The URL can be used to link to this page

Home My WebLink About121912 OB SARDA Special Meeting Agenda _ in compliance with the Americans with pisabilities Act; if you need sqecial assistance to participate:in this meeting, please contactthe office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make , reasonable arrangemenis:to,ensure accessibility to that meeting [28. GFR 35.102,35.104 ADA Title :lij. SPECIAL MEETING.NOTICE/AGENDA OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY GREAT OAK CONFERENCE ROOM 41000 MAIN STREET � DECEMBER 19, 2012 — 6:30 PM Next in Order: Resolution: 12-12 CALL TO ORDER: Ghairperson John Meyer Roll Cali: Meyer; Thornhill, Gonzales, Kelliher, Ordway-Peck, Sparkman, Turner, PUBLIG COMMENTS A totaF of 15 minutes is provided so members of the pubiic may adtlress the Commission on ifems that are not listed on the Agenda. Speakers are limited to three minutes each. If you desire to speak to the Commission about an item not on the Agenda, a salmon colored "Request to Speak" form should be filled out and filed with the Commission Secretary. When you are called'to speak, please come forward and state your name for the record. For all other agenda items a"Request to Speak" form must be filed with the Commission Secretary prior to the Commission addressing that item. There is a three-minute time limit for individual speakers. CONSENT CALENDAR 1 Minutes RECOMMENDATIONt 1.1 Approve the action minufes of December 12, 201'2. BOARD BUSINESS 2 Adflqt the Successor Aqency to the Temecula Redevelopment Aqency Due Diliqence Review and Convene'Public;Comment Session RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO.OB SARDA 12- A RESOLUTION OF THE OVERSlGHT BOARD OF THE i SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY APPROVING THE DUE DILIGENCE REVIEW OF OTHER REDEVELOPMENT FUNDS CONDUCTED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.5 � ADJOURNMENT Next regular meeting: Wednesday, January 9, 2013, 6:30 PM, in the Council Chambers, 41000 Main Street, Temecula, California. � � r � f�� ` � � I ,� � .�� : . . � :. � �� ( � _ _ 1 J � ' � � �l ��.,,....,r�. / . �:, ,� S. .A! f.+"'� .._._..� �l._.... ._F:_��,��._ ( ____�.�.,�.___ ��. , _...... _-,,� � � _.._____ Date -�t � J�fan� Meyer � " � Chairperson ��,, NOTICE TO THEPUBLIC The Agenda will be ava+lable for viewing, prior to the meeting, at the Main Reception at City Hail — 41000 Main Street, Temecula, 8:00 — 5:00 PM as well as on the City's -websitr�.--,�v�rnv��it�yQiter�i�G�ii��,�r ; Any �staff re}�c�r�iiw�itimr7: materfal pertaining to this meeting will be available,; priar tc� it�o mei�ti�t�, (ar°E�ialalic rrviGw, �,t tho M7i�� f3t�ceptiz�r7 �rtd' at the respect(ve meeting. Any Supplemental Niaterial disiribut�d tc�' a rn�jflr'r1y of tl7e :C:omn�itte� Momi�c�rs regarding any item on the Agenda, atter the posting of the Agenda, will be available for public review at the Main Reception. In addilion, such material wil! be made available for review at the respective meeting. If you have any questions regarding any item of business on the Agenda for this meeting, please contact City Hall — 951-694-6400. ! 2 In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II]. ACTION MINUTES OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY CITY COUNCIL CHAMBERS 41000 MAIN STREET DECEMBER 12, 2012 — 6:30 PM Next in Order: Resolution: 12-11 CALL TO ORDER: Chairperson John Meyer Roll Call: Meyer, Thornhill, Gonzales, Kelliher, Ordway-Peck, Sparkman, PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Commission on items that are not listed on the Agenda. Speakers are limited to three minutes each. If you desire to speak to the Commission about an item not on the Agenda, a salmon colored "Request to Speak" form should be filled out and filed with the Commission Secretary. When you are called to speak, please come forward and state your name for the record. For all other agenda items a"Request to Speak" form must be filed with the Commission Secretary prior to the Commission addressing that item. There is a three-minute time limit for individual speakers. NO SPEAKERS . CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the action minutes of October 10, 2012. APPROVED BY 5-0-1. BOARD MEMBER THROHILL ABSTAINING BOARD BUSINESS 2 Adoqt the Successor Aqency to the Temecula Redevelopment Aqencv Due Diliqence Review and Convene Public Comment Session APPROVED BY A 6-0 VOTE. VOTE REFLECTED UNANIMOUS APPROVAL RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. OB SARDA 12- 1 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY ACKNOWLEDGING THE RECEIPT OF THE REVIEW OF THE OTHER REDEVEOPMENT FUNDS CONDUCTED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.5 ADJOURNMENT Next regular meeting: Wednesday, January 9, 2013, 6:30 PM, in the Council Chambers, 41000 Main Street, Temecula, Caiifornia. Date John Meyer Chairperson NOTICE TO THE PUBLIC The Agenda will be available for viewing, prior to the meeting, at the Main Reception at City Hall — 41000 Main Street, Temecula, 8:00 — 5:00 PM as well as on the City's website — www.citvoftemecula.orq. Any staff report/written material pertaining to this meeting will be available, prior to the meeting, for public review at the Main Reception and at the respective meeting. Any Supplemental Material distributed to a majority of the Committee Members regarding any item on the Agenda, after the posting of the Agenda, will be available for public review at the Main Reception. In addition, such material will be made available for review at the respective meeting. If you have any questions regarding any item of business on the Agenda for this meeting, please contact City Hall — 951-694-6400. 