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Home My WebLink About2006-2007 State Controller’s Report Comprised of Information r Council/Agency Meeting Held:_ / U Deferred/Continued to: App ve ❑ Conditionally Approved ❑ Denied ity Jerk' Signat e Council Meeting Date: 3/17/2008 Department ID Number: ED 08-09 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT N Y MEMBERS 1 SUBMITTED BY: PAUL EMERY, INTERIM EXECUTIVE DIRECTOR PREPARED BY: STANLEY SMALEWITZ, DEPUTY EXECUTIVE DI , ECTOR 94 SUBJECT: Receive and File: 2006-2007 State Controller Report Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Section 33080.1 of the State of California Health and Safety Code ("Redevelopment Law") requires that the Redevelopment Agency (Agency) prepare an Annual Report that is sent to the State Controller's Office within 180 days following the end of the public entity's fiscal year. The report for the fiscal year of 2006/2007 is now being submitted to the Redevelopment Agency for formal receipt and filing, prior to the report being submitted to the State Controller's Office. Fundinq Source: Not applicable. Recommended Action: Motion to: 1. Receive and File the 2006-2007 State Controller's Report. Alternative Action(s): Not Applicable. REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: 3/17/2008 DEPARTMENT ID NUMBER: ED 08-09 Analysis: The Redevelopment Agency is required to annually submit its State Controller's Report to the State Controller's Office (SCO). The report being submitted is comprised of information regarding the Agency's financial transactions, blight progress, as well as loan, property and housing activities for the fiscal year of 2006/2007. A copy of the Agency's audit must be sent to the State Controller as part of the report. Staff will also generate an online version of the report which will be submitted electronically to the California Department of Housing and Community Development (HCD). This information is used at the State level to monitor the Agency's activities and report on the progress of redevelopment, affordable housing projects and financing throughout California. The Economic Development and Finance Department staff jointly prepared the report which must be received by the Redevelopment Agency. Strategic Plan Goal: By making information available to the public regarding the Agency's activities and the progress of redevelopment and affordable housing projects, the Agency is helping to achieve the following strategic goal: "Increase community involvement, dialogue, and outreach by educating residents about opportunities for involvement such as how to donate to projects, volunteer, access information, and offer opinions through the website and other means." Environmental Status: Not applicable. Attachment(s): ' . .- Number N s S- • o 1. 2006-2007 State Controller's Report (financial transactions and blight progress) 2. Housing Activity Report -2- 2/28/2008 2:37 PM ATTACHMENT # 1 2006-2007 STATE CONTROLLER'S REPORT (FINANCIAL) • Redevelopment Agencies Financial Transactions Report Cover Page • Redevelopment Agencies Financial Transactions Report • Supplement to Report for US Bureau of the Census • Additional Reports o Redevelopment Agency of the City of Huntington Beach Activities 2006-2007 o Blight Progress Report o Loan Report o Property Report • Statement of Indebtedness-Consolidated Report REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Entity Name: Redevelopment Agency Of The City of Huntington Beach Fiscal Year 2008 ID Number: 13983037600 Submitte by:,,, Deputy Executive Director Redevelopment Agency SignaturV Title Stanley Smalewitz Name(Please Print) Date Per Health and Safety Code section 33080,this report is due vnthin 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 address Transfer Protocol(FTP)program or via diskette 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 unfit receipt of this signed cover page Mailing Address: Express Mailing Address: State Controller's Office State Controller's Office Division of Accounting and Division of Accounting and Reporting Reporting Local Government Reporting Section Local Government Reporting Section 3301 C Street, Suite 700 P. O. Box 942850 Sacramento, CA 95816 Sacramento, CA 94250 T� 'JOYATTO All,,,., ,,, no Z , "I" General Information Fiscal Year 2008 f 7 Agency Officials Members of the Governing Body Middle Middle Last'Name' First Name Initial Phone Last Name First Name InItW Chairperson �'Cook Debbie Executive Director 'Emery j Paul 1 1 (714)536-5482 1 carchio �joe Fiscal,officer, Member i �IVlllella 'Dan 1(714)536-5225 Member 1Bohr Keith Si6ret.a-ry Flynn Joan j j �(714)536-5404 Member, �Coerper IGil .................................................. Report Prepared By Independent Auditor Member` [Green �Cathy Firm,Name' Memb ' i �Diehl, Evans and Company, LLP Member !,Hansen 'Don Last �Bulosan (Patel Member !Hardy Jill First Dahle 'Nitin Member Middle Initial Member Street 2000 Main Street '2121 Alton Parkway,Suite 100 Member City Huntington Beach :Irvine State !CA !CA Mailing Address , 11 1 1 Z�ip Code 192648- �92606-4956 Street 1 12000 Main Street Phone 1(714)536-5648 �(949)399-0600 Street 2 1 City Huntington Beach State ICA Zip 62648-i Phone FW Is Address Changed? General Information Page 1 2/27/2008 WK 4chl'ev'ernent 00'ematidiiii(Unaudited) Fiscal Year 2008 Indicate Only Those Achievements Completed During the Fiscal Year of this Report as a Direct Result of the Activities of the Redevelopment Agency. Please provide a description of the agency's Square Footage Completed activities/accomplishments during the past Enter the amount of square year footage completed this year by (Please be specific, as this information will building type and segregated by New Rehabilitated be the basis forpossible inclusion in the new or rehabilitated construction, Construction publication.) AbtjVity Repo Commercial Buildings 60,278 During this year the Redevelopment Agency of the City of Huntington Beach Industrial Buildings continued to implement the projects that were described in the Implementation Public Buildings 12,000 Plans and the Ten Year Housing Compliance Plan, namely- Other Buildings HUNTINGTON BEACH PROJECT(MERGED AREA) F Square Footage The Strand(Blocks 104-105 in the Main Pier sub area) Total0 Pacific City Enter the Number of Jobs Created Surf City Nights from the Activities of the Agency Bella Terra Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Types Completed ACIDE Corridor Downtown Specific Plan(DTSP)and Downtown Parking Master Plan A=Utilities B=Recreation C=Landscaping D=Sewer/Storm E=Streets/Roads Hyatt Regency Huntington Beach Resort and Spa F=Bus/Transit Capital Improvements and Facilities SOUTHEAST COASTAL PROJECT Utility Undergrounding Magnolia Sidewalk& Pedestrian Lighting Seawater Desalination Facility HOUSING Habitat for Humanity(Patterson Site) Jamboree Housing 1, 11,and III Garfield and Delaware Affordable Housing Project Each of these projects are more fully described in subsequent sections of this report Achievement Information(Unaudited) Pag6 1 3/3/2008, - 'MOM, Achievement Information(Unaudited) Achievement Information(Unaudited) Page 2 =3/3/2008 41r --nmq p!p R oi R a O ell, -W e all o Audit Inf6rinriiatio' n Fiscal Year 2008 Was the Report Prepared from Audited Financial Data, Yes_� If compliance opinion includes exceptions, state the areas of non-compliance,and and Did You Submit a Copy of the Audit? describe the agency's efforts to correct, Indicate Financial Audit Opinion Unqualified! �The Agency did not submit required reports to If Financial Audit is not yet Completed,What is the �the legislative body within six months of fiscal I Expected Completion Date? !year end date of September 30,2006. If the Audit Opinion was Other than Unqualified,State 'The Agency will submit reports for fiscal year Briefly the Reason Given lend date of September 30,2007 by March 31, 2008. Was a Compliance Audit Performed in Accordance with Yes Health and Safety Code Section 33080,1 and the State Controller's Guidelines for Compliance Audits,and Did You Submit a Copy of the Audit? Indicate Compliance Audit Opinion Unqualified If Compliance Audit is not yet Completed,What is the Expected Completion Date? Audit Information Pagel 3/3/2008 rf - �! "Rea r F. "� W ' i,P WWUW ' W0O N " Project Area Report Fiscal Year 2008 Project Area Name Consolidated Low and Moderate Income �Housing Funds Please Provide a Brief Description of the Activities for this Project Area Forwarded from Prior Year? V71:_71 During the Reporting Year, Enter Code for Type of Project Area Report L ACti�i P=Standard Project Area Report A=Administrative Fund 1.Habitat for Humanity(Patterson L=Low and Moderate Income Housing Fund M=Mortgage Revenue Bond Program Delaware site)--The 0=Other Miscellaneous Funds or Programs S=Proposed(Survey)Project Area Redevelopment Agency has Does the Plan Include Tax Increment Provisions? acquired a vacant parcel at 1854 Patterson Lane for$522,500 using Date Project Area was Established (MM-DD-YY) Housing Set Aside funds for a Habitat for Humanity project,Two Most Recent Date Project Area was Amended single family homes will be built on Did this Amendment Add New Territory? the site The original plan was to install two manufactured homes on Most Recent Date Project Area was Merged the site however the company Yes offering the homes withdrew their Will this Project Area be Carried Forward to Next Year? offer due to economic reasons.The Established Time Limit homes will now be conventional built homes following the Habitat for Repayment of Indebtedness (Year Only) Humanity model of the homeowners contributing sweat equity. Effectiveness of Plan (Year Only) 2 Jamboree Housing 1, 11,and III-- New Indebtedness (Year Only) The Agency and City of Huntington Beach assisted Jamboree Housing Size of Project Area in Acres Corporation,an Orange County Percentage of Land Vacant at the Inception of the Project Area based non-profit housing developer Health and Safety Code Section 33320.1 (xxx%) and designated CHDO(Community Housing Development Organization), Percentage of Land Developed at the Inception of the Project Area to acquire and rehabilitate two five- Health and Safety Code Section 33320.1 (xx.x%) Alex apartment buildings in the Oakvlew sub-area This represents Objectives of the Project Area as Set Forth in the Project Area Plan the first acquisition/rehab projects developed in the City of Huntington (Enter the Appropnate Code(s)in Sequence as Shown) R=Residential I =Industrial C=Commercial P=Public 0=Other Project Area Report Page 1 3/3/2008 '� ,;n 3Taw. ;,:,..,ti:na „�,°',ku.i�r a^wwx"a,r->r,7; t..: ,,., i:�i�� <, .sa�+\.`�Xy e, fie, ;,t'""Y� ,✓" ".�« Y. i' � tE: �,., �r YgrH �',t �,rF ,.mR£�<2'P2" 3. ,. 3{^ .N-xr< _„';�'.,, aa s�'i`�.�b', r °„�;'"�4 ,- ,.< .r �'}`34^kr.�!+„R.din,>w.,, „ <:v •^ „,c, " 'a�9"^'* Project Area Report Fiscal Year 2008 Project Area Name ;Huntington Beach Redevelopment Project ,;Area No. 1 i Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Forwarded from Prior Year? Enter Code for Type of Project Area Report P AotiyitY Rpo� P=Standard Project Area Report A=Administrative Fund 1 The Strand is a multi-use project L=Low and Moderate Income Housing Fund M=Mortgage Revenue Bond Program developed by CIM Group on a 3-acre 0=Other Miscellaneous Funds or Programs S=Proposed(Survey)Project Area site in the downtown core. With Does the Plan Include Tax Increment Provisions? Yes views of Huntington Beach and the pier it is located on Pacific Coast Date Project Area was Established (MM-DD-YY) 12/16/1982, Highway, north of Main Street. Sixth Implementation Agreementt Most Recent Date Project Area was Amended 8/5/2002j and the 33433 Report are scheduled Did this Amendment Add New Territory? No! to be presented to the Redevelopment Agency in spring Most Recent Date Project Area was Merged 2008.The Strand's four distinct Yes' buildings will be linked by open-air Will this Project Area be Carried Forward to Next Year? pedestrian walkways. The Strand Established Time Limit will offer approximately 110,000 square feet of retail and office Repayment of Indebtedness (Year Only) 20341 space, The Shorebreak Hotel is a - 1 157 room luxury boutique hotel Effectiveness of Plan (Year Only) 2024 operated by Joie de Vivre New Indebtedness (Year Only) 20241 Hospitality. Ample parking will be provided in a subterranean structure. Size of Project Area in Acres 6191 Retail tenants include Forever Percentage of Land Vacant at the Inception of the Project Area 5 0 21/Forever Love,CVS,and Active Health and Safety Code Section 33320.1 (xx.x%) Ride Shop Dining options include Johnny Rockets,RA Sushi, New Percentage of Land Developed at the Inception of the Project Area 95.0� Zealand Natural Ice Cream,and Coffee Bean&Tea Leaf, The Health and Safety Code Section 33320.1 (xx x%) development is scheduled to open in Objectives of the Project Area as Set Forth in the Project Area Plan RCPO the fall of 2008. 2. Pacific City is being developed by (Enter the Appropriate Code(s)in Sequence as Shown) R=Residential I =Industrial C=Commercial P=Public 0=Other Project Area Report Page 2 3/3/2008 — ^ 1,40� ' . ��fTb 12 �� . _ ProjmctA,woRmpod . ^ Fiscal Year 3008 ProjectAmamNmn�� mdhmaat �qmmt�| Rwdmve|opmn�ntPm�ect - ' . . Please Provide Brief Description of the Activities for this Project Area During the Reporting Year, Forwarded from Prior Year? Li Enter Code for Type of Project Area Report P! P=Standard Project Area Report A=Administrative Fund L=Low and Moderate Income Housing Fund M=Mortgage Revenue Bond Program California Edison is taking the lead O=Other Miscellaneous Funds u,Programs G=Proposed(Svmoy)Project Area in doing the design work for under- ' Does the Plan Include Tax Increment Provisions? / Y°°grounding the Edison utilities along | / — / PCH and is working with City staff, Date Pnqe�Amawas Es�b|mhod @NN��[-M� � \�1n2oU21 CalTrans,and the California State -- Beaches Department, ' MostRecentDate Project A�owas Amended2 Seawater Desalination Facility | '— — � Did this Amendment Add New Territory?The Redevelopment Agency approved an Owner Participation Most Recent Date Project Area was Merged | / — Agreement(OPA),dated February 27,2006,with Poseidon Resources r Yes W��Pmjo�A�aboCa�odrm�m�mmo�Ye�7 Corporation to provide for the Established Time Limitdevelopment of a seawater desalination plant on property leased Repayment ofIndebtedness (Year Only) 204 from the AES Corporation The Eeeo vonmsofP�n ��On�/ � 2032 Agreement containing the covenants affecting the real property was New Indebtedness (Year Only) | 2022 recorded— — — — —— — AES is'in G/zoofPn4oc�A��inAo�m 1r2 the process of mi � ] tanks on this property. Percentage nf Land Vacant a¢the Inception of the Project Area ' 14,41 3.Magnolia Street Sidewalk& Lighting--The construction of a Health and Safety Code Section 33320.1 (xx.x%) sidewalk and installation m Percentage of Land Developed at the Inception of the Project Area | e5.61 pedestrian lighting nn both sides nf �ogno|ia�t,m��induded/n�ho Health and Safety Code 3ect�n3332O1 Axx%V Capital Improvement Program (C|p) Objectives of the Project Area a»Set Forth m the Project Area Plan | POI fo r ' ' | (Enter the Appropriate Cone($m Sequence aoShown) | R=Reoidenoa| | =|nduxtrio| C=Commercial P=pub|ic O=Other Project Area Report '�Pmgo3 `. ` . �y"�ri"Ev,�' 4bv.* ,r '•,,h� •., :��£� '+�Y`rT�n`Rgi 4�� 4��`,��lii�"f"�, ki ;�'6IE�A,vt,F•�„sRK�l.,Ii�'��ia�l�!ifi+li�o �y+�i/{k>,, �,�„ 5"'t"� "� 1'�;+P r�. „"� `b: .,�;�� Via.+�H.r;>�.� '?r ;��f��pJo� "��P? � X";n;.%x*' a'u�` ',=�m✓,�' ^`�d ��5'` ,p.: , Assessed Valuation Data Fiscal Year 2008 Protect Area Name Huntington Beach Redevelopment Protect Area No. 1 Frozen Base Assessed Valuation 158,107,405 Increment Assessed Valuation 1,403,932,607 Total Assessed Valuation 1,562,040,012 Assessed Valuation Data Page 1 2/27/2008 9A.0 NOW Assessed Valuation Data Fiscal Year 2008 Project Area Name (Southeast Coastal Redevelopment Project Frozen Base Assessed Valuation 103,733,75 Increment Assessed Valuation 28:194:321 Total Assessed Valuation 131,918.076 Assessed Valuation Data Page 2/2712008 Mr N", .............. Pass-Through I School District Assi,stance, Fiscal Year ;2008 Project Area Name Huntington Beach Redevelopment Project Area No. 1 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 365,478 i 5�F,4-778 . .......... Cities 253,78311 $253,783 School Districts j 755,2521 Community College District 172,400 T Special Districts 65,7871, Total Paid to Taxing $0 $1,612,700 $0 $1,612,700 $0...... ..... $0 Agencies Net Amount to Agency $13400247 ,Gross Tax Increment mi' 15,012,947 4"W, Generated Pass-Through/School'District Assistance Page 1 --M A '%? -�'�.:" 'p 3€,'`,'�'�x�;nr. Sn ."�- ,�� f?�'=,.'.>''^,�ai`">'" i�,,�� m, ' - =�'�'R� _v ��rl :,�2s�� / =:&^�a��.�i`�:2.w<'!"'°i.>'�.;�.s�.;":'i��''c:�.;1�>�eu Pass-Through School District Assistance Fiscal Year 12008 Project Area Name ;Southeast Coastal Redevelopment Project 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 7,1001 j5,100 &W Cities 10,3701 $10,370 School Districts 29,5001 7 0 J —I,Community College District 6,184 - $6,184 Special Districts 2,423 7$21423 'A" Total Paid to Taxing 55,577 $55,577 $0 17 7 $o Agencies `u I'M eii 606 Net Amount to Agency Gross Tax Increment 296,183 Generated Pass-Through School District Assistance, Page a �«°'�>rs � �� Y`�`'��.- f' �'%°'o{� ,-`�c�>!,-y,• al"�t., ��"rb�y'�;�;`a2Yrq",.F.�+:.,. �y-s <r�..,-�. a,,"�`y�",'&as;/-{�.°,; �pa;�vv,»�. }� ,< rNO. bA ", 3r;, Vs.� p, ` �`��'� `•' �� F� �^,r, ��;'h�� rP Y`.,,A S^v Mr.« �„fC�:�"� �4k^d�� .�, kS,�,�SrtF, .�>�ry,,n"„',A",�,r„�y �45fl;r, 'ate `�S,r �§n,��.x-u `:Ai'z>;?=c�"`'�%-'v'4`ay:,.v'- b%'.'"d�i`d�`> S � •be;� �a�N.>�"7y>,�� ';;a,.a+' >.� �� >>,S, `;. ,�v Rt�^>'' rha�r�°�`� Summary,,of the Statement of Indebtedness-Project Area Fiscal Year 2008 Project Area Name Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt Low and Moderate Income Housing Fund Other j Total Available Revenues Net Tax Increment Requirements Summary of the Statement of Indebtedness-Project Area Page 1 2/27/2008 'Aw SUrprnary of the,St terl Indebtedness-Project Area Fiscal Year 2008 Project Area Name Tax Allocation Bond Debt 39,739,660 Revenue Bonds Other Long Term Debt 8,197,516, City/County Debt 82,261,5171 Low and Moderate Income Housing Fund 37,0_28,166 Other 7,444,9041 Tote 1 $174,671,763 Available Revenues 2,269,562 Net Tax Increment Requirements Summary of the Statement of Indebtedness-Project Area Page 2 2/2712008 io "V -, r , 4 "'�OrAe 4111 NO` `kl' M-0 wh 000 409 Summary of the Statement 6flindebtedness'-'Pr"ect Area Project Fiscal Year 2008 ' 41" Project Area Name 5 Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt 7,312,583 Low and Moderate Income Housing Fund 1,828,146! Other Total Available Revenues 992,871 Net Tax Increment Requirements Summary of the-Statement-of I nde0todn,ess-Project Area, Pagia 3 2/27/2008 02 ft-IT I'T'No ompr A &A-41 1440.0" Agency Long-Term Debt Fiscal Year 12098 Project Area Name H-untingto-rill Beach Re-development Project Area No. I Forward from Prior Year W " _"T_"wMak"',W.11,10 "i'll Bond Type (city/County Debt I Year of Authorization 19821� Principal Amount Authorized 104,501,018 Principal Amount Issued 104,501,018 Purpose of Issue lProject Funding Maturity Date Beginning Year 2034, Maturity Date Ending Year 20341 Principal Amount Unmatured Beginning of Fiscal Year Adjustment Made During Year Adjustment Explanation Interest Added to Principal i 3,626,000 Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 1 3,360,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year P5,369,600 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-Throughs; Deferred Compensation,Other Agency Long-Term Debt page 1 2/27/2008 — P"" �EWE,! asasii'! F, Agency Long-Term Debt Fiscal Year 12_ 00_ 8 Project Area Name ;Huntington HUntington Beach Redevelopment Project Area No. 1 Forward from Prior Year Bond Type !Deferred Compensation Year of Authorization 2003;, Principal Amount Authorized 143,000! Principal Amount Issued 143,0001 Purpose of Issue Compensated Absences Maturity Date Beginning Year 2003j Maturity Date Ending Year I 2034 Principal Amount Unmatured Beginning of Fiscal Year F!F600 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year 20,000 Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $37,000 Principal Amount In Default Interest In Default J 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-Throughs;Deferred Compensation;Other ,Agency,Long,-Term t?ebt Pag6,2 2/27/2008 PJ W r , * W W; 1001 901-641, Agency Long-Term Debt Fiscal Year 2008 Project Area Name 'Huntington Beach Redevelopment Project Area No. 1 Forward from Prior Year 69azam Bond Type �Other Year of Authorization 19821 Principal Amount Authorized 35,0-00,000 Principal Amount issued _35,_000_,0_0,0 Purpose of Issue b-ther Maturity Date Beginning Year 2034i' Maturity Date Ending Year 2-034-1 Principal Amount Unmatured Beginning of Fiscal Year $8,69771 6 Adjustment Made During Year j -516 Adjustment Explanation irounding-difference Interest Added to Principal 496,000 1 Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 1,59 2,000J Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year z!:600 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-Throughs;Deferred Compensation:Other _J Agency Long-Term Debt Page 3 2/27/2008 - "q x :s�,�d `r. F .a "'"'+ /g�M*�e:, ^> �= /{�� ;yi, « ��ys�■,�yyy■y°'«{t� fi].{ Agency Long-Term Debt Fiscal Year j2008 Project Area Name Huntington Beach Redevelopment Project Area No. 1 Forward from Prior Year Bond Type Other Year of Authorization 20061 Principal Amount Authorized 15,000,000 Principal Amount Issued 15,000,000 Purpose of Issue !Bella Terra Parking Maturity Date Beginning Year 2007� Maturity Date Ending Year 20081 Principal Amount Unmatured Beginning of Fiscal Year $15,000,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal 2,062,000 Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 2,207,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $7855,000 Principal Amount In Default Interest In Default Bond Types Allowed:._,,. Tax Allocation Bonds; Revenue Bonds;Certificates of Participation;Tax Allocation Notes; Financing Authority Bonds;City/County Debt, US,State; Loans;Lease Obligations, Notes; Deferred Pass-Throughs; Deferred Compensation, Other __".___ Agency Long-Term Debt Page 4 ' 2/2V2008 x`",01 -'x' /.� ;; ��%'°,,.. fir#M1T ^. n! , si *" :,I.. >$ s,,„ ,e)y�, ,,,,, ,,,f rQ x:r«'r�'3 �"6'71f,>r r,xsS ,' z' ''< ,' •;'�' 'ta`r � i1 a. ,rs�,°4,.°' .,r:n4.x.+s,�x°', Agency Long-Term Debt Fiscal Year 12008 Project Area Name iHuntington Beach Redevelopment Project Area No, 1 Forward from Prior YearYE'" 7, Bond Type ITax Allocation Bonds Year of Authorization 1999 Principal Amount Authorized 10,835,000 Principal Amount Issued 10,835,000 Purpose of Issue Refinance 1992 Loan Maturity Date Beginning Year 19991, Maturity Date Ending Year 20251 Principal Amount Unmatured Beginning of Fiscal Year $8,155,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 365,000 j Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $7,790,000 Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds; Certificates of Participation;Tax Allocation Notes, Financing Authority Bonds,City/County Debt; US,State; Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation, Other 2/2712(i4$Agency long-Term Debt Rage 5 ` , .4 MEMO Agency Long-Term Debt Fiscal Year 12008 Project Area Name Huntington Beach Redevelopment Project Area No. 1 Forward from Prior Year Bond Type JTax Allocation Bon-ds Year of Authorization 2002 Principal Amount Authorized 20,900,000 Principal Amount Issued 26,90-0,0_6 0- Purpose of Issue R-efinance 1992 PFA Debt Maturity Date Beginning Year 200211 Maturity Date Ending Year 1 2024,1 Principal Amount Unmatured Beginning of Fiscal Year $17,910,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year I 8 15,0 00 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year 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-Throughs; Deferred Compensation;Other Agency Long-Term 06bt •Rage& 2/2,712008' wn�-rR-4�; ' na� 'WW "V 44' S-16'eik -A.WW".00- bi **6114"1'ANA If"R, Agency Long-Term Debt Fiscal Year I2_ 008 Project Area Name !Huntington Beach Redevelopment Project Area No. 1 Forward from Prior Year 'WAp -! -4 Bond Type !us Year of Authorization 2000,, Principal Amount Authorized 6,000,000! Principal Amount Issued 6,000,000 i Purpose of Issue !New Loan Maturity Date Beginning Year I 2000, Maturity Date Ending Year 2034� Principal Amount Unmatured Beginning of Fiscal Year $4,715,000— Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 235,0001 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year 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-Throughs;Deferred Compensation;Other Agency Long-Term Debt,_ Pagq,7 r 2/27/2008 Non-Ajen6j'L-'o'nq'-tirrr'Debt' Fiscal Year ;2008 Project Area Name Huntington Beach Redevelopment Project Area No. 1 . Forward from Prior Year DOW" M Bond Type Mortgage Revenue Bonds Year of Authorization 19911 Principal Amount Authorized 9 500,000 Principal Amount Issued I 9,500,000 Purpose of Issue lFine Pants Senior Complex Maturity Date Beginning Year 19911 Maturity Date Ending Year 20211 Principal Amount Unmatured Beginning of Fiscal Year 5:556:000 Adjustment Made During Year Adjustment Explanation Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year ff Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year Principal Amount in Default F Interest in Default Bond Types Allowed: Mortgage Revenue: Industrial Development;Commercial Revenue Bond; Certificate of Participation Page 1, 2/27/20q�Non-Agency Long=Tierm',Delbt '� �2;�'�<�•�,�a,;.. %y� ,9\�vs�'r,;F; �`m.b. '',�i„�."