Corporation
Donald G. Slater
Richard K. Kikuchi
Certified Public Accountants Retired
Robert C. Lance
1914-1994
Richard C. Soll
Fred J. Lunghard, Jr. 1928-1999
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 12, 2008
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, 2008, which
collectively comprise the Redevelopment Agency of the City of Azusa’s basic financial statements and
have issued our report thereon dated December 12, 2008. 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 control over financial reporting.
A control deficiency 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 significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the Agency’s ability to initiate, authorize, record, process, or report
financial data reliably in accordance with generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the Agency’s financial statements that is more than
inconsequential will not be prevented or detected by the Agency’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the Agency’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
203 N. Brea Blvd., Suite 2
203 N. Brea Blvd., Suite 203 ● Brea, CA 92821-4056 ● (714) 672-0022 ● Fax (714) 672-0331 ● www.lslcpas.com
Brandon W. Burrows
Donald L. Parker
Michael K. Chu
David E. Hale A Professional Corporation
Donald G. Slater
Richard K. Kikuchi
Certified Public Accountants Retired
Robert C. Lance
1914-1994
Richard C. Soll
Fred J. Lunghard, Jr. 1928-1999
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 12, 2008
4
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
STATEMENT OF NET ASSETS
JUNE 30, 2008
Governmental Activities
Assets:
Cash and investments 6,951,175$
Receivables:
Tax increment 557,654$
Accounts 185,687
Interest receivable 123,434
Loans 1,872,535
Total Receivables 2,739,310
Due from other governments 14,692,245
Deposits with others 28,650
Land held for resale (net)22,227,567
Deferred charges 1,399,881
Restricted assets:
Cash and investments with trustees 3,211,810
Capital assets (Net of Depreciation):
Land and improvements 1,442,084
Total Capital Assets 1,442,084
Total Assets 52,692,722
Liabilities:
See Notes to Financial Statements
Accounts payable and accrued expenses 1,675,916
Due to other governments 19,119,911
Deposits from others 210,758
Other current liabilities 23,554
Long-term liabilities:
Due within one year 892,746
Due in more than one year 77,507,278
Total Long-Term Liabilities 78,400,024
Total Liabilities 99,430,163
Net Assets:
Invested in capital assets, net of related debt 1,442,084
Restricted for:
Community development -
Debt service 3,284,132
Unrestricted (51,463,657)
Total Net Assets (46,737,441)$
See Notes to Financial Statements 5
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
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 2,766,817$ -$ -$ -$ (2,766,817)$
Community development 2,786,202 - - - (2,786,202)
Interest on long-term debt 4,878,270 - - - (4,878,270)
Total Governmental Activities 10,431,289$ -$ -$ -$ (10,431,289)
General Revenues:
Taxes (net of pass-through payments)2,734,601
Intergovernmental 1,551,177
Use of money and property 752,737
Miscellaneous revenue and donated assets 2 272 872
Program Revenues
See Notes to Financial Statements
Miscellaneous revenue and donated assets 2,272,872
Total General Revenues 7,311,387
Change in Net Assets (3,119,902)
Net Assets at Beginning of Year (43,617,539)
Net Assets at End of Year (46,737,441)$
See Notes to Financial Statements 6
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2008
Capital Debt Debt
Projects Service Service
Other Total
Tax Governmental Governmental
Project Increment Bonds Funds Funds
Assets:
Cash and investments 3,154,778$ 221,882$ -$ 3,574,515$ 6,951,175$
Cash and investments with trustee 894,974 - 2,316,836 - 3,211,810
Receivables:
Tax increment - 557,550 - 104 557,654
Accounts 7,898 176,789 - 1,000 185,687
Interest receivable 34,579 14,727 39,204 34,924 123,434
Loans 1,521,167 - - 351,368 1,872,535
Due from Debt Service funds - - - 111,531 111,531
Due from Low and Moderate
Housing Funds 100,883 - - - 100,883
Due from City 13,952,541 739,704 - - 14,692,245
Deposits with others 28,650 - - - 28,650
Land held for resale 23,103,797 - - - 23,103,797
Allowance for decline in value (876,230) - - - (876,230)
Merged
Project Area
Merged
Project Area
Merged
Project Area
Total Assets 41,923,037$ 1,710,652$ 2,356,040$ 4,073,442$ 50,063,171$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 706,089$ 156$ -$ 85,275$ 791,520$
Interest payable - - - 93,857 93,857
Deposits from others 210,758 - - - 210,758
Due to Capital Projects funds - - - 100,883 100,883
Due to Low and Moderate
Housing Funds - 111,510 - 21 111,531
Due to City 18,287,446 31,188 - 519,588 18,838,222
Due to other governments - 274,355 - 7,334 281,689
Deferred revenue 680,212 365,351 - 351,368 1,396,931
Salaries and benefits payable - - - 23,554 23,554
Total Liabilities 19,884,505 782,560 - 1,181,880 21,848,945
Fund Balances:
Reserved:
Land held for resale 22,227,567 - - - 22,227,567
Long-term loans receivable 841,680 - - - 841,680
Unreserved:
Designated:
Debt service - 928,092 2,356,040 - 3,284,132
