RECOGNIZED OBLIGATION PAYMENT SCHEDULE - CONSOLIDATED FILED FOR THE Jan 1, 2012 to June 30, 2012 PERIOD

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2 RECOGNIZED OBLIGATION PAYMENT SCHEDULE - CONSOLIDATED FILED FOR THE Jan 1, 2012 to June 30, 2012 PERIOD Name of Successor Agency: Town of Los Gatos Current Total Outstanding Debt or Obligation Total Due During Fiscal Year Outstanding Debt or Obligation Note B $ 2,250, Total Due for Six Month Period Outstanding Debt or Obligation $ 2,250, Available Revenues other than anticipated funding from RPTTF $ - Enforceable Obligations paid with RPTTF $ 2,250, Note A Administrative Cost paid with RPTTF $ 125, Pass-through Payments paid with RPTTF Note C Administrative Allowance (greater of 5% of anticipated Funding from RPTTF or 250,000. Note: Calculation should not include pass-through payments made with RPTTF. The RPTTF Administrative Cost figure above should not exceed this Administrative Cost Allowance figure) $ Note A 125, Note A: The Administrative Allowance budget is subject to the approval of the Oversight Board. Note B: This amount was provided by the Successor Agency and will be certified after completion of a review of the assets and liabilities. Note C: This amount was provided by the Successor Agency and has not been varified by the Auditor Controller. The Pass-through Payments are paid directly by the County Auditor Controller Office. Certification of Oversight Board Chairman: Pursuant to Section 34177(l) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Name Title Enforceable Payment Schedule for the above named agency. Signature Date

3 Name of Successor Agency: Town of Los Gatos FORM A - Redevelopment Property Tax Trust Fund (RPTTF) Project Area(s) RDA Project Area All DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section (*) Note B Payable from the Redevelopment Property Tax Trust Fund (RPTTF) Contract/Agreement Total Due During *** Total Outstanding Fiscal Year Funding Payments by month Project Name / Debt Obligation Execution Date Payee Description Project Area Debt or Obligation ** Source Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total 1992 COP Reimbursement 8/1/1992 U. S Bank Reimbursement 1) Agreement 252,000 $ 126, RPTTF 21, , , , , , $ 126, COP Reimbursement 7/1/2002 The BNY Mellon Trust Reimbursement 2) Co, N.A. Agreement 14,146,321 $ 204, RPTTF 204, $ 204, COP Reimbursement 6/1/10 The BNY Mellon Trust Reimbursement 3) Co, N.A. Agreement 22,228,150 $ 313, RPTTF 313, $ 313, COP Arbitrage Rebate Calculation 6/1/10 BLX (BondLogistix) Arbitrage Calculation 4) every 5 years 8,000 $ 1, RPTTF 1, $ 1, Housing Maintenance 8/22/11 Santa Clara County Arg Maintenance on 20 5) & Envir Mgmt Dittos & 224 W. Main 18,532 $ RPTTF $ RDA Cooperative Agreement 1/22/90 Town of Los Gatos Repayment of Town 6) Advances 1,587,500 $ 1,500, RPTTF 1,500, $ 1,500, Contract for Consulting Services 2/7/11 Goldfarb/Lipman + Attorney services 7) Jones Hall 95,000 $ 4, RPTTF 4, $ 4, ) Contract for Consulting Services 1/18/12 Seifel Consulting RDA Fiscal Analysis 1,497 $ 1, RPTTF 1, $ 1, Employee Salary & Benefits 7/1/11 Employee Salary & Town Employees Staffing 9) Benefits the RDA 818,730 $ 22, RPTTF 22, $ 22, Completion of Library Project N/A Contractor Completion of Library 10) (Miscellaneous) Project 600,000 $ 76, RPTTF/Other 76, $ 76, Totals - This Page (RPTTF Funding) $ 44,024, $ 2,250, N/A $ 1,625, $ 539, $ 22, $ 21, $ 21, $ 21, $ 2,250, Totals - Page 2 (Other Funding) $ - $ - N/A $ - $ - $ - $ - $ - $ - $ - Totals - Page 3 (Administrative Cost Allowance) Note A $ 4,511, $ 125, N/A $ - $ - $ - $ - $ - $ 125, $ 125, Totals - Page 4 (Pass Thru Payments) Note C $ 104,905, $ 4,727, N/A $ - $ - $ - $ - $ - $ 4,727, $ 4,727, Grand total - All Pages $ 48,536, $ 2,375, $ 1,625, $ 539, $ 22, $ 21, $ 21, $ 146, $ 7,102, * The Preliminary Draft Recognized Obligation Payment Schedule (ROPS) is to be completed by 3/1/2012 by the successor agency, and subsequently be approved by the oversight board before the final ROPS is submitted to the State Controller and State Department of Finance by April 15, It is not a requirement that the Agreed Upon Procedures Audit be completed before submitting the final Oversight Approved ROPS to the State Controller and State Department of Finance. ** All totals