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01/25/2011 FILECOPY. LIT:y r-. - O . .GREPIO TERR CE January 25,2011 22795-Barton Road Grand.Terra.ce- California 92313-5295 Civc,Center CITY OF GRAND .TERRACE r (909)824-6621 Fax(909)783-7629 Fax(909).78372600 CRA/CITY COUNCIL Wait,Stanckiewitz Mayor REGULAR MEETINGS Lee Ann Garcia 'Mayor'ProTem 2ND'AND 4Tx Tuesday - -6400 p,m. Bernardo Sandoval Darcy McNaboe ' Gene Bays' 'Copncil Members. Be_isy M.Adams City Manager' Council Chambers Grand-Terrace Civic Center 22795.Barton.Road Grand Terrace, CA 92313-5295 CITY OF GRAND TERRACE COUNCIL MEETING AMENDED AGENDA CITY COUNCIL CHAMBERS January 25,2011 GRAND TERRACE CIVIC CENTER Workshop at 4:30 p.m.' 22795 Barton Road Meeting at 6:00 p.m. THE CITY OF GRAND TERRACE COMPLIES WITH THE AMERICANS WITH DISABILITIES ACT OF 1990. IF YOU REQUIRE SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING,PLEASE CALL THE CITY CLERK'S OFFICE AT (909)824-6621 AT LEAST 48 HOURS PRIOR TO THE MEETING. - IF YOU DESIRE TO ADDRESS THE CITY COUNCIL DURING THE MEETING,PLEASE COMPLETE A REQUEST TO. SPEAK FORM AVAILABLE AT THE ENTRANCE AND PRESENT IT TO THE CITY CLERK. SPEAKERS WILL BE CALLED UPON BY THE MAYOR AT THE APPROPRIATE TIME. ANY DOCUMENTS PROVIDED TO A MAJORITY OF THE CITY COUNCIL REGARDING ANY ITEM ON THIS AGENDA WILL BE MADE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK'S OFFICE AT CITY HALL LOCATED AT 22795 BARTON ROAD DURING NORMAL BUSINESS HOURS. IN ADDITION,SUCH DOCUMENTS WILL BE POSTED ON THE CITY'S WEBSITE AT WWW.CITYOFGRANDTERRACE.ORG * Call to Order- * Invocation- * Pledge of Allegiance * Roll Call- STAFF COUNCIL AGENDA ITEMS RECOMMENDATION ACTION 4:30 P.M. JOINT CRA/CITY COUNCIL WORKSHOP 1. FY 2009-10 Audit and Restated Fund Balance in FY 2011-12 2. Potential Fiscal Impacts of Governor's Proposed 2011-12 Budget 6:00 P.M. CONVENE COMMUNITY REDEVELOPMENT AGENCY 1. Approval of 01-11-2011 Minutes Approve 2. Annual Report to the Legislative Body Accept 3. Town Square Project Update Receive ADJOURN COMMUNITY REDEVELOPMENT AGENCY CONVENE CITY COUNCIL 1. Items to Delete 2. SPECIAL PRESENTATIONS A. Recognition of Winter Storm Emergency Response Workers B. Introduce New Detective,Traffic Deputy and Deputy 3. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member,Staff Member,or Citizen may request removal of an item from the Consent Calendar for discussion. A. Approve Check Register No. 01-25-2011 Approve COUNCIL AGENDA 01-25-2011 PAGE 2 OF 2 AGENDA ITEMS STAFF COUNCIL RECOMMENDATIONS ACTION B. Waive Full Reading of Ordinances on Agenda C. Approval of Minutes of 0 1-11-2011 Approve D. Emergency Operations Committee Minutes of 12/07/2010 Accept E. Historical and Cultural Activities Committee Minutes of Accept 12/06/2010 F. Treasurer's Report for Quarter Ending September 30,2010 Approve G. Treasurer's Report for Quarter Ending December 31,2010 Approve H. Town Square Project Update 4. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law,the City Council may not discuss or act on any item not on the agenda,but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. 5. COUNCIL REPORTS 6. PUBLIC HEARINGS-None 7. UNFINISHED BUSINESS-None 8. NEW BUSINESS A. Attendance of Majority of City Council Members at a Meeting of Another Public Agency 9. CLOSED SESSION A. Conference with Legal Counsel-Existing Litigation GC54956.9-Chambers Group B. Labor Negotiations(GC 54957.6)Conference with Labor Negotiator-Betsy M.Adams Representing Unrepresented Employees ADJOURN THE NEXT CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY,FEBRUARY 8,2011 AT 6:00 P.M. ........................................................................................................................... AGENDA ITEM REQUESTS MUST BE SUBMITTED IN WRITING TO THE CITY CLERK'S OFFICE NO LATER THAN 14 CALENDAR DAYS PRECEDING THE MEETING. ' AGENDA REPORT CALIFORRIA MEETING DATE: January 25, 2011 Council Item(X) CRA Item . TITLE: Workshop FY 2009-10 Audit&Restated Fund Balance PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: None ; BACKGROUND: An annual audit is required by the municipal code,various direct and indirect state laws,bond indentures, federal law by virtue of receiving federal funds and the health and safety code for redevelopment agencies. The auditor is required to conduct the audit in accordance with governmental auditing standards, state law and standard accounting and auditing practices and pronouncements. The auditor is also required to issue a report of the internal control and report any findings that the auditor believes is a deficiency that may effect the reporting of the financial results of the entity being audited. DISCUSSION: The attached items will be discussed at the workshop. 1) Draft City Annual Financial Report 2) Draft City Report on Internal Controls 3) CRA Annual Financial Report(included in agenda packet) Our Auditor Terry Shea will be available for questions. Respect lly submitted, Bernie Simon Finance Director Approval:Manager A g pP ._�� Betsy 1V)/Adams City Manager Workshop Item No. 1 iALI'FORNIA AGENDA REPORT MEETING DATE: January 25, 2011 Council Item (X) CRA Item (X) TITLE: Potential Fiscal Impacts of Governor's Proposed 2011-12 Budget PRESENTED BY: Betsy M. Adams, City Manager RECOMMENDATION: Receive information and consider if staff should be directed to pursue options to mitigate the loss of revenues if redevelopment agencies are disestablished. BACKGROUND: On January 10, 2011, the Governor submitted his proposed 2011-12 budget to the Senate and the. Assembly of the California Legislature. On January 12, 2011, the Legislative Analyst's Office issued an overview of the Governor's proposed budget. DISCUSSION: The Governor has issued a proposed budget for 2011-12 which addresses an $8.2 billion deficit in the current year and $17.2 billion deficit next fiscal year ($25.4 billion total). The Governor's proposed budget anticipates a weak economic recovery into 2016. To bring the state's budget into balance, the Governor's proposed budget is comprised of three key elements —restructuring, the state-local relationship in the delivery of services, voter approved extension of temporary tax increases, and expenditure cuts. The focus of this staff report will be on the proposed' restructuring of the state-local relationship which includes a significant realignment of local revenues and could create significant fiscal impacts for the City. It is important to note that a governor's January budget proposal has typically been the starting'. point of budget negotiations with the Legislature. The Governor's proposed 2011-12 budget has; been favorably reviewed by the Legislative Analyst's Office, including the proposal to, disestablish redevelopment agencies. The potential impacts to the City of the Governor's proposed 2011-12 budget are based upon; information known to staff through January 19, 2011. Written details on the proposed realignment of local revenues, and specifically the disestablishment of redevelopment agencies, are anticipated to be available in about three weeks. j' Realignment State-Local Relationship The Governor's proposed realignment of the state-local relationship includes shifting program responsibilities and costs from the state to the counties with funding for this coming from the, disestablishment of redevelopment agencies. The fiscal impact to the City of the loss of its Community Redevelopment Agency (CRA) is significant in terms of operating expenditures,, funding capital improvements identified in the CRA's Implementation Plan for 2010-2014, and Workshop Item No. 2 Governor's Proposed 2011-12 Budget January 25, 2011 Page Number 2 funding of other possible projects in the future. The potential impacts in these three areas, along with the impact to state funding of local law enforcement grants and jail booking fee subventions if the realignment does not occur, will be identified in the following sections of this staff report. CRA Operating Expenses The following operating expenses are allocated to the CRA in the City's Fiscal Year (FY) 2010- 11 budget: Description- $ Personnel Costs 484,568 Maintenance&Operations 350,137 Overhead Cost Allocation 380,073 Total 1,214,778 Source is page 199 of FY 2010/11 adopted budget. In Operations & Maintenance, there is $114,903 which is paid to the County for administering the pass through of the CRA property tax increment. As this is similar to a contractual obligation, staff at this point in time believes the City will continue to receive increment to offset this expense. This would reduce the City's exposure in Maintenance & Operations, which is largely agreements for professional services, to $235,234 as shown below: Description $ Personnel Costs 484,568 Maintenance & Operations 235,234 Overhead Cost Allocation 380,073 Total 1,099,875 If the Governor's proposal to disestablish redevelopment agencies comes to fruition, the City may receive an estimated additional $200,000 in property tax revenue in FY 2011/12 which would partially offset the loss of nearly $1.1 million in operating expenses currently allocated to the CRA. The City would need to address, before July 1, how to deal with the loss of approximately $900,000 in redevelopment revenue used for operating expenses. The General Fund operating budget is not in a position to absorb this without making corresponding decreases elsewhere. Minimal growth in general revenues is anticipated in FY 2011-12. The FY 2010-11 operating budget projects General Fund revenues to be $ $4,404,539 and expenditures to be $4,843,812 with the shortfall to be covered by reserves. The $900,000 loss of redevelopment revenue is equivalent to 20% of the General Fund revenues this fiscal year. The two largest expenses in the General Fund operating budget are personnel costs at $2,050,383 and law enforcement services (primarily the contract with the Sheriff's Department) at $2,025,569. It should be noted that the $2,050,383 in personnel costs includes the savings from the temporary reduction in work week (from 40 hours to 36 hours) implemented in May 2010. Also, Child Care Services comprises $754,228 of the general fund personnel costs. This department's revenue exceeds its expenditures and covers its cost allocation of$164,398 thus it is not likely significant budget reductions would be made in this department to offset the loss of redevelopment funds for operating expenses. Governor's Proposed 201 1-l 2 Budget January 25, 2011 Page Number 3 There are 14 positions for which a portion is directly allocated to the CRA, comprising the $484,568 in personnel costs noted in the previous table. A listing of these positions follows: # Title Capital Low/Mod Total Projects Housing CRA Fund 32 Fund 34 1 City Manager 15% 10% 25% 2 Assistant to the City Manager 15% 10% 25% 3 City Clerk 15%_ 10% 25% 4 Deputy City Clerk 15% 10% 25% 5 Finance Director 15% 10% 25% 6 Senior Account Technician 15% 10% 25% 7 Account Clerk 15% 10% 25% 8 Building & Safety/Public Works Director 20% 20% 40% 9 Code Enforcement Officer 0 60% 60% 10 Secretary 40% 0 40% 11 Community& Economic Development Director 40% 10% 50% 12 Senior Planner 20% 10% 30% 13 Management.Analyst 50% 0 50% 14 City Attorney* 50% 0 50% *Provided by contract service. The City has 20 full-time employees, excluding Child Care Services and including 13 of the positions listed above. As part of the budget process for FY 2011-12, staff is prepared to develop alternatives for Council consideration to address the potential loss of nearly $900,000 in redevelopment funds for operational expenses. CRA Implementation Plan Projects for 2010-2014 When the Council, as the Agency Board, adopted the CRA Implementation Plan for 2010-2014, 14 non-housing redevelopment projects with a total preliminary cost estimate of$4,940,000 were included. Three of these projects have been completed — Grand Terrace Road reconstruction, Grand terrace Road landscaping, and Public Message Sign Project. Three projects are in progress — High School Storm and Signal Improvements, Senior Center Commercial Kitchen Improvements, and Baseball Park Project. If the Governor prevails in disestablishing redevelopment agencies, the following projects in the CRA Implementation Plan (totaling $4,195,000) could loose funding: # Project Description $ 1 Mixed Use Specific Plan—continue land assembly 2,000,000 2 Barton Road Infrastructure Improvements 500,000 3 Land Assembly on Barton Road 300,000 4 Barton Road Utility Undergrounding 275,000 5 Michigan Street Improvements—design & right-of-way acquisition 400,000 6 Barton Road Specific Plan Update 150,000 7 Commercial Improvement Grant Projects 300,000 8 Vista Grande Park Project 70,000 Governor's Proposed 201 1-12 Budget January 25, 2011 Page Number 4 CRA Capital Projects, Fund 32, has fund balance available for these projects. There is concern that if redevelopment agencies are disestablished that fund balances may be taken by the state. Possible Future CRA Projects When the Council, as the Agency Board, adopted the Plan Amendment for the CRA last year there was discussion on potentially issuing bonds in the future for additional redevelopment projects. It was tentatively planned to begin seeking public input on possible projects after the adoption of the FY 2011-12 budget (e.g. summer 2011). As the Governor hopes to disestablish redevelopment agencies by July 1, 2011, a decision as to whether or not to issue bonds or other debt would need to be made quickly. Preliminary estimates indicate that the CRA has tax increment available to issue up to an additional $20 million in debt. Staff has developed a list of potential infrastructure projects which could be considered for such debt funding: # Project Description Preliminary Cost Estimate 1 Union Pacific/Barton Bride 500,000 2 Michigan Street Improvements—construction 3,000,000 3 Storm Drain/Street Rehabilitations — Van Buren, Pico, Michigan & Main 12,000,000 Streets 4 Mt. Vernon Slope Stabilization—Grand terrace Road to City Limit 2,000,000 5 Infrastructure Study for South West Commercial Zone 300,000 6 Infrastructure for South West Commercial Zone 2,000,000 Total 19,800,000 � It is important to note, if the council has an interest in having the CRA issue debt, that it is possible to substitute projects in the future. The California Redevelopment Association has advised redevelopment agencies to not rush to issue debt or spend redevelopment funds while it may still be possible to do so. As of January 18, three cities have held special meetings to do the opposite of this recommendation — Los Angeles authorized $930 million in redevelopment projects, Fremont authorized $140 million and Citrus Heights authorized $60 million. In addition to the significant fiscal ramifications to the City if redevelopment agencies are disestablished, the Governor's proposed budget could also place some local law enforcement funding at risk. State Funding of Local Law Enforcement The Governor's proposed budget includes funding for local law enforcement grants and booking fee subventions to be backfilled on a dollar-for-dollar basis with realignment funding which includes the disestablishment of redevelopment agencies. If the state-local realignment were not to occur, funding for these programs may be at risk. For the City, this could mean increased annual public safety costs of approximately $136,000 — loss of $100,000 Citizens' Option for Public Safety Program grant plus loss of Jail Booking Fee Subventions. Governor's Proposed 2011-12 Budget January 25, 2011 Page Number 5 Next Steps The Governor's proposed state-local restructuring/realignment, including the disestablishment of. redevelopment agencies, could create serious fiscal challenges for the City. In the short-term; absent an infusion of $900,00 in new revenues, services provided by the City beyond public safety could likely be reduced to only those legally mandated or necessary to be an incorporated city. In addition, the majority of the City's infrastructure needs could not be met unless local funding was established. There are several questions for the Council to consider in providing general direction to staff on whether or not to attempt to preserve the City's redevelopment funds in light of the Governor's proposed budget for 2011-12. All of these items would require formal Council and/or Agency Board action at a public meeting to implement. ■ Should staff determine how redevelopment bonds, or any other type of debt, could be issued? ■ Should staff explore whether creating an Economic Development Corporation or a Local housing Authority could protect the existing fund balance in Fund 32 and Fund 34? ■ Should staff explore how CRA owned property could be transferred to the City, or other agency such as listed above, in the event it is determined that counties instead of cities are the successor local agencies to be created if redevelopment agencies are disestablished? ■ Should staff explore whether a lobbyist could assist the City in either obtaining a delay; exemption or special legislation if redevelopment agencies are disestablished? FISCAL IMPACT: The Governor's proposed state budget for FY 2011-12 could impact the City in three areas if redevelopment agencies are disestablished: 1. Approximately $900,000 in redevelopment revenue for operating expenses would no longer be available in FY 2011-12. 2. Funding of$4,195,000 for eight projects in the CRA Implementation Plan for 2010-2014 may no longer be available. 3. Funding of up to $20,000,000 for infrastructure projects would no longer be possible. If the proposed state-local realignment, including disestablishing redevelopment agencies, does not occur then the dollar-for-dollar backfill funding for state funded local law enforcement programs could be at risk. For the City, this could impact the following law enforcement funds: 1. Citizens' Option for Public Safety Program grand funding of $100,000 annually may nod longer be available. 2. Jail Booking Fee Subventions of up to $36,000 annually may no longer be available. j Respectfully submitted, Betsy A Adanfs City Manager ATTACHMENTS: None. PENDING CRA APPROVAL CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING -JANUARY 11, 2011 A regular meeting of the Community Redevelopment Agency, City of Grand Terrace, was held in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California, on January 11, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Chairman Lee Ann Garcia, Vice-Chairman Darcy McNaboe, Agency Member Bernardo Sandoval, Agency Member Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernie Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Sgt. Carlos Espinoza, San Bernardino County Sheriff s Department Rick McClintock, San Bernardino County Fire Department ABSENT: None CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 6:00 P.M. APPROVAL OF 12-14-2010 MINUTES CRA-2011-01 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER MCNABOE, CARRIED 4-0, to approve the December 14, 2010 Community Redevelopment Agency Minutes. Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 6:05 p.m., until the next CRA/City Council Meeting that is scheduled to be held on Tuesday,January 25,2011 at 6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace CRA AGENDA ITEM NO. i . Lju ' tea CALIFORUI1 AGENDA REPORT i MEETING DATE: January 25, 2011 Council Item( CRA Item(X) TITLE: ANNUAL REPORT TO THE LEGISLATIVE BODY PRESENTED BY: Bernie Simon, Finance Director Joyce Powers, Community and Economic Development Director RECOMMENDATION: Accept and File the Final 2009-10 Annual Reports for the Community Redevelopment Agency BACKGROUND: California Health and Safety Code Section 33080.1 requires that each redevelopment agency within the State of California present an annual report to its legislative body within six months of .the end of the agency's fiscal year. As required by Section 33080.1, the independent financial audit, the fiscal statement for 2009-10, the Housing and Community;Development ("HCD") Report, and the State Controller's Report was drafted and submitted for approval to the Agency Board on December 14, 2010. Draft information was submitted to the Board due to the timing and lack of a second Agency meeting in December. The final reports are now presented for your review and formal approval. DISCUSSION: The annual report for fiscal year 2009-10 consists of financial and project information as summarized below: Housing and Displacement Activities Section 33080.1(c) requires a description of certain affordable housing and redevelopment activities in the 200940 fiscal year. Accordingly, the following has been identified: Displacement: There were no non-elderly or elderly households that were displaced or moved from their dwelling units as part of a redevelopment project of the Agency during the 2009-10 fiscal year. Blue Mountain Senior Housing Project: The Agency worked with developer.to construct a 120 unit senior citizen rental project located at the former Webster House at 22645 Grand Terrace Road. In addition to the affordable units, the project features a senior citizens center. Of CRA AGENDA ITEM NO. ') the 120 units, 108 will be restricted for very.low and low income seniors; the remaining 12 units will be restricted for moderate income seniors. The Agency's LMIIHF paid an estimated $9.3 million of the projected $20 million total cost of the project. Project was completed and final. .Agency funding and retention in the amount of$469,357 was paid in the current fiscal year. Affordable Housing_Programs: Although there is currently no new activity, the agency is administering a portfolio of low and moderate income loans: • Low and Moderate Home ,Improvement Loan Program — six (6) outstanding loans of which none are over $36,000; outstanding balance $90,630; no new loans since year 2000. • Low and Moderate 2nd Mortgage Program—ten(10) outstanding loans of which four are over$50,000; outstanding balance $688,600; no new loans since year 2005. o Loans over$50,000: 2 22208 Carhart 12/20/2002 69,000 2 12548 Mirado 07/22/2003 62,000 ■ 22278 Van Buren 10/27/2004 ■ 190,000 9 11891 Preston 06/23/2005 155,000 Offsite Improvements for Affordable Housing: There were no dwelling units designated as very low, low and moderate .income households. that directly benefited from LMIHF expenditures for offsite improvements which resulted in the elimination of health and safety hazards. Maintenance and Repair for Affordable Housing:._.No activities were conducted during this Fiscal Year 2009-10. Alleviation of Blight Section 33080.1(c) also requires a description of the Agency's progress in alleviating blight in the 2009-10 fiscal year, including specific actions and expenditures. The Senior Housing and Senior Center project assisted in the alleviation of blight, as did the following projects and programs. Proppa Muisition and land improvements for projects: Property acquisition for both the freeway-oriented acre project (Grand Crossings) and the Town Square commercial project have been completed in partnership with private development partners. In addition, the Agency is pursuing additional opportunities while sales prices are low to assemble property for projects at other locations that will provide new jobs for residents. ■ Purchase of a .4 acre parcel on the north side of Barton Road contiguous to a parcel purchased in fiscal year 2008-09. ■ Demolition of old Circle K building at Agency owned property, 22747 Barton Road. a Demolition of an unsafe building at Agency owned property on Vista Grande Way. ■ Demolition of an unsafe building on Michigan Street. OA N1-1 1 A0V740A ASS ,1 Other public benefit projects: ■ Community Message Signs- $66,210 ; ■ Grand Terrace Road infrastructure rehab and landscaping design-$24,040 ■ Senior Center Kitchen project design- $10,068 ■ Baseball field replacement project design- $44,326 High School and public infrastructure improvements: Through a partnership with the Colton - Joint Unified School District, property was assembled and sold to the District for the new high school and businesses were relocated. The Agency has assisted the District with relocation of a, 48-inch water line and will contribute funds toward completion of a storm drain at the site. Commercial Exterior Improvement Program: The Agency is working with property owners to provide' financial assistance to improve building facades and properties. $52,356 was expended in the current fiscal year. Neighborhood Improvement Grant Pro rg_am: The Agency is providing limited financial, assistance to improve the exterior of older homes in the City. $31,295 was budgeted in the i current fiscal year. The maximum grant amount is $1,000 for residents of low to moderate ' income, and the funds may be used to purchase materials. for exterior upgrades to residential', property, such as paint and landscaping materials. Code Enforcement Program: The Agency has continued its support of the Code Enforcement Program to ensure the preservation of both residential and commercial neighborhoods and ' eliminate substandard housing. In addition to complaint response, during 2006, a residential inspection program was established for rental housing. Any substandard housing and property maintenance violations observed are required to be corrected. Pro-active enforcement has been expanded over this fiscal year. General Fund Transactions: The Agency shares personnel and expenses with the City's General Fund. The Agency approved an administrative agreement with the City in FY 2009-10. The Agency has also previously advanced the General Fund $4.6 million for various purposes as outlined in the audited Annual Financial Report. I, Agency Owned Property: , Finally, Section 33080.1(f) requires a description of the total number of and nature of properties that the Agency owns and those properties the.Agency acquired during the 2009-10 fiscal year. I I The Agency currently owns approximately 40 acres consisting of fifteen(15)parcels: Parcel No Site Address Acquired Acres 1167-141-08 W.Commerce Dr. 10/25/2005 0.94 1167-151-61 None 11/22/2000 9.21 1167-151-68 None 11/22/2000 7.45 1167-151-62 None 11/22/2000 8.92 1167-151-71 None n a 4.97 1167-15143 None n a 0.47 1167-161-03 21992 De Berry St. 8 19 2005 2.80 1167-231-01 22293 Barton Rd. 5 23 2001 1.38 1167-161-04 21974 DeBerry St. 7 21 2005 0.25 0275-251-04 11695 Canal St. 05 12 09 0.66 0276-462-10 22720 Vista Grande 06 09 09 0.25 0275-242-10 22100 Barton Road 08 1 09 0.87 0275-242-11 22100 Barton Road 01 27 09 0.44 0276-202-54 22747 Barton Road 01 13 09 0.34 1167-311-01 22317 Barton Road 01 31 02 1.36 Reports filed with the State On file with the Finance Director are the independent financial audit and the fiscal statement for the fiscal year 2009-10, HCD Report, and the State Controller's Report of RDA Transactions. The final reports were submitted to the State Controller's Office on December 23, 2010. Other Information The Agency audit and Annual Financial Report was completed by the San Bernardino CPA firm of Rogers, Anderson, Malody& Scott, LLP. The HCD Report and Report of RDA Transactions were prepared by the RDA consulting firm of Rosenow, Spevacek Group, Inc. FISCAL IMPACT: There is no fiscal impact associated with the preparation of this report. .Respectfully submitted,. Bernie Simon, Finance Director Respectfully submitted, 2&�e x L P-e;I-e' Joyce P6 wers, Community and Economic Development Director Manager Approval: Betsy M Adams City Manager ATTACHMENTS: FY 2009-10 Audited Financial Statements FY 2009-10 Annual Report of Financial Transactions FY 2009-10 HCD Report t G CRA of Grand Terrace Fiscal Year End June 309 2010 Audited Financial Statements F COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA ANNUAL FINANCIAL AND COMPLIANCE REPORT June 30, 2010 II, f 7 Community Redevelopment Agency of the City of Grand Terrace Table of Contents PAGE Independent Auditor's Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 11 Statement of Activities 12 Fund Financial Statements Balance Sheet-Governmental Funds 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 14 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16 Notes to Financial Statements 17 Required Supplementary. Information Budgetary Comparison Schedule Major Special Revenue Fund 31 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 32 Findings and Recommendations 34 i FAME" PNIL E H. L. LLERODLE:C.P.A. ORENOA L.ODLE,C.P.A. TERRY P.SHEA,C.P.A KIRK A.FRANKS,C.P A MATTHEW S.WILSON:C.P A ROGERS, ANDERSON, MALODY & Scum LLP SCOTT W MANNO,C P A. LEENA SHANBHAG.CPA CERTIFIED PURL/C ACCOUNTANTS NANCY O'RAFFERTY,C.P A ROBERT B MEMORY,C.P.A (1945.2009) _ BRADFERD A.WELEBIR,C.P A. JENNY'LIU.C.P A KATIE L.MILLSOM,C.P.A. JONATHAN R.KUHN.C.P.A OF COUNSEL PAPA MATAR THIAW,C.P.A. JAY H lF.:RCNER,C P A. MAYA S.IVANOVA.C.P.A. CHRISTOPHER MONTOYA,C P.A. Governing Board DANIELLE E.ODGERS,C.P A. Community Redevelopment Agency of the City of Grand.Terrace Grand Terrace, California INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities and each major fund of the Community Redevelopment Agency of the City of Grand Terrace, California (the', "Agency"), a component unit of the City of Grand Terrace, 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 component unit financial statements are the responsibility'of the Agency's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we', plan and perform the audit to obtain reasonable assurance about whether the financial statements - are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the, overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. 