Continuing projects - - - 2,891,562 2,891,562
Undesignated (1,030,715) - - - (1,030,715)
Total Fund Balances 22,038,532 928,092 2,356,040 2,891,562 28,214,226
Total Liabilities and
Fund Balances 41,923,037$ 1,710,652$ 2,356,040$ 4,073,442$ 50,063,171$
See Notes to Financial Statements 7
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, 2008
Fund balances of governmental funds 28,214,226$
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 1,442,084
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 1,396,931
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 1,399,881
Long-term liabilities, including bonds payable, are not due and payable in the
See Notes to Financial Statements
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 (39,546,698)
Developer loans (8,604,248)
Loans from City (30,567,345)
Other debt (60,794)
Unamortized net original issue discounts and (premiums)379,061
Accrued interest payable for the current portion of interest due on Tax Allocation
Bonds has not been reported in the governmental funds (790,539)
Net assets of governmental activities (46,737,441)$
See Notes to Financial Statements 8
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, 2008
Capital Debt Debt
Projects Service Service
Merged Merged Merged
Project Project Project
Area Area Area
Other Total
Tax Governmental Governmental
Project Increment Bonds Funds Funds
Revenues:
Taxes and assessments -$ 9,175,622$ -$ 159,093$ 9,334,715$
Use of money and property 405,253 66,943 106,419 174,122 752,737
Miscellaneous revenue and donated assets 2,556,020 - - 1,660 2,557,680
Total Revenues 2,961,273 9,242,565 106,419 334,875 12,645,132
Expenditures:
Current:
General government 1,540,253 - - 1,159,615 2,699,868
Community development 1,958,974 - - 76,501 2,035,475
Capital outlay 750,727 - - 1,413 752,140
Debt service 865,162 1,560,737 7,647,453 684,605 10,757,957
Other expenditures 209 001 75 807 284 808 Other expenditures 209,001 - - 75,807 284,808
Total Expenditures 5,324,117 1,560,737 7,647,453 1,997,941 16,530,248
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,362,844) 7,681,828 (7,541,034) (1,663,066) (3,885,116)
Other Financing Sources (Uses):
Transfers in 32,213,605 157,953 2,789,429 2,953,503 38,114,490
Transfers out (16,017,403) (4,216,253) (15,824,919) (2,055,915) (38,114,490)
Long-term debt issued 1,615,878 1,942,432 20,570,000 277,175 24,405,485
Pass-through agreement payments - (4,727,414) - (94,548) (4,821,962)
Miscellaneous - - (172,699) - (172,699)
Total Other Financing
Sources (Uses):17,812,080 (6,843,282) 7,361,811 1,080,215 19,410,824
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses 15,449,236 838,546 (179,223) (582,851) 15,525,708
Fund Balances:
Beginning of Year 6,589,296 89,546 2,535,263 3,474,413 12,688,518
End of Year 22,038,532$ 928,092$ 2,356,040$ 2,891,562$ 28,214,226$
See Notes to Financial Statements 9
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, 2008
Net change in fund balances - total governmental funds 15,525,708$
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 5,692,741
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Debt issuance costs on bonds issued 718,237
Amortization for current fiscal year (59,961)
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:
Ct iili i bdid 172 699
See Notes to Financial Statements
Current year original issuance premium on bonds issued 172,699
Amortization for current fiscal year (15,397)
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 (226,975)
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 (58,398)
Proceeds of debt is revenue in the governmental funds, but these are additions
to the statement of net assets (24,412,623)
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 (866,031)
Prior year accrual of interest due on bonds 410,098
Change in net assets of governmental activities (3,119,902)$
See Notes to Financial Statements 10
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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 Agency Board 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.
11
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
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 government
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.
12
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The Agency reports the following major governmental funds:
• 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.
13
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
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.
14
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
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.
15
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
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 expenditure 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, 2008, 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, 2008, cash and investments were reported in the accompanying financial
statements as follows:
Cash and investments 6,951,175$
Cash and investments with trustees 3,211,810
10,162,985$
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.