due during fiscal year and payment amounts are projected. *** Funding sources from the successor agency: (For fiscal only, references to RPTTF could also mean tax increment allocated to the Agency prior to February 1, 2012.) RPTTF - Redevelopment Property Tax Trust Fund Bonds - Bond proceedsother - reserves, rents, interest earnings, etc LMIHF - Low and Moderate Income Housing Fund Admin - Successor Agency Administrative Allowance Note A: The Administrative Allowance budget is subject to the approval of the Oversight Board. Note B: This amount was provided by the Successor Agency and will be certified after completion of a review of the assets and liabilities. Note C: This amount was provided by the Successor Agency and has not been varified by the Auditor Controller. The Pass-through Payments are paid directly by the County Auditor Controller Office.

4 Name of Successor Agency: Town of Los Gatos FORM B - All Revenue Sources Other Than Redevelopment Property Tax Trust Fund (RPTTF) Project Area(s) RDA Project Area All DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section (*) Payable from Other Revenue Sources Contract/Agreement Total Due During Total Outstanding Fiscal Year Funding Payments by month Project Name / Debt Obligation Execution Date Payee Description Project Area Debt or Obligation ** Source *** Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total N/A Totals - LMIHF $0.00 Totals - Bond Proceeds $0.00 Totals - Other $ - $ - $ - $ - $ - $ - $ - $ - $0.00 Grand total - This Page $ - $ - $ - $ - $ - $ - $ - $ - $ - * The Preliminary Draft Recognized Obligation Payment Schedule (ROPS) is to be completed by 3/1/2012 by the successor agency, and subsequently be approved by the oversight board before the final ROPS is submitted to the State Controller and State Department of Finance by April 15, It is not a requirement that the Agreed Upon Procedures Audit be completed before submitting the final Oversight Approved ROPS to the State Controller and State Department of Finance. ** All total due during fiscal year and payment amounts are projected. *** Funding sources from the successor agency: (For fiscal only, references to RPTTF could also mean tax increment allocated to the Agency prior to February 1, 2012.) RPTTF - Redevelopment Property Tax Trust Fund Bonds - Bond proceeds Other - reserves, rents, interest earnings, etc LMIHF - Low and Moderate Income Housing Fund Admin - Successor Agency Administrative Allowance

5 Name of Successor Agency: Town of Los Gatos FORM C - Administrative Cost Allowance Paid With Redevelopment Property Tax Tr Project Area(s) RDA Project Area All DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section (*) Note B Note A Payable from the Administrative Allowance Allocation **** Total Due During Payments by month Note D Total Outstanding Fiscal Year Funding Project Name / Debt Obligation Payee Description Project Area Debt or Obligation ** Source ** Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total 1) Contract for Consulting Services Town Auditor RDA Final Audit thru February 3,800 $ 3, , $ 3, Goldfarb/Lipman + Jones Attorney services 2) Contract for Consulting Services Hall - $ 38, , $ 38, ) Administrative Expenses Various RDA Operating Expenditures 12,800 $ $ Successor Agency Admin Costs - Successor Agency Minimum established by Statute 4) Statutory 4,250,000 $ 250, , $ 250, Successor Agency Admin Costs - Successor Agency Staff and Administrative Expenses 5) Budget 125,062 $ 125, , $ 125, Implementation of Dissolution Town Employees Implementation of RDA 6) Activities Dissolution 116,420 $ 116, , $ 116, ) Oversight Board Meetings Successor Agency Meeting Expenses 3, , , $ 1, Totals - This Page $ 4,511, $ 534, $ - $ - $ - $ - $ - $ 534, $534, Note A $ 125, * The Preliminary Draft Recognized Obligation Payment Schedule (ROPS) is to be completed by 3/1/2012 by the successor agency, and subsequently be approved by the oversight board before the final ROPS is submitted to the State Controller and State Department of Finance by April 15, It is not a requirement that the Agreed Upon Procedures Audit be completed before submitting the final Oversight Approved ROPS to the State Controller and State Department of Finance. ** All total due during fiscal year and payment amounts are projected. *** Funding