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 Community Redevelopment Agency of the City of Grand Terrace, California, as of June 30, 2010, and thee respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government AuditingStandards we have also issued ued our report dated December 1, 2010, on our consideration of the Community Redevelopment Agency of the City of Grand Terrace, California'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. tAF.%IBERS AMERICAN INSTITUTE OF -ERA IFIEO PUBLIC ACCOUNTANTS P CIP S TI IC AIGPA ALLIANCE FOR CPA FIR ASS VANIR TOWER • 290 NORTH"D"STREET • SUITE 300 SAN BERNARDINO, CA 92407 CALIFORNIA SOCIETY OF (909)889-0871 • (909)824-6736 • FAX(909)889-5361 CERTIFIED PUBLIC ACCOUNTANTS Websife:www.ramscpa.nef I a Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provides any assurance. December 1, 2010 -2- 1' Management's Discussion and Analysis . Our discussion and analysis of the Community Redevelopment Agency of the City of Grand Terrace; (the "Agency") financial performance for the fiscal year ended June 30, 2010 provides an overview of .year ending results based on the government-wide statements, an analysis on the Agency's-overall financial position, and results of operations to assist users in evaluating the Agency's financial .position. In addition, it shows the result of the activities during the year for long term debt. Please read', it in conjunction with the Agency's financial statements. - FINANCIAL HIGHLIGHT$ The Agency recorded $6,915,622 of expenditures on programs and projects in the government—wide, statements ($11,065,467 on the fund statements) including: Administration and economic development costs — Personnel, legal, consulting, redevelopment plan amendment costs, general development and economic expenditures - $750,500. In addition, $600,000 was paid to the City of Grand Terrace in a contractual residual receipts agreement' guarantee with the Agency. The Agency paid $300,000 for the current fiscal year 2009-10 and a, second $300,000 payment for a previous period residual receipts agreement guarantee which was incurred but not paid until FY 2009-10. High School and public infrastructure improvements — Through a partnership with the Colton', Unified School District, property was assembled and sold to the District for the new high school and'' businesses were relocated. The Agency has assisted the District with relocation of a 48-inch water' line and will contribute funds toward completion of a storm drain at the site. Senior Center and Senior Housing—The project includes a new 7,000 square foot senior center(up� from the existing 4,500 square feet) and 120 one- and two-bedroom units for seniors. One-hundred and eight (108) units are restricted for household incomes at or below 60% of the area median income: adjusted for family size. The project was completed and final Agency funding and retention in the amount of$469,357 was paid in the current fiscal year. Affordable Housing Programs — Although there is currently no new activity, the agency isl administering a portfolio of low and moderate income loans: - Low and Moderate Home Improvement Loan Program -outstanding value $90,63,0 - Low and Moderate 2"d Mortgage Program -outstanding value $688,600. Property acquisition and land improvements for projects — Property acquisition for both the'' freeway-oriented, 120-acre project (former Outdoor Adventure site) and the Town Square commercial; project have been completed in partnership with private development partners. In addition, the',, Agency is pursuing additional opportunities while sales prices are low to assemble property for; projects at other locations that will provide new jobs for residents. The Agency currently ownsli approximately 39 acres for commercial development and public uses. Purchase of .87 acre lot on Barton Road for future projects- $200,926 j - Demolition of old Circle K building at Agency owned property 22747 Barton Road Demolition of an unsafe building at Agency owned property on Vista Grande Ave. Other projects—expenditures in the current fiscal year include: > Community Message Board - $66,210 Grand Terrace Road infrastructure rehab - $24,040 > Senior Center Kitchen project- $10,068 > Baseball field replacement project-$44,326 -3- �I A 4 Economic Development and Redevelopment Website—To offer better access to information about the City's and Redevelopment Agency's programs and projects, staff is in the process of upgrading the City's website. This effort includes providing links to outside agency programs that are available, such as small business loans and marketing plan assistance. Code Enforcement Program = The Agency has continued its support of the Code Enforcement Program to ensure the preservation of both residential and commercial neighborhoods and eliminate substandard housing. In addition to complaint response, during 2006, a residential inspection program was established for rental housing. Any substandard housing and property maintenance violations observed are required to be corrected. Commercial Exterior Improvement Program — The Agency is working with property owners to provide financial assistance to improve building facades and.properties. $52,356 was expended in the current fiscal year. Neighborhood Improvement Grant Program — The Agency is providing limited financial assistance to improve the exterior of older homes in the City. $31,295 was expended in the current fiscal year. The maximum grant amount is $1,000 for qualified residents, and the funds may be used to purchase materials for exterior upgrades to residential property, such as paint and landscaping materials. Landscape Beautification Projects — The Agency is assisting landscaping project public improvements along certain parts of Grand Terrace Road. Debt Service Long Term Debt—the Agency made lease payments to Zions Bank in the amount of$173,647 under an underlying debt assumption related to the refinancing of the 1997 Certificates of Participation and made payments of $1,825,150 for debt obligations of the 2004 CRA Tax Allocation Bonds. The fund statements recorded the net payoff of the 1997 Certificates of Participation as a principal payment of debt and recorded the issuance of the Zions lease as other financing source. Principal payments of long term debt are not shown in the government-wide statements. Pass-through payments — the Agency made contractual.and statutory payments to overlapping taxing agencies in the current fiscal year in the amount of $2,082,561. The total includes a statutory pass-through payment to the City of Grand.Terrace in the amount of$131,106. SERAF and ERAF — in accordance with ABx4-26, the Agency remitted $2,179,087 to the County Auditor-Controller for its share 'of mandated Supplemental Educational Revenue Augmentation Fund .(SERAF) in May 2010. The Agency was also responsible for $110,362 in statutory Educational Revenue Augmentation Fund (ERAF) liability at June 30, 2010. Redevelopment Plan Amendment' The Agency Board adopted CRA Resolution 2010-01, Amended and Revised Redevelopment Plan on January 12, 2010 and the City Council adopted Ordinance 250 on May 11, 2010, adopting Amendment No. 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Area. Such amendment will: ➢ Extend the time limit for payment of indebtedness and receipt of taxes to September 27, 2032 in the original project area and July 15, 2034 in the revised project area. > Increase the tax increment revenue limit from $70 million to $225 million. > Increase the amount of outstanding bonded debt from $15 million to $75 million. -4- Other Assessed values in the project area decreased 6.1% over the prior year. i On'the economic financial resources (government-wide) basis, the Agency's total net assets were in' surplus position of $12,630,157 and on the current resources (fund financial statements) basis the Agency's fund balances were in a surplus position of $19,784,215 at the end of the year. The lower net assets position on the government wide basis derives from the fact that the Agency produces no capital assets yet reduces net assets for current and future indebtedness under existing bond agreements and capital leases. The non-current portion of these liabilities is not shown under the fund financial statements. On the economic financial.resources (government-wide) basis, the Agency reported a change in net assets of $1,158,700 and on the current resources (fund financial statements) basis reported a change in fund balance of $(829,1,45) for the year. This difference is due primarily to principal payments on debt being higher than the proceeds from issuance of new debt. It is important to note that payments to retire bond principal reduce liabilities and therefore increase net.assets on the government-wide basis, whereas payments to retire bond principal are considered expenditures and decrease fund balances under the fund financial statements. USING THIS ANNUAL REPORT This annual report consists of three parts — management's discussion and analysis (this portion), the basic financial statements, and required supplementary information. The basic financial statements include the government-wide and fund financial statements. The government-wide financial statements include the statement of net assets and statement of activities. These provide information - about the activities of the Agency as a whole and present a long-term view of the Agency's finances. Fund financial statements explain how these services were financed in the short-term as well as what remains for future spending. The fund financial statements also report the, Agency's operations in more detail than the government-wide statements by providing information about the Agency's most significant funds and other funds. REPORTING THE AGENCY AS A WHOLE Statement of Net Assets and Statement of Activities One of the most important questions asked about the Agency's finances is, "Is the Agency as a whole better off or worse off as a result of the year's activities?" .The statement of net assets and the statement of activities report information about the Agency as'a whole and about its activities in a way to answer this question. These statements include all assets and liabilities of the Agency using the; accrual basis of accounting, which is similar to the accounting used by most private-sector; companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the Agency's net assets and changes in' net assets. Net assets are the difference between assets (resources) and liabilities (obligations); which is one way to measure the Agency's financial health, or financial position. Over time, increases or decreases in the Agency's net assets are an indication of whether its financial health is improving or deteriorating. However, consideration of other non-financial factors, such as changes in the Agency's tax increment to assess the overall health of the Agency, is necessary. -5- l REPORTING THE AGENCY'S MOST SIGNIFICANT FUNDS Fund Financial.Statements . The fund financial statements provide detailed information about the most significant funds. Some funds are required to be established by State law and by bond covenants. However, management established other funds to help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other resources. The Agency only has governmental type funds. Governmental funds - The Agency's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using the modified accrual basis of accounting,,which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Agency's.general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the Agency's programs. The differences of results in the governmental fund financial statements to those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement. The statement of net assets and the statement of activities present information about the following: Governmental activities — All of the Agency's basic services are considered to be governmental activities, including salaries and wages, community development, and public works. Tax increment and investment income.finance most of these activities. -6- 1L 1 i I FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS The government-wide statements provide long-term, and short-term information about the Agency's overall financial condition. The analysis addresses the financial statements of the Agency as a whole.i, TABLE 1 Net Assets Governmental Activities 2010 2009 Current and restricted assets $ 17,395,307 $ 18,267,675 Land held for resale 4,087,317 3,886,391 Total assets 21,482,624 22,154,066 Long-term liabilities outstanding 5,414,532 7,452,506 Other liabilities 3,437,935 3,230,103 Total-liabilities 8,852,467 10,682,609 Restricted 19,688,778 20,486,472 Unrestricted (7,058,621) (9,015,015) Total net assets $ 12,630,157 $ 11,471,457 t i y TABLE 2 Changes in Net Assets Governmental Activities 2010 2009 GENERAL REVENUES: Property tax increment $ 7,894,018 $ 8,942,753 Investment earnings 129,314 231,858 Miscellaneous - 35,700 Intergovernmental 50,990 - Total revenues 8,074,322 9,210,311 PROGRAM EXPENSES: Community development 3,820,070 1,939,409 Pass-through payments 2,082,561 2,341,265 II Project improvement costs 671,590 9,925,158 Interest on long-term debt 341,401 468,331 Total expenses 6,915,622 14,674,163 Change in net assets $ 1,158,700 $ (5,463,852) j� -7- Revenues—Statement of Activities The total revenue from governmental activities was $8,074,322. Redevelopment tax increment comprised $7,894,018 or 97.8 percent of the total revenue of the Agency. Twenty percent of gross increment is restricted to low and moderate income housing programs. After pass-through to other agencies, the Agency realized net increment of$5,811,457, a decrease of 13.12% over last year. Expenses—Statement of Activities Overall expenses of the Agency totaled $6,915,622. Expenses specific to other community development activity, including planning, code enforcement and housing activities, totaled $3,820,070 or 55.2 percent of total expenses. Pass-through agreements consist of tax increment that is deducted from our gross increment and distributed to other agencies by the County of San Bernardino. The agency is required to report tax increment at the gross amount so that the calculations for the 20 percent set aside restricted for low and moderate income housing activities is distinguishable. This pass-through amounted to $2,082,561 or 30.1 percent of total expenses. Project Improvement costs amounted to $671,590, or 9.7 percent of the total. Making up the remainder of expenses were interest on debt service ($341,401 or 4.9 percent). Net Assets—Statement of Activities The Agency's net assets increased $1,158,700 during the year as a result of lower spending on project improvement costs. This change is reflected in the statement of activities. FINANCIAL ANALYSIS OF THE FUND STATEMENTS The Agency uses fund accounting to assure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on the individual parts of the Agency's government, reporting the Agency's operations in more detail than the government-wide financial statements. The Agency's governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The Agency's governmental funds reported combined fund balances at June 30, 2010 of$19,784,215, a decrease of more than 4% from last fiscal year. TABLE 3 Fund Financial Statements— Fund Balances Governmental Activities 2010 2009 Reserved for: Encumbrances $ 149,172 $ 147,574 Debt service 1,300,000 1,300,546 Long-term advances receivable 4,606,950 4,606,950 Long-term notes receivable 688,600 713,000 Land held for resale 4,087,317 3,886,391 Total reserved fund balance 10,832,039 10,654,461 Unreserved, reported in: Special revenue fund 1,221,107 1,517,653 Debt service fund 8,247,631 8,298,948 Capital projects fund (516,562) 142,298 Total unreserved fund balances 8,952,176 9,958,899 Total fund balances $ 19,784,215 $ 20,613,360 -8- Fund Balance Analysis by Fund The Special`"Revenue Fund revenues were $1,609,201 and expenditures and financing uses were, $1,930,555. Fund balance decreased by $321,354 to $2,850,078. The decrease-primarily related to various transfers to other funds. The Debt Service Fund revenues and financing sources were $8,991,106, and expenditures were, $9,043,377. Fund balance decreased by$52,271 to$13,854,376. The Capital Projects Fund revenues and financing sources were 400,993 and expenditures and financing uses were$856,513. Fund balance decreased by $455,520 to $3,079,761. Major Special Revenue Fund Budgetary Highlights Over the course of the year, the Agency revised the Agency budget with adjustments that fall into the following two categories: - Changes made in the mid-year review to current year expenditure appropriations, adjust appropriations for prior year department carryover, and establish or increase designations of fund balance. - Other expenditure appropriations approved after the original budget is adopted, and before or after midyear report is approved. Actual revenues in the Housing Fund were $29,602 above revised estimates. This is primarily due to increase in tax increment. Actual tax increment exceeded the estimate by $132,978, while investment earnings were $103,376 under final projections. Program expenditures were under final budget by $35,058, resulting in a budgeted surplus of $64,660 and an actual decrease to fund balance of $321,354. DEBT ADMINISTRATION At year-end, the Agency's governmental activities had $7,241,894 in outstanding bonds, loans and. notes. TABLE 4 Outstanding Debt,at Year-End �I Governmental Activities 2010 2009 I; Refunding tax allocation bonds $ 5,320,000 $ 6,930,000 Certificates of participation - 2,520,000 Premium on bonds 47,800 71,699 Deferred charges (212,795) (319,193) Lease agreement 2,086,889 - Total outstanding debt $ 7,241,894 $ 9,202,506 I -9- ECONOMIC FACTORS Although delayed by legal challenges and the general economic recession, the Agency is progressing with projects in 2009-10. Work is continuing on the Town Center Project and Freeway Project. The general economy of the Inland Empire region and especially the housing industry continued to decline and the foreclosures are still high. San Bernardino County's median new home price was down 1.7% in the second quarter of 2010 compared to the previous year. New home sales fell 14.5% countywide, while existing home sales fell 11.6%. The Inland Empire regional unemployment rate was at 14.4% in June, 2010. The general economy for Grand Terrace approximates the regional statistics with some exceptions. Taxable sales at June 30, 2010 decreased 10.1% compared to the previous'year while taxable sales increased countywide by 4.96%. Assessed property values for 2009-10 decreased 5.13% overall in the City and decreased 6.13% in the project area. Sales value of single family residences sold from January 1,.2010 to August 31, 2010 actually increased 15.1% compared to 11.9% countywide. Thirty properties in the City, as of September 2010, are secured lender owned listings. The continuing State of California budget crisis continues to have a potential effect on all cities, special districts and redevelopment agencies. The State of California passed the FY 2009-10 budget, that includes ABx4-26,, which will raid $2.05 billion from redevelopment funds this year. A lawsuit was filed by the Community Redevelopment Association (CRA) challenging the constitutionality of ABx4- 26 as part of the state budget. This is the second straight year that the Community Redevelopment Agency has participated in lawsuits against the state for ERAF transfers from agencies. Last year's challenge was successful and an appeal was not pursued by the state. However, the Sacramento County Superior Court upheld ABx4-26. The City of Grand Terrace Community Redevelopment Agency share of ABx4-26 is $2,179,087 in FY 2009-10 and $448,211 in FY 2010-11. The Community Redevelopment Association is appealing the decision in the Third Appellate District and contends that State seizure of redevelopment funds to balance the State's budget violates Article XVI, Section 16 of the Constitution on multiple counts. For one, the Constitution requires-that redevelopment funds can be used only to finance specified redevelopment activities. Second, taking of redevelopment funds could unconstitutionally impair contracts, particularly covenants pledging future tax revenues to repay bonds. State voters passed ballot initiative Proposition 22 - Prohibit State from Taking Some Local Funds during the November 2nd statewide election. This new initiative should eliminate the type of state appropriation of redevelopment agency funds, as was done with ABx4-26, in future years. Notwithstanding the current economic conditions, the community of Grand Terrace is stable and well maintained. The community was proud to be recognized by Money Magazine as No. 92 out of 100 in their annual "Best Places to Live" article in 2007. CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Agency's finances and to show the Agency's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Department, at the City of Grand Terrace, 22795 Barton Road, Grand Terrace, California, 92313, or call 909-824-6621. -10- TB Community Redevelopment Agency of the City of Grand Terrace Statement of Net Assets June 30, 2010 ASSETS Cash and investments $ 10,514,562 Cash and investments with fiscal agent 1,300,000 Interest receivable 10,878 Accrued revenue 414 Due from City of Grand Terrace 4,606,950 Loans receivable 90,630 Notes receivable 688,600 Property held for resale 4,087,317 Deferred charges 183,273 Total assets 21,482,624 LIABILITIES Accounts payable and other current liabilities 66,769 Accrued interest payable 95,437 Due to other governments 1,090,115 Due to City of Grand Terrace 267,622 Deferred revenue 90,630 Non-current liabilities: Due within one year 1,827,362 Due in more-than one year 5,414,532 Total liabilities 8,852,467 NET ASSETS Restricted for: Community development 2,850,078 Capital projects 3,079,761 Debt service 13,758,939 Unrestricted (deficit) (7,058,621) Total net assets $ 12,630,157 The accompanying notes are an integral part of these financial statements. -11- 2! i i Community Redevelopment Agency of the City of Grand Terrace Statement of Activities For the Year Ended June 30, 2010 PROGRAM EXPENSES Governmental activities: Community development $ 3,820,070 Pass-through payments 2,082,561 Project improvement costs 671,590 Interest on long-term debt 341,401 Total program expenses 6,915,622 GENERAL REVENUES Taxes: Incremental property taxes 7,894,018 Investment earnings 129,314 Intergovernmental 50,990 Total general revenues 8,074,322 Change in net assets 1,158,700 Net assets, beginning of year 11,471,457 Net assets, end of year $ 12,630,157 The accompanying notes are an integral part of these financial statements. -12- Community Redevelopment Agency of the City of Grand Terrace Balance Sheet Governmental Funds June 30, 2010 Total Special Debt Capital Governmental Revenue Service Projects Funds ASSETS Cash and investments $ 1,309,418 $ 9,205,144 $ - $ 10,514,562 Y Cash and investments with fiscal agent - 1,300,000 - 11-300,000 Interest receivable 925 9,940 13 10,878 Accrued revenue 414 - - 414 Due from other funds - 37,798 - 37,798 Due from City of Grand Terrace 300,205 4,306,745 - 4,606,950 Loans receivable 90,630 - - 90,630 Notes receivable 688,600 - 688,600 Property held for resale 640,166 - 3,447,151 4,087,317 Total assets $ 3,030,358 $ 14,859,627 $ 3,447,164 $ 21,337,149 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 2,611 $ - $ 58,730 $ 61,341 Accrued liabilities 2,175 - 3,253 5,428 Due to other funds - - 37,798 37,798 Due to other governments 84,864 1,005,251 - 1,090,115 Due to City of Grand Terrace - - 267,622 267,622 Deferred revenue 90,630 - - 90,630 Total liabilities 180,280 1,005,251 367,403 1,552,934 Fund Balances: Reserved for: Encumbrances - - 149,172 149,172 Debt service - 1,300,000 - 1,300,000 Long-term advances receivable 300,205 4,306,745 - 4,606,950 Long-term notes receivable 688,600 - - 688,600 Property held for resale 640,166 - 3,447,151 4,087,317 Unreserved, reported in: Special revenue fund 1,221,107 - - 1,221,107 Debt service fund - 8,247,631 - 8,247,631 Capital projects fund - - (516,562) (516,562) Total fund balances 2,850,078 13,854,376 3,079,761 19,784,215 Total liabilities and fund balances $ 3,030,358 $ 14,859,627 $ 3,447,164 $ 21,337,149 The accompanying notes are an integral part of these financial statements. -13- Community Redevelopment Agency of the City of Grand Terrace Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2010 Total fund balances of governmental funds $ 19,784,215 Amounts reported for governmental activities in the statement of net assets are different because: Long-term liabilities applicable to-the Agency's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities--both