16
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Deposits
At June 30, 2008, the carrying amount of the Agency’s deposits was $660,147, 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 government 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 waive the collateral
requirement for deposits that are fully insured up to $100,000 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
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.
17
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
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, 2008, 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, 2008, 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, 2008, none of the Agency’s deposits or investments were exposed to
custodial credit risk.
Concentration of Credit Risk
The Agency’s investment policy imposes restrictions on the maximum percentage it can
invest in a single type of investment. These limitations are 30%, 20%, and 30% for
commercial paper, medium term notes, and repurchase agreements respectively. As of
June 30, 2008, in accordance with GASB 40 requirements, the Agency is exposed to
concentration of credit risk whenever they have invested more than 5% of their total
investments in any one issuer. As of June 30, 2008, the Agency had $1,954,903 (21%) of
its investments in Investment Agreements. Investments guaranteed by the U.S.
government, investments in mutual funds and external investment pools are excluded
from this requirement.
Interest Rate Risk
The Agency's investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The Agency's
investment policy states that no investment may have a maturity of more than five years
without receiving prior Agency Board approval. The only exception to these maturity limits
shall be the investment of the gross proceeds of tax-exempt bonds, and reserve funds
associated with bond issues. The Agency has elected to use the segmented time
distribution method of disclosure for its interest rate risk.
18
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
As of June 30, 2008, the Agency had the following investments and original maturities:
Less than 1 to 3 More than Fair
6 months years 5 years Value
California Local Agency
Investment Fund 6,391,028$ -$ -$ 6,391,028$
Cash with Fiscal Agents
Money Market Mutual Funds 1,156,898 - - 1,156,898
Mutual Funds 9 - - 9
Investment Agreements 1,954,903 - - 1,954,903
9,502,838$ -$ -$ 9,502,838$
Investment Maturities (in Years)
Note 4: Capital Assets
A summary of changes in capital assets follows:
Balance at Balance at
July 1, 2007 Additions Deletions Transfers June 30, 2008
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 337,740 58,398 - - 396,138
Total Accumulated Depreciation 337,740 58,398 - - 396,138
Total Capital Assets, net of
accumulated depreciation 1,500,482$ (58,398)$ -$ -$ 1,442,084$
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government 58,398$
19
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt
a. A description of long-term debt outstanding (excluding defeased debt) of the Agency as
of June 30, 2008 follows.
Tax Allocation Bonds
Tax allocation bonds payable consisted of the following at June 30, 2008:
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 $1,235,000 are due annually on August 1 beginning in the year
2004 through the year 2023. Interest rates ranging from 3.00% to 4.60% per
annum are payable on February 1 and August 1. Both principal and interest
payments are secured by tax increment revenues. 9,710,000$
$9,022,800 Series A Merged Project Area Tax Allocation Bonds, dated
February 17, 2005, were issued to finance redevelopment projects. Current
Interest Bonds are subject to annual sinking fund installment payments ranging
from $715,000 to $1,170,000 beginning August 1, 2027 through August 1,
2034. Capital Appreciation Bonds are due beginning August 1, 2024 through
August 1, 2027, with installment payments ranging from $195,000 to
$1,170,000. Debt service payments on the bonds are secured by tax increment
revenues.9,266,698
$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. Term
Bonds are due beginning August 1, 2010 through August 1, 2035, with
installment payments ranging from $385,000 to $1,625,000. Debt service
payments on the bonds are secured by tax increment revenues.15,780,000
$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. Term
Bonds are due beginning August 1, 2022 through August 1, 2036, with
installment payments ranging from $150,000 to $305,000. Debt service
payments on the bonds are secured by tax increment revenues.4,790,000
Total bonds payable 39,546,698$
20
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt (Continued)
The Azusa Redevelopment Agency has pledged through a portion of the tax increment
revenue that it receives as security for bonds. 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 bond issues described above and amounted to $73,450,226. For the current year, the
total tax increment revenue recognized net of pass throughs by the Agency was
$2,734,601 and debt service on bond outstanding was $1,171,779.
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 $4,158,240 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
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 balance at June 30, 2008, is
$8,604,246.
Loans from City
Loans from the City of Azusa bear interest at various rates and are due in varying
installments. At June 30, 2008, 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, 2008, is $4,239,679.
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, 2008, is $1,716,033.
21
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt (Continued)
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, 2008, is $3,910,000.
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, 2008, is $170,654.
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,
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, 2008, is $23,985.
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, 2008, is $13,443,218.
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, 2008, is $1,615,878.
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.
22
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt (Continued)
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, 2008, is $1,531,067.
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, 2008, is $185,204.
