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HomeMy WebLinkAboutRDA Item No. 5CITY OF LADE NILSINO DREAM EXTREME. REPORT TO REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: JANUARY 11, 2011 SUBJECT: ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2010 Background A special report was issued to the Redevelopment Agency Board on December 30, 2010 presenting the Redevelopment Agency financial statements for the fiscal year ending June 30, 2010. The report included the audit financial statements from our auditors, Diehl, Evans & Company as well as items required to be reported by the Agency to the Redevelopment Agency Board by December 31 each year in accordance with Health and Safety Code Sections 33080.1, 33080.4 and 33080.5. The items discussed in that report are listed below, along with the related audited financial statements and state required reports. Discussion The major highlights of the Redevelopment Financial Statements are as follows: • The RDA made all debt service payments. • The RDA paid $6,976,853 to the Supplemental Education Revenue Augmentation Fund (SERAF) as required by the State of California. • All bond reserve requirements are fully funded. • Overall, total tax increment revenue (property tax revenue for the RDA) of $19,877,054 decreased from the prior fiscal year by $5,015,358, or 25%a. This decrease was due to the reassessment of property value by the County Assessor in accordance with Proposition 8. • The low and moderate housing fund revenue of $3,975,411 decreased by $1,003,073, or 25%. This decrease was due to the decrease in tax increment noted above as well as a decrease in investment income due to reduced interest rates. AGENDA ITEM NO. 5 Page 1 of 126 Annual Financial Report January 11, 2011 Page 2 • Fund balance was restated for the beginning of the year in all funds to properly reflect bond activity and inter-fund loans. The following are required to be reported by the Agency to the City Council by December 31 each year in accordance with Health and Safety Code Sections 33080.1, 33080.4 and 33080.5: 1. Annual Report of Financial Transactions: This report is due to the State Controller's office by December 31, 2010. The report was completed on December 29, 2010 and submitted to the State Controller's office. A copy of the report is included with this special report. 2. California Department of Housing and Community Development Redevelopment Agency Annual Housing Activity Report: This report is due to the State Controller's office by December 31, 2010. The report was completed. on December 29, 2010 and submitted to the State Controller's office. A copy of the report is included with this special report. 3. Blight Progress Report: During the fiscal year, the RDA continued to pay debt service on prior obligations incurred for projects that worked to eliminate or substantially reduce blighting conditions. In addition, the Agency continued to address blight through redevelopment activities such as the purchase of land, continued negotiations to sell RDA land and facilities consistent with the RDA's redevelopment goals, and entered into negotiations to develop land in the RDA project areas. 4. Property Report: The RDA owns several parcels. An inventory of properties is listed in Exhibit A to this special report. Fiscal Impact There is no fiscal impact. Recommendation 1. It is recommended that Agency Board receive and file the report Prepared by: James R. Rile Director of Adm' i rative Services Approved by: Robert A. Brady Executive Directo Page 2 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY COMPONENT UNIT FINANCIAL STATEMENTS WITH REPORT ON AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS JUNE 30, 2010 Page 3 of 126 Page 4 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY TABLE OF CONTENTS June 30,2010 Independent Auditors' Report Basic Financial Statements: Statement of Net Assets Statement of Activities Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Statement of Fiduciary Assets and Liabilities - Agency Fund Notes to Basic Financial Statements Required Supplementary Information: Budgetary Comparison Schedule: Rancho Laguna Special Revenue Fund Note to Required Supplementary Information Supplementary Information: Combining Balance Sheet - Other Capital Projects Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Other Capital Projects Funds 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 Page Number 1-2 6-7 9 10-11 12 13 15-48 49 50 51 53 54 55 57 - 58 Page of 126 Page 6 of 126 © DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS 6T CONSULTANTS APARTNERSHIP NCI. O]NG ACCOUNTANCY CORPORATIONS 5 CORPORATE PARK, SUITE 100 IRVINE, CALIFORNIA 92606-5165 (949) 399-0600 • FAX (949) 399-0610 w .diehlevansxom MICHAEL R LUCK CPA CRAIG W. SPRAKEP, CPA NTTAIP.PAMCPA ROBERT].CALLANAN,CPA 'PHILIP R HOLTKAMP, CPA 'THOMAS M PFRLOWSKL CPA 'HARVEY L SCHROIDE~ CPA KENNETH R. A , CPA Wn „<TS. C. PENT7, CPA December 27, 2010 -APROP85S1pNALCpppMA M INDEPENDENT AUDITORS' REPORT The Board of Directors Lake Elsinore Redevelopment Agency Lake Elsinore, California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Lake Elsinore Redevelopment Agency (a component unit of the City of Lake Elsinore), as of and for the year ended June 30, 2010, which collectively comprise the Agency's basic financial statements, as listed in the table of contents. These 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 Auditine Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion. on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we express no such opinion. 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, each major fund, and the aggregate remaining fund information of the Lake Elsinore Redevelopment Agency as of June 30, 2010, 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. OMER OFFICES AT 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARISBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598 (760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 . FAX (760) 741-9890 Page 7 of 126 In accordance with Government Auditing Standards we have also issued our report dated December 27, 2010 on our consideration of the Lake Elsinore Redevelopment 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 considered in assessing the results of our audit. Management has not presented the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. The budgetary comparison schedule, identified as required supplementary information in the table of contents, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. This information is an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. The budgetary comparison schedule and related note have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise the Lake Elsinore Redevelopment Agency's basic financial statements. The combing schedules, identified as supplementary information in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements of the Agency. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. LLP Page 8 of 126 BASIC FINANCIAL STATEMENTS Page 9 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY STATEMENT OF NET ASSETS June 30, 2010 Governmental ASSETS: Activities _ Cash and investments (Note 2) - $ 35,818,630 Interest receivable 49,230 Accounts receivable 4,700 Due from other governments 96,561 Due from agency fund 77,171 Prepaid expense 106,108 Land held for resale 8,803,167 Deferred charges 1,559,266 Restricted assets: Cash and investments with fiscal agents (Note 2) 4,787,592 Capital assets, not depreciated (Note 3) 2,426,392 Capital assets, depreciated, net (Note 3) 9,465,028 TOTAL ASSETS 63,193,845 LIABILITIES: Accounts payable 4,051,618 Due to other governments 6,376,160 Due to the City of Lake Elsinore 1,185,716 Due to Lake Elsinore Public Financing Authority 154,120 Interest payable 1,090,156 Noncurrent liabilities (Note 5): Due within one year 2,535,790 Due in more than one year 62,215,370 TOTAL LIABILITIES 77,608,930 NET ASSETS (DEFICIT): Invested in capital assets 11,891,420 Restricted for low and moderate income housing 54,064,519 Unrestricted (deficit) (80,371,024) TOTAL NET DEFICIT $ (14,415,085) See independent auditors' report and notes to basic financial statements. Page 10 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY STATEMENT OF ACTIVITIES For the year ended June 30, 2010 _ Functions/programs Eupenses Governmental activities: General government $ 1,513,947 Pass-through payments 7,782,513 SERAF payments 6,976,853 Project improvements 1,901,906 Interest on long-term debt 3,932,852 Total governmental activities $ 22,108,071 Net (Expense) Revenue and Changes in Program Revenues Net Assets Charges Operating CaPital for Grants and Grants and Governmental Services Contributions Contributions Activities $ S $ - $ (1,513,947) (7,782,513) - (6,976,853) - 714,757 (1,187,149) - - L3,932,852) $ - $ - $ 714,757 (21,393,314) General revenues: Tax increment 19,877 054 Investment income , 981 048 Other income , 38,673 Total general revenues 20,896,775 Change in net assets - (496,539) NET DEFICIT - BEGINNING OF YEAR, AS RESTATED (NOTE 16) (13,918,546) NET DEFICIT -END OF YEAR $ (14,415,085) See independent auditors'report and notes to basic financial statements. Page 11 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2010 Special Revenue Fund - Debt Service Funds ASSETS Cash and investments (Note 2) Cash and investments with fiscal agents (Note 2) Interest receivable Accounts receivable Due from other governments Due from agency fund Due from other funds (Note 8) Prepaid expense Advances to other funds (Note 8) Land held for resale (Note 4) TOTAL ASSETS LLABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Deferred revenue Due to other governments Due to the City of Lake Elsinore Due to Lake Elsinore Public Financing Authority Due to other funds (Note 8) Advances from other funds (Note 8) TOTAL LIABILITIES Rancho Rancho Rancho Rancho Laguna Laguna l Laguna 11 Laguna in $ 12,393,459 $ 6,394,748 $ 14,089,016 $ 2,619,823 1,461,936 1,560,360 1,565,723 199,573 27,918 7,311 11,301 2,700 64,763 3,237 15,604 12,957 - 4,809,388 12,229,211 - - 213 1,037 104,858 37,401,756 - - - 2,714,687 $ 54,064,519 $ 12,775,257 7 27,911,892 $ 2,939,911 $ 382,303 $ 1,478,696 19,361,317 - - 3,923,453 440,617 $ 1,378,681 $ 663,433 2,408,485 44,222 431,637 266,511 FUND BALANCES (DEFICITS): Reserved for (Note 7): Advances to other funds Prepaid expense Land held for resale Low and moderate income housing Debt service Unreserved, undesignated TOTALFUND BALANCES (DEFICITS) - 46,236 58,566 49,318 - - 12,229,211 - 15,605,801 17,422,431 4,373,524 19,743,620 21,494,803 21,699,800 17,626,219 18,040,439 - 213 1,037 104,858 2,714,687 - - - 12,103,837 - - _ 1,461,936 1,560,360 6,211,055 199,573 - (10,280,119) - (14,990,739) 34,320,899 (8,719,546) 6,212,092 (14,686,308) TOTAL LIABILITIES AND FUND BALANCES $ 54,064,519 $ 12,775,257 $ 27,911,892 $ 2,939,911 See independent auditors'report and notes to basic financial statements. Page 12 of 126 Other Total Governmental Governmental Funds Funds $ 321,584 $ 35,818,630 - 4,787,592 - 49,230 4,700 4,700 - 96,561 77,171 77,171 - 17,038,599 106,108 - 37,401,756 6,088,480 8,803,167 $ 6,491,935 -$-104,183,514 $ 148,505 $ 4,051,618 - 19,361,317 - 6,376,160 46,951 1,185,716 - 154,120 4,809,388 17,038,599 - 37,401,756 5,004,844 85,569,286 18,040,439 - 106,108 6,088,480 8,803,167 - 12,103;837 9,432,924 (4,601,389) (29,872,247) 1,487,091 18,614,228 $ 6,491,935 $ 104,183,514 Page 13 of 126 THIS PAGE INTENTIONALLY LEFT BLANK Page 14 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS June 30, 2010 Fund balances for governmental funds $ 18,614,228 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 11,891,420 Interest on interfund loans and other receivables reported in the special revenue funds are not available soon enough to pay for current-period expenditures, and therefore they are reported as deferred revenue in the funds. Balance at June 30, 2010 totaled: 19,361,317 Long-term liabilities and related items are not due and payable in the current period and are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Assets. Balances as of June 30, 2010 are: Noncurrent liabilities Less: Deferred amount on refunding, net of accumulated amortization (65,736,530) Less: Bond discount, net of accumulated amortization 821,0 164,12120 Accrued liabilities in the Statement of Net Assets differ from the amounts reported in governmental funds due to accrued interest on the tax allocation bonds payable. (1,090,156) Deferred charges in the Statement of Net Assets differ from the amounts reported in governmental funds due to issuance costs net of related amortization on the tax allocation bonds. 