�a�^r„;`x:xa-s.,,,,r»crj' �,„ "�� ,�^°�,�:y^'��x � rp�;", �z'��'�':°`'�<:"�" 4� 'u - � .. u „ i�„1:2`"'?r5'`;;.``� .'i '*{i,kF ,c _'�v.. s^ 8 6avwppi?W^ it h"IF NM' n�,' .c•e„4i, rs'a;, �S .w; 'v�� _a�n �;�<,4 a, „a3&,?-' `�`sN§sY"e^-�s ��a.` w,hsd:.#e ky��l�;S„„.,.., „td a';.31'..d��,a4',0!w, °s,7;^�'fss�rk;,'`�SA�, u>s�a1" 1�"p�•,,,%'.^��'kr•.�'��3;„','�i„h.� ' - Nori-Agency Long-Term Debt ` " - Fiscal Year 2008 Project Area Name !Huntington Beach Redevelopment Project Area No. 1 Forward from Prior Year IXI7,7 Bond Type Mortgage Revenue Bonds Year of Authorization 1996' Principal Amount Authorized 16,000,000 Principal Amount Issued 16,000,000 Purpose of Issue 'Huntington Breakers Maturity Date Beginning Year 19961, Maturity Date Ending Year 20261 Principal Amount Unmatured Beginning of Fiscal Year 16707,000 Adjustment Made During Year Adjustment Explanation Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year j Principal Amount Unmatured End of Fiscal Year �$16,000,000 Principal Amount in Default j Interest in Default t Bond Types Allowed: I 1 Mortgage Revenue, Industrial Development:Commercial Revenue Bond,Certificate of Participation Non-Agrrncy LongwTerm Debt ' " ' Page 2 2/27/2008 - "71,4, PM, Statement of Income and Expenditures Revenues Fiscal Year 2008 Project Area Name !Consolidated Low and Moderate Income Housing Funds Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross $0 (Include All Apportionments) Special Supplemental Subvention $0 Property Assessments 0 Sales and Use Tax Transient Occupancy Tax $o Interest Income j 6-4-1,4641 $641,464 Rental Income $0 Lease Income .......... Sale of Real Estate Gain on Land Held for Resale 77777 Federal Grants j $0 t Grants from Other Agencies $0 Bond Administrative Fees -7 Other Revenues I 30 $30, ............................... ...... Total Revenues $o Statement of Income and Expenditures-Revenues Pagel 2/27/2008 Statement of Income and gxpqqdlt6res ' Revenues Fiscal Year 2008 Project Area Name Huntington Beach Redevelopment Project Area No. 1 Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross 15,012,947-1 7 (Include All Apportionments)Special Supplemental Subvention $0 Property Assessments AL 7" Trp Sales and Use Tax $0 Transient Occupancy Tax 5211 752 Interest Income 1,268,019 190,397 i T 7$1,458-,4116 Rental Income J $0 Lease Income 549,1661 M9 66 Sale of Real Estate 7,247 247 Gain on Land Held for Resale $0 Federal Grants I $_0 Grants from Other Agencies $0 Bond Administrative Fees f $0 Other Revenues 11,565,649 $1,565,649 15 , i ""119"'PT477 Total Revenues 6390,133 $ ,203M $0 0 Statement of Income and Expenditures-Revenues Page 21 2/27/2008 'NRAW k Statement of Income and Expenditures-Revenues Fiscal Year 2008 Project Area Name jSoutheast Coastal Redevelopment Project Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross 296,183 (Include All Apportionments) Special Supplemental Subvention .. ........... Property Assessments $0 Sales and Use Tax $0 Transient Occupancy Tax $0 Interest Income 41,3551 .............. .............. Rental Income $0 Lease Income $0 Sale of Real Estate 1 $0 Gain on Land Held for Resale j I $0 $0 Federal Grants Grants from Other Agencies $0 Bond Administrative Fees j DO Other Revenues $0 Total Revenues M$0 7,538 Statement of Income and Expenditures,-' Revenues page 3 2/271208" wwrgfrx .-" R"Mi. ma -Statement of Income and Expendltures�Expenditures Fiscal Year 112008 Project Area Name !Consolidated Low and Moderate Income Housing Funds Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs 119,0501 $119,050 Professional Services 86,1401 $86,140 Planning,Survey,and Design $0 Real Estate Purchases 408,282 j $408,282 Acquisition Expense so Operation of Acquired Property 0 Relocation Costs $0 Relocation Payments 0 Site Clearance Costs io Project Improvement/Construction Costs 925,611 T775:611 0 Disposal Costs 17 _77 T 7 Loss on Disposition of Land Held for 17 777'"""79 Resale Statement of Inc6me"and Expenditures- -Expenditures 1'-' -2/27/2q98, Statement of Income and Ox-p4nd'itu'res-Expenditures Fiscal Year i2008 Project Area Name 'Consolidated Low and Moderate Income Housing Funds Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resale 17" 7 TO,- " Rehabilitation Costs 7 io Rehabilitation Grants 0 .. ........ Interest Expense $0 Fixed Asset Acquisitions T Subsidies to Low and Moderate Income 70 Housing Debt Issuance Costs $0 Other Expenditures Including Pass- $0 Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes A Revenue Bonds,Certificates of Participation, Financing Authority Bonds ll 77737 City/County Advances and Loans All Other Lon Term Debt Total Expenditures $0 $0 $1,539,083 $0 $1,539,083 Excess(Deficiency)Revenues over 75 1 7 P T 7($89779) I 7_ 1 ($897,588),-' (under)Expenditures 2/27/2008 Statement of lncorrl�aand ET resx enditU Expenoitures',' Page 2 Statement of,incom' e and Expenditures-Expenditures Fiscal Year i2008 I - Project Area Name iH-unti_riaton--B-e-ach- Redevelopment Project Area No.-I. Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs 822,7871 366,450 Professional Services 653,189J 84,2_51 $737,440 Planning,Survey,and Design $0 - Real Estate Purchases 0 Acquisition Expense Operation of Acquired Property A I �0 0 Relocation Costs Relocation Payments 177.7 7 Site Clearance Costs $0 Project Improvement Construction Costs 360#2 ------- T T ------- "'70 Disposal Costs F- .. .... ........... Loss on Disposition of Land Held for T Resale Statement of Income and,Expenditures-Expenditures Pag6 3 2/27/2008 "v "0 4i"'j W '" IN "WW ? �o'Siatarn6ht of I'nc'o'me and Expenditures'---expenditures Fiscal Year i2008 Project Area Name (Huntington--Beach--Redevelopment--Project---Area----No.-l---- J Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resale s0 Rehabilitation Costs 17 Rehabilitation Grants 1 $0 Interest Expense j 1-15-40,440 Fixed Asset Acquisitions $0 Subsidies to Low and Moderate Income j $0 Housing Debt Issuance Costs $0 Other Expenditures Including Pass- 1,624,347 Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes L 1,18-0,0-00j 1_ 1,180,000 Revenue Bonds,Certificates of 0 Participation, Financing Authority Bonds City/County Advances and Loans I 3,360,0-00 - F W-755_7 7 73 473 '70 All Other Long-Term Debt 4,034,000] Total Expenditures 17 17 7"' 17- Excess(Deficiency)Revenues over 0 $4,537,988 (under)Expenditures Statement of Income and Expenditures-Expenditures Page 4'' 2/27/2008 . ^ � ' ��twm�ntof d .-`n � ' . . ' . Fiscal Year | - ' Project � ��rm� Name ou-- thmamt Coastal Redevelopment Project Capital Project Debt svmiue Low/Moderate sp=vie| Funds Funds Income Housing povonvoxJmo, Tvta| Administration Costs [ 7o4' - -- � -' � - 7 � � _ Professional Services --�-u*7�' --- ��-J - - - - - - -- - -- ' Planning, Survey,and Design [�- --'- - -T -- - - -- l- '---- --- -- ----- Real Estate Purchases |- - [ - -- l - - _ ' r - -'' - - � � -- - - - -- - - -�- — - -- Acquisition Expense $O Operation of Acquired Property [ - |_ | | - RelonamonCuots | � so Relocation Payments S|teQ=aranowCnots �w . Project Improvement/Construction Costs | ' Disposal Costs | � / � $0 � Loss on Disposition uf Land Held for *o . Resale Statemont#flnoum F"*��o� U�� ' ' ' �`��°s ` '�`/` `' r ` '�- / ^ ' , -` -2/27/2008 '�r� "4' "s�_ '` •ra;w /� ,y �( _ �'z fir, Y; �,r;:-��.• �v� ;a ,.��,��a�;s �,, �„�i�', «�'�«,;,,,�_ far ",'� «rda, .,>,�i«�„k>ao«�a„�, �,;« ��or ,s<«,s. �e �-^ m� U,. 1�,�,r<„ Statement of Income and Expenditures-Expenditures Fiscal Year 12008 _ Project Area Name Southeast Coastal__Redevel_op_m_ent Project _ - _ Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Totai Decline in Value of Land Held for Resale Rehabilitation Costs I $0 Rehabilitation Grants j $0 ............... Interest Expense $0 Fixed Asset Acquisitions I $0 Subsidies to Low and Moderate Income � $0 Housing Debt Issuance Costs $0 Other Expenditures Including Pass- 55,578 $55,578 Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes $0 Revenue Bonds, Certificates of $0 Participation, Financing Authority Bonds City/County Advances and Loans j $0 All Other Long-Term Debt - $0 Total Expenditures �$-9,765 m,252 $0 $0 $67,017 Excess(Deficiency)Revenues over ($g,765) $280,286 $0 $0 $270,521 (under)Expenditures Statement of Income and Expenditures w Expenditures - Page 6 2/27/2008 1-00 M W-Y"07,; K 21,1, z 0 191 tK,4A,,, n NOVO "',T 0,00plo f �,�A 41' -Statement of Income and Expenditures Other Financing Sources Fiscal Year 20-08 Project Area Name !Consolidated Low and Moderate Income Housing Funds Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds of Long-Term Debt T_ $0 Proceeds of Refunding Bonds T ................... 10 Payment to Refunded Bond Escrow Agent .. . ................ ... ...............- Advances from City/County T $0 Sale of Fixed Assets t Miscellaneous Financing Sources(Uses) J -612 ($612) T Operating Transfers In 0 i Tax Increment Transfers In 3,061,826 Operating Transfers Out $o Tax Increment Transfers Out $0 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources(Uses) $o $3,061,214 Statement of Income and Expenditures-Other Financing Sources Page 1 212712006 Statement of-1 ricoryfe,and,Expeinditu ros-Other Financing Sources Fiscal Year 12-008 Project Area Name Consolidated Lowan--d-Moderate-Income -o- u-s-in g-Funds Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and $0 $0 $2,163,626 $01 $2,163,626 Other Financing Sources over Expenditures and Other Financing Uses Equity, Beginning of Period P $5r il 5751:564 '1 $10,501,764 Prior Period Adjustments .. ... .............7so Residual Equity Transfers j j $0 Other(Specify) A B C D E Refresh Total 7 17 7 7 7 Other Total Equity, End of Period Statement of Income and-E penditures-Other Financing Sources,, Page 2 7',--2/27/2008- _4'ku.400 iwif 77, Statement of Inco'me and Expenditures-dthir Financing So uecies Fiscal Year Project Area Name 'Huntington Beach Redevelopment-Project Area No._0No._1 Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total 7 Proceeds of Long-Term Debt $o Proceeds of Refunding Bonds io Payment to Refunded Bond Escrow Agent $0 Advances from City/County $0 Sale of Fixed Assets T $0 Miscellaneous Financing Sources(Uses) -20,000 -78,8341 ($98,834) Operating Transfers In $0 Tax Increment Transfers In $0 1 Operating Transfers Out $0 Tax Increment Transfers Out 3,003,337 7,M,337 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources(Uses) 082,-1'71 177 o 1-7 $o 102,171) Statement of Income and Expenditures-Other Financing Sources Page 3, 2/2W2008 Statement of Income and E' x-penditu-r6i'-Other Financing Siodricei' Fiscal Year i2008 Project Area Name Huntington Beach Redevelopment Project Area No. I Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and $1,435,817 Other Financing Sources over Expenditures and Other Financing Uses Equity, Beginning of Period $7,447675 F08,749 $0 $0 $21,052,318 Prior Period Adjustments Residual Equity Transfers $0 Other(Specify) A B C D E .......... ..............- Total 7 7 17" 7' 7 1 Other Total Equity,End of Period $22,488,135 Statement of Income and ExpendiUres-Other Financing Sources" Page 2/27/2006" M, MR" R V , � -n w" V 4 J Al, "",ri x 14 P40 1. ;,W1 11 41f, W.10, o� a co, -4, �A,�W u, 'NA CO; W o Statement of Income and Expenditures-Other Financing Sources Fiscal Year ,2008 Project Area Name ;Southeast Coastal Red eve-1 o pm ent Project Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds of Long-Term Debt ....... 'so Proceeds of Refunding Bonds 7r. 77 Payment to Refunded Bond Escrow Agent j I $0 Advances from City/County F 0 Sale of Fixed Assets i j J 0 Miscellaneous Financing Sources(Uses) �ro Operating Transfers In i Tax Increment Transfers In "$o Operating Transfers Out 0 Tax Increment Transfers Out - 58,489 $58,489 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources(Uses) 77 17i '71MI89) f, . ........ro..... ($58,489) Statement of Income and Expenditures-Other Financing Sourc6s P6ge 5 2/2,7/2008 I O, -, l'N l' AN A ll S 4 , Z n ftsl ' 1 Emi W Statement of Income and'Exponditures-Other Financing Sources Fiscal Year 2008 Project Area Name �Southeast Coastal Redevelopment Fir--oj ect - Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and .................... 0 $212,032 Other Financing Sources over Expenditures and Other Financing Uses ............ Equity, Beginning of Period $438,225 Prior Period Adjustments $0 Residual Equity Transfers $0 Other(Specify) A B C D E Total Other Total Equity, End of Period ($1F-1562) $840,819 $0 $0-71 7 $650,257 Statement of Income and Expenditures-Other Financing SoVrOes Pag#'.'6- 2/27/2008— ��d. "� ;�=.',•., h � ¢4 Apr ,>,.�; ,^� �,eQe; `%��'s,r ",3�� ,% x''",#�j;'iY'4'" ,«;�"�'�'� ,{ ,;r' `P^ ��¢ F �� ,��G. '9.%' ,y-ys• -'t� _ ,;,x.. � r,s� r�, x �^a.�*,f,f.,F,r, �.E. ,�^�'s�•' g< ,.�.n,,"r ,,,�,^,1 ,,r,s�'i';�ir„, �:; ✓E�„ ;r .�%�' "+e�' ,,,�u.r� 'F _•:a. "'„, .� ',i;, ,�., '�,��y,,,<,_„., �ak� �„fir„;;.�'}"n 4�,'z.,r,� "� "��•�" ,5'�'J�w� ,;'s',�ss3 ,° ,,s'is '�`' f� ;,,�'>z..»,,�,_ .r�,r,, y�,„.. a5„ .,vF� , „+.f,' ;�i�J.,�,':>, da�l, �,'f� �'•� "r"+3`„� <fit' `��yy - ,i'�;; �Y" °"'�"� �«_.''� ��" 'r'r�' rissss ''"c, ��+✓{a8r'�'•, <t ,� r "r;�,o a =�..,r ,r,r J „t .., rs; :'"✓'f' a,r;>."-,^ e`4d� a"., •�3 ,�r;trr�/�.,,,.rars '� < '�� ,. `MY' ,'� ' 'S', '3's`� �: �r -;:as§e�,�e�.'S�ir''"°uz,aa �•d n,r .�, .la.:��:':. ,. - L.rsi:.�"... , , .0," ,."w s,�.,� „s �`'ni,n,.,�R.`eF'„<,, ,,.«W.s „ �n�:;,•:i �w e, a.^, s� �;` s, ..�� s,.,.,,, ,.x t,r;, Balance Sheet-Assets and'Other bebits'„ Low/Moderate Special Fiscal Year 2008 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Assets and Other Debits Cash and Im rest Cash 17,018,888! 1,121,485 I 10,471,390 3s' 'F f 1 63 p f^,firms , ,ak. �a s� i�, i ,;Er;��a Cash with Fiscal Agent _ 2,462,317 I I _ ' "'_ _ i _ _ $2�462,317 Tax Increments Receivable 4,063,416 �� ,r, "'"`''�"' �_,' `"`'� `�' �� ' a $4,063,416 - - a ��'•' Accounts Receivable 937,150-',' $937,150 Ae" - Accrued Interest Receivable j 231,161 9,219� 118,516 F� � � $358,896 Loans Receivable 11,435,134 r, r4 ' � ' a Contracts Receivable � '`°'•� � ;"''�<;s' a $0 Lease Payments Receivable �' 1f M , <� $0 Fi R Unearned Hance Charge � y 77 $0 Due from Capital Projects Fund 190,560:1 2,093,927 „g�" $728 T'87 Due from Debt Service Fund 3,022,292 Due from Low/Moderate " Income Housing Fund i Due from Special I i � I �'� � �" � ', "�° _-�'% '"� $0 Revenue/Other Funds IX Balance Sheet-Assets and Other Debits, Page 1 /27/2008, „ U % A90 I Y 7 "i,n '�F''5' "1" M-20" -W "'N N�U "i '642 ;4' ry A "Al"","'i NX� "O'S",1117 Balance Sheet-Assets and Other Debits Low/Moderate Special Fiscal Year 2008 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Investments Other Assets 302,489 $302,489 "W.77 Investments Land Held for 2,682,132, Resale Allowance for Decline In 2't 15 Value of Land Held for Resale 37 Fixed Assets.Land, ME 515 151 17,15 359 �17:165796 Structures,and Improvements Equipment ':"77 ge— g J $0 2 U� k Amount Available In Debt Service Fund Amount to be Provided for 137,227,000 Payment of Long-Term Debt Total Assets and Other $137,227,000 $17,153,359 M93,540,435 Debits (Must Equal Total Liabilities, Other Credits,and Equities) Balance Sheet.Assets and Other Debits 'age 2 2/27/2008,, 5 ram, M� i W12", 'C'1'414� '910: T 'WR No 61-1,14"1 P�A*' 777A""'W_171� P "�T '3 put W, 141 "?v 0 MIN ,11�117V'294'k 1 -, ap 'Age, 46 iw 70'Ad Balance Sheet-Liabilities and Other Credits Low/Moderate Special Fiscal Year 2008 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 212,4291 18,4041 7- $0 ,45,M Interest Payable Tax Anticipation Notes Payable $o Loans Payable $0 Other Liabilities 130,111 3,253,398) 11,435,1731 V >IN 7� Due to Capital Projects Fund 190,560 3,022,292 "'J V WE Due to Debt Service Fund ^ui $0 Due to Low/Moderate Income Housing Fund 2,093,927 $2,093,927 Due to Special 0 Revenue/Other Funds '8 0 IN ""j, Netkl 24,885,0 Tax Allocation Bonds Payable - _00 $24 8500 77 r Lease Revenue,Certificates of Participation Payable, IN2 Ww"I'll $0 Financing Authority Bonds All Other Long-Term Debt MEN-, 112,342, 0 ]pt [A 0 0 Total Liabilities and Other $1179577 $0' $137,227,000 $157 583,294 , Credits Balance Sheet-Liabilities and Other Credits Page 1 2/27/2008 "h" - W-1 1wp fit, t"ngr" o AO ', R a Balance Sheet-Liabilities and Other Credits Low/Moderate Special Fiscal Year 2008 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Equities 5 Investment In General Fixed 17,153,359 $17,153,359 Assets 7 863 Fund Balance Reserved 21,757,645 1,380,747, 12,665,390 95 Fund Balance Unreserved-Designated 17-Im' ilil��",W01 -'A Q4 a,QvNa 'm'UA Fund Balance R A $o "'AR R Unreserved-Undesignated Total Equities $21,757,645 Ti 37'M $12,665,390 so Total Liabilities, Other Credits, and Equities $24,384,672 ................ ....... $27,540,435 Balance Sheet-Liabilities and Other Credits Page 2, 2I27/200 2'Sk<, ,a�. W�'Z>�� .Y' :?;�..,�'��b�� yy��, '� ��!�� ••��', ,-m`,,'s,,,�� 4 "Y"� ��' sp a�� a r�S' , „�:��4 ��s4r.;.ziTsa.. ��,<. •L-J' f^�X,a g�r 7 �°o,a �.�'>�^ ;rrs,cza�,,.,�?:�. �,,,�' �',",,,�.^z�.s�`��r�N 4-r'< Statement of Income and Expenditures Summary, Combined Transfers In/but - Fiscal Year 2008 Operating Transfers In $0 Tax Increment Transfers In $3,061,826 Operating Transfers Out _- _--__- Tax Increment Transfers Out $3,061,826 1 Statement of Income and Expenditures.-'Sum Tary, , Rage 1 2/27/2008 Combined Transfers In%Out The Redevelopment Agency of the City of Huntington Beach Activities 2006-2007 AGENCY OVERVIEW During this year the Redevelopment Agency of the City of Huntington Beach continued to implement the projects that were described in the Implementation Plans and the Ten Year Housing Compliance Plan, namely: HUNTINGTON BEACH PROJECT (MERGED AREA) • The Strand(Blocks 104-105 in the Main Pier sub area) • Pacific City • Surf City Nights • Bella Terra • Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor • Downtown Specific Plan(DTSP) and Downtown Parking Master Plan • Hyatt Regency Huntington Beach Resort and Spa • Capital Improvements and Facilities SOUTHEAST COASTAL PROJECT • Utility Undergrounding • Magnolia Sidewalk &Pedestrian Lighting • Seawater Desalination Facility HOUSING • Habitat for Humanity(Patterson Site) • Jamboree Housing I, II, and III • Garfield and Delaware Affordable Housing Project PROJECTS & ACTIVITIES Huntington Beach(Merged Project Area) 1. The Strand is a multi-use project developed by CIM Group on a 3-acre site in the downtown core. With views of Huntington Beach and the pier it is located on Pacific Coast Highway, north of Main Street. A Sixth Implementation Agreement and the 33433 Report are scheduled to be presented to the Redevelopment Agency in spring 2008. The Strand's four distinct buildings will be linked by open-air pedestrian walkways The Strand will offer approximately 110,000 square feet of retail and office space. The Shorebreak Hotel is a 157 room luxury boutique hotel operated by Joie de Vivre Hospitality. Ample parking will be provided in a subterranean structure. Retail tenants include Forever 21/Forever Love, CVS, and Active Ride Shop. Dining options include Johnny Rockets, RA Sushi, New Zealand Natural Ice Cream, and Coffee Bean& Tea Leaf. The development is scheduled to open in the fall of 2008. Page 1 of 4 \,-,r vr,r,r0 %+ n Df r, 1 2. Pacific City is being developed by Makar Properties on a 31 acre site at Pacific Coast Highway and First Street. A Community Facilities District is proposed to fund the majority of the street enhancements and Regional Urban Runoff Treatment System for the residential portion of the project. There will be 516 upscale residential housing units built in four phases, ranging from 969 to 2,500 square feet. The residential village, totaling 17.2 acres and consisting of four distinct styles, will act as the cornerstone of Pacific City, allowing residents close access to shops, restaurants with 48,900 square feet of restaurant space and 30,000 square feet of office space. This community will encompass 191,000 square feet of the retail center featuring luxurious retail brands, prime office space, dining and entertainment. Pacific City is expected to open in late 2009. The "W' is the hotel operator for the boutique hotel that will feature 157 rooms and is expected to open by 2010. 3. Surf City Nights is a street fair/farmer's market that takes place from 5-9 p.m. on Tuesday nights in the first three blocks of downtown Main Street between Pacific Coast Highway and Orange Avenue. Surf City Nights began as a three-month trial street closure of Main Street and developed into a weekly, year-round event. The fair was created and maintained in partnership between the City of Huntington Beach and the Downtown Business Improvement District. Historically, Tuesdays had been the slowest evening in the downtown. Due to the success of the event, residents and visitors regularly take an evening stroll and dine at local restaurants. The street fair includes a farmer's market, live entertainment, children's activities, retail sales, food, arts and crafts. Surf City Nights headlined as the second biggest story of the year in the Orange County Register and local LA Times December issue. 4. Bella 'Terra, formerly known as Huntington Center which was an outdated 56.5-acre retail property, has been transformed into an entertainment/life style center. In 2005, while the mall was still under construction, Bella Terra Associates LLC, a partnership between DJM Capital and Jh Snyder, purchased the property. The Redevelopment Agency approved Bella Terra Associates LLC to assume the rights and responsibilities of the Owner Participation Agreement in order to complete the project. The First Implementation Agreement to the OPA terminated the vacant Montgomery Wards parcel from the OPA and provided for a $1.5 million implementation fee to the Agency. With the approval of the Second Implementation Agreement on September 17, 2007, the Agency was required to commence payment of its obligation of$15 million to the developer. The Redevelopment Agency has paid $2,207,000 towards its obligation to the developer leaving an estimated balance of $14,855,000 as of September 30, 2007. The approximate 1,532 space public parking garage, funded by the Community Facilities District 2003-1 (Huntington Center), opened on October 1, ZOOS. Bella Terra Associates LLC also purchased the former Montgomery Wards 13.5 acre portion of the site that has been left vacant for a number of years. Negotiations are commencing to develop the parcel within the next three years. The environmental review process has begun for the proposed mix-use project that will consist of 156,000 square feet of retail and 503-700 residential units. 5. Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor -- On December 18, 2006 the Agency approved a professional services agreement with Tierra West Advisors, LLC for the preparation of an Economic Revitalization Strategic Plan Page 2 of 4 h,t, llF 7,f I"D 71 t>L-, IQ to ,, to enhance and maximize the potential of these major thoroughfares. A real estate market analysis of existing conditions along the cooridors has begun. This analysis will support the rationale for possible land-use changes that are based upon economic trends and community goals. In support of long range planning efforts, the work is being conducted in conjunction with planning firm Freedman, Tung and Bottomley (FTB) for the Specific Plan and Land Use/Planning aspects. Four community meetings have been held. The preliminary results of those meetings were presented at a City Council Study Session on January 7, 2008. The Revitalization Strategic Plan and Specific Plans for the corridors are expected to be completed in late 2008. 6. Downtown Specific Plan (DTSP) and Downtown Parking Master Plan -- On July 16, 2007 the Agency approved professional services contracts with RRM Design Group and Kimley-Horn and Associates, Inc. (KHA) to provide consulting services for the update to the Downtown Specific Plan (DTSP) and Downtown Parking Master Plan (DPMP). RRM Design Group is responsible for developing land use provisions and urban design guidelines that support and encourage a mixed-use development community. The planning consultant is working with KHA, a traffic/parking consultant that specializes in the analysis of parking in a downtown setting, who has the responsibility of amending the DPMP. To accomplish this, KHA will utilize "shared use" parking strategies and other innovative approaches used in regulating downtown parking The first community work shop was held on November 27, 2007. 7. The Hyatt Regency Huntington Beach Resort and Spa -- The 517-room Hyatt Regency Huntington Beach Resort & Spa and its Conference Center opened for business on January 19, 2003. Developer's Advance Loan Balance is estimated at $7,215,729 as of December 2007. The hotel paid its second Participation Payment to the Agency during this past year. The project also pays lease payments to the Agency on an annual basis. 8. Capital Imp rovements/Facilities -- The one time revenue of $19 Million from the Redevelopment Agency's participation payments from the Waterfront Residential project is funding various public improvements within the City's Merged Redevelopment Project Area. The revenue received during 2004-2006 will be expended over several years through the City's Capital Improvement Program (CIP). Through the CIP, approximately $16 Million has been allocated for capital projects that include the Civic Center seismic retrofit (matched with FEMA funds), drainage improvements, concrete and asphalt replacement, streetlight replacements, restrooms north of the pier, permanent buildings on the pier and a visitor's kiosk at the Pier Plaza, internal building modifications for the Main Street Library, and fire station renovations. The Surf City Nights project is also funded through this revenue source. Southeast Coastal Project Area 1. Utility Undergrounding -- Southern California Edison is taking the lead in doing the design work for under-grounding the Edison utilities along PCH and is working with City staff, CalTrans, and the California State Beaches Department. Page 3 of 4 -I .,_ V_rT Ur,; IJn s ,.-f-. ., i>I::,7TQI F� 1- 2_ Seawater Desalination Facility -- The Redevelopment Agency approved an Owner Participation Agreement (OPA), dated February 27, 2006, with Poseidon Resources Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8, 2006. AES is in the process of removing storage tanks on this property. 3. Magnolia Street Sidewalk& Lighting-- The construction of a sidewalk and installation of pedestrian lighting on both sides of Magnolia Street was included in the Capital Improvement Program(CIP)budget for$500,000. Housing Activities 1. Habitat for Humanity (Patterson Delaware site) -- The Redevelopment Agency has acquired a vacant parcel at 1854 Patterson Lane for $522,500 using Housing Set Aside funds for a Habitat for Humanity project Two single family homes will be built on the site. The original plan was to install two manufactured homes on the site however the company offering the homes withdrew their offer due to economic reasons The homes will now be conventional built homes following the Habitat for Humanity model of the homeowners contributing sweat equity. 2. Jamboree Housing I, II, and III -- The Agency and City of Huntington Beach assisted Jamboree Housing Corporation, an Orange County based non-profit housing developer and designated CHDO (Community Housing Development Organization), to acquire and rehabilitate two five-plex apartment buildings in the Oakview sub-area. This represents the first acquisition/rehab projects developed in the City of Huntington Beach by Jamboree and one of several housing projects planned for the Oakview sub-area using HOME and redevelopment housing set-aside funds. The City and Agency are also in the process of assisting Jamboree with the acquisition of a third property, a four-unit building that will close escrow after the 2006-07 fiscal year. Jamboree will provide on-site management and tenant services for the tenants they serve as more properties are acquired and rehabilitated. 3. Garfield and Delaware Affordable Housing Project -- The City of Huntington Beach acquired property at the northeast corner of Delaware St. and Garfield Ave. as part of a street widening project. It is expected that the Agency will purchase the property from the City and thereafter develop affordable housing on the parcel. It is anticipated that the project will be presented to the Agency and City Council sometime during fiscal year 2008/2009 Page 4 of 4 ........1 1., -,-..,.-,r: T.I-- - ,_V V/,i`Dr1 A t.,.....I-,IJ I?WT ,}.,,, Supplement to the Annual Report of Community Redevelopment Agencies For the Fiscal Year Ended June 30, 2008 Redevelopment Agency ID Number: 1 9983037600 Name Of Redevelopment Agency: Redevelopment Agency of the City of Huntington Beach The U.S. Bureau of the Census requests the following information about the fiscal activities of your government for the 2007-2008 fiscal year(defined from July 1, 2007 through June 30, 2008). Governments furnishing this information will no longer receive Census Bureau Form F-32, Survey of Local Government Finances. If you have any questions please contact: U.S. Bureau of the Census Gina E. Broxterman 1-800-242-4523 A.Personnel Expenditures Report your government's total expenditures for salaries and wages during the year, including amounts paid on force account construction projects. Z00 S 768,755 B.Mortgage Revenue Bond Interest Payments Report your government's total amount of interest paid on mortgage revenue bonds during the year. U20 IS U S Bureau of the Census—Revised 05/2005 Additional Reports for State Controller City of Huntington Beach RDA Fiscal Year Ended September 30, 2007 1) Blight progress report (specifies actions and expenditures made in the previous fiscal year to alleviate blight), Health & Safety Code §33080.1(d) a) On November 15, 2004,the Agency approved the Five Year Implementation Plan(2005-2009) for the Huntington Beach Project and the Ten Year Housing Compliance Plan (2005-2014) that is on file with the State Controller. During fiscal year 2006-07 some blighted conditions have been mitigated through the programs described in these plans. In particular, construction of the CIM project"The Strand" is continuing, the renovation of Huntington Center, now called "Bella Terra," is now complete and almost fully occupied; and construction on the Makar Properties project, "Pacific City", has commenced. Additional efforts have been made to enhance and maximize the potential of the major thoroughfares known as Beach Boulevard and Edinger Avenue through a Specific Plan, and to update the Downtown Specific Plan and Downtown Parking Master Plan. In the Huntington Beach Redevelopment Merged Project area, several public improvement projects were funded including seismic retrofit, drainage and concrete and asphalt work, replacement of streetlights, and the renovation of public restroom, library and fire station facilities. In the Southeast Coastal Redevelopment Project area, the Agency is working with Edison, CalTrans, and the California State Beaches Department to underground the Edison utilities along Pacific Coast Highway. Other work in this project area includes construction of sidewalks, installation of pedestrian lighting and the proposed development of a seawater desalination plant. 2) Loan report (identifies loans (receivable) which equal or exceed$50,000 and that were found by the agency during the previous fiscal year to have either defaulted or not complied with the terms of the agreements approved by the agency),Health& Safety Code V3080.1(e). a) None 3) Property report (describes properties owned by the agency and those acquired in the previous fiscal year), Health and Safety Code §33080.1(fl. a) The City of Huntington Beach did not acquire any properties in the fiscal year ending September 30, 2007. b) A ency Owned Land as of September 30, 2007: Assessor's Description Parcel Number Acres Cost Acquired Funding Source Category Bowen Court Senior Housing Project- Sixty-year lease with Merit Housing, commencing Possessory 6/11/2001. $1.00/year lease AP 023-042-18,- Interest payment. 19,-20,-21,-22 0.751 $885,000.00 9/30/1994 Housing Set-Aside Asset Surf Museum (SEC 5th/Olive) AP 024-147-01 0.116 $286,300.00 7/1/1991 Tax Increment Asset Block 104 (10' Remnant Abdelmuti parcel exchanged as 10' portion of AP 024-153- 12 Gosney)Acquisition cost was proportionately reduced I AP 024-153-21 1 0.017 1 $259,000.00 10/1/1989 Tax Increment I Asset Page 1 Assessor's Description Parcel Number Acres Cost Acquired Funding Source Category Vacant Land, Formerly AP 165-364-05 [7921 Cypress (Walker)] and part of-07 AP 165-364-24 0.262 $180,295,00 10/1/1989 Tax Increment Resale Possessory Waterfront Leasehold for 99 AP 024-251-01 & Interest years. 024-252-01, -02 22.079 $14,023,000.00 7/1/1989 Tax Increment Asset Lot AA, Legal no Degraded Wetland Parcel Description on file 1.007 consideration 12/11/2002 n/a Resale Vacant Land (NEC Parkside/Aldrich) AP 142-081-06 0.413 $664,582.00 9/1/1988 Tax Increment Resale Vacant Land (NEC AP 142-081-09,- Parkside/Aldrich) 10,-11,-12 1.023 $753,180.00 9/1/1988 Tax Increment Resale Gothard/Hoover(Housing) AP 142-073-03 2.718 $1,084,074.00 9/1/1987 Tax Increment Resale Gothard/Hoover (Westminster Parcel) AP 142-311-34 1.166 $465,059.00 9/1/1987 Tax Increment Asset 5.42 1 $2,682,131.00 Total for Land Held for Resale Page 2 STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2007-08 TAX YEAR REDEVELOPMENT AGENCY FOR THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA Current Balance Carried Forward From; Total Principal/Interest Line Oustanding Debt Due During Tax Year Fiscal Period -Totals From Form A Totals 1 174,671,767 6,028,368 (Optional) Post Fiscal Period -Totals From Form B Totals 2 Grand Totals 3 174,671,767 6,028,368 Available Revenues From Calculation of Available Revenues, Line 7 4 $2,269,562 Net Requirement 5 172,402,205 Consolidate on this form all of the data contained on Form A and B(Including supplemental pages). Form A is to include all Indebtedness entered Into as of June 30 of the Fiscal Year, Form B maybe filed at the option of the agency,and Is to include indebtedness entered Into post June 30 of the Fiscal Year, pursuant to Health and Safety Code Section 33675(c)(2).This Is optional for each agency and is not a requirement for filing the Statement of Indebtedness. The Reconciliation Statement Is to include Indebtedness form Form A only, Certification of Chief Financial Officer: Pursuant to Section 33675(b)of the Health and Safety Code. Dan T. Villella Finance Director I hereby certify that the above is a true and accurate Statement Name Title of Indebtedness for the above named agency. r Signature at P REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA TAX YEAR 2007-08 RECONCILIATION DATES: JULY 1,2006 TO JUNE 30,2007 1.Beginning Balance,Available Revenues $2,497,907 (See Instructions) 2.Tax Increment Revenues-Gross 15,507,051 All Tax Increment Revenues,to include any Tax Increment passed through to other focal taxing agencies. 3.All other Available Revenues Received $161,854 (See Instructions) 4.Revenues from any other source,included $0 in Column E of the Reconciliation Statement,but not included in( 1-3) above 5.Sum of Lines 1 through 4 $18,166,812 6.Total amounts paid against indebtedness 15,897,250 in previous year.(D+E on Reconciliation Statement) 7.Available Revenues,End of Year(5-6) $2,269,562 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE,LINE 4 NOTES Tax Increment Revenues: The only amount(s)to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676.Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at vear end. Item 4_ above: This represents my payments form any source other than tax Increment OR available revenues. For instance, an agency funds a project with a bond issue.the previous SOI included a Disposition Development Agreement (DDA)which was fully satisfied with these bond proceeds.The DDA would be shown on the Reconciliation Statement as fully repaid under the"other"column(Col E),but with funds that were neither tax Increment,nor "Available Revenues"as defined.The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending"Available Revenues_" STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2007-2008 TAX YEAR Form A Page 1 of 3 THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA For Indebtedness Entered into as of June 30, 2007 Original Data Current Interest Total Total Principal/Interest Debt lndentification Date Principal Term Rate Interest Outstanding Debt Due Durin Tax Year A General Fund Advance 1985/86 2,015,086 5.60% 1,261,476 899,427 B General Fund Advance 1986/87 751,988 5,60% 628,718 484,404 C General Fund Advance 1987/88 4,093,298 5,60% 3,579,136 1,832,973 D General Fund Advance 1988/89 4,033,406 5.60% 4,473,830 2,947,005 E General Fund Advance 1989/90 1,559,835 5.60% 1,262,627 191,364 F General Fund Advance 1990/91 4,867,001 5.60% 5,255,182 2,232,141 G General Fund Advance 1991/92 698,250 5.60% 684,152 333,488 H General Fund Advance 1992193 250,116 5,60% 177,884 113,037 I General Fund Advance 1993/94 113,656 5.60% 88,223 91,786 J General Fund Advance 1994/95 3,088,374 5 60% 3,114,374 116,183 K Water Fund Advance 1986/87 138,000 5.60% 328,321 462,261 (L) Water Fund Advance 1987/88 1,000,000 5,60% 2,190,933 2,957,752 Total This Pa a 12,661,821 Purpose of Indebtedness: (A) General and Administrative (G) General and Administrative (B) General and Administrative (H) General and Administrative (C) General and Administrative (1) General and Administrative (D) General and Administrative (J) General and Administrative (E) General and Administrative (K) Construction of Water Improvements (F) General and Administrative (L) Construction of Water Improvements STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2007-2008 TAX YEAR Form A Page 2 of 3 THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA For Indebtedness Entered Into as of June 30,2007 Original Data Current Interest Total Total Principal/Interest Debt Indentification Date Princi ai Term Rate Interest Outstanding Debt Due During Tax Year A 13 Drainage Fund Advance 1987/88 250,000 5.60% 554,986 551,798 C Generaf Fund Blufflop Advance 1987/88 50,000 5.60% 92,339 22,317 Q Land Sales 1983/84 405,536 5,60% 351,597 823,683 E Land Sales 1987/88 1 1,228,381 5.60% 1,283,587 2,494,961 F Land Sales 1988/89 29,002,000 5.60% 22,146,792 52,541,423 G Land Sales 1989/90 2,267,000 5.60% 1,899,346 4,090,770 H Land Sales 1991/92 3,064,730 5.60% 2,449,110 4,608,943 I Sewer Fund Advance 1989/90 175,000 5.60% 313,970 228,962 J Capital Fund Advance 1989/90 200,000 5.60% 254,617 528,097 Low Income Housing Loan K Property Acquisition 1994/95 1 1,362,500 5.60% 1,362,500 (L} General Fund Advance 1995/96 3,059,414 5.60% 834,063 868,264 Total This Page 68,121,718 Purpose of Indebtedness, (A) Street Improvements (G) Land Sold by City to Agency (B) Drainage Improvements (H) Land Sold by City to Agency (C) Blufftop Park Purchase (1) Sewer Improvements (0) Land Sold by City to Agency (J) Capital Improvements (E) Land Sold by City to Agency (K) Property Aquisition (F) Land Sold by City to Agency (L) General and Administrative STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2007.2008 TAX YEAR Form A Page 3 of 3 THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA For Indebtedness Entered Into as of June 30, 2007 Original Data Current Interest Total Total Principal/Interest Debt Indentification Date Principal Term Rate Interest Outstandin2 Debt Due During Tax Year A Land Sale Emerald Cove 1988/89 1,740,834 5.60% 2,046,590 4,545,436 B Deferred Developer's Fees 1989/90 358,882 5,60% 534,057 631,539 C Mayer Loan 1990/91 4,073,156 655,889 8,197,516 Low Income Housing Loan D ERAF 1992/93 517,027 10 Xrs. 517,027 Low Income Housing Loan E ERAF 1993/94 214,286 10 Yrs. 214,286 F G Section 108 Loan 2000/01 6,000,000 7.70% 5,443,600 7,444,904 590,464 H 2O02 Tax Allocation Refunding Bonds 2002/03 20,900,000 11,592,171 25,652,183 1,600,080 i Low& Moderate Income Set-Aside 1992/93 NIA Open 34,934,353 3,101,410 J 1999 Tax Allocation Refundinj Bonds 1998/99 10,835,000 26 Yrs 3-5.05% 7,036,448 11,750,984 736,414 Sub Total This Page 1 `�`t `' d i 93,888,228 6,028,368 Total Forward From All Other Pages 80,783,539 Totals, Fiscal Year Indebtedness 174,671,767 6,028,368 Purpose of Indebtedness. (A) Land Sale from the City to Emerald Cove (F) (B) Deferred Fees - Emerald Cove (G) Federal Loan for Captial Improvements (C) Relocate Mobile Home Park (H) Defeasance of a final portion of the HBFFA Advance (D) Loan for Payment of ERAF (1) Low&Moderate Income Set-Aside (E) Loan for Payment of ERAF (J) Defeasance of a portion of the HBFFA Advance RECONCILIATION STATEMENT- CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Page 1 of 4 Merged Project Area Reconciliation Dates: From July 1, 2006 To June 30, 2007 Tax year 2007.08 A B C D 7 E F Debt Indentification: Oustanding Debt Adjustments Amounts Paid Against Remaining SOI,page and line; Brief Ali Beginning Increases Decreases Indebtedness,from: Balance Prior Yr Current Yr Descrl tlon Indebtedness (Attached Explanation) Attached Explanation) Tax Increment Other Funds (A+B.C•C•0•E Pg. 1 Pg. 1 Line A Line A General Fund Advance 899,427 33,998 33,998 899,427 Pg. 1 Pg, 1 Line S Line B General Fund Advance 484,403 18,310 18,310 484,403 Pg. 1 Pg. 1 Line C Line C General Fund Advance 1,832,972 69,286 69,286 1,832,972 Pg. 1 Pg. 1 Line 0 Line D General Fund Advance 2,947,005 111,397 111,397 2,947,005 Pg. 1 Pg, 1 Line E Line E General Fund Advance 191,363 7,234 7,234 191,363 Pg. 1 Pg, 1 Line F Line F General Fund Advance 2,232,141 84,375 84,375 2,232,141 Pg. 1 Pg. 1 Line G Line G General Fund Advance 333,488 12,606 12,606 333,488 Pg. 1 Pg. 1 Line H Line H General Fund Advance 113,037 4,273 4,273 113,037 Pg, 1 Pg. 1 Line I Line I General Fund Advance 91,786 3,470 3,470 91,786 Pg, 1 Pg, 1 Line J Line J General Fund Advance 116,183 4,392 4,392 116,183 Pg, 1 Pg. 1 Line K Line K Water Fund Advance 445,428 16,832 462,260 Pg. 1 Pg. 1 Line L Line L Water Fund Advance 2,850,056 107,697 2,957,753 Pg, i Pg, Y Line M Line M Gas Tax Advance TOTAL THIS PAGE 12,537,289 473,870 1 349,341 - 12,661,818 RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Page 2 of 4 . Merged Project Area Reconciliation Dates: From July 1,2006 To June 30, 2007 Tax year 2007.08 A B C D E F Debt Indentificatlon: Oustanding Debt Adjustments Amounts Paid Against Remaining SOi,Page and line; Brief All Beginning Increases Decreases Indebtedness,from: Balance Prior Yr Current Yr Description Indebtedness Attached Explanation (Attached Explanation) Tax Increment Other Funds A+B-C-C-D-E) Pg, 2 Pg, 2 Line A Line A Drainage Fund Advance 531,700 20,098 551,798 Pg, 2 Pg, 2 Line B Line B General Fund Blufftop Advance 22,317 844 844 22,317 Pg. 2 Pg. 2 Line C Line C Land Sales 857,246 32,404 65,967 823,683 Pg, 2 Pg, 2 Line D Line D Land Sales 2,596,625 98,152 199,817 2,494,960 Pg. 2 Pg, 2 Line E Line E Land Sales 54,682,371 2,066,994 4,207,942 52,541,423 Pg. 2 Pg. 2 Line F Line F Land Sales 4,257,461 160,932 327,622 4,090,771 Pg, 2 Pg. 2 Line G Line G Land Sales 4,796,748 181,317 369,121 4,608,944 Pg. 2 Pg, 2 Line H Line H Sewer Fund Advance 220,622 8,340 228,962 Pg, 2 Pg. 2 Line I Line I Ca tial Fund Advance 508,862 19,235 528,097 Pg. 2 Pg. 2 Low Income Housing- Property Line J Line J Acquisition 1,362,500 1,362,500 Pg. 2 Pg, 2 Line K Line K General Fund Advance 868,263 32,820 32,820 868,263 Pg. 2 Pg. 2 Line L Line L Land Sale Emerald Cove 4,379,877 165,559 4,545,436 Pg. 2 Pg. 2 Line M Line M Deferred Devela er's Fees 608,536 1 23,003 1 631,539 TOTAL THIS PAGE 1 75,693,128 2,809,698 5,204,133 73,298,693 RECONCILIATION STATEMENT- CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Page 3 of 4 - Merged Project Area Reconciliation Dates: From July 1, 2006 To June 30, 2007 Tax year 2007.08 A B C D E F Debt Indentification; Oustanding Debt Adjustments Amounts Paid Against Remaining SOI,page and line: Brief All Beginning Increases Decreases Indebtedness,from; Balance Prior Yr Current Yr Description Indebtedness Attached Explanation) (Attached Explanation) Tax increment Other Funds (A+B-C-C-D-E) pg. 3 Pg. 3 Line A Line A Section 108 Loan 8,035,368 590,464 7,444,904 Pg, 4 Pg, 3 Line A Line B Mayer Loan 10,083,074 579,487 2,465,045 8,197,516 Pg. 4 Pg. 3 Low and Moderate Income Loan Line B Line C ERAF 517,027 517,027 Pg. 4 Pg. 3 Low and Moderate Income Loan Line C Line D ERAF 214,286 214,286 Pg. 4 Pg. 3 Line E Line E 2002 Tax Allocation Refund Bond 27,252,262 1,438,226 161,854 25,652,182 Pg. 4 Pg. 3 Line G Line F Low& Moderate Income Set-Aside 36,704,958 1,330,805 3,101,410 34,934,353 Pg. 4 Pg. 3 Line H Line G 1999 Tax Allocation Refund Bond 12,487,398 736,414 11,750,984 Pg. Pg. Line Line Pg. Pg. Line I Line Pg. Pg, Line Line Pg. Pg, Line Line Pg. Pg. Line Line Pg, Pg. Line Line TOTAL THIS PAGE 95,294,373 1,910,292 8,331,559 161.854 88,711,252 RECONCILIATION STATEMENT. CHANGES IN INDEBTEDNESS PAGE 4 OF 4 Redevelopment Agency of the City of Huntington Beach Merged Project Area Reconciliation Dates: From July 1, 2006 To June 30, 2007 Tax year 2007.08 A B C D E F Debt IndentifIcation: Outstanding Debt Ad)ustments Amounts Paid Against Remaining $01,page and line: Brief All Beginning Increases Decreases Indebtedness,from: Balance Prior Yr. Current Yr, Description Indebtedness Attached Explanation) Attached Ex lanation) Tax Increment Other Funds (A+B.C•C•D•E Pg. 3 Pg. 4 Line B Line A Pass Through Agreements 1,125,666 1,125,666 Pg, Pg. 4 Line Line B Arbitrage 201,923 201,923 Pg. New Pg. 4 Line New Line C Interest Expense 80,508 80,508 Pg. New Pg, Line New Line Admin Ex enses 446,589 446,589 Pg. New Pg. Line New Line Pg. Pg. Line Line Pg, Pg, Line Line Pg, Pg. Line Line TOTAL THIS PAGE 1,850,363 1,850,363 - TOTALS FORWARD 183,524,790 5,193,860 - 13,885,033 161,854 174,671,763 GRAND TOTALS 183,524,790 7,044,223 - 15,735,396 161,854 174,671,763 NOTE: This farm is to reconcile the previous Statement of Indebtedness to the current one being filed.However,since the reconciliation period Is limited by law to a July 1•June 30,fiscal year period,only those items Included on the$01 Form A Is to be Included on this document.To assist in following each Item of Indebtedness from one Sol to the next,use page and line number references form each 801 that the Item of indebtedness is listed on,If the Indebtedness Is new to this fiscal year,enter"new"In the"Prior Yr,"page and line columns,Column F must equal the current Sol,Form A Total Outstanding Debt column. Adjustments The Redevelopment Agency of the City of Huntington Beach Adjustments of Debt Merged Project Area Tax Year 2007-08 Page 1, Line A-L, Column A Increase for accrued interest Page 2,Line A-1 and K-M,Column A Increase for accrued interest Page 3,Line B and F, Column A Increase for accrued interest Page 3,Line F Total Debt Less Low income Housing 139,737,413 Divide 80% 174,671,766 X 20% Low Income Housing Obligation 34,934,353 Beginning Balance 36,704,958 Adjustment Required (1,770,605) Current Year LIH Set-Aside 3,101,410 Adjustment 1,330,805 Page 10 STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2007.08 TAX YEAR REDEVELOPMENT AGENCY FOR THE CITY OF HUNTINGTON BEACH SOUTHEAST COASTAL PROJECT AREA Current Balance Carried Forward From: Total Principal/Interest Line Oustandin Debt Due During Tax Year Fiscal Period -Totals From Form A, Page 1 Totals 1 9,140,729 (Optional) Post Fiscal Period -Totals From Form 8 Totals 2 - Grand Totals 3 9,140,729 Available Revenues From Calculation of Available Revenues, Line 7 4 $992,871 Net Requirement 5 8,147,858 Consolidate on this form all of the data contained on Form A and 8(including supplemental pages). Form A is to Include all Indebtedness entered into as of June 30 of the Fiscal Year. Form B maybe filed at the option of the agency,and Is to include Indebtedness entered Into post June 30 of the Fiscal Year, pursuant to Health and Safety Code Section 33675(c)(2).This is optional for each agency and Is not a requirement for filing the Statement of Indebtedness.The Reconciliation Statement Is to Include Indebtedness form Form A only. Certification of Chief Financial Officer: Pursuant to Section 33675(b)of the Health and Safety Code, Dan T, Villella, CPA Finance Director 1 hereby certify that the above is a true and accurate Statement Name Title of Indebtedness for the above named agency. Slgnatur Date REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Southeast Coastal Project Area TAX YEAR 2007-08 RECONCILIATION DATES: JULY 1, 2006 TO JUNE 30, 2007 1.Beginning Balance,Available Revenues $760,473 (See Instructions) 2.Tax Increment Revenues-Gross 251,176 All Tax Increment Revenues,to include any Tax Increment passed through to other local taxing agencies. 