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 $459,983. 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, 2008, is
$1,625,257.
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, 2008, is $1,087,526.
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, 2008, is $1,018,844.
Total Loans from City at June 30, 2008, amount to $30,567,345.
23
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt (Continued)
Other Long-Term Debt Payable
Employee Leave Benefits 60,794$
b. The following is a summary of the changes in long-term debt of the Agency for the fiscal
year ended June 30, 2008:
Balance Balance Due Within
July 1, 2007 Additions Repayments June 30, 2008 One Year
Merged Project Area
City Loans - Principal 20,429,104$ 3,041,699$ 322,741$ 23,148,062$ -$
City Loans - Unpaid Interest 1,704,956 266,429 - 1,971,385 -
Developer Loans - Principal 4,558,300 - - 4,558,300 -
Developer Loans - Unpaid Interest 3,795,764 250,182 - 4,045,946 -
Bonds - 1997 Tax Allocation Refunding 4,935,000 - 4,935,000 - -
Bonds - 2003 Tax Allocation Refunding 10,145,000 - 435,000 9,710,000 445,000
Bonds - 2005 Tax Allocation, Series A 9,191,206 75,492 *- 9,266,698 -
Bonds - 2007 Tax Allocation, Series A - 15,780,000 - 15,780,000 340,000
Bonds - 2007 Tax Allocation, Series B - 4,790,000 - 4,790,000 80,000
Total 54,759,330 24,203,802 5,692,741 73,270,391 865,000
Ranch Center
City Loans - Principal 3,380,175 - - 3,380,175 -
City Loans - Unpaid Interest 771,704 277,175 - 1,048,879 -
Total 4,151,879 277,175 - 4,429,054 -
Combined Low and Moderate Housing
City Loans - Principal 1,018,844 - - 1,018,844 -
City Loans - Unpaid Interest - - - - -
Total 1,018,844 - - 1,018,844 -
Unallocated Between Project Areas
Employee Leave Benefits 53,656 7,138 - 60,794 27,746
Total 53,656 7,138 - 60,794 27,746
Total - All Project Areas
City Loans - Principal 24,828,123 3,041,699 322,741 27,547,081 -
City Loans - Unpaid Interest 2,476,660 543,604 - 3,020,264 -
Developer Loans - Principal 4,558,300 - - 4,558,300 -
Developer Loans - Unpaid Interest 3,795,764 250,182 - 4,045,946 -
Bonds Payable 24,271,206 20,645,492 5,370,000 39,546,698 892,746
Employee Leave Benefits 53,656 7,138 - 60,794 -
Total 59,983,709$ 24,488,115$ 5,692,741$ 78,779,083 892,746$
Adjustments:
Unamortized net original issue (discount) or premium (379,059)
Net Long-term Debt 78,400,024$
* Additions include $75,492 for accreted interest for the fiscal year ended June 30, 2008.
24
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt (Continued)
c. The following schedule illustrates the debt service requirements to maturity for bonds
outstanding as of June 30, 2008. Excluded are obligations for which the actual amounts
of annual debt service depend on various factors that are not yet determinable.
Principal Interest Principal Interest Principal Interest
2008 - 2009 445,000$ 377,998$ -$ 349,425$ 340,000$ 934,170$
2009 - 2010 450,000 367,085 - 349,425 365,000 915,545
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 - 2018 2,770,000 1,318,822 - 1,747,125 2,535,000 3,827,350
2018 - 2023 3,380,000 675,363 - 1,747,125 3,380,000 2,965,398
2023 - 2028 1,235,000 28,405 2,216,698 1,747,125 1,940,000 2,137,125
2028 - 2033 - - 5,150,000 2,812,901 3,030,000 1,411,118
2033 - 2038 - - 1,900,000 734,365 2,965,000 333,484
Totals 9,710,000$ 3,785,247$ 9,266,698$ 10,535,766$ 15,780,000$ 15,138,482$
2003 Tax Allocation Refunding
Bonds, Series A
2005 Tax Allocation Refunding
Bonds, Series A
2007 Tax Allocation Bonds,
Series A
Principal Interest
2008 - 2009 80,000$ 241,164$
2009 - 2010 85,000 237,811
2010 - 2011 85,000 234,230
2011 - 2012 90,000 230,423
2012 - 2013 95,000 226,305
2013 - 2018 545,000 1,061,399
2018 - 2023 680,000 916,404
2023 - 2028 875,000 717,669
2028 - 2033 1,125,000 454,873
2033 - 2038 1,130,000 123,755
Totals 4,790,000$ 4,444,033$
2007 Tax Allocation Bonds, Series
B
d. As of June 30, 2008, 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:
25
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 5: Long-Term Debt (Continued)
Original
Year Amount Balance at
Issued Issued June 30, 2008 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
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 7,397,470$ 20% 1,479,494$
Ranch Center Project Area 159,093 20%31,819
Total 7,556,563$ 1,511,313$
(1) Includes Los Angeles County portion.