sources from the successor agency: (For fiscal only, references to RPTTF could also mean tax increment allocated to the Agency prior to February 1, 2012.) RPTTF - Redevelopment Property Tax Trust Fund Bonds - Bond proceeds Other - reserves, rents, interest earnings, etc LMIHF - Low and Moderate Income Housing Fund Admin - Successor Agency Administrative Allowance **** - Administrative Cost Allowance caps are 5% of Form A 6-month totals in and 3% of Form A 6-month totals in The calculation should not factor in pass through payments paid for with RPTTF in Form D. Note A: The Administrative Allowance budget is subject to the approval of the Oversight Board. Note B: This amount was provided by the Successor Agency and will be certified after completion of a review of the assets and liabilities. Note D: This amount was provided by the Successor Agency and has not been verified by the Auditor Controller.

6 Name of Successor Agency: Town of Los Gatos FORM D - Pass-Through Payments Project Area(s) RDA Project Area All OTHER OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section (*) Note C Note C Pass Through and Other Payments **** Total Due During Payments by month Note D Total Outstanding Fiscal Year Source of Project Name / Debt Obligation Payee Description Project Area Debt or Obligation ** Fund*** Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total RDA Low/Mod Housing 1) Property Tax Admin RDA Administration Property 2) Tax Admin 3) Pass Through Agreement 4) Pass Through Agreement 5) Pass Through Agreement Santa Clara County (SCC) Administrative Costs Santa Clara County (SCC) Administrative Costs Los Gatos Union School District H & S Code, Section Los Gatos-Saratoga Union High School District H & S Code, Section Midpeninsula Open Space District H & S Code, Section ) Pass Through Agreement Santa Clara County H & S Code, Section Santa Clara County Office 7) Pass Through Agreement of Education H & S Code, Section West Valley Mission 8) Pass Through Agreement College H & S Code, Section ) Election Amount Santa Clara County H & S Code Section ) Election Amount Los Gatos-Saratoga Union High School District H & S Code Section ) Election Amount Central Fire District H & S Code Section ) Election Amount Town of Los Gatos H & S Code Section Midpeninsula Open Space 13) Election Amount District H & S Code Section ,692 19, , $ 19, ,770 78, , $ 78, ,559,640 1,434, ,434, $ 1,434, ,120,823 1,139, ,139, $ 1,139, ,721 42, , $ 42, ,711, , , $ 967, ,782,465 60, , $ 60, ,150, , , $ 132, ,289, , , $ 274, ,072, , , $ 228, ,592, , , $ 172, ,211, , , $ 158, ,729 17, , $ 17, Totals - Other Obligations $ 104,905, $ 4,727, $ - $ - $ - $ - $ - $ - $ 4,727, $ 4,727, * The Preliminary Draft Recognized Obligation Payment Schedule (ROPS) is to be completed by 3/1/2012 by the successor agency, and subsequently be approved by the oversight board before the final ROPS is submitted to the State Controller and State Department of Finance by April 15, It is not a requirement that the Agreed Upon Procedures Audit be completed before submitting the final Oversight Approved ROPS to the State Controller and State Department of Finance. ** All total due during fiscal year and payment amounts are projected. *** Funding sources from the successor agency: (For fiscal only, references to RPTTF could also mean tax increment allocated to the Agency prior to February 1, 2012.) RPTTF - Redevelopment Property Tax Trust Fund Bonds - Bond proceeds Other - reserves, rents, interest earnings, etc LMIHF - Low and Moderate Income Housing Fund Admin - Successor Agency Administrative Allowance **** - Only the January through June 2012 ROPS should include expenditures for pass-through payments. Starting with the July through December 2012 ROPS, per HSC section (a) (1), the county auditor controller will make the required pass-through payments prior to transferring money into the successor agency's Redevelopment Obligation Retirement Fund for items listed in an oversight board approved ROPS. Note C: This amount was provided by the Successor Agency and has not been varified by the Auditor Controller. The Pass-through Payments are paid directly by the County Auditor Controller Office. Note D: This schedule includes County Auditor Controller administration fees as reported by Successor Agency.