2 THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Board of Directors of the Oversight Board of the Successor Agency to the Temecula Redevelopment Agency Patrick Richardson, Director Development Services for the Successor Agency FROM: to the Temecula Redevelopment Agency DATE: December 19, 2012 SUBJECT: APPROVAL AND TRANSMITTAL OF THE DUE DILIGENCE REVIEW FOR THE OTHER REDEVELOPMENT FUNDS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34179.5 PREPARED BY: Luke Watson, Senior Planner for the Successor Agency to the Temecula Redevelopment Agency RECOMMENDATION: 1. Adopt a resolution entitled: RESOLUTION NO. OB SARDA 12- A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY APPROVING THE DUE DILIGENCE REVIEW OF THE OTHER REDEVELOPMENT FUNDS CONDUCTED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.5 AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Discussion Staff recommends that the Oversight Board adopt the attached resolution, (i) approving the Due Diligence Review for the Other Redevelopment Funds pursuant to Health and Safety Code Section 34179.5, as presented, (ii) authorizing the Successor Agency to retain the assets and funds, if any, identified in subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision(c) of Section 34179.5, as documented in the Due Diligence Review (the "Restricted Assets"), and (iii) ordering the transmittal of the Due Diligence Review to the Department of Finance and the county auditor-controller. Pursuant to Health and Safety Code Section 34179.5, each Successor Agency must employ a licensed accountant, approved by the county auditor-controller and with experience and expertise in local government accounting, to conduct a due diligence review to determine the 1 unobligated balances available for transfer to taxing entities. Each review must determine the net balance of the Other Redevelopment Funds "and specifically the amount of cash and cash equivalents determined to be available for allocation to taxing entities as of June 30, 2012 (the "Due Diligence Review"). In summary, such amount is determined by determining the total value of assets and cash and cash equivalents in the Other Redevelopment Funds, and subtracting the following ("Restricted Assets"): (1) restricted funds, (2) assets that are not cash or cash equivalents, (3) amounts that are legally or contractually dedicated or restricted for the funding of an enforceable obligation, and (4) amounts that are needed to satisfy obligations that will be put on the Recognized Obligation Payment Schedule ("ROPS") for the current fiscal year. Also, the amount determined to be available for allocation to taxing entities includes the value of assets, cash and cash equivalents transferred after January 1, 2011 through June 30, 2012 by the former Redevelopment Agency or the Successor Agency, another public agency or private person if an enforceable obligation to make that transfer did not exist. The Due Diligence Review documents the Restricted Assets and provides the respective amounts, sources and purposes for which the Restricted Assets should . . be retained. Health and Safety Code Section 34179.6 requires each Successor Agency to submit the Due Diligence Review to the Oversight Board for the Oversight Board's review and approval. Upon receipt of the Due Diligence Review, the Oversight Board must convene a public comment session to take piace at least five business days before the Oversight Board holds the approval vote. The Oversight Board also must consider any opinions offered by the county auditor-controller on the review results submitted by the Oversight Board. By October 15, 2012, the Oversight Board must review, approve, and transmit the Due Diligence Review to the state department of finance ("DOF") and the county auditor-controller. The Oversight Board may adjust any amount provided in the review to reflect additional information and analysis. The review and approval must occur in public sessions. The Oversight Board may request from the Successor Agency any materials it deems necessary to assist in its review and approval of the determination. Section 34179.6 empowers the Oversight Board to authorize a Successor Agency to retain the Restricted Assets. The DOF must complete its review of the Due Diligence Review no later than November 9, 2012, and must notify the Oversight Board and the Successor Agency of its decision to overturn any decision of the Oversight Board to authorize a Successor Agency to retain Restricted Assets. The DOF must provide the Oversight Board and the Successor Agency an explanation of its basis for overturning or modifying any findings, determinations, or authorizations of, the Oversight Board. The Successor Agency then has the option to meet and confer with DOF to discuss any modifications. Section 34179.5 requires all Other Redevelopment Funds and accounts held by the Successor Agency to determine unobligated balances available for transfer to taxing entities. The review for all other funds and accounts must be completed by December 15, 2012 and the county auditor-controller has an April 20, 2013 deadline to provide DOF the report specifying the amount submitted by each Successor Agency from all other funds