The amount of $1,511,313 is represented as transfers of tax increment from the Merged
Project and Ranch Center debt service funds to the combined low and moderate income
housing special revenue fund. As of June 30, 2008, there were no amounts determined to be
excess surplus as defined by the Health and Safety Code.
26
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
IV. OTHER DISCLOSURES
Note 7: Insurance
The Azusa Redevelopment Agency is covered under the City of Azusa’s insurance policies.
Therefore, the limitation and self-insured retentions applicable to the City of Azusa also apply
to its redevelopment agency. Additional information as to coverage and self-insured
retentions can be obtained by contacting the City.
Note 8: Interfund Receivable, Payable and Transfers
The composition of interfund balances as of June 30, 2008, is as follows:
a. Due To/From Other Funds
Tax Increment -
Merged Project
Area
Nonmajor
Funds Total
Due from Other Funds (receivable):
Capital Project:
Merged Project Area -$ 100,883$ 100,883$
Nonmajor Funds 111,510 21 111,531
Total 111,510$ 100,904$ 212,414$
Due to Other Funds (payable)
The amounts due to the Combined Housing Fund of $111,531 is tax increment receivable
due from the Debt Service Funds. The amounts due to capital project fund is from
interfund loan proceeds.
27
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 8: Interfund Receivable, Payable and Transfers (Continued)
b. Interfund Transfers
The total transfer of $1,511,313 to the Combined Housing Fund represents the 20% tax
increment revenue from the Debt Service Funds.
The transfer of $15,004,153 to the Capital Projects Fund was to fund capital projects.
The total transfer of $2,947,382 to the Debt Service Tax Increment Fund was to cover
debt service payments.
Debt
Service
Capital
Project
Debt
Service
Merged
Project Area -
Bonds
Merged
Project Area
Merged
Project Area -
Tax
Increment
Nonmajor
Funds Total
Capital Projects:
Merged Project - Project 15,004,153$ 15,859,450$ 1$ 1,350,001$ 32,213,605$
Debt Service:
Merged Project-Tax Increment - 157,953 - - 157,953
Merged Project-Bonds 819,301 - 1,585,003 385,125 2,789,429
Nonmajor Funds 1,465 - 2,631,249 320,789 2,953,503
Total 15,824,919$ 16,017,403$ 4,216,253$ 2,055,915$ 38,114,490$
Transfers Out
Transfers In:
Note 9: Pass-Through Agreement Payments
At June 30, 2008, the Agency had expenditures of $4,821,962 to other agencies and entities
related to specific pass-through agreements.
Central
Business Ranch
District West End Center Total
Pass-Through Payments
Agencies and Entities:
L.A. County Pass-Through Agrmts 908,339$ 1,355,634$ 84,402$ 2,348,375$
City of Azusa (statutory)38,206 10,374 - 48,580
Azusa Unified School District 57,579 11,310 4,097 72,986
Citrus College 4,929 1,326 3,182 9,437
Other Taxing Agencies 63,102 61,321 2,867 127,290
County/state pool - 136,370 - 136,370
City of Azusa (Price Club General Fd Note)- 1,425,821 - 1,425,821
City of Azusa (Price Club Sales Tax)- 653,103 - 653,103
Total Pass-Through Payments 1,072,155$ 3,655,259$ 94,548$ 4,821,962$
Merged Project Area
Project Areas
Amended and Restated
28
Redevelopment Agency of the City of Azusa
Notes to Financial Statements (Continued)
Note 10: Subsequent Events
2008 Bonds
The Azusa Redevelopment Agency issued $11,580,000 of Housing Tax Allocation Bonds,
Series B in November 2008. Proceeds of the Bonds will be used to provide funds to finance
low and moderate income housing within or of benefit to the Project Area, satisfy the reserve
requirement for the Bonds, and pay costs incurred in connection with the issuance, sale and
delivery of the Bonds. The bonds consist of Serial Bonds due in annual installments ranging
from $125,000 to $355,000 maturing on August 1, 2009 through August 1, 2020; and Term
Bonds of $1,075,000 due August 1, 2024 and $8,420,000 due August 1, 2038. Serial bonds
have interest rates ranging from 3.5% through 6.6%. The term bonds carry interest rates of
6.75% and 7.0%. The bonds were assigned a rating of “A-“from Standard & Poors in
November 2008.