7 April 10, 2012 Mr. Vinod Sharma Director of Finance County of Santa Clara 70 West Hedding Street San Jose, CA Dear Mr. Sharma: As requested by the Auditor-Controller of the County of Santa Clara, we have prepared a letter summarizing the preliminary results of our interim procedures performed to date related to the draft initial Recognized Obligation Payment Schedule (ROPS) of the Town of Los Gatos as successor agency (Town) to the Town of Los Gatos Redevelopment Agency. Our engagement started with an entrance conference on March 19, 2012 followed by approximately 3 days of fieldwork and concluded with an exit conference with the Town on April 9, 2012, where we discussed our preliminary findings related to the procedures performed. To the extent a legal determination was necessary for and reflected in the ROPS as certified by the Auditor-Controller, we defer to the opinion of the Office of the County Counsel for the County of Santa Clara. The results include: Schedule 1: A summary of the Auditor-Controller s certified ROPS for the period January 1, 2012 through June 30, 2012; Schedule 2: A Reconciliation of the Town s Draft ROPS and Auditor Controller s certified ROPS; Schedule 3: A certified ROPS payment detail for the relevant six-month period; Schedule 4: Observations noted including a description of the differences between the Town s Draft ROPS and the Auditor-Controller's certified ROPS; and Summary of Preliminary Findings Related to the Town of Los Gatos Draft Recognized Obligation Payment Schedule The Town submitted a total of forty-one (41) items on its Draft ROPS schedule amounting to total obligation payments of $10,875,117 for the period from January 1, 2012 to June 30, Six (6) items totaling $496,782 were classified and one (1) item of $38,074 was reclassified as administrative costs and excluded from the ROPS schedule due to the requirements of Health & Safety (H&S) Section 34171, which limits the amount of administrative expenses that are reimbursable from the Redevelopment Trust Fund, and can only be authorized by the oversight board. Thirteen (13) items were classified as pass-through obligations and other Auditor Controller responsibilities and, accordingly, were excluded from the ROPS schedule due to the requirements of Health & Safety (H&S) Section

8 Twenty-two (22) items totaling $5,651,306 are debt and contractual obligations that are the primary focus of this correspondence. The Town s Draft ROPS schedule identified ten (10) obligations that must be paid by the Town during the first six-month period January 1 June 30, These obligations amounted to $2,250,748. The Town provided us with documentation to support each item listed on its ROPS, with the exception of four (4) obligations that were estimates or property management costs but did not have any contracts in place. That is, it provided the source contracts for the eighteen (18) debt and contractual obligations as well as documentation classified as administrative obligations on the ROPS. However, some contracts that were provided by the Town to substantiate the ROPS did not contain the specific dollar amounts due during the initial six-month period of January 1 June 30, 2012, and the Town did not provide additional documentation to support the amounts due that were reported on its ROPS schedule. In these instances, we accepted the amounts due as they were submitted to the County s Director of Finance, since the amounts projected by Town staff