3.All other Available Revenues Received $0 (See Instructions) 4.Revenues from any other source,included 31,457 in Column E of the Reconciliation Statement,but not included in( 1-3)above 5.Sum of Lines 1 through 4 $1,043,106 6.Total amounts paid against indebtedness 50,235 in previous year.(D+E on Reconciliation Statement) 7.Available Revenues,End of Year(5-6) $992,871 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE,LINE 4 NOTES Tax Increment Revenues: The only amount(s)to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676.Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be washed in the above calculation,and therefor omitted from Available Revenues at year end. Item 4.above: This represents my payments form any source other than tax Increment OR available revenues.For instance,an agency funds a project with a bond issue.the previous SOI included a Disposition Development Agreement(DDA) which was fully satisfied with these bond proceeds.The DDA would be shown on the Reconciliation Statement as fully repaid under the"other"column(Col E),but with funds that were neither tax Increment,nor"Available Revenues"as defined.The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending"Available Revenues." STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2007-2008 TAX YEAR Form A THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Southeast Coastal Project Area For Indebtedness Entered into as of June 30, 2007 Tax year 2007-08 Original Data Current Interest Total Total Principal/interest Debt Indentification Date Princi al Term Rate Interest Outstanding Debt Due During Tax Year A Loan from Merged Project Area 2002/03 302,489 N/A 302,489 B Capital Capitall rn provement Program 2002/03 6,505,000 N/A 6,505,000 C Advance General Fund 2002/03 218,460 N/A 218,460 D Low Income Housin Set-Aside 2002/03 1,828,146 N/A 1,828,146 E Capital im rovement Project 2004/05 286,634 N/A 286,634 F G H I J Sub Total This Page 9,140,729 Total Forward From All Other Pages Totals, Fiscal Year Indebtedness 9,140,729 Purpose of indebtedness; (A) Pre-Formation Costs (F) (B) General Fund Loan for Improvement Capital Projects (G) (C) Advances from General Fund -Operating Budget (H) (D) Law Income Set-aside (1) (E) Active projects funded out of General Fund loan (J) RECONCILIATION STATEMENT e CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Southeast Coastal Project Area Reconciliation Dates: From July 1, 2006 To June 30, 2007 Tax year 2007.2008 A B C D E F Debt Indentificatlon; Outstanding Debt Adjustments Amounts Paid Against Remaining Sol,peC a and line; Brief All Beginning Increases Decreases Indebtedness,from; Balance Prior Yr,, Current Yr, Description Indebtedness (Attached Explanation) (Attached Explanation) Tax Increment Other Funds (A+B•C-C-D-E Pg. 1 Pg. 1 Line A Line A Loan from Merged Project Area 302,489 302,489 Pg, 1 Pg, 1 Line B Line B Capital Improvement Program 6,505,000 6,505,000 Pg, 1 Pg, 1 Line C Line c Advance General Fund 210,503 7,957 218,460 Pg, 1 Pg. 1 Line D Line D Ca ital Im rov. Projects active 276,194 10,440 286,634 Pg. Pg. Line Line Pg. Pg. Line Line Pg. Pg. Line Line Pg. 1 Pg, 1 Line E ILine E Low Income Housing Set-Aside 1 777,326 101,055 50,235 1,828,146 TOTAL THIS PAGE 9,071,512 119,452 50,235 - 9,140,729 TOTALS FORWARD GRAND TOTALS 9,071,512 119,452 50,235 9,140,729 NOTE: This form Is to reconcile the previous Statement of Indebtedness to the current one being filed.However,since the reconciliation period is limited by law to a July 1•June 30,fiscal year period,only those Items included on the SOI Form A Is to be Included on this document.To assist in following each item of Indebtedness from one Sol to the next,use page and line number references form each Sol that the Item of indebtedness is listed on.If the indebtedness is new to this fiscal year,enter"new"in the"Prior Yr."page and line columns.Column F must equal the current SOI,Form A Total Outstanding Debt column. Adjustments `The Redevelopment Agency of the City of Huntington Beach Adjustments of Debt Southeast Coasta►Project Area Page 1, Line C&D Increase for accrued interest Page 1,Line E Increase for accrued interest Page,Line E Total Debt Less Low Income Housing 7,312,583 Divide 80% 9,140,729 X 20% Low income Housing Obligation(Line E,Column F) 1,828,146 Beginning Balance(Line E Column A) 1,777,326 Adjustment Required 50,820 Current Year LIH Set-Aside(Line E,Column D) 50,235 Adjustment(Line E,Column B) 101,055 Page 5 ATTACHMENT #2 2006-2007 STATE CONTROLLER'S REPORT (Housing Activity' • California Department of Housing and Community Development Redevelopment Agency Annual Housing Activity Report Cover page • Project Area Reports (Schedule HCD-A) • Agency-wide Activity (Schedule HCD-C) • General Housing Unit Production (Schedules HCD-D1 , HCD-D5, HCD-D7, and HCD-E) • Component Unit Financial Report (CUFR) with Report of Independent Certified Public Accountants for the Year Ended September 30, 2007 CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REDEVELOPMENT AGENCY ANNUAL HOUSING ACTIVITY REPORT FY ENDING: September/ 30/2007 Agency Name and Address: County of Jurisdiction: Redevelopment Agency of the City of Huntington Beach Orange 2000 Maui Street Huntington Beach,CA 92648 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 rT9r fimgyear. No financial transactions were completed). ® Active(Financial and/or housing transactions occurred during the reporting year) ❑ Inactive(No financial and/or housing transactions occurred during the reporting ye . 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? 2 Of these,how many were merged during ye 0 If the agency has one or more adopted project areas complete SCHEDULE HCD-A for each proied 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. 5. During the reporting period,were housing units completed within a project area and/or assisted by the agency outside aproject area? ® Yes. Complete all applicable HCD SCHEDULES D 1-D7 for each housing project completed and HCD SCHEDULE E. ❑ No. DO NOT complete HCD SCHEDULES D 1-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,D 1-D7,and E are attached. ❑ B. On-fine(http://www.hcd.cagov/rda/)"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 above ano(b)agency information reported are correct. March 3,2008 Date Signature of Authorized Agency presentative Deputy Executive Director Title (114)536-5542 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 TIIISPAGEANDALLAPPLICABLEHCD FORMS(SCHEDULESA E) WITHA COPY OFAGENCY'SAUDIT. • IFREPOR77NG ON-LINE,PRINT AND SUBMIT"CONFIRMATION LETTER"UPON LOCKING REPORT • MAIL 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 3'd Street,Suite 430 3301 C Street Suite 500 Sacramento,CA 95814 Sacramento,CA 95816 SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 09/30/2007 Agency Name:_Redevelopment Agency of the City of Huntington Beach Project Area Name: Huntington Beach Merged Redevelopment Project Preparers Name,Title:Terri King,Assistant Project Manager Preparers E-Mail Address: tking-@;surfcity-hb.org Preparer's Telephone No:(714)960-8831 Preparer's Facsimile No: (714)375-5087 GENERAL INFORMATION 1. Project Area Information a. 1. Year 1 S`plan for project area was adopted: 1982(Main Pier Oakvtew,Yorktown-Lake and Talbert-Beach) 1984(Huntington Center)All areas merged in 1996 2. Year that plan was last amended(if applicable):2002 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- 2024 b. If project area name has changed,give previous name(s)or number: n/a c. Year(s)of any mergers of the project area: 1996-merger of five project areas Identify former project areas that merged:The five project areas merged in 1996 were Main Pier.Oakview,Yorktown-Lake, Talbert-Beach and Huntington Center d. Year(s)project area plan was amended involving real property that either: (1) Added property to plan: n/a (2) Removed property from plan: n/a 2. Affordable Housing Replacement and/or Inclustonary or Production Requirements(Section 33413). Pre-1976 project areas not subsequently amended after 1975: Pursuant to Section 33413(d),only Section 33413(a)replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to a project area plan adopted before 1976. If the agency has elected to apply all or part of Section 33413,provide the date of the resolution and the applicable Section 33413 requirements addressed in the scope of the resolution. Date. n/a Resolution Scope(applicable Section 33413 requirements): n/a Post-1975 protect areas and geographic areas added by amendment after 1975 to pre-]976 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 BCD-A,Line 3a(3)when reporting debt service expenditures on BCD-C,Line 4c. Other Sources: Non-GAAP(Generally Acceptable Accounting Principles)revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h. California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/l/06) Page I of 6 Agency Name:Redev Agency of the City of Huntington Beach Project Area Name: Huntington Beach Merged Redev Project Proiect Area Housing Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from tlns project area which accrued to the Housing Fund over the reporting year. Any income related to agency-assisted housing located outside the project area(s)should be reported as"Other Revenue"on Line 3j_(of this Schedule A),if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a.-3i.,should also be reported on Line 3j. Enter on Line 3a(l)the full 100%of g oss Tax Increment allocated prior to applicable pass through of funds and deductions for fees(refer to Sections 33401,33446,&33676). Compute the required minimum percentage(%)of gross Tax Increment and enter the amount on Line 3a(2)(A)or 3a(2)(B). Next,report the amount of Tax Increment set-aside before any exemption and/or deferral(if amount set-aside is less than required munmum("/o).explain the difference). If any amount of Tax Increment was exempted or deferred,in addition to completing lines 3a(4)and/or 3a(5),complete Line 4 and/or Line 5. To determine the amount of Tax Increment deposited to the Housing Fund[Line 3a(6)],subtract allowable amounts exempted[Line 3a(4)]or deferred[Line 3a(5)]from the actual amount allocated to the Housing Fund[Line 3a(3)]. a. Tax Increment. (1) 100%of Gross Allocation: $ 15,012,947 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20%required by 333342 (Line 3a(l)x 20%): $ 3,002,589 (B) 30%required by 33333.10(g)(Line 3a(l)x 30%): $ (Senate Bill 211,Chapter 741,Statutes of 2001) (3) Amount of set-aside(Line 3a(2))allocated to Housing Fund $ 3,002,589* * If,pursuant to Section 33334.3(i),less than the mimmum%of Gross Tax Increment(see 3a(2)above)is being allocated from this project area,identify the project area(s)contributing the difference. Explain any other reason(s): (4) Amount Exempted[Health&Safety Code Section 33334.2] (if there is an amount exempted,also complete question#4,next page): ($ ) (5) Amount Deferred[Health&Safety Code Section 33334.6] (if there is an amount deferred,also complete question#5,next page): ($ ) (6) TotaI deposit to the Housing Fund [result of Line 3a(3)through 3a(5)]: $ 3,002,589 b Interest Income: $ c. Rental/Lease Income(combine amounts separately reported to the SCO): $ d. Sale of Real Estate: $ e_ Grants(combine amounts separately reported to the SCO): $ f. Bond Administrative Fees: $ g Deferral Repayments(also complete Line 5c(2)on the next page)- $ h. Loan Repayments: $ i. Debt Proceeds $ Other Revenue(s)[Explain and identify amount(s)]: k Total Project Area Receipts Deposited to Housing Fund(add lines 3a(6).through 3j): $ 3,002,589 California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/1/06) Page 2 of 6 Agency Name:Redev Agency of the City of Huntington Beach Project Area Name: Huntington Beach Merged Redev Project Exemption(s) 4. a. If an exemption was claimed on Page 2,Line 3a(4)to deposit less than the required amount,complete the following information: Check only one of the Health and Safety Code Sections below providing a basis for the exemption: ❑ Section 33334.2(a)(1): No need or 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, I991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C),this exemption expired on June 30,1993 but contracts entered into prior to May 1,1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and reason(s): b. For any exemption claimed on Page 2,Line 3a(4)and/or Line 4a above,identify: Date that initial(1")fording was adopted: / / Resolution# Date sent to HCD: mo day yr mo day yr Adoption date of reporting year fording: / / Resolution# Date sent to HCD: / / mo day yr mo day yr Deferral(s) 5. a. Specify the authority for deferring any set-aside on Line 3a(5). Check only one Health and Safety Code Section boxes: ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to BCD 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-]986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e)expired. It was only allowable in each fiscal year prior to July 1,1996 with certain restrictions. ❑ Other: Specify code Section and reason: b. For any deferral claimed on Page 2,Line 3a(5)and/or Line 5a above,identify: Date that initial 0 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 c. A deferred set-aside pursuant to Section 33334.6(d)constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred over the reporting year and cumulatively as of the end of the reporting year: Amount of Prior Cumulative Amount Amount Deferred Deferrals Repaid Deferred(Net of Any Fiscal Year This Reporting FY During Reporting 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,Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report(BCD-A and HCD-C).indicate the amount of difference and the reason: Difference: $ Reason(s): California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/l/06) Page 3 of 6 Agency Name:Redev Agency of the City of Huntington Beach Project Area Name: Huntington Beach Merged Redev Project Deferral(s)(continued) 5. d. Section 33334.6(g)requires any agency which defers set-asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set-asides,has it adopted such a plan? Yes ❑ No❑ If yes,by what date is the deficit to be elmunated? mo day yr If yes,when was the original plan adopted for the claimed deferral? / 1 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 Reportinlz 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[UnitsBedrooms Project Activity VL L M AM Total Households Permanently Displaced-Elderly 0 0 0 0 0 Households Permanently Displaced-Non Elderly 0 0 0 0 0 Households Permanently Displaced-Total 0 0 0 0 0 Units Lost(Removed or Destroyed)and Required to be Replaced 0 0 0 0 Bedrooms Lost(Removed or Destroyed)and Required to be Replaced 0 10 0 0 Above Moderate Units Lost That Agency is Not Required to Replace 0 0 Above Moderate Bedrooms Lost That Agency is Not Required to Replace 0 10 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 0 0 0 0 0 Households Permanently Displaced- Non Elderly 0 0 0 0 0 Households Permanently Displaced -Total Q a 0 0 0 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 Imes 6a.and 6b. Date / / Name of Agency Custodian n/a mo day yr Date / / Name of Agency Custodian n/a mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/1/06) Page 4 of 6 Agency Name:Redev Agency of the City of Huntington Beach Project Area Name: Huntington Beach Merged Redev Project 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 number of elderly and nonelderly households,by income category,expected to be permanently displaced. (Note:actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced-Non Elderly 0 0 0 0 0 Households Permanently Displaced-Total 0 0 0 0 0 b. As required in Section 33413.5,for the current fiscal year,identify each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date / / Name of Agency Custodian n/a mo day yr Date / / Name of Agency Custodian n/a mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Project Area to Fulfill Requirements of Other Project Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v),agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units,provided the agency conducts a public hearing and finds,based on substantial evidence,that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial,ethnic,or economic segregation. Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ® No. ❑Yes Date initial finding was adopted? / / Resolution# Date sent to HCD: / / mo day yr mo day yr Number of Dwe ing Units Name of Other Project Area(s) VL L M Total n/a 0 0 0 0 California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A sch A(7/t/06) Page 5 of 6 Agency Name-Redev Agency of the City of Huntington Beach Project Area Name: Huntington Beach Merged Redev Project Sales of Owner-Occupied Units Inside the Project 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 another unit equal in affordability,at the same income level,to the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied units during the reporting year? ®No ❑Yes $ Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L M Total Units Sold Over Reporting Year I I I n/a b. Equal Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? ®No DYes $ <-- Total LMIHF Spent On Equal Units Over Number of Units Reporting Year SALES VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr n/a Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago n/a Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago n/a Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago n/a Affordable Units to be Constructed Inside the Project Area Within Two Years 10. Pursuant to Section 33080.4(a)(10),report the number of very low,low,and moderate income units to be financed by any federal, state,local,or private source in order for construction to be completed within two years from the date of the agreement or contract executed over the reporting year. Identify the project and/or contractor,date of the executed agreement or contract,and estimated completion date. Specify the amount reported as an encumbrance on BCD-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 Co{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 n/a n/a n/a $0 $0 0 0 0 0 $ $ $ 1 $ Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/L06) Page 6 of 6 SCHEDULE HCD-A Inside Project Area Activity for Fiscal Year that Ended 09/30/2007 Agency Name: Redevelopment Agency of the City of Huntington Beach Project Area Name: Southeast Coastal Redevelopment Proiect Preparer's Name,Title:Terri King,Assistant Project Manager Preparers E-Mail Address-tkinga surfctty-hb.org Preparer's Telephone No:(714)_960-8831 Preparer's Facsimile No:(714)375-5087 GENERAL INFORMATION 1. Project Area Information a 1. Year V plan for project area was adopted. 2002 2. Year that plan was last amended(if applicable): n/a 3. Was plan amended after 2001 to extend time limits per Senate Bill 211 (Chapter 741,Statutes of 2001)?Yes_No X 4. Current expiration of plan: 2032 b. If project area name has changed,give previous name(s)or number:n/a c. Year(s)of any mergers of the project area: n/a Identify former project areas that merged: n/a d. Year(s)project area plan was amended involving real property that either: (1) Added property to plan: n/a (2) Removed property from plan, n/a 2_ Affordable Housing Replacement and/or Inclusionary or Production Requirements(Section 33413) Pre-1976 project areas not subsequently amended after 1975: Pursuant to Section 33413(d),only Section 33413(a)replacement requirements apply to dwelling units destroyed or removed after 1995. The Agency can choose to apply all or part of Section 33413 to 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:n/a Resolution Scope(applicable Section 33413 requirements):n/a Post-1975 project areas and geogrWhic 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(l),3b-3f,and 3i.can be taken from what is reported to the State Controller's Office(SCO)on the Statement of Income and Expenditures as part of the Redevelopment Agency's Financial Transactions Report,except for the reclassifying of Transfers-In from Internal Funds and the reporting of Other Sources as discussed below: Transfers-In from other internal funds: Report the amount of transferred funds on applicable HCD-A, lines 3a j. For example,report the amount transferred from the Debt Service Fund to the Housing Fund for the deposit of the required set-aside percentage/amount by reporting gross tax increment on HCD-A, Line 3a(I)and report the Housing Fund's share of expenditures for debt service on HCD-C,Line 4c. Do not report"net"funds transferred from the Debt Service Fund on HCD-A,Line 3a(3)when reporting debt service expenditures on HCD-C,Line 4c. Other Sources. Non-GAAP(Generally Acceptable Accounting Principles)revenues such as from land sales for those agencies using the Land Held for Resale method to record land sales should be reported on HCD-A Line 3d. Housing fund receipts for the repayment of loan principal should be included on HCD-A Line 3h. California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-A set,A(7/1 ro7) Page I of 6 Agency Name:Redevelopment Agency of the City of Huntington Beach Project Area Name:Southeast Coastal Redev Project Proiect Area Housine Fund Revenues and Other Sources 3. Report all revenues and other sources of funds from this project area which accrued to the Housing Fund over the reporting year Any income related to agency-assisted housing located outside the project area(s)should be reported as"Other Revenue"on Line 3j.