Health and Safety Code Section requires the Successor Agency to submit

Transcription

1 RESLUTIN N A RESLUTIN F THE VERSIGHT BARD F THE SUCCESSR AGENCY T THE YUCAIPA REDEVELPMENT AGENCY ACKNWLEDGING THE RECEIPT F THE REVIEW F THE LW AND MDERATE INCME HUSING FUND CNDUCTED PURSUANT T HEALTH AND SAFETY CDE SECTIN RECITALS: A. Pursuant to Health and Safety Code Section 34175( b) and the California Supree Court' s decision in California Redevelopent Association, et al. v. Ana Matosantos, et al. 53 CalAth 231( 2011)), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipent of the forer Yucaipa Redevelopent Agency transferred to the control of the Successor Agency to the Yucaipa Redevelopent Agency ( the " Successor Agency ") by operation of law. B. Health and Safety Code Section requires the Successor Agency to eploy a licensed accountant, approved by the County Auditor - Controller, to conduct a Due Diligence Review to deterine the unobligated balances available for transfer to taxing entities. C. Health and Safety Code Section requires the Successor Agency to subit the results of the review conducted pursuant to Section for the Low and Moderate Incoe Housing Fund ( the " LMIHF ") and specifically the aount of cash and cash equivalents deterined to be available for allocation to taxing entities ( the " Due Diligence Review ") to the Successor Agency' s versight Board ( the " versight Board ") for the versight Board' s review and approval. D. Pursuant to Health and Safety Code Sections and ), the Successor Agency subitted to the versight Board, the County Adinistrative fficer, the County Auditor- Controller, the State Controller and the Departent of Finance ( " DF ") the Due Diligence Review and a copy of the Recognized bligation Payent Schedule ( "RPS "). E. Pursuant to Health and Safety Code Section ( b), upon receipt of the Due Diligence Review, and at least five business days before the versight Board considers the approval of the Due Diligence Review, the versight Board ust hold a public coent session the " Public Coent Session ") at which tie the public has an opportunity to hear and be heard on the results of the Due Diligence Review and at which tie the versight Board considers the opinions, if any, offered by the County Auditor - Controller on the results of the Due Diligence Review. F. n the date of this Resolution, the versight Board will hold the Public Coent Session pursuant to Health and Safety Code Section ( b) \ v1. doc 16-

2 NW, THEREFRE, THE VERSIGHT BARD F THE SUCCESSR AGENCY T THE YUCAIPA REDEVELPMENT AGENCY HEREBY FINDS, DETERMINES, RESLVES, AND RDERS AS FLLWS: Resolution. Section 1. The above recitals are true and correct and are a substantive part of this Review. Section 2. The versight Board hereby acknowledges receipt of the Due Diligence Section 3. The staff and the Board of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they ay dee necessary or advisable to effectuate this Resolution. PASSED AND ADPTED this day of M, n, Chair ATTEST: \ v1. doc 2-17-

3 Independent Accountants' Report on Applying Agreed -Upon Procedures City of Yucaipa Successor Agency to the Yucaipa Redevelopent Agency Yucaipa, CA We have perfored the required agreed -upon procedures ( AUP) to the Low and Moderate Incoe Housing Fund, enuerated in Attachent A, which were agreed to by the California State Controller's ffice, and the State of California Departent of Finance ( State Agencies) solely to assist you in coplying with the requireents described in AB Manageent of the Successor Agency is responsible for the accounting records pertaining to copliance with the applicable requireents of AB This agreed -upon procedures engageent was conducted in accordance with attestation standards established by the Aerican Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we ake no representation regarding the sufficiency of the procedures described in Attachent A either for the purpose. for which this report has been requested or for any other purpose. The scope of this engageent was liited to perforing the iniu required agreed -upon procedures as set forth in Attachent A. Attachent A identifies the findings noted as a result of the procedures perfored. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion on the accounting records and appropriateness of the results suarized in Attachent A. Accordingly, we do not express such an opinion. Had we perfored additional procedures, other atters ight have coe to our attention that would have been reported to you. This report is intended solely for the inforation and use of the applicable State Agencies and the City of Yucaipa, and is not intended to be, and should not be used by anyone other than these specified parties. This restriction is not intended to liit distribution ofthis report, which is a atter ofpublic record D21 Fr Corr- 491a4112 PPELIMINARY & TENTATIVE for DISCUSSIN PURI' 03P30NLY

4 Attachent A List of Procedures for Due Diligence Review City ofyucaipa (Successor Agency) General inforation regarding these procedures: The procedures associated with Sections ( c)( 1) through ( c)( 3) and Sections ( c)(5) through ( c)( 6) are to be applied separately to ( a) the Low and Moderate Incoe Housing Fund of the Successor Agency and to ( b) all other funds of the Successor Agency cobined ( excluding the Low and Moderate Incoe Housing Fund) The due date for the report associated with the Low and Moderate Incoe Housing Fund is ctober 1, The due date for the report associated with all other funds of the Successor Agency cobined ( excluding the Low and Moderate Incoe Housing Fund) is Deceber 15, Because the procedures required by Section ( e)( 4) pertain to the Successor Agency as a whole, these procedures should be addressed in the report that is' due on Deceber 15, Fiscal year references below refer to fiscal years ending on June 30. This language should be odified for those agencies that have a different fiscal year -end. For purposes of the procedures below and the related exhibits, the aount of the assets presented should be based upon generally accepted accounting principles ( GAAP), unless otherwise noted. To the extent the procedures listed below are duplicative to the agreed upon procedures that were perfored pursuant to HSC ( a)( 1), it is acceptable to obtain and use inforation fro the HSC ( a)( 1) procedures for purposes of this due diligence review without having to re- perfor the procedures. When this is done, the due diligence report should refer to the report that was issued for the agreed upon procedures perfored under HSC a)( 1) Certain assets ay qualify as a deduction under ore than one category of deduction. In such cases, care should be taken to ensure that such assets have been included as a deduction in the suary schedule only once. Citation: (c)( 1) The dollar value of assets transferred fro the,forrner redevelopent agency to the successor agency on or about February 1, DRAFT CPY 9l. n2 PRELIMINARY S WNTAMF a, nice issinu rnsrc n>n v