were within the contract limits. Also, in some instances, the Contractual Obligations submitted by the Town are determined to be non-enforceable by the Office of County Counsel. This letter summarizes our preliminary observations related to the performance of agreed-upon procedures, which will be the basis for issuing our final report thereon. Such observations are subject to change as a result of our internal quality control process for the review of work and the report. Such observations are also subject to change based on additional information, which may be provided by the Town. Our agreed upon procedures report will report our final findings. This letter is intended solely for the information and use of the County s Director of Finance, and is not intended to be and should not be used by anyone other than this specified party. Walnut Creek, California

9 Town of Los Gatos Redevelopment Agency SCHEDULE 1 SUMMARY Certified Recognized Payment Obligations Schedule (ROPS) County of Santa Clara Auditor-Controller (Per AB 26 - Section 34177) Six-Month Item Project Name Certified Obligations No. or Debt Obligation Payee Payable (1/1/12-6/30/12) Section 1 - Debt Obligations COP Reimbursement U. S Bank 126, COP Reimbursement The BNY Mellon Trust Co, N.A. 204, COP Reimbursement The BNY Mellon Trust Co, N.A. 313, COP Arbitrage Rebate Calculation BLX (BondLogistix) 1,750 4 Subtotal Section 1 $ 645,883 Section 2 - Contracts 1 Housing Maintenance Santa Clara County Arg & Envir Mgmt 21 2 RDA Cooperative Agreement Town of Los Gatos 1,500,000 3 Contract for Consulting Services Goldfarb/Lipman + Jones Hall 4,290 4 Contract for Consulting Services Seifel Consulting 1,497 5 Employee Salary & Benefits Town Employees Staffing the RDA 22,442 6 Completion of Library Project Contractor (Miscellaneous) 76,615 6 Subtotal Section 2 $ 1,604, Grand Total ROPS $ 2,250,748 5 Percent Administrative Cost Limit $ 112,537 Section 3 - Administrative Costs - Not Certified Proposed Administrative Costs- Subject to separate Oversight Board Approval 1 Successor Agency Admin Costs Successor Agency 534,856 Less Administrative Costs in Excess of 5 Percent Limit or $125,000 (409,856) 1 Maximum Allowable Administrative Costs $ 125,000 Section 4 - Pass-Through Obligations and other Auditor Controller responsibilities - Not Certified Pass-through obligations to be paid directly by County from the RPTTF 1 RDA Low/Mod Housing Property Tax Admin Santa Clara County (SCC) 19,692 2 RDA Administration Property Tax Admin Santa Clara County (SCC) 78,770 3 Pass Through Agreement Los Gatos Union School District 1,434,313 4 Pass Through Agreement Los Gatos-Saratoga Union High School District 1,139,532 5 Pass Through Agreement Midpeninsula Open Space District 42,113 6 Pass Through Agreement Santa Clara County 967,976 7 Pass Through Agreement Santa Clara County Office of Education 60,796 8 Pass Through Agreement West Valley Mission College 132,582 9 Election Amount Santa Clara County 274, Election Amount Los Gatos-Saratoga Union High School District 228, Election Amount Central Fire District 172, Election Amount Town of Los Gatos 158, Election Amount Midpeninsula Open Space District 17, Total Section 4 $ 4,727,029 Notes: *1 As submitted by the City. These amounts will be subsequently adjusted by the Auditor-Controller and certified to equal the total obligation as of January 31, *2 Cancellable obligations are those that the Oversight Board has discretion to approve or disapprove.