The Azusa Redevelopment Agency issued $6,715,000 of Tax Allocation Bonds, Series A in
December 2008. Proceeds of the Bonds will be used to provide funds to finance
redevelopment activities, satisfy the reserve requirement for the Bonds, and pay costs
incurred in connection with the issuance, sale and delivery of the Bonds. The bonds consist
of Serial Bonds due in annual installments ranging from $70,000 to $140,000 maturing on
August 1, 2009 through August 1, 2018; and Term Bonds of $1,850,000 due August 1, 2023
and $1,815,000 due August 1, 2028 and $2,045,000 due on August 1, 2034. Serial bonds
have interest rates ranging from 4.5% through 6.75%. The term bonds carry interest rates of
7.5% and 8.0%. The bonds were assigned a rating of “A-“from Standard & Poors in
November 2008.
ERAF Tax Increment Revenue Shift
On September 30, 2008, the California Legislature passed AB 1389, requiring a shift in tax
increment revenues during fiscal year 2008-2009 to the state Educational Revenue
Augmentation Fund (ERAF). It is estimated that the Agency’s share of the ERAF shift for
fiscal year 2008-2009 will amount to approximately $512,545.
Financial Concerns Relating to the California Economy
As indicated in the State of California’s 2008-2009 Proposed Budget Summary – Economic
Outlook:
“The California and national economies faced considerable headwinds -a deepening
housing slump, a breakdown in mortgage markets, tighter credit, more volatile
financial markets, and rising energy prices. Upward resets of subprime mortgage rates
made payments unaffordable for many borrowers and helped push mortgage defaults
and foreclosures to record levels. Several large financial institutions reported huge
losses on subprime mortgages and securities backed by these mortgages. Uncertainty
about how far the problems with these mortgages would spread increased financial
market volatility and prompted lenders to tighten credit standards. The Federal
Reserve injected liquidity into the financial markets and eased monetary policy on a
number of occasions in the second half of the year, but as year-end neared, financial
markets were still not functioning normally.”
While the values shown in the attached financial statements reflect those present at
June 30, 2008, substantial changes have occurred in the economy in which the City and its
component units operate. Therefore, the projection of the financial data for the City and its
component units into future periods must recognize these factors and consider the effect of
these on its operations and costs.
In September, 2008 certain financial institutions in the United States encountered difficulties,
causing volatility in the financial markets. It is not possible to determine what effect the
volatility of the financial markets could have on the fair value of this asset in future fiscal
periods.
29
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2008
Capital Special Debt Debt Capital
Projects Revenue Service Service Projects
General Combined Tax
Agency Housing Tax Revenue
Fund Fund Increment Bonds Project
ASSETS
Cash and investments 582,734 $ 2,875,352 $ 221,882 $ - $ 3,154,778 $
Cash and investments with trustee - - - 2,316,836 894,974
Receivables:
Tax increment - - 557,550 - -
Accounts 1,000 - 176,789 - 7,898
Interest receivable 18 34,154 14,727 39,204 34,579
Loans - 351,368 - - 1,521,167
Due from Debt Service Funds - 111,531 - - -
Due from Low and Moderate
Housing Funds - - - - 100,883
Due from City - - 739,704 - 13,952,541
Deposits with others - - - - 28,650
Land held for resale - - - - 23,103,797
Allowance for decline in value - - - - (876,230)
Total Assets 583,752 $ 3,372,405 $ 1,710,652 $ 2,356,040 $ 41,923,037 $
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 45,020 $ 40,255 $ 156 $ - $ 706,089 $
Interest payable - 61,131 - - -
Deposits from others - - - - 210,758
Due to Capital Projects Funds - 100,883 - - -
Due to Low and Moderate
Housing Funds - - 111,510 - -
Due to City 515,178 4,410 31,188 - 18,287,446
Due to other governments - - 274,355 - -