5 Suggested Procedure( s): 1. btain fro the Successor Agency a listing of all assets that were transferred fro the forer redevelopent agency to the Successor Agency on February 1, Agree the aounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed -Upon Procedures ( AUP) report the aount of the assets transferred to the Successor Agency as of that date. Results: We obtained an excel spreadsheet fro the Successor Agency which listed cash of $ being transferred to the Successor Agency on February 1, We agreed this aount to the Successor Agency's January_ 31, 2012 G/L Trial Balance Report for the RDA - Low Incoe Housing Fund (Fund 81). No other assets were reported as transferred. However, the City of Yucaipa, through Resolution No , established the Yucaipa Housing Authority on February 28, in the joint City Council/Housing Authority Board eeting on January 30, 2012, the City Council of Yucaipa, as the Successor Agency of the Yucaipa Redevelopent Agency, adopted Resolution No , electing to transfer all rights, responsibilities and assets of the Yucaipa RDA's Low and Moderate Incoe Housing fund to the Yucaipa Housing Authority. As of February 1, 2012, no balances had been transferred to the Housing. Authority. Citation: ( c)( 2) The dollar value of assets and cash and cash equivalents transferred after January 1, 2011, through June 30, 2012, by the redevelopent agency or -the successor agency to the city, county, or city and county that fored the redevelopent agency and the purpose of each transfer. The review shall provide docuentation of any enforceable obligation that required the transfer. Suggested Procedure(s): 2. If the State Controller' s ffice has copleted its review of transfers required under both Sections and and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perfor the following procedures: A. btain a listing prepared by the Successor Agency of transfers ( excluding payents for goods and services) fro the forer redevelopent agency to the city, county, or city and county that fored the redevelopent agency for the period fro January 1, 2011 through January 31, For' each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency' s enforceable obligations or other legal requireents. Provide this listing as an attachent to the AUP report. B. btain a listing prepared by the Successor Agency of transfers ( excluding payents for goods and services) fro the Successor Agency to the city, county, or city and county that fored the redevelopent agency for the period fro February 1, DRAFT CPIV : PRELIMINARY & TENTATIVE r nrcri resinwnn+nsrc nuiv

6 Results: through June 30, For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency' s enforceable obligations or other legal requireents. Provide this listing as an attachent to the AUP report. C. For each transfer, obtain the legal docuent that fored the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal docuent or the absence of language in the docuent that required the transfer. 2. A. The attached listing provided by the Successor Agency lists a transfer of $642,000 to the City of Yucaipa, for the above period. The transfer was for land related to the Affordable Housing Agreeent described below, for the Senior Housing project. See further explanation below. 2. B. and C The Successor Agency provided the attached listing of transfers between February 1, 2012 through June 30, The only transfer listed was for a payent of Developer Ipact Fees for Senior Housing of $266, 164, based on an Affordable Housing Agreeent with Yucaipa Blvd., L.P. ( Developer), dated Noveber 8, The Affordable Housing Agreeent does not include specific language requiring the use of Low and Moderate Incoe Housing funds for payent of the above Developer Ipact Fees. However, the staff report provided to the City Council/Redevelopent Agency Board on Noveber 8, 2010, in which eeting the Affordable Housing Agreeent was approved, described the use of $2,304,311 in Housing Set Aside funds, including the purchase of the applicable property and $ 734,311 for payent of the project's Developent Ipact and Application Fees. No other legal docuentation to foa the basis for the enforceable obligation was provided. The Successor Agency also provided the attached letter fro the State Departent of Finance, dated August 31, 2012, regarding review of the Housing Assets Transfer For for the period offebruary 1, 2012 through August 1, Citation: ( c)( 3) The dollar value of any cash or cash equivalents transferred after.january 1, 2011, through June 30, 2012, by the redevelopent agency or the successor agency to any other public agency or private party and the purpose of each transfer. The review shall provide docuentation ofany enforceable obligation that required the transfer, Suggested Procedure( s): 3. If the State Controller' s ffice has copleted its review of transfers required under both Sections and and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perfor the following procedures: 21- DRAFT CPY -4alu PRELIMINARI" & 7ENT.4TIVEE ui@esl'