1,559,266 Net deficit of governmental activities $(14,415,085) See independent auditors' report and notes to basic financial statements. Page 15 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the year ended June 30, 2010 Special Revenue Fund Debt Service Funds REVENUES: Tax increment Investment income Grant income Other income TOTALREVENUES EXPENDITURES: Current: Professional services Pass-through payments Set aside suspension SERAF payments Project costs Debt service: Payment to refunding bond escrow agent Bond issue costs Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Discount on bonds Refunding bonds issued Payment to refunding bond escrow agent Transfers in (Note 8) Transfers out (Note 8) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS) - BEGINNING OF YEAR AS RESTATED FUND BALANCES (DEFICITS) - END OF YEAR Rancho Rancho Rancho Rancho Laguna Laguna l Laguna II Laguna III $ 225,411 $ 6,745,040 133,564 34,577 714,757 - 2,970 626 1,076,702 6,780,243 $ 10,029,912 72,374 1,127 10,103,413 $ 2,876,691 13,925 406 2,891,022 203,698 411,578 320,164 229,047 - 2,058,488 4,242,664 1,481,361 - 1,286,250 1,912,500 551,250 - 2,393,061 3,558,195 1,025,597 826,917 - 217,531 56,288 1,295,449 198,868 358,354 135,074 878,354 202,981 365,763 137,867 440,450 578,482 733,981 117,114 731,062 1,329,409 1,407,333 188,142 4,375,930 8,459,117 13,116,485 3,921,740 (3,299,228) (1,678,874) (3,013,072) (1 030 718) , , (119,642) (13,542) (24,403) (9,198) 15,655,000 3,055,000 5,505,000 2,075,000 (13,228,136) (2,543,539) (4,583,365) (1,727,608) (700,000) (800,000) (500,000) 2,307,222 (202,081) 97,232 (161,806) (992,006) (1,880,955) (2,915,840) (1,192,524) 35,312,905 (6,838,591) 9,127,932 (13,493,784) $ 34,320,899 $ (8,719,546) $ 6,212,092 $ (14,686,308) See independent auditors' mport and notes to basic financial statements. Page 16 of 126 Other Total Governmental Governmental Funds Funds $ - $ 19,877,054 254 254,694 - 714,757 333,544 338,673 333,798 21,185,178 1,164,487 7,782,513 3,750,000 - 6,976,853 1,318,179 2,418,915 1,987,745 1,584,965 1,870,027 - 3,655,946 1,318,179 31,191,451 (984,381) (10,006,273) (166,785) 26,290,000 - (22,082,648) 2,135,998 2,135,998 (135,998) (2,135,998) 2,000,000 4,040,567 1,015,619 (5,965,706) 471,472 24,579,934 $ 1,487,091 $ 18,614,228 Page 17 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES For the year ended June 30, 2010 Net change in fund balances - total governmental funds $ (5,965,706) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlay as an expenditure in the full amount as current financial resources are used. However, in the Statement of Activities the cost of these assets is allocated over the estimated useful life as depreciation expense. Capital outlay 217,009 Depreciation (349,460) The issuance of long term debt and related items provides current financial resources to governmental funds, while the repayment of the principal of long term-debt and related items consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. These amounts we the net effect of these differences in the treatment of long-temt debt. Principal payments 1,870,027 Principal added on note payable (94,166) Refunding bonds issued (26,290,000) Principal amount of debt refunded 23,235,000 Issuance costs 1,584,965 Deferred amount on refunding 835,393 Discount on bonds 166,785 Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not reported as governmental fund expenditures. Interest and fiscal charges (140,233) Amortization of issuance costs (25,699) Amortization of deferred amount on refunding (14,143) Amortization of bond discount (2,665) Some revenues reported in the Statement of Activities do not provide the use of current fmancial resources and are not reported as governmental fund expenditures. Tax increment 3,750,000 Investment income 726,354 Change in net assets of governmental activities $ (496,539) See independent auditors' report and notes to basic financial statements. Page 18 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCYFUND June 30, 2010 ASSETS Cash and investments with fiscal agents (Note 2) Account receivable $ 4,487,393 Due from City of Lake Elsinore 97,695 695,953 TOTAL ASSETS $ 5,281,041 LIABILITIES Due to Lake Elsinore Redevelopment Agency Due to City of Lake Elsinore S 77,171 Due to bondholders 8,900 5,194,970 TOTAL LIABILITIES $ 5,281,041 See independent auditors' report and notes to basic financial statements Page 19 of 126 THIS PAGE INTENTIONALLY LEFT BLANK Page 20 of 126 NOTES TO BASIC FINANCIAL STATEMENTS Page 21 of 126 LAKE ELSINORE REDEVELOPMENTAGENCY NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2010 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES: A. Description of the Reporting Entity: The Lake Elsinore Redevelopment Agency (the Agency) was established by City Council ordinance and adopted July 15, 1980, pursuant to the State of California Health and Safety Code, Section 33000, entitled Community Redevelopment Law. As such, the Agency acts as a legal entity, separate and distinct from the City of Lake Elsinore (the City), even though the City Council of the City has the authority to appoint the Agency's governing board. The actions of the Agency are binding, and business, including the incurrence of long-term debt, is routinely transacted in the Agency's name by its appointed representatives. The Agency is broadly empowered to engage in the general economic revitalization and redevelopment of the City through acquisition and development of property in those areas of the City determined to be in a declining condition. The Lake Elsinore City Council has declared itself to be the Agency's governing board pursuant to the Community Redevelopment Law. The Agency has no employees, and all Agency duties and functions are performed by employees of the City. The City is reimbursed for the cost of these and other services. The Agency is a component unit of the City and, accordingly, the financial statements of the Agency are included in the financial statements of the City. The Agency is an integral part of the reporting entity of the City. The funds of the Agency have been blended within the financial statements of the City because the City Council of the City is the governing board of the Agency and exercises control over the operations of the Agency. Only the funds of the Agency are included herein, therefore, these financial statements do no purport to represent the financial position or results of operations of the City. The Agency is currently administering the following redevelopment projects: Rancho Laguna I The Rancho Laguna Redevelopment Project No. I was established in 1980 and includes noncontiguous areas that aggregate 1,910 acres which are primarily concentrated in the northwestern portion of the community. The need for redevelopment was established as a result of severe flooding in early 1980 and an inability to provide needed public facilities in the development of vacant portions of the City and rehabilitation of areas for residential and commercial use. See independent auditors' report. Page 22 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): A. Description of the Reporting Entity (Continued): The Agency's Redevelopment Projects (Continued): Rancho Laguna H The Rancho Laguna Redevelopment Project No. II was established in 1983 and includes noncontiguous areas that aggregate 4,859 acres. The Agency plans to develop the project area primarily for new and rehabilitated residential and commercial use. Rancho Laguna III The Rancho Laguna Redevelopment Project No. III was established in 1987 and includes 4 noncontiguous parcels that aggregate 3,541 acres. The project areas are being developed to alleviate blighting conditions. These include the existence of deteriorated, dilapidated, or obsolescent structures which the Agency may selectively acquire and either rehabilitate or remove substandard structures and develop for residential, commercial or industrial use. B. Measurement Focus, Basis of Accounting and Financial Statement Presentation: Financial Statement Presentation The basic financial statements of the Agency are composed of the following: • Government-wide financial statements • Fund financial statements • Notes to the basic financial statements Financial reporting for the government-wide financial statements is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncement. FASB pronouncements issued after November 30, 1989 are not followed in the preparation of the accompanying financial statements. See independent auditors' report. Page 23 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITYAND SIGNIFICANTACCOUNTING POLICIES (CONTINUED): B. Measurement Focus, Basis ofAccounting and Financial Statement Presentation (Continued): Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the Agency. For the most part, the effect of interfund activity has, been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Agency has no business-type activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements The accounting system of the Agency is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Agency's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and other governmental funds in the aggregate for governmental funds. See independent auditors' report. Page 24 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): Fund Financial Statements (Continued) The Agency reports the following major governmental funds: The Rancho Laguna Special Revenue Fund is used to account for low and moderate income housing activities within the project areas. The Rancho Laguna I Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs within this project area. The Rancho Laguna II Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs within this project area. The Rancho Laguna III Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs within this project area. Additionally, the Agency reports the following fund types: The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of redevelopment projects and administrative expenses within the Stadium Capital Projects, Rancho Laguna II and Rancho Laguna III project areas. The Agency Fund is used to account for money received by the Agency as an agent for individuals, other governments and other entities. See independent auditors' report. Page 25 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITYAND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): Measurement Focus Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. On the government-wide Statement of Net Assets and the Statement of Activities, activities are presented using the economic resources measurement focus. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the government are reported. In the fund financial statements, all governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of "available spendable resources". Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their measurement focus. However special reporting treatments are used to indicate that they should not be considered "available spendable resources", since they do not represent net current assets. Recognition of governmental fund type revenue represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transaction are recognized in accordance with the requirements of GASB Statement No. 33. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. See independent auditors' report. Page 26 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): Basis of Accounting Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. In the government-wide Statement of Net Assets and Statement of Activities, the governmental activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used, regardless of the timing of related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when and enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Revenues accrued by the Agency include property taxes levied and collected within 60 days from the end of the fiscal year. C. Investments: Investments are reported at fair value. Investment income includes interest earnings, changes in fair value, and any gains or losses related to the liquidation or sale of the investment. See independent auditors' report. Page 27 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): D. Restricted Net Assets: The Agency is required by California Law to set aside a portion of the property tax increments it receives to increase and improve the City's supply of Low and Moderate Income Housing, and therefore such assets are restricted for that purpose. E. Property Taxes: Property taxes are assessed and collected each fiscal year according to the following property tax calendar: Lien Date: January 1 Levy Date: July 1 to June 30 Due Date: First Installment - November 1 Second Installment - February Delinquent Date: First Installment - December 10 Second Installment -April 10 Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the agencies based on complex formulas prescribed by the state statutes. F. Interfund Activity: In the governmental fund financial statements, activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e. the current portion of interfund loans) or "advances to/from other funds" (i.e. the noncurrent portion of interfund loans). In the government-wide financial statements, these activities have been eliminated. Noncurrent portions of long-term interfund loan receivables are reported as advances and such amounts are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation. See independent auditors' report. Page 28 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITYAND SIGNIFICANTACCOUNTING POLICIES (CONTINUED): G. Capital Assets Capital assets, which include land, structures, equipment, and infrastructure assets, are reported in the government-wide financial statements. Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Assets purchased in excess of $5,000 are capitalized if they have an expected useful life of 2 years or more. Donated capital assets are valued at their estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset's lives are not capitalized. Major capital outlay for capital assets and improvements are capitalized as projects are constructed. For debt-financed capital assets, interest incurred during the construction phase is reflected in the capitalization value of the asset constructed, net of interest earned on the invested proceeds over the same period. There is no interest expense capitalized by the Agency for the year ended June 30, 2010. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the Statement of Net Assets. The range of lives used for depreciation purposes for each capital asset class is as follows: Buildings 40 years Improvements other than buildings 25 years Machinery and equipment 5 - 8 years Furniture and fixtures 5 years H. Long-Term Obligations: In the government-wide financial statements, long-tem debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, deferred amount on refunding, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount and deferred amount on refunding. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. See independent auditors' report. Page 29 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): H. Long-Tenn Obligations (Continued): In the governmental fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 1. Fund Balance: In the governmental fund financial statements, governmental fund types report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. J. Tax Increment: The Agency follows a policy of what constitutes contractual obligations for the purpose of spending tax increment revenue. This policy holds that all expenditures of the Capital Projects Funds (i.e. salaries, goods and supplies, professional services, etc.) are contractual obligations. Monies are therefore transferred from the Debt Service Funds to cover the costs of the expenditures from the Capital Projects Funds. The Agency has no power to levy and collect taxes, and any legislative property tax de-emphasis might necessarily reduce the amount of tax revenues that would otherwise be available. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would necessarily increase the amount of tax revenues that would be available. K. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement of Net Assets: The "total fund balances" of the Agency's governmental funds $18,614,228 differs from "net assets" of governmental activities $(14,415,085) reported in the Statement of Net Assets. This difference primarily results from the long-term economic focus of the Statement of Net Assets versus the current financial resources focus of the Governmental Fund Balance Sheets. See independent auditors' report. Page 30 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 L REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): K. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement of Net Assets (Continued): Capital Assets Capital assets are recorded as expenditures in the full amount as current financial resources are used in the governmental funds. However, the Statement of Net Assets allocates these capital assets as financial resources over their estimated useful life. Capital assets, net of depreciation Interest and Other Receivables 11,8 1 420 Interest on interfund loans and other receivables reported in the special revenue funds are not available soon enough to pay for current-period expenditures, and therefore they are reported as deferred revenue in the funds. Interest on interfund loans and other receivables $ 1 U61 317 Long-Term Debt Transactions Long-term liabilities and related items such as deferred amount on refunding, bond discount and the interest payable on these liabilities applicable to the Agency's governmental activities are not due and payable in the current period and accordingly are not reported as governmental fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Assets. Balances at the end of this fiscal year were: Noncurrent liabilities Deferred amount on refunding, net of accumulated amortization Bond discount, net of accumulated amortization Accrued interest payable on long-term liabilities Long-term debt transactions See independent auditors' report. $ (65,736,530) 821,250 164,120 ---U&90,156 1 $ (65 841 L 16J Page 31 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITYAND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): K. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement of Net Assets (Continued): Deferred Charges Bond issuance costs are recorded as expenditures in the full amount as current financial resources are used in the governmental funds. However, the Statement of Net Assets defers these charges and amortizes them over the terms of the related debt. Bond issuance costs, net of related amortization 1.559.2 6 L. Explanation of Differences between Governmental Funds Operating Statements and the Statement of Activities: The "net change in fund balances" for governmental funds $(5,965,706) differs from the "change in net assets" for governmental activities $(496,539) reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below. Depreciation of Capital Assets Capital assets are expensed in full in the year of acquisition as current financial resources are used in governmental funds. However, the costs of these capital assets are allocated over their estimated useful life in the Statement of Activities through depreciation. Capital outlay Depreciation on capital assets Capital asset transactions $ 217,009 (349.460) $ (132.451) See independent auditors' report. Page 32 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 REPORTING ENTITYAND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): L. Explanation of Differences between Governmental Funds Operating Statements and the Statement of Activities (Continued): Long-Term Debt Transactions Some revenues and expenses reported in the Statement of Revenues, Expenditures and Changes in Fund Balances are included as an addition or deletion of long-term liabilities in the Statement of Net Assets. Refunding bonds issued Principal added on note payable $ (26,290,000) Principal amount of debt refunded (94,166) (94 Principal payments 23, ,000 Issuance costs 1,870,027 Deferred amount on refunding 1,584,965 Discount on bonds 835,393 166.785 Long-term debt transactions 1 308 004 Interest on Long-Term Debt Interest payable on long-term debt does not require the use of current financial resources and is not reported as governmental fund expenditures. However, these expenses are reported in the Statement of Activities. Interest and fiscal charges 1--Al 40233) Deferred Revenue and Other Receivables Some revenues and other receivables reported in the Statement of Activities do not provide the use of current financial resources and are not reported as governmental fund expenditures. Interest on advances to other funds and taxes $---4-476,354 Deferred Amounts Bond issuance costs, bond discount and deferred amount on refunding are recorded as expenditures in the Statement of Revenues, Expenditures and Changes in Fund Balances. However, these expenses are amortized over the terms of the related debt in the Statement of Activities. Amortization of issuance costs Amortization of deferred amount on refunding Amortization of bond discount Deferred amounts See independent auditors' report. $ (25,699) (14,143) (2,665) $ (4-2,507) Page 33 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): M. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 2. CASH AND INVESTMENTS: Cash and Investments Cash and investments at June 30, 2010 are classified in the accompanying financial statements as follows: Cash and investments Restricted assets: Cash and investments with fiscal agents Total Cash and Investments Government- Fiduciary Wide Fund Statement of Statement of Net Assets Net Assets Total $ 35,818,630 $ - $ 35,818,630 4,787,592 4,487,393 9,274,985 40.606222 44873 3 45,093615 Cash and investments at June 30, 2010 consisted of the following: Deposits with financial institutions $ 327,283 Investments 44.766.332 Total Cash and Investments $ 45.093 615 See independent auditors' report. Page 34 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 2. CASH AND INVESTMENTS (CONTINUED): Investments Authorized by the California Government Code and the Agency's Investment Policy The table below identifies the investment types that are authorized for the Agency by the California Government Code (or the Agency's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Agency's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the Agency, rather than the general provisions of the California Government Code or the Agency's investment policy. Authorized Investment Type United States Treasury Obligations United States Government Sponsored Enterprise Securities Banker's Acceptances Time Certificate of Deposits Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium-Term Corporate Notes Local Agency Investment Fund (LAIF) Maximum Maximum Maximum Percentage Investment Maturity of PortfOli0* in One Issuer 5 years None None 5 years None 40% 180 days 40%u 10% 5 years 25% None 270 days 15% 10% 5 years 30%o None 1 year None None 92 days 2% None 5 years 30% None N/A None $ 40,000,000 N/A - Not Applicable * - Excluding amounts held by bond trustee that are not subject to California Goverment Code restrictions. Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Agency's investment policy. Investments authorized for funds held by bond trustee include, United States Treasury Obligations, United States Government Sponsored Enterprise Securities, Guaranteed Investment Contracts, Commercial Paper, Local Agency Bonds, Banker's Acceptance and Money Market Mutual Funds. There were no limitations on the maximum amount can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Commercial Paper which is limited to 92 days and of Banker's Acceptances which are limited to one year. See independent auditors' report. Page 35 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Agency manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the Agency's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Agency's investments by maturity: Remaining Maturity (in Months) 12 Months Investment Type or Less Local Agency Investment Fund $ 35,491,347 Money Market Mutual Funds 9274.985 44.766.332 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Agency's investment policy, or debt agreements, and the actual rating by Standard and Poor, as of year end for each investment type: Minimum Legal Investment Type Rating Local Agency Investment Fund N/A Money Market Mutual Funds A N/A - Not Applicable See independent auditors' report. Total as of June 30, 2010 AAA $ 35,491,347 $ - 9,274,985 9,274,985 44.766332 $ 9 274 985 Unrated $ 35,491,347 3.5.491.347 Page 36 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 2. CASH AND INVESTMENTS (CONTINUED): Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Agency's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Agency's deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2010, the Agency's deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to $250,000, with the remaining balance collateralized as required by California law. Investment in State Investment Pool The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Agency's investment in this pool is reported in the accompanying financial statements at amounts based upon the Agency's pro-rata share of the fair value provided by LAIF for the entire LAW portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. See independent auditors' report. Page 37 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 3. CAPITALASSETS: A summary of changes in the capital assets for the year ended June 30, 2010 is as follows: Balance at Balance at June 30, 2009 Additions Deletions June 30. 