current and long-term--are reported in the statement of net assets. Balances at June 30, 2010 are: Bonds payable (5,320,000) Less: deferred charge on refunding 212,795 Less: costs of issuance 183,273 Plus: premium received on issuance (47,800) Capital lease (2,086,889) Accrued interest payable (95,437) Net assets of governmental activities $ 12,630,157 The accompanying notes are an integral part of these financial statements. -14- Community Redevelopment Agency of the City of Grand Terrace Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For.the Year Ended June 30, 2010 I Total Special Debt Capital. Governmental Revenue Service Projects Funds . REVENUES - Tax increment $ 1,579,178 $ 6,314,840 $ - $ 7,894,018 Use of money and property 30,023 48,298 "50,993 129,314 Total revenues 1,609,201 6,363,138 50,993 8,023,332 EXPENDITURES Current: Economic development 865,489 - 485,011 1,350,500 Supplemental ERAF shift - 2,179,087 - 2,179,087 Pass-through'payments - 2,082,561 - 2,082,561 Debt Service: - Principal - 4,205,111 - 4,205,111 Interest and other charges - 576,618 - 576,618 Capital outlay: Project improvement costs 333,868 - 337,722 671,590 Total expenditures 1,199,357 9,043,377 822,733 11,065,467 Excess of revenues over (under)expenditures 409,844 (2,680,239) (771,740) (3,042,135) OTHER FINANCING SOURCES (USES) Issuance of debt - 2,162,000 - 2,162,000 Transfers in (out) (608,688) 258,688 350,000 - Transfers from (to)the City of Grand Terrace (122,510) 207,280 (33,780j 50,990 Total other financing sources(uses) (731,198) 2;627,968 316,220 2,212,990 Net change in fund balances (321,354) (52,271) (455,520) (829,145) Fund balances, beginning of year 3,171,432 13,906,647 3,535,281 20,613,360 I� Fund balances, end of year $ 2,850,078 $ 13,854,376 $ 3,079,761 $ 19,784,21,5 The accompanying notes are an integral part of these financial statements. -15- i; �S Community Redevelopment Agency of the City of Grand Terrace Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2010 Net change in fund balances of governmental funds Amounts reported for governmental activities in the statement of activities are different because: The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has an effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Issuance of debt (2,162,000) Cost of issuance of debt 62,628 Principal payments on debt 4,205,111 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Amortization of deferred charge on refunding (106,398) Amortization of costs of issuance (66,846) Amortization of premium 23,899 Change in accrued interest expense 31,451 Change in net assets of governmental activities $ 1,158,700 The accompanying notes are an integral part of these financial statements. -16- 26 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Summary of Significant Accounting Policies The accounting policies of the Community Redevelopment Agency of.the City of Grand Terrace (the "Agency") conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the primary - standard setting body for governmental accounting and financial reporting principles. The following is a summary of the significant accounting policies. Description of the reporting entity The Agency is a component unit of a reporting entity which consists of the following oversight and component units: Reporting Entity: Oversight Unit: City of Grand Terrace Component Units: Community Redevelopment Agency of the City of Grand Terrace City of Grand Terrace Public Financing Authority The component unit financial statements contain information relative only to the Agency as a component unit which is an integral part of the total reporting entity. They do not contain financial data relating to the other reporting unit. The Agency was formed under Section 33000 et. Seq. of the Health and Safety Code. Its purpose is to prepare and carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Grand Terrace. The City provides management assistance to the Agency and the members of the City Council also act as the governing body of the Agency. As of June 30, 2010,the Grand Terrace Project Area was the only project area formed by the Agency. Government-wide and fund financial statements The government-wide financial statements include a statement of net assets and the statement of changes in net assets which report information on all of the nonfiduciary activities of the Agency. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. -17- 2 i Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 li Note 1: Summary of Significant Accounting Policies (continued) I The statement of activities demonstrates the degree to which the direct and indirect 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. Major individual governmental funds are reported as separate columns in the fund financial statements. 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 the 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 isl 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 are considered to be susceptible to accrual and have been recognized as revenues in the current fiscal period. All other revenue items are considered to be measurable and available only, when cash is received by the government. The Agency reports the following major governmental funds: The Special Revenue Fund is used to account for the portion of the Agency's tax increment that i is required to be set aside for low and moderate income housing and related expenditures. j The Debt Service Fund is used to account for the accumulation of resources to be used for the repayment of Agency debt. I' . li The Capital Projects Fund is used to account for the financial resources used in developing the project area as well as the administrative expenditures incurred in sustaining Agency activities. -18- j Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 1: Summary of Significant Accounting Policies (continued) Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. When both restricted and unrestricted resources are available for use, it is the government's policy to r , use restricted resources first, and then unrestricted resources as they are needed. Cash and investments The City of Grand Terrace maintains and controls cash and investment pools in which the City and Agency share. The government's cash and cash equivalents are cash or investments with original maturities of three months or less from the date of acquisition. Investments are reported at fair value which is determined using selected bases. Cash deposits are reported at carrying amount which reasonably estimates fair value. 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." Currently, the Agency does not have any business-type activities. 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. Property taxes The County of San Bernardino collects property taxes for the Agency. Tax liens attach annually as of 12:01 A.M. on the first day in March'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, if unpaid, on August 31. Property held for resale The Agency has acquired several parcels of land as part of its primary purpose to develop or redevelop blighted properties. The Agency records these parcels as land held for resale in its financial records. The land is being carried in the Special Revenue Fund and Capital Projects Fund at net realizable value, which is equal to cost. At June 30, 2010, net realizable value for land held for resale totaled $3,447,151 in the Capital Projects Fund and $640,166 in the Special Revenue Fund with these amounts offset by a reservation of fund balance. -19- qr Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 1: Summary of Significant Accounting Policies (continued) Long-term obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities column in the 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. 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. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY 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. Public hearings are conducted prior to its adoption by the Governing Board. Supplemental appropriations, where 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 function level. At fiscal year-end all operating; budget appropriations lapse. Budgets are prepared on the modified accrual basis of accounting. The legal level of budgetary, control is the object level within a department. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services.! These commitments are recorded for budgetary control purposes in the governmental 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. -20- 31 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 III. DETAIL NOTES ON ALL FUNDS Note 2: Cash and Investments Cash and Investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $ 10,514,562 Cash and investments with fiscal agents 1,300,000 Total $ 11,814,562 Cash and Investments as of June 30, 2010 consist of the following: Pooled cash with the City of Grand Terrace $ (65,566) Investments pooled with the City of Grand Terrace 11,880,128 Total $ 11,814,562 Authorized investments The table below identifies the investment types that are authorized for the Agency by the California Government Code (or the Agency's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Agency's investment policy, where more restrictive)that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the Agency, rather than the general provisions of the California Government Code or the Agency's investment policy. Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity of Portfolio One Issuer U. S. Treasury Obligations 5 years None None Repurchase Agreements 1 year None None Certificates of Deposit 5 years None None Negotiable Certificates of Deposit 5 years 30% None Passbook Savings Accounts N/A None None Securities Issued by Federal Agencies 5 years None None Local Agency Investment Fund N/A None None Mutual Funds N/A 20% 10% Pools and other investment structures N/A None None -21- Community Redevelopment Agency-of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 2: Cash and Investments (continued) Investments authorized by debt agreements Investments of debt proceeds held by 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. The table below identifies the investment types that are authorized for investments, held by bond trustee. The table identifies certain provisions of these debt agreements that address. interest rate risk, credit risk and concentration of credit risk. i Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity Allowed One Issuer Government Obligations None None None FHLB's None None None FHLMC's None None None Farm Credit Banks None None None FNMA's None None None Financing Corp Debt Obligations None None None Resolution Funding Corp Debt Obligations None None None Certificates of Deposit 360 days None None Deposits fully insured by FDIC None None None USAID Guaranteed Notes None None None Investment Agreements None None None Bankers Acceptances 360 days None None Municipal Obligations rated Aaa None None None Commercial Paper rated P-1 270 days None None Repurchase Agreements None None None Money Market Mutual Funds rated AAAm N/A None None Disclosures relating to interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of, an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Agency manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and' by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the Agency's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Agency's investments by maturity: -22- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 2: Cash and Investments (continued) 12 Months Investment Type Amount or Less Money Market Mutual Fund $ 193,981 $ 193,981 Certificates of Deposit 609,476 609,476 Local Agency Investment Fund (LAIF) 7,599,620 7,599,620 Local Gov. Invest. Pool (CAMP) 2,177,051 2,177,051 Held by Trustee: Money Market Funds 1,300,000 1,300,000 Total $ 11,880,128 $ 11,880,128 Disclosures relating to credit risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Information about the minimum rating required by the California Government Code, the Agency's investment policy, or debt agreements, and the actual rating as of year-end for each type of investment held by the Agency can be found below. Minimum Investment Type Amount Legal Rating Actual Rating Money Market Mutual Fund $ 193,981 N/A N/A Certificates of Deposit 609,476 N/A N/A Local Agency Investment Fund(LAIF) 7,599,620 N/A N/A Local Gov. Invest. Pool (CAMP) 2,177,051 N/A N/A Held by Trustee: Money Market Funds 1,300,000 AAAm AAA Total $ 11,880,128 Concentration of credit risk The investment policy of the Agency contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U. S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the Agency's investments can be found in the City of Grand Terrace's Annual Financial Report. -23- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 2: Cash and Investments (continued) Custodial credit risk 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 its 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 (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Agency's investment policy do' not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first deed mortgage notes having a value of 150% of the secured public deposits. For amount of deposits held in excess of federal depository insurance limits, see the City of Grand Terrace's Annual Financial Report. Investments in State Investment Pool The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Agency's investment in this pool is reported in the accompanying financial statements at amounts based upon the Agency's pro-rata share of the fair value provided by LAIF for the entire LAW portfolio (in relation to the amortized cost of that portfolio). The balance available foe withdrawal is based on the accounting records maintained by. LAIF, which are recorded on an, amortized cost basis. i Pooled cash The Agency follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the cash balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. I I -24- ?C Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 3: Due from City of Grand Terrace and Due to City of Grand Terrace Nullified Pass-Through Agreement The Agency entered into a settlement agreement with County of San Bernardino on March 6, 1980, which included full pass-through of taxes allocated to City of Grand Terrace. In 1997, the Agency determined that such pass through to the City of Grand Terrace was, at that time, in violation of the Health and Safety Code. The Agency voluntarily took the necessary steps to correct such error by restating all financial statements of the Agency and reclassifying the pass-through expenditures as a receivable from the City. The tax increment revenue on the City's books was reclassified to a payable to the Agency. Borrowings from the Redevelopment Agency Between 1994 and 1999, the City borrowed funds from the Agency as documented through the -budget appropriation process. Other Transactions In 2001, the Agency transferred property to the City and recorded a receivable from the City. In 2003, the City transferred funds to the Agency for property acquisition. The activity on Due from City of Grand Terrace is as follows: Tax Loan to Increment General Interest Payments Balance Date Misallocation Fund Other Posted (Credits) Due 1980- 06/30/97 $ 4,326,428 $ - $ - $ 283,496 $ (2,596,296) $ 2,013,628 06/30/94 - . 650,000 - - - 650,000 06/30/95 - 750,000 - - - 750,000 06/30/97 393,684 - - - 393,684 06/30/98 - 432,822 - - - 432,822 06/30/99 - 225,036 - - - 225,036 06/30/01 - - 141,780 - - 141,780 Total $ 4,326,428 $ 2,451,542 $ 141,780 $ 283,496 $ (2,596,296) $ 4,606,950 -25- '�F Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 i; I' Note 3: Due from City of Grand Terrace and Due to City of Grand Terrace (continued) The activity on Due to City of Grand Terrace is as follows: Payments Balance Date Other (Credits) Due 06/30/03 $ (538,838) $ 271,216 $ (267,622) Total $ (538,838) $ 271,216 $ (267,622) On June 22, 2010, the Agency adopted Resolution 2010-04 and.the City adopted Resolution.2010-15, in which the cumulative interagency borrowings are memorialized and sets forth a repayment plan by the City to the Agency subject to available funds. Note 4: Loans Receivable The Agency has provided deferred rehabilitation loans to qualifying low and moderate income households from its 20 percent set-aside funds. A corresponding deferred revenue is recorded accordingly. The balance at June 30, 2010 is $90,630. Note 5: Property Held for Resale Special Revenue Fund This amount represents the costs associated with the purchase and renovation of low and moderate income housing held for resale. Fund balance has been reserved for this amount. The balance at June 30, 2010 is $640,166. Capital Projects Fund This amount represents the costs .associated with the purchase of vacant land held for future development. Fund balance has been reserved for this amount. The balance at June 30, 2010 is $3,447,151. Note 6: Notes Receivable I The amount of$688,600 in notes receivable is related to sales of low and moderate income housing; The notes are payable on or before the sale or refinance of the subject property, and are secured by second deeds of trust. Due to the noncurrent nature of the above receivables, fund balance has been reserved accordingly. -26- '17 Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 7: Long-term Debt a. 1997 Refunding Certificates of Participation The Agency has accepted the responsibility of making the debt service payments for the 1997 Refunding Certificates of Participation for the past several years. The 1997 issuance was a refunding of the 1991 Lease-Revenue Bonds. The proceeds of the 1991 issuance were used to construct a childcare center, the Pico Park project, and the Grand Terrace parkside improvement project. The 1997 Refunding Certificates of Participation were refunded on September 1,.2009 from the proceeds of a new lease agreement and additional City funds. b. 2004 Refunding Tax Allocation Bonds In August of 2004, the Agency issued the $13,000,000 Refunding Tax Allocation Bonds, Series 2004. The Bonds were issued to refund the $3,695,000 outstanding Tax Allocation Bond Series 1993 A, the $1,290,000 outstanding Zions First National Bank loan, the $2,780,000 outstanding Tax Allocation Bond Series 1993 B, and to finance certain redevelopment activities of the Agency. Interest varies from 2.00% to 3.75% and is payable semiannually on March 1 and September 1, commencing March 1, 2005. Principal payments are due annually commencing March 1, 2005 through September 1, 2012. The Agency deposited $8,241,183 of the proceeds in an irrevocable trust and purchased U.S Government State and Local Government Securities for the purpose of generating resources which will be used to call the bonds. As a result, the refunded bonds are considered to be - defeased and the liability has been removed -from the statement of net assets. The reacquisition price exceeded the net carrying amount of the old debt by $851,183. This amount is being netted against the new debt and amortized over the remaining life of the new debt. This advance refunding was undertaken to reduce total debt service payments over the next 14 years by $464,691 and resulted in an economic gain of$631,303. Debt service payments to maturity for the 2004 Refunding Tax Allocation Bonds are as follows: Year Ending June 30, Principal Interest 2011 $ 1,670,000 $ 161,925 2012 1,720,000 104,625 2013 1,930,000 36,188 Total $ 5,320,000 $ 302,738 -27- 3l Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 7: Long-term Debt (continued) C. Zions Lease On August 28, 2009, the City entered into a Lease Agreement (Lease) with Zions First National Bank in order to refinance the City of Grand Terrace Refunding Certificates of Participation, Issue of 1997, which was issued to finance city hall and other public improvements. The City used the proceeds of the Lease $2,162,000 and funds on hand of $358,000 to current refund the $2,520,000 of outstanding 1997 Certificates of Participation. Under the Lease, the City is to lease property to Zions and in return Zions will lease the property back to the City in consideration of the payment by the City of semiannual lease payments commencing March 1, 2010 through September 1, 2020 at 4.76% interest. Debt service payments to maturity for the 2009 Zions National Bank lease are as follows: Year Ending June 30, Principal Interest 2011 $ 157,362 $ 97,485 2012 164,942 89,906 2013 172,887 81,961 2014 181,213 73,633 2015 189,943 64,906 2016-2020 1,096,080 178,157 2021 124,462 2,962 Total $ 2,086,889 $ 589,010 d. The following is a schedule of changes in long-term debt of the Agency for the fiscal year ended June 30, 2010: Beginning Ending Due Within Balance Additions Deletions Balance One Year Bonds payable: 1997 Refunding Certificates of Participation $ 2,520,000 $ - $(2,520,000) $ - $ - 2004 Refunding Tax Allocation Bonds 6,930,000 - (1,610,000) 5,320,000 1,670,000 Less deferred amounts: On refunding (319,193) - 106,398 (212,795) - Plus premium on issue 71,699 - (23,899) 47,800 - Total bonds payable 9,202,506 - (4,047,501) 5,155,005 1,670,000 Capital leases: Zion National Bank - 2,162,000 (75,111) 2,086,889 157,362 Total capital leases - 2,162,000 (75,111) 2,086,889 157,362 Total long term liabilities $ 9,202,506 $ 2,162,000 $(4,122,612) $ 7,241,894 $ 1,827,362 -28- Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 Note 8: Interfund Transfers Interfund transfers for the year ended June 30, 2010 are as follows: Fund Receiving Transfers Fund Making Transfers Amount Capital Projects Special Revenue $ 350,000 Debt Service Special Revenue 258,688 Total $ 608,688 The transfer from the Debt Service Fund was made to cover the negative cash balance in the Capital Projects Fund. The transfer from the Special Revenue Fund into the Debt Service Fund was made for debt service payments due on the 2004 Tax Allocation Bonds. Note 9: Agreements With Various Taxing Agencies In order to lessen the fiscal impact of the tax increment financing of redevelopment projects on other units of local governments, the Agency has entered into pass-through agreements with various governmental agencies to pass-through portions of tax increment funds received by the Agency, attributable to the area within the territorial limits of the other agencies. The amount passed through for the fiscal year ended June 30, 2010, was $2,082,561. These payments were recorded as expenditures in the Debt Service Fund. In addition, the Agency was required to transfer tax increment in the amount of$110,362 to the State of California's Education Revenue Augmentation Fund (ERAF) for the fiscal year ended June 30, 2010. Note 10: Supplemental Educational Revenue Augmentation Fund On July 24, 2009, the State Legislature passed Assembly Bill (AB)X4-26, which requires redevelopment agencies statewide to deposit a total of $2.05 billion of property tax increment in county "Supplemental" Educational Revenue Augmentation Funds (SERAF) to be distributed to meet the State's Proposition 98 obligations to schools. The SERAF revenue shift of $2.05 billion will be made over two years, $1.7 billion in fiscal year 2009-2010 and $350 million in fiscal year 2010-2011. The SERAF would then be paid to school districts and the county offices of education which have students residing in redevelopment project areas, or residing in affordable housing projects financially assisted by a redevelopment agency, thereby relieving the State of payments to those schools. The City's (Agency's) share of this revenue shift was $2,179,087 for fiscal year 2009-2010 and $448,211 for fiscal year 2010-2011. Payments are to be made by May 10 of each respective fiscal year. In response to ABX4-26, the Agency funded the SERAF payment due in May 2010 with the Debt Service Fund. -29- Ad I Community Redevelopment Agency of the City of Grand Terrace Notes to Financial Statements June 30, 2010 ' I Note 10: Supplemental Educational Revenue Augmentation Fund (continued) The California Redevelopment Association (CRA) is the lead petitioner on a lawsuit to invalidate ABX4-26, similar to last year's successful lawsuit challenging the constitutionality of AB 1389. CRA' filed the lawsuit on October 20, 2009. The lawsuit asserted that the transfer of property tax increment to the SERAF is not permitted under Article XVI, Section 16 of the California Constitution. The -� complaint also asserted impairment of contract and gift of public funds arguments. While the State made adjustments in ABX4-26 to address the constitutional issues raised by the Superior Court over last year's lawsuit challenging AB 1389, the Agency, along with the CRA and other California redevelopment agencies, believe that the SERAF remains unconstitutional. In May 2010, the Superior Court upheld the legality of ABX4-26. In August 2010, the CRA filed an appeal with the Third District Court. Note 11: Joint Venture On July 16, 1991, the Community Redevelopment Agency of the City of Grand Terrace entered into a Joint Powers Agreement with the .City of Grand Terrace to establish the Grand Terrace Public Financing Authority. The Authority was created to facilitate financing for public capital improvements benefiting the City and Agency. No separate financial statement data are presented; the transactionsi of the Authority are recorded in the governmental funds of the City of Grand Terrace. I r � Note 12: Contingencies As of June 30, 2010, in the opinion of the Agency, there are no outstanding matters, which would have a material effect on the financial position of the Agency. The Agency has received funds for specific purposes that are subject to audit by the State. Although such audits could generate differences under the regulations of the Health and Safety Code, it is, believed that any required reimbursements will not be material. i I! I' -30- i A4 Required Supplementary Information Community Redevelopment Agency of the City of Grand Terrace Budgetary Comparison Schedule - Major Special Revenue Fund For the Year Ended June 30, 2010 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Tax increment $ 1,446,200 $ 1,446,200 $ 1,579,178 $ 132,978 Use of money and property 133,399 133,399 30,023 (103,376) Total revenues 1,579,599 1,579,599 1,609,201 29,602 EXPENDITURES Current: Economic development 1,247,907 1,234,415 865,489 368,926 Capital outlay: Project improvement costs - - 333,868 (333,868) Total expenditures 1,247,907 1,234,415 1,199,357 35,058 Excess of revenues over expenditures 331,692 345,184 409,844 64,660 OTHER FINANCING USES Transfers out (613,577) (613,577) (608,688) 4,889 Transfers to the City of Grand Terrace (141,682) (141,682) (122,510) 19,172 Total other financing uses (755,259) (755,259) (731,198) 24,061 Net change in fund balance (423,567) (410,075) (321,354) 88,721 Fund balance, beginning of year 3,171,432 3,171,432 3,171,432 - Fund balance, end of year $ 2,747,865 $ 2,761,357 $ 2,850,078 $ 88,721 i -31- PHILLIP H. E .C P A. BRENDA L.ODLE,C P A. TERRY P SHRY P SHEA,C.P.A. KIRK A.FRANKS,C P A. MATTHEW B.WILSON.C.P.A SCOTROGERS, ANDERSON, MALODY & SCOTT EENA, LLP w NBHND,c P A. LEENA SHANBHAG,C.P.A. CERTIFIED PUSLlC ACCOUNTANTS NANCY O'RAFFERTY.C.P A BRADFERD A.WELEBIR,C.P.A. ROBERT B.MEMORY.C.P.A.