(of this Schedule A),if this project area is named as beneficiary in the authorizing resolution. Any other revenue sources not reported on lines 3a:3i.,should also be reported on Line 3j. Enter on Line 3a(1)the full 100%of gross Tax Increment allocated prior toWplicable pass through of funds and deductions for fees(refer to Sections 33401,33446,&33676). Compute the required minimum percentage(%)of gross Tax Increment and enter the amount on Line 3a(2)(A)or 3a(2)(B). Next,report the amount of Tax Increment set-aside before any exemption and/or deferral(if amount set-aside is less than required minimum(%)explain the difference). If any amount of Tax Increment was exempted or deferred,in addition to completing lines 3a(4)and/or 3a(5),complete Line 4 and/or Line 5. To determine the amount of Tax Increment deposited to the Housing Fund[Line 3a(6)],subtract allowable amounts exempted[Line 3a(4)]or deferred[Line 3a(5)]from the actual amount allocated to the Housing Fund[Line 3a(3)]. a. Tax Increment: (1) 100%of Gross Allocation: $ 296,183 (2) Calculate only 1 set-aside amount: either A or B below: (A) 20%required by 33334.2 (Line 3a(1)x 20%): $ 59,237 (B) 30%required by 33333.10(g)(Line 3a(1)x 30%): $ (Senate Bill 211,Chapter 741,Statutes of 2001) (3) Amount of set-aside(Line 3a(2))allocated to Housing Fund $ 59,237* * If,pursuant to Section 33334.3(i),less than the mmunum%of Gross Tax Increment(see 3a(2)above)is being allocated from this project area,identify the project area(s)contributing the difference. Explain any other reason(s): (4) Amount Exempted[Health&Safety Code Section 33334.21 (if there is an amount exempted,also complete question#4,next page): ($ ) (5) Amount Deferred[Health&Safety Code Section 33334.61 (if there is an amount deferred,also complete question#5,next page): ($ ) (6) Total deposit to the Housing Fund [result of Line 3a(3)through 3a(5)]: $ 59,237 b. Interest Income: $ c. Rental/Lease Income(combine amounts separately reported to the SCO): $ d. Sale of Real Estate: $ e. Grants(combine amounts separately reported to the SCO): $ f. Bond Administrative Fees: $ g. Deferral Repayments(also complete Line 5c(2)on the next page): $ h. Loan Repayments: $ i. Debt Proceeds: $ j. Other Revenue(s)[Explain and identify amount(s)]: k. Total Project Area Receipts Deposited to Housing Fund(add lines 3a(6).through 3j.): $ 59,237 California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/l/06) Page 2 of 6 Agency Name-Redevelopment Agency of the City of Huntington Beach Project Area Name: Southeast Coastal Redev Project Exemptions} 4. a_ If an exemption was claimed on Page 2,Line 3a(4)to deposit less than the required amount,complete the following information- Check only of the Health and Safety Code Sections below providing a basis for the exemption: ❑ Section 33334.2(a)(1): No need in community to increase/improve supply of lower or moderate income housing. ❑ Section 33334.2(a)(2): Less than the minimum set-aside%(20%or 30%)is sufficient to meet the need. ❑ Section 33334.2(a)(3): Community is making substantial effort equivalent in value to minimum set-aside%(20%or 30%) and has specific contractual obligations incurred before May 1, 1991 requiring continued use of this funding. Note: Pursuant to Section 33334.2(a)(3)(C),this exemption expired on June 30,1993 but contracts entered into prior to May 1,1991 may not be subject to the exemption sunset. ❑ Other: Specify code section and reason(s): b. For any exemption claimed on Page 2,Line 3a(4)and/or Line 4a above,identify: Date that initial(V)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 Deferral(s) 5. a. Specify the authority for deferring any set-aside on Line 3a(5). Check only one Health and Safety Code Section boxes: ❑ Section 33334.6(d): Applicable to project areas approved before 1986 in which the required resolution was sent to HCD before September 1986 regarding needing tax increment to meet existing obligations. Existing obligations can include those incurred after 1985,if net proceeds were used to refinance pre-1986 listed obligations. Note: The deferral previously authorized by Section 33334.6(e)expired. It was only allowable in each fiscal year prior to July 1,1996 with certain restrictions. ❑ Other: Specify code Section and reason: b. For any deferral claimed on Page 2,Line 3a(5)and/or Line 5a above,identify: Date that initial(I')finding was adopted: Resolution# 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 c. A deferred set-aside pursuant to Section 33334.6(d)constitutes indebtedness to the Housing Fund. Summarize the amount(s) of set-aside deferred over the reporting year and cumulatively as of the end of the reporting year: Amount of Prior Cumulative Amount Amount Deferred Deferrals Repaid Deferred(Net of Any Fiscal Year This Reporting FY During Reporting 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,Line 8a. If the prior FY cumulative deferral shown above differs from what was reported on the last HCD report(HCD-A and HCD-C),indicate the amount of difference and the reason: Difference- $ Reason(s): California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Scb A(7/l/06) Page 3 of 6 Agency Name:Redevelopment Agency of the City of Huntington Beach Project Area Name:Southeast Coastal Redev Project Deferral(s)(continued) 5. d. Section 33334.6(g)requires any agency which defers set-asides to adopt a plan to eliminate the deficit in subsequent years. If this agency has deferred set-asides,has it adopted such a plan? Yes ❑ No❑ If yes,by what date is the deficit to be eliminated? / / mo day yr If yes,when was the original plan adopted for the claimed deferral? mo day yr Identify Resolution# Date Resolution sent to HCD mo day yr When was the last amended plan adopted for the claimed deferral? / / mo day yr Identify Resolution# Date Resolution sent to HCD mo day yr Actual Protect Area Households Displaced and Units and Bedrooms Lost Over Reporting Year: 6. a. Redevelopment Project Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3),report by income category the number of elderly and nonelderly households permanently displaced and the number of units and bedrooms removed or destroyed,over the reporting year,(refer to Section 33413 for unit and bedroom replacement requirements). Number of Households/Units/Bedrooms Project Activity VL L M AM Total Households Permanently Displaced-Elderly 0 0 0 0 0 Households Permanently Displaced-Non Elderly 0 0 0 0 0 Households Permanently Displaced-Total 0 0 0 0 0 Units Lost(Removed or Destroyed)and Required to be Replaced 0 0 0 0 Bedrooms Lost(Removed or Destroyed)and Required to be Replaced 10 10 10 0 Above Moderate Units Lost That Agency is Not Required to Replace 0 0 Above Moderate Bedrooms Lost That Agency is Not Required to Replace 0 0 b. Other Activity. Pursuant to Sections 33080.4(a)(1)and(a)(3)based on activities other than the destruction or removal of dwelling units and bedrooms reported on Line 6a,report by income category the number of elderly and nonelderly households permanently displaced over the reporting year: Number of Households Other Activity VL L M AM Total Households Permanently Displaced - Elderly 0 0 0 0 0 Households Permanently Displaced-Non Elderly 0 0 0 0 0 Households Permanently Displaced-Total 0 0 0 0 0 c. As required in Section 33413.5,identify,over the reporting 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 n/a mo day yr Date / / Name of Agency Custodian n/a mo day yr PIease attach a separate sheet of paper listing any additional housing plans adopted. California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/l/06) Page 4 of 6 Agency Name:Redevelopment Agency of the City of Huntington Beach Project Area Name:Southeast Coastal Redev Project 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 number of elderly and nonelderly households,by income category,expected to be permanently displaced. (Note:actual displacements will be reported for the next reporting year on Line 6). Number of Households Project Activity VL L M AM Total Households Permanently Displaced -Elderly 0 0 0 0 0 Households Permanently Displaced-Non Elderly 0 0 0 0 0 Households Permanently Displaced -Total 0 0 0 0 0 b. As required in Section 33413.5,for the current fiscal year,identify each replacement housing plan required to be adopted before the permanent displacement,destruction,and/or removal of dwelling units and bedrooms impacting the households reported in 7a. Date / / Name of Agency Custodian n/a mo day yr Date / / Name of Agency Custodian n/a mo day yr Please attach a separate sheet of paper listing any additional housing plans adopted. Units Developed Inside the Project Area to Fulfill Requirements of Other Project Area(s) 8. Pursuant to Section 33413(b)(2)(A)(v),agencies may choose one or more project areas to fulfill another project area's requirement to construct new or substantially rehabilitate dwelling units,provided the agency conducts a public hearing and finds,based on substantial evidence,that the aggregation of dwelling units in one or more project areas will not cause or exacerbate racial,ethnic,or economic segregation. Were any dwelling units in this project area developed to partially or completely satisfy another project area's requirement to construct new or substantially rehabilitate dwelling units? ® No. ®Yes. Date initial fording 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 n/a 0 0 0 0 California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/l/06) Page 5 of 6 Agency Name.Redevelopment Agency of the City of Huntington Beach Project Area Name: Southeast Coastal Redev Project Sales of Owner-Occupied Units Inside the Proiect Area Prior to the Expiration of Land Use Controls 9e 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 Iand use controls established by the agency. Agencies must deposit sale proceeds into the Low and Moderate Income Housing Fund and within three(3)years from the date the unit was sold,expend funds to make another unit equal in affordability,at the same income level,to the unit sold. a. Sales. Did the agency permit the sale of any owner-occupied units during the reporting year? ®No E]Yes $ �— Total Proceeds From Sales Over Reporting Year Number of Units SALES VL L Afl 1 Total Units Sold Over Reporting Year n/a b. Equal Units. Were reporting year funds spent to make units equal in affordability to units sold over the last three reporting years? ®No DYes $ <— Total LMIHF Spent On Equal Units Over Number of Units Reporting Year SALES VL L M Total Units Made Equal This Reporting Yr to Units Sold Over This Reporting Yr n/a Units Made Equal This Reporting Yr to Units Sold One Reporting Yr Ago n/a Units Made Equal This Reporting Yr to Units Sold Two Reporting Yrs Ago n/a Units Made Equal This Reporting Yr to Units Sold Three Reporting Yrs Ago n/a 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 whn 2 yrs of Cot B [Line Gal [Line 7a] VL L M Total n/a Na n/a $0 $0 0 0 0 0 $ $ Please attach a separate sheet of paper to list additional information. California Redevelopment Agencies—Fiscal Year 2005-2006 HCD-A Sch A(7/l/06) Page 6 of 6 SCHEDULE HCD-C Agency-wide Activity for Fiscal Year Ended 09/30,12007 Agency Name:Redevelopment Agency of the City of Huntmoon Beach County: Orange Preparers Name,Title:Tem King,Assistant Project Manager Preparer's E-MaiI Address:tking_(a@surfcit -bb.org Preparer's Telephone No: (714)960-8831 Preparer's Facsimile No:(714)375-5087 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) $ 8,236,353 a. If Beginning Balance requires adjustment(s),describe and provide dollar amount(positive/negative) making up total adjustment: Use<$>for negative amounts or amounts to be subtracted. Prior year adjustment to agree to state controller report $ 171,485 b. Adjusted Beginning Balance[Beginning Balance plus+or minus<->Total Adjustment(s)] $ 8,407,838 2. Project Area(s)Receipts and Rousing Fund Revenues a. Total Project Area(s)Receipts.Total Summed amount of HCD-Schedule A(s)(from Line 3k) $ 3,061,826 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 Interest $ 641,464 Other $ 31 c. Total Housing Fund Resources $ 641,495 3- 'Total Resources(Line lb.+Line 2a+Line 2c.) $ 12,111,159 NOTES: Many amounts to report as Expenditures and Other Uses(beginning on the next page)should be taken from amounts reported to the State Controllers 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 Imes 4a=k of Schedule C. For example,transfers from the Housing Fund to the Debt Service Fund for the repayment of principal and interest of debt proceeds deposited to the Housing Fund should be reported on the applicable item comprising HCD-C Line 4c,providing tax increment(gross and deposit amounts)were reported on Sch-As. External transfers out of the Agency should be reported on HCD-C Line 4j(e.g.: transfer of excess surplus to the County Housing Authority). Other Uses: Non-GAAP(Generally Accepted Accounting Principles)recording of expenditures such as land purchases for agencies using the Land Held for Resale method to record land purchases should be reported on HCD-C Line 4a(1) Funds spent resulting in loans to the Housing Fund should be included in HCD-C lines 4b.,4f.,4g.,4h.and 4i as appropriate. The statutory cite pertaining to Community Redevelopment Law(CRL)is provided for preparers to review to determine the appropriateness of 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 Internet jwebsite: http.' tiN ay.legtnfo ca.Qov.(Calijornia Law)]beginning with Section 33000 of the Health and Safety Code. California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/I/07) Page I of 10 Agency Name: Redevelopment Agency of the City of Huntington Beach 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) * $0 (2) Housing Assets(Fixed Asset) * $0 (3) Acquisition Expense $0 (4) Operation of Acquired Property $0 (5) Relocation Costs $0 (6) Relocation Payments $0 (7) Site Clearance Costs $0 (8) Disposal Costs $0 (9) Other[Explain and identify amount(s)]: $0 $0 $0 $o * Reported to SCO as part of Assets and Other Debts (10) Subtotal Property/Building Sites/Housing Acquisition(Sum of Lines 1 —9) $0 b. Subsidies from Low and Moderate Income HousingFund(LMIHF): (1) 1"Time Homebuyer Down Payment Assistance $0 (2) Rental Subsidies $0 (3) Purchase of Affordability Covenants[33413(b)2(B)] $0 (4) Other[Explain and identify amount(s)]: Acquisition/Rehab Assistance Loan $ (Jamboree I&Jamboree II) $925,612 $ $925,612 (5) Subtotal Subsidies from LMI]1F(Sum of Lines I —4) $925,612 c. Debt Service[33334.2(e)(9)]. 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 $ (c) City/County Advances&Loans $ (d) U.S.State&Other Long—Term Debt $ (2) Interest Expense $ (3) Debt Issuance Costs $ (4) Other[Explain and identify amount(s)]: $ $ (5) Subtotal Debt Service(Sum of Lines I —4) $ d Planning and Administration Costs[33334.3(e)(1)]' (1) Administration Costs $119,050 (2) Professional Services(non project specific) $ 86,140 (3) Planning/Survey/Design(non project specific) $ (4) Indirect Nonprofit Costs[33334.3(e)(1)(B)] $ (5) Other[Explain and identify amount(s)]: Mise Planning and Administrative Costs $612 $ $612 (6) Subtotal Planning and Administration(Sum of Lines 1 —5) $205,802 California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/l/07) Page 2 of I 1 Agency Name: Redevelopment Agency of the City of Huntington Beach 4. Expenditures,Loans, and Other Uses(continued) e. On/Off-Site Improvements[33334.2(e)(2)] Complete Item 13 $0 f. Housing Construction[33334.2(e)(5)] $0 g. Housing Rehabilitation[33334.2(e)(7)] $0 h. Maintain Supply of Mobilehome Parks[333342(e)(10)] $0 i. Preservation of At-Risk Units[33334.2(e)(I1)] $0 j. Transfers Out of Agency (1) For Transit village Development Plan(33334.19) $0 (2) Excess Surplus[33334.12(a)(1)(A)] $0 (3) Other(specify code section authorizing transfer and amount) A. Section $0 B. Section $0 Other Transfers Subtotal $0 (4)Subtotal Transfers Out of Agency(Sum of j(1)through j(3)) $0 k. Other Expenditures,Loans,and Uses[Explain and identify amount(s)]: Acquisition of Inclusionary Housing Unit—18862 Breezy Lane Loan $408,282 so so Subtotal Other Expenditures,Loans,and Uses $408,282 l- Total Expenditures,Loans, and Other Uses(Sum of lines 4a.-k.) $1,539,696 5- Net Resources Available[End of Reporting Fiscal Year] [Page 1,Line 3,Total Resources minus Total Expenditures,Loans,and Other t}ses on Line 41.1 $10,571,463 6- Encumbrances and Unencumbered Balance a. Encumbrances. Amount of Line 5 reserved for future payment of legal contract(s) or agreement(s).See Section 33334.12(g)(2)for definition. $ 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 11 a. $ 10,571,463 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 $10,571,463 8. Other Housing Fund Assets(non recurrent receivables)not included as part of Line 5 a. Indebtedness from Deferrals of Tax Increment(Sec.33334.6) [refer to Sch-A(s),Line 5c(2)]_ $ b. Value of Land Purchased with Housing Funds and Held for Development of Affordable Housing. Complete Sch-C item 14 $0 c. Loans Receivable for Housing Activities $1,362,614 d. Residual Receipt Loans(periodic/fluctuating payments) $ e. ERAF Loans Receivable(all years)(Sec.33681) $731,313 f Other Assets[Explain and identify amount(s)]: $ $ 9- Total Other Housing Fund Assets(Sum of lines 8a.-f.) $2,093,927 9- TOTAL FUND EQUITY[Line 5(Net Resources Available)+8g(Total Other Housing Fund Assets]$12,665,390 Compare Line 9 to the below amount reported to the SCO(Balance Sheet of Redevelopment Agencies Financial Transactions Report. [Explain differences and identify amount(s)]: $ ENTER LOW-MOD FUND TOTAL EQUITIES(BALANCE SHEET)REPORTED TO SCO $12,665,390 California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/l/07) Page 3 of 1 I Agency Name: Redevelopment Agency of the City of Huntington Beach 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 funds reserved and committed pursuant to a legally enforceable contract or agreement for expenditure for authorized redevelopment housing activities[Section 33334.12(g)(2)]. For Excess Surplus calculation purposes,carry over the prior year's HCD Schedule C Adjusted Balance as the Adjusted Balance on the first day of the reporting fiscal year_ Determine which is Iarger:(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 year. Columns 6 and 7 track prior years'Excess Surplus. Column I 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 I S`Day I"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 Housing Fund FYs Balance Balances End of Reporting Year End of Reporting Year 4 RRt Yrs Ago FY02103 $1,819,674 $ None $ Not Applicable $ Not Applicable 3 RRt Yrs Ago FY 03104 $1,909,236 $ None $ Not Applicable $ Not Applicable 2 RRt Yrs Ago FY 04105 $2,301,008 $ None $ Not Applicable $ Not Applicable I RRt Yr Ago FY 05/06 $2,779,435 $ None $ Not Applicable $ Not Applicable CURRENT Sum of Column 2 Last Years Sch C Col 4 mmus•larger Reporting Adjusted Balance of Col 3 or$1 mm Year (report positive$) FY 06/07 $8,809,353 $8,236,353 $ None $ Not Applicable $ Not Applicable 11. Reporting Year Ending Unencumbered Balance and Adjusted Balance: a. Unencumbered Balance(End of Year)[Page 3,Line 6b] $10,571,463 b. If eligible,adjust the Unencumbered Balance for: (1) Debt Proceeds[33334.12(g)(3)(B)]: Identify unWent 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 funds, if 49%or more of new or rehabilitated units will be affordable to lower-mcome households $ 12.Adjusted Balance(for next year's determination of Excess Surplus)[Line I]a minus sum of l lb(1)and 1lb(2)] $10,571,463 Note:Do not enter Adjusted Balance in Col 4. it is to be reported as next year's Ist day amount to determine Excess Surplus a. If there is remaining Excess Surplus from what was determined on the first day of the reporting year,describe the agency's plan(as specified in Section 33334.10)for transferring,encumbering,or expending excess surplus: b. If the plan described in ]2a.was adopted,enter the plan adoption date: mo day yr California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/l/07) Page 4 of I I Agency Name: Redevelopment Agency of the City of Huntington Beach 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 Hazard Duration of Deed Restriction Very Low 0 0 0 0 Low 0 0 0 0 Moderate 0 0 0 0 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 Not Applicable Please attach a separate sheet of paper listing any additional sites not reported above. 15. Section 3333413 requires agencies which have used the Housing Fund to assist mortgagors in a homeownership mortgage revenue bond program,or home financing program described in that Section,to provide the following information: a Has your agency used the authority related to definitions of income or family size adjustment factors provided in Section 33334.13(a)? Yes❑ No ❑ Not Applicable b. Has the agency complied with requirements in Section 33334.13(b)related to assistance for very low-income households equal to twice that provided for above moderate-income households? Yes❑ No ❑ Not Applicable California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/l/07) Page 5 of 11 Agency Name: Redevelopment Agency of the City of Huntington Beach 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$ 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. DONOTSUBMITANYDOCUMENTS/RECORDS. Has your agency made any deposits to or withdrawals from the LMIHF? Yes ❑ No ❑ If yes,identify the document(s)describing the agency's deposits and withdrawals by listing for each document,the following (attach additional pages of similar information below as necessary): Name of document(e g.ledger,journal,etc) Name of Agency Custodian(person). Custodian's telephone number: Place where record can be accessed: Name of document(e.g.ledger,journal,etc.): Name of Agency Custodian(person): Custodian's telephone number: Place where record can be accessed: 18. Use of Other(non Low-Mod Funds)Redevelopment Funds for Housing 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. Suggestions/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? Current law requires that the State Controller Report be presented to the Agency prior to its being submitted to the State Controller and HCD. For those agencies with fiscal years from October Ito September 30, the deadline for submitting the State Controller Report is March 31 st(180 days after the end of their fiscal year). This presents a problem, since HCD does not make the online database available for input by these agencies until the middle of March. Subsequently, these agencies are forced to do their reports by hand in order to get the report approved by the Agency (all items must be submitted at least two weeks prior to the Agency meeting)and submitted to the State Controller and HCD before March 31". This takes much more time and effort on the part of limited staff and, because it is more beneficial and efficient to access the annual report data online, it is likely that the same information will again have to be entered into the database at sometime in the future We respectfully request that a solution to this problem besought as soon as possible. 