2010 Capital assets, not being depreciated: Land $ 2.426392 $ $ $ 2 426 392 , , Total capital assets, not being depreciated 2,426,392 2 426 392 , , Capital assets, being depreciated: Buildings and structures 13,866,031 179,384 - 14,045 415 Improvements other than buildings 312,315 37,625 , - 349,940 Machinery and equipment 972,376 - - 972,376 Furniture and fixtures 996 996 Total capital assets being depreciated 15,151,718 217,009 - 15 368 727 , , Less accumulated depreciation for: Buildings and structures (4,430,951) (336,967) - (4,767,918) Improvements other than buildings (149,916) (12,493) - (162,409) Machinery and equipment (972,376) - (972,376) Furniture and fixtures (996) - - (996) Total accumulated depreciation (5,554,239) (349,460) (5,903,699) Total capital assets being depreciated, net 9,597,479 (132,451) 9 465 028 , , Total capital assets, net 12.023 023,871 (13?_ 4 L 1) $ $ 11.891.420 Depreciation expense was charged to governmental activities, general government program See independent auditors' report. Page 38 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 4- LAND HELD FOR RESALE: The cost of land acquired by the Agency and held for resale is recorded as an asset at the time of purchase. The property is being carried in the Rancho Laguna I Special Revenue Fund and Other Government Funds (Rancho Laguna I Capital Projects Fund) at the lower of cost or estimated net realizable value. 5. LONG-TERM LIABILITIES: Loans Payable: Public Financing Authority EVMWD (Amber Ridge) Developer Agreements: Wal-Mart Stores, Inc. Oakgrove Equities Outlet Center Date of Years of Rate of Issue Maturity _ Interest Various Various Various 2/95 1999-2014 2.70%-6.00% 3/93 1995-2014 7.00% 3/93 1995-2014 7.00% 12/89 1996-2015 N/A Amount Authorized $ 60,320,000 867,574 2,200,000* 1,800,000* 2,140,000 * - Principal only Outstanding Outstanding Due June 30, June 30, Within 2009 Additions Retirements 2 Loans Payable: 010 One Year Public Financing Authority $ 52,785,000 $ 26,290,000 $ 24,530,000 $ 54 545 000 $ 1 9 Deferred amount on , , , 55,000 refunding Discount on bonds - (835,393) (14,143) (821,250) EVMWD(AmberRidge) - 307 542 (166,785) (2,665 ) (164,120) Developer Agreements: , 50,822 256,720 49,727 Wal-Mart Stores, Inc. Oak Grove Equities 607,214 2 - 162,120 445,094 162,120 Outlet Center ,200,726 94,166 - 2,294,892 Advances from the City 633,101 - 109,513 523,588 109,513 of Lake Elsinore 7.923.808 252 _ .572 7.671 236 259.430 kk4_4~2,321 L25A81 988 25.088 219 64 751,160 S_ 535.790 See independent auditors' report. Page 39 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 5. LONG-TERM LIABILITIES (CONTINUED): A. Loans Payable: Public Financing Authority The City of Lake Elsinore's Public Financing Authority (the Authority) has issued Tax Allocation Revenue Bonds for financing projects of the Agency and to provide funds for the various debt obligations of the Agency. The Agency has entered into loan agreements with the Authority which mirror the bonds issued by the Authority. Concurrent with the execution and delivery of the loan agreements, the Authority issued the aggregate principal amount of its Tax Allocation Revenue Bonds to the Agency. The loans were made as an advance for the principal amount which was made from the proceeds of the bonds on the closing date of the bond. The principal and interest are payable in installment payments payable not less than three business days prior to the due date on the bond. At June 30, 2010, loan agreements between the Agency and Authority totaled $54,545,000 based on 1999 Series A, 2010 Series A and 2010 Series B Tax Allocation Revenue Bonds issued by the Authority with proceeds disbursed as follows: Public Financing Authority - 1995 Series A In December 1995, $13,345,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued by the Authority. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to redeem $8,385,000 1995 Series A loan and a portion of the $9,600,000 1993 Series A loan from the Authority. The Bonds were refunded by the 2010 Series B Tax Allocation Revenue Bonds in April 2010. Public Financing Authority - 1999 Series A In February 1999, $33,450,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued by the Authority. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to advance refund $34,825,000 of outstanding 1992 Tax Allocation Revenue Bonds and to provide funds for the acquisition and construction of certain public improvements within the Rancho Laguna Redevelopment Project Areas I and II. The loan is payable in annual installments of $410,000 to $2,175,000 from September 1, 2000 through September 1, 2030; interest at 5.00% to 5.50%. The loan balance at June 30, 2010 is $28,255,000. At June 30, 2010, the Agency has a cash reserve balance for debt service of $2,302,769 which is sufficient to cover the Bond Indenture Reserve Requirement. See independent auditors' report. Page 40 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 5. LONG-TERM LIABILITIES (CONTINUED A. Loans Payable (Continued): Public Financing Authority - 1999 Series B In February 1999, $580,000 principal amount of Tax Allocation Revenue Bonds, Series B, was issued by the Authority. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to advance refund $34,825,000 of outstanding 1992 Tax Allocation Revenue Bonds and to provide funds for the acquisition and construction of certain public improvements within the Rancho Laguna Redevelopment Project Area 11. The final loan payment was made in fiscal year 2009-2010. Public Financing Authority - 1999 Series C In October 1999, $14,180,000 principal amount of Tax Allocation Revenue Bonds, Series C, was issued by the Authority. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to advance refund $12,578,000 of outstanding 1993 Tax Allocation Revenue Notes, Series A, the 1995 Tax Allocation Revenue Bonds, Series B and to provide funds for the acquisition and construction of certain public improvements within the Rancho Laguna Redevelopment Project Areas I, II and III. In February 2010, the bonds were refunded by the 2010 Series A Tax Allocation Revenue Bonds. Public Financing Authority - 2010 Series A In February 2010, $15,435,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued by the Authority. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to advance refund $13,170,000 of outstanding 1999 Series C Tax Allocation Revenue Bonds. The loan is payable in annual installments of $305,000 to $2,910,000 from September 1, 2010 through September 1, 2033; interest at 2.00% to 5.25%. The loan balance at June 30, 2010 is $15,435,000. At June 30, 2010, the Agency has a cash reserve balance for debt service of $1,471,930 which is sufficient to cover the Bond Indenture Reserve Requirement. The advance refunding resulted in an economic gain of $1,277,035 and a decrease in cash flows of $96,017. Proceeds from the 2010 Series A bonds were invested in an escrow fund with a trustee which together with earnings will pay interest and principal on the bonds until fully retired. The 1999 Series C bonds are legally defeased and are no longer a liability of the Agency. See independent auditors, report. Page 41 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 5. LONG-TERM LIABILITIES (CONTINUED): A. Loans Payable (Continued): Public Financing Authority - 2010 Series B In May 2010, $10,855,000 principal amount of Tax Allocation Revenue Bonds, Series B, was issued by the Authority. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to advance refund $10,065,000 of outstanding 1995 Series A Tax Allocation Revenue Bonds. The advance refunding resulted in an economic gain of $757,319 and a decrease in cash flows of $893,956. Proceeds from the 2010 Series B bonds were invested in an escrow fund with a trustee which together with earnings will pay interest and principal on the bonds until fully retired. The 1995 Series A bonds are legally defeased and are no longer a liability of the Agency. The loan is payable in annual installments of $515,000 to $895,000 from September 1, 2010 through September 1, 2025; interest at 2.00% to 4.75°/x. The loan balance at June 30, 2010 is $10,855,000. At June 30, 2010, the Agency has a cash reserve balance for debt service of $939,541 which is sufficient to cover the Bond Indenture Reserve Requirement. Future debt requirements for the loans payable to the Public Financing Authority are as follows: Year Ending June 30. 2011 2012 2013 2014 2015 2016.2020 2021 -2025 2026 - 2030 2031 -2034 Totals Principal $ 1,955,000 1,650,000 1,710,000 1,770,000 1,840,000 10,470,000 13,180,000 12,890,000 9,080,000 $ 54.545 000 Interest $ 2,594,512 2,551,249 2,487,469 2,416,779 2,343,225 10,531,031 7,623,491 4,132,525 836.943 35,517-224 Total $ 4,549,512 4,201,249 4,197,469 4,186,779 4,183,225 21,001,031 20,803,491 17,022,525 9.916.943 90 062 224 Elsinore Valley Municipal Water District (EVMWD) -Amber Ridge In February 1995, the City and the Agency entered into an agreement with the EVMWD whereby the Agency would reimburse the EVMWD's annual loan payment related to project costs of the EVMWD and a loan payable to the State Resources Control Board. The Agency's annual installments of $60,740 are due July 1, 1999 to July 1, 2014; interest from 2.70% to 6.00%. See independent auditors' report. Page 42 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTIN[JED) June 30, 2010 5. LONG-TERM LIABILITIES (CONTINUED): A. Loans Payable (Continued): Elsinore Valley Municipal Water District (EVMWD) - Amber Ridge (Continued) Future debt requirements for the loans are as follows: Year Ending June 30. Principal Interest Total 2011 $ 49,727 $ 11,013 $ 60 740 2012 2013 53,436 7,304 , 60,740 2014 55,412 5,328 60,740 -98,145 3,657 101.802 Totals 25~ 720 27,302 $ 284,022 B. Developer Agreements: The Agency has entered into several developer agreements to attract new business to the City. The following represents the Agency's significant commitments with certain developers: Wal-Mart Stores, Inc. On March 12, 1993, the Agency entered into a Disposition and Development Agreement with Wal-Mart Stores, Inc. The Agency has agreed to purchase Wal-Mart property through the payment of a $2,200,000 loan from Wal-Mart Stores, Inc. The $2,200,000 accrues interest at 7.00% per annum. Installment payments are to be made each year on January 30a for approximately 20 years, continuing 19 years after the first installment date. Installment payments are calculated to be (1) in the amount of 100% of the sales tax in excess of $200,000, but not to exceed $200,000 and (2) 50% of the amount of any additional sales tax received in excess of $400,000. Sales tax is not pledged for repayment. The obligation is a general obligation of the Agency and tax increment is not specifically pledged. As of June 30, 2010, the Agency owes $445,094 to Wal-Mart Stores, Inc., which has been included in the long-term obligations. See independent auditors' report. Page 43 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 5. LONG-TERM LIABILITIES (CONTINUED): B. Developer Agreements (Continued): Oak Grove Equities On March 12, 1993, the Agency entered into an Owner Participation Agreement with Oak Grove Equities. The Agency has agreed to reimburse the developer $1,800,000 for certain public improvements that were installed at the Lake Elsinore City Center. The $1,800,000 accrues interest at 7.00% per annum. Installment payments are to be made each year on January 30U' for approximately 20 years, continuing 19 years after the first installment date. Installment payments are calculated to be (1) in the amount of 100% of the sales tax in excess of $200,000, but not to exceed $200,000 and (2) 50% of the amount of any additional sales tax received in excess of $400,000. Sales tax is not pledged for repayment. The obligation is a general obligation of the Agency and tax increment is not specifically pledged. As of June 30, 2010, the Agency owes $2,294,892 to Oak Grove Equities, which has been included in the long-term obligations. Any unpaid obligation on the 20`h payment date is to be forgiven and discharged. Outlet Center The Agency entered into an Owner Participation Agreement with NG/Chelsea Lake Elsinore Limited Partnership pertaining to the development of a factory retail outlet. The factory outlet center is located in Redevelopment Project Area 1. Pursuant to the Agreement, the Agency is required to pay the annual special assessment levied by Assessment District 86-1. The bonds issued by Assessment District 86-1 mature in the year 2015 and the annual special assessment is approximately $108,000. As of June 30, 2010, the Agency owes $523,588 which has been included in the long-term obligations. C. Advances from the City of Lake Elsinore: The City advanced the Agency $8,158,238 from 1997 through 2002 and $903,250 for the fiscal year ended June 30, 2003. These advances are to cover certain administrative costs and a legal settlement related to the Agency. Payments of $467,724 are to be made on an annual basis through fiscal year 2032. Interest is accrued cumulatively on the advances at a rate of 2.715%. See independent auditors' report. Page 44 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 5. LONG-TERM LIABILITIES (CONTINUED): C. Advances from the City of Lake Elsinore (Continued): Future debt requirements for the advances from the City of Lake Elsinore are as follows: Year Ending June 30. 