and accounts, and specifically noting any Successor Agency that failed to remit the full required amount. Upon full payment of the amounts determined in the Due Diligence Review and the subsequent review conducted, for all other funds and accounts, payment of the "surplus" tax revenues due on July 12, 2012, and any unpaid or underpaid pass through payments owed for fiscal year 2 2011-12, DOF will issue to the Successor Agency, within five business days, a finding of completion of the requirements of Section 34179.6. Lance Soll & Lunghard, LLP, were retained by the Successor Agency to conduct this Due Diligence Review. ATTACHMENTS: 1. Resolution No. OB SARDA 12- 2. Due Ditigence Review 3. Recognized Obligation Payment Schedule for the period of January 1, 2013 through June 30, 2013 3 RESOLUTION NO.OB SARDA 12-12 A RESOLUTION OF THE OVERSIGHT BOARD OF THE 5UCCESSOR AGENCY TO THE TEMECUULA REDEVELOPMENT AGENCY APPROVING THE DUE DILIGENCE REVIEW OF THE OTHER REDEVELOPMENT FUNDS CONDUCTED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.5 AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH RECITALS: A. Pursuant to Health and Safety Code Section 34175(b) and the California Supreme � Court's decision in California Redeveloprr�ertt Association, et al. v. Ana Matosantos, et al. (53 Ca1.4th 231(2011)), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the former Temecula Redevelopment Agency transferred to the control of the Successor Agency to the Temecula Redevelopment Agency (the "Successor Agency") by operation of law. B. Health and Safety Code Section 34179.5 requires the Successor Agency to employ a licensed accountant, approved by the county auditor-controller, to conduct a due diligence review to determine the unobligated balances available for transfer to taxing entities. C. Health and Safety Code Section 34179.6 requires the Successor Agency to submit the results of the review conducted pursuant to Section 34179.5 for the Low and Moderate Income Housing Fund (the "LMIHF"') and specifically the amount of cash and cash equivalents determined to be available for allocation to taxing entities (the "Due Diligence Review") to the Successor Agency's Oversight Board (the "Oversight Board") for the Oversight Board's review and approval. D. Pursuant to Health and Safety Code Sections 34179.6 and 34180(j), the Successor Agency submitted to the Oversight Board, the county administrative officer, the county auditor- controller, the State Controller and the Department of Finance ("DOF") the Due Diligence Review and a copy of the Recognized Obligation Payment Schedule ("ROPS"). E. Pursuant to Health and Safety Code Section 34179.6(b), upon receipt of the Due Diligence Review, and at least five business days before the Oversight Board considers the approval of the Due Diligence Review, the Oversight Board must hold a public comment session (the "Public Comment Session") at which time the public has an opportunity to hear and be heard on the results of the Due Diligence Review and at which time the Oversight Board considers the opinions, if any, offered by the county auditor-controller on the results of the Due Diligence Review. F. On December 12, 2012, the Oversight Board held the Public Comment Session pursuant to Health and Safety Code Section 34179.6 (b). G. Pursuant to Health and Safety Code Section 34179.6(c), the Oversight Board must review, approve and transmit to DOF and the county auditor-controller, the determination of the amount of cash and cash equivalents in the LMIHF available for disbursement to taxing entities as determined according to the method provided in Section 34179.5. Section 34179.6 (c) provides that the Oversight Board may adjust any amount provided in the Due Diligence Review to reflect additional information and analysis. H. Section 34179.6(c) empowers the Oversight Board to authorize the Successor Agency to retain assets or funds identified in subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision(c) of Section 34179.5. If the Oversight Board makes this authorization, the Oversight Board must identify to DOF the amount of funds authorized for retention, the source of those funds, and the purposes for which those funds are being retained. The determination and authorization to retain funds and assets shall be subject to the review and approval of DOF pursuant to Health and Safety Code Section 34179.6(d). I. Pursuant to Health and Safety Code Section 34179.6(c), the Oversight Board desires to approve the Due Diligence Review and to authorize the Successor Agency to retain the assets and funds, if any, identified pursuant to subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision(c) of Section 34179.5, as documented in the Due Diligence Review. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34179.6(c). Section 3. The Oversight Board hereby approves the Due Diligence Review as presented on file with the Secretary. Section 4. For the purposes of providing for the transfer of housing functions and assets pursuant to Health and Safety Code Sections 34176 and 34181(c), the Oversight Board hereby authorizes the Successor Agency to retain the assets and funds, if any, identified in subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision(c) of Section 34179.5, as documented in the Due Diligence Review, which provides the amount of funds authorized for retention, the source of those funds, and the purposes for which those funds are being retained. Section 5. The staff of the Successor Agency is hereby directed to transmit to DOF and the county auditor-controller written notice and information regarding the actions taken by this Resolution and specifically the determination of the amount of cash and cash equivalents in 2 the LMIHF that are available for disbursement to taxing entities as determined according to the method provided in Health and Safety Code Section 34179.5. Such notice to DOF shall be provided by electronic means and in a manner of DOF's choosing. Section 6. The staff and the Board of the Successor Agency are hereby authorized � and directed, jointly and severally, to execute and record such documents and instruments and to do any and all other things which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken are hereby rati�ed. 3 PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Oversight Board of the Successor Agency to the Temecula Redevelopment Agency this 19th day of December, 2012. John Meyer, Chairperson ATTEST: Susan W. Jones, MMC Board Secretary STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF TEMECULA ) I, Susan W. Jones, MMC, Board Secretary of the Successor Agency to the Temecula Redevelopment Agency, do hereby certify that the foregoing Resolution No. OB SARDA 12-07 was duly and regularly adopted by the Board Members of the Oversight Board of the Successor Agency to the Temecula Redevelopment Agency of the City of Temecula at a meeting thereof held on the 10th day of October, 2012, by the following vote: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ABSTAIN: BOARD MEMBERS: Susan W. Jones, MMC Board Secretary 4 r . SUMMARY OF RECOGIdIZED OBLI(iAT10N PAYMENT SCHEDULE Filed for the January 1, 2013 to June 30, 2013 Period Name of Successor Agency: Sucxeasa ngancy to the Temecula Redeve�opment Agency TWat Ouhfar�dtnp Dobt or �I Outstanding Debt or Obligation : �gg p�,�g� Current Period Outstending Debt or Obll etion SluaYlo�Ah Tdd A Available Revenues Other Than AnGcipated RPTTF Funding 8,248,847 B Mticipated Fsforceable Obligations Funded with RPTTF 3,744,784 C Mticfpated AdministraUve Allowance Funded wlth RPTTF 126,�0 D Total RPITF R uested B+ C= D 3 Total Curtent Period Outstanding Debt or Obligation (A + B+ C= E) shoua be nre same amounr es aoPS fam six-monrn tae� i 10.1t8,237 E Enter Totel Six-Month Mticipated RPTTF Funding (obraln from ca,nty auditor,aontrdler) 3.8�.384 F VBriance E D= F) Afaxtmum RPTiFAllowaWe should rrot exceed Total Anticipated RPTTF FundinB f Prior Period (January 1, 2072 through June 30, 2012) Estimated vs. Actual Paymerhs (as requhed In HSC sectlon 341 BB (a)) G EnterEstimatedObligationsFundedbyRPTTF (snourd oe meiesser aFinenoeg approvedRrTi'Famountinciud�ngadmin enowence ortho eaue� emournd�aMnured) 3,744,38a H Enter Actual Obligations Pald with RPTTF 2,838,701 I Enter Actual Administrative Expenses Paid wilh RPTTF 125,000 � J Ad'ustment to Redevelo ment Obl' atlon Retirement Fund G- H+ I= J 860,883 K AdJusted RPTTF (The tota/ RPTTF requested shall be adJusted if actual obligadons paid with RPTTF are less than the estimated obligetion emount.) f 3,788,701 Certification of OversigM Board Chairmarr. �vr ` �� YL- +V Pursuant to Section 34177(m) of the Health and 3aTety code, Name 'fk1 I hereby certify that the ahove is a trua and accurate Recogn¢ed Obllgation Payment Schedule for the above named agency. S � Signatur te s 3 a q 9 � p u � Q a � �� 2 E 3 � 6 9 � c � g � D � D � : v � � & 2 '� � . q_ 0 = � � � � � � �. i N �'° ��^��S� E p � 4 "� m�,,� 33 � s � � aa��F��Sa g � 6 ��> ��`��"�"_'a � �a N��3 � o $ N � � e 4 s � � C S� . °g � � 'a� � ��a±��o��saBS�m�� s�$ ��' o a� a o � �� $ "� �veN� �� s°es°°�a�°sN o� ��&e� ��mmm � m 3 6L� Y �� g� R T� c c c c c�#�� w mg�=8��s « a R �Q� � ��s� �` � ;� m �m3 cs�?a s' �� R Q _ � a a 5 S � � p 6 � 'SS m�&.�&�'5�9� � . 9��.�� '�C��§.§�°:��;� �� 8ge� 9 a :� � a �: ain� �' � E6 66g 3 m g r 'S � � ��5 o: �Z > g � g g m�` a z � m � a 6 � • S A � �gaz, � ' g ; s � � �� : s �� aE�a ^a �a�+ o� e u� A � o 0 o a o o a o o�� o � V g $��f��°s��€£��E�� ° 0 _��,.�N. _ s ��o ��e:�� $��5�a��e�'�m� Y �� -,�g ��a�s'�� "��m� §�s� ��€�s'W�o s�s� � s T Q � �"m m�� :� � � � T Q Q ' �3 6 a � S � 'P � i�� '�S� �"s Y��a°E "��lE � _� �� mms�e'smg"s's�� _°s a �YS�m�$' No�s Name of Succeseor qgency: Suxeasor Agency to the Temecula Redevelopment Agency County. Riverside RECOf3NIZED OBLIOATION PAYMENT SCNEDULE (ROPS UI) — Nobs (Optloneq Janua 1, 2073 th�ou h June 30, 2013 Item # NotealCommeMs B Total amount reflects bond a ent due In the ROP5 eAod $878,543 and 85D0,000 Tar bw�d rind el a eM W be held reserve for next ROPS eriod band ent 7 Total amount reflecte bond ent due In the ROPS od $357181 end $1B0 000 for bond rinci el ent to be held reserve for ne# ROPS eriod bond ent � x � E � R •�^ � :� o A � E7e�i� ��,��R8 �^ A� :�� 8 � �n s �$ E � g @@ 25 $ � g n � d 9 . z y $ � � � � � <� � • :_ W q � � m ^ �� 5 ° $88 � m� �� a E� �� S� . . l.�e a � i �� G7 ��t LL a ^ ry= � � H i �y � � 88B8B a = s �� „�d�� S s ^� q w mS� ��° ` ��mm��m��asa ��a�m� �W�� $ n 8 ' 6 ¢ g � n p � 'S � � $ E 6 a < <� � w � � m . �� 3 � o � aa m n ° $ � � F5 � 2 mE $ �� Ef��r�g�+ � � �� LL5��g E� o , _ � � ' E � ?� ��EP HH �� a' �� ffi '�� a��`� 3 �w a.� =�PE��b> Q �ga��ems��e<'�a��g€� ��a a SS6�� e LL m �m$S�� a� �� . 5 g �� 5 x � � 9 .R � � ° LL 3 � A . � +� � � � 5 � E � � � � r 2 _ - _ U 3 a � � � ffi < � a ^ ' o yn � ��=��x�i�fm�°��"�=E?