20 Annual Monitoring Reports of Previously Completed Affordable Housing Pro jects/Programs(H&SC 33418) Were all Annual Monitoring Reports received for all prior years' affordable housing projects/programs? Yes ❑ No ❑ Staff is currently in the process of collecting all such reports. California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/t/07) Page 6 of I I Agency Name: Redevelopment Agency of the City of Huntington Beach California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(1/1/07) Page 7 of 11 Agency Name: Redevelopment A ency of the City of Huntington Beach 21.Excess Surplus Expenditure Plan(H&SC 33334.10(a) California Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C Sch C(7/l/07) Page 8 of 11 Agency Name: Redevelopment Agency of the City of Huntington Beach 22.Footnote area to provide additional information. California Redevelopment Agencies-fiscal Year 2006-2007 HCD-C sch C(7/l/07) Page 9 of 11 Agency Name: Redevelopment Agency of the City of Huntington Beach 23, Proiect Achievement and HCD Director's Award for Housinp-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 Directors 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 95814 or data can be emailed by attaching the file and sending it to: rlevvCa_,hcd ca goA,- AGENCY INFORMATION • Project Type(Choose one of the categories below and one kind of assistance representing the primary 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/financial/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. Califoma Redevelopment Agencies—Fiscal Year 2006-2007 HCD-C sch C(7/l/07) Page 10 of I 1 Agency Name: Redevelopment Agency of the City of Huntington Beach Project 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)of struggled for several years over what to do about the 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 heir 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 development for the area would be single-family owner-occupied homes. The Agency bonded its tax increment to fiend 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 2006-2007 HCD-C Sch C(7/l/07) Page I l of I I SCHEDULE HCD-D1 GENERAL PROJECT/PROGRAM INFORMATION For each different Project/Program (area/name/agy or nonagy 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: Redevelopment Agency of the City of Huntington Beach Identify Project Area or specify"Outside": Huntington Beach Merged Redevelopment Project General Title of Housing Project/Program: ACQUISITION-REHAB JAMBOREE I Project/Program Address(optional): Street: 17372 Koledo Lane City: Huntington Beach ZIP: 92647 Owner Name (optional): Jamboree Housing Corporation Total Project/Program Units: #5 Restricted Units: #5 Unrestricted Units: #0 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 # 1 end (Tenant was ineligible upon acquisition and is being permanently relocated) Number of bedrooms occupied by ineligible persons(e.g. ineligible income/#of residents in unit)at FY #2 end (Tenant was ineligible upon acquisition and is being permanently relocated) Number of units restricted for special needs: (number must not exceed"Total Project Units') #0 Number of units restricted that are serving one or more Special Needs: # 0_ ❑ 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 LM/HF"Sch-D6) Affordability and/or Special Need Use Restriction Term (enter day/month/year using digits, e.g. 07/01/2002): Re lacement Housing Units Inclusjonary Housing Units Other HousingUnits Provided With LMIHF Without LMIHF Restriction Start Date October 16, 2006 Restriction End Date October 16, 2066 Perpetuity Funding Sources: Redevelopment Funds: $ 485,000 Federal Funds $ 800,000 State Funds: $ Other Local Funds: $ Private Funds: $ 223,326 Owner's Equity: $ TCAC/Federal Award: $ TCAC/State Award: $ Total Development/Purchase Cost: $ 1,508,326 Check all appropriate form(s) below that will be used to identify all of this Project's/Program's Units: ❑ Replacement Housing Units Inclusionary Units. Other Housing Units Provided: (Sch HCD-D2) ❑ Insjde Project Area (Sch HCD-D3) ® With LMIHF (Sch HCD-D5) ❑ Outside Project Area (Sch HCD-D4) ❑ Without LMIHF (Sch HCD-D6) ❑ No Agency Assistance (Sch HCD-D7) 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: Redevelopment Agency of the City of Huntington Beach Identify Project Area or specify"Outside": Huntington Beach Merged Redevelopment Project General Title of Housing Project/Program: ACQUISITION-REHAB JAMBOREE II Project/Program Address (optional): Street: 17362 Koledo Lane City: Huntington Beach ZIP: 92647 Owner Name(optional): Jamboree Housing Corporation Total Project/Program Units: #5 Restricted Units: #5 Unrestricted Units: #0 For protects/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 # 1 end (Tenant was ineligible upon acquisition and is being permanently relocated) Number of bedrooms occupied by ineligible persons (e.g. ineligible income/#of residents in unit)at FY #2 end (Tenant was ineligible upon acquisition and is being permanently relocated) Number of units restricted for special needs: (number must not exceed"Total Project Units') #0 Number of units restricted that are serving one or more Special Needs: # 0_ El 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 LM1HF"Sch-D6) Affordability and/or Special Need Use Restriction Term (enter day/month/year using digits, e.g. 07/01/2002): Re lacement Housing Units Inclusions Housing Units Other Housing Units Provided With LMIHF Without LMIHF Restriction Start Date May 21, 2007 Restriction End Date May 21, 2067 Perpetuity Funding Sources: Redevelopment Funds: $ 780,000 Federal Funds $ 800,000 State Funds: $ Other Local Funds: $ Private Funds. $ 191,000 Owner's Equity: $ TCAC/Federal Award: $ TCAC/State Award: $ Total Development/Purchase Cost: $ 1,771,000 Check all appropriate form(s) below that will be used to identify all of this Project's/Program'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-D6) ❑ No Agency Assistance (Sch HCD-D7) SCHEDULE HCD-D5 OTHER HOUSING UNITS PROVIDED (AGENCY ASSISTANCE WITH LMIHF) (units not claimed on Schedule D-2,3,4,6,7) (lack minimum replacement or inclusionary restrictions and/or not controlled by agency or community) Agency: Redevelopment Agency of the City of Huntington Beach Redevelopment Project Area Name, or"Outside": Huntington Beach Merged Redevelopment Project Affordable Housing Project Name: Acquisition Rehab Jamboree I Check only one: ® Inside Project Area ❑ Outside Project Area Check only one. If both apply, complete a separate form for each (with another Sch-131): ❑ Agency Developed ® Non-Agency Developed Check only one. If both apply, complete a separate form for each (with another Sch-Di): ® Rental ❑ Owner-Occupied Enter the number of units for each applicable activity below: Note: "INELG"refers to a household that is no longer eligible but still a temporary resident and part of the total A. New Construction Units(non replacement/non inclusionary): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG. B. Substantial Rehabilitation Units (value increase with land > 25% (non replacement/non inclusionary): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG moo 00 00 C. Non-Substantial Rehabilitation Units: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG. 4 1 15 1 � 1 D. Acquisition of Units Only(non acquisition of affordability covenants for inclusionary credit): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG E. Mobilehome Owner/Resident: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD �pTOTAL� INELG VLOW LOW MOD TOTAL INELG F. Mobilehome Park Owner/Resident: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG California Redevelopment Agencies-Fiscal Year 2006-2007 HCD-D5 Agency Name. Redevelopment Agency of the City of Huntington Beach Housing Project Name: Acq/Rehab Jamboree I SCHEDULE HCD-D5 OTHER HOUSING UNITS PROVIDED (AGENCY ASSISTANCE WITH LMIHF) (continued) Note. "INELG"refers to a household that is no longer eligible but still a temporary resident and part of the total G. Preservation (H&S 33334.2(e)(11) Threat of Public Assisted/Subsidized Rentals Converted to Market): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG H. Subsidy (other than any activity already reported on this form►: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG I. Other Assistance: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG TOTAL UNITS (Add only TOTAL of all"TOTAL Elderly/Non Elderly Units"): If TOTAL UNITS is less than"Total Project Units"shown on HCD Schedule DI,report the remainder as instructed below. 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) ❑ Without LMIHF (Sch HCD-D6) ❑ Outside Project Area (Sch HCD-D4) ❑ No Assistance (Sch HCD-D7) California Redevelopment Agencies-Fiscal Year 2006-2007 HCD-135 Sch Ds(7/1ro7) Page 2 of 2 SCHEDULE HCD-D5 OTHER HOUSING UNITS PROVIDED (AGENCY ASSISTANCE WITH LMIHF) (units not claimed on Schedule D-2,3,4,6,7) (lack minimum replacement or inclusionary restrictions and/or not controlled by agency or community) Agency: Redevelopment Agency of the City of Huntington Beach Redevelopment Project Area Name, or"Outside": Huntington Beach Merged Redevelopment Project Affordable Housing Project Name: Acquisition Rehab Jamboree II Check only one: ® Inside Project Area ❑ Outside Project Area Check only one. If both apply, complete a separate form for each (with another Sch-D1): ❑ Agency Developed ® Non-Agency Developed Check only one. If both apply, complete a separate form for each (with another Sch-D1): ® Rental ❑ Owner-Occupied Enter the number of units for each applicable activity below: Note: "INELG"refers to a household that is no longer eligible but still a temporary resident and part of the total A. New Construction Units(non replacement/non inclusionary): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG B. Substantial Rehabilitation Units (value increase with land > 25% (non replacement/non inclusionary): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG. C. Non-Substantial Rehabilitation Units: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG I I 5 F D. Acquisition of Units Only (non acquisition of affordability covenants for inclusionary credit): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG. VLOW LOW MOD TOTAL INELG E. Mobilehome Owner/Resident: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG =====U EF-1 F. Mobilehome Park Owner/Resident: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG I 1 10 1 � California Redevelopment Agencies-Fiscal Year 2006-2007 HCD-D5 Agency Name Redevelopment Agency of the City of Huntington Beach Housing Project Name Acg/Rchab Jamboree II SCHEDULE HCD-D5 OTHER HOUSING UNITS PROVIDED(AGENCY ASSISTANCE WITH LMIHF) (continued) Note: "INELG"refers to a household that is no longer eligible but still a temporary resident and part of the total G. Preservation (H&S 33334.2(e)(11) Threat of Public Assisted/Subsidized Rentals Converted to Market): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG J I 0 I I H. Subsidy(other than any activity already reported on this form): Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG F I I II I. Other Assistance: Elderly Units Non Elderly Units TOTAL Elderly&Non Elderly Units VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG VLOW LOW MOD TOTAL INELG I I ED TOTAL UNITS(Add only TOTAL of all"TOTAL Elderly/Non Elderly Units"): If TOTAL UNITS is less than "Total Project Units"shown on HCD Schedule D1,report the remainder as instructed below. 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) ❑ Without LMIHF (Sch HCD-D6) ❑ Outside Project Area (Sch HCD-D4) ❑ No Assistance (Sch HCD-137) California Redevelopment Agencies-Fiscal Year 2006-2007 HCD-D5 Sch D5(7/V07) Page 2 of 2 SCHEDULE HCD-D7 HOUSING UNITS PROVIDED (NO AGENCY ASSISTANCE) (units not claimed on Schedule D-2,3,4,5,6) Agency: Redevelopment Agency of the City of Huntington Beach Redevelopment Project Area Name, or"Outside": Huntington Beach Merged Redevelopment Project Housing Project Name: Non-assisted, market-rate units inside Huntington Beach Merged Redevelopment Project NOTE. On this form, only report UNITS NOT REPORTED on HCDD2 through HCD-D6 for project/program units that have not received any 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 project/program 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)reconcile any difference between totalproject/program units reported on HCD DI compared to the sum of all the project's/program's units reported on HCD-D2 through HCD-D6, and(2)account for other (nonassisted)housing units provided inside a project area that increases the agency's inclusionary obligation. Reportin;a nonagency assisted projects outside a project area is optional, if units do not make-up any part of total units reported on HCD Dl. HCD D7 Reporting Examples Example I (reportingpartial units): A new 100 unitproject was built(reported on HCD Dl,Inside or Outside aproject 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)J. The remaining 50(privately financed and developed market-rate units)must be reported on HCD D7 to makeup the difference between 100 reported on DI and 50 reported on D2 D6). Example 2(reporting all units): Inside a project area a condemned,historic property was substantially rehabilitated(multi- amily or single-family),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: 12 12 Substantial Rehabilitation Units: Total Units: 12 12 If agency did not assist any part of project identify Building Permit Number and Date: BUILDING PERMIT NUMBER BUILDING PERMIT DATE 111 6" Street 82004-096464 1015106 113 6"Street B2004-096465 1015106 313 2"d Street C2006-006703 9114107 315 2Rd Street C2006-008705 9114107 7832 Cypress Street C2005-008261 914107 217 6t'Street B2004-097064 12/13/06 21396 Vera Circle (6 condo units) B2004-096863 1129107 ❑ 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: California Redevelopment Agencies-Fiscal Year 2006-2007 HCD-D7 Agency Name: Redevelopment Agency Agc4cy of the City of Huntington Beach Project Name: Huntin on Bch Merged Redev Project Total Units: If agency did not assist any part of oroiect identify Building Permit Number and Date: I 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) California Redevelopment Agencies-Fiscal Year 2006-07 HCD-D7 Sch D7(7/1/07) Page 2 of 2 SCHEDULE HCD-E CALCULATION OF INCREASE IN AGENCY 'S INCLUSIONARY OBLIGATION BASED ON SPECIFIED HOUSING ACTIVITY DURING THE REPORTING YEAR Agency: Redevelopment Agency of the City of Huntington Beach 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)l AGENCY DEVELOPED UNITS DURING THE REPORTING YEAR BOTH INSIDE AND OUTSIDE OF A PROJECT AREA 1. New Units Developed by the Agency 0 2. Substantially Rehabilitated Units Developed by the Agency 0 3. Subtotal -Baseline of Agpncy Developed Units (add lines 1 &2) 0 4. Subtotal of Increased Inclusionary Obligation(Line 3 x 30%) (see Notes I and 2 below) 0 5. Very-Low Inclusionary Obligation Increase Units (Line 4 x 50%) 0 PART H [H&SC Section 33413(b)(2)j NONAGENCY DEVELOPED UNITS DURING THE REPORTING YEAR ONLY INSIDE A PROJECT AREA 6. New Units Developed by Any Nona�ency Person or Entity 0 7. Substantially Rehabilitated Units Developed by Any Nonagency Person or Entity 0 8. Subtotal -Baseline of Nonaency Developed Units (add lines 6 & 7) 0 9. Subtotal of Increased Inclusionary Obligation(Line 8 x 15%) (see Notes 1 and 2 below) 0 10. Very-Low Inclusionary Obligation Increase (Line 9 x 400/101) 0 PART III REPORTING YEAR TOTALS 11. Total Increase in Inclusionary Obligation(add lines 4 and 9) 0 12 Ver -Low Inclusionary Obligation Increase (add lines 5 and 10) (Line 12 is a subset of Line 0 11 NOTES: 1. Section 33413(b)(1), (2), and(4) require agencies to ensure that applicable percentages (30% or 15%) of 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. Nonggency developed(project area) units: market-rate units can not exceed 85 percent and affordable units must be at least 15 percent. 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 A ordable (70 or.85) (.70 or.85) (30 or.15) California Redevelopment Agencies-Fiscal Year 2006-2007 HCD-E Sch E-1(7/01/07) -x ok ..;i+"�'� x:.�:�<�,�t&T,s�-�.��,�' �'.,�.. "��*"�,'.•'` _-;i,.�k�iys_`,;,.';,F�aar`�=;':a..:.�{,..,' :•�a>k,�`'-?�`'a - =e�»'.r :;� :,gb �p - �;"z,''.'%`-r�'��' " .s�E .,^''�_ :°�k."+x ;�N�� ," -.r.3,i,µ,3�. ��2°y',':�_y „':��Tu-�i:v;-.'.• ��,';. �,x��.; �' .r x a, � .,,r F, 1@.R •+�` ^S' _ �Pm�-as $,"�e -xF 3i4_� a:'-': ^'<> >M s` -< _ � -`�~S-..s.. xx.a `'•-�,-�-.•;^_ _ i;,d��",�� "i4:m 1�'�" - +P+�q�`- J�`"=N�=`Fp.:s�'`^�,",'x.= -":;�i r� k CITY OF HUNTINGTON BEACH, CALIFORNIA a 3 3m COMPONENT UNIT FINANCIAL REPORT WITH REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS FOR THE YEAR ENDED SEPTE DER 30, 2007 Prepared by the Finance Department TABLE OF CONTENTS Table of Contents-------•------------------------------------ ..........-----1 Independent Auditors' Report.................... ............. 2-3 Management's Discussion and Analysis .......................................................................4-10 Basic Financial Statements- Government-wide Financial Statements: Statement of Net Assets......................................... _----.---_----- -------- ------------.....---.11 Statement of Activities and Changes in Net Assets..................................................12 Fund Financial Statements: Balance Sheet—Governmental Funds................................................................13-14 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of NetAssets .............................................-.........................................---•.................15 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ........................................... --•------. ............................. --.16-17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities._........................18 Notes to Financial Statements.....................................................................................19-34 Calculation of Low-Moderate Income Housing Funds — Excess Surplus..........................35 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.................................................................................. 36-37 1 DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS 6T CONSIA-TANTS MICHAEL R LUDIN,CPA A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W SPRAKEK CPA NITIN P PATEL,CPA ROBERTI CALLANAN,CPA 2121 ALTON PARKWAY,SUITE 100 `PHILIPIT HOLTKAMP,CPA CPA IRVINE,CALIFORNIA 92606-4956 *HARVEHARVEsM PERLOWSKI,YI SCHROEDER CPA (949)399-0600•FAX(949)399-0610 KENNETH R AMES,CPA www diehievans com 'A PR0+f SJIONAL C(N2NIRAncN1 February 21, 2008 INDEPENDENT AUDITORS' REPORT Board of Directors Redevelopment Agency of the City of Huntington Beach Huntington Beach, California We have audited the accompanying financial statements of the governmental activities and each major fund of the Redevelopment Agency of the City of Huntington Beach, a component unit of the City of Huntington Beach, California as of and for the year ended September 30,2007, which collectively comprise the Agency's basic financial statements, as listed in the table of contents- These basic financial statements are the responsibility of the Agency's management. Our responsibility is to express opinions on these basic 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 Controller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the basic 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 Agency as of September 30,2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. OTHER OFFICES AT 2965 ROOSEVELT STREET 613" VALLEN PARK"AN SUITE 330 CARLSBAD.CALIFORNIA 92008-2389 ESCONDIDO CALIFORNI a,92025-2598 (760)729-2343•FAX(760)729-2234 (760)741-3141•FAX(760)741-9890 2 In accordance with Government Auditing Standards, we have also issued our report dated February 21, 2008 on our consideration of the Agency's internal control over financial reporting and 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 read in conjunction with this report in considering the results of our audit. The information identified in the accompanying table of contents as management's discussion and analysis is not a required part of the basic financial statements, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Agency's basic financial statements. The calculation of the excess surplus of the Low-Moderate Income Housing Fund is presented for additional analysis and is not a required part of the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole 3 ._x Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2007 This discussion and analysis of the Redevelopment Agency of the City of Huntington Beach's (the Agency)financial performance provides an overview of the Agency's financial activities for the fiscal year ended September 30, 2007. Please read it in conjunction with the accompanying basic financial statements and the notes to those financial statements. THE FINANCIAL STATEMENTS The financial statements presented include activities of the Agency using the integrated approach as prescribed by the Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis - for State and Local Governments. The financial statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. Notes to the financial statements, required supplementary information, including this section support these statements. All sections must be considered together to obtain a complete understanding of the financial position of the Agency. Statement of Net Assets—The Statement of Net Assets includes all assets and liabilities of the Agency, with the difference between the two reported as net assets. Assets and Liabilities are reported at their book value on an accrual basis, as of the statement date. It also identifies major categories of restrictions on the net assets of the Agency. Statement of Activities and Changes in Net Assets — The Statement of Activities and Changes in Net Assets presents the revenues earned and expenses incurred during the year on an accrual basis. These two statements report the Agency's net assets and changes in them. Net assets are the difference between assets and liabilities, which is one way to measure the financial health, or financial position. FUND FINANCIAL STATEMENTS The Agency uses fund accounting. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein. Funds are established in order to comply with State law; bond covenants; other special regulations, restrictions, limitations or legal responsibilities; or simply as a tool for management to control and manage the Agency's resources. The fund financial statements provide detailed information about the most significant funds — not the Agency as a whole. These funds are reported using the modified accrual basis of accounting, rather than on the full accrual basis_ In the modified accrual basis, revenues are recognized in the period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. 4 e Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2007 The primary revenue sources, which have been treated as susceptible to accrual by the Agency are, property tax, other taxes, investment income, and other income_ Expenditures are recorded in the accounting period in which the related fund liability is incurred. 