2011 2012 2013 2014 2015 2016 - 2020 2021 -2025 2026 - 2030 2031 -2032 Totals Principal $ 259,430 266,474 273,710 281,141 288,775 1,565,837 1,790,283 2,046,900 898,686 &----7,671,236 Interest $ 208,294 201,250 194,014 186,583 178,949 772,783 548,337 291,720 36.765 $ 2 18,695 Total $ 467,724 467,724 467,724 467,724 467,724 2,338,620 2,338,620 2,338,620 935.451 $ 10289 931 6. COMMUNITY FACILITIES DISTRICT BONDS: These bonds are authorized pursuant to the Mello-Roos Community Facilities District Act of 1982, as amended, and are payable from special taxes levied on property within the Community Facility Districts according to a methodology approved by the voters within the District and by the Board of the Agency. Neither the faith and credit nor taxing power of the Agency is pledged to the payment of the bonds. Reserves have been established from the bond proceeds to meet delinquencies should they occur and amounted to $1,447,000 at June 30, 2010. If delinquencies occur beyond the amounts held in those reserves, the Agency has no duty to pay the delinquency out of any available funds of the Agency. The Agency acts solely as an agent for those paying taxes levied and the bondholders. Therefore, the outstanding balances of these bonds are not reflected in these financial statements. Original Bonds Issue Outstanding at Community Facilities District 90-2 Tuscany Hills Amount June 30. 2010 Public Improvements 2002 Series A $ 14,470,000 $ 8 565 000 Community Facilities District 90-2 Tuscany Hills , , Public Improvements 2007 Series A 7,340,000 7 340 000 Total Community Facilities District Bonds _ . L-15,205-000 See independent auditors' report. Page 45 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY 7. FUND BALANCE RESERVES: June 30, 2010 The various reserves at June 30, 2010 are as follows: Reserved for: Advances to other funds Prepaid expense Land held for resale Low and moderate income housing Debt service NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) Rancho Rancho Laguna LagunaI Special Debt Revenue Service Fund Fund $ 18,040,439 $ 2,714,687 213 12,103,837 1.461.936 1_34,320,899 Rancho Rancho Laguna II Laguna III Debt Debt Other Service Service Gov't Fund Fund Funds 1,037 104,858 6,088,480 ~ 6.088.480 1,560,360 6,211,055 199,573 1.560,573 6.21 04.4 1 Reserved for Advances to Other Funds This reserve was established to represent amounts that were advanced to the Rancho Laguna Redevelopment Projects Areas I, II and III in such a manner that they will not be considered as current available funds. Reserved for Prepaid Expense This reserve was established to indicate amounts that do not constitute available spendable resources. Reserved for Land Held for Resale This reserve was established to remove land held for resale from current fund balances in such a manner that they will not be considered as current available funds. Reserved for Low and Moderate Income Housing This reserve was established to represent the amount set aside in the Special Revenue Fund for low to moderate income housing for expenditures which benefit low to moderate income families. Reserved for Debt Service This reserve was established to represent the amount accumulated in accordance with a bond indenture or similar covenant to pay principal and interest on long-term debt. See independent auditors' report. Page 46 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 8. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS: During the course of normal operations, the Agency entered into numerous transactions between fonds, including expenditures and transfers of resources to provide services, construct assets and service debt. Due to and from other funds at June 30, 2010 are as follows: Receivable Fund Payable Fund Rancho Laguna I Debt Service Fund Other Governmental Funds Rancho Laguna H Debt Rancho La Service Fund Laguna III Debt Service Fund Amount 4,809,388 -12,229,211 17 0 8 599 Advances to and from other funds at June 30, 2010 are as follows: Advances To Rancho Laguna I Debt Service Fund Advances From Rancho Laguna Special Revenue Fund Amount $ 15,605,801 Rancho Laguna II Debt Service Fund Rancho Laguna III Debt Service Fund Rancho Laguna Special Revenue Fund 17,422,431 Rancho Laguna Special Revenue Fund -4,373,524 5-37,401,75 6 The advances from the Rancho Laguna Special Revenue Fund to the Rancho Laguna I, II and III Debt Service Funds were made from: (a) the 1995 Series A and 1999 Series C bond proceeds deposited in the Rancho Laguna Special Revenue Fund. The 1995 Series A and 1999 Series C bonds were refunded in fiscal year 2010 with the issuance of the 2010 Series A and 2010 Series B bonds. The advances payable include an original loan amount of $18,040,439 and accrued interest of $15,611,317 and (b) advances in the amount of $3,750,000 was a result of suspending a portion of the 20% set aside requirement to assist in the payment of the SERAF obligation for fiscal year 2010. See independent auditors' report. Page 47 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 8. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED): Transfers in and out representing normal operations at June 30, 2010 are as follows: Transfers In Transfers Out Amount Other Governmental Funds Rancho Laguna I Debt Service Fund $ 700,000 Rancho Laguna R Debt Service Fund Rancho Laguna III Debt Service Fund Other Governmental Funds 9. PASS-THROUGH AGREEMENTS: 800,000 500,000 135.998 $ 2 135 998 In order to lessen the fiscal impact of the tax increment financing of redevelopment projects on other units of local governments, the Agency has entered into pass-through agreements with various governmental agencies to "pass-through" portions of tax increment funds received by the Agency, attributable to the area within the territorial limits of other agencies. 10. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES: The following funds had a deficit fund balance at June 30, 2010. These deficits are expected to be eliminated through future revenues and transfers. Major Funds: Rancho Laguna I Debt Service Fund Rancho Laguna III Debt Service Fund Other Governmental Funds: Rancho Laguna R Capital Projects Fund Rancho Laguna III Capital Projects Fund Amount 8,719,546 14,686,308 19,019 20,310 See independent auditors' report Page 48 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 11. MORTGAGE REVENUE BONDS: The Agency has entered into a bond and loan program to assist low and moderate income homebuyers of multi-family residential developments with the City limits. Although the Agency has arranged the financing program, these debts are not payable from any revenues or assets of the Agency. Neither the faith and credit nor the taxing power of the Agency, or any political subdivision of the Agency, is pledged to repay the indebtedness. Accordingly, since these debts do not constitute an obligation of the Agency, they are not reflected in the accompanying financial statements. They are as follows: Original Bonds Issue Outstanding at Amount June 30.2010 Lakeside Village Project - Due January 1, 2031 $ 5,000,000 $ 4 J53,100 12. LITIGATION: The Agency is a defendant in several other pending lawsuits of a nature common to may similar jurisdictions. Agency management estimates that the potential claims against the Agency not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the Agency. 13. LIABILITY, PROPERTY AND PROTECTION: A. Description Self-Insurance Pool Pursuant to Joint Powers Agreement: To account for risks of loss and liability claims, the Agency participates in the City's liability, property and protection policy. The City is a member of the California Joint Powers Insurance Authority (Insurance Authority). The Insurance Authority is composed of 122 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500 et. seq. The purpose of the Insurance Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other coverages. The Insurance Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9-member Executive Committee. See independent auditors' report. Page 49 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 13. LIABILITY, PROPERTY AND PROTECTION (CONTINUED): B. Self-Insurance Programs of the Insurance Authority: Comprehensive General and Automobile Liability Insurance - Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between police and non-police. Costs are allocated to members by the following methods within each of the four layers of coverage: (1) the first $30,000 of each occurrence is charged directly to the member's primary deposit; (2) costs from $30,000 to $750,000 and the loss development reserves associated with losses up to $750,000 are pooled based on the member's share of losses under $30,000; (3) losses from $750,000 to $2,000,000 and the associated loss development reserves are pooled based on payroll; (4a) costs of covered claims from $2,000,000 to $50,000,000 are paid under reinsurance and excess insurance policies; (4b) subject to a $3,000,000 annual aggregate deductible; (4c) and a quota-sharing agreement whereby the Insurance Authority is financially responsible for 40% of losses occurring within the $2,000,000 to $10,000,000 layer. The costs associated with 4a-c are estimated using actuarial models and pre-funded as part of the primary and retrospective deposits. The overall policy limit for each member including all layers of coverage is $50,000,000 per occurrence. Costs of covered claims for subsidence losses are paid by excess insurance with the following sub-limits per member: $25,000,000 per occurrence with a $15,000,000 annual aggregate. C. Purchased Insurance All Risk Property Insurance - The City participates in the all-risk property protection program of the Insurance Authority. This insurance protection is underwritten by several insurance companies. The City's property is currently insured according to a schedule of covered property submitted by the City to the Insurance Authority. The City's property currently has all-risk property insurance protection in the amount of $34,672,957. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. See independent auditors' report. Page 50 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 13. LIABILITY, PROPERTY AND PROTECTION (CONTINUED): C. Purchased Insurance (Continued): Crime Insurance The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the insurance Authority. Premiums are paid annually and are not subject to retroactive adjustments. D. Adequacy of Protection: During the past three fiscal (claims) years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. The aforementioned information is not included in the accompanying financial statements. Complete financial statements for the Insurance Authority may be obtained at their administrative office located at 8081 Moody Street, La Palma, California 90623. 