��4 � � � P ] j� < b � 7��¢ u m x �D � C U�i 5 � � m �. �� a t� t a � �Bn�i S a � x ��' �3� � x 6' � ' � E o � a a g e � a m o o' - S�oRRB. m°de�� O � ��ai �� . � $R4 q=� �� $ E o o " � � � g � _ � � � s � � � E � ag��es�s3o �`�°-e�'S��3�5&��a � - y S E E� ��€€�€€o€�� Z U �� SuccessorAgency of the Former Temecula Redevelopment Agency Due Diligence Review of the Other Redevelopment Agencies Funds Pursuant to Sections 34179.5(c)(1) through 34179.5(c)(6) of Assembly Bill No. 1484 of 2012 � � � � • . .- . . � ' �� ' ;',�� ,� � �,};' �',;: SuccessorAgency of the Former Temecula Redevelopment Agency ' Due Diligence Review of the Other Redevelopment Agency Funds Pursuant to Sections 34179.5(c)(1) through 34179.5(c)(6) of Assembly Bill No. 1484 of 2012 �� CERTIFIED PUBIIC ACCOUNTANTS • Brandon W. Burrows, CPA � David E. Hale. CPA, CFP A Professional Corporation o Donald G. Slater. CPA o Richard K. Kikuchi, CPA . Susan F. Matz, CPA • Shelly K. Jackley, CPA � Bryan S. Gruber, CPA � Deborah A. Harper, CPA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES To the Successor Agency of the Former Temecula Redevelopment Agency City of Temecula, California We have performed the procedures enumerated in Attachment A for the Other Redevelopment Agency Funds, which were agreed to by the California State Controller's Office and the State of California Department of Finance (State Agencies) solely to assist you in ensuring that the dissolved redevelopment agency is complying with Assembly Bill 1484, Chapter 26, Section 17's amendment to health and safety code 34179.5. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Management of the successor agency is responsible for providing all the information obtained in performing these procedures. The sufficiency of these procedures is solely the responsibi�ity of those parties specified in the report. Consequently, we make no representations regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. As stated above, the scope of this engagement was limited to performing the procedures identified in Attachment A, which specified the "List of Procedures for the Due Diligence Review" obtained from the California Department of Finance Website. The results of the procedures performed are identified in Attachment B1 through B11. We were not engaged to and did not conduct an audit, the objective of which would be the expression of a certified opinion as to the appropriateness of the results of the procedures performed. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to the Successor Agency. This report is intended solely for the information and use of the Successor Agency Oversight Board, the Successor Agency and the applicable State Agencies, and is not intended to be, and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record. �, �� -�° , �� Brea, California November 26, 2012 Lance, Soll & Lunghard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 • Fax: 714.672.0331 www.lsicpas.com Orange County • Temecula Valley • Silicon Valley ATTACHMENT A List of Procedures for Due Diliqence Review of the Other Redevelopment Agency Funds 1. Obtain from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed-Upon Procedures (AUP) report the amount of the assets transferred to the SuccessorAgency as of that date. 2. If the State Controller's Office has completed its review of transfers required under both sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: a. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agencys enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. b. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to the city, county, or city and county that formed the redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. c. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. 3. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: a. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. b. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to any other public agency or private parties for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. c. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. 2 ATTACHMENT A (Continued) List of Procedures for Due Diliqence Review for the Other Redevelopment Aqencv Funds (Continued) 4. Perform the following procedures: a. Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency in �the format set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the financial transactions should be presented using the modified accrual basis of accounting. End of year balances for capital assets (in total) and long-term liabilities (in total) should be presented at the bottom of this summary schedule for information purposes. b. Ascertain that for each period presented, the total of revenues, expenditures, and transfers accounts fully for the changes in equity from the previous fiscal period. c. Compare amounts in the schedule relevant to the fiscal year ended June 30, 2010 to the state controller's report filed for the Redevelopment Agency for that period. d. Compare amounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. 5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When this procedure is applied to the Low and Moderate Income Housing Fund, the schedule attached as an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that assumed the housing function previously performed by the former redevelopment agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. The listing should be attached as an exhibit to the appropriate AUP report. 