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. GOVERNMENT-WIDE FINANCIAL ANALYSIS The Agency's combined net assets for the year ended September 30, 2007 were a negative $(81,594,000). Under state law, Redevelopment Agencies' primary source of revenue is from tax increments that are derived from the increase in public and private investments due to the improvements in the properties that fall with in the boundaries of a redevelopment project_ These tax increment revenues are not sufficient to finance the activities of the Agency therefore the Agency issues bonds. These bonds are to be repaid over time solely from tax increments revenues. Redevelopment Agencies can only collect property tax increments to the extent it has debt on its books. Below is a summary of key items in the Government-Wide financial analysis (in thousands): Percent Increase 2007 Amount 2006 Amount Increase(Decrease) (Decrease) Assets Current and Other Assets $ 47,870 $ 44,701 $ 3,169 7 1% Capital Assets 19 835 17,153 2,682 15 6% Total Assets 67,705 61,854 5,851 9.5% Liabilities Current Liabilities 12,072 12,238 (166) -1 4% Debt Payable to City of Huntington Beach 85,369 85 103 266 0 3% Long-Term Liabilities Payable within one year 1 480 1,415 65 4 6% Long-Term Liabilities 50 378 53,079 (2 701) -5 1% Total Liabilities 149,299 151,835 (2,536) -1-7% Net Assets Invested in Capital Assets- Net of Related Debt 17 153 17,153 - 0 0% Restricted 111 135 18 513 (8 378) -45-3% Unrestricted (108 882) (125 641) 16 765 -13 3% Total Net Assets (81,594) (89,981) 8,387 -9.3% Expenses Economic Development 5182 6,340 If 158) -183% City Attorney 88 41 47 114 6% Public Works 179 - 179 NIA Non-departmental and Transfers 198 1 134 (936) -82 5% Interest 7,739 4,982 2 757 55 3% Total Expenses 13,386 12,497 889 7-1% Revenues Property Taxes 17 510 12 236 5 274 43 1% Use of Money and Property 2 690 1,940 750 38 7% Participation Payments 1 564 6 260 (4,696) -75 0% Other 9 2 7 350 0% Total Revenue 21,773 20,438 1,335 6.5% Excess of Revenue over Expense 8,387 7,941 446 5 6% Transfers - (15,520) 15 520 -100 0% Net Assets-Beginning of Year (89 981} (82 402) (7 579) 9 2% Net Assets-End of Year $ (81,594) $ (89,981) $ 8,387 -9 3% 5 Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2007 FUND FINANCIAL ANALYSIS Below is an analysis of the Agency's various fund financial activities (in thousands)- Percent Increase 2007 Amount 2006 Amount Increase(Decrease) (Decrease) Huntington Beach Project Area#1 Total Assets $ 24,384 $ 24,274 $ 110 0 5% Total Liabilities 2,437 3,830 (1,393) -364% Net Assets 21,947 20,444 1,503 74°% Revenues 3,390 7,795 (4,405) -56 5% Expenditures 1,886 4,333 (2,447) -56 5% Southeast Coastal Project Area Total Assets - - - N/A Total Liabilities 190 179 11 6 1% Net Assets (190) (179) (11) 61% Revenues - - - N/A Expenditures 11 46 (35) -761% Low-Income Housing Fund Total Assets 24,119 20,703 3,416 16 5% Total Liabilities 11,453 10,201 1,252 12 3% Net Assets 12,666 10,502 2,164 20 6% Revenues 641 385 256 66 5% Expenditures 1,539 871 668 767°/a Debt Service Fund-Huntington Beach Project Area#1 Total Assets 6,511 5,100 1,411 27 7% Total Liabilities 5,972 3,985 1,987 49 9% Net Assets 539 1,115 (576) -51 7% Revenues 15,204 13,732 1,472 10 7% Expenditures 12,270 17,270 (5,000) -29 0% Debt Service Fund-Southeast Coastal Project Area Total Assets 1,147 919 228 24 8% Total Liabilities 305 808 (503) -62 3% Net Assets 842 111 731 658 6% Revenues 337 187 150 80 2% Expenditures 56 50 6 12 0% DEBT ADMINISTRATION A summary of the Agency's debt at year-end is (in thousands)- Percent Increase 2007 Amount 2006 Amount Increase(Decrease) (Decrease) Debt Payable to City of Huntington Beach $ 85,369 $ 85,103 $ 266 0 3% Bonds Payable 39,740 41,065 (1,325) -3 2% Notes Payable 4,980 5,215 (235) -4 5% Disposition and Development Agreement 7,101 8,197 (1,096) -13 4% Other Debt 37 17 20 117 6% Total Debt $ 137,227 $ 139,597 $ (2,370) -17% 6 r Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2007 CAPITAL ASSETS The Agency's capital assets consist of land of$17,153,000. This amount is recorded as part of the net capital assets of the Agency in the Government-Wide financial statements. OTHER INFORMATION Below is a description of the some of the Agency's activities during the year. Huntington Beach (Merged Proiect Area) The Strand is a multi-use project developed by CIM Group on a 3-acre site in the downtown core. With views of Huntington Beach and the pier it is located on Pacific Coast Highway, north of Main Street. A Sixth Implementation Agreement and the 33433 Report are scheduled to be presented to the Redevelopment Agency in spring 2008. The Strand's four distinct buildings will be linked by open-air pedestrian walkways. The Strand will offer approximately 110,000 square feet of retail and office space. The Shorebreak Hotel is a 157 room luxury boutique hotel operated by Joie de Vivre Hospitality. Ample parking will be provided in a subterranean structure. Retail tenants include Forever 21/Forever Love, CVS, and Active Ride Shop. Dining options include Johnny Rockets, RA Sushi, New Zealand Natural Ice Cream, and Coffee Bean &Tea Leaf. The development is scheduled to open in the fall of 2008. Pacific City is being developed by Makar Properties on a 31 acre site at Pacific Coast Highway and First Street. A Community Facilities District is proposed to fund the majority of the street enhancements and Regional Urban Runoff Treatment System for the residential portion of the project. There will be 516 upscale residential housing units built in four phases, ranging from 969 to 2,500 square feet- The residential village, totaling 17.2 acres and consisting of four distinct styles, will act as the cornerstone of Pacific City, allowing residents close access to shops, restaurants with 48,900 square feet of restaurant space and 30,000 square feet of office space. This community will encompass 191,000 square feet of the retail center featuring luxurious retail brands, prime office space, dining and entertainment. Pacific City is expected to open in late 2009. The "W' is the hotel operator for the boutique hotel that will feature 157 rooms and is expected to open by 2010. Surf City Nights is a street fair/farmer's market that takes place from 5-9 p.m. on Tuesday nights in the first three blocks of downtown Main Street between Pacific Coast Highway and Orange Avenue. Surf City Nights began as a three-month trial street closure of Main Street and developed into a weekly, year-round event. The fair was created and maintained in partnership between the City of Huntington Beach and the Downtown Business Improvement District. Historically, Tuesdays had been the slowest evening in the downtown. Due to the success of the event, residents and visitors regularly take an evening stroll and dine at local restaurants_ The street fair includes a farmer's market, live entertainment, children's activities, retail sales, food, 7 Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2007 arts and crafts. Surf City Nights headlined as the second biggest story of the year in the Orange County Register and local LA Times December issue. Bella Terra, formerly known as Huntington Center which was an outdated 56.5-acre retail property, has been transformed into an entertainment/life style center. In 2005, while the mall was still under construction, Bella Terra Associates LLC, a partnership between DJM Capital and Jh Snyder, purchased the property. The Redevelopment Agency approved Bella Terra Associates LLC to assume the rights and responsibilities of the Owner Participation Agreement in order to complete the project. The First Implementation Agreement to the OPA terminated the vacant Montgomery Wards parcel from the OPA and provided for a $1.5 million implementation fee to the Agency. With the approval of the Second Implementation Agreement on September 17, 2007, the Agency was required to commence payment of its obligation of $15 million to the developer. The Redevelopment Agency has paid $2,207,000 towards its obligation to the developer leaving an estimated balance of $14,855,000 as of September 30, 2007. The approximate 1,532 space public parking garage, funded by the Community Facilities District 2003-1 (Huntington Center), opened on October 1, 2005. Bella Terra Associates LLC also purchased the former Montgomery Wards 13.5 acre portion of the site that has been left vacant for a number of years. Negotiations are commencing to develop the parcel within the next three years. The environmental review process has begun for the proposed mix-use project that will consist of 156,000 square feet of retail and 503-700 residential units. Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor -- On December 18, 2006 the Agency approved a professional services agreement with Tierra West Advisors, LLC for the preparation of an Economic Revitalization Strategic Plan to enhance and maximize the potential of these major thoroughfares. A real estate market analysis of existing conditions along the cooridors has begun. This analysis will support the rationale for possible land-use changes that are based upon economic trends and community goals. In support of long range planning efforts, the work is being conducted in conjunction with planning firm Freedman, Tung and Bottomley (FTB) for the Specific Plan and Land Use/Planning aspects. Four community meetings have been held. The preliminary results of those meetings were presented at a City Council Study Session on January 7, 2008. The Revitalization Strategic Plan and Specific Plans for the corridors are expected to be completed in late 2008. Downtown Specific Plan (DTSP) and Downtown Parking Master Plan — On July 16, 2007 the Agency approved professional services contracts with RRM Design Group and Kimley-Horn and Associates, Inc. (KHA) to provide consulting services for the update to the Downtown Specific Plan (DTSP) and Downtown Parking Master Plan (DPMP). RRM Design Group is responsible for developing land use provisions and urban design guidelines that support and encourage a mixed-use development community. The planning consultant is working with KHA, a traffic/parking consultant that specializes in the analysis of parking in a downtown setting, who has the responsibility of amending the DPMP_ To accomplish this, KHA will utilize "shared 8 4 ,4 a. Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis ' For the Year Ended September 30, 2007 use" parking strategies and other innovative approaches used in regulating downtown parking. The first community work shop was held on November 27, 2007. The Hyatt Regency Huntington Beach Resort and Spa -- The 517-room Hyatt Regency Huntington Beach Resort & Spa and its Conference Center opened for business on January 19, 2003. Developer's Advance Loan Balance is estimated at $7,215,729 as of December 2007. The hotel paid its second Participation Payment to the Agency during this past year. The project also pays lease payments to the Agency on an annual basis. Capital Improvements/Facilities -- The one time revenue of $19 Million from the Redevelopment Agency's participation payments from the Waterfront Residential project is funding various public improvements within the City's Merged Redevelopment Project Area. The revenue received during 2004-2006 will be expended over several years through the City's Capital Improvement Program (CIP). Through the CIP, approximately $16 Million has been allocated for capital projects that include the Civic Center seismic retrofit (matched with FEMA funds), drainage improvements, concrete and asphalt replacement, streetlight replacements, restrooms north of the pier, permanent buildings on the pier and a visitor's kiosk at the Pier Plaza, internal building modifications for the Main Street Library, and fire station renovations. The Surf City Nights project is also funded through this revenue source. Southeast Coastal Project Area Utility Undergrounding -- Southern California Edison is taking the lead in doing the design work for under-grounding the Edison utilities along PCH and is working with City staff, CalTrans, and the California State Beaches Department. Seawater Desalination Facility -- The Redevelopment Agency approved an Owner Participation Agreement (OPA), dated February 27, 2006, with Poseidon Resources Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8, 2006. AES is in the process of removing storage tanks on this property. Magnolia Street Sidewalk & Lighting -- The construction of a sidewalk and installation of pedestrian lighting on both sides of Magnolia Street was included in the Capital Improvement Program (CIP) budget for$500,000. Housing Activities Habitat for Humanity (Patterson Delaware site) -- The Redevelopment Agency has acquired a vacant parcel at 1854 Patterson Lane for $522,500 using Housing Set Aside funds for a Habitat for Humanity project. Two single family homes will be built on the site. The original plan was to install two manufactured homes on the site however the company offering the homes withdrew their offer due to economic reasons. The homes will now be conventional built homes following the Habitat for Humanity model of the homeowners contributing sweat equity. 9 tt Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2007 Jamboree Housing 1, 11, and Ili -- The Agency and City of Huntington Beach assisted Jamboree Housing Corporation, an Orange County based non-profit housing developer and designated CHDO (Community Housing Development Organization), to acquire and rehabilitate two five-plex apartment buildings in the Oakview sub-area. This represents the first acquisition/rehab projects developed in the City of Huntington Beach by Jamboree and one of several housing projects planned for the Oakview sub-area using HOME and redevelopment housing set-aside funds. The City and Agency are also in the process of assisting Jamboree with the acquisition of a third property, a four-unit building that will close escrow after the 2006-07 fiscal year. Jamboree will provide on-site management and tenant services for the tenants they serve as more properties are acquired and rehabilitated. Garfield and Delaware Affordable Housing Project -- The City of Huntington Beach acquired property at the northeast corner of Delaware St_ and Garfield Ave. as part of a street widening project. It is expected that the Agency will purchase the property from the City and thereafter develop affordable housing on the parcel. It is anticipated that the project will be presented to the Agency and City Council sometime during fiscal year 2008/2009. CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and 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 any additional financial information, please contact the Finance Department: at 2000 Main Street, Huntington Beach, California, 92648, phone (714) 536-5360, or e-mail cgonzales@surfcity- hb.org. You can also visit the City's website at www.surfcity-hb.org for additional copies of this report. 10 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF NET ASSETS SEPTEMBER 30, 2007 (In Thousands) Governmental Activities ASSETS Current Assets: Cash and Investments $ 28,612 Restricted Cash with Fiscal Agent 2,462 Taxes Receivable 4,065 Other Receivables 12,731 Total Current Assets 47,870 Non-Current Assets: Land Held for Resale 2,682 Capital Assets(non-depreciable) 17,153 Total Non-Current Assets 19,835 TOTAL ASSETS 67,705 LIABILITIES Current Liabilities: Accounts Payable and Accrued Liabilities 207 Accrued Interest Payable 276 Accrued Payroll 24 Deposits 130 Unearned Revenue 11,435 Long-Term Debt-Due Within One Year 1,480 Total Current Liabilities 13,552 Non-Current Liabilities: Long-Term Debt to the City of Huntington Beach and Component Units 85,369 Other Long-Term Debt 50,378 TOTAL LONG-TERRA LIABILITIES 135,747 TOTAL LIABILITIES 149,299 NET ASSETS Investment in Capital Assets 17,153 Restricted for. Low-Income Housing 10,135 Unrestricted (108,882) TOTAL NET ASSETS(DEFICIT) $ (81,594) 11 See Accompanying Notes to Basic Financial Statements REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2007 (in Thousands) Net(Expense) Revenue and Changes in Program Revenues Net Assets Charges for Operating Capital Grants Total Current Grants and and Governmental Expenses Service Contributions Contributions Activities Functions/Programs Governmental Activities: Economic Development $ 5,182 $ - $ - $ - $ (5,182) City Attorney 88 - - - (88) Public Works 179 - - - (179) Non-departmental 198 - - - (198) Interest 7,739 - - - (7,739) Total Governmental Activities 13,386 - - - (13,386) General Revenues: Taxes: Property Taxes 17,510 Other Revenue: Use of Money and Property 2,690 Participation Payments 1,564 Other 9 Total Other Revenue 4,263 Total General Revenue 21,773 Change in Net Assets 8,387 Net Deficit-October 1,2006 (89,981) Net Deficit-September 30,2007 $ (81,594) See Accompanying Notes to Basic Financial Statements 12 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2007 (in Thousands) Capital Projects Funds Huntington Southeast Total Capital Beach Project Coastal Low-Income Projects ASSETS: Area#1 Project Area Housing Fund Funds Cash and investments $ 17,019 $ - $ 10,471 $ 27,490 Restricted cash with fiscal agent - - - Due from other funds 3,213 - - 3,213 Taxes receivable - - - - Other receivables 1,168 - 11,554 12,722 Advances to other funds 302 - 2,094 2,396 Land held for resale,net 2,682 - - 2,682 TOTAL ASSETS $ 24,384 $ - $ 24,119 $ 48,503 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable and accrued liabilities $ 193 $ - $ 14 $ 207 Accrued payroll 20 - 4 24 Due to Other Funds - 190 - 190 Deposits 130 - - 130 Deferred property taxes - - - - Deferred revenue - - 11,435 11,435 Advances from other funds 2,094 - - 2,094 TOTAL LIABILITIES 2,437 190 11,453 14,080 FUND BALANCE: Fund balances* Reserved for long-term receivables 1,228 - - 1,228 Reserved for encumbrances 3,342 - 437 3,779 Reserved for advances to other funds - - 2,094 2,094 Reserved for land held for resale 2,682 - - 2,682 Reserved for low-income housing - - 10,135 10,135 Reserved for future expenditures 60 - - 60 Total Reserved 7,312 - 12,666 19,978 Unreserved 14,635 (190) - 14,445 TOTAL FUND BALANCE 21,947 (190) 12,666 34,423 TOTAL LIABILITIES AND FUND BALANCE $ 24,384 $ - $ 24,119 $ 48,503 13 See Accompanying Notes to Basic Financial Statements Debt Service Funds Huntington Southeast Total Debt Beach Project Coastal Service Total All Area#1 Project Area Funds Funds $ - $ 1,122 $ 1,122 $ 28,612 2,462 - 2,462 2,462 - - - 3,213 4,049 16 4,065 4,065 - 9 9 12,731 - - 2,396 - - - 2,682 $ 6,511 $ 1,147 $ 7,658 $ 56,161 $ - $ - $ - $ 207 - - 24 3,020 3 3,023 3,213 - - - 130 2,952 - 2,952 2,952 - - - 11,435 - 302 302 2,396 5,972 305 6,277 20,357 - - - 1,228 - 3,779 - 2,094 - - 2,682 - - - 10,135 539 842 1,381 1,441 539 842 1,381 21,359 - 14,445 539 842 1,381 35,804 $ 6,511 $ 1,147 $ 7,658 $ 56,161 See Accompanying Notes to Basic Financial Statements 14 This page intentionally left blank REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2007 (In Thousands) Total Fund Equity Governmental Funds $ 35,804 Amounts reported for governmental activities in the statement of net assets are different because- Capital assets used in governmental activities are not current financial resources and,therefore,are not reported in the funds 17,153 Property tax revenues collected more than 60 days after fiscal year are not current financial resources and,therefore are deferred in the funds 2,952 Accrued interest payable on Long-term Debt (276) Long-term Liabilities,including bonds and certificates of participation payable are not due and payable in the current period and therefore are not reported in the funds (137,227) Net Assets(Deficit)of Governmental Activities $ (81,594) See Accompanying Notes to Basic Financial Statements 15 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007 (in Thousands) Capital Projects Funds Huntington Southeast Total Capital Beach Project Coastal Low-Income Projects REVENUES: Area#1 Project Area Housing Fund Funds Tax increment(Note 4) $ - $ - $ - - Use of money and property 1,817 - 641 2,458 Participation payments 1,564 - - 1,564 Other revenue 9 - - 9 TOTAL REVENUES 3,390 - 641 4,031 EXPENDITURES: Current_ Economic Development 1,209 - 679 1,888 City Attorney 88 - - 88 Public Works 179 - - 179 Non-departmental 20 11 2 33 Capital outlay 390 - 858 1,248 Debt service_ Bond&Other Debt Principal - - - - Interest - - - - TOTAL EXPENDITURES 1,886 11 1,539 3,436 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 1,504 (11) (898) 595 OTHER FINANCING SOURCES(USES): Transfers in - - 3,062 3,062 Transfers out - - - - TOTAL OTHER FINANCING SOURCES(USES) - - 3,062 3,062 NET CHANGES IN TOTAL FUND BALANCE 1,504 (11) 2,164 3,657 FUND BALANCES-BEGINNING OF YEAR 20,443 (179) 10,502 30,766 Prior Period Adjustments - - - - FUND BALANCES-BEGINNING OF YEAR AS RESTATED 20,443 (179) 10,502 30,766 FUND BALANCES-END OF YEAR $ 21,947 $ (190) $ 12,666 $ 34,423 16 See Accompanying Notes to Basic Financial Statements Debt Service Funds Huntington Southeast Total Debt Beach Project Coastal Service Total All Area#1 Project Area Funds Funds $ 15,013 $ 296 $ 15,309 $ 15,309 191 41 232 2,690 - - - 1,564 - 9 15,204 337 15,541 19,572 1,991 55 2,046 3,934 - - - 88 - - - 179 164 1 165 198 - - - 1,248 8,574 - 8,574 8,574 1,541 1,541 1,541 12,270 56 12,326 15,762 2,934 281 3,215 3,810 - - - 3,062 (3,003) (59) (3,062) (3,062) (3,003) (59) (3,062) - (69) 222 153 3,810 (83,988) 111 (83,877) (53,111) 84,596 509 85,105 85,105 608 620 1,228 31,994 $ 539 $ 842 $ 1,381 $ 35,804 See Accompanying Notes to Basic Financial Statements 1 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES September 30, 2007 Net Changes in Fund Balances-Total Governmental funds $ 3,810 Amounts reported for governmental activities in the Statement of Activities are different because: Accrual of Revenues - Certain revenues in the Statement of Activities do not meet the "availability" criteria for revenue recognition in the governmental funds and are not reported in the governmental funds as revenue Current Year Property Tax Accrual 2,952 Prior Year Property Tax Accrual (751) Accrual of Revenues-Certain revenues in the Statement of Activities do not meet the"availability" criteria for revenue recognition in the governmental funds and are not reported in the governmental funds as revenue Current Year Property Tax Accrual 282 Prior Year Property Tax Accrual (276) Long-term debt-Issuances and changes in long-term debt(bonds, leases,certificates of participation, compensated absences,etc)provide current financial resources to governmental funds,while a repayment of this debt consumes the current financial resources of governmental funds Neither transaction,however,has any effect on net assets. Also,governmental funds report the effect of issuance costs,premiums,discounts,etc when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of the differences in the treatment of long-term debt and related items (6,204) Payments of Long-Term Debt-Principal payments on long-term debt are recorded as an expenditure in the governmental funds and a reduction of liability in the government-wide statements. 8,574 Change in Net Assets of Governmental Activities $ 8,387 18 See Accompanying Notes to Basic Financial Statements Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 Y 1. ORGANIZATION The Redevelopment Agency of the City of Huntington Beach (the Agency) is a blended component unit of the City of Huntington Beach (the City).The City Council is the governing board of the Agency. The Agency was formed by ordinance in 1967 to encourage private development of areas that are considered blighted. The Agency adopts project areas, by public votes, which qualify under the California Health and Safety Code. The following project areas have been adopted: Project Area Year Adopted Status Main/Pier 1982 (amended in 1983) Merged into Huntington Beach Project Area #1 Talbert/Beach 1982 Merged into Huntington Beach Project Area#1 Oakview 1982 (amended in 1989) Merged into Huntington Beach Project Area#1 Yorktown/Lake 1982 Merged into Huntington Beach Project Area #1 Huntington Center 1984 Merged into Huntington Beach Project Area #1 Huntington Beach 1997 Created from five existing Project Area #1 project areas Southeast Coastal 2002 Began operations in 2002 Project Area The Agency's project area requires that 20% of tax increment revenue be used to promote affordable housing citywide. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Government—Wide Financial Statements The Agency's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of Governmental activities for the Agency accompanied by a total column. Fiduciary activities of the Agency are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Agency's assets and liabilities, including capital assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. 19 Redevelopment Agency of the City of Huntington Beach Motes to Financial Statements For the Year Ended September 30, 2007 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) a_ Government—Wide Financial Statements (Continued) The statement of activities demonstrates the degree with which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect expenses are allocated to the various functions based on a proportionate use of services. The types of transactions reported as program revenues for the Agency are reported in three categories: 1) charges for services, 2) operating grants and other contributions, 3) capital grants and other contributions. Taxes and other items not properly included among program revenues are reported as general revenues. Government-Wide financial statements do not provide information by fund or account group. They simply distinguish between governmental and business activities. All of the Agency's activities are governmental activities. The Agency's Statement of Net Assets includes both current and non-current assets and liabilities. Financial Statement Classification In the Government-Wide financial statements net assets are classified in the following categories: Invested In Capital Assets, Net of Related Debt — This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category. Restricted Net Assets — This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. This category presents restrictions placed on the categories of Capital Projects, Debt Service, and Specific Projects and Programs as established by the City Council. Unrestricted Net Assets — represent the net assets of the Agency, not restricted for any project or other purpose. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. 20 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) b. Fund Financial Statements In the Funds financial statements, reserves and designations segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various designations are established by actions of the City Council and Management and can be increased, reduced or eliminated by similar actions. Measurement Focus, Basis of Accounting, and Financial Statement Presentation All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Agency, are property taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. All Agency funds are reported as major funds: Capital Project Funds: ® Huntington Beach Project Area#1 • Southeast Coastal Project Area • Low-Income Housing Fund Debt Service Funds: ® Huntington Beach Project Area #1 ® Southeast Coastal Project Area 21 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements " For the Year Ended September 30, 2007 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) b. Fund Financial Statements (Continued) Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net assets presented in the Government-Wide Financial Statements. c. Investment Income Allocation The City of Huntington Beach allocates investment income to funds based on month- end cash balances. Since the Agency pools its cash with the City (see Note 3), the Agency receives monthly allocations of investment income. d. Special Agency Accounting The Agency follows the special accounting procedures required by the California Health and Safety Code. These procedures comply with generally accepted accounting principles for governmental agencies. e. Self-Insurance The Agency is self-insured through the City of Huntington Beach. All required information is included in the City of Huntington Beach Comprehensive Annual Financial Report for the year ended September 30, 2007. f. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure, are reported in the governmental activities column in the government-wide financial statements. Capital assets have an acquisition cost of $10,000 or greater and a useful life of two years or more. The Agency records all purchased capital assets at historical cost (where historical records are available) and at estimated historical cost where no historical records exist. The Agency's only capital asset is land. g. Interfund Transactions As a general rule, interfund transactions have been eliminated from the government- wide financial statements. These inter-fund transactions would distort the direct costs and program revenues for the various functions 22 a Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements '. For the Year Ended September 30, 2007 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h. Long Term Obligations In the government-wide financial statements, long-term obligations are recorded as liabilities in the governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the debt. In the governmental fund financial statements, bond discounts and premiums are recognized as an other financing source or use. Issuance costs are recorded as current year expenditure. L Employee Compensated Absences The City records the cost of all accumulated and unused leave time (vacation, sick, comp) as a liability when earned in the Government-Wide financial statements. Liabilities for these amounts in the governmental funds are only recorded if they have matured (employee resignations or retirements). j. Property Tax Revenue Property tax in California is levied according to Article 13-A of the California Constitution. The basic levy is a countywide-levy of one percent of total assessed valuation and is allocated to county governments, school districts, cities and special districts. Additional levies require two-thirds approval by voters and are allocated directly to the specific government. In the Government-Wide financial statements, property tax is recorded when earned, regardless of when levied, due, or received. In the fund financial statements, property tax revenue is recognized in the fiscal year levied provided that revenue is collected in time to pay current year liabilities. Deferred property tax revenue represents property taxes related to the current fiscal year that are collected more than 60 days after the fiscal year end. Since the Agency's fiscal year differs from the County's property tax year, there is a difference between the property tax revenue recorded on the fund financial statements and the Government-Wide financial statements which is noted as a reconciling item in both the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities and the Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets. The County acts as a collection agent for property tax for all of the local governmental units. Property taxes are normally collected twice per year. The property tax calendar is as follows. 23 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) j. Property Tax Revenue (Continued) • Lien Date-January 1 - Prior Fiscal Year • Levy Date-July 1 - Prior Fiscal Year • Due Date, First Installment- November 10 • Due Date, Second Installment - February 10 • Delinquent Date, First Installment- December 10 • Delinquent Date, Second Installment-April 10 The taxes are paid to the local governments periodically during the year. Below are the dates of the payments from the County: • Payments of First Installment November to December • Balance of First Installment February 1 • Payments of Second Installment March to April • Balance of Second installment July 26 k. Estimates The accompanying financial statements require management to make estimates and assumptions that effect certain report amounts and disclosures. Actual results could differ from those estimates. 3. CASH AND INVESTMENTS The Agency's cash and investments are pooled with the City. The Agency holds a proportionate interest in the amount of $28,612,000. The Restricted Cash with Fiscal Agent, totaling $2,462,000 is made up of GIC and money market accounts. The GIC providers are rated by Standard and Poor's at AAA and AA and Aaa or Aa respectively. Standard and Poor's and Moody's have rated the money market funds in our portfolio as AAA. The Restricted Cash with Fiscal Agent that is in LAIF or money market accounts is due upon demand while the amount with GIC has a maturity of over five years. For further information such as credit risk and categorization of the cash and investments, see the City's Comprehensive Annual Financial Report for the fiscal year ended September 30, 2007. 24 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 4. TAX INCREMENT REVENUE AND FINANCING The Agency's primary source of revenue is tax increment. Tax increment revenue is computed as follows: ® When a project area is adopted, the County of Orange Auditor/Controller freezes all of the existing property's assessed value. The County distributes taxes received from this frozen valuation to the various governmental agencies as if the project area did not exist. • The Agency receives 100% of taxes (not including certain pass-through agreements) received from increases in assessed valuation due to new construction, resale of existing property and annual increases allowed under Article 13-A of the California Constitution. The increment is used to repay the debt of the Agency (see Note 6). 5. CAPITAL ASSETS The changes in capital assets (land)during the year were (in thousands): Balance, October 1, 2006 $ 17,153 Additions/Retirements - Balance, September 30, 2007 $ 17,153 25 z r y Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 6. LONG-TERM DEBT The changes in Agency long-term debt during the year were (in thousands): Balance Balance Amount Due October 1, September 30, within One 2006 Additions Retirements 2007 Year DEBT TO CITY OF HUNTINGTON BEACH: Advances from General Fund $ 11,165 $ 476 $ (432) $ 11,209 $ - Advances from Sewer Fund 229 10 - 239 - Advances from Drainage Fund 552 24 - 576 - Advances from Water Fund 3,420 146 - 3,566 - Deferred Development Fees: Park Acquisition and Development Fund 337 14 - 351 SewerFund 143 6 - 149 - Drainage Fund 152 6 - 158 - Deferred Payment on Land Purchases from City: General Fund 64,560 2,750 (2,928) 64,382 - Park Acquisition and Development Fund 4,545 194 - 4,739 - Total Debt-City of Huntington Beach 85,103 3,626 (3,360) 85,369 - OTHER DEBT Help Loan 500 - - 500 Mayer Disposition and Development Agreement 8,197 496 (1,592) 7,101 - 1999 Refunding Tax Allocation Bonds 8,155 - (365) 7,790 380 2002 Tax Allocation Refunding Bonds 17,910 - (815) 17,095 845 Bella Terra Parking 15,000 2,062 (2,207) 14,855 - Section 108 Loan 4,715 - (235) 4,480 255 Employee Compensated Absences 17 20 - 37 - Totai Other Debt 54,494 2,578 (5,214) 51,858 1,480 Total Agency Debt $ 139,597 $ 6,204 $ (8,574) $ 137,227 $ 1,480 26 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 OF 6. LONG-TERM DEBT (CONTINUED) a. Advances from General Fund Years debt incurred 1985 to 1996 Interest rate 4.26% Principal amount $10,802,000 Accrued interest $ 407,000 Purpose of debt Operating, administrative and capital expenditures Security for debt Operative Agreement with City Repayment terms None b. Advances from City's Sewer Fund Years debt incurred 1989 Interest rate 426% Principal amount $130,560 Accrued interest $108,156 Purpose of debt Sewer Construction Security for debt Operative Agreement with City Repayment terms None c. Advances from City's Drainage Fund Year(s) debt incurred 1987 Interest rate 4.26% Principal amount $250,000 Accrued interest $325,305 Purpose of debt Drainage Construction Security for debt Operative Agreement with City_ Repayment terms None 27 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 6. LONG-TERM DEBT (CONTINUED) d. Advances from City's Water Fund Years debt incurred 1986 and 1987 Interest rate 4.26% Principal amount $1,138,000 Accrued interest $2,428,000 Purpose of debt Water Construction Security for debt Operative Agreement with City Repayment terms None e. Deferred Development Fees Years debt incurred 1984 Interest rate 4.26% Principal amount $339,202 Accrued interest $319,241 Purpose of debt Developer incentive Security for debt Operative Agreement with City Repayment terms None f. Deferred Payment on Land Purchases from City's General Fund Years debt incurred 1983 to 1992 Interest rate 4.26% (current fiscal ear Principal amount $32,833,417 Accrued interest $31,548,249 Purpose of debt Parcel consolidation and development Security for debt Operative Agreement with City Repayment terms None 28 : Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 6. LONG-TERM DEBT (CONTINUED) h. Deferred Payment on Land Purchases from City's Park Acquisition and Development Fund Year(s) debt incurred 1984 Interest rate 4.26% Principal amount $1,740,834 Accrued interest $2,998,237 Purpose of debt Emerald Cove Land Security for debt Operative Agreement with City Re a ment terms None i. Notes Payable Years debt incurred 2003 Interest rate 3.00% Principal amount $500,000 Purpose of debt Affordable housin Security.for debt Note with developer Repayment terms Deferred for 10 yrs, j. Mayer Disposition and Development Agreement In fiscal year 1996-97, the Agency entered into a disposition and development agreement with Robert Mayer Corporation (Corporation) concerning additional development adjacent to the Waterfront Hotel. Under the agreement, the Corporation would advance payments for the project costs with the Agency reimbursing up to $16,750,000 of the costs. As of September 30, 2007, the Agency obligation under the agreement amounted to $7,101,000. Project-generated revenues as available will repay these amounts over the time needed to fully amortize the advance. k. 1999 Tax Allocation Refunding Bonds Year(s) debt incurred 1999 Interest rate 3.00% to 5.05% Original principal amount $10,835,000 Purpose of debt Prepay Agency's 1992 Loans to Public Financing Authority Security for debt Redevelopment Agency Tax Increment, excluding Low- Income Housing Amounts Repayment terms Principal,August 1 S, Interest, February Vt and August 1� 29 w Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 6. LONG-TERM DEBT (CONTINUED) Debt service requirements to maturity are as follows (in thousands): Year Ending September 30, Principal Interest Total 2008 380 365 745 2009 390 350 740 2010 410 334• 744 2011 430 317 747 2012 450 298 748 2013-2017 2,575 1,165 3,740 2018-2022 2,370 520 2,890 2023-2024 785 57 842 Total $ 7,790 $ 3,406 $ 11,196 1. 2002 Tax Allocation Refunding Bonds Year of Issuance 2002 Type of Debt Tax Allocation Refunding Bonds Original Principal Amount $20,900,000 Security Tax Increment Interest Rates 2.00% to 5.00% Interest Payment Dates Februa 1S and August 1S Principal Payment Dates Au ust 1S Purpose of Debt Prepay Agency's 1992 Loans to Public Financing Authority and fully decease 1992 Public Financing Authority bonds Debt service requirements to maturity are (in thousands): Year Ending September 30, Principal Interest Total 2008 845 771 1,616 2009 870 742 1,612 2010 910 712 1,622 2011 945 678 1,623 2012 995 641 1,636 2013-2017 5,650 2,540 8,190 2018-2022 5,180 1,134 6,314 2023-2024 1,700 124 1,824 Total $ 17,095 $ 7,342 $ 24,437 30 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 6. LONG-TERM DEBT (CONTINUED) m. Bella Terra Parking Structure In fiscal year 2005-06, the agency entered into an owner participation agreement with Bella Terra Associates, LLC (formerly Huntington Center Associates, LLC). Under the agreement the Corporation would construct various public improvements, including a parking structure, which would then be deeded to the City. The Agency would reimburse $15,000,000 of the costs of the public improvements. As of September 30, 2007, the Agency obligation under the agreement amounted to $14,855,000. Project- generated revenues as available will repay these amounts over the time needed to fully amortize the advance. n. Section 108 Loan Year of Issuance 2000 Type of Debt Loan from Federal Government Original Principal Amount $6,000,000 Security Loan Agreement with Federal Government Interest Rates 7.7% Interest Payment Dates February 1 s and August 1S Principal Payment Dates August Is' Purpose of Debt Capital Improvements Debt service requirements to maturity are (in thousands): Year Ending September 30, Principal Interest Total 2008 255 346 601 2009 270 327 597 2010 290 308 598 2011 310 286 596 2012 330 263 593 2013-2017 2,015 897 2,912 2018-2019 1,010 122 1,132 Total 4,480 2,549 7,029 o. Employee Compensated Balances There is no fixed repayment to pay the compensated absences liability totaling $37,000 at year-end. 31 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 7. RETIREMENT PLAN INFORMATION The Agency is a component unit of the City. For retirement purposes, all Agency employees are considered to be employees of the City. No separate valuations are made for the Agency. All retirement information for the City as a whole is included in the City's Comprehensive Annual Financial Report. 8. AGENCY AGREEMENTS a. Pass Through Agreements The Agency entered into various "pass-through" agreements with local governmental agencies where a portion of tax increment is paid to the individual agencies. There was no amount payable at year-end. b. Pacific City On October 16, 2006 the Redevelopment Agency approved an Owner Participation Agreement with Makallon Atlanta Huntington Beach, LLC (also know as Makar) to develop a 31-acre site in the Main-Pier sub-area of the Huntington Beach Redevelopment Project (Pacific City). Makar will advance $5,500,000 to the Redevelopment Agency to fund the Agency's obligation for the Regional Urban Runoff Treatment System and the Pacific View Drive Extension. The advance will be repaid over 20 years from tax increment generated from the site. As of September 30, 2007 no amount has been advanced to the City. c. CIM Group, LLC — Disposition and Development Agreement In June 1999, the Redevelopment Agency entered into a disposition and development agreement with the CIM Group, LLC to allow development of a hotel, retail and restaurant improvements and a public parking facility. The project costs are to be paid initially by the developer with the Agency reimbursing the developer a maximum of $7.9 million pursuant to a Third Implementation Agreement approved on October 21, 2002. The Fourth Implementation Agreement provided a maximum Agency cost for additional parking spaces $1,500,000. The Fifth Implementation Agreement, dated July 19, 2004, clarified certain provisions in the DDA relating to the Agency Participation Payment, Acquisition costs and indemnification obligations. A Sixth Implementation Agreement and the 33433 Report are scheduled to be presented to the Redevelopment Agency in spring 2008. As of September 30, 2007 no amount has been advanced to the City. 32 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2007 8. AGENCY AGREEMENTS (Continued) d. Southeast Coastal Redevelopment Project On September 2, 2003, the Redevelopment Agency Approved a Cooperation Agreement Regarding Capital Improvements in the Southeast Coastal Redevelopment Project within the City_ This agreement commits the Redevelopment Agency to reimburse the City for a number of capital improvement projects to be undertaken as part of the Five Year Capital Improvement Program in the Southeast Redevelopment project area. The status of the major Southeast Costal Redevelopment projects is as follows: Utility Undergrounding -- Southern California Edison is taking the lead in doing the design work for under grounding the Edison utilities along PCH and is working with City staff, CalTrans, and the California State Beaches Department. Seawater Desalination Facility -- The Redevelopment Agency approved an Owner Participation Agreement (OPA), dated February 27, 2006, with Poseidon Resources Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8, 2006. AES is in the process of removing storage tanks on this property. As of September 30, 2007 no amount has been advanced to the City. Magnolia Street Sidewalk & Lighting -- The construction of a sidewalk and pedestrian lighting on both sides of Magnolia Street was included in the Capital Improvement Program. 9. NOTES RECEIVABLE a. Owner Participation Agreement—Abdelmuti In 1991, the Agency agreed to assist a private business in the demolition and the construction of a new building. The Agency agreed to make public improvements totaling $500,000 and to loan the business $3,126,000 for 15 years at 7% interest to make building improvements.At year-end, the balance of the loan was $728,000. The note was refinanced and the City was paid in full for the remaining amount owed in December of 2007. b. Deferred Loans— Developers The Agency has made loans available to developers to construct or rehabilitate certain facilities under deferred loan agreements. These loans are deferred until a future event occurs, such as a sale of the property by the developer_ At year-end, the amounts of these loans were $11,435,000. 33 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements 49F For the Year Ended September 30, 2007 J. NOTES RECEIVABLE (Continued) c. Notes Receivable A summary of Notes Receivable as of September 30, 2007 is as follows: Descripton Amount OPA-Abdelmuti Receivable $ 728,000 Deferred Loans Receivable $ 11,435,000 Other Receivables $ 569,000 Total $ 12,732,000 10. PENDING LITIGATION There are legal actions pending against the Agency resulting from normal operations. The Agency's Counsel feels these actions will not have a significant impact on these financial statements. 11. OTHER The Agency's combined net assets for the year ended September 30, 2007 were a negative $(81,594,000). This is mainly because of how Redevelopment Agencies are required to operate under state law. Redevelopment Agencies incur debt in order to make expenditures, which result in increased public and private investment in a redevelopment area, which in turn generate property tax increment to repay the debt over time. Redevelopment Agencies can only collect property tax increment to the extent it has debt on the books. 12. PRIOR PERIOD ADJUSTMENT In prior years the Agency recorded loans from the City as a debt in the fund statements. This should only be recorded in the Government wide statement. Below is a schedule (in 000's) showing the restatement of beginning fund balance to show this change. Debt Service Fund- Debt Service Fund- Combined Statement of Revenues,Expenditures Huntington Beach Southeast Coastal and Changes in Fund Balance Project Area#1 1 Project Area Fund Balance-Beginning of the Year $ (83,988) $ 111 Prior Period Adjustment 84,596 509 Fund Balance-Beginning of year as restated $ 608 $ 620 34 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH CALCULATION OF LOW/MODERATE INCOME HOUSING FUNDS -EXCESS SURPLUS October 1, 2006 (IN THOUSANDS) ENDING FUND BALANCE-OCTOBER 1,2006 $ 10,502 Less Unavailable Amounts: Advances to Other Funds (2,199) AVAILABLE FUND BALANCE-OCTOBER 1, 2006 $ 8,303 AVAILABLE LOW/MODERATE INCOME HOUSING FUNDS LIMITATION(GREATER OF$1,000,000 OR FOUR YEARS SET-ASIDE): Set-aside for fiscal years 2002-03 to 2005-06 2002-2003 2003-2004 1,820 2004-2005 1,909 2005-2006 2,301 TOTAL SET-ASIDE FOR LAST FOUR YEARS 2,780 8.810 COMPUTED EXCESS/SURPLUS-OCTOBER 1,2006 $ 35 DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS MICHAEL R LUDIN,CPA A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIGW SPRAKER CPA NfrlN P PATEL,CPA ROBERTI CALLANAN,CPA 2121 ALTON PARKWAY,SUITE 100 *THOMA HOLTKAM SKI' 'THOMAS M PERI,OWSK1,CPA IRVINE,CALIFORNIA 92606-4956 'HARVEYI SCHROEDER CPA (949)399-0600•FAX(949)399-0610 KENNETH R.AMES,CPA WWW dlehlevans com 'A PROIEWONA1 CORPORATION February 21, 2008 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Redevelopment Agency of the City of Huntington Beach Huntington Beach,California We have audited the financial statements of the governmental activities and each major fund for the Redevelopment Agency of the City of Huntington Beach (the Agency) as of and for the year ended September 30, 2007, which collectively comprise the Agency's basic financial statements and have issued our report thereon dated February 21, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Agency's ability to initiate, authorize,record,process,or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Agency's financial statements that is more than inconsequential will not be prevented or detected by the Agency's internal control. - 36 - OTHER OFFICES AT 2965 ROOSEVELT STREET 613 W VALLEY PARKWAY.SUITE 330 CARLSBAD_CALIFORNIA 92008-2389 ESCONDIDO_CALIFORNIA 92025-2598 1760)729-2343•FAX(760)729-2234 (760)741-314 t•FAX(760)741-9890 Internal Control Over Financial Reporting(Continued) A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Agency's internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies over material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements of the Agency are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines For Compliance Audits of California Redevelopment Agencies issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and,accordingly, we do not express such an opinion. The results of our tests disclosed two instances of noncompliance or other matters that are required to be reported under Government Auditing Standards: a. Pursuant to California Health and Safety Code Section 33080.4, a blight progress report,a loan report and a property report must be provided and submitted to the Agency's legislative body within six months following the Agency's fiscal year end date of September 30,2006. The Agency submitted the reports on June 6,2007. b. Health and Safety Code Section 33080.1 requires Redevelopment Agencies to submit independent auditor's reports on financial statements and legal compliance, the Annual Report of Financial Transactions of Community Redevelopment Agencies and the Housing Activities Report to the Board of Directors within six months following the Agency's fiscal year end date of September 30,2006. The Agency submitted the reports on June 6,2007. This report is intended solely for the information and use of the Redevelopment Agency of the City of Huntington Beach's Board of Directors and management and the State Controller's Office, Division of Accounting and Reporting and is not intended to be and should not be used by anyone other than these specific parties. - 37 - RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development Department SUBJECT: Receive and File 2006-2007 State Controller Report COUNCIL MEETING DATE: March 17, 2008 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorne ) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached —EF] Not Applicable EYKP LlaNQ` ON FOR nMii MMMG ATTACHMENTS ENTS Attached report must be approved by the Agency and sent to the State by March 31, 2008. Completion of the report is contingent upon information contained in the City's final audit report, a copy of which will be available sometime in the first week of March. The final copy of the State Controller's Report will be made a part of this RCA as soon as possible. REVIEWED RETURNED FOR WARPED Administrative Staff ( ( A&A Deputy City Administrator (Initial) ( ) ( )- -City T-- City Administrator (initial) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: fflelo w,$Pace • RCA Author: Terri King X8831