7 A. btain a listing prepared by the Successor Agency of transfers ( excluding payents for goods and services) [ fro the forer redevelopent agency to any other public agency or to private parties for the period fro January 1, 2011 through January 31, For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency' s enforceable obligations or other legal requireents. Provide this listing as an attachent to the AUP report. Results: B. btain a listing prepared by the Successor Agency of transfers ( excluding payents for goods and services) [ fro the Successor Agency to any other public agency or private parties for the period fro February 1, 2012 through June 30, For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency' s enforceable obligations or other legal requireents. Provide this listing as an attachent to the AUP report. C. For each transfer, obtain the legal docuent that fored the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal docuent or the absence of language in the docuent that required the transfer. 3. A. and C. The Successor Agency provided the attached listing of transfers to other public agencies or private parties, for the period fro January 1, 2011 through January 31, 2012, which lists total payents of $961, 136 to a private party based on the Affordable Housing Agreeent described in Step 2, above. The purpose of the payents was to provide the Developer with funds to develop an affordable senior housing project. The use of Low and Moderate Incoe Housing funds for this purpose was not specifically included in the Affordable Housing Agreeent, but it was included in the staff report to the City Council/Redevelopent Agency Board as described above ( Step 2.). 3. A No such transfers were reported. Citation: 341?9. S( c)( 4) The revieiv shall provide expenditure and revenue accounting inforination and identify transfers and funding sources for the and fiscal years that reconciles balances, assets, and liabilities of'th.e successor agency oil June 30, 2012 to those reported to the Controllerfor the fiscal year. Suggested Procedure(s): 4. Perfor the following procedures: A. btain fro the Successor Agency a suary of the financial transactions of the Redevelopent Agency and the Successor Agency in the forat set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this suary, the financial transactions should be presented using the odified accrual basis of accounting. End of year balances for capital assets ( in total) and long -ter DRIPT CPY ' PRELIMIINAR)' E TENT.471VE 1n, DISCI I & SInN P111-1FS N, Y

8 liabilities ( in total) should be presented at the botto of this suary schedule for inforation purposes. B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers accounts fully for the changes in equity fro the previous fiscal period. C. Copare aounts in the schedule relevant to the fiscal year ended June 30, 2010 to the state controller' s report filed for the Redevelopent Agency for that period. D. Copare aounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. Results: These procedures are not applicable to the Low and Moderate Incoe Housing Fund. Citation: ( c)( 5) A separate accounting for the balance j6r the Low and Moderate Incoe Housing Fundfor all otherfsnds and accounts cobined shall be ade as, follows: A) A stateent of the total value ofeachfund cis ofjune 30, Suggested Procedure( s): 5. btain fro the Successor Agency a listing of all assets of the Low and Moderate Incoe Housing Fund as of June 30, 2012 for the report that is due ctober 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 excluding the previously reported assets of the Low and Moderate Incoe Housing Fund) for the report that is due Deceber 15, When this procedure is applied to the Low and Moderate Incoe Housing Fund, the schedule attached as an exhibit will include only those assets of the Low and Moderate Incoe Housing Fund that were held by the Successor Agency as of June 30, 2012 and wiu exclude all assets held by the entity that assued the housing function previously perfored by the forer redevelopent agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. The listings should be attached as an exhibit to the appropriate AUP report. Results: The attached G/L Trial Balance Report provided by the Successor Agency shows cash of 50, reaining in the RDA -Low incoe Housing Fund ( Fund 81) as of June 30, There are no other assets reported in the Low and Moderate Incoe Housing Fund. 23- DRAFT CPY J PRELIMIN & Y s TENTATIVE for DISCUSSIN PURPSE' NLY

9 Citation: (c) ( 5)( B) An iteized stateent listing any aounts that are legally restricted as to purpose and cannot be provided to taxing entities. This could include the proceeds of any bonds, grant.funds, or,funds provided by other governental entities thatplace conditions on their use. Suggested Procedure(s): 6. btain fro the Successor Agency a listing of asset balances held on June 30, 2012 that are restricted for the following purposes: A. Unspent bond proceeds: L btain the Successor Agency' s coputation of the restricted balances ( e.g., total proceeds less eligible project expenditures, aounts set aside for debt service payents, etc.) ii. Trace individual coponents of this coputation to related account balances in the accounting records, or to other supporting docuentation ( specify in the AUP report a description of such docuentation). iii. btain fro the Successor Agency a copy of the legal docuent that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. B. Grant proceeds and progra incoe that are restricted by third parties: i. btain the Successor Agency' s coputation of the restricted balances ( e.g., total proceeds less eligible project expenditures). I Trace individual coponents of this coputation to related account balances in the accounting records, or to other supporting docuentation (specify in the AUP report a description of such docuentation). iii. btain fro the Successor Agency a copy of the grant agreeent that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. C. ther assets considered to be legally restricted: i. btain the Successor Agency' s coputation of the restricted balances ( e. g., total proceeds less eligible project expenditures). ii. Trace individual coponents of this coputation to related account balances in the accounting records, or to other supporting docuentation (specify in the AUP report a description of such docuentation). iii. btain fro the Successor Agency a copy ofthe legal docuent that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of 24- A/ UFP CPY - 09 /2J?? PRELIMINARY S 7FNrATIVE