10 Town of Los Gatos Redevelopment Agency SCHEDULE 2 RECONCILIATION OF DRAFT AND CERTIFIED RECOGNIZED OBLIGATION PAYMENT SCHEDULES County of Santa Clara Auditor-Controller (Per AB 26 - Section 34177) Town of Los Gatos Draft Recognized Obligation Payment Schedule Auditor Controller Exclusions Auditor-Controller Certification Total Total Reported FY Item ROPS Project Name Outstanding Source of Obligation Non-Payment/ Obligations Six-Month No. Item or Debt Obligation Payee Debt or of Payable Reclassifications Non-Enforceable w/o Financial Recognized Obligations Documentation No. Obligation*1 Payment 1/1/12-6/30/12 *2 Obligations*3 Documentation Jan 1 - Jun 30 Reference Section 1 - Debt Obligations COP Reimbursement U. S Bank 252,000 RPTTF 126, , COP Site Lease Town of Los Gatos 10 RPTTF COP Reimbursement The BNY Mellon Trust Co, N.A. 14,146,321 RPTTF 883, , , COP Site Lease Town of Los Gatos 1 RPTTF COP Reimbursement The BNY Mellon Trust Co, N.A. 22,228,150 RPTTF 1,577,238-1,263, , COP Site Lease Town of Los Gatos 1 RPTTF /2002/2010 COP Bank Service Fees COP Fiscal Agents 5,579 RPTTF COP Arbitrage Rebate Calculation BLX (BondLogistix) 10,000 RPTTF 2, , COP Arbitrage Rebate Calculation BLX (BondLogistix) 8,000 RPTTF Payments⁴ The BNY Mellon Trust Co, N.A. 3,243,456 RPTTF/Other Subtotal Section 1 $ 39,893,518 $ 2,589,104 $ - $ 1,943,221 $ - $ 645,883 Section 2 - Contracts 1 12 Contract for Consulting Services Dunbar/Craig Land Surveyors 4,320 RPTTF 4,320-4, Contract for Consulting Services ROEM Development Corp 94,665 RPTTF Contract for Consulting Services TJKM 13,321 RPTTF Housing Maintenance Mgmt 18,532 RPTTF RDA Cooperative Agreement Town of Los Gatos 1,587,500 RPTTF 1,500, ,500, Contract for Consulting Services Goldfarb/Lipman + Jones Hall 95,000 RPTTF 42,364 (38,074) 4, Economic Vitality Various (National Cinemeda) 35,000 RPTTF 35, , Contract for Consulting Services Seifel Consulting 1,497 RPTTF 1, , Employee Salary & Benefits Town Employees Staffing the RDA 818,730 RPTTF 23, , Contract for Consulting Services Urban Analytics, Inc. 12,000 RPTTF 6, , Completion of Pageant Project Contractor (Miscellaneous) 850,000 RPTTF/Other 850, , Completion of Library Project Contractor (Miscellaneous) 600,000 RPTTF/Other 600, ,385 76, Subtotal Section 2 $ 4,130,565 $ 3,062,202 $ (38,074) $ 4,320 $ 1,414,943 $ 1,604, Grand Total ROPS $ 44,024,083 $ 5,651,306 $ (38,074) $ 1,947,541 $ 1,414,943 $ 2,250,748 5 Percent Administrative Cost Limit $ 112,537 Proposed Administrative Costs - Subject to Section 3 - Administrative Costs - Not Certified separate Oversight Board Approval 1 11 Contract for Consulting Services Town Auditor 3,800 3, , Contract for Consulting Services Goldfarb/Lipman + Jones Hall , , Administrative Expenses Various 12, Successor Agency Admin Costs - Statutory Successor Agency 4,250, , , Successor Agency Admin Costs - Budget Successor Agency 125, , , Implementation of Dissolution Activities Town Employees 116, , , Oversight Board Meetings Successor Agency 3,900 1, , Subtotal Section 3 $ 4,511,982 $ 496,782 $ 38,074 $ - $ - $ 534,856 Less Administrative Costs in Excess of 5 Percent Limit (409,856) Maximum Allowable Administrative Costs $ 125,000

11 Town of Los Gatos Redevelopment Agency SCHEDULE 2 RECONCILIATION OF DRAFT AND CERTIFIED RECOGNIZED OBLIGATION PAYMENT SCHEDULES County of Santa Clara Auditor-Controller (Per AB 26 - Section 34177) Town of Los Gatos Draft Recognized Obligation Payment Schedule Auditor Controller Exclusions Auditor-Controller Certification Total Total Reported FY Item ROPS Project Name Outstanding Source of Obligation Non-Payment/ Obligations Six-Month No. Item or Debt Obligation Payee Debt or of Payable Reclassifications Non-Enforceable w/o Financial Recognized Obligations Documentation No. Obligation*1 Payment 1/1/12-6/30/12 *2 Obligations*3 