Deferred revenue - 351,368 365,351 - 680,212
Salaries and benefits payable 23,554 - - - -
Total Liabilities 583,752 558,047 782,560 - 19,884,505
Fund Balances:
Reserved:
Land held for resale - - - - 22,227,567
Long-term loans receivable - - - - 841,680
Unreserved:
Designated:
Debt service - - 928,092 2,356,040 -
Continuing projects - 2,814,358 - - -
Undesignated - - - - (1,030,715)
Total Fund Balances - 2,814,358 928,092 2,356,040 22,038,532
Total Liabilities and
Fund Balances 583,752 $ 3,372,405 $ 1,710,652 $ 2,356,040 $ 41,923,037 $
Merged Project Area
30
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
COMBINING PROJECT AREA BALANCE SHEETCOMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDSALL GOVERNMENTAL FUNDS
JUNE 30 2008JUNE 30, 2008
RhCtRanch Center
Debt CapitalDebtCapital
Si Pjt TOTALSServiceProjectsT O T A L S
Debt Capital Special Debt Capital Special
T Si Pjt RTax Service Projects Revenue
Increment Project Funds Funds Funds Increment Project Funds Funds Funds
ASSETSASSETS
Cash and investments 39 817$76 612$261 699$3 814 124$2 875 352$Cash and investments 39,817 $ 76,612 $ 261,699 $ 3,814,124 $ 2,875,352 $
Cash and investments with trustee - - 2,316,836 894,974 -
Receivables:
,,,
Receivables:
Ti t 104 557 654 Tax increment 104 - 557,654 - -
Accounts --176 789 8 898 - Accounts
Interest receivable
176,789 8,898
160 592 54 091 35 189 34 154Interest receivable 160 592 54,091 35,189 34,154
Loans - - - 1,521,167 351,368
Due from Debt Service Funds
,,,
111 531Due from Debt Service Funds - - - - 111,531
Due from Low and Moderate
Housing Funds ---100 883 - Housing Funds
Df Cit
- - - 100,883 -
739 704 13 952 541Due from City - - 739,704 13,952,541 -
Deposits with others ---28,650 -Deposits with others
Land held for resale
28,650
23 103 797Land held for resale - - - 23,103,797 -
Allowance for decline in value - - - (876,230) - (,)
Total Assets 40 081$77 204$4 106 773$42 583 993$3 372 405$ Total Assets 40,081 $ 77,204 $ 4,106,773 $ 42,583,993 $ 3,372,405 $
LIABILITIES AND FUND BALANCESLIABILITIES AND FUND BALANCES
Li bilitiLiabilities:
Accounts payable -$-$156$751 109$40 255$ Accounts payable
It t bl
$ $ 156 $ 751,109 $ 40,255 $
32 726 32 726 61 131 Interest payable 32,726 - 32,726 - 61,131
Deposits from others ---210,758 - Deposits from others
Due to Capital Projects Funds
210,758
100 883 Due to Capital Projects Funds - - - - 100,883
Due to Low and Moderate
Housing Funds 21 -111 531 -- Housing Funds
DtCit
21 - 111,531 - -
31 188 18 802 624 4 410 Due to City - - 31,188 18,802,624 4,410
Due to other governments 7 334 -281 689 -- Due to other governments
Deferred revenue
7,334 281,689
365 351 680 212 351 368 Deferred revenue - - 365,351 680,212 351,368
Salaries and benefits payable - - - 23,554 - py ,
Total Liabilities 40 081 822 641 20 468 257 558 047 Total Liabilities 40,081 - 822,641 20,468,257 558,047
Fund Balances:Fund Balances:
Reserved: Reserved:
Land held for resale - - - 22,227,567 -
Long term loans receivable
,,
841 680 Long-term loans receivable - - - 841,680 -
Unreserved:
Designated: Designated:
Dbt i 3 284 132 Debt service - - 3,284,132 - -
Continuing projects -77,204 -77,204 2,814,358 Continuing projects
Undesignated
77,204 77,204 2,814,358
(1 030 715) Undesignated - - - (1,030,715) -
Total Fund Balances -77,204 3,284,132 22,115,736 2,814,358 Total Fund Balances 77,204 3,284,132 22,115,736 2,814,358
Total Liabilities and
Fund Balances 40 081$77 204$4 106 773$42 583 993$3 372 405$ Fund Balances 40,081 $ 77,204 $ 4,106,773 $ 42,583,993 $ 3,372,405 $
31
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, 2008
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 - $ - $ 7,397,470 $ - $ - $
Sales and use tax - - 1,778,152 - -
Use of Money and Property:
Interest income 4,546 165,319 66,943 106,419 291,818
Rental income - 1 - - 113,435
Other revenue:
Miscellaneous revenue 1,660 - - - 117,516
Land donated from City - - - - 2,438,504
Total Revenues 6,206 165,320 9,242,565 106,419 2,961,273
Expenditures:
Current:
General Government:
Administrative costs 888,685 46,318 - - 290,783