10 Results: language restricting the use of the balances that were identified by Successor the Agency as restricted. D. Attach the above entioned Successor Agency prepared schedule(s) as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of tie for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. No restrictions regarding the above were provided by the Successor Agency for the asset balances held on June 30, 2012 in-the Low and Moderate Incoe Housing Fund. Citation: (c)( 5)( C) An iteized stateent of the values ofany assets that are not cash or cash equivalents. This ay include phy =sical assets, land, records, and equipent. For the purpose of this accounting, physical assets ay be valued at purchase cost or at any recently estiated arket value. The stateent shall list separately housing- related assets. Suggested Procedure(s): 7. Perfor the following procedures: Results: A. btain fro the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or otherwise available for distribution ( such as capital assets, land held for resale, long -ter receivables, etc.) and ascertain if the values are listed at either purchase cost ( based on book value reflected in the accounting records of the Successor Agency) or arket value as recently estiated by the Successor Agency. B. If the assets listed at 7(A) are listed at purchase cost, trace the aounts to a previously audited financial stateent ( or to the accounting records of the Successor Agency) and note any differences. C. For any differences noted in 7( B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions ( this generally is not expected to occur), inspect the supporting docuentation and note the circustances. D. If the assets listed at 7( A) are listed at recently estiated arket value, inspect the evidence ( if any) supporting the value and note the ethodology used. If no evidence is available to support the value and \or ethodology, note the lack of evidence. There were no assets described above to be reported by the Successor Agency as of June 30, Therefore, the Successor Agency did not provide any such listing. 25- DRAFTCP - 4IY /W /13 PRELMMARY S TEHFATAT r,,. n cn iccinu nncrs n.n v

11 Citation: (c)( 5)(D) An iteized listing ofany current balances that are legally or contractually dedicated or restrictedfor the funding ofan enforceable obligation that identifies the nature of the dedication or restriction and the specific enforceable obligation. In addition, the successor agency shall provide a listing ofall approved enforceable obligations that includes a projection of annual spending requireents to satisfy each obligation and a projection of annual revenues available to fund those requireents. If a review finds that future revenues together with dedicated or restricted. balances are insufficient to fund future obligations and thus retention ofcurrent balances is required, it shall identify the aount ofcurrent balances necessaryfor retention. The review shall also detail the projected property tax revenues and other general purpose revenues to be received by the successor agency; together with both the aount and tiing of the bond debt service payents of the successor agency, for the period in which the oversight board anticipates the successor agency will have insufficient property tax revenue to pay the specified obligations. Suggested Procedure(s): 8. Perfor the following procedures: A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain fro the Successor Agency an iteized schedule of asset balances ( resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and perfor the following procedures. The schedule should identify the aount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal docuent that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payent of that obligation. L Copare all inforation on the schedule to the legal docuents that for the basis for the dedication or restriction of the resource balance in question. ii. Copare all current balances to the aounts reported in the accounting records of the Successor Agency or to an alternative coputation, iii. Copare the specified enforceable obligations to those that were included in the final Recognized bligation Payent Schedule approved by the California Departent of Finance. iv. Attach as an exhibit to the report the listing obtained fro the Successor Agency. Identify in the report any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal docuent associated with the enforceable obligation. Results: The Successor Agency did not provide a schedule described above, for asset balances as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations N1 DRAFTCPY- 9P fiunafrp b I I

12 Therefore, the above procedures are not applicable for the Low and Moderate Incoe Housing Fund. B. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fluid future obligation payents and thus retention of current balances is required, obtain fro the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requireents to satisfy each obligation and a projection of the annual revenues available to fund those requireents and perfor the following procedures: i. Copare the enforceable obligations to those that were approved by the California Departent_ of Finance. Procedures to accoplish this ay include reviewing the letter fro the California Departent of Finance approving the Recognized Enforceable bligation Payent Schedules for the six onth period fro January 1, 2012 through June 30, 2012 and for the six onth period July 1, 2012 through Deceber 31, ii. Copare the forecasted annual spending requireents to the legal docuent supporting each enforceable obligation. a. btain fro the Successor Agency its assuptions relating to the forecasted annual spending requireents and disclose in the report ajor assuptions associated with the projections. iii. For the forecasted annual revenues: a. btain fro the Successor Agency its assuptions for the forecasted annual revenues and disclose in the report ajor assuptions associated with the projections. Results, The Successor Agency did not provide a schedule of approved enforceable obligations described above. Therefore the above procedures are not applicable to the Low and Moderate Incoe Housing Fund, C. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payents ( considering both the tiing and aount of the related cash flows), obtain fro the Successor Agency a schedule deonstrating this insufficiency and apply the following procedures to the inforation reflected in that schedule. i. Copare the tiing and aounts of bond debt service payents to the related bond debt service schedules in the bond agreeent. ii. btain the assuptions for the forecasted property tax revenues and disclose ajor assuptions associated with the projections. iii. btain the assuptions for the forecasted other general purpose revenues and disclose ajor assuptions associated with the projections. G 27- D2lFT CPY PRELINUNARY & TENTAUVE x DISCUSSIN PUIU`SES NLY

13 Results: The Successor Agency did not provide the schedule described above. Therefore, the above procedures do not apply to the Low and Moderate Incoe Housing Fund. D. If procedures A, B, or C were perfored, calculate the aount of current unrestricted balances necessary for retention in order to eet the enforceable obligations by perforing the following procedures. i. Cobine the aount of identified current dedicated or restricted balances and the aount of forecasted annual revenues to arrive at the aount of total resources available to fund enforceable obligations. ii. Reduce the aount of-total resources available by the aount forecasted for the annual spending requireents. A negative result indicates the aount of current unrestricted balances that needs to be retained. iii. Include the calculation in the AUP report. Results: Not applicable - no procedures perfored for A, B or C above. Citation: (c)( 5)( E) An iteized list and analysis of any ainounts of current balances that are needed to satisfy obligations that ivill be placed on the Recognized bligation Payent Schedulesfor the currentfiscal year. Suggested Procedure(s): 9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be retained to satisfy obligations on the Recognized bligation Payent Schedule (BPS) for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final RPS for the period of July 1, 2012-through Deceber 31, 2012 and a copy of the final RPS for the period January 1, 2013 through ' June 30, For each obligation listed on the RPS, the Successor Agency should add coluns identifying ( 1) any dollar aounts of existing cash that are needed to satisfy that obligation and ( 2) the Successor Agency' s explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachent to the AUP report. Results: We obtained the ost current RPS for the periods July 1, 2012 through Deceber 31, 2012 and January 1, 2013 through June 30, See Attachent B, provided by the Successor Agency, for the obligation, aount of existing cash needed and -the Successor Agency's reason for the need DR4FT CPY - 4) 9/ PRELIMINARY & TENP.kTAT f., DISCUSSIN PURMSES NLI'