Documentation Jan 1 - Jun 30 Reference Section 4 - Pass-Through Obligations and other Auditor Controller responsibilities - Not Certified 1 16 RDA Low/Mod Housing Property Tax Admin Santa Clara County (SCC) 19,692 19, , RDA Administration Property Tax Admin Santa Clara County (SCC) 78,770 78, , Pass Through Agreement Los Gatos Union School District 28,559,640 1,434, ,434, Pass Through Agreement Los Gatos-Saratoga Union High School District 23,120,823 1,139, ,139, Pass Through Agreement Midpeninsula Open Space District 838,721 42, , Pass Through Agreement Santa Clara County 24,711, , , Pass Through Agreement Santa Clara County Office of Education 1,782,465 60, , Pass Through Agreement West Valley Mission College 3,150, , , Election Amount Santa Clara County 7,289, , , Election Amount Los Gatos-Saratoga Union High School District 6,072, , , Election Amount Central Fire District 4,592, , , Election Amount Town of Los Gatos 4,211, , , Election Amount Midpeninsula Open Space District 475,729 17, , Total Section 4 $ 104,905,324 $ 4,727,029 $ - $ - $ - $ 4,727,029 Notes: *1 As submitted by the City. These amounts will be subsequently adjusted by the Auditor-Controller and certified to equal the total obligation as of January 31, *2 Classification errors include payment obligations such as legally required pass-through payments that will be made by the County Auditor-Controller pursuant to law. *3 Non-enforceable obligations are those that are specifically prohibited by law. Pass-through obligations to be paid directly by County from the RPTTF

12 Town of Los Gatos Redevelopment Agency RECOGNIZED OBLIGATION PAYMENT SCHEDULE SIX-MONTH PAYMENT DETAIL SCHEDULE 3 County of Santa Clara Auditor-Controller (Per AB 26 - Section 34177) Town of Los Gatos Draft Recognized Obligations Auditor-Controller Certification 2012 Total ROPS Monthly Payment Schedule January 1, 2012 to June 30, 2012 Item Project Name Obligation No. or Debt Obligation Payee Description Payable Jan Feb Mar Apr May Jun Jan 1-Jun 30 Section 1 - Debt Obligations COP Reimbursement U. S Bank Reimbursement Agreement 126,000 21,000 21,000 21,000 21,000 21,000 21, COP Reimbursement The BNY Mellon Trust Co, N.A. Reimbursement Agreement 204, , COP Reimbursement The BNY Mellon Trust Co, N.A. Reimbursement Agreement 313, , COP Arbitrage Rebate Calculation BLX (BondLogistix) Arbitrage Calculation every 5 years 1, , Subtotal Section 1 $ 645,883 $ 21,000 $ 539,133 $ 22,750 $ 21,000 $ 21,000 $ 21,000 Section 2 - Contracts Santa Clara County Arg & Envir Mgmt Maintenance on 20 Dittos & 224 W. Main Housing Maintenance 2 RDA Cooperative Agreement Town of Los Gatos Repayment of Town Advances 1,500,000 1,500,000 3 Contract for Consulting Services Goldfarb/Lipman + Jones Hall Attorney services 4,290 4,290 4 Contract for Consulting Services Seifel Consulting RDA Fiscal Analysis 1,497 1,497 5 Employee Salary & Benefits Town Employees Staffing the RDA Payroll for Employees 22,442 22,442 6 Completion of Library Project Contractor (Miscellaneous) Completion of Library Project 76,615 76,615 6 Subtotal Section 2 $ 1,604,865 $ 1,528,250 $ 76,615 $ - $ - $ - $ - 10 Grand Total ROPS $ 2,250,748 $ 1,549,250 $ 615,748 $ 22,750 $ 21,000 $ 21,000 $ 21,000 Section 3 - Administrative Costs - Not Certified 1 Successor Agency Admin Costs Successor Agency Staff and Administrative Expenses 125,000 1 Subtotal Section 3 $ 125,000 Section 4 - Pass-Through Obligations and other Auditor Controller responsibilities - Not Certified 1 RDA Low/Mod Housing Property Tax Admin Santa Clara County (SCC) Administrative Costs 19,692 2 Admin Santa Clara County (SCC) Administrative Costs 78,770 3 Pass Through Agreement Los Gatos Union School District H & S Code, Section ,434,313 4 Pass Through Agreement Los Gatos-Saratoga Union High School District H & S Code, Section ,139,532 5 Pass