Professional services 169,438 55,174 - - 1,249,470
Community Development:
Real estate acquisitions - - - - 228,680
Operation of acquired property - - - - 1,055,035
Relocation payments - - - - 645,000
Disposal costs - - - - 5,259
Rehabilitation costs - 76,501 - - 25,000
Capital Outlay:
Project improvement costs - - - - 750,727
Acquisition of fixed assets 1,413 - - - -
Debt Service:
Debt issuance costs - - - 718,237 -
Interest expense 313,420 61,284 1,237,996 1,559,216 865,162
Long-term debt repayments - - 322,741 5,370,000 -
Other Expenditures:
Grant expenditures - - - - 209,001
Contributions from City 75,807 - - - -
Total Expenditures 1,448,763 239,277 1,560,737 7,647,453 5,324,117
Excess of Revenues over
(under) Expenditures (1,442,557)$ (73,957)$ 7,681,828 $ (7,541,034)$ (2,362,844)$
Other Financing Sources (Uses)
Transfers in 1,441,157 $ - $ 157,953 $ 2,789,429 $ 32,213,605 $
Transfers out - (2,023,063) (2,736,759) (15,824,919) (16,017,403)
Housing set-aside transfers in - 1,511,313 - - -
Housing set-aside transfers out - - (1,479,494) - -
Long-term debt issued - - 1,942,432 20,570,000 1,615,878
Pass through agreement payments - - (4,727,414) - -
Miscellaneous - - - (172,699) -
Total Other Financing Sources
(Uses) 1,441,157 (511,750) (6,843,282) 7,361,811 17,812,080
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses (1,400) (585,707) 838,546 (179,223) 15,449,236
Fund Balances
Beginning of Year 1,400 3,400,065 89,546 2,535,263 6,589,296
End of Year - $ 2,814,358 $ 928,092 $ 2,356,040 $ 22,038,532 $
Merged Project Area
32
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, 2008
Revenues:
Taxes and Assessments:
Tax increment
Sales and use tax
Use of Money and Property:
Interest income
Rental income
Other revenue:
Miscellaneous revenue
Land donated from City
Total Revenues
Expenditures:
Current:
General Government:
Administrative costs
Professional services
Community Development:
Real estate acquisitions
Operation of acquired property
Relocation payments
Disposal costs
Rehabilitation costs
Capital Outlay:
Project improvement costs
Acquisition of fixed assets
Debt Service:
Debt issuance costs
Interest expense
Long-term debt repayments
Other Expenditures:
Grant expenditures
Contributions from City
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
Miscellaneous
Total Other Financing Sources
(Uses)
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses
Fund Balances
Beginning of Year
End of Year
Debt Capital
Service Projects
Debt Capital Special
Tax Service Projects Revenue
Increment Project Funds Funds Funds
159,093 $ - $ 7,556,563 $ - $ - $
- - 1,778,152 - -
1,033 3,223 174,395 299,587 165,319
- - - 113,435 1
- - - 119,176 -
- - - 2,438,504 -
160,126 3,223 9,509,110 2,970,702 165,320
- - - 1,179,468 46,318
- - - 1,418,908 55,174
- - - 228,680 -
- - - 1,055,035 -
- - - 645,000 -
- - - 5,259 -
- - - 25,000 76,501
- - - 750,727 -
- - - 1,413 -
- - 718,237 - -
309,901 - 3,107,113 1,178,582 61,284
- - 5,692,741 - -
- - - 209,001 -
- - - 75,807 -
309,901 - 9,518,091 6,772,880 239,277
(149,775)$ 3,223 $ (8,981)$ (3,802,178)$ (73,957)$
- $ 1,033 $ 2,947,382 $ 33,655,795 $ - $
(1,033) - (18,562,711) (16,017,403) (2,023,063)
- - - - 1,511,313
(31,819) - (1,511,313) - -
277,175 - 22,789,607 1,615,878 -
(94,548) - (4,821,962) - -
- - (172,699) - -
149,775 1,033 668,304 19,254,270 (511,750)
- 4,256 659,323 15,452,092 (585,707)
- 72,948 2,624,809 6,663,644 3,400,065
- $ 77,204 $ 3,284,132 $ 22,115,736 $ 2,814,358 $
Ranch Center
T O T A L S
33
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, 2007 July 1, 2008
Opening Fund Balance 3,400,065$ 2,814,358$
Less Unavailable Amounts - -
Available Low and Moderate Income Housing Funds 3,400,065 2,814,358
Limitation (greater of $1,000,000 or four years set-aside)
Set-Aside for last four years:
2007 - 2008 -$ -$
2006 - 2007 1,508,994 1,508,994
2005 - 2006 1,379,024 1,379,024
2004 - 2005 1,287,007 1,287,007
2003 - 2004 1,256,872 -
Total 5,431,897$ 4,175,025$
Base Limitation 1,000,000$ 1,000,000$
Greater amount 5,431,897 4,175,025
Computed Excess/Surplus None None
34