14 Citation: (c)( 6) The review shall total the net balances available after deducting the total aounts described in subparagraphs ( B) to ( E), inclusive, ofparagraph ( 5). The review shall add any aounts that were transferred as identified in paragraphs (2) and (3) of subdivision c) ifan enforceable obligation to ake that transfer did not exist. The resulting su shall be available for allocation to affected taxing entities pursuant to Section It shall be a rebuttable presuption that cash and cash equivalent balances available to the successor agency are available and sufficient to disburse the aount deterined in this paragraph to taxing entities. If the review finds that there are insufficient cash balances to transfer or that cash or cash equivalents are specifically obligated to the purposes described in subparagraphs ( B), ( D), and (E) ofparagraph ( 5) in such aounts that there is insufficient cash to provide the full aount deterined pursuant to this paragraph, that aount shall be deonstrated in an additional iteized schedule. Suggested Procedure( s): 10. Include ( or present) a schedule detailing the coputation of the Balance Available for Allocation to Affected Taxing Entities. Aounts included in the calculation should agree to the results of the procedures perfored in each section above. The schedule should also include a deduction to recognize aounts already paid to the County Auditor - Controller on July 12, 2012 as directed by the California Departent of Finance. The aount of this deduction presented should be agreed to evidence of payent. The attached exaple suary schedule ay be considered for this purpose. Separate schedules should be copleted for the Low and Moderate Incoe Housing Fund and for all other funds cobined ( excluding the Low and Moderate Incoe Housing Fund), Results. See attached schedule. Suggested Procedure(s): 11. btain a representation letter fro Successor Agency anageent acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachents to the report. Included in the representations should be an acknowledgent that anageent is not aware of any transfers ( as defined by Section ) fro either the forer redevelopent agency or the Successor Agency to other parties for the period fro January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. Manageent' s refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. Results: The required representation letter fro the Successor Agency anageent was obtained. We verified the letter included the provisions described above DRAFT CPY- 091: 411: PREI.IMIN.U:)' S TFNTATR E

15 Yucaipa Redevelopent Agency Low /Moderate incoe Housing Fund Schedule of Transfers H& S ( c)( 1) Transfers: n or about 2/ 1/ 12 to Successor Agency Date of Transfer Asset Description Asset Value Legal Docuent Enforceable bligation? 2/ 1/ 2012 RDA Dissolution 325, H & S ( c)( 2) Transfers: Between 1/ 1/ 11 and 1/ 31/ 12 to the City Date of Transfer Asset Description Asset Value Legal Docuent Enforceable bligation? 6/ 14/ 2011 Senior Housing land 642, Affordable Housing Agreeent Date of Transfers: Between 2/ 1/ 12 and 6/ 30/ 12 to the City Transfer Asset Description Asset Value Legal Docuent Enforceable bligation? 6/ 30/ 2012 Senior Housing DIF Pt $ 266, Affordable Housing Agreeent n RPS 1 H & S ( c)( 3) Date of Transfers: Between 1/ 1/ 11 and 6/ 30/ 12 to any other public agency Transfer Asset Description Asset Value Legal Docuent Enforceable bligation? 9/ 30/ 2011 Senior Housing Payent 961, Affordable Housing Agreeent 30- nraft core - 491: 1112 P12ELIt,SW.V: 1' TPNTATIVE

16 a1 g r1t Q A, A n^ W 1111 z DEPARTMENT F r' RIS1p1tN P i N A i` C E EDMUND G. BRWN JR. GVERNR 81 5 L STREET 0 sament A WWW. gf. oa. opv August 31, 2012 Mr. Gregory A. Franklin, Director of Adinistrative Services City of Yucaipa Yucaipa Blvd, Yucaipa, CA Dear Mr. Franklin: Subject: Housing Assets Transfer For Pursuant to Health and Safety Code (HSC) section (a) ( 2), the City of Yucaipa Housing Authority Agency (Agency) subitted a Housing Assets Transfer For ( For) to the California Departent of Finance (Finance) on August 1, 2012 for the period February 1, 2012 through August 1, HSC section (e) defines a housing asset. Assets transferred deeed not to be a housing asset shall be returned to the successor agency. Finance has copleted its review of your For, which ay have included obtaining clarification for various ites. Based on a saple of line ites reviewed and the application of law, Finance is objecting to Exhibit C, Ite 1 Affordable Housing Rental Mobile Hoe. The Agency could not provide sufficient docuentation to support the encubrance. Except for the ite disallowed as noted above, Finance is not objecting to the reaining ites, if any, listed on your For. If you disagree with our deterination with respect to any ites on the For, you ay request a Meet and Confer within five business days of receiving this letter. Please direct inquiries to Nichelle Thoas, Supervisor or Wendy Griffe, Lead Analyst at 916) Sincerely,, STEVE SZALAY Local Governent Consultant i cc: n following page 31- DR4FT CPY /13 PRELMINARY S TENTATIVE for UISCUSSIN PURPSES NLY