6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that are restricted for the following purposes: a. Unspent bond proceeds: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures, amounts set aside for debt service payments, etc.). ii. Trace individua� components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use � of the balances that were identified by the Successor Agency as restricted. b. Grant proceeds and program income that are restricted by third parties: i. Obtain the Successor Agencys computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). 3 ATTACHMENT A (Continued) List of Procedures for Due Diliqence Review for the Other Redevelopment Aqencv Funds (Continued) iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. c. Other assets considered to be legally restricted: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by Successor the Agency as restricted. d. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of time for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. 7. Perform the following: a. Obtain from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or otherwise availablefor distribution (such as capital assets, land held for resale, long-term receivables, etc.) and ascertain if the values are listed at either purchase cost (based on book value reflected in the accounting records of the Successor Agency) or market value as recently estimated by the SuccessorAgency. b. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously audited financial statement (or to the accounting records of the Successor Agency) and note any differences. c. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions (this generally is not expected to occur), inspect the supporting documentation and note the circumstances. d. If the assets listed at 7(A) are listed at recently estimated market value, inspect the evidence (if any) supporting the value and note the methodology used. If no evidence is available to support the value and\or methodology, note the lack of evidence. 8. Perform the following: a. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain from the SuccessorAgency an itemized schedule of asset balances (resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and perform the following procedures. The schedule should identify the amount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal document that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payment of that obligation. i. Compare all information on the schedule to the legal documents that form the basis for the dedication or restriction of the resource balance in question. 4 ATTACHMENT A (Continued) List of Procedures for Due Diliqence Review for the Other Redevelopment Aqencv Funds (Continued) ii. Compare all current balances to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. iii. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule approved by the California Department of Finance. iv. Attach as an exhibit to the report the listing obtained from the Successor Agency. Identify in the report any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. b. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements and perform the following procedures: i. Compare the enforceable obligations to those that were approved by the California Department of Finance. Procedures to accomplish this may include reviewing the letter from the California Department of Finance approving the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012 and for the six month period July 1, 2012 through December 31, 2012. ii. Compare the forecasted annual spending requirements to the legal document supporting each enforceable obligation. a. Obtain from the Successor Agency its assumptions relating to the forecasted annual spending requirements and disclose in the report major assumptions associated with the projections. iii. For the forecasted annual revenues: a. Obtain from the Successor Agency its assumptions for the forecasted annual revenues and disclose in the report major assumptions associated with the projections. c. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and apply the following procedures to the information reflected in that schedule. i. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. ii. Obtain the assumptions for the forecasted propertytax revenues and disclose major assumptions associated with the projections. iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose major assumptions associated with the projections. d. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances necessary for retention in order to meet the enforceable obligations by performing the following procedures. 5 ATTACHMENT A (Continued) List of Procedures for Due Diliqence Review for the Other Redevelopment Apencv Funds (Continued) i. Combine the amount of identified current dedicated or restricted balances and the amount of forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations. ii. Reduce the amount of total resources available by the amount forecasted for the annual spending requirements. A negative result indicates the amount of current unrestricted balances that needs to be retained. iii. Include the calculation in the AUP report. 9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying (1) any dollar amounts of existing cash that are needed to satisfy that obligation and (2) the Successor Agency's explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachment to the AUP report. 