(1945.2009) JENNY LIU,C.P A. KATIE L.MILLSOM,C.P.A. JONATHAN R.KUHN,C.P.A. OF COUNSEL PAPA MATAR THIAW,C.P A. -JAY H 7.F.RCHER.C.P.A. MAYA S.IVANOVA,C.P.A. CHRISTOPHER MONTOYA,C.P A. DANIELLE E.ODGERS,C.P A. Governing Board Community Redevelopment Agency of the City of Grand Terrace Grand Terrace, California Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards We have audited the financial statements of the governmental activities and each major fund of the . Community Redevelopment Agency of the City of Grand Terrace (the Agency), a component unit of the City of Grand Terrace, California; as of and for the year ended June 30, 2010,, which collectively comprise the Agency's basic financial statements and have issued our report thereon dated December 1, 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 Agency'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 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 and correct 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 entity's financial statements will not be prevented, or detected and corrected on a timely basis. a'."BERS .4a1LRIC:AN INSTITUTE OF GLRTIPICO PUBLIC ACCOUNTANTS VANIR TOWER • 290 NORTH "D"STREET • SUITE 300 PC PS THE AICPA ALLIANCE FOR CPA FIRMS SAN BERNARDINO, CA 92401 CALIFORNIA SOCIETY OF (909)889-0871 • (909)824-6736 • FAX(909)689-5361 CE=HTIFICO PUBLIC ACCOUNTANTS Nebsite:www.ramsCPA.net -32- AL 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. However, we identified a deficiency in internal control over financial reporting, described in the accompany findings and recommendations as Finding 2010-01, that we consider to be significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, 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 one instance of noncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying findings and recommendations section of the report as finding number 2010-02. We noted certain matters that we reported to management of the City of Grand Terrace, California, in a separate letter dated December 1, 2010. The Agency's responses to the findings identified in our audit are described in the accompanying schedule of findings and recommendations. We did not audit the Agency's responses and, accordingly, we express no opinion,on them. This report is intended solely for the information and use of the Governing Board, management and State Controller's Office and is not intended to be and should not be used by anyone other than these specified parties. December 1, 2010 -33- A P" Community Redevelopment Agency of the City of Grand Terrace Findings and Recommendations June 30, 2010 SIGNIFICANT DEFICIENCY Finding 2010-01 Bank Reconciliations Observation Bank statements in some instances were accumulated for several months before they were reconciled to the appropriate general ledger controls. Not reconciling the accounts on a monthly basis means that errors or other problems might not be recognized and resolved on a timely basis. Also, it is generally easier and less time-consuming to reconcile accounts while transactions are fresh. Recommendation We recommend that all bank accounts be reconciled each month. Management Response Finance Director is only accountant in Finance Department and performs that function in a three person department. Finance had a temporary director for four months and was without the Account Technician for four months. Monthly reconciliations are certainly the best standard however, that function does receive a lower priority during budget, year end and other busy times during the year. However, Staff will reconcile the General and Payroll account on a timelier basis. Staff instituted a new procedure in 2010 to increase efficiency and speed of bank reconciliations by posting daily cash receipts individually to the cash general ledger to mirror with the actual bank deposit versus posting deposits by batch method over a certain block of time. Since the installation of the new Eden accounting system in 2002, Finance has been posting all cash receipts as general journals. This method makes research and reconciliation more time consuming and difficult. Therefore, Staff instituted a new procedure in 2010 to utilize the "Receipt Ledger" of the accounting system rather than posting all cash receipts as general journals. A change in methodology in performing bank reconciliations was also instituted to perform monthly "entire" cash reconciliation rather than the general and payroll accounts only. -34- R G Community Redevelopment Agency of the City of Grand Terrace Findings and Recommendations June 30, 2010 COMPLIANCE FINDINGS Finding 2010-02 Criteria Pursuant to California Health and Safety Code, Section 33080, the Agency must produce and present the following annual reports to its.legislative body and the State Controller's office within six months of the end of the previous fiscal year: a- Independent auditor's report on financial statements b- Independent auditor's report on legal compliance c- Annual Report of Financial Transactions of Community Redevelopment Agencies d- Housing activities report e- Blight progress report f- Loan report (if applicable) g- Property report (if applicable) Condition For the fiscal year ended June 30, 2009, the Agency did not submit to the legislative body the' following reports by the due date of December 31, 2009: e- Blight Progress Report g- Property Report Recommendation Therefore, we recommend that in the future periods the Agency prepare and present all required' annual reports to the legislative body and State Controller's office before December 31, in order to comply with California Health and Safety Code, Section 33000. ,I -35- A-7 Community Redevelopment Agency of the City of Grand Terrace Findings and Recommendations June 30, 2010 COMPLIANCE FINDINGS Finding 2010-02 (continued) Agency Response The draft FY 2008-09 Annual Redevelopment Agency reports were originally agendized for the December 8, 2009 meeting but were continued to February 23, 2010 to obtain further information and clarification of the agency loan with the City. All final required reports were presented to the Agency Board and approved on February 23, 2010. The .CRA Audited Financial Statements, Housing and Community Development Report and Redevelopment Report of Financial Transactions were filed with the State Controller by December 31, 2009. Presenting final annual reports to the Agency Board is difficult because there is generally only the first meeting in December available to do so. This means that all reports must be finalized by the end of November, which is very difficult. However, the Agency will present drafts of all reports to the Board, if final reports are not available, by December 31 of each year. -36- n� CRA of Grand Terrace Fiscal Year End June 30, 2010 Redevelopment Agencies Financial Transactions Report as l I I• I i CALIFORNIA December 23, 2010 California State Controller Division of Accounting and Reporting Local Government Reporting Section Post Office Box 942850 Sacramento, CA 94250 Re: Community Redevelopment Agency of the City of Grand Terrace FY 2009-10 Financial Transactions Report Cover page Audited Financial Report 6-30-2010 (2) Copy of HCD Report Enclosed please find our audited financial statements (2) for the City of Grand Terrace for FY 2009-10 and the cover page for the Community Redevelopment Agency of the City of Grand Terrace. The FTR was submitted online yesterday. Per your instructions, a copy of the HCD report is also submitted as part of this reporting package. If you need additional information, do not hesitate to contact me at (909) 430-2216 or email me at bsimon@cityofgrandterrace.org Sincerely, Bernie Simon Finance Director 22795 Barton Road, Grand Terrace, California 92313 9091824-6621 909/783-2600 fax sn REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Community Redevelopment Agency Of The City Of Grand Terrace Fiscal Year: 2010 ID Number: 13983633700 Submitt d by: Signature Title Name (Please Print) Date Per Health and Safety Code section 33080,this report is due within six months after the end of the fiscal year.The report is to include two(2)copies of the agency's component unit audited.financial statements,and the report on the Status and Use of the Low and Moderate Income Housing Fund(HCD report). To meet the filing requirements,all portions must be received by the California State Controller's Office. To file electronically: To file'a paper report: 1.Complete all forms as necessary. 1.Complete all forms as necessary. 2.Transmit the completed output file using a File 2.Sign this cover page,and mail complete report to either Transfer Protocol(FTP)program or via diskette. address below with 2 audits and the HCD report. 3.Sign this cover page and mail to either address below with 2 audits and the HCD report. Report will not be considered filed until receipt of this signed cover page. Mailing Address: Express Mailing Address: State Controller's Office State Controller's Office Division of Accounting and Reporting Division.of Accounting and Reporting Local Government Reporting Section Local Government Reporting Section P. O. Box 942850 3301 C Street, Suite 700 Sacramento, CA 94250 Sacramento, CA 95816 C� REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Community Redevelopment Agency Of The City Of Grand Terrace Fiscal Year: 2010 ID Number: 13983633700 Submitt Signature Title dN17 SI✓YIO/1� /2)2 z /d Name (Please Print) Date Per Health and Safety Code section 33080,this report is due within six months after the end of the fiscal year.The report is to include two(2)copies of the agency's component unit audited financial statements,and the report on the Status and Use of the Low and Moderate Income Housing Fund(HCD report). To meet the filing requirements,all portions must be received by the California State Controller's Office. To file electronically: To file a paper report: 1.Complete all forms as necessary. 1.Complete all forms as necessary. 2.Transmit the completed output file using a File 2.Sign this cover page,and mail complete report to either Transfer Protocol(FTP)program or via diskette. address below with 2 audits and the HCD report. 3.Sign this cover page and mail to either address below with 2 audits and the HCD report. Report will not be considered filed until receipt of this signed cover page. Mailing Address: Express Mailing Address: State Controller's Office State Controller's Office Division of Accounting and Reporting Division of Accounting and Reporting Local Government Reporting Section Local Government Reporting Section P. O. Box 942850 3301 C Street, Suite 700 Sacramento, CA 94250 Sacramento, CA 95816 S; Community Redevelopment Agency Of The City Of Grand:Terrac ' Redevelopment Agencies Financial Transactions Report. , General Information Fiscal Year 2010 _..................._.._..__......_.__._.. ... — ...._._... ....._....--- --........._. _.._._...._..---------._...-------,--_....__.-_____.__......-----_—__.__._...._..__—_:Agency Officials Mem.. bers of the Goveming Body I Middle Middle Last Name First Name Initial Phone Last Name First Name Initial Chairperson StanckiewitZ Walt Executive Director jAdams Betsy (909)824 6621 Member IGarcia Lee Ann +, 4 �iFlscal Officer Simon Bemie � (909)824-6621 Membar Isandoval Bernardo ([Secretary Masa — �—_ Brenda C (909)824�621 Member IMcNaboe Derry r Report Prepared By Independent Auditor Member If Firm Name Rogers,Anderson,Melody&Scott,LLP Member _.... Last Carlson Muir Member i First lKatherine Member Middle initial Member I street 309 W.4th S 1290 North D Street Member City Isanta Ana San Bernardino Mailing Address _ x' State CA CA Zip Code I92701-0502 I92401- i Street 1 122795 Barton Road j Phona I(714)316 2123 I j(909)689 0871 Street 2 City Grand Terace State CA Zip 92313-5295 Phone (909)824-6621 ❑Is Address Changed? General Information Pagel 12/21/2010 I 1:'2 c Community Redevelopment Agency Of The City,Of Grand Terrace Redevelopment Agencies Financial Transactions,Reporti Audit Information Fiscal Year 2010 If compliance opinion includes exceptions, state the areas of non-compliance, Was the Report Prepared from Audited Financial Data, yes a and Did You Submit a Copy of the Audit? describe the agency's efforts to correct. Indicate Financial Audit Opinion Unqualified If Financial Audit is not yet Completed.What is the Expected Completion Date? If the Audit Opinion was Other than Unqualified,State Briefly the Reason Given Was a Compliance Audit Performed in Accordance with Yes Health and Safety Cade Section 33080.1 and the State Controllers Guidelines for Compliance Audits,and Did You Submit a Copy of the Audit? Indicate Compliance Audit Opinion junqualified If Compliance Audit is not yet Completed,What is the Expected Completion Date? Audit Information Page 1 12/21/2010 ri 1 Community Redevelopment Agency Of The City Of Gralnd Terrace; Redevelopment Agencies.Financial,Transactions Report Project Area Report Fiscal Year 2010 Project Area Name Grand Terrace Project Area Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Forwarded from Prior Year 7s Y Enter Code for Type of Project Area Report I PI ActN'rtv Report J P=Standard Project Area Report A=Administrative Fund 1-Senior Affordable Housing Project L=Low and Moderate Income Housing Fund M=Mortgage Revenue Bond Program 2-Rehabilitation of low and moderate O=Other Miscellaneous Funds or Programs S=Proposed(Survey)Project Area income households Does the Plan Include Tax Increment Provisions? Yes 3-Property acquisition for freeway oriented project and Town Square Date Project Area was Established (MM-DD-YY) 9127/1979 commercial project 4-High school and public Most Recent Date Project Area was Amended F 7/22/2010 Infrastructure Improvements Did this Amendment Add New Territory? No 5-Commercial exterior improvement program Most Recent Date Project Area was Merged r � Will this Project Area be Carried Forward to Next Year? Ye'I Established Time Limit: Repayment of Indebtedness (Year Only) ! 2034 Effectiveness of Plan (Year Only) 2024 New Indebtedness (Year Only) 2004 Size of Project Area in Acres 2,255 Percentage of Land Vacant at the Inception of the Project Area i 15.0 Health and Safety Code Section 33320.1 (xx.x%) Percentage of Land Developed at the Inception of the Project Area 85.0 Health and Safety Code Section 33320.1 (xx.x%) Objectives of the Project Area as Set Forth in the Project Area Plan RICPO (Enter the Appropriate Code(s)in Sequence as Shown) R=Residential I=Industrial C=Commercial P=Public O=Other Project Area Report Page 1 12/21/2010 I I CC t, Community Redevelopment Agency Of The,City.Of Grand Terrace Redevelopment Agencies Financial Transactions Report`;: Assessed Valuation Data Fiscal Year 2010 Project Area Name Grand Terrace Project Area Frozen Base Assessed Valuation 137,835,311 Increment Assessed Valuation 628,517.005 Total Assessed Valuation 766,352,316 i Assessed Valuation Data Page 1 1212112010 Community Redevelopment Agency Of The.City Of Grand Terrace } Redevelopment Agenclei FinanciaCTransactions.Report Pass-Through/School District Assistance Fiscal Year �2010 Project Area Name !Grand Terrace Project Area Tax Increment Pass Through Detail Other Payments Amounts Paid To Taxing H&S Code H&S Code H&S Code Total H&S Code H&S Code Agencies Pursuant To: Section 33401 Section 33676 Section 33607 Section 33445 Section 33445.5 County L 1,951,4551 $1,951,455 E Cities 106,408 $106,408 School Districts L $0 Community College District 24,698 $24,698 Special Districts $o Total Paid to Taxing $1,951,455 $0 $131,106 $2.082,561 $0 $0 Agencies Net Amount to Agency $5,811,457 Gross Tax Increment -: 7,894,018 Generated Pass-Through/School District Assistance Page 1 12/21/2010 V-7 Community Redevelopment Agency Of The Clty i Grand Terrace _ 7 Redevelopment Agencies Flnancial Transactions Report Summary of the Statement of Indebtedness-Project Area Flscal Year 2010 Project Area Name (Grim' 7erteceprcjecsArea Tax Allocation Bond Debt 2,572,190 Revenue Bonds 2,675,899 Other Long Term Debt City/County Debt 11,924,029 Low and Moderate Income Housing Fund 49,622,819 Other 100,807,841 Total $167.602.778 Available Revenues 10,522,085 Net Tax Increment Requirements $157,080,693 - Summary of the Statement of Indebtedness-Project Area Page 1 12/21/2010 Community Redevelopment Agency Of The City Of Grand :Terrace Redevelopment Agencies FinanciatTransactions Report Agency Long-Term Debt Fiscal Year 2010 Project Area Name Grand Terrace Protect Area Forward from Prior Year Bond Type ICertificates of Participation Year of Authorization r 1997 Principal Amount Authorized 3,730,000 Principal Amount Issued 3,730,000 Purpose of Issue lRefunding of the 1991 Lease-Rev Bonds Maturity Date Beginning Year 1997 Maturity Date Ending Year F7 2022 Principal Amount Unmatured Beginning of Fiscal Year $2, 220,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal 0 Principal Amount Issued During Fiscal Year 0 Principal Amount Matured During Fiscal Year 2,520,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $0 Principal Amount In Default Interest In Default ................. .................... .. .. . . .. . . ... ......................................................................................................................................................._.-.....................-.................._....-..........--...._............................._.....-......_._.. Bond Types Allowed: ( Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;State; Loans;Lease Obligations;Notes;Deferred Pass-Thmughs;Deferred Compensation;Other Agency Long-Tenn Debt Page 1 12/21/2010 CD Community.Redevelopment Agency Of.The City Of Grand.Terrace Redevelopment Agencies Financial Transai;tions Report Agency Long-Term Debt Fiscal Year 2010 Project Area Name Forward from Prior Year IYes<^ Bond Type City/County Debt Year of Authorization F 2006 Principal Amount Authorized 267,622 Principal Amount Issued 267,622 Purpose of Issue Improvements Maturity Date Beginning Year 2006 Maturity Date Ending Year I 2010� Principal Amount Unmatured Beginning of Fiscal Year $267,622 Adjustment Made During Year 0 Adjustment Explanation Interest Added to Principal - Pdncipal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year -- Pdncipal Amount Defeased During Fiscal Year 0 Principal Amount Unmatured End of Fiscal Year $267.622 Principal Amount In Default Interest In Default ......................_................_...._._._................_..._....._.........._........_..........._.....__........................_..................._..._............._........_...................._..........._..............._._...._................................_....._....__.........................................__._........_.__............. _ Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US^State; 4 1 Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other —!i{ Agency Long-Tenn Debt Page 2 12/21/2010 Al Community Redevelopment Agency Of Tfie City Of Grand.UiTace Redevelopment Agencies Financial Transactions Report- Agency Long-Term Debt Fiscal Year 2010 Project Area Name [Grand Terrace Project Area Forward from Prior Year Bond Type ITax Allocation Bonds Year of Authorization I 2004 Principal Amount Authorized 13,000,000 Principal Amount Issued 13,000,000 Purpose of Issue Refund 93A and 93B Bonds,Zions Bank loans Maturity Date Beginning Year 2004 Maturity Date Ending Year 2012 Principal Amount Unmatured Beginning of Fiscal Year $6,930,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year 0 Principal Amount Matured During Fiscal Year 1,610,000 Pdncipal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $5,320,000 Principal Amount In Default 0 Interest In Default Bond Types Allowed: ^�v� j Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;State;_� i Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other Agency Long-Term Debt Page 3 12/21/2010 �1 Community Redevelopment Agency Of The City Of Grand Terrace., - Redevelopment Agencies Financial Transactions Report Agency Long-Term Debt Fiscal Year 12010 Project Area Name Forward from Prior Year Bond Type Lease Obligations Year of Authorization I 2010 Principal Amount Authorized 2,086,889 Principal Amount Issued 2,086,889 Purpose of Issue capital lease agreement I Maturity Date Beginning Year 2010 Maturity Date Ending Year 20111 Principal Amount Unmatured Beginning of Fiscal Year 1 Adjustment Made During Year 0 Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year 2,086,BB9 !r\ Principal Amount Matured During Fiscal Year 0 _ Principal Amount Defeased During Fiscal Year 0 Principal Amount Unmatured End of Fiscal Year $2,086, 899 Principal Amount In Default 0 Interest In Default .. ._.._._......_.....................__....._..........__...._....._....._........I._................._._.._... ........... _.._...._...................................._.__..................................._................................_._........................................-......_......_.................._............_. Bond Types Allowed: 3 Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt;US;State; }f i Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other i Agency Long-Tenn Debt Page 4 12/21/2010 to 7 i Community Redevelopment Agency,Of The City Of Grand Terrace µ .Redevelopfrient'Agencies Financial Transactions Report Statement of Income and Expenditures-Revenues Fiscal Year !2-6- Project Area Name Grand Terrace Project Area Low/Moderate Special Capltal Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross 6,314,840! 1.579.178 $7,894,018 (Include All Apportionments) Special Supplemental Subvention $0 Property Assessments $0 Sales and Use Tax I $0 Transient Occupancy Tax 1 $0 Interest Income 6751 48,2981 8.4321 $57.405 Rental Income 50.3181 21.5911 $71 909 Lease Income $0 Sale of Real Estate $0 Gain on Land Held for Resale - $p Federal Grants __ $0 Grants from Other Agencies $0 Bond Administrative Fees i $0 Other Revenues $0 Total Revenues $50.993 $6,363,138 $1,609,201 $0 $8,023,332 Statement of Income and Expenditures-Revenues Page 1 12/21/2010 FZ Community Redevelopment Agency Of The City Of Grand Terrace, Redevelopment Agencies Financial Transactions Report, Statement of Income and Expenditures-Expenditures Fiscal Year 12010 Project Area Name jGrand Terrace Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs 1 444.3121 245,6751 $689.987 Professional Services I_—.-...._...__--'40,699I�- _._. 11,550.L....--.---._-- 19,237� $71,486 Planning,Survey,and Design $0 Real Estate Purchases $0 Acquisition Expense 219,8161 $219,816 Operation of Acquired Property 577 $577 Relocation Costs 1 $0 - Relocation Payments 1 $0 Site Clearance Costs $0 Project Improvement/Construction Costs 117,906 333,868 $451,774 Disposal Costs $0 Loss on Disposition of Land Held for $0 Resale Statement of Income and Expenditures-Expenditures Page 1 12/21/2010 64 Community Redevelopment Agency.Of.The City,Of Grand Terrace:. Redevelopment Agencies Financial Ttansactlons Report Statement of Income and Expenditures-Expenditures Fiscal Year 2p�p Project Area Name (Grand Terrace Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resale $0 Rehabilitation Costs $0 Rehabilitation Grants $0 Interest Expense 565,0681 J $565.068 Fixed Asset Acquisitions j $0 _`. I_. _._.Subsidies to Low and Moderate Income $0 Housing i Debt Issuance Costs J $0 U Other Expenditures Including Pass- 4.336,759 1 600,000 $4 936.759 Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes - 1,610,000 $1,610,000 Revenue Bonds,Certificates of 2,520,000 1 J-$2,520,000 Participation,Financing Authority Bonds City/County Advances and Loans $0 All Other Long-Term Debt 1 $0 Total Expenditures $822.733 $9,043.377 $1,199.357 $0 $11,065.467 Excess(Deficiency)Revenues over ($771,740) ($2,680,239) $409,844 $0 ($3,042,135) (under)Expenditures Statement of Income and Expenditures-Expenditures Page 2 12/21/2010 � �i Community.Re development,Agency.Of The,Clty.Of.Grand:Terrace Redevel6pment Agencies Financial Transactions Report Statement of Income and Expenditures-Other Financing Sources Fiscal Year 2010 Project Area Name lGrand Terrace Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds of Long-Term Debt i 2.162,0001 $2.162.000 Proceeds of Refunding Bonds $0 Payment to Refunded Bond Escrow Agent ! $0 Advances from City/County -267,622 ($267,622) Sale of Fixed Assets ...__._.i ._..--------.._._....__._........_........___._ ._. $0 ... Miscellaneous Financing Sources(Uses) 1 -33.7801 207,280 -122,5101 $50,990 Operating Transfers In 350,0001 258,6881 1 $608,688 r� Tax Increment Transfers In 0 $0 Operating Transfers Out --- r-------r-- 608,688---- $608,688 Tax Increment Transfers Out $0 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources(Uses) $48,598 $2.627,966 ($731,198) $0 $1.945,368 Statement of Income and Expenditures-Other Financing Sources Page 1 12/21/2010 A Community Redevelopment Agency Of The City Of Grand:Terrace . Redevelopment Agencies Financial Transactions Report; Statement of Income and Expenditures-Other Financing Sources Fiscal Year 12010 Project Area Name lGrand Terrace Project Area Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and ($723,142) ($52,271) ($321,354) $0 ($1,096,767) Other Financing Sources over Expenditures and Other Financing Uses Equity,Beginning of Period $3.852.903 $13,906,647 $3.171,432 $0 $20,880,982 Prior Period Adjustments $0 Residual Equity Transfers $0 Equity,End of Period $3.079,761 $13.854,376 $2.850,078 $0 $19,784,215 Statement of Income and Expenditures-Other Financing Sources Page 2 12/21/2010 A Community Redevelopment Agency,Of The City Of Grand Terrace`., Redevelopment Agencl®s Financial Transactions Report Balance Sheet-Assets and Other Debits Low/Moderate Special Fiscal Year 2010 Capital Projects Debt Service Income Housing RevenuelOther General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Assets and Other Debits Cash andlmprest Cash 9,205,1441 1.309.4181 $10,514,562 Cash with Fiscal Agent 1,300,000 $1.300,000 Tax Increments Receivable I T ,r $0 Accounts Receivable 4,306.7451 989,2191 $5.295.964 Accrued Interest Receivable 131 9,9401 925 - $10.878 Loans Receivable 90,630 � w s ` $90.630 Contracts Receivable t -.` 7-77 $0 �\ Lease Payments Receivable s; $0 Unearned Finance Charge _ __ ! -'."% $0 Due from Capital Projects Fund 37.798 $37,798 Due from Debt Service Fund "^•�% $0 Due from Low/Moderate $0 Income Housing Fund Due from Special Revenue/Other Funds Balance Sheet-Assets and Other Debits Page 1 12/21/2010 Community.Rode Agency Of The City Of.Grand Terrace Redevelopment Agencies Financial Transactions Report Balance Sheet-Assets and Other Debits Low/Moderate Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Investments - -: Other Assets $0 Investments:Land Held for 3.447,151 640,1661 A $4,087,317 Resale Allowance for Decline In $0 Value of Land Held for Resale Fixed Assets:Land, Structures,and Improvements Equipment Amount Available In Debt ',':�„ x,•�,.