17 Mr. Gregory A. Franklin August 31, 2012 Page 2 Mr. Paul Tooey, Planning Manager, City of Yucaipa Mr. Larry Walker, Auditor Controller, San Bernardino County Ms. Vanessa Doyle, Property Tax Manager, San Bernardino County Ms. Linda Santillano, Supervising Accountant, San Bernardino County Ms. Franciliza Zyss, Accountant III, San Bernardino County Mr. Albert Alean, San Bernardino County Ms. Ashley Schwenk, San Beardino County California State Controllers ffice 32- DRAFT CPT' - (191: 41) 3 PRELIMINAkY & IENTATR'E DISCUSSIN PURVSES NLY

18 w 4 W an w ID cn r U n' n D a 4 0 X CQ o0 0 fl 3 a N w) D N C C-i fa WN M a N Nto DI 3 LA, w M a N q N _ a M C E a w y NI 0 T 71 N D j rr r yd. oy W c T NA N Diny i t7 3 D 1 Q U1 g fp o Q D j y 0. n y j 2 3 vco D x0cy U3 a Q Q NN o o cr cr NN oo v, v, to to o o rn rn rn ww o twp twd N N J Q j N co o o CA o o I j o 01 W 0 N c n n W ( A nn W N N o w o 0 o w cn o b> D o o a o 0 0 w o 0 o o N N W o o w ca0 rr yy c c = dd gg IM IM VV XX ww NN NN W W W A N V j CA W GN71 I A CIl o W pd a) C V 4 w N CN1I W A A n N N Nh o V CD 4 N D 7V V N W A E! N N A(, 7 J J V A A W W W w D N N W W Li cd W j7 A N V W D N N Vwi V D 0 V V 0 coo N D 0 N 4 W N.. D N co A W N DD S q w N P 30 o 0 o c tg w I ono cwo o N V togi pl od Va0 V ww rr DRAFT DRAFT CPY- CPY- l9iw11: l9iw11: PRELIMINARY 7' 7' EN EN f. f. 4TIN' 4TIN' EE DISCUSSIN DISCUSSIN PURPSPS PURPSPS NLY NLY l, l,

19 Attachent B City of Yucaipa Successor Agency to the Yucaipa Redevelopent Agency Housing Assets as of June 30, 2012 Total Housing Assets as of June 30, 2012 Cash or Cash Equivalent - $ 50,000 s Non Cash or Cash Equivalent - Total Assets as of June 30, 2012 $ 50,000 i Total aount necessary to cover the costs of the Housing Project Adinistration Consultant, approved as an Enforceable bligation by the Departent of Finance with BPS # 1. Ite is repeated on RPS # 2 and RPS 3. No future funding sources are anticipated, rendering the aount as of June 30, 2012, necessary in order to sufficiently cover the anticipated costs of the Housing Project Adinistration Consultant during fiscal year Housing Project Adinistration Consultant is responsible to carry out the covenants articulated in the Senior Housing Agreeent and other duties as necessary. 34- D2lPP CPY PRELIMINARY & IENTATIVE for DISCUSSIN PURPSES NLY

20 11 II n ar ar rr rr rr rr NN 00 ( ( DD NN tro A ( D tro A ( D G. G. CArn ww vv vi vi NN N CD cn w ti o r- CD CD a a ID ID 00 pp nn to to CD CD 00 nn 11 r r {{:: 04" 04" p p v. v. rt rt CE CE i i '' rt rt rwi rwi WW a a `- `- oo an an aa rc rc ^ ^ ss ra ra co co L3 L3 " " lot lot qq CC NN to to tt GG cu cu nn cu cu NN N N ' ' p p.... ca ca rh rh oarn oa rn w CD CD C CD A CD h y A p g V 0 0 n Q CD o a cu o o o cu y 64 aa hh ` ` ` q q ' ' p, o c u p, o c u o o j- ' " ^ '' Ed Ed CS CS CC RR CC WW * * ho QQ L. L. vv yy yy NN aa a' a' co co oo o o NN CC ii tt HH zz yy utatau HH rij rij zz 0 Ln Ln LA LA DR4F' DR4F' ff CPT' CPT' " 41" A' A' I, RELIMINARY RELIMINARY SS TFJJT. TFJJT. 4TIVE 4TIVE for for DISCUSSIN DISCUSSIN PURPSES PURPSES NLY NLY