14. CONTINGENCIES: Taxes Levied Under Provisions of the California Constitutions, taxes levied by any taxing agency on all taxable property in the project area will be divided as follows when collected: a• An amount each year equal to the current tax rates applicable to the assessed valuation (within the project area) prior to the adoption of the Redevelopment Plan will be paid into the funds of the respective taxing agencies, and b. Taxes received over and above that amount will be deposited in the Capital Projects operating funds of the Agency. The Agency has no power to levy and collect taxes, and any legislated property tax reduction might reduce the amount of tax revenues that would otherwise be available to pay the amount due to bondholders. Broadened property tax exemptions would have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on advances from other governments. See independent auditors' report. Page 51 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 14. CONTINGENCIES (CONTINUED) Laing Elsinore LLC The Agency has entered into a Disposition and Development Agreement (the DDA) with Laing-CP Lake Elsinore LLC and Civic Partners-Elsinore LLC, as developer and master developer, respectively, covering an area of approximately 3,000 acres. As a result of the bankruptcy of the managing member of Laing-CP Lake Elsinore LLC, Bank of America has foreclosed on and now owns the property subject to the DDA. The Agency has pledged 100% of the net tax increment, excluding moneys to be set aside in the low and moderate income housing fund and existing pass-through agreements, pursuant to the DDA. The DDA prohibits any further bonded indebtedness secured by tax increment generated by the project site, other than for specified project purposes. The Agency has accrued tax increment due under the DDA for payment when due pursuant to the terms of the DDA. Supplemental Education Revenue Augmentation Fund (SERAF) Pursuant to AB 26 4x, a budget trailer bill, California redevelopment agencies were required to make Supplemental Education Revenue Augmentation Fund (SERAF) contributions totaling $1.7 billion for the fiscal year 2009-2010 and $350 million for the fiscal year 2010-2011. Under AB 26 4x, agencies may borrow a portion of the required contributions from their low and moderate income housing fluid. Alternatively, sponsoring governmental agencies (the cities or counties) may elect to pay the SERAF contributions on behalf of their redevelopment agencies. On October 20, 2009, the California Redevelopment Association filed a class action lawsuit on behalf of all California redevelopment agencies, again challenging the SERAF obligations as unconstitutional. The court ruled that the SERAF obligations were not unconstitutional. The Agency's SERAF contributions for the fiscal year 2009-2010 was $6,976,853. The Agency paid $3,226,853 from non-housing funds and the balance of $3,750,000 was from suspending a portion of the 20% set aside amount for fiscal year 2010 as allowed by the legislation. The Agency's SERAF contributions for the fiscal year 2010-2011 will be $1,435,054 See independent auditors' report. Page 52 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 14. CONTINGENCIES (CONTINUED): Disposition and Development Agreement The Redevelopment Agency has entered into a disposition and development agreement with Pottery Court Housing Associates, L.P. to provide a loan in an amount not to exceed $4,061,000 from the housing fund. The interest on the loan is to be paid at a rate of 3 percent per year with payments due annually on July 1. The payment on the loan will be based on annual payments equal to 75% of the Agency's share of the residual receipts as defined in the DDA agreement commencing on July 1 in the calendar year immediately following the calendar year in which the deed of trust evidencing the loan is recorded in the official records of Riverside County. The loan with accrued interest is payable in full on the date which is 55 years from the date of recording of the release of construction covenants. As of June 30, 2010, the Agency has purchased land from various property owners, including the City at a cost of $3,271,097 to provide the developer the property for this project. The land has not been transferred to the developer and therefore no loan balance due under this agreement is reported on the balance sheet of the housing fund. 15. SUBSEQUENT EVENT: Issuance of Tax Allocation Revenue Bonds 2009 Series A In November 2010, Lake Elsinore Public Financing Authority Tax Allocation Revenue Bonds 2010 Series C in the aggregate principal amount of 29,435,000. Concurrent with this issue, the principal amount was loaned to the Agency. The proceeds were used to refund the 1999 Series A Bonds. 16. RESTATEMENT OF NETASSETS/FUND BALANCES: Net deficit at the beginning of year, as previously reported Increase in net assets to record cash with fiscal agent (1995 Series A bonds) Decrease in net assets to record additional liabilities Net deficit at the beginning of year, as restated (14,201,818) 1,023,464 (740 192) $(13,918 546) See independent auditors' report. Page 53 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2010 16. RESTATEMENT OF NET ASSETS/FUND BALANCES (CONTINUED): Fund balances (deficits) at the beginning of the year, as previously reported Adjustment to increase fund balance in special revenue fund and decrease fund balances in debt service funds to record interfund loans not reported in prior years. Adjustment to decrease fund balance in special revenue fund and increase fund balances in debt service funds to correct reporting of debt service payments in the correct funds from fiscal yen 1996 to 2005. Adjustment to decrease fund balance in special revenue fund and increase fund balances in debt service funds to correct reporting of debt service payments in the correct funds. Adjustment to record interest expense (payable) in debt service funds on loan from special revenue funds from fiscal year 1996 to 2009. Adjustment to increase fund balance in special revenue fund to record cash with fiscal agent for 1995A bonds. Adjustment to decrease fund balance for additional liabilities to developers agreements for the prior years. Adjustment to decrease fund balance for additional liabilities related to Stadium operating costs from the prior year. Fund balance (deficits) at the beginning of year, as restated See independent auditors' report. Special Revenue Fund Debt Service Funds Other Rancho Rancho Rancho Rancho Governmental Laguna LagunaI Laguna 11 Laguna Ill Funds $ 34,434,846 $ 1,766,852 $ 14,953,428 $ (12,572,455) $ 598,954 15,040,440 (9,929,887) (6,515,519) (6,649,378) (1,875,543) 2,205,587 883,732 (1,856,155) 2,802,672 4,921,628 (5,230,426) 1,555,570 2,791,124 (6,448,166) (6,580,642) 1,023,464 (25,532) (308,228) (278,950) (127,482) $ 35,312,905 $ (6,838,591) $ 9,127,932 $ (13,493,784) $ 471,472 Page 54 of 126 REQUIRED SUPPLEMENTARY INFORMATION Page 55 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY BUDGETARY COMPARISON SCHEDULE RANCHO LAGUNA SPECIAL REVENUE FUND For the year ended June 30, 2010 REVENUES: Tax increment Investment income Grant income Other income TOTAL REVENUES EXPENDITURES: Current: Professional services Project costs Debt services: Payment to refunding bond escrow agent Bond issuance costs Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Discount on bonds Refunding bonds issued Payment to refunding bond escrow agent TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING OF YEAR AS RESTATED FUND BALANCE - END OF YEAR Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 4,003,506 $ 253,506 $ 225,411 S (28,095) 376,644 376,644 133,564 (243,080) - - 714,757 - 714,757 - - 2,970 2,970 4,380,150 630,150 1,076,702 446,552 195,950 195,950 203,698 (7,748) 1,694,400 1,694,400 826,917 867,483 - - 1,295,449 (1,295,449) - - 878,354 (878,354) - - 440,450 (440,450) 1,336,419 1,336,419 731,062 605,357 3,226,769 3,226,769 4,375,930 (1,149,161) 1,153,381 (2,596,619) (3,299,228) (702,609) - - (119,642) (119,642) - 15,655,000 15,655,000 - - (13,228,136) (13,228,136) 2,307,222 2,307,222 1,153,381 (2,596,619) (992,006) 1,604,613 35,312,905 35,312,905 35,312,905 $ 36,466,286 $ 32,716,286 $ 34,320,899 $ 1,604,613 See independent auditors' report and note to required supplementary information. Page 56 of 126 LAKE ESLINORE REDEVELOPMENT AGENCY NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2010 1. BUDGETS AND BUDGETARY ACCOUNTING: The Agency follows these procedures in establishing the budgetary data reflected in the financial statements: 1) In May, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and estimated revenues and other means of financing. 2) Public hearings are conducted at City Council meetings to obtain public input. 3) Prior to July 1, the budget is adopted by Council action. 4) The City Manager is authorized to transfer funds appropriated with respect to those classifications designated as other services and material and supplies within the same department. The City Manager may transfer appropriated funds from any classification within other expenditure categories to the capital outlay classification within the same department only. For budgeting purposes, all Special Revenue and Capital Projects budgeted funds are considered a single department. Revenues are budgeted on a line item basis. 5) The legal level of budgetary control is maintained at the departmental level. Formal budgetary integration is employed as a management control device during the year for the Special Revenue Fund types to assist in controlling expenditures and enforcing revenue provisions. Capital Projects Fund types are budgeted on a project by project basis. All appropriations lapse at the end of the fiscal year, except for capital projects which are carried forward until such time as the project is completed or terminated. 6) Budgets for the Special Revenue and Capital Projects Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Budgeted amounts are as originally adopted and as further amended by the City Council. Budgetary data is not presented for Debt Service Funds because the activity within this fund is controlled by the debt agreements. 7) Budget information is presented for each major Special Revenue Fund. Capital Projects Funds are not required to present budgetary comparison schedules and formal budgeting policies are not required for the Debt Services Funds, therefore, the financial statements of these funds are not included in the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual. See independent auditors' report. F age 57 of 126 THIS PAGE INTENTIONALLY LEFT BLANK Page 58 of 126 SUPPLEMENTARY INFORMATION Page 59 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS Jane 30, 2010 Capital Projects Funds Total Other Stadium Rancho Rancho Rancho Governmental Capital Laguna I Laguna II Laguna III Funds ASSETS Cash and investments $ 247,671 $ 27,703 $ 23,959 $ 22,251 $ 321,584 Accounts receivable - 4,700 - - 4,700 Due from agency funds 77,171 - - - 77,171 Land held for resale - 6,088,480 - - 6,088,480 TOTAL ASSETS $ 324,842 $ 6,120,883 $ 23,959 $ 22,251 $ 6,491,935 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 43,838 $ 20,077 $ 42,246 $ 42,344 $ 148,505 Due to City of Lake Elsinore 45,595 407 732 217 46,951 Due to agency funds - 4,809,388 - - 4,809,388 TOTAL LIABILITIES 89,433 4,829,872 42,978 42,561 5,004,844 FUND BALANCES (DEFICITS): Reserved for: Land held for resale - 6,088,480 - - 6,088,480 Unreserved, undesignated 235,409 (4,797,469) (19,019) (20,310) (4,601,389) TOTALFUND BALANCES (DEFICITS) 235,409 1,291,011 (19,019) (20,310) 1,487,091 TOTAL LIABILITIES AND FUND BALANCES $ 324,842 $ 6,120,883 $ 23,959 $ 22,251 $ 6,491,935 See independent auditors' report. Paga 60 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS For the year ended June 30, 2010 REVENUES: Investment income Other revenue TOTAL REVENUES EXPENDITURES: Current: Project costs EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS) - BEGINNING OF YEAR, AS RESTATED FUND BALANCES (DEFICITS). END OF YEAR See independent auditors' report. Capital Projects Funds Total Other Stadium Rancho Rancho Rancho Governmental Capital Laguna l Laguna II Laguna III Funds $ - $ - $ 254 $ - $ 254 300,000 33,544 - - 333,544 300,000 33,544 254 - 333,798 200,589 346,197 478,304 293,089 1,318,179 99,411 (312,653) (478,050) (293,089) (984,381) 135,998 700,000 800,000 500,000 2,135,998 (41,817) (71,868) (22,313) (135,998) 135,998 658,183 728,132 477,687 2,000,000 235,409 345,530 250,082 184,598 1,015,619 945,481 (269,101) (204,908) 471,472 $ 235,409 $ 1,291,011 $ (19,019) $ (20,310) $ 1,487,091 Page 61 of 126 THIS PAGE INTENTIONALLY LEFT BLANK Page 62 of 126 © DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS to CONSULTANTS APARTNERSH(PWCLWWGACCOUNTANCYCORPORATIONS WCRXE.K LMK CPA CRAIG W. SPRAKEK CPA $ CORPORATE P NM P. PATEL, CPA ARIL, SUITE 100 ROBERT]. CALLANAN, CPA IRVINE, CALIFORNIA 92606-5165 -PHILIP H. HOLTKAMP, CPA '1110MAS M PERLOWSKL CPA (949) 399-0600 • FAX (949) 399-0610 'HARVEY3. Sm OMEa, CPA w .diehlevms com x R. Atw85, CPA _ WIUult.IMS G PENLZ, CPA December 27, 2010 •APROtR VON WMe na INDEPENDENTAUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS To the Board of Directors Lake Elsinore Redevelopment Agency Lake Elsinore, California We have audited the accompanying financial statements Of the governmental activities, each major fiend, and the aggregate remaining fund information of the Lake Elsinore Redevelopment Agency (the Agency) as of and for the year ended June 30, 2010, which collectively comprise the Agency's basic financial statements and have issued our report thereon dated December 27, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Re ortin 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 deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Agency's financial statements will not be prevented, or detected and corrected on a timely basis. OTHER OFFICBS AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598 (760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890 Page 63 of 126 Internal Control Over Financial Reporting (Continued) Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Lake Elsinore Redevelopment Agency's financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines For Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Agency Members and management of the Lake Elsinore Redevelopment Agency 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. tenter ~vc~ av~cl "mi"l ~J LLP Page 64 of 126 REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Lake Elsinore Redevelopment Agency Fiscal Year: 2010 ID Number: 13983341100 Submitted by $dgglature Name (Please Print) Jbirleo4vr o~ ,llllolm. .SVGS Title t pt / 30 Date Per Health and Safety Code section 33080, this report is due within six months after the end of the fiscal year. The report is to include two (2) copies of the agency's component unit audited financial statements, and the report on the Status and Use of the Low and Moderate Income Housing Fund (HCD report). To meet the filing requirements, all portions must be received by the California State Controllers Office. To file electronically: 1. Complete all forms as necessary. 