- �,;.;,; $0 Service Fund - Amount to be Provided for 7,674,511 -- $7.674.511 Payment of Long-Term Debt .,._ Total Assets and Other $3,447,164 $14,859,627 $3,030.358 $0 $7,674,511 $0 $29,011,660 Debits (Must Equal Total Liabilities, Other Credits,and Equities) Balance Sheet-Assets and Other Debits Page 2 12/21/2010 Community Redevelopment Agency Of The City Of Grand Terrace Redevelopment Agencies Financial.Transactions Report Balance Sheet-Liabilities and Other Credits Low/Moderato Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Liabilities and Other Credits Accounts Payable 58.7301 2,611 $61,341 Interest Payable 7 7:' $0 Tax Anticipation Notes Payable Loans Payable $0 Other Liabilities 270.8751 1.005,251 177,669 ,.i;r a $1,453,795 Due to Capital Projects Fund ,r,a? $0. Due to Debt Service Fund $37.798 Due to Law/Moderate Income Housing Fund Due to Special Y r $0 Revenue/Other Funds _ Tax Allocation Bonds Payable -5,320,000 _ $5,320,000 Lease Revenue,Certificates r 0 :.-�, `;:. $0 - of Participation Payable, Financing Authority Bonds All Other Long-Term Debt 2.354.511 $2,354,511 Total Liabilities and Other $367,403 $1,005,251 $180,280 $0 $7,674,511 - $9,227,445 Credits Balance Sheet-Liabilities and Other Credits Page 1 12/21/2010 7r Community Redevelopment Agency Of.The City Of Grand Terrace Redevelopment Agencies Financial Transactions Report,. Balance Sheet-Liabilities and Other Credits Low/Moderato Special Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Equities Investment In General Fixed :k, $p Assets Fund Balance Reserved 3,596,3231 5,606,7451 1,628,9711 $10.832.039 Fund Balance S0 Unreserved-Designated Fund Balance -516,5621 8,247,6311 1.221,1071 $8.952,176 Unreserved-U ndesignated Total Equities $3,079,761 $13,854,376 $2,850,078 $0 _ $0 $19,784,215 Total Liabilities, Other Credits, and Equities $3,447,164 $14,859,627 $3,030.358 $0 S7,674,511 $0 $29,011,660 Balance Sheet-Liabilities and Other Credits Page 2 12/21/2010 71 Community Redevelopment Agency Of The City.Of Grand.Terrace Redevelopment Agencies Financial Transactions Report Statement of Income and Expenditures- Summary,Combined Transfers In/Out Fiscal Year 2010 Operating Transfers In $608,6B8 Tax Increment Transfers In $0 Operating Transfers Out I $608,6B8 Tax Increment Transfers Out $0 Statement of Income and Expenditures- Summary, Page 1 12/21/2010 Combined Transfers In/Out 72 Ab'. CALIFORNIA December 23, 2010 State of California Division of Housing Policy Redevelopment Section 1800 Yd Street, Suite 430 Sacramento, CA 95814 Re: Community Redevelopment Agency of the City of Grand Terrace FY 2009-10 HCD Report Audited Financial Report 6-30-2010 (1) I Enclosed please find our audited financial statements (1) for the City of Grand Terrace for FY 2009-10 and the HCD Annual Report for the Community - Redevelopment Agency of the City of Grand Terrace. If you need additional information, do not hesitate to contact me at (909) 430-2216 or email me at bsimon@cityofgrandterrace.org Sincerely, i Bernie Simon Finance Director 22795 Barton Road, Grand Terrace, California 92313 9091824-6621 909/783-2600 fax 73 1 CALIFORNIA December 23, 2010 State of California Division of Housing Policy Redevelopment Section 1800 Yd Street, Suite 430 Sacramento, CA 95814 Re: Community Redevelopment Agency of the City of Grand Terrace FY 2009-10 HCD Report Audited Financial Report 6-30-2010 (1) Enclosed please find our audited financial statements (1) for the City of Grand Terrace for FY 2009-10 and the HCD Annual Report for the-Community Redevelopment,Agency of the City of Grand Terrace. If you need additional information;do not hesitate to contact me at (909) 430-2216 or email me at bsimon@cityofgrandterrace.org Sincerely, Bernie Simon Finance Director 22795 Barton Road, Grand Terrace, California 92313 9091824-6621 909/783-2600 fax 74 I From: "Jane Carlson"<jcarison@webrsg.com> To: "Bernie Simon"<bsimon@cityofgrandterrace.org> CC: "Jim Simon"<jsimon@webrsg.com> Date: 12/22/2010 4:17 PM Subject: Annual Reports Bernie, The SCO report has been submitted.The FTP site doesn't produce a confirmation page, but if you type the following address into your \ browser ftp://ftp.sco.ca.gov and login, you can see the report on the page. Usemame:sco01 igrs pw: kc925ar1 The file is named,2010-13983633700.mdb. Then you already have the cover page,which needs to be submitted before the SCO report will be acknowledged. Finally, I am out of the office starting tomorrow until January 3rd, but if you have any questions or need anything relating to the HCD reports, Jim Simon will be in the office tomorrow. Have a wonderful Holiday and a Happy New Year. Thanks, Jane Carlson RSG, Inc. 309 West 4th Street Santa Ana, CA 92701-4502 T: 714.541.4585 x123 D: 714.316.2123 (direct line) 79 CRA of Grand Terrace Fiscal Year End June 3 0, 2010 Redevelopment Agency Annual Housing Activity Report �E CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REDEVELOPMENT AGENCY ANNUAL HOUSING ACTIVITY REPORT FY ENDING: 6/30/2010 Agency Name and Address: County of Jurisdiction: Community Redevelopment Agency of the City of Grand Terrace San Bernardino 22759 Barton Road Did the Agency pay SERAF from LMIH17 Grand Terrace,CA 92313-5295 ElYes ®No Health&Safety Code Section 33080.1 requires agencies(RDAs)to annually report on their Low&Moderate Income Housing Fund and housing activities for the Department of Housing and Community Development(HCD)to report on RDAs'activities in accordance with Section 33080.6. Please answer each question below. Your answers determine how to complete the HCD report. 1. Check one of the items below to identify the Agency's status at the end of the reporting period: ❑ New(Agency formation occurred during reporting vear. No financial transactions were completed). t ® Active(Financial and/or housing transactions occurred during the reporting year) ❑ Inactive(No financial and/or housing transactions occurred during the reporting_). ONLY COMPLETE ITEM 7 ❑ Dismantled(Agency adopted an ordinance and dissolved itself before start of reporting year). ONLY COMPLETE ITEM 7 2. During reporting year,how many adopted project areas existed? Of these,how many were merged during year? If the agency has one or more adopted project areas,complete SCHEDULE HCD-A for each proiect area. If the agency has no adopted project areas,DO NOT complete SCHEDULE HCD-A(refer to next question). 3. Within an area outside of any adopted project area(s): (a)did the agency destroy or remove any dwelling units or displace any households over the reporting period,(b)does the agency intend to displace any households over the next reporting period,(c)did the agency permit the sale of any owner-occupied unit prior to the expiration of land use controls over the reporting period,and/or (d)did the agency execute a contract or agreement for the construction of any affordable units over the next two years? ❑ Yes(any question). Complete SCHEDULE HCD-B. ® No(all questions). DO NOT complete SCHEDULE HCD-B(refer to next question). 4. Did the agency's Low&Moderate Income Housing Fund have any assets during the reporting period? ® Yes. Complete SCHEDULE HCD-C. ❑ No. DO NOT complete SCHEDULE HCD-C. J5. During the reporting period,were housing units completed within a project area and/or assisted by the agency outside a project area? ® Yes. Complete all applicable HCD SCHEDULES D 1-D7 for each housing proiect completed and HCD SCHEDULE E. ❑ No. DO NOT complete HCD SCHEDULES DI-D7 or HCD SCHEDULE E. 6. Specify whether method A and/or B was used to report financial and housing activity information to HCD: ® A. Forms. All required HCD SCHEDULES A.B,C,131-137,and E are attached. ❑ B. On-line(http://www.hcd.ca.govlydal)"Lock Report"date: . HCD SCHEDULES not required. (lock date is shown under "Admin"Area and "Report Change'History' 7. To the best of my knowledge: (a)the representations made abov and(b)agency information reported are correct. December 23.2010 �•�S �� Date Signs of Audi rized Agency Representative Executive Director Title (909)824-6621 Telephone Number • IF NOT REQUIRED TO REPORT,SUBMIT ONLYA PAPER COPY OF THIS PAGE. • IF REQUIRED TO REPORT,AND REPORTING BY USING PAPER FORMS(IN PLACE OF REPORTING ON-LINE),SUBMIT THIS PAGE AND ALL APPLICABLE HCD FORMS(SCHEDULES A-E) WITH A COPY OF AGENCY'S AUDIT. • IF REPORTING ON-LINE,PRINT AND SUBMIT"CONFIRMATION LETTER"UPON LOCKING REPORT • ,'HAIL A COPY OF(a)CONFIRMATION LETTER(IF HCD REPORT WAS ELECTRONICALLY FILED)OR(b)COMPLETED FORMS AND(c)AUDIT REPORT TO BOTH HCD AND THE SCO: Department of Housing&Community Development The State Controller Division of Housing Policy Division of Accounting and Reporting Redevelopment Section Local Government Reporting Section 1800 3rd Street,Suite 430 3301 CStreet.Suite 500 Sacramento, CA 95814 Sacramento, CA 95816 R rrlrvP1nnmrnt AaPnnv Anmial Rr rt-Ficral Vrar Mpg-7()1(1 "(n_rnvrr 77 SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 6/30/2010 Agency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Community Redevelopment Project Area Preparer's Name,Title:Jane Carlson,Analyst,RSG Inc. Preparer's E-Mail Address: icarlson[a,webrsa.com Preparer's Telephone No:714-316-2123 Preparer's Facsimile No:714-541-1175 GENERAL INFORMATION 1. Project Area Information a. 1.Year I"plan for project area was adopted: 1981 2. Year that plan was last amended(if applicable): 2010 3. Was plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741,Statutes of 2001)?Yes X No_ 4. Current expiration of plan: 7/ 151 2024 mo day yr b. If project area name has changed,give previous name(s)or number: c. Year(s)of any mergers of the project area: , Identify former project areas that merged: d. Year(s)project area plan was amended involving real property that either: (1) Added property to plan: 1981, , (2) Removed property from plan: , 2. Affordable Housing Replacement and/or Inclusionary or Production Requirements(Section 33413). Pre-1976 proiect areas not subsequently amended after 1975: Pursuant to Section 33413(d),only Section 33413(a)replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency.has elected to apply all or part of Section 33413,provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date: / / Resolution Scope(applicable Section 33413 requirements): mo day yr Post-1975 proiect areas and eeographic areas added by amendment after 1975 to pre-1976 project areas: Both replacement and inclusionary or production requirements of Section 33413 apply. NOTE: Amounts to report on HCD-A lines 3a(1),3b-3f,and 3i.can be taken from what is reported to the State Controller's Office(SCO)on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report,except for the reclassifying of Transfers-In from Internal Funds and the reporting of Other Sources as discussed below:. Transfers-In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a-j. For example,report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A,Line 3a(1) and report the Housing Fund's share of expenditures for debt service on HCD-C,Line 4c. Do not report "net"funds transferred from the Debt Service Fund on HCD-A,Line 3a(7)when reporting debt service expenditures on HCD-C,Line 4c. Other Sources: Non-GAAP(Generally Acceptable Accounting Principles)revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A 79. Agency Name: CRA of City of Grand Terrace Project Area Name: Grand Terrace Comm.Redevelopment Project Area 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h(1)or on Line 3h(2)if the repayment of loan principal is a result of the FY2009-10 and/or FY2010-11 SERAF. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A 0-t. A 10-..:--A.n 10 ins 79 Agency Name: CRA of City of Grand Terrace Project Area Name: Grand Terrace Comm.Redevelopment Project Area Proiect Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year. Any income related to agency-assisted housing located outside the project area(s)should be reported as"Other Revenue"on Line 3j.(of this Schedule A),if this Qroiect area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a.-3i.,should be reported on Line 3j. Enter on Line 3a(1)the full 100%of gross Tax Increment allocated prior to applicable pass through of funds and deductions for fees(refer to Sections 33401,33446,&33676). Compute the required minimum percentage(%)of gross Tax Increment and enter the amount on Line 3a(2)(A)or 3a(2)(B). Report SERAF on Line 3a(3). Next,on Line 3a(4), report the amount of Tax Increment set-aside allotted before any exemption and/or deferral. To determine the amount of Tax Increment deposited to the Housing Fund[Line 3a(7)],subtract allowable amounts exempted[Line 3a(5)]and/or deferred[Line 3a(6)]from the net amount allocated to the Housing Fund[Line 3a(4)]. a. Tax Increment: _ (1) 100%of Gross Allocation: $7,894,018 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20%required by 33334.2 (Line 3a(1)x 20%): $ 1,578,804 (B) 30%required by 33333.10(g)(Line 3a(1)x 30%): $ (Senate Bill 211,Chapter 741,Statutes of 2001) (3) Supplemental Education Revenue Augmentation Fund(SERAF): (A)SUSPENSION:Only allowed in FY2009-10. ($ ) H&SC Section 33334.2(k)allows agencies to suspend all or part of the set-aside allocation on line 3a(2)to pay FY2009-10 SERAF(complete Sch A,page 3,#4 and Sch-C,page 9) (B) SERAF REPAYMENT of FY2009-10 SUSPENDED amount $ (complete Sch A,page 3,#4 and Sch-C,page 3,8e and page 9). (4) Net amount of tax increment allocated to Housing Fund $ 1,579,178 If the net amount of set-aside allocated is less than the required minimum,identify the project area(s)making up any difference and explain on page 4,box#5 [per 33334.3(i)]. (5) Amount Exempted(H&SC Section 33334.2) ($ ) [if there is an amount exempted,also complete page 3,#5a(1)-(2)]: (6) Amount Deferred(H&SC Section 33334.6) ($ ) [if there is an amount deferred,also complete pages 4-5,#5b(1)-(4)]: (7) Total deposit to the Housing Fund[Net result of Line 304)through 3a(6)1: $ b. Interest Income: $ 8,432 c. Rental/Lease Income(combine amounts separately reported to the SCO): $ 21,591 d. Sale of Real Estate: $ e. Grants(combine amounts separately reported to the SCO): $ f. Bond Administrative Fees: $ g. Deferral Repayments[also complete,page 4, Line 5b(3)]: $ h. (1)Loan Repayments(other than SERAF): $ (2)SERAF LOAN Repayments(also complete Sch-C,page 3,8e and page 9) $ i. Debt Proceeds: $ j. Other Revenue(s)[Explain and identify amount(s)]: S California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-A 9C Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm. Redevelopment Project Area k. Total Project Area Receipts Deposited to Housing Fund(add lines 3a(7)and 3b-3j.): $ 1,609,201 California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A R1 Agency Name: CRA of City of Grand Terrace Project Area Name: Grand Terrace Comm.Redevelopment Project Area Supplemental Educational Revenue Augmentation Fund(SERAF)Suspension of Property Tax Revenue Deposit 4. Check box below and provide information only if the agency,between July 1,2009 and June 30,2010,exercised suspension option(Sch A,page 2,Line 3a(3)(A)and did not make the required minimum allocation and deposit of tax increment to the Housing Fund for the purpose of using suspension funds to meet the Fiscal Year 2009-10 SERAF obligation. Note,pursuant to Health and Safety Section 33334.2(k),repayment is required before June 30,2015. ❑ SERAF[H&SC Section 33334.2(k)]. In FY2009-10 the agency exercised option to suspend allocating and depositing a portion of the minimum 20%of gross property tax increment. Instructions: Please include amounts for ALL fiscal years between FY2009-10 and FY2014-15 (in addition to the current reporting fiscal year)to record agency compliance with repayment requirements as referenced in H&SC Section 33334.2(k)(1)(2)(3). r Also report the cumulative total suspended and repaid amounts(from all project areas)in Schedule `C',page 9,box 23. Fiscal Years Applicable to Col 1 Col 2 Col 3 * SERAF Suspension and Remaining SERAF Repayment Deposit Identify SERAF Identify any SERAF Balance Amount Suspended Repayment(Deposit) (prior year Col 3 FY 2009-2010 Made in Fiscal Year minus Current year Repayment Col 2) 2009-2010 $ $ 2010—2011 $ $ 2011 -2012 $ $ 2012-2013 $ $ 2013—2014 $ $ 2014-2015 $ $ 1 Exemption(s)and Deferral(s) 5. a.(1)If an exemption was claimed on Page 2,Line 3a(5)to deposit less than the required amount,complete the following information: Check only one of the Health and Safety Code Sections below(Note:An Annual Finding is required to be submitted to HCD) ❑ Section 33334.2(a)(1): No need in community to increase/improve supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than the minimum set-aside%(20%or 30%)is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside%(20%or 30%) and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C),this exemption expired on June 30,1993 but contracts entered into prior to May 1,1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and reason(s): (2)For any exemption claimed on Page 2,Line 3a(5)and Line 5a(1)above,identify: Date that initial W)finding was adopted: / / Resolution# Date sent to HCD: / 1 mo day yr mo day yr Adoption date of reporting year finding: / / Resolution# Date sent to HCD: / / mo day yr mo day yr California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A Q7 Agency Name: CRA of City of Grand Terrace Project Area Name: Grand Terrace Comm.Redevelopment Project Area Exemptions and Deferrals continued BOX#5 Identification of Project area and explanation if set-aside deposit is LESS THAN the required minimum Refer to Sch A,page 2,Line 3(a)(4): Deferral(s) 5. b.(1) If a Deferral was claimed on Page 2,Line 3a(6)to deposit less than the required amount,complete the following information: Check only one of the Health and Safety Code Sections below ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985,if net proceeds were used to refinance pre-1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e)expired. It was only allowable in each fiscal year prior to July 1,1996 with certain restrictions. ❑ Other Health&Safety Code Section here: (2) For any deferral claimed on page 2,Line 3a(6)and Line 5b(1)above,identify: Date that initial(1 n)finding was adopted: / / Resolution# Date sent to HCD: mo day yr mo day yr Adoption date of reporting year finding: / / Resolution# Date sent'to HCD: mo day yr mo day yr (3) A deferred set-aside per to Section 33334.6(d)constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred and repayments made during the reporting year and the cumulative amount deferred as of end of FY: REPAYMENTS Amount Deferred REPAYMENTS Cumulative Amount This Reuorting FY of Deferrals During Deferred(Net of Any Fiscal Year Revorting FY Amount(s)Repaid*) (1)Last Reporting FY $ (2)This Reporting FY $ $ $ *The cumulative amount of deferred set-aside should also be shown on HCD-C,page 3, Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report(HCD-A and HCD-C),indicate the amount of difference and the reason(use box above if needed): Difference: $ Reason(s): California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A R'2 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Deferral(s)continued (4)Section 33334.6(g)requires any agency which defers set-asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set-asides,has it adopted such a plan? Yes ❑ No❑ If yes,by what date is the deficit to be eliminated? MCI day yr If yes,when was the original plan adopted for the claimed deferral? mo day yr Identify Resolution# Date Resolution sent to HCD mo- day yr When was the last amended plan adopted for the claimed deferral? mo day yr Identify Resolution# Date Resolution sent to HCD mo day yr Actual Proiect Area Households Displaced and Units and Bedrooms Lost Over Reyortins Year: 6. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3),report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed,over the reporting year,(refer to Section 33413 for unit and bedroom replacement requirements). Number of Households/Units/Bedrooms Project Activity VL L M AM Total Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced—Total Units Lost(Removed or Destroyed)and Required to be Replaced Bedrooms Lost(Removed or Destroyed)and Required to be Replaced Above Moderate Units Lost That Agency is Not Required to Replace. Above Moderate Bedrooms Lost That Agency is Not Required to Replace ��J b. Other Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3)based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a,report by income category the number of elderly and nonelderly households permanently displaced over the reporting year: Number of Households Other Activity VL L M AM Total Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced—Total c. As required in Section 33413.5,identify,over the reporting year,each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported on lines 6a.and 6b. Date / / Name of Agency Custodian mo. day yr Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A RA i i Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Estimated Proiect Area Households to be Permanently Displaced Over Current Fiscal Year: 7. a. As required in Section 33080.4(a)(2)for a redevelopment project of the agency,estimate,over the current fiscal year,the j number of elderly and nonelderly households,by income category,expected to:be permanently displaced. (Note:actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity VL L M AM Total Households Permanently Displaced-Elderly Households Permanently Displaced -Non Elderly Households Permanently Displaced-Total b. As required in Section 33413.5,for the current fiscal year,identify each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported in 7a. i Date / / Name of Agency Custodian mo day yr Date. / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Proiect Area to Fulfill Reauirements of Other Proiect Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v);agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units,provided the agency conducts a public hearing and finds,based on substantial evidence,that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial,ethnic,or r economic segregation. Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ® No. ❑ Yes. Date initial finding was adopted? / / Resolution#. Date sent to HCD: mo day yr mo day yr Number of Dwelling Units Name of Other Project Area(s) VL L M Total', i. I 1 ii California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-A C_L A .n__.___J.n l0 In\ n___ o _rn n A5 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Sales of Owner-Occupied Units Inside the Proiect Area Prior to the Expiration of Land Use Controls 9. Section 33413(c)(2)(A)specifies that pursuant to an adopted program,which includes but is not limited to an equity sharing program,agencies may permit the sale of owner-occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three (3)years from the date the unit was sold,expend funds to make into unit equal in affordability,at the same income level,to the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied units during the reporting year? ®No ❑Yes $ F- Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M Total Units Sold Over Reporting Year b. Egual Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting year. ®No ❑Yes $ F- Total LMIHF Spent On Equal Units Over Number of Units Re ortin Year SALES VL L M I Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs.Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Inside the Proiect Area Within Two Years 10. Pursuant to Section 33080.4(a)(10),report the number of very low,low,and moderate income units to be financed by any federal, state,local,or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting year. Identify the project and/or contractor,date of the executed agreement or contract,and estimated completion date. Specify the amount reported as an encumbrance on HCD-C,Line 6a.and/or any applicable amount designated on HCD-C,Line 7a.such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS ON THIS SCHEDULE A THAT ARE REPORTED ON OTHER HCD-As,B,OR Ds. Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date (w/in 2 yrs of Col B Line 6a Line 7a VL L M Total Is is Is Is Please attach a separate sheet of paper to list additional information. Califomia Redevelopment Agencies-Fiscal Year 2009-2010 HCD-A n---n -Cn R SCHEDULE HCD-B Outside Project Area Activity for Fiscal Year that,Ended 6/30/2010 I; I, Agency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Community Redevelopment Project Area " Preparer's Name,Title:Jane Carlson,Analyst.RSG Inc. Preparer's E-Mail Address: icazlson�webrsg com j Preparer's Telephone No:714-316-2123 Preparer's Facsimile No:714-541-1175 Actual Households Displaced and Units and Bedrooms Lost Outside of Proiect Area(s)Over Resorting Year a. Redevelopment Proiect Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3),report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed,over the reporting veaz,(refer to Section 33413 for unit and bedroom replacement requirements). Number of Households/Units/Bedrooms Activity VL L M AM Total Households Permanently Displaced—Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced—Total Units Lost(Removed or Destroyed)and Required to be Replaced Bedrooms Lost(Removed or Destroyed)and Required to be Replaced Above Moderate Units Lost That Agency is Not Required to Replace Above Moderate Bedrooms Lost That Agency is Not Required to Replace b. Other Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3)based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 1 a,report by income category the number of elderly and nonelderly households permanently displaced over the reporting year. Number of Households Activity VL L M AM Total Households Permanently Displaced - Elderly Households Permanently Displaced - Non Elderly Households Permanently Displaced—Total i ' I c. As required in Section 33413.5,identify,over the reporting year,each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and/or bedrooms impacting the households reported on lines 1 a.and 1 b. " Date / / Name of Agency Custodian j mo day yr Date / / Name of Agency Custodian j mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. i California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-B Q7 Agency Name: CRA of City of Grand Terrace Project Area Name:Grand Terrace Comm.Redevelopment Project Area Estimated Households Outside of Proiect Area(s)to be Permanently Displaced Over Current Fiscal Year: 2. a. As required in Section,33080.4(a)(2)for a redevelopment project of the agency,estimate,over the current fiscal year,the number of elderly and nonelderly households,by income category,expected to be permanently displaced. (Note:actual displacements will be reported for the next reporting year on Line 1). Estimated Permanent Displacements Number of Households Activity VL L M AM Total Households Permanently Displaced -Elderly Households Permanently Displaced-Non Elderly Households Permanently Displaced -Total b. As required in Section 33413.5,for the current fiscal ye,identify each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported on 2a. Date / / Name of Agency Custodian mo day yr Date / / Name of Agency Custodian mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Sales of Owner-Occupied Units Outside of Proiect Area(s)Prior to the Expiration of Land Use Controls' 3. Section 33413(c)(2)(A)specifies that pursuant to an adopted program,which includes but is not limited to an equity sharing program, agencies may permit the sale of owner-occupied units prior to the expiration of the period of the land use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three(3)years from the date the unit was sold,expend funds to make another unit equal in affordability,at the same income level,as the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied units during the reporting year? ®No DYes $ F-Total Proceeds From Sales Over Reporting Year Number of Units Income Level VL I L M Total Units Sold Over Current Reporting Year b. Eaual Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? ®No Yes $ F—Total LMIHF spent on Equal Units Over Re orting Year Number of Units Income Level VL I L M I Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago Affordable Units to be Constructed Outside of Proiect Area(s)Within Two Years From Date of Agreement or Contract 4. Pursuant to Section 33080.4(a)(10),report the number of very low,low,and moderate income units to be financed by any federal,state, local,or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting_year. Identify the project and/or contractor,date of the executed agreement or contract,and estimated completion date. Specify the amount reported as an encumbrance on HCD-C,Line 6a.and/or any applicable amount designated on HCD-C, Line 7a.such as for capital outlay or budgeted funds intended to be encumbered for project use within two years from the reporting year's agreement or contract date. DO NOT REPORT ANY UNITS SHOWN ON SCHEDULES HCD As OR Ds. Col A Col B Col C Col D Col E Name of Agreement Estimated Sch C Amount Sch C Amount Project and/or Execution Completion Date Encumbered Designated Contractor Date (w/in 2 yrs of Col B Line 6a Line 7a VL L M Total $ s s is Is $ ' Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-B 1;� SCHEDULE HCD-C Agency-wide Activity for Fiscal Year that Ended 6/30/2010 Agency Name:CRA of the City of Grand Terrace Project Area Name:Grand Terrace Comm. Redevelopment Project Area Preparer's Name,Title:Jane Carlson,Analyst,RSG Inc. Preparer's E-Mail Address:icarlson ,webrsg.com Preparer's Telephone No: 714-316-2123 Preparer's Facsimile No: 714-541-1175 Low&Moderate Income Housing Funds Report on the"status and use of the agency's Low and Moderate Income Housing Fund." Most information reported here should be based on information reported to the State Controller. 