21 RESLUTIN N A RESLUTIN F THE VERSIGHT BARD FR THE SUCCESSR AGENCY T THE YUCAIPA REDEVELPMENT AGENCY APPRVING A RECGNIZED BLIGATIN PAYMENT SCHEDULE FR THE SIX -MNTH FISCAL PERID FRM JANUARY 1, 2013 THRUGH JUNE 30, 2013, AND TAKING CERTAIN RELATED ACTINS RECITALS: A. Pursuant to Health and Safety Code Section 34177( 1), the Successor Agency to the Yucaipa Redevelopent Agency ( the " Successor Agency ") ust prepare a proposed Recognized bligation Payent Schedule ( " RPS ") before each six -onth fiscal period coencing each January 1 and July 1) and subit each proposed RPS to the versight Board for the Successor Agency (the " versight Board ") for approval. B. Pursuant to Health and Safety Code Section 34177(1)( 2)( C) and ( ), the Successor Agency ust ( 1) subit the versight Board - approved RPS for the six -onth fiscal period fro January 1, 2013 through June 30, 2013 ( " RPS No. 3 "), to the DF, the ffice of the State Controller, and the County Auditor - Controller no later than Septeber 1, 2012; and ( 2) post a copy of the versight Board - approved RPS No. 3 on the Successor Agency' s website. NW, THEREFRE, THE VERSIGHT BARD FR THE SUCCESSR AGENCY T THE YUCAIPA REDEVELPMENT AGENCY, HEREBY FINDS, DETERMINES, RESLVES, AND RDERS AS FLLWS: Resolution. Section 1. The above recitals are true and correct and are a substantive part of this Section 2. The versight Board hereby approves proposed RPS No. 3, substantially in the for attached hereto as Exhibit A. Staff of the Successor Agency is hereby authorized and directed to subit a copy of versight Board - approved RPS No. 3 to the DF, the ffice of the State Controller, and the County Auditor - Controller and to post a copy of the versight Board - approved RPS No. 3 on the Successor Agency' s Internet website ( being a page on the Internet website of the City ofyucaipa). Section 3. The versight Board hereby designates the Director of Adinistrative Services, as the official designated to who DF ay ake a request for review in connection with actions taken by the versight Board. Section 4. The officers of the versight Board and the staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they ay dee necessary or advisable to effectuate this Resolution, including requesting additional review by the DF and an opportunity to eet and confer on any disputed ites, and any such actions previously taken by such officers and staff are hereby ratified and confired. ST01

22 PASSED, APPRVED AND ADPTED this 28h day of August, ATTEST: C AIR SECRET 37-

23 110 v SUCCESSR AGENCY T THE YUCAIPA REDEVELPMENT AGENCY RECGNIZED BLIGATIN PAYMENT SCHEDULE January 1, 2013 through June 30, 2013) 51.11

24 Exhibit A SUMMARY F RECGNIZED BLIGATIN PAYMENT SCHEDULE Filed for the January 1, 2013 to June 30, 2013 Period Nae of Successor Agency: W. L Total utstanding Debt or bligation utstanding Debt or bligation Current Period utstanding Debtor bligation Six- Month Total A 6 C D E F Available Revenues ther Than Anticipated RPTTF Funding Anticipated Enforceable bligations Funded with RPTTF Anticipated Adinistrative Allowance Funded with RPTTF Total RPTTF Funded ( B + C = D) Told Current Period utstanding Debt or bligation (A + B 4 C = E) sh be Sae aaw a3 RDPS f si o War Enter Total Six- Month Anticipated RPTTF Funding (obtain fro couwy Variance ( D - E = F) Maxiu WrTF Altowabir should not exceed Total Anticipated RP7TF Funding Prior Period JJanuary 1, 2012 through June 30, 2012) Estiated vs. Actual Payents ( as required in HSC section (3)) G K 1 i K Enter Estiated bligations Funded by RPTTF (Sh. Wb. be latseroffi, '. approvedrpnf aount kh.%q adm aftwancearthe ad" faount ) Enter Actual bligations Paid with RPTTF Enter Actual Adinistrative Expenses Paid with RPTTF Adjustent to Redevelopeni bligation Retireent Fund ( G - ( H + 1) = J) Adjustent to RPTTF 1, 218,210 1, 765, , I Cerfificati Cerfificati of of versight versight Board Board Chairan: Chairan: Denise Denise Work Work Chairperson Chairperson Pursuant Pursuant to to Section Section 34177( 34177( ) ) of of the the Health Health and and Safety Safety code, code, Nae Nae Thie Thie hereby hereby certify certify that that the the above above is is aa true true and and accurate accurate Recognized Recognized bligation bligation Payent Payent Schedule Schedule rorthe rorthe above above noad noad agency. agency IL IL Signature Signature Date Date