2. Transmit the completed output file using a File Transfer Protocol (FTP) program or via diskette. 3. Sign this cover page and mail to either address below with 2 audits and the HCD report. To file a paper report: 1. Complete all forms as necessary. 2. Sign this cover page, and mail complete report to either address below with 2 audits and the HCD report. Report will not be considered filed until receipt of this signed cover page. Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section P. O. Box 942850 Sacramento, CA 94250 Express Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section 3301 C Street, Suite 700 Sacramento, CA 95816 Page 65 of 126 0 N I m I > U N LL I N I c N " 3 ! 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N m a U m ' O X A d m U w v " m } o o F o -y m v m o Q a i o a 'E a a ~ m c 3 a c a m m H `m c - E m« ¢ E E 0 0 m m a r c ¢ O c 0 m N fQ 0 O L O C O N Q C O a L d p II II 11 O U 0 U d h U o_ O a N " m w L ~ a ` O ° « , N 9 0 N ° w o o 2 0 3 w m c v o¢ a~ J ~ y ~ N ❑a~ m` E o 0 y N p V N N O > J aQ~ N d ~ NL-G d" J a `o0 C o: a s LS V Q N .MINI OJ a I I I I a10i m Q m ~ m t O ` m a O N a R x t x _ O % C 0 O O O O ~ M N O n N O M G M N M t7 N ~ G V C OG ~ t o ~ o w m G O w d m v) N N a y N C N ? d ~ Q C ry a m O pp j a °y ` c j 0 j U 0 ~ U ~ m m o 0 3 ~ a ~ m c w c O w C Q 9 m J 7 m o J V O N ~ ~ O a O a C ~ p O ~ N ~ N J v o a w m$ T 1 C O C~ N C~ N 0 6 N >i H i= ~ cz w z n a a a U O O m a m v o o s d ~ r N C U L d 0 0 LL ~ O C M N N O ~ a d o U ~ m m a a o n O 0 N v m ~ > ry " W O a a n a J E E U U m N C 11 m 0 K Page 70 of 126 O N Ol N N M 0 a; J- d - A, d a Z } I } ~ N B t0 ' ~ d LL ¢ m ICI III li ~ i U I l I I O O i I C ~ ] T LL C y N 2 O y 0) Q) N E C O 0 n O ¢ 0 0 0 a` II II Q II ~ N E c LL M y c O rn o O ~ 0 C O y C < ° 0 a o m° r O o` a R = y O N O C m E ° E o d ¢ N O w d Q m o c a Ip ~ U t 0 C R u m m a m ` m m ~ w o m a ~ m c ~ = y 0 o g t a E ¢ N n J a E d p v II a II II ~ O O « 0 p_ v 0 i W p m C m o¢ n~ ~v N O N pad « rn m`c m ° 0 win 9 N O > -cr O > ~ aQ« N d ~ lO L - aop C- o; d; Q! v } m Z E C m Q o N ~ 1n 0 N ~ LL m ~ m d 3 N Q Z Q `m m o m d o ¢ 'o n a` c a` d E N N O U Q V LL m m w V N - a l v a o to IiN NI MINI II I !I I I I , I iU I~'I i L _ O 31 O t0 c y `m O N ~ N m c a m a a y c y `o c V O N d E C d E > o T C ~ w z K W Z E E f 'O N m W aoi Q m 0 a` o x 0 C ~ 0 0 6 N N ~ U ~ c U1 O V m ~ U a m U c a! 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N L O) L F m ! ar Page 78 of 126 9 LL N O) C i'OP C d Q; NF _ " J E d 1 d P 5., . d IY m LL E N d d a y a N ~ 9 o Q7 C -O O O Q i- N O m d J _ a d O E F OI O J O d r J O U U p C d O C N O d N C d a' d N d d' C d E N ~ Page 79 of 126 ~~iiN m~ m o of O 47 ~ O N W' I N N' m m ~o mI m N (O V (O b i Q) Ct I N VV .N 1~' r b I V C _ LL N O C cN, J O d S ~ d a a d E O d ~ . _ d m C m° w 0 E a d w N d d v m U u z N ~ Q V d a` o _ d O ~ Q x H O m d C d ~ w F C O J N e) o T C J O U T U m O ~ C d N O N O ~ d ~ d ~ ~ c K N ~ d Z Page 80 of 126 10: O ?N- N LL E Z N Q V d a I :i Ian ml rn co co ~n I m 0 0 N V: t7 i(O li, ~.iv~ C J LL N D) C C O y E = y O = J O a E d O ❑ n O C t 0 N E c m m y E a m d O y Cl N > O O O C N m C 0 x O J J = O F O C Q O m U m `m o d x > r 3 r H 0 Z F O U O Page 81 of 126 IR y y E z m m d } Q N O O O N O i LL d N i 1~ V _ 4J N I N of N V !O N N r V ¢J . Tj~ i rW IV N N OJ ~ t7 N W N V N N. 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T co i a E F - o a. m E E m a ` _ U O ~ J 0 c m c c 6 v ~ o ° u . m N ~ U N d Y LL v } ` } J o U N a U s2 LL ~ N jy W LL pI ~ C ~ rn c c y Cl m m ~ a o m E O a `l N G w U m w ~ m C N y Q m m C d 2 C, ' C o ' o Q o y O E E E E o a a a , a a o ' m m m c~ m V 6 6 6 G 6 4 d U U U U d m c c c a c m a a` a` a` e ~ II - o, i ry N? a ~I ~ I. T C j{ I O D I N a C m O I r 1i a it C « 00 c m c ~ C p m LL OI m c . o E ( z E i 1I c o II oU U O jt a N F F- N 3 I C m O ~ - O 6 L .6 F7 a ~ a J Q E N U o N Z it v i O C M.0 m I 0 rn c ~ 0 ~ m af m a m N N m a 3 C J 0 o v m ° E 0 Q o m m N m o o J f-. O. N W - F B m O ~ a W II J o x m rri v Page 87 of 126 ~ a m 0 T C_ O _ - U U I m I 9 O m m T 3 ELI ~ m rnd Gam. 'rn l ~ o 'r ro l ; c h 1 ~ E m m Im m NI .co~ o c of c~ ~m F o'lw N ¢I~O) O I~ N Ol rlO p 11 IFIr OO CI~N ~ N7 O (O C. n t~ m I M _ L (O I h. C O V„~ 1~ n NI ' ~ ~loi m to I I c I mt w Ilr ~ f u-y (V N"I N C > fA I: v m ~I III m u L Z m 0 o m x p ~ m c m 0 0 ~ I i mt m d m ml o a yl m m o a i j a I p n ~ U N ~ U, rn `m y { OII C N d } 1L r { C m N 1 O } m O O U-6 II~ ~J a m U = FO C U? a Il m c "w0 C m O mO 0 a~i C C > ? I ? m i m ~ 9 t0 m y 3 ~ ~ m ~ C O) d "o } m c m a U a d E 3 > 0 N N C w m ami c } 5 O 'v m 3 m m I D: m I A Y c o m 'c m 5° w o + a '-N Z o Q N c c Cl c m aNi 2 0 c c m o ami 1a m ° f 3 O J I N C C m m o C -mm C C C O m l0 E s o o m m a g W d o 0 o Q o m Q c d N O O o E E E } a Q Q Q O O O 6 m aci Q Q Q Q E, Q T T ' 75 E U N m v ¢ p •0 a in m ¢ e. n c ¢ h 2 m 0 b; a m c c c a` c p U) LL d LL m } a a a- 2 ;E Q Q a` a a` a- m F~ n a D F m O c a Page 88 of 126 n I a d 0 E d m 0 T U C d O) Q LE A Z L R m Q d A d_ u O N ~ 'u, a O d O y dl O I O „ I N N I ~l d U _ QI ~II i , o a Iv! Eli O cl p ~l I I E Eoil II i d ! I y CI N d D d r U N LL O Ol C m d m D d y } E O r O N a L_ E D j N E d N > ~ C C ~ d } ~ m d E C J_ C Q } W C O ~ O d w 72 d 0 o. V c 5 ` a U c Q a U c o h d 0 - J o D _ ~ c d C O`_ c E N > E E N ~ .IO V N I[l, I II (d V N ~ ~O lin I m cd ~ I ICI h L j L I - A d } N ~ U N d } } ti O ~ ~ U d D p U d IL C m jy W lLL O~ C D O~ c - m ° m d ° D o d E ~ O O d ~ C w U d J _ c ~ m W ° w d c O ° 5 0 0 ' 0 E c o O O o Q D E E E E O O Q ¢ Q ¢ Q y . ~ m m m ~ m N O" O. O" C O" N d ` U U U ` 'U d y c c C a c a` a` a` a` s ° C_ O U _T U N D O m T O O) d C v 00 c l0 C C O N d y c d O O Z E _0 C) ~ D o d o ~ Q y m° ~ N -L C O O m v O L .2- U r H d~ s (L O D N ~ d U d N U N N Z G O c C M o d ~p d0 ~ N D h m d 3 C J Q m c 0 N 00 a J N C X N ?a 0 n r m. N' Page 89 of 126 a+ i of ; m I~lo Nl; CL E li `m A } Zi O ` R, LL R d' Q O m yi 2 y O LL d i Ii I N a c 0 m _ No o Io ; o! O > I OI a> o o ~ of y I ib',.Ib! ~ I rn n I, I II N N ~~i , it ICI O. M- d N N > `m `o a rn y o c } c c ~ N c m ~ Q N = C N E 15 d d c ` = > D m W o o o m m n 5 Q Q o O O O 6 N T T c m` U c .U c ° ` ` y a a A A U N A LL ~ O j0 m C • ~ o H C rn m v ` E c Q •o > N g m O y aci N } ca ~ iL N o E Q y } o LL rn a m o' E Q } N J rn c o m y 'o E Q LL O a w a m E O Q A a . o E Q y p c c a` E E m 0 s m o -s m a Z v c a m o s c y m i U s r ~ a i `o I m ' m 0 j U c o 1 v m t ~ d II 1 ~ _ co I U j E F c N o j m I N I o c a ~ d 3 J ~ c a ; { a ~ T N { ~ m f3 N c r t a' O rn c m. z° Page 90 of 126 a O I I f i i d S q 0 N ~ ? C ~ 6 C LL N a a K d m c t0 'm v o a O= c E LL O 0 J I C I I a N a V d LL I IL d d LL i o a ~ d c I 40 m i 7! o OI O N-_i i N E N Z L Q~ } a U V! 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I I. i I I I I I I I 'I N.IdI~ _.I II c y .o d N > N CN G J X N V N C N H F ry 0 R w O y0 C T O O) LL Z Oi G N O X C N .O a> N L R C7 Q E N I-' 6 N L N N J d ¢ W y J N O m= vi O G m Q a ti g E E w o J y } E o n Q 7 O 0 o o m m E c w m K O N J !n T C C C-_ ~ W U N O O _ N N N N N N O _ O t/ Q [If N -6 -2 O U O. N -2 H y C d C 0 N 0 Iz L 1- m iL m 1- - J N C7 LL C) m O Page 93 of 126 a m 0 N !I I. jA Q U ~ d c10 N la m _ S A Q N °m d C_ O. ~ N C LL m m C ~ N m ~ N Om c c rL m LL O 0 J C U 'Z N aLL 0 m ° N a ~ m 7 LL o. U I N M y O > {p N (D G J X Nj N E O fn N N F K m y m f6 N p m N C T ° O m LL Q m Z D ° o. C m m E m m D y (a E N Q O. N N U E m W O C O N 41 } Q E a a ¢ = O O U o o E c C m m _ tl m a m o C C c ° C ° ~ J (7 o E > m K A V d U U C ~ . T m m m y 0 C m O C O ~ O N a ~ m N O` x V m o N m N m y m ~ c ~ m c m c r f u' rn a in - J m O ~i (7 m O 0 N: ztv V m a 0 Page 94 of 126 F'I I O IJ N Cd G R z m 10 Q d } y O U. 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Z y U N _O N 0:.. y N C y d N Y C O y (a y O f0 (6 y C 0 O 0 -y ~`p d U Z a y v E X01 E ° E N N O. U y T 0 'y 0 } a CO !n ? a x Q O y U O w 0 v a c 16 d o N N o C O o E U m N c .N W 'm m m - m ° m c U. d o m a16i v n a~ a~ ° N 0 y 2: . Page 97 of 126 0 f L aO U y a ~ o. c N y K u m d d ' ox Q: ~ d E O 0 J C y 3- d U ~C hd: C d a c . W a V' d O ~ d I I 0' a U_ G' I ~ d o v I aLL d E. Q U ~ ~ N i of dl !N IdJ d E m z M 4 a N R N y O LL d 12 IS 10 6, 12 k im 0 0- va. I i I r II m a O d d Q _ d O 0 0 m v c y Z ' d "O 1n d J O N Q J ` N c m c d a E T a d o N U p M 3 o U d a a o U d 5 d U' y m m =a m y m c c y Q J4 cdi 'o L p C C LL O O p, O O c c •E, O G C d N ~j N N= j O.O C d M.0 d N d C - S] - ~ N Q 'O 9 d E N W F1 a = J d. C N m d m d L `m x n t N a x i r c D fY i iLL U O OD. O F KLLm 0 m-. M <o: so ~ o - N N 43 fA I i I I N M' O m I M c0 N i I , I I I Ii J J I e! 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N_ N: cli j q O l N ' a ~ y c I I i I I ' N: I I i V) m' `t' • I ac °o IM I I v M y_ `.y o lm l I N• N I - N' ~ . I ~ a a' _ 0 0 I I l (ry" T a i p I I a -S' ~ N I I II ~ . o A uu i I c. i I vj I I m, " cI y ~ I o. ~ , a ~ I 3• ILL ~ a ~ I i I I i i d C ' I ~ I I I I ! I y C ~ I O l a J Li L, c IS z , b ~ p a s. f0 ' m a o m O 3 a ~ O a a N N W O V V A d o c N N Z ~ o m c a m ~ O m N o. L E w 7 m U m c N a` j O N v m` C u W a fO L ~ ~p a T r C y N y 41 ~ G C C U O J N ~ m E N ll Q a N c I- N c `O LL E 41 U ~ O -O 3 ~ C a C a a a U O O o a o h F- 3 L c L a y0 aO C N _ W ~ m m O a 0 y o a - a c c a t m 2 2 a m o m" n _ x a _ x o r E a s a Q m 2 O O a m. Page 103 of 126 m w O m- M i III t I I 5 O y m i M N ~ a- r - I om m ~ - - ICI c c m o m cl ~ m o ICI m LL 3 E oi: N L I I ma m LL i _Q W 0 ~ ~ a I ~ m F»:. I I ea' I O ILL av LL I O U ' c 4J.; m m 0.. 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N d N. ,o j : m. j d ~ Q m m ° N o i°: Ir, I q' Q! as ` io. i J c LL o I N I I .J d, N la ~ ~ a C s. ~ A OI i Q" N C_ ~ d C ° > q E Z O L O W A TOO d C w ~ d u N a d 0 W C N L c c d m ° E m a ' m ~ ~ d v O A J D ¢ C U Q p C« C . J U - W C H O` N LL a ~ p~ p O W !1. CL c am m a o xt T g c. % X N WOW 7 o O W E E mf ?age 108 of 126 r O H L 0 of - M of v (O M I M' ' O ri N O] fA N N. N : N~ O M- OJ 1~. h Im f9 M i M I M N II I ~ N N I I 0 r c. I ~w o ~m m ~ ~o o lol I.-, f O! !~I O Imo! ~I !oi I o lol m N O -M ! m I . O I I I I II pOi M I ^ m. II INI I m0 m a I I 4 I' m I i ~ y m ~ I m 'N ` m = ox ! I ~ m I o O ~ m I i >2 m ya c I I N 7 d u' ~ m a !Q LLa M C ! i U ..m. LL ao a I m O.I ii U ~N (Li d E m z R m Q d U U ~ A O i,= a` LL LL or 3 ~ = m v ami E ~ m U O ~ a W ~ = O O 7 O V m C, E m m o rn m m m c_ C "O U C w 0 vm- m p ~ m U m c m m 'O c C ? C U h W y F y F a LL Of o c c m `m 000 w x o F E F E 3 L LL m m m U U U m N m m E U m m C m C t O ` 9 N d X Q X a` a a Q rn 0 H 0 Page 109 of 126 0 CF? .K, I m FO- i `d L TO U y N d d I ~ I y Ol « C A y_ d O p O J U C d U_ 7 y y a N C 3 ~ LL I ❑ Ri a dl .O y I Q LL c QI I d ~ LL Q, Ic a cd C R Z R L aRi QL R N V O y L ii a. N- dn1 0 v I I I » i IAN L.. 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N d 0 0 0 ,d ~ o f d ~I LL d Q _ ' d q s ~ 5^c° ~p O J N I ~ r r 1 OS' m E d ` O 1 ~ co m + I I ' II I I V N' t I I I 0- d 0 d 1 V ` a LL a I I' j ~ ~I a t V l i~ N d` ~ m d 0 I 9 ~ II Q ~ d _ LL 3 E _ - » ,C I I N V ~ VI a (D O O N MO N' M 1 d LL I I W V- 1 A~ : ~ O !it I a ICI ~ " , m * m rn 4 ' o m Cl i a s o I I r m' ? ol d L O K d~ t a C d . c -6 c° o E O P a ° w O a m . a W J d N a ~ O a C 51 d O m C d N C d h J J a d a C ~ ~ d a O~ v r d C m o a d J y L ~ d Y u C y~ .d_. C N d- a n d d d a d d i d u Uw yiNE y ¢U. ° Q« U~ 41 E Q E m an d Q o> E c c cc a W U d a m an d 3 d Q g E o d `ro - d u. t >a O ¢ EEm > L v_ w ¢m ¢a O m:; Page 112 of 126 o mi o b M n O O i l V; N - O ~zl C5 O' O - r O' : N N j I . C 'J M: g LL •y d d N I d Q d {9 ME S - S rn m I ~ O , ~ ~ i ~ to l N i a d O a I m I o'! I I I m a' I m ~ cl v i i I v'~I III ~ ~ m. IL I - ~I Y7 d ~ I -dr I y ~ ~ I ''i I II H „ N I w t7 . M M 1~ O M a O mO N . [NO cG d LL M l f`l ; £ rn I FI re I I I - ai- J J c II I li i I ~ I I II N U 10 _~III N ~ ' 411 O INI r ' - 2. N; N V d9 C .6 1 I rnl ail p p - aJ: N vN J III I f N IN V O : N 19: OLLii (v II ~ j I r~ NI n I O ` ll r ~ F d y ItD (O I ' M M I _ a c!. i ~ !I I I~l' rn i I r' v: . 