1. Beginning Balance(Use"Net Resources Available"from last fiscal year report to HCD) $1,518,061 a. If Beginning Balance requires adjustment(s)describe and provide dollar amount(positive/negative) making un total adiustment: Use<$>for negative amounts or amounts to be subtracted. Loans Receivable $24,400 b. Adjusted Beginning Balance[Beginning Balance plus+or minus<->Total Adjustment(s)] $1,542,461 2. Project Area(s)Receipts and Housing Fund Revenues a. Total Project Area(s)Receipts.Total Summed amount of HCD-Schedule A(s)(from Line 3k) $1,609,201 b. Housing Fund Resources not reported on HCD Schedule-A(s) Describe and Provide Dollar Amount(s)(Positive/Negative)Making Up Total Housing Fund Resources c. Total Housing Fund Resources $ 3• Total Resources (Line lb.+Line 2a+Line 2c.) $3,151,662 NOTES: Many amounts to report as Expenditures and Other Uses(beginning on the next page)should be taken from amounts reported to the State Controller's Office(SCO). Review the SCO's Redevelopment Agencies Financial Transactions Report. Housing Fund"transfers-out"to other internal Agency funds: Report the specific use of all transferred funds on applicable lines 4a.-k of Schedule C. For example,transfers from the Housing Fund to the Debt Service Fund for the repayment of ' principal and interest of debt proceeds deposited to the Housing Fund should be reported on the applicable item comprising HCD-C Line 4c,providing tax increment(gross and deposit amounts)were reported on Sch-As. External transfers out of the Agency should be reported on HCD-C Line 4j (e.g.: transfer of excess surplus to the County Housing Authority). Other Uses: Non-GAAP(Generally Accepted Accounting Principles)recording of expenditures such as land purchases for agencies using the Land Held for Resale method to record land purchases should be reported on HCD-C Line 4a(1). Funds spent resulting in loans to the Housing Fund should be included in HCD-C lines 4b.,4f.,4g.,4h.,and 4i as appropriate. The statutory cite pertaining to Community Redevelopment Law(CRL)is providedforpreparers to review to determine the appropriateness of Low and Moderate Income Housing Fund(LMIHF)expenditures and other uses. HCD does not represent that line items identifying any expenditures and other uses are allowable. CRL is accessible on the California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 1 of 15 R9 rued Internet[website: http://www.leginfo.ca.gov/(California Law)]beginning with Section 33000 of the Health and Safety Code. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 2 of 15 ruea i 4. Expenditures, Loans, and Other Uses a. Acquisition of Property&Building Sites[33334.2(e)(1)]&Housing[33334 2(e)(6)]: (1) Land Purchases(Investment—Land Held for Resale) * $ (2) Housing Assets(Fixed Asset) * $ (3) Acquisition Expense $ (4) Operation of Acquired Property $577 (5) Relocation Costs $ (6) Relocation Payments $ (7) Site Clearance Costs $ (8) Disposal Costs $ (9) Other[Explain and identify amount(s)]: Residual Receipts Sec Agrmt City $600,000 * Reported to SCO as part of Assets and Other Debts j (10) Subtotal Property/Building Sites/Housing Acquisition(Sum of Lines 1 — $600,577 9) b. Subsidies from Low and Moderate Income Housing Fund(LMIHF): (1) 1"Time Homebuyer Down Payment Assistance $ (2) Rental Subsidies $ (3) Purchase of Affordability Covenants[33413(b)2(B)] $ (4) Other[Explain and identify amount(s)]: $ $ $ (5) Subtotal Subsidies from LMIHF(Sum of Lines 1—4) $ j c. Debt Service f33334.2(e)(9)1. If paid from LMIHF,report LMIHF's share of debt service. If paid from Debt Service Fund,ensure"gross"tax increment is reported on HCD-A(s)Line 3a(1). (1) Debt Principal Payments (a) Tax Allocation,Bonds&Notes $ (b) Revenue Bonds&Certificates of Participation $608,688 (c) City/County Advances&Loans $ I (d) U. S. State&Other Long—Term Debt $ (2) Interest Expense $ j (3) Debt Issuance Costs $ (4) Other[Explain and identify amount(s)]: Transfers to city-cost allocation $122,510 $ I (5) Subtotal Debt Service(Sum of Lines 1—4) $731,198 d. Planning and Administration Costs f33334.3(e)(1)I: (1) Administration Costs $245,675 (2) Professional Services(non project specific) $19,237 (3) Planning/Survey/Design(non project specific) $ (4) Indirect Nonprofit Costs [33334.3(e)(1)(13)] $ (5) Other[Explain and identify amount(s)]: California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) PaRe 3 of 15 Q1 Area (6) Subtotal Planning and Administration(Sum of Lines 1—5) $264,912 4. Expenditures,Loans, and Other Uses(continued) e. On/Off-Site Improvements[33334.2(e)(2)] Complete item 13 $ f. Housing Construction[33334.2(e)(5)] $333,868 g. Housing Rehabilitation[33334.2(e)(7)] $ h. Maintain Supply of Mobilehome Parks[33334.2(e)(10)] $ i. Preservation of At-Risk Units [33334.2(e)(11)] $ j. Transfers Out of Agency (1) For Transit village Development Plan(33334.19) $ (2) Excess Surplus [33334.12(a)(1)(A)] $ (3) Other(specify code section authorizing transfer and amount) A. Section $ B. Section $ Other Transfers Subtotal $ (4)Subtotal Transfers Out of Agency(Sum of j(1)through j(3)) $ k. SERAF loan[33334.2 (k)] Also complete Line 8e(below)and Box 23,pg 9. $ 1. Other Expenditures,Loans,and Uses[Explain and identify amount(s)]: S Subtotal Other Expenditures,Loans,and Uses $333,868 m. Total Expenditures,Loans, and Other Uses(Sum of lines 4a.-1.) $1,930,555 5 Net Resources Available[End of Reporting Fiscal Year] . [Page 1,Line 3,Total Resources minus Total Expenditures,Loans,and Other Uses on Line 4.1.1 $1,221,107 6. Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment of legal contract(s)or $ agreement(s).See H&SC Section 33334.12(g)(2)for definition Refer to item 10 on Sch-A(s)and item 4 on Sch-B. b. Unencumbered Balance(Line 5 minus Line 6a). Also enter on Page 4,Line 1 la. $ 1,221,107 7. Designated/Undesignated Amount of Available Funds a. Designated From Line 6b-Budgeted/planned to use near-term $ Refer to item 10 on Sch-A(s)and item 4 on Sch-B b. Undesignated From Line 6b-Portion not vet budgeted/planned to use $ 8. Other Housing Fund Assets(non recurrent receivables)not included as part of Line 5 a. Indebtedness from Deferrals of Tax Increment(33334.6) [refer to Sch-A(s),Line 5c(2)]. $ b. Value of Land Purchased with Housing Funds and Held for Development of Affordable Housing. Complete Sch-C item 14. $640,166 c. Loans Receivable for Housing Activities $688,600 d. Residual Receipt Loans(periodic/fluctuating payments) $ e. SERAF Total Receivable[Sec 33334.2(k)] (Also report in Sch C,Box 23,pg 9.) $ f. ERAF Loans Receivable(all years)(33681) $ g. Other Assets[Explain and identify amount(s)]: Long term advances $300,205 h Total Other Housing Fund Assets(Sum of lines 8a.-g.) $1,628,971 9. TOTAL FUND EQUITY [Line 5(Net Resources Available)+8g(Total Other Housing Fund Assets)] $2,850,078 Compare Line 9 to the below amount reported to the SCO(Balance Sheet of Redevelopment Agencies Financial Transactions Report. [Explain differences and identify amount(s)]: California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Paee 4 of 15 q: i Area ENTER LOW-MOD FUND TOTAL EQUITIES(BALANCE SHEET)REPORTED TO SCO $2,850,07 8 i I. I, I I �I �I I, California Redevelopment Agencies—Fiscal Year 2009-2010 FICD-C Sch C(Revised:9-28-10) Page 5 of 15 A2 H1CG Excess Surplus Information Pursuant to Section 33080.7 and Section 33334.12(g)(1),report on Excess Surplus that is required to be determined on the first day of a fiscal year. Excess Surplus exists when the Adjusted Balance exceeds the greater of:(1)$1,000,000 or(2)the aggregate amount of tax increment deposited to the Housing Fund during the prior four fiscal years. Section 33334.12(g)(3)(A)and(B) provide that the Unencumbered Balance can be adjusted for: (1)any remaining revenue generated in the reporting year from unspent debt proceeds and(2)if the land was disposed of during the reporting year to develop affordable housing,the difference between the fair market value of land and the value received. The Unencumbered Balance is calculated by subtracting encumbrances from Net Resources Available. "Encumbrances"are fiords reserved and committed pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities[Section 33334.12(g)(2)]. For Excess Surplus calculation purposes,carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the first day of the reporting fiscal year. Determine which is larger:(1)$1 million.or(2)the total of tax increment deposited .. over the prior four years. Subtract the largest amount from the Adjusted Balance and,if positive,report the amount as Excess Surplus. 10. Excess Surplus: Complete Columns 2,3,4,&5 to calculate Excess Surplus for the reporting ear. Columns 6 and 7 track pri r ears'Excess Surplus. Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Sum of Tax Current Current Amount 4 Prior and Total Tax Increment Reporting Year Reporting Year Expended/Encumbered Remaining Excess Current Increment Deposits Over is`Day 1"Day Against FY Balance of Surplus for Each Reporting Deposits to Prior Four Adjusted Excess Surplus Excess Surplus as of Fiscal Year as of Yew HousingFund FYs Balance Balances End of Reportine Year End of Reyortins Year 4 Rpt,Yrs Ago FY 05106 $1,232,104 $533,336 $533,336 $ 3 Rvt YrsAgo Y 06107 $1,292,600 $487,734 $487,734 $ 2 Rut Yrs Ago Y 07/06 $1,417,922 $-- $ $ 1 RRt Yr Ago FY 08/09 $1,788,550 $-- $-- $ CURRENT Sum of Column 2 Last Year's Sch C Col 4 minus:larser Reporting Adjusted Balance of Col 3 or$lmm Year Leoort Qositive$) FY 09/10 $5,731,176 $1,517,653 $- $- $- 1 i. Reportinr Year Ending Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance(End of Year)[Page 3,Line 6b] $1,221,107 b. If eligible,adjust the Unencumbered Balance for: (1) Debt Proceeds[33334.12(g)(3)(B)]: Identify unspent debt proceeds and related income remaining at end of reporting year $ (2)Land Conveyance Losses[(33334.12(g)(3)(A))]: Identify reporting year losses from sales/grants/leases of land acquired with low-mod fiords, if 49%or more of new or rehabilitated units will be affordable to lower-income households $ 12.Adjusted Balance(next year's determination of Excess Surplus)[Line 1la minus sum of 1lb(1)& 1lb(2)] $1,221,107 Note:Do not enter Adjusted Balance in Col 4.. It is to be reported as next year's 1st day amount to determine Excess Surplus a. If there is remaining Excess Surplus from what was determined on the first day of the reporting year,describe the agency's plan(as specified in Section 33334.10)for transferring,encumbering,or expending excess surplus: California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 6 of 15 G2 Area b. If the plan described in 12a.was adopted,enter the plan adoption date: mo day yr Miscellaneous Uses of Funds 13. If an amount is reported in 4e.,pursuant to Section 33080.4(a)(6),report the total number of very low-,low-,and moderate- income households that directly benefited from expenditures for onsite/offsite improvements which resulted in either new construction,rehabilitation,or the elimination of health and safety hazards. (Note: If Line 4e of this schedule does not show expenditures for improvements,no units should be reported here.) Households Benefiting Income Households Households from Elimination of - Level Constructed Rehabilitated Health and Safety Duration.of Deed Restriction Hazard Very Low Low Moderate 14. If the agency is holding land for future housing development(refer to Line 8b),summarize the acreage(round to tenths,do not report square footage),zoning,date of purchase,and the anticipated start date for the housing development. No.of Purchase Estimated Date Site Name/Location* Acres Zoning Date Available Comments 11695 Canal St .66 R3 5/12/2009 Unknown Ten-unit condominium Please attach a separate sheet of paper listing any additional sites not reported above. 15. Section 33334.13 requires agencies which have used the Housing Fund to assist mortgagors in a homeownership mortgage revenue bond program,or home financing program described in p gr g p gr that Section,to provide the following information: a. Has your agency used the authority related to defmitions of income or family size adjustment factors provided in Section 33334.13(a)? Yes❑ No ❑ Not Applicable b. Has the agency complied with requirements in Section 33334.13(b)related to assistance for very low-income households equal to twice that provided for above moderate-income households? California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Pape 7 of 15 QS Area Yes❑ No ❑ Not Applicable California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 8 of 15 9E 11U ea 16. Did the Agency use non-LMIHF funds as matching funds for the Federal HOME or HOPE program during the reporting period? YES ❑ NO If yes,please indicate the amount of non-LMIHF funds that were used for either HOME or HOPE program support. HOME$ HOPE$ I 17. Pursuant to Section 33080.4(a)(11),the agency shall maintain adequate records to identify the date and amount of all LMIHF deposits and withdrawals during the reporting period. To satisfy this requirement,the Agency should keep and make available upon request any and all deposit and withdrawal information. DO NOT SUBMIT ANY DOCUMENTS/RECORDS. Has your agency made any deposits to or withdrawals from the LMIHF? Yes ® No If yes,identify the document(s)describing the agency's deposits and withdrawals by listing for each document,the following(attach additional pages of similar information below as necessary): Name of document(e.g.ledger,journal,etc.): Trial Balance Name of Agency Custodian(person): Bernie Simon,Finance Director Custodian's telephone number: (909)430-2216 Place where record can be accessed: Finance Department,City of Grand Terrace Name of document(e.g.ledger,journal,etc.): Name of Agency Custodian(person): Custodian's telephone number: Place where record can be accessed: 18. Use of Other(non Low-Mod Funds)Redevelopment Funds for Housine Please briefly describe the use of any non-LMIHF redevelopment funds(i.e.,contributions from the other 80%of tax increment revenue or other non Low-Mod funds)to construct,improve,assist,or preserve housing in the community. N/A 19. Sueeestions/Resource Needs Please provide suggestions to simplify and improve future agency reporting and identify any training,information,and/or other resources,etc.that would help your agency to more quickly and effectively use its housing or other funds to increase, improve,and preserve affordable housing? None i i 20. Annual Monitorine Reports of Previously Completed Affordable Housine Proiects/Proerams(H&SC 33418) Were all Annual Monitoring Reports received for all prior years'affordable housing projects/programs? Yes ® No, ❑ California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 9 of 15 �7 Area 22.Footnote area to provide additional information. Califomia Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 11 of:15 AA Area 23. Accounting for SERAF REPAYMENTS -AGENCY WIDE,ALL YEARS Instructions: •For FY2009-10: Add amounts suspended&loaned then enter total in Col 4. • For FY2010-11:Add the amount loaned(for SERAF payment only)to the remaining balance in Col 4 from FY2009-10.,then subtract any amount repaid,and enter the net total in Col 4. •For all other fiscal years(up to June 30,2016): subtract the amount of SERAF repaid during each fiscal year from the prior year's remaining balance in Col 4. Continue repaying the Low Mod Fund until the entire amount of any SERAF suspended and/or loaned has been repaid in full,pursuant to the repayment timeframes listed in the Health and Safety Code Sections cited below. Col 1 Col 2 Col 3 Co14 Specify Amount Amount Loaned for Amount SERAF SERAF Balance Suspend SERAF ed payment Fiscal Year of REPAID Remaining ONLY in In FY2009-10 any in each Reporting repayment FY 2009-10 or Fiscal Year In FY2010-11 2009-2010 2010—2011 2011 —2012 2012—2013 2013—2014 2014—2015 in FY2009-10 must be repaid by 6/30/2015 2015—2016 in FY2010-11 must be repaid by I i Suspending Funds to pay SERAF in FY2009-10: - H&SC Section 33334.2(k)(1)(2)(3) Pursuant to the H&SC Section 33334.2(k)(1)(2)(3)agencies are authorized to make SERAF payments by suspending tax increment revenue from being deposited into the Low Mod Funds. Any suspension of funds is limited to Fiscal Year 2009-10 and must be paid back in full to the Low Mod Fund no later than June 30,2015. Borrowing Funds to pay SERAF in FY2009-10 : - H&SC Section 33690(c)(1)(2) Pursuant to H&SC Section 33690(c)(1)(2),For Fiscal Year 2009-10,agencies can pay the SERAF by borrowing funds from the Low Mod Housing Fund,but must pay back all of the borrowed funds no later than June 30,2015. Borrowing Funds to pay SERAF in FY2010-11 : - H&SC Section 33690.5(c)(1)(2) Pursuant to H&SC Section 33690.5(c)(1)(2),For Fiscal Year 2010-11, agencies can pay the SERAF by borrowing funds from the Low Mod Housing Fund,but must pay back all of the borrowed funds no later than June 30,2016. Penalties exist for not repaying SERAF to Low Mod Fund: California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 12 of 15 in( Area Refer to H&SC Sections 33020.5,33331.5,33334.2,33688, 33690,33690.5,33691 and 33692. I I i California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 13 of 15 1M HICa 24 . Proiect Achievement and HCD Director's Award for Housins Excellence Project achievement information is optional but can serve important purposes: Agencies' achievements can inform others of successful redevelopment projects and provide instructive information for additional successful projects. Achievements may be included in HCD's Annual Report of Housing Activities of California Redevelopment Agencies to assist other local agencies in developing effective and efficient programs to address local housing needs. In addition,HCD may select various projects to receive the Director's Award for Housing Excellence. Projects may be selected based on criteria such as local affordable housing need(s)met,resources utilized,barriers overcome,and project innovation/complexity,etc. Project achievement information should only be submitted for one affordable residential project that was completed within the reporting year as evidenced by a Certificate of Occupancy. The project must not have been previously reported as an achievement. To publish agencies' achievements in a standard format, please complete information for each underlined category below addressing suggested topics in a narrative format that does not exceed two pages (see example, next page). In addition to submitting information with other HCD forms to the State Controller, please submit achievement information on a 3.5 inch diskette and identify the software type and version. For convenience, the diskette can be separately mailed to: HCD Policy Division, 1800 3`d Street,Sacramento, CA 95811 or data can be attached to an email and sent to appropriate staff by inquiring of appropriate staffs name and email address by calling 916.445-4728. AGENCY INFORMATION • Project Type(Choose one of the categories below and one kind of assistance representing the prima project type): New/Additional Units(Previously Unoccupied/Uninhabitable): Existing Units(Previously Occupied) - New Construction to own - Rehabilitation of Owner-Occupied - New Construction to rent - Rehabilitation of Tenant-Occupied - Rehabilitation to own - Acquisition and Rehabilitation to Own - Rehabilitation to rent - Acquisition and Rehabilitation to Rent - Adaptive Re-use - Mobilehomes/Manufactured Homes - Mixed Use Infill - Payment Assistance for Owner or Renter - Mobilehomes/Manufactured Homes - Transitional Housing - Mortgage Assistance - Other(describe) - Transitional Housing - Other(describe) • Agency Name: • Agency Contact and Telephone Number for the Project: DESCRIPTION • Project Name • Clientele served[owner,renter,income group,special need(e.g.large family or disabled),etc.] • Number and type of units and location,density,and size of project relative to other projects,etc. • Degree of affordability/assistance rendered to families by project,etc. • Uniqueness(land use,design features,additional services/amenities provided,funding sources/collaboration,before/after project conversion such as re-use,mixed use,etc.) • Cost(acquisition,clean-up,infrastructure,conversion,development,etc.) HISTORY • Timeframe from planning to opening • Barriers/resistance(legal/fmancial/community,etc.)that were overcome • Problems and creative solutions found • Lessons learned and/or recommendations for undertaking a similar project AGENCY ROLE AND ACHIEVEMENT • Degree of involvement with concept,design,approval;financing,construction,operation,and cost,etc. • Specific agency and/or community goals and objectives met,etc. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) Page 14 of 15 102 i area ACHIEVEMENTEXAMPLE . i Proiect Type: NEW CONSTRUCTION-OWNER OCCUPIED Redevelopment Agency Contact: Name(Area Code)Telephone# Project/Program Name: Project or Program Description During the reporting year,construction of 12 homes was completed. Enterprises, which specializes in community self-help projects,was the developer, assisting 12 families in the construction of their new homes. The homes took 10 months to build. The families'work on the homes was converted into "sweat equity" valued at$15,000. The first mortgage was from CHFA. Families were also given an affordable second mortgage. The second and third mortgage loans were funded by LMIHF', and HOME funds. History The (City or County struggled for several years over what to do about the of area. The tried to encourage development in the area by rezoning a large portion of the area for multi-family use, and twice attempted to create improvement districts. None of these efforts were successful and the area continued to deteriorate, sparking growing concern among city officials and residents. At the point that the Redevelopment Agency became involved,there was significant ill will between the residents of the and the(City or County). The introduced the project in with discussions of how the . Agency could become involved in improving the blighted residential neighborhood centering on This area is in the core area of town and was developed with disproportionately narrow, deep lots,based on a subdivision plat laid in 1950. Residents built their homes on the street frontages of and leaving large back-lot areas that were landlocked and unsuitable for development,having no access to either avenue. The Agency worked with 24 property owners to purchase portions of their properties. Over several years, the Agency purchased enough property to complete a tract map creating access and lots for building. Other non-profits have created an additional twelve affordable homes. Agency Role The Agency played the central role. The Project is a classic example of successful redevelopment. All elements of blight were present: irregular, land-locked parcels without access; numerous property owners; development that lagged behind that of the surrounding municipal property; high development cost due to need for installation of street improvements,utilities, a storm drain system, and undergrounding of a flood control creek; and a low-income neighborhood in which property sale prices would not support high development costs. The Agency determined that the best j development for the area would be single-family owner-occupied homes. The Agency bonded its tax increment to fund the off-site improvements. A tract map was completed providing for the installation of the street improvements,utilities, storm drainage, and the undergrounding of Creek. These improvements cost the Agency approximately$1.5 million. In lieu of using the eminent domain process, the Agency negotiated with 22 property owners to purchase portions of their property, allowing for access to the landlocked parcels. This helped foster trust and good will during the course of the negotiations. The Project got underway once sufficient property was purchased. California Redevelopment Agencies—Fiscal Year 2009-2010 HCD-C Sch C(Revised:9-28-10) PaEe 15 Of 15 103 SCHEDULE HCD-D1 GENERAL PROJECT/PROGRAM INFORMATION For each different Project/Program (area/name/age or nonage dev/rental or owner), complete a D1 and applicable D2-D7. Examples: 1: 25 minor rehab(Nonagy Dev):Area 1: 15 Owner;Area 2: 6 Rental, & Outside:4 Rental. Complete 3 D-1s, &Ds3-4-5. 2: 20 sub rehab(nonrestricted):Area 3:4 Agy Dev. Rentals; 16 Nonagy Dev. Rentals. Complete 2 D-Is & 2 D-5s. 3: 15 sub rehab(restricted):Area 4: 15 Nonagy Dev, Owner. Complete 1 D-1 & 1 D-3. 4: 10 new(Outside). 