25 Nae of Successor Agency, County, versight Board Approval Date: Exhibit A Ite # Project Nae / Debt bligation Contract/Agreeent Execution Date Contract/Agreeent Terination Date Payee Description/Project Scope Project Area Total utstanding Debt or bligation Total Due During Fiscal Year LMIHF Bond Proceeds Reserve Balance Funding Source Grand.T p _:- - -:...:.:.:: :_: _._ ;;.. _ : ;487, : 3 :',:: = 2; Adin Allowance RPTTF ther Six -Month Total Tax Allocation Bonds 4127/ 1998 Union Bank Bonds issue to fund non - housing projects AN Areas 485, , , ,857, Tax Allocation Bonds W4 Union Bank Bonds Issue to fund non-housing ro' cts All Areas 1, 895, , i r :63, Tax Allocation Bonds 10/ 11/ 2010 Union Bank Bonds issue to fund non4xnang projects All Areas 5,945, , , ,835.o 4 TAB Trustee Services Union Bank TAB Trustee Services All Areas 6, , D.00 3, Professional Services 2/ 2/ /30/ 2013 Widan Financial Bond Disclosure Services Ail Areas 6,00D.DD 6, , ;000:00' 6 Professional Services D8 Tearnan Rairez & Sith Audit Services All Areas 7, , , "750:00: 7 Agency Counsel Stradling, Yocca, Carlson Agency Counsel All Areas 12, , , Agency Counsel Richards Watson Gershon Agency Counsel AN Areas 60,000,00 60,D ,000,00 9 Agency Developent Consultant Various Counity Developent Consultant Ali Areas 38, ,360,00 19, x00'.` 10 versight ColBee Meetings Various versight Coittee Expenditures AD Arras 10, , iproveent Agreeents Various FaFade Iproveent Progra AN Areas 60,000,00 60, , ; Direct Adinistration Costs Eployees of Agency/Consultant Housing Project Adinistration Ail Areas 50, , , Dp Direct Adinistration Costs Eployees of Agency Staff and Adin Costs for projects AN Areas 187, , ,00 46;980:x': 14 Eployee Costs Eployees of Agency Payroll for eployees AV Areas 137, 945,00 137, , ; Eployee Costs Ci of Yuca s verhead AAocatron Ail Areas 112, , Contract for Construction 3/ 1/ 2011 Hillcrest Construction of Uptown Streetscape Al Areas 145, , , Iternrunderreviewby Departentof Finance - Appealfiled by Successor A ency on 5/ 17/ 12 and a ain on 7/ 25/12 and discussed with DF staff on AN ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay e expended on ites for which the bonds were orginati issued Sorenson Participation Agreeent 6/ 27/2011 Various Wilson Creek/ Dunlap Area Iproveents- Ipleentation of PA with Sorenson Engineering Wilson Creek 1 Dunlap Area Iproveents - Ipleentation of 23 Sorenson Participation Agreeent 6/ 27/2011 Various PA with Sorenson Engineering Sternberg Lighting / Prudential 24 Contract for Lighting Fixtures Ughting Li htin Fixtures for Uptown Project (See Notes) Project perating Costs Contract for Landscaping Installation Landscaping Ipvents) Reaining City 27 of Yuca a Loan Contract for Roundabout AK / City f Yucaipa Loan P Roundabout Art 1 Reaining City of Yucaipa Loan Various Three Peaks! City of Yucaipa Ci of Yucaipa Aaron Eby! City of Yucaipa City of Yucaipa 30 City of Yucaipa Loan City of Yucaipa Project Costs/ resting/survey required to coplete Uptown Streetscape Project (See Notes Landscaping Installation for Uptown Project ( See Notes) Loan for Uptown Streetscape Project ( rota) Loan: $ 443, ) See Notes) Art Installation for lagfotnia St Roundabout ( See Notes Loan for Art Installation at 2nd St Roundabout (Total Loan: 350,000) (See Notes) Loan Including allocation to coplete Uptown Streetscape Project, ( See Notes ) All Areas All A Areas All Areas AD Areas All Areas Ali Areas All Areas All Areas 752, , , ;497_00" 1, 000, , 000, , , , , ;000:00' 187, , , , , , , , , , i' 1$7,480i00 269; :000.00: 142;000:00 208;000:00 150, , ,000.00:

26 Nae of Successor Agency, County: San Bea di n. r o: - RECGNIZED BLIGATIN PAYMENT SCHEDULE (BPS Itl) o Notes (ptional) Ite # Notes /Coents 16 Includes final retention payent. Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/ 17/ 12 and again on 7125/ 12 and discussed with DF staff on 8/ 20/ 12. wner Participation Agreeent executed prior to RDA dissolution, 22 Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5117/ 12 and again on 7/25/ 12 and discussed with DF staff on 8120/ 12. wner Participation Agreeent executed prior to RDA dissolution. 23 Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/17/12 and again on 7125/12 and discussed with DF staff on 8/20/ 12. All ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay be 24 expended on ites for which the bonds were orginally issued. ( Uptown Streetscape Project copletion coponent) Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/17/ 12 and again on 7/25/12 and discussed with DF staff on 8/ All ites below are resubitted - pursuant to AB 1484 which indicates that bond proceeds ay be expended on ites for which the bonds were orginally issued. ( Uptown Streetscape Project copletion coponent) Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/ 17/ 12 and again on 7/25/ 12 and discussed with DF staff on 8120/ 12. All ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay be expended on ites for which the bonds were orginally issued. (Uptown Streetscape Project copletion coponent) Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/ and again on 7125/ 12 and discussed with DF staff on 8/20/ 12. All ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay be expended on ites for which the bonds were orginally issued. ( Uptown Streetscape Project copletion coponent) Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/17/ 12 and again on 7/25/ 12 and discussed with DF staff on 8/20/12. All ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay be expended on ites for which the bonds were orginally issued. (Uptown Streetscape Project copletion coponent) Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5/ 17/ 12 and again on and discussed with DF staff on 8/ All ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay be expended on ites for which the bonds were orginally issued. ( Uptown Streetscape Project copletion coponent) Ites under review by Departent of Finance - Appeal filed by Successor Agency on 5117/ 12 and again on 7/25/12 and discussed with DF staff on 8/20/12. All ites below are resubitted pursuant to AB 1484 which indicates that bond proceeds ay be expended on ites for which the bonds were orginally issued. (Uptown Streetscape Project copletion coponent) The Successor A enc intends to initiate repayent of loans ade fro the City's General Fund with the suittal of BPS #4 as peras 9484 subject to the rowth in Assessed Valuation reflected within the forer project Area. 41-

27 Nae of Successor Agency: County: Cif111021Pa San `- Pursuant to Health and Safety Code section (a) PRIR PERID ESTIMATED BLIGATINS vs. ACTUAL PAYMENTS RECGNIZED BLIGATIN PAYMENT SCHEDULE PRPS n Exhibit A