10. Include (or present) a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. Amounts included in the calculation should agree to the results of the procedures performed in each section above. The schedule should also include a deduction to recognize amounts already paid to the County Auditor-Controller on July 12, 2012 as directed by the California Department of Finance. The amount of this deduction presented should be agreed to evidence of payment. The attached example summary schedule may be considered for this purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund and for all other funds combined (excluding the Low and Moderate Income Housing Fund). 11. Obtain a representation letter from Successor Agency management acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachments to the report. Included in the representations should be an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. ManagemenYs refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. 6 Procedure 1 ATTACHMENT 61 List of Assets Transferred from the Former Redevelopment Agency to the Successor Agency Other Redevelopment Agency Funds As of February 1, 2012 Asset Balance at 2/1/2012 Cash and investments $ 430,027 Cash and investments with trustee 2,516,103 Receivables: Interest 29 Loans 936,250 Due from other funds 505,000 Land held for resale 98,484 Total Assets transferred: $ 4,485,893 � Procedure 2 ATTACHMENT 62 Listing of Transfers (Excluding Payments for Goods and Services) to the City Other Redevelopment Agency Funds For the Period from January 1, 2011 through June 30, 2012 Enforceable Obligation (EO)/ Legal Other Legal Documentation • Describe Purpose of Transfer Requirement (LR) Amount Obtained? (Y/N) From former Redevelopment Aqencv to Citv for Januarv 1, 2011 throuqh Januarv 31 2012 No transfers were made to the City during this time period or they were de minimis. From Successor Aqencv to Citv for Februarv 1, 2012 throuqh June 30, 2012 No transfers were made to the City during this time period or they were de minimis. w Procedure 3 ATTACHMENT 63 Listing of Transfers (Excluding Payments for Goods and Services) to Other Public Agencies or Private Parties Other Redevelopment Agency Funds ' For the Period from January 1, 2011 through June 30, 2012 Enforceable Obligation (EO)/ Legal Other Legal Documentation Describe Purpose of Transfer Requirement (LR) Amount Obtained? (Y/N) From former Redeveloament Aqencv to other qublic aqencies or private parties for Januarv 1 2011 throuqh Januarv 31 2012 No transfers were made to the other public agencies or private parties during this time period or they were de minimis. From Successor Aqencv to other public aqencies or private parties for Februarv 1 2012 throuqh June 30 2012 No transfers were made to the other public agencies or private parties during this time period or they were de minimis. � , Procedure 4 ATTACHMENT 64 Summary of the Financial Transactions of Redevelopment Agency and Successor Agency All Funds Per schedule attached to List of Procedures for Due Diligence Review Redevelopment Redevelopment Redevelopment Successor Agency Agency Agency Agency 12 Months Ended 12 Months Ended 7 Months Ended 5 Months Ended 6/30/2010 6/30/2011 1/31/2012 6/30/2012 Assets (modified accrual basis) Cash and investments $ 9,865,818 $ 7,432,521 $ 5,674,922 $ 4,842,658 Cash and investments with trustee 10,174,371 25,314,996 21,357,499 18,426,753 Receivables: Tax increment 76,377 9,371 - - Interest 41,668 31,781 2,473 15,765 Loans 16,163,300 19,046,035 18,277,623 218,680 Contracts 845 - - - Due from other governments - 3,179 - - Unearned revenues - - - - Advances to other funds - 5,250,954 5,250,954 - Due from other funds 4,354,450 - - - � Other assets 11,597 - 168,417 - Land held for resale 6,714,661 6,714,661 4,400,388 98,484 Total Assets $ 47,403,087 $ 63,803,498 $ 55,132,275 $ 23,602,340 Liabilities (modified accrual basis) Accounts Payable $ 130,024 $ 105,542 $ 4,069,980 $ 397,155 Deposits from others - 68,307 50,000 - Due to City - 34,967 - - Deferred revenue . - 18,699,052 17,945,192 - Advances from other funds - 5,250,954 1,270,684 Due to other funds 4,354,450 - 505,000 Other liabilities 16,125,470 - - - Accrued liabilities - 25,604 30,413 - Total Liabilities 20,609,944 24,184,426 23,871,269 397,155 Equity 26,793,143 39,619,072 31,261,006 23,205,185 Total Liabilities + Equity $ 47,403,087 $ 63,803,498 $ 55,132,275 $ 23,602,340 Procedure 4 ATTACHMENT B4 Summary of the Financial Transactions of Redevelopment Agency and Successor Agency All Funds P schedule attached to List of Procedures for Due Diligence Review Total Revenues: $ 35,400,766 $ 37,502,267 $ 7,650,919 $ 4,160,897 Total Expenditures: 46,168,603 24,676,338 19,129,533 5,466,277 Total Transfers: - - - 24,510,565 Net change in equity (10,767,837) 12,825,929 (11,478,613) 23,205,185 Beginning Equity: 37,560,980 26,793,143 39,619,072 - Ending Equity: $ 26,793,143 $ 39,619,072 $ 28,140,459 $ 23,205,185 Other Information (show year end balances for all four periods presented): Capital assets as of end of year $ 14,976,130 $ 38,434,332 $ 35,912,846 $ 38,654,969 Long-term debt as of end of year 77,224,020 92,203,001 91,608,215 94,848,114 � Procedure 5 ATTACHMENT B5 Listing of All Assets Other Redevelopment Agency Funds As of June 30, 2012 Assets Amount Cash with fiscal agent 380-1040 Cash/Invest with Fiscal Agent $ 1,515,848 TOTAL CASH WITH FISCAL AGENT: $ 1,515,848 Interest receivable 380-1260 