Through Agreement Midpeninsula Open Space District H & S Code, Section ,113 6 Pass Through Agreement Santa Clara Countyy H & S Code, Section ,976 7 Pass Through Agreement Education H & S Code, Section ,796 8 Pass Through Agreement West Valley Mission College H & S Code, Section ,582 9 Election Amount Santa Clara County H & S Code Section , Election Amount Los Gatos-Saratoga Union High School District H & S Code Section , Election Amount Central Fire District H & S Code Section , Election Amount Town of Los Gatos H & S Code Section , Election Amount Midpeninsula Open Space District H & S Code Section ,885 Proposed Administrative Costs - Subject to separate Oversight Board Approval Pass-Through Obligations and other Auditor Controller responsibilities will be paid directly by the County from the Redevelopment Property Tax Trust Fund (RPTTF) 13 Total Section 4 $ 4,727,029

13 Town of Los Gatos Redevelopment Agency Observations SCHEDULE 4 Schedule 2 Section Section Explanation This item constitutes an enforceable obligation pursuant to 34178(b)(1). This item does not belong on the ROPS. This item constitutes an enforceable obligation pursuant to 34178(b)(1). Payment was reduced by $679,146, which represents debt service due in August 2012 to be included in the next six months ROPS. This item does not belong on the ROPS. This item constitutes an enforceable obligation pursuant to 34178(b)(1). Payment was reduced by $1,263,825, which represents debt service due in August 2012 to be included in the next six months ROPS. This item does not belong on the ROPS. There are no payments scheduled between January 1 and June 30, Therefore, no funds are being certified during the January 1, 2012, through June, 30, 2012 fiscal period. This item constitutes an enforceable obligation pursuant to 34171(d)(1)(A). Payment was reduced by $250, which represents a one time fee that is not scheduled to be paid between January 1 and June 30, There are no payments scheduled between January 1 and June 30, Therefore, no funds are being certified during the January 1, 2012, through June, 30, 2012 fiscal period. There are no payments scheduled between January 1 and June 30, Therefore, no funds are being certified during the January 1, 2012, through June, 30, 2012 fiscal period. The contract provided was entered into by the Town and not the former redevelopment agency, therefore, this item is not an enforceable obligation of the former redevelopment agency. Additionally, under Health & Safety Code Section 34163, various actions taken on or after June 29, 2011, are not enforceable obligations. (Based on documentation provided, it appears that a proposal by the vendor was accepted on August 4, 2011.) Therefore, this item is not an enforceable obligation. There are no payments scheduled between January 1 and June 30, Therefore, no funds are being certified during the January 1, 2012, through June, 30, 2012 fiscal period. Additionally, the contract provided was entered into by the Town and not the former redevelopment agency, therefore, this item is not an enforceable obligation of the former redevelopment agency. There are no payments scheduled between January 1 and June 30, Therefore, no funds are being certified during the January 1, 2012, through June, 30, 2012 fiscal period. Additionally, the contract provided was entered into by the Town and not the former redevelopment agency, therefore, this item is not an enforceable obligation of the former redevelopment agency. This item constitutes an enforceable obligation. This item constitutes a payment with respect to a valid obligation. Under Health & Safety Code Sections 34171(d)(2) and 34178(a), as of February 1, 2012, agreements between cities and the redevelopment agencies they created (such as the Cooperation Agreement that forms the basis of this item) are