3 0 W .r ~ i U II I. ~ I d,. I I r ~ 3 t y d L O m a c ~ n 4~i d t a c. L U LL d c y _a d U c d ~ d Q l o~ yi a v LL dD y _ y :ra~° O c U C N O d Si, Z NLL d Z O rn LL O U d V LL O d F d N J.. a m o C o d d o c m d c r m yd N LL 6 N N = O U d~-OI J Jy . T s U❑ J c -1 V/ ' a rn Q y 0 0 0 o c Q d r t d 0 h n u d t>> >c°> m d m md~ O I -U R < o d IT LL i m Page 113 of 126 R O f a d % N LL N R y N d Q C d O O1 C ~ O y J ~ R E v m m F' c7 `m ~ N J ~ O;! v- c °1 c nR ' 10 '-y N^ v O x c o rLL N O O J C d: N d N ~ y Vw; N C C= ~ N ` ~ LL b' d N d d 'Q y a o. ~ RLL .Q R U to 1 IV I mi N : I~ I lo;: N'. ~I I M o IN W: IN N, 1 I p 'W ~ 101 a I rl m IMi ~ O ' i V l I vi m Nt I m ' N V' O a o d d °1 R v o 0 C Z ti m C m c H R I N d d 0 y d y d y O ~ y C d C y U U O U= J .L d 'I. m d p~ C y d C R C 'O R d C -O R d Q W R y j O T y d y E Q 75 RI w Q1 d 01 N A A d V J • d N 9 C~ C~ f f O W ' N D W > X SLL J LL J C LL~ p C LL7 ' LL O I Page 114 of 126 a_ o. i N,! £ N"1 N1 0! 3N R fl N LL rni rn G 0 N ~ VI C `a p C C d ~ d C ~ C ~ ~ C A C C 0 C b Y U N C N C N X N X O O f Page 115 of 126 Supplement to the Annual Report of Community Redevelopment Agencies Redevelopment Ag ency ID Number: /.31q-9 33////00 Name of Redevelo mentAgency: 1-ake sinore ~eo ~o xne 11 V Mark the appropriate box below to indicate the ending date of your agency's fiscal year. Report data for that period only. r September 2009 r December 2009 F June 2010 Return this form to the California State Controller's Office. If you have any questions regarding this form please contact: U.S. Bureau of the Census, Shannon Doyle, 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. Zoo $ -0- B. Mortgage Revenue Bond Interest Payments Report your government's total amount of interest paid on mortgage revenue bonds during the year. uao $ a? 31-16, o0 US Bureau of the Census - Revised 6/2010 Page 116 of 126 RDA Reporting System - Agency Information California Department of Housing and Community Development Redevelopment Agency Reporting System Agency Information You are Here: Sele"c.LYear > Schedule Menu > Agency Information << Previous Page Agency:LAKE ELSINORE Fiscal Year :2009/2010 Prepared by: James Riley • Admin • select Please use this form to provide current information about LAKE ELSINORE Year • FAQ Address: 130 S. Main St. - • User Info City Hall • Status - City: Lake Elsinore • Print County: RIVERSIDE • Logout State: CA Zip: 92530 Telephone: (951)674-3124 Extension: 212 Fax: (951)471-0052 E-Mail:. riley@lake-elsinore.org Description:' Preparer: James Riley,CPA - Dir, Adm Srvc t7pdate Redevelopment Agency Reporting System - Agency Information California Department of Housing and Community Development Page I of I W' p Page 117 of 126 https://ssw2.hed.ca.gov/RDA/editAgencyInfo.jsp N 9 c LL o m _C N ~ O 0 O = N d } 0 0 R ~ d M R m9 £K d 0 E p o ' Z C p N - m W a3aw 0 a J U Y E0 of 0 E ,a a v ~s yam m c O EU J2 R i U Q O O a` 0 .0 D) W N O ~ _ R u m V W r N M O 0 O d) G N O F- O aS t~ 19 r M t9 M y y O E E M o 0 O 0 0 0 ° ~ w vi ui ~ c N A O O O 'y Nw W H f9 ay K ~ a c x m o e e uF~ ~ 'O a e `m `o u o .M- d OM ~ U a c ' ao M m 0 a ~~o v ~ N C x U O1 m O eD ~ ~ M N M J r d S a _ ~ y y ~ O N O O O 'O O p ~ d a w 0 N 'O N O 000 a O N O N N Q G N ' N r O h ~ in w w m c d _a L ~ O vs O us O w ° N E E ~y 0 a x W M E2 e M ° y N O O O M 0 U O ' +f N d a rn uMi o « y a E N M < ~ N 7 d r M O N N C N j w M p o . a N C d m O x f M m m o a m n `o E m rn a0 v ~ gyp' O N ~ N o. w w w c ~ J C_ 0 a d N Li « ` a t- a U ~ N M T d d a a a c 0 ` Z IL a a a Q a M .N.- 0 a m a Page 118 of 126 California Redevelopment Agencies- Fiscal Year 200912010 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Agency LAKE ELSINORE Address 130 S. Main St. City Hall Lake Elsinore CA 92530 Project Area AREA 1 Inside Project Area Type: Status: Active - _ Plan Adoption: 1980 Plan Expiration Yea r: 2022 Amount Gross Tax Calculated Amount Amount Suspended Total 0/6 Cumulative Increment De osit Allocated Exempted and/or Deferred Deposited Def. $6,823,488 $1,364,698 $1,364,698 $0 $1,286,250 $78,448 1.15% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $78,448 ~roject Area AREA 2 - - - - - TYPe: Inside Project Area Status: Active Plan Adoption: 1983 Plan Expiration Year: 2024 Amount Gross Tax Calculated Amount Amount Suspended Total 0/6 Cumulative Increment Deposit Allocated Exempted and/or Deferred Deposited Def. $10,146,765 $2,029,353 $2,029,353 $0 $1,912,500 $116,853 1.15% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $116,853 Page 1 of 2 12/30/10 Page 119 of 126 California Redevelopment Agencies- Fiscal Year 200912010 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Project Area AREA 3 - Inside Project Area Status: Active Plan Adoption: 1987 Plan Expiration Year: 2028 Amount Gross Tax Calculated Amount Amount Suspended Total % Cumulative Increment Deposit Allocated Exempted and/or Deferred Deposited Def. $2,906,801 $581,360 $581,360 $0 $551,250 $30,110 1.04% $0 Repayment $0 - Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $30,110 Agency Totals For All Project Areas: Amount Gross Tax Calculated Amount Amount Suspended Cumulative Increment Deposit Allocated Exempted and/or Deferred Total % Deposited Def. $19,877,054 $3,975,410.8 $3,975,411 $0 $3,750,000 $225,411 1% $0 Total Additional Revenue from Project Areas: $0 Total Deferral Repayments: $0 Total Deposit to Housing Fund from Project Areas: $225,411 Page 2 of 2 12/30/10 Page 120 of 126 0 r O N N O C o ~ N LL A O } N d E H d j N U i0 of d L O Z d q L J O) ~ LL W Q'O TW acg ~YQ Q C m O N Q d;U z-~ I`0~ _N N C d w f7 R U ~ C m d N c ~O 3 V Z O W d uac v j E •y vi U Od N C ~ U d d C C a d ~ E A • ~ m d ~ N E ~ ~ C O Of wm n M V M N N V O O a N n N CIO N O 0 Q r0~ LL U. O N t N Q OOH x~ LL a ~a a 3 m Z w d > Q N d m N c 10- a X w W r 0 r m N w n aMo ri 0 N v N 0 r r w d ~ T 3 N O C ~p m« 0 QOLL' m N y 0 O. ~ d Q U a ~ a N N N en O d C U C j C {0 Q m m Ol tM+l N O a u N "O J d d d a O i « i > I 0 a i d m i 0 U C a` d « d N c 0 c d d O. N a C A J C 0 a d V N L C CL d O Z 0 0 M r O d rn d a Page 121 of 126 California Redevelopment Agencies - Fiscal Year 2009/2010 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail LAKE ELSINORE Beginning Balance $9,492,408 Adjustment to Beginning Balance $3,609,931 Adjusted Beginning Balance $13,102,339 Total Tax Increment From PA(s) $225,411 Total Receipts from PA(s) $225,411 Other Revenues not reported on Schedule A $16,506,291 Sum of Beginning Balance and Revenues $29,834,041 upc~ muw e Item Subitem Amount Remark Debt Service Debt Issuance Costs $2,173,803 Debt Principal Payments Tax Allocation, Bonds & Notes $440,450 Interest Expense $731,062 Subtotal of Debt Service $3,345,315 Other $13,347,778 Payment to refunding bond escrow agent: 13,228,136; Discount on bonds: 119,642 Subtotal of Other $13,347,778 Planning and Administration Costs Administration Costs $87,918 Other $9,082 Miscellaneous: 9,082 Professional Services $3,000 Subtotal of Planning and Administration Costs $100,000 Property Acquisition Land Purchases $6,496 Other $930,615 Project Cost: Pottery Court Preliminary Fees Subtotal of Property Acquisition $937,111 Page 1 of 3 12/30/10 Page 122 of 126 California Redevelopment Agencies - Fiscal Year 2009/2010 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail LAKE ELSINORE Expenditure Item Subitem Amount Remark Total Expenditures $17,730,204 Net Resources Available $12,103,837 Indebtedness For Setasides Deferred $0 Category RAF Total Receivable of Land Purchased with Housing Funds Total Other Housing Fund Assets Amount Remark $3,750,000 $19,502,375 Advances to Other Funds: 18,040,439; Debt Service: 1, $2,714,687 $25,967,062 Total Fund Equity $38,070,899 2005/2006 $3700056 200612007 $4222509 sum of 4 Previous Years' Prior Year Ending Excess Surplus for 2007/2008 $5296873 Tax Increment for 200912010 Unencumbered Balance 2009/2010 200812009 $4705482 $17924920 $9,180,971 $0 Sum of Current and 3 Previous Years' Tax Increments $14,450,275 Adjusted Balance $4,553,437 Excess Surplus for next year $0 Net Resources Available $12,103,837 Unencumbered Designated $4,553,437 Unencumbered Undesignated $0 Total Encumbrances $7,550,400 Unencumbered Balance $4,553,437 Unencumbered Balance Adjusted for Debt Proceeds $0 Unencumbered Balance Adjusted for Land Sales $0 Excess Surplus Expenditure Plan No Excess Surplus Plan Adoption Date Page 2 of 3 12/30/10 Page 123 of 126 California Redevelopment Agencies - Fiscal Year 200912010 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail LAKE ELSINORE Site Improvement Activities Benefiting Households Income Level Low Very Low Moderate Total Construction 0 0 0 0 Rehabilitation 0 0 0 0 Health and Safety Hazard 0 0 0 0 Land Held for Future Development Site Name Num Of Zoning Purchase Estimated Acres Date Start Date Remark Use of the Housing Fund to Assist Mortgagors Income Adjustment Factors Requirements Completed Home $ Hope $ Non Housing Redevelopment Funds Usage Resource Needs LMIHF Deposits/Withdrawls Document Document Custodian Custodian COPY Name Date Name Phone Source Description Page 3 of 3 12130/10 Page 124 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY EXHIBIT A List of Lake Elsinore Redevelopment Agency Owned Parcels As of June 30, 2010 APN STREET SUFFIX DIR HOUSE NO ACRE SUB NAME 374072028 VACANT LOT 0 0.05 HEALDS RESUB 374072030 VACANT LOT 0 0.07 HEALDS RESUB 374072032 VACANT LOT 0 0.07 HEALDS RESUB 374072034 VACANT LOT 0 0.07 HEALDS RESUB 374072036 VACANT LOT 0 0.12 HEALDS RESUB 374062020 VACANT LOT 0 0.51 HEALDS RESUB 374062005 VACANT LOT 0 0.00 HEALDS RESUB 374062006 VACANT LOT 0 0.00 HEALDS RESUB 374062015 SPRING ST N 401 0.51 HEALDS RESUB 374162039 VACANT LOT 0 0.11 HEALDS RESUB 374162041 VACANT LOT 0 0.11 HEALDS RESUB 374162043 VACANT LOT 0 0.10 HEALDS RESUB 374162045 VACANT LOT 0 0.10 HEALDS RESUB 374162047 VACANT LOT 0 0.10 HEALDS RESUB 374162049 VACANT LOT 0 0.10 HEALDS RESUB 377292017 ELLIS ST 284 0.21 SMITHS ADD TO ELSINORE 374162051 VACANT LOT 0 0.11 HEALDS RESUB 374162036 VACANT LOT 0 0.53 HEALDS RESUB 374162053 VACANT LOT 0 0.11 HEALDS RESUB 374162055 VACANT LOT 0 0.11 HEALDS RESUB 374162057 VACANT LOT 0 0.11 HEALDS RESUB 374162059 VACANT LOT 0 0.12 HEALDS RESUB 374162061 VACANT LOT 0 0.12 HEALDS RESUB 373025006 FRANKLIN ST E 120 0.00 JONES ADD TO ELSINORE 373025007 VACANT LOT 0 0.17 JONES ADD TO ELSINORE 374174015 PECK ST W 114 0.00 TOWN OF ELSINORE 374174014 VACANT LOT 0 0.00 TOWN OF ELSINORE 374262003 GRAHAM AVE W 118 0.00 TOWN OF ELSINORE 374262010 VACANT LOT 0 0.00 TOWN OF ELSINORE 373300027 LAKESHORE DR E 420 2.64 RESUB OF BLK D OF ELSINORE 373210032 VACANT LOT 0 2.37 RESUB OF BLK D OF ELSINORE 373210030 VACANT LOT 0 7.26 RESUB OF BLK D OF ELSINORE 373210042 VACANT LOT 0 4.60 PM 27852 373210040 VACANT LOT 0 14.46 PM 27852 371030026 VACANT LOT 0 5.07 RESUB OF BLK D OF ELSINORE 371030024 VACANT LOT 0 0.14 RESUB OF BLK D OF ELSINORE 371030022 VACANT LOT 0 0.07 PM 27852 371030021 VACANT LOT 0 13.76 PM 27852 370020011 VACANT LOT 0 10.00 PM 27852 370020009 VACANT LOT 0 58.85 PM 27852 370020010 VACANT LOT 0 21.58 RESUB OF BLK D OF ELSINORE 377180037 VACANT LOT 0 2.15 SILVER & MENTHORN RILEY ST STREET VACATION 0 0.73 RILEY STREET 374072018 VACANT LOT 0 0.08 HEALDS RESUB 374072020 VACANT LOT 0 0.07 HEALDS RESUB 374072022 VACANT LOT 0 0.07 HEALDS RESUB 374071011 VACANT LOT 0 0.21 HEALDS RESUB 374071012 VACANT LOT 0 0.21 HEALDS RESUB 374071013 VACANT LOT 0 0.21 HEALDS RESUB 374071014 RILEY ST N 307 0.21 HEALDS RESUB 374071007 VACANT LOT 0 0.21 HEALDS RESUB P:ICAFR 09-101RDAUst of RDA Owned Properties 6-30-10.xis,1213012010,JRR Page 125 of 126 LAKE ELSINORE REDEVELOPMENT AGENCY EXHIBIT A List of Lake Elsinore Redevelopment Agency Owned Parcels As of June 30, 2010 374071005 LANGSTAFF ST N 312 0.21 HEALDS RESUB 374071006 VACANT LOT 0 0.21 HEALDS RESUB 374071010 VACANT LOT 0 0.21 HEALDS RESUB 374071003 VACANT LOT 0 0.21 HEALDS RESUB 374071004 VACANT LOT 0 0.20 HEALDS RESUB 374071026 VACANT LOT 0 0.20 HEALDS RESUB 374071027 VACANT LOT 0 0.20 HEALDS RESUB 374071008 RILEY ST N 323 0.21 HEALDS RESUS 374071009 RILEY ST N 317 0.21 HEALDS RESUB 373023011 VACANT LOT 0 JONES ADD TO ELSINORE 373023012 VACANT LOT 0 JONES ADD TO ELSINORE 375293029 VACANT LOT 0 0.12 CLUSTER OF 21 AND 22 375293030 VACANT LOT 0 0.14 CLUSTER OF 21 AND 22 375321029 VACANT LOT 0 0.06 CLUSTER OF 23 - 27 375321030 VACANT LOT 0 0.06 CLUSTER OF 23 - 27 375321031 VACANT LOT 0 0.05 CLUSTER OF 23 - 27 375321032 VACANT LOT 0 0.06 CLUSTER OF 23 - 27 375321033 VACANT LOT 0 0.05 CLUSTER OF 23 - 27 3742622011 PARKING 0 0.04 PARKING DOWNTOWN CLUSTER 40-41 3742622012 PARKING 0 0.09 PARKING DOWNTOWN CLUSTER 40-41 P.,ICAFR 09-101ROAlist of RDA Owned Properties 6-30-10.xls, 1213012010,JRR Page 126 of 126