2 Agy Dev(restricted Rental), 8 Nonagy Dev(nonrestricted Owner) Complete 2 D-1s, 1 D-4, & 1 D-5. Name of Redevelopment Agency: CRA of the City of Grand Terrace Identify Project Area or specify"Outside": Grand Terrace Comm. Redevelopment Project Area General Title of Housing Project/Program: Market Rate Project/Program Address (optional): Street: City ZIP: 22135 De Berry St Grand Terrace 92313 Owner Name(optional): Total Project/Program Units:# 1 Restricted Units: # Unrestricted Units: # 1 For projects/programs with no RDA assistance do not complete any of below or any of HCD D2-D6. Only complete HCD-D7. Was this a federally assisted multi-family rental project[Gov't Code Section 65863.10(a)(3)]? ❑YES ® NO Number of units occupied by ineligible households (e.g. ineligible income/#of residents in unit)at FY end # Number of bedrooms occupied by ineligible persons (e.g. ineligible income/#of residents in unit)at FY end # Number of units restricted for special needs: (number must not exceed"Total Project Units') # Number of units restricted that are serving one or more Special Needs: # ❑ Check, if data not available (Note: A unit may serve multiple "Special Needs"below. Sum of all the below can exceed the "Number of Units"above) # DISABLED(Mental) # FARMWORKER(Permanent) # TRANSITIONAL HOUSING # DISABLED(Physical) # FEMALE HEAD OF HOUSHOLD # ELDERLY # FARMWORKER(Migrant) # LARGE FAMILY # EMERGENCY SHELTERS (4 or more Bedrooms) (allowable use only with "Other Housing Units Provided-Without LMIHF"Sch-D6 Affordability and/or Special Need Use Restriction Term enter day/month/ye r using digits, e. . 07/01/2002 : Replacement Housing-Units Inclusiona Housin Units Other HousingUnits Provided With LMIHF Without LMIHF Restriction Start Date Restriction End Date Perpetuity Funding Sources: Redevelopment Funds: $ Federal Funds $ State Funds: $ Other Local Funds: $ Private Funds: $ Owner's Equity: $ TCAC/Federal Award: $ TCAC/State Award: $ Total Development/Purchase Cost: $ Check all appropriate form(s).below that will be used to identify all of this Project's/P rog ram's Units: ❑ Replacement Housing Units Inclusionary Units: Other Housing Units Provided: (Sch HCD-D2) ❑ Inside Project Area (Sch HCD-D3) ❑ With LMIHF(Sch HCD-D5) ❑ Outside Project Area(Sch HCD-D4) ❑ Without LMIHF (Sch HCD-136) California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-D1 10� ® No Agency Assistance (Sch HCD-D7) California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-D1 1nS SCHEDULE HCD-D7 HOUSING UNITS PROVIDED (NO AGENCY ASSISTANCE) (units not claimed on Schedule D-2,3,4,5,6) Agency: CRA of the City of Grand Terrace Redevelopment Project Area Name, or"Outside":City of Grand Terrace Redevelopment Project Area Housing Project Name: Market Rate Units NOTE: On this form,only report UNITS NOT REPORTED on HCD-D2 through HCD-D6 for projecdprogram units that have not received anv agency assistance. Agency assistance includes either financial assistance(LMIHF or other agency funds) or nonfinancial assistance(design,planning,etc.)provided by agency staff. In some cases,of the total units reported on HCD DI,a portion of units in the same projecdprogram may be agency assisted(reported on HCD-D2 through HCD-D6) whereas other units may be unassisted by the agency(reported on HCD-D7). The intent of this form is to: (1)reconc•ile any difference between total projecdprogram units reported on HCD-DI compared to rite sum of all the project's/program's units reported on HCD-D2 through HCD-D6, and(2)account for other(nonassisted) housing unitsprovided inside a proiect area that increases the agency's inclusionary obligation. Reporting noweency assisted projects outside a proiect area is optional, if units do not make-up any part of total units reported on HCD-DI. HC'D-D7 Reporting Examples Example 1 (reporting partial units): A new 100 unit project was.built(reported on HCD-Dl,Inside or Outside a project area). Fifty(50)units received agency assistance[30 affordable LMIHF units(reported on either HCD-D2,D3,D4, or D5) and 20 above moderate units were funded with other agency funds(reported on HCD-D6)/. The remaining 50(privately financed and developed market-rate units)must be reported on HCD-D7 to snake up the difference between 100 reported on DI and 50 reported on D2-bti). Example 2 (reporting all units): Inside a project area a condemned,historic property was substantially rehabilitated(multi- family or single--fatnily),funded by tax credits and other private financing without any agency assistance. Check whether Inside or Outside Project Area in completing applicable information below: ® INSIDE Project Area..........Enter the number for each unit type for each applicable activity: ACTIVITY: UNIT TYPE: VLOW LOW MOD AMOD TOTAL ' New Construction Units: > > Substantial Rehabilitation Units: Total Units: > > If agency did not assist any part of proiect Boo-000649 312412010 identify Building Permit Number and Date: BUILDING PERMIT NUMBER BUILDING PERMIT DATE ❑ OUTSIDE Project Area......Enter the number for each unit type for each applicable activity: ACTIVITY: UNIT TYPE: VLOW LOW MOD AMOD TOTAL New Construction Units: Substantial Rehabilitation Units: Total Units: If agency did not assist any part of proiect identify Building Permit Number and Date: BUILDING PERMIT NUMBER BUILDING PERMIT DATE Check all appropriate form(s) listed below that will be used to identify remaining Project Units to be reported: ❑ Replacement Housing Units Inclusionary Units: Other Housing Units Provided: (Sch HCD-D2) ❑ Inside Project Area(Sch HCD-D3) ❑.With LMIHF(Sch HCD-D5) ❑ Outside Project Area (Sch HCD-D4) ❑ Without LMIHF (Sch HCD-D6) Calirornia Redevelopment Agencies-Fiscal Year 2009-2010 HCD-D7 Sch D7(Revised:9-28-10 1 ng SCHEDULE HCD-E CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION BASED ON SPECIFIED HOUSING ACTIVITY DURING THE REPORTING YEAR Agency: CRA of the City of Grand Terrace' Name of Project or Area.(if applicable, list "Outside" or"Summary": Summary Complete this form to report activity separately by project or area or to summarize activity for the!year. Report all new construction and/or substantial rehabilitation units from Forms D2 through D7 that were: (a) developed by the agency and/or(b) developed only in a project area by a nonagency person or entity. PART I [H&SC Section 33413(b)(1)] AGENCY DEVELOPED UNITS DURING THE REPORTING YEAR BOTH INSIDE AND OUTSIDE OF A PROJECT AREA 1. New Units Developed by the Agency 2. Substantially Rehabilitated Units Developed by the Agency 3. Subtotal - Baseline of Aizency Developed Units (add lines 1 &.2) 4. Subtotal of Increased Inclusionary Obligation (Line 3 x 30%) (see Notes 1 and 2 below) 0 5. Very-Low Inclusionary Obligation Increase Units (Line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)1 NONAGENCY DEVELOPED UNITS DURING THE REPORTING YEAR ONLY INSIDE A PROJECT AREA 6. New Units Developed by Any Nonagency Person or Entity 1' 7. Substantially Rehabilitated Units Developed by Any Nonagency,Person or Entity 8. Subtotal- Baseline of Nonagency Developed Units (add lines 6 & 7) 1 t 1 9. Subtotal of Increased Inclusionary Obligation (Line 8 x 15%) (see Notes 1 and 2 below) 10. Very-Low Inclusionary Obligation Increase (Line 9 x 40%) 0 PART III REPORTING YEAR TOTALS 11. Total Increase in Inclusionary Obligation(add lines 4 and 9) 0 12. Very-Low Inclusionary Obligation Increase (add line 5 and 10) (Line 12 is a subset of Line 11) 0 r»rr»sssrrrrrrs►►rssr»rrrr►s►»»srs»r'rr»asassrsrsr»r»s►s»rsrrr»»srrrsrs►rsrssrr»ssr»rs»ssrrrrs»»»r»rrr►»»ssrsrrrrr►rrrr►»arsris NOTES. 1. Section 33413(b)(1), (2), and(4) require agencies to ensure that applicable percentages (30% or 15%) o all (market-rate and affordable) "new and substantially rehabilitated dwelling units"are made available at affordable housing cost within 10 year planning periods. Market-rate units: units not assisted with low-mod funds and jurisdiction does not control affordability restrictions. Affordable units:.'units generally restricted for the longest feasible time beyond the redevelopment plan's land use controls and jurisdiction controls affordability restrictions. Agency developed units: market-rate units can not exceed 70 percent and affordable units must be at least 30 percent; however, all units assisted with low-mod funds must be affordable. Nonagency developed (protect area) units: market-rate units can not exceed 85 percent and affordable units must be at least 15 percent. j 2. Production requirements may be met on a project-by-project basis or in aggregate within each 10 year planning period. The percentage of affordable units relative to total units required within each 10 year planning period may be calculated as follows: AFFORDABLE units = Market-rate x (30 or.15) TOTAL units= Market-rate or Affordable (.70 or.85) (.70 or.85) (30 or.15) California Redevelopment Agencies-Fiscal Year 2009-2010 HCD-E Sch E-1(Revised:9-28-10) i 1 n7 i f r �h� a 41 AL iaLiFonuia AGENDA REPORT MEETING DATE: January 25, 2011 Council Item ( X ) CRA Item (X ) TITLE: Town Square Project Update PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Receive an update on the Stater Bros. Market construction and i scheduling for public infrastructure improvements. BACKGROUND AND DISCUSSION: A representative from'Stater Bros. Market, Mike Slaton, will provide a verbal update regarding the progress of construction at their Barton Road site. In addition to the private construction, the Agency's public improvement project is now open for: public bidding and is targeted for bid award within 45 days. These improvements include: Barton Road: street improvements, including turn lane, traffic signalization, and lane' restriping at the I-215 interchange; Michigan Street: additional right turn lane (northbound), lane striping; and, La Paix Street: street and landscaping improvements. The engineer's estimate for the public project is $560,000, which will be funded by impact fees collected and the Agency. The public improvements will serve new commercial development along the Barton business corridor and will be completed by July 2011. An estimated schedule of the two projects is as follows: Grading started at Stater Bros. site November 2010 Public bidding for public improvements January-February 2011 Market construction begins February 2011 Award contract for public improvements March 2011 Complete public improvements July 2011 Stater Bros. Market opening August 2011 FISCAL IMPACT: There would be no fiscal impact associated with this action. CRA AGENDA ITEM NO.� 1 Respectfully submitted, CAL, J yce Powers Community and Economic Development Director Manager Approval: Betsy kf. Adains City Manager ,00 l 3TI A00.3.3A AR'.) vchlist Voucher List Page: 1 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66248 1/6/2011 004587 MANAGED HEALTH NETWORK 3200023322 JANUARY MHN INSURANCE 10-175-142-000-000 10.33 10-180-142-000-000 6.00 10-370-142-000-000 11.32 10-380-142-000-000 5.00 10-440-142-000-000 133.20 10-450-142-000-000 11.98 21-175-142-000-000 6.66 32-370-142-000-000 7.32 34-400-142-000-000 6.63 34-800-142-000-000 2.66 10-185-142-000-000 6.66 32-200-142-000-000 11.66 10-625-110-000-000 4.33 16-175-142-000-000 14.64 10-120-142-000-000 10.00 10-125-142-000-000 10.00 10-140-142-000-000 15.00 10-172-142-000-000 6.33 Total : 279.72 66249 1/6/2011 006772 STANDARD INSURANCE COMPANY Jan 00607869 01 JANUARY- LIFE AND DISABILITY INSURANCE Page: 1 COUNCIL AGENDA ITEM NO.�� vchlist Voucher List Page: 2 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66249 1/6/2011 006772 STANDARD INSURANCE COMPANY (Continued) 10-120-142-000-000 10.42 10-125-142-000-000 10.42 10-140-142-000-000 15.63 10-172-142-000-000 6.59 10-175-142-000-000 10.44 10-180-142-000-000 6.26 10-370-142-000-000 10.31 10-380-142-000-000 5.21 10-440-142-000-000 48.65 10-450-142-000-000 5.56 21-175-142-000-000 6.63 32-370-142-000-000 6.77 34-400-142-000-000 6.87 34-800-142-000-000 2.78 32-200-142-000-000 12.15 10-185-142-000-000 6.95 10-625-110-000-000 3.95 16-175-142-000-000 15.26 10-022-66-00 1,165.70 Total : 1,356.55 66250 1/6/2011 006772 STANDARD INSURANCE COMPANY 160-513170000( JANUARY EMPLOYEE/DEPENDENT DENTAL INS 10-022-61-00 1,228.92 Total : 1,228.92 66251 1/6/2011 010737 WESTERN DENTAL SERVICES INC. 002484 7730 Ja. JANUARY EMPLOYEE/DEPENDENT DENTAL INS 10-022-61-00 73.62 Total : 73.62 66252 1/6/2011 011092 METLIFE SBC KM05754034 00 JANUARY EMPLOYEE/DEPENDENT DENTAL INS 10-022-61-00 185.72 10-180-142-000-000 50.00 Total : 235.72 66253 1/6/2011 010764 SAFEGUARD DENTAL &VISION 3498272 JANUARY EMPLOYEE/DEPENDENT VISION INS Page:. 2 vchlist 41�ucher List Page: 3 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66253 1/6/2011 010764 SAFEGUARD DENTAL&VISION (Continued) 10-022-61-00 119.67 10-180-142-000-000 14.27 - Total : 133.94 66254 1/12/2011 003152 HARPER & BURNS LLPN Nov 2010 November Leqal Services 32-200-251-000-000 3,343.88 10-160-250-000-000 3,343.87 Total : 6,687.75 66255 1/12/2011 001907 COSTCO#478 0478 10 0014 8,' C. CARE SUPPLIES 10-440-220-000-000 122.35 Total : 122.35 66256 1/12/2011 006720 SO.CA.EDISON COMPANY Dec 2010 December Enerqy Usage 16-510-238-000-000 5,587.17 10-805-238-000-000 645.71 26-600-238-000-000 49.80 26-601-238-000-000 41.50 26-602-238-000-000 58.10 Total : 6,382.28 66257 1/12/2011 006730 SO.CA.GAS COMPANY Dec 2010 DECEMBER CNG FUEL/NATURAL GAS USAGE 10-190-238-000-000 663.65 10-440-238-000-000 147.66 10-175-272-000-000 7.80 10-440-272-000-000 2:60 34-800-272-000-000 2.60 Total : 824.31 66258 1/12/2011 010218 CHEVRON &TEXACO CARD SERVICES 28191975 December Vehicle Fuel 10-175-272-000-000 356.47 10-440-272-000-000 61.12 34-800-272-000-000 58.45 Total : 476.04 66259 1/12/2011 010812 LOWE'S COMMERCIAL SERVICES 914614 MAINTENANCE SUPPLIES Page: 3 vchlist Voucher List Page: 4 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66259 1/12/2011 010812 LOWE'S COMMERCIAL SERVICES (Continued) 10-450-245-000-000 40.78 10-440-245-000-000 258.03 914843 Faucet-C. Care 10-440-245-000-000 12.55 Total : 311.36 66260 1/12/2011 003210 DEPT 32-2500233683 2010077 MAINT SUPPLIES 10-195-245-000-000 54.15 10-440-245-000-000 44.65 - - - - 10-175-218-000-000 9.69 Total : 108.49 66261 1/12/2011 006778 STAPLES J713350001 Digital Camera-Community Special Events 23-200-12-00 237.48 Total : 237.48 66262 1/12/2011 010664 SHELL FLEET MANAGEMENT 8000209687101 December Vehicle Fuel 10-175-272-000-000 530.06 Total : 530.06 66263 1/12/2011 011138 SPARKLETTS 9637116 010111 December Bottled Water 10-190-238-000-000 39.03 10-450-238-000-000 2.08 10-440-238-000-000 52.99 Total : 94.10 66264 1/13/2011 010626 MONTES, MARIA 01132011 Cash for Animal Clinic Cash Box 10-200-15 300.00 Total : 300.00 66265 1/13/2011 011110 TIME WARNER CABLE Jan 8448400...7: JAN/FEB CABLE & INTERNET SRV-SR CNTR 10-805-238-000-000 121.28 Total : 121.28 66266 1/25/2011 010678 ARCHIVE MANAGEMENT SERVICE 0144479 August Archive Tape Storage 10-140-250-000-000 55.00 10-380-250-000-000 55.00 Page: 4 vchlist voucher List Page: 5 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66266 1/25/2011 010678 ARCHIVE MANAGEMENT SERVICE (Continued) Total : 110.00 66267 1/25/2011 011031 CINTAS CORPORATION#150 150278298 C. CARE PAPER GOODS & SUPPLIES 10-440-228-000-000 172.63 150287522 C. CARE PAPER GOODS & SUPPLIES 10-440-228-000-000 190.03 Total : 362.66 66268 1/25/201.1 001840 CITY OF COLTON 001032 October Flow Meter Rental 21-573-704-000-000 200.00 Total : _ 200.00 66269 1/25/2011 010866 CIVIC PLUS 86465 JANUARY WEBSITE MAINT FEE 10-125-250-000-000 633.25 Total : 633.25 66270 1/25/2011 011029 COBRA SIMPLE 97 DECEMBER COBRA ADMIN FEE 10-190-220-000-000 50.00 Total : 50.00 66271 1/25/2011 011166 CORNERSTONE RECORDS MANAGEME10152467 DECEMBER ARCHIVE TAPE STORAGE 10-140-250-000-000 55.00 10-380-250-000-000' 55.00 Total : 110.00 66272 1/25/2011 001930 DAILY JOURNAL CORPORATION B2014420 DECEMBER PUBLIC NOTICE 10-125-230-000-000 74.80 Total : 74.80 66273 1/25/2011 010711 DANKA FINANCIAL SERVICES 73741526 JANUARY E-STUDIO 350 TOSHIBA COPIER 10-172-246-000-000 79.78 10-175-246-000-000 79.79 Total : 159.57 66274 1/25/2011 002740 FRUIT GROWERS SUPPLY 90668536 MAINT SUPPLIES 10-450-245-000-000 11.59 90669346 MAINT SUPPLIES 10-450-245-000-000 26.91 Page: 5 vchlist Voucher List Page: 6 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66274 1/25/2011 002740 FRUIT GROWERS SUPPLY (Continued) Total : 38.50 66275 1/25/2011 002867 GOLDEN PROTECTIVE SERVICES 144006 RUBBER GLOVES 10-440-228-000-000 86.78 Total : 86.78 66276 1/25/2011 011102 GONZALEZ WATER TRUCK 110 Barton & Honey Hill Emeq-Water Truck 10-190-702-001-000 360.00 Total : 360.00 66277 1/25/2011 010164 GREAT-WEST PR End 1/7/201, Contributions for PR End 1/7/11 10-022-63-00 4,758.03 Total : 4,758.03 66278 1/25/2011 010632 HIGH TECH SECURITY SYSTEMS 94594 FEB. SEC CAMERA MAINT AGREEMENT 10-195-247-000-000 20.00 10-450-246-000-000 60.00 Total : 80.00 66279 1/25/2011 003216 HOUSTON & HARRIS PCS, INC. 10-16325 12/10/2010 HONEY HILL EMERGENCY 21-573-602-000-000 900.00 10-16339 Dec 22-24-Orangewood Ct Emergency 10-190-702-001-000 7,082.50 10-16340 12/22 Honey Hill Emerq-Inspect Sewerline 10-190-702-001-000 437.50 Total : 8,420.00 66280 1/25/2011 003224 HYDRO-SCAPE PRODUCTS INC. 06661925-00 Sandbags-Dec 2010 Storm Damaqe 10-190-702-001-000 305.85 Total : 305.85 66281 1/25/2011 002727 J.R. FREEMAN COMPANY 454184-0 OFFICE SUPPLIES 10-125-210-000-000 121.69 Total : 121.69 66282 1/25/2011 003850 JANI-KING OF CA., INC. LAX01110989 JANUARY C. CARE JANITORIAL SERVICES 10-440-244-000-000 975.00 Page: 6 vchlist voucher List Page: 7 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66282 1/25/2011 003850 JANI-KING OF CA., INC. (Continued) Total : 975.00 66283 1/25/2011 010773 KELLAR SWEEPING INC. 5601 NOVEMBER STREET SWEEPING SERVICES 16-900-254-000-000 3,150.00 5658 DECEMBER STREET SWEEPING SERVICES 16-900-254-000-000 4,200.00 Total : 7,350.00 66284 1/25/2011 010449 KONICA MINOLTA BUS. SOLUTIONS 216611100 3rd Qtr Copier Maint-Toshiba E-studio 10-172-246-000-000 37.50 10-175-246-000-000 37.50 Total : 75.00 66285 1/25/2011 010984 MERRILL, LYNN 01032011 ENERGY GRANT PROJ ADMIN/MANAGEMENT 10-195-720-000-000 990.00 Total : 990.00 66286 1/25/2011 011099 ORANGE COUNTY STRIPING SVC 0043642 School Bus Siqns-GT Rd Project 46-900-310-003-000 327.00 Total : 327.00 66287 1/25/2011 005586 PETTY CASH 01122011 Replenish C.Care Petty Cash 10-440-220-000-000 21.74 10-440-223-000-000 73.67 10-440-228-000-000 52.84 Total : 148.25 66288 1/25/2011 011074 REDFLEX TRAFFIC SYSTEMS 29427 November Contract Services 17-900-255-000-000 4,412.61 Total : 4,412.61 66289 1/25/2011 011137 REPLACEMENT BENEFIT FUND RBF2011-35 2011 Replacement Charges-T. Schwab 10-017-00-00 21,581.16 Total : 21,581.16 66290 1/25/2011 010171 REPUBLIC ITS 1210112 DECEMBER ROUTINE SIGNAL MAINTENANCE 16-510-255-000-000 451.68 Page: 7 vchlist Voucher List Page: 8 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66290 1/25/2011 010171 REPUBLIC ITS (Continued) Total : 451.68 66291 1/25/2011 011167 RITRON WIRELESS SOLUTIONS INC 2752218 REPAIR JBS-146D SN: B6153 10-808-246-000-000 82.00 Total : 82.00 66292 1/25/2011 006341 ROSENOW SPEVACEK GROUP INC. 0025941 December Financial Admin 33-140-250-000-000 4,080.00 Total : 4,080.00 66293 1/25/2011 006557 S.B. COUNTY DEPT. PUBLIC WORKS FC 087/11 _ 3RD QTR NPDES FLOOD CONTROLL AGRMNT 10-625-220-000-000 1 3,725.00 Total : 3,725.00 66294 1/25/2011 006510 S.B. COUNTY INFORMATION 10709 November Pager Access 10-175-240-000-000 9.00 Total : 9.00 66295 1/25/2011 006531 S.B. COUNTY SHERIFF 10439 JANUARY LAW ENFORCEMENT SERVICES 14-411-256-000-000 8,333.00 10-410-255-000-000 4,524.00 10-410-256-000-000 154,136.00 Total : 166,993.00 66296 1/25/2011 006685 SOFTERWARE INC W8088-2011 2011 Software Renewal-C.Care 10-440-700-000-000 360.00 Total : 360.00 66297 1/25/2011 006898 SYSCO FOOD SERVICES OF L.A. 1010513685 C. CARE FOOD & SUPPLIES 10-440-220-000-000 526.73 1011006598 C. CARE FOOD & SUPPLIES 10-440-220-000-000 9.00 1011216783 C. CARE FOOD & SUPPLIES 10-440-220-000-000 447.48 2113650 Returned-Item Not Ordered 10-440-220-000-000 -14.50 Total : 968.71 Page: 8 i vchlist voucher List Page: 9 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66298 1/25/2011 007220 UNDERGROUND SERVICE ALERT 1220100277 December Diq Alert Tickets 16-900-220-000-000 24.00 Total : 24.00 66299 1/25/2011 011168 UNIVAR USA INC RV-548129 Complete Bee Suit 10-450-245-000-000 136.10 Total : 136.10 66300 1/25/2011 007539 VALLEY TIRE COMPANY 93732 2 Tires for EOC Trailer 10-808-246-000-000 139.39 Total : 139.39 66301 1/25/2011 007854 WESTERN EXTERMINATORS CO 536570 DECEMBER PEST CONTROL SERVICES 10-195-245-000-000 125.00 10-805-245-000-000 .33.00 Total : 158.00 66302 1/25/2011 007920 WILLDAN 002-10794 A NOVEMBER INSPECTION SRVS 10-172-250-000-000 850.00 002-10794 B NOVEMBER PLAN CHECK SRVS 10-172-250-000-000 1,155.00 002-10795 Nov. Inspection-Pico St Improvements 23-302-76-01 400.00 002-10796 NOVEMBER PLAN CHECK SERVICES 10-175-255-000-000 5,520.00 002-10835 A DECEMBER INSPECTION SERVICES 10-172-250-000-000 1,020.00 002-10835 B DECEMBER PLAN CHECK SERVICES 10-172-250-000-000 330.00 002-10836 DEC PW OBSERVATION-STATER BROS 10-172-250-000-000 1,550.00 002-10837 DEC ENGINEERING SERVICES-STATER BROS 10-175-255-000-000 3,460'.00 Total : 14,285.00 66303 1/25/2011 007987 XEROX CORPORATION 052518343 DECEMBER XEROX WORKCENTRE 5755 Page: 9 vchlist Voucher List Page: 10 01/18/2011 4:07:46PM CITY OF GRAND TERRACE Bank code : bofa Voucher Date Vendor Invoice Description/Account Amount 66303 1/25/2011 007987 XEROX CORPORATION (Continued) 10-190-700-000-000 308.10 10-190-212-000-000 248.65 Total : 556.75 66304 1/25/2011 007987 XEROX CORPORATION 052518342 DECEMBER LEASE XEROX CC265H 10-190-700-000-000 . 294.34 10-190-212-000-000 148.69 Total : 443.03 57 Vouchers for bank code : bofa Bank total : 263,645.78 57 Vouchers in this report Total vouchers : 263,645.78 Page: 10 t City of Grand Terrace Warrant Register Index FD No. Fund Name Dept No. Department Name General Account Numbers 10 GENERAL FUND 110 CITY COUNCIL 110 SALARIES/WAGES 11 STREET FUND 120 CITY MANAGER 139 EMPLOYEES'BENEFIT PLAN 12 STORM DRAIN FUND 125 CITY CLERK 140 RETIREMENT 13 PARK FUND 140 FINANCE 142 HEALTHILIFE INSURANCE 14 AB 3229 COPS FUND 160 CITY ATTORNEY 143 WORKERS'COMPENSATION 15 AIR QUALITY IMPROVEMENT FUND 172 BUILDING&SAFETY 138/141 MEDICARE/SUI 16 GAS TAX FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE 17 TRAFFIC SAFETY FUND/TDA FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS 19 FACILITIES DEVELOPMENT FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 190 GENERAL.GOVERNMENT(NON-DEPT) 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 235 COMMUNICATIONS 22 COMMUNITY DEVELOPMENT BLOCK GRANT 370 COMMUNITY&ECONOMIC DEV 238-239 UTILITIES 26 LSCPG/LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 240-242 RENTS&LEASES 44 BIKE LANE CAPITAL FUND 410 LAW ENFORCEMENT 245-246 MAINT BLDG GRNDS EQUIPMNT 46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 250-251 PROFESSIONAL SERVICES 47 BARTON RD.BRIDGE PROJECT 440 CHILD CARE 255-256 CONTRACTUAL SERVICES 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 260 INSURANCE&SURETY BONDS 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 265 MEMBERSHIPS&DUES 34 CRA-LOW&MOD HOUSING 801 PLANNING COMMISSION 268 TRAINING 802 CRIME PREVENTION UNIT 270 TRAVEUCONFERENCES/MTGS 804 HISTORICAL&CULTURAL COMM. 272 FUEL&VEHICLE MAINTENANCE 805 SENIOR CITIZENS PROGRAM 570 WASTEWATER TREATMENT 807. PARKS&REC COMMITTEE 33-300 DEBT SERVICE 808 EMERGENCY OPERATIONS PROG. 7XX FACILITIES IMPRV(NO CIP) 700 COMPUTER-RELATED - 701 VEHICLES&EQUIPMENT I certify that to the best of my knowledge, the afore-listed checks for payment of City and Community Redevelopment Agency liabilities have been audited by me and are necessary and appropriate for the operation of City and Agency. Bernie Simon, Finance Director PEWIN CITYCOUNCILAPRIIAVAL CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR MEETING -JANUARY 11,2011 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,on January 11, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Mayor Lee Ann Garcia, Mayor Pro Tem Darcy McNaboe, Councilmember Bernardo Sandoval, Councilmember Betsy M. Adams, City Manager Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community&Economic Development Director Richard Shields, Building& Safety Director John Harper, City Attorney Sgt. Carlos Espinoza, San Bernardino County Sheriff's Department Rick McClintock, San Bernardino County Fire Department ABSENT: None The City Council meeting was opened with Invocation by Ken Wolf, Calvary the Brook Church, followed by the Pledge of Allegiance led by Councilman Bernardo Sandoval. ITEMS TO DELETE -None SPECIAL PRESENTATIONS -None CONSENT CALENDAR CC-2011-01 MOTION BY MAYOR PRO TEM GARCIA,SECOND BY COUNCILMEMBER MCNABOE, CARRIED 4-0, to approve the following Consent Calendar Items: 3A. Check Register No. Dated 01-11-2011 i 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of Minutes of 12-14-2010, 12-21-2010 & 12-27-2010 3D. Historical & Cultural Activities Committee Minutes of 11/01/2010 .3E. Vacancy on the Planning Commission PUBLIC COMMENT COUNCIL AGENDA ITEM I40.3(;, Council Minutes 01/11/2011 Page 2 Jerry Almendarez, Superintendent Colton Joint Unified School District,introduced himself and congratulated the newly elected officials. He extended an invitation to the City Council members to tour the new high school facilities. He stated that he is looking forward to working with the City. Patricia Farlev, 12513 Michigan Street, stated that she does not have buddies that will support whatever she says without checking on it. She indicated that the whole reason she got involved in what was going on in Grand Terrace was because she was alarmed at things that were going on in the City in mismanagement of the City from not following the law and incompetence at City Hall. She was desperate to find someone that knew the law,who was not bias, and truthful and she feels that it is hard to find. She has watched people be slandered in the City because they went to City Hall and actually got the facts. These facts have been presented over and over again to Staff, Council Members and Planning Commissioners. She feels that the City needs to clean house and have un-bias fair people that listen and have the intelligence and skills to understand and the willingness and ability to work together and solve this. She has always felt that the kids in Grand Terrace should not have to go to Colton. She feels that the City has allowed the City to be damaged by developers,the School District to be damaged by improper information and by not following the law and feels that this is why there has been a problem. She is concerned about a high school that is built on contaminated land, poor circulation and a stadium that will damage the area that is a nice residential area. She has also found that the Blue Mountain paper is run by a special group with a special agenda and should not be pretending to represent the interest of the City and that it is being controlled by people with their own personal agenda. She insists that the City put a stop to it. Virginia Harford, 11825 Arliss Way, made a public apology to City Attorney John Harper for the statements that she has made blaming him for something that wasn't his doing. She also indicated that this information was brought to her attention by former Councilmember Bea Cortes. Don Larkin, 12168 Mt. Vernon Avenue #89, congratulated the newly elected Councilmembers. Reported that he just returned from