Interest Receivable 1,702 TOTAL INTEREST RECEIVABLE: 1,702 Notes receivable 380-1530 Note Rec - Auto Mall • 218,680 TOTAL NOTES RECEIVABLE: 218,680 Land held for resale 380-1700 Land Held for Resale 98,484 TOTAL LAND HELD FOR RESALE: 98,484 N Capital Assets 380-1900 Land 3,819,108 380-1960 Furniture & Fixtures 7,7gp 380-1965 Accumulated Depr - Furniture & Fixtures (7,780) 380-1920 Buildings 35,266,726 380-1925 Accumulated Depr - Buildings (800,744) 380-1992 Parking Lot (298,326) 380-1988 Accumulated Depreciation Pavement (190,838) 380-1903 Accum Depreciation Pavement Park Improvements (17,500) TOTAL CAPITAL ASSETS: 37,778,426 TOTAL ASSETS AT 6/30/2012: $ 39,613,140 Procedure 6 ATTACHMENT 66 Listing of Assets that are Restricted Other Redevelopment Agency Funds As of June 30, 2012 Legal Documentation Documentation Item # Description Referenced Amount Purpose Obtained? (Y/N) 1 Cash with fiscal Agent a) Reserve Account-2002 Bond Surety 380-1040 $ 1 Held in trust by fiduciary per bond restrictions Y a b) Reserve Account-2006A Bond Insurance 380-1040 1 Held in trust by fiduciary per bond restrictions Y a c) Reserve Account-2006B Bonds 380-1040 202,118 Held in trust by fiduciary per bond restrictions Y a d) Reserve Account-2007 Bonds 380-1040 1,104,096 Held in trust by fiduciary per bond restrictions Y a 2 Unspent bond proceeds a) 380-1040 380-1040 209,632 Set Aside for Construction of Infrastructure Projects Y b TOTAL: $ 1,515,848 a Trustee statements b Bond documents restricts use of proceeds > W Procedure 7 ATTACHMENT B7 Listing of Assets That Are Not Liquid or Otherwise Available for Distribution Other Redevelopment Agency Funds As of June 30, 2012 Variance Noted? Item # Description Reference Amount Value Method (Y/N) 1 Capital Assets a) Land 380-1900 $ 3,819,108 Cost N b) Furniture & Fixtures 380-1960 7,780 Cost N c) Accumulated Depr - Furniture & Fixtures 380-1965 (7,780) Cost N d) Buildings 380-1920 35,266,726 Cost N e) Accumulated Depr - Buildings 380-1925 (800,744) Cost N f) Parking Lot 380-1992 (298,326) Cost N g) Accumulated Depreciation Pavement 380-1988 (190,838) Cost N h) Accum Depreciation Pavement Park Improvements 380-1903 (17,500) Cost N 2 Land Held for Resale a) Land Held for Resale 380-1700 98,484 Cost N 3 Long-term receivable a) Note Rec - Auto Mall 380-1529 218,680 Cost N � 4 Interest receivable a) Interest Receivable 380-1260 1,702 Market N TOTAL RESTRICTIONS OF NON-CASH ITEMS $ 38,097,292 Procedure 8a ATTACHMENT B8a Listing of Assets (resources) that are dedicated or restricted for the funding of enforceable obligations Other Redevelopment Agency Funds As of June 30, 2012 Amount Restricted for Amount Paid in Obligation for Legal Approved Period Ending June 30, 2012 Documentation Item # Project Name Reference Obligation Amount June 30, 2012 Balance Obtained? (Y/N) RDA Project Area 1 CSUSM Campus Funding Agreement All, ROPS II, Item 9 $ 471,624 $ 50,000 $ 421,624 Y $ 471,624 $ 50,000 $ 421,624 � � Procedure 8b ATTACHMENT B8b Listing of Assets (resources) that need to be retained due to insufficient funding for the funding of enforceable obligations Other Redevelopment Agency Funds As of June 30, 2012 Amount Needed to Approved Designated Amount be Retained from Legal Obligation Plus Estimated Revenue June 30, 2012 Documentation Item # Project Name Reference Amount Future Revenues Source Balance Obtained? (Y/N) No items to retain. � rn Procedure 8c ATTACHMENT B8c Listing of Assets (resources) that need to be retained due to projected insufficient property tax revenues for bond debt payments Other Redevelopment Agency Funds As of June 30, 2012 Amount Needed to Estimated be Retained from Legal Approved Future Revenue June 30, 2012 Documentation Item # Project Name Reference Obligation Amount Revenues Source Balance Obtained? (YIN) No items to retain. � � Procedure 9 ATTACHMENT B9 Listing of Assets (resources) that need to be retained due to projected insufficient property tax revenues for future ROPS Other Redevelopment Agency Funds As of June 30, 2012 Estimated Amount Needed to be Identified on Approved Future Revenue Retained from June the ROPS 2 Item # Project Name Reference Obligation Amount Revenues Source 30, 2012 Balance or 3? No items to retain. � Procedure 10 ATTACHMENT B10 Summary of Other Redevelopment Agency Funds Available for Allocation to Affected Taxing Entities Total amount of assets held by the successor agency as of June 30, 2012 (procedure 5) $ 39,613,140 Add the amount of any assets transferred to the city or other parties for which an enforceable obligation with a third party requiring such transfer and obligating the use of the transferred assets did not exist (procedures 2 and 3) To City - To other parties - Less assets legally restricted for uses specified by debt covenants, grant restrictions, or restrictions imposed by other governments (procedure 6) (1,515,848) Less assets that are not cash or cash equivalents (e.g., physical assets) -(procedure 7) (38,097,292) Less balances that are legally restricted for the funding of an enforceable obligation (net of projected annual revenues available to fund those obligations) -(procedure 8) (421,624) Less balances needed to satisfy ROPS for the 2012-13 fiscal year (procedure 9) _ cfl Less the amount of payments made on July 12, 2012 to the County Auditor-Controller as directed by the California Department of Finance _ Amount to be remitted to county for disbursement to taxing entities $ (421,624)