Afghanistan and presented the City with the flag that flew over his base in Afghanistan. He would like people to remember that there are wars going on and would like people to remember the sacrifice and service of the men and women of the armed services. He suggested having a monument at the proposed new park for the veterans of Grand Terrace. Debra Hurst, 22950 Orangewood Court, stated that she has some questions regarding the check register and requested an explanation of the following Voucher Numbers: # 66161, #66177, #66190, #66222. Nick Calero, San Bernardino County Representative for Supervisor Neil Derry, wanted to Council Minutes 01/11/2011 Page 3 let everyone know about the Vision's Project. He reported that the County of San Bernardino along with SANBAG is hosting a series of town hall style workshops and a web survey. The purpose of this is to gather information, opinions and input on where residents feel the County needs to go. A Vision Draft Document will give direction to the Board of Supervisors on how to move the County forward in the years to come. Information is available on the City's website and the County's website. COUNCIL REPORTS -None PUBLIC HEARINGS -None UNFINISHED BUSINESS -None NEW BUSINESS 8A. Appointment to Fill the Vacant Seat on the City Council Which Occurred as a Result of the November 2010 Election. Patricia Farley, 12513 Michigan Street, stated that she has spent a lot of time, effort and money to try and work with those that she found to be honest, smart,able to understand the law,fair and not having their own personal agenda. She found very few people. She stated that she supported Mayor Stanckiewtiz and Councilman Sandoval for this past election not because they are friends of hers or because they will vote for everything that she wants because they may not. She has a problem when people won't listen to facts and look at documents. She is fed-up with being told how much you care and still don't do anything with the information that was provided. She feels that this is the chance to clean up the City with people without baggage. She feels that if the Council is concerned they will follow the law and look at documents and will have the intelligence and the ability to do something about it. She feels that Sylvia Robles has the.skills that the City desperately needs. She feels that the City does not have the right to appoint anyone else other than Sylvia. She feels that Roxanne could possibly do the job as well. DeDe Sternberg, 12215 Michigan Street, stated that she was ill and was unable to get her application in on time to be considered to fill the vacancy on the Council. I Bobbie Forbes, 11850 Burns Avenue, stated that she is pleased to see that there are several people that are interested in filling the vacancy on the Council. She stated that she would like to see Doug Wilson be appointed. Jeffrey McConnell,21758 Walnut Avenue,stated that the Council is interviewing applicants for a very important job. He feels that the person that is chosen should be the one that has the most experience. He questioned if Council or Staff verified any of the information that Council Minutes 01/11/2011 Page 4 was provided on the application. He feels that the Council needs to carefully consider who they appoint to fill the vacant seat. Mayor Stanckiewitz drew names for the order in which the individuals will be interviewed. The following is the order: 1. Thomas Schwab ' 2. Andrew Anaya 3. William Hussey 4. Fabian Carballo 5. Roxanne Williams 6. Lloyd Dodd 7. Amanda Betten 8. Doug Wilson 9. Gene Hays 10. Ryan Stephens 11. Ken Stewart 12. Herman Hilkey 13. Sylvia Robles It was the decision of the Council that the Mayor and Council would ask the following questions: - Mayor Stanckiewiz - Circumstances outside the City's control can and have impacted dramatically the City's budget. With your review of the City's budget,how the City receives its funding and where its expenses are,what approach would you take as a Council Member to balance the budget? Mayor Pro Tem Garcia-What do you see the role of the City Council as a governing body? What do you see as the roll of an individual City Council Member? What do you see as the role of Staff? Councilmember McNaboe - Look 10 years into the future and describe what you want the City to look like and why. How does this fit with the City's General Plan and the Barton Road Specific Plan? Councilmember Sandoval- What do you see as the biggest challenges facing this city next yea'? Each individual will have two minutes to answer each question and once all of the questions have been answered they will be given two minutes to tell the Council anything else they would like to tell them. I Council Minutes O1/11/2011 Page 5 j I Each individual was interviewed by the Council. CC-2011-02 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY MAYOR STANCKIEWITZ, FAILED 2-2 (MAYOR PRO TEM GARCIA AND COUNCILMEMBER MCNABOE VOTED NO,to appoint Sylvia Robles to fill the vacant seat on the City Council. CC-2011-03 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY MAYOR STANCKIEWITZ, FAILED 2-2 (MAYOR PRO TEM GARCIA AND COUNCILMEMBER MCNABOE VOTED NO),to appoint Amanda Betten to fill the vacant seat on the City Council. CC-2011-04 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER MCNABOE,FAILED 2-2 (MAYOR STANCKIEWITZ AND COUNCILMEMBER, SANDOVAL VOTED NO),to appoint Herman Hilkey to fill the vacant seat on the City Council. Councilmember McNaboe Nominated Gene Hays to Fill the Vacant Seat on the City Council,Motion Failed Due to a Lack of a Second. Mayor Pro Tem Garcia Nominated Roxanne Williams to Fill the Vacant Seat on the City Council,Motion Failed Due to a Lack of a Second. CC-2011-05 MOTION BY MAYOR STANCKIEWITZ, SECOND BY COUNCILMEMBER SANDOVAL, FAILED. 2-2, (MAYOR PRO 'TEM GARCIA AND COUNCILMEMBER MCNABOE VOTED NO), to appoint Bill Hussey to fill the Vacant Seat on the City Council. Councilmember McNaboe Nominated Ryan Stephens to Fill the Vacant Seat on the City Council, Motion Failed Due to a Lack of a Second. CC-2011-06 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY MAYOR , STANCKIEWITZ, FAILED 2-2 (MAYOR PRO TEM GARCIA AND COUNCILMEMBER MCNABOE VOTED NO),to nominate Fabian Carballo to fill the vacant seat on the City Council. CC-2011-07 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY COUNCILMEMBER MCNABOE,CARRIED 3-1 (MAYOR PRO TEM GARCIA VOTED NO),to change the rules to allow the Council to re-nominate an individual that has already been nominated and reconsider Gene Hays. CC-2011-08 MOTION BY COUNCILMEMBER MCNABOE, SECOND BY Council Minutes 01/11/2011 Page 6 COUNCILMEMBER SANDOVAL,CARRIED 3-1 (MAYOR PRO TEM GARCIA VOTED NO),to appoint Gene Hays to fill the vacant seat on the City Council. CLOSED SESSION -None Mayor Stanckiewitz adjourned the meeting at 9:37 p.m.,until the next City Council Meeting which is scheduled to be held on Thursday, January 13, 2011 at 6:00 p.m. CITY CLERK of the City of Grand Terrace MAYOR of the City of Grand Terrace I CITY OF GRAND TERRACERECEIVED EMERGENCY OPERATIONS COMMITTEE Regular Meeting JAN 0 5 2011 MINUTES December 7,,2010 CITY OF GRAND TERRACE CITY CLERK'S DEPARTMENT The Grand Terrace Emergency Operations Committee met at the regular time at the Emergency Operations Center at 22795 Barton Road, Building 3. The meeting was called to order by Interim chairperson, Randy Halseth at 6:00 p.m. Agendas and minutes were distributed. MEMBERS PRESENT: Randy Halseth, Debra Hurst,JoAnn Johnson,Vic Pfenninghausen, Susan Taylor,Jim Vert,and Lew Neeb. MEMBERS ABSENT: Glen Nichols and Hanni Bennett . CITY STAFF: Matt W irz GUESTS PRESENT/INTRODUCTIONS: Pete Parsons. CORRESPONDANCE/COMMUNICATIONS: None APPROVAL OF THE December 7,2010 AGENDA-with a motion by Lew Neeb and Jim Vert, the agenda was approved. APPROVAL OF MINUTES of November 1,2010-with a motion by Randy Halseth and a second by Lew Neeb,the minutes were approved as corrected. LIAISON REPORT: Matt Wirz. Matt announced that the new Council and Mayor will take office next week. A. City Events-the City's 32nd Birthday party will be organized by the Women's Club. B. Randy asked if there will be a Volunteer Appreciation dinner in 2011 and Matt said he would check with the.City Manager. C. The City Council will need to decide whether appoint the vacant Council seat or hold an election. D. The holiday schedule for the city has changed. City Hall will be closed from December 24'h through January P. 1 EQUIPMENT AND FACILITIES REPORT: Randy Halseth and Vic Pfenninghausen A. Radio-Vic reported that he has been working on the broadcast radio getting the system to work. B. Pete Parsons introduced himself and stated that Vic does the technical part of the process and Pete is a radio announcer and copywriter. fie also requested more content and more voices to record messages. fle said that if we give him the information we want broadcasted, he will write and ;produce 3-4 messages all worded differently but still have the same end result. C. Vic has not heard back from the FCC vet regarding the Hollywood station interference on our :amateur radio. fie has not heard any interference recently. COUNCIL AGENDA ITEM NO.J1 1 D. Vic stated that, as the first request for new tires on the small trailer had been denied, he will now be able to purchase them next week. CERT Report-Randy Halseth A. Information brochures were passed out at the Country Fair in November by CERT members and a list of interested prospective members was collected. B. On December 8`b Randy will meet with Loma Linda,Colton and Grand Terrace to plan a joint exercise for all three CERT Teams UNFINISHED BUSINESS ' A. Vic mentioned that it will be more difficult to spend the money in the EOC account in 2011. B. Vic will be meeting with Pete Parsons and Matt Wirz to record some new broadcasts. NEW BUSINESS A. Nothing to report. TRAINING/SPEAKERS:Nothing to report. ADJOURNMENT at 6:55 p.m. Respectfully submitted, Sue Taylor, Secretary The next meeting will be held on Tuesday February 1'2011 @ 6:00 P.M. I RECEIVED Historical & Cultural Activities Committee JAN 4 2011 Minutes for December 6, 2010 CITY OF GRAND TERRACE CITY CLERK'S DEPARTMENT The meeting was called to order at 7:10 p.m. by Chair Pauline Grant. Those present were Pauline Grant, Shelly Rosenkild, Ann Petta, Frances Carter, Gloria Ybarra, City Clerk Brenda Mesa, Masako Gifford and Peggy Reagan . Secretary's Report: The minutes for November 1, 2010 were read and approved on a motion by Ann, seconded by Pauline. All in favor. Motion carried. Treasurer's Report: The budget shows a balance of$ 531.19. The Petty Cash balance is $ 390.38. Masako reimbursed Pauline$ 13.90 for donuts purchased for the Country Fair. Masako will also be reimbursed $8.00 for the cleaning of the tablecloth. Other reimbursements included $ 20.00 to Ann and $ 40.00 to Pauline for food purchases for the upcoming Anniversary Potluck Dinner. Historical Report: Pauline and Ann will be on hand for the emptying of the display case. Sam Fisk of the Boy Scouts Troop 40 will provide the items to be displayed in the case which will feature items corresponding to this year's central theme. Old Business: 290'annual Country Fair, Saturday,November 6, 2010 Ann reported that there were 29 participants with 24 chile and baking entries in the food contest. There was not a children's cookie contest this year.The committee was very pleased with the Fair's proceeds which totaled$ 337.84. Gloria sent thank you cards to the food contest judges and volunteers, thanking them for their generosity of time and talent. New Business: 32"d annual Anniversary Potluck Dinner, Tuesday, December 14, 2010 The Boy Scouts Troop 40 will be the central theme for this year's celebration and the display case will also reflect the same theme. A diagram of the room was reviewed and approved by the committee. The seating will be for approximately 110 people. Shelly presented a sample of the decorations which the committee viewed and approved. The color scheme chosen will include the colors blue, silver and green. The cake, which will be provided by the City, will also have the colors blue, green and white. j Food items supplied by the committee will include scalloped potatoes, green salad, Spanish rice, vegetables, turkey breasts (20 lbs.), bread and butter, water, ice and punch. Burrtec Industries, Inc. will donate the ham. Shelly will help in shopping for tablecloths and napkins. She will also prepare the reserved signs as well as other related signs as needed. Frances will contact the volunteers needed for the Potluck. An inventory of supplies list was handed to each member by Masako. Committee members will meet at City Hall at 9:00 a.m. the morning of the Potluck to decorate. then leave and return at 4:00 p.m. and stay for the remainder of the celebration. COUNCIL AGENDA ITEM NO. E 1 The evening program schedule, to date, is as follows: The dinner will begin at 6:00 p.m. At approximately 6:50 p.m., the program begins Photos will be taken Sam Fisk of Boy Scouts Troop 40 will preside at the podium The evening program closes at 7:30 p.m. Master of Ceremonies will be Mayor Maryetta Ferre' The meeting was adjourned at 8:20 p.m. The next meeting is scheduled for January 3, 2011. Respectfully Submitted, Gloria Ybarra Secretary I w iALIFORNIA AGENDA REPORT i MEETING DATE: January 25, 2011 Council Item(X) CRA Item ( ) TITLE: Treasurer's Report for Quarter Ending September 30, 2010 I PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Approve i BACKGROUND: Treasurer's Report of Cash and Investments should be presented to the governing body quarterly. This reports all cash held and invested by the city. All fiscal agent funds are related to bond issues for which the city has limited authority to access and invest funds'as controlled by the bond indenture. DISCUSSION: HIGHLIGHTS -� Quarter-to-Date Total cash and investments decreased($2,706,112)or(14.3)%over the previous quarter end with a total of$16,172,651. The majority of the cash decrease is attributable to the normal lack of tax revenue receipts in the first quarter of the fiscal year.The average yield continues to decline as investment income yields continue to decline. LAIF net yield is now .51%compared to 1.51%in June 2009. Overall cash and investments, including cash with fiscal agent, decreased (13.4) % for the quarter for a total of$17,472,651. i Fiscal Year-to-Date Compared to Previous Ouarter i Change in Treasury Position Sep. 30 Jun. 30 2010 2010 Change % Investment Pools 14,307,657 17,341,092 (3,033,435) (17.5) Investment Instruments 1,0819029 1,081,042 (13) 0.00 Funds with Institutions 783,965 456,629 327,336 71.7 Total Cash and Investments $16,172,651 $18,878,763 ($2,706,112) (14.3) Funds with Fiscal Agent 1,300,000 1,300,000 0 1 0.00 Total $17,472,651 $20,178,763 ($2,706,112) 1 (13.4) COUNCIL AGENDA ITEM NO. 3F 1 Fiscal Year-to-Date Compared to Previous Year Change In Treasury?osition Sep. 30 Sep. 30 2010 2009 Change ' % Investment Pools 14,307,657 14,769,278 (461,621) (3.1) Investment Instrvrnpnts 1,081,029 1,081,038 (9) 0.00 Funds with Institutions 783,965 583,996 199,969 34.2 Total Cash and Inv stments $16,172 651 $16,434,312 $261 661 1.6 Funds with Fiscal. .gent 1,300;000 1 1,302,464 (2,464) 0.00 Total $17,472,651 1 $17,736,776 ($264,125) (1.5) _ INFORMATION I have attached the Quarterly Cash and Investments Report as of September 30, 2010. 1. 1 hereby certify that the investments are in compliance with the investment policy adopted by the City Council. 2. The City has the ability to meet its budgeted expenditures for.the next six months. 3. The market values for funds held in money market funds and banking institutions do not change.The amounts listed as market value for these items are the same as the book value. 4. The book value for the LAIF Pool is the withdrawal value provided by the State Treasurer. 5. The market value of the funds held by the State LAIF Pool equates to the City's pro-rata share of the market value of the entire LAIF investment pool. 6. The fiscal agent provided the market values for investments held in their accounts. FISCAL IMPACT: None by this report. Respectfully submitted, Bernie Simon Finance Director 9 ' Manager Approval: kz Betsy Nl"Adaifis City Manager ATTACHMENTS: Treasurer's Report September 30, 2010 `.!.3 i 3`tt Irl3rjA...it'O�lt. 00 l.4LIFORNIA ', City of Grand Terrace CRA of Grand Terrace Cash&Investment Report September 30,2010 FUNDS IN INVESTMENT POOLS Book PAR Market Yield Maturity California Asset Management Program 3,864,373 3,864,373 3,864,373 0.270% n/a State Treasurer-LAIF: City Account 52,969 52,969 52,969 0.510% n/a CRA Account 10,390,314 10,390,314 10,390,314 0.510% n/a TOTAL 14,307,667 14,307,657 14,307,657 INDIVIDUAL INVESTMENT INSTRUMENTS US Bank Safekeeping : First American Treas Oblig Fnd 1,071,782 1,071,782 1,071,782 0.001% n/a j First Financial Equity-Money Market 9,247 9,247 9,247 0.050% n/a TOTAL 1,081,029 1,081,029 1,081,029 - Account Insured Other Total FUNDS WITH BANK INSTITUTIONS Name Deposits Deposits Dep osits Yield Maturity Bank of America General 0 347,876 347,876 0.000% n/a Bank of America Savings 250,000 62 250,062 0.300% n/a Bank of America Payroll 0 92,027 92,027 0.000% n/a Bancomer CD 94,000 0 94,000 3.200% 6/8/12 TOTAL 344,000 439,965 783,965 Duration GRAND TOTAL Book Market Ave Days Ave Rate INVESTMENTS 15,732,748 15,732,748 1.09 0.4170/6 CASH 439,903 439,903 GRAND TOTAL 16,172,651 16,172,651 Financing _ FUNDS WITH FISCAL AGENT Issue Book Par Market Yield Maturity First American Treasury Obligations 2004 TAB 1,300,000 1,300,000 1,300,000 0.001% n/a TOTAL FISCAL AGENT 1,300,000 1,300,000 1,300,000 fl i Abe CALIFOflN1A AGENDA REPORT I I MEETING DATE: January 25, 2011 Council Item(X) CRA Item ( ) TITLE: Treasurer's Report for Quarter Ending December 31, 2010 PRESENTED BY: Bernie Simon, Finance Director I RECOMMENDATION: Approve i BACKGROUND: Treasurer's Report of Cash and Investments should be presented to the governing body quarterly. This reports all cash held and invested by the city. All fiscal agent funds are related to bond issues for which the city has limited authority to access and invest funds as controlled by the bond indenture. DISCUSSION: HIGHLIGHTS Quarter-toDate Total cash and investments increased$880,678 or 5.4%over the previous quarter end with a total of $17,053,329. The majority of the cash increase is attributable to the normal influx of revenue receipts in i the second quarter of the fiscal year.The average yield continues to decline as investment income yields continue to decline. LAIF net yield is now approximately .46%in December 2010 compared to 1.51%in June 2009. I Overall cash and investments, including cash with fiscal agent, increased 5.0%for the quarter for a total of$18,353,329. Fiscal Year-to-Date Compared to Previous Ouarter I Change in Treasury Position Dec. 31 Sep. 30 2010 2010 Change % Investment Pools 14,829,888 14,307,657 522;231 1 3.6 j Investment Instruments 1,08,1,029 1,081,029 0 0 Funds with Institutions 1,142,412 783,965 358,447 45.7 Total Cash and Investments $17,053,329 16,172,651 $880,678 5.4 Funds with Fiscal Agent 1 1,300,000 1 1,300,000 0 0 Total $18,353,329 $17,472,651 $880,678 5.0 COUNCIL AGENDA ITEM NO.3�5 1 Fiscal Year-to-Date Compared to Previous Year The largest single factor for the cash decrease from a year ago may be attributed to the required $2,179,087 SERAF payment in May of 2010. Dec. 31 Dec. 31 2010 2009 Change % Investment Pools 14,829,888 16,982,992 (2,153,104) (12.7) Investment Instruments 1,081,029 1,081,038 (9) (0) Funds with Institutions 1,142,412 594,460 547,952 92.1 Total Cash and Investments $17,053,329 $18,658,490 ($1,605,161) (8.6) Funds with Fiscal Agent 1 1,300,000 1 1,300,086 (86) (0) Total $18,353,329 1 $19,958,576 ($1,605,247) 1 (8.0) INFORMATION I have attached the Quarterly Cash and Investments Report as of December 31, 2010. 1. 1 hereby certify that the investments are in compliance with the investment policy adopted by the City Council. 2. The City has the ability to meet its budgeted expenditures for the next six months. 3. The market values for funds held in money market funds and banking institutions do not change.The amounts listed as market value for these items are the same as the book value. 4. The book value for the LAIF Pool is the withdrawal value provided by the State Treasurer. 5. The market value of the funds held by the State LAIF Pool equates to the City's pro-rata share of the market value of the entire LAIF investment pool. 6. The fiscal agent provided the market values for investments held in their accounts. FISCAL IMPACT: None by this report. Respectfully submitted, 7 Bernie Simon Finance Director Manager Approval: Betsy NIC Adams City Manager ATTACHMENTS: Treasurer's Report December 31, 2010 p� C " s i i i 1 CALIFORNIA � City of Grand Terrace CRA of Grand Terrace Cash&Investment Report December 31,2010 FUNDS IN INVESTMENT POOLS Book PAR Market Yield Maturity California Asset Management Program 3,866,230 3,866,230 3,866,230 0.180% n/a State Treasurer-LAW: City Account 53,038 53,038 53,038 0.460% n/a i CRA Account 10,910,620 10,910,620 10,910,620 0.460% n/a TOTAL 14,829,888 14,829,888 14,829,888 INDMDUAL INVESTMENT INSTRUMENTS US Bank Safekeeping : First American Treas Oblig Fnd 1,071,782 1,071,782 1,071,782 0.001% n/a First Financial Equity-Money Market 9,247 9,247 9,247 0.050% n/a ' TOTAL 1,081,029 1,081,029 1,081,029 Account Insured Other Total FUNDS WITH BANK INSTITUTIONS Name Deposits Deposits Deposits Yield Maturity Bank of America General 0 781,649 781,649 0.000% n/a Bank of America Savings 250,000 42 250,042 0.200% n/a Bank of America Payroll 0 16,721 16,721 0.000% n/a Bancomer CD 94,000 0 94,000 3.200% 6/8/12 TOTAL 344,000 798,412 1,142,412 i Duration GRAND TOTAL Book Market Ave Days Ave Rate INVESTMENTS 16,254,959 16,254,959 1.07 0.367% CASH 798,370 798,370 GRAND TOTAL 17,053,329 17,063,329 Financing FUNDS WITH FISCAL AGENT Issue Book Par Market Yield Maturity First American Treasury Obligations 2004 TAB 1,300,000 1,300,000 1,300,000 0.001% n/a TOTAL FISCAL AGENT 1,300,000 1,300,000 1,300,000 it I J CALIFORNIA AGENDA REPORT MEETING DATE: January 25, 2011 Council Item ( X ) CRA Item (X ) TITLE: Town Square Project Update , PRESENTED BY: Joyce Powers, Community and Economic Development Director I RECOMMENDATION: Receive an update on the'Stater Bros. Market construction and' scheduling for public infrastructure improvements. BACKGROUND AND DISCUSSION: A representative from Stater Bros. Market, Mike Slaton, will provide a verbal update regarding; the progress of construction at their Barton Road site. In addition to the private construction, the Agency's public improvement project is now open for! public bidding and is targeted for bid award within 45 days. These improvements include: Barton Road: street improvements, including turn lane, traffic signalization, and lane 1 restriping at the I-215 interchange; Michigan Street: additional right turn lane (northbound), lane striping; and, i La Paix Street: street and landscaping improvements. i The engineer's estimate for the public project is $560,000, which will be funded by impact fees collected and the Agency. The public improvements will serve new commercial development along the Barton business corridor and will be completed by July 2011. An estimated schedule of the two projects is as follows: Grading started at Stater Bros. site November 2010 Public bidding for public improvements January-February 2011 Market construction begins February 2011 Award contract for public improvements March 2011 1 Complete public improvements July 2011 Stater Bros. Market opening August 2011 FISCAL IMPACT: There would be no fiscal impact associated with this action. COUNCIL AGENDA ITEM! NO. 3H 1 Respectfully submitted, 1") ati��y i yce Powers Community and Economic Development Director Manager Approval: Betsy Nf Adains City Manager i 1 CALIFORNIA AGENDA REPORT MEETING DATE: January-25, 2011 Council Item(X) CRA Item ( ) TITLE: Attendance of majority of City Council Members at a meeting'of another public agency PRESENTED BY: John Harper, City Attorney RECOMMENDATION: BACKGROUND: A complaint was filed with the San Bernardino District Attorney's Office by a private citizen alleging a violation of the Ralph M. Brown Act, Government Code Section 54950 et. seq., based upon the attendance of Board Members of the Colton Joint Unified School District at the Grand Terrace City Council Meeting of December 14, 2010, and providing comments during the public comment portion of the City Council Agenda. While the complaint was directed against the Members of the School Board, I have been asked to address the application of the law to the potential attendance by the majority of Members of the City Council at other types of meetings, including those of another public agency. While a"meeting" for the purposes of the Brown Act is generally defined as the congregation of the majority of members of the City Council at the same time and location to hear, discuss, deliberate, or take action on any item within the subject matter jurisdiction of the City Council, including by serial communication, there are several specific statutory exceptions set forth in Government Code Section 54952.2. The exceptions applicable to this Staff Report are as follows: 1. Attendance at an open and publicized meeting organized to address a topic of local community concern by other than the City, provided that the majority of City Council Members do not discuss among themselves business of a specific nature within the subject matter jurisdiction of the City. i 2. The attendance at an open and noticed meeting of another body of the City (i.e., the Planning Commission) or at an open and noticed meeting of the legislative body of another local' agency (i.e., Colton Joint Unified School District), provided again that Members do not discuss among themselves business of a specific nature within the subject matter jurisdiction of the City. ' COUNCIL AGENDA ITEM NO. `� 3. Attendance at a purely social or ceremonial occasion, again provided that the City Council Members do not discuss among themselves business of a specific nature within the subject matter jurisdiction of the City. Additionally, Government Code Section 54954.3 mandates that every agenda provide an opportunity for members of the public to address the City Council on any matter item within the City's subject matter jurisdiction and on any agendized matter. Based upon the foregoing, the City Council is free to attend meetings of other public agencies and provide individual public comment as long as individual City Council Members do not discuss City business among themselves. Generally speaking, it is advisable that City Council Members do not sit together, as with the School Board Members, who intentionally set apart from one another. It is also clear from the foregoing that neither the attendance at the City Council meeting by the School Board Members, nor their speaking during public comment was a violation of the Brown Act. FISCAL IMPACT: None Respectfully submitted: John Harper, City Attorney Manager Approval: Betsy A Adartis, City Manager `-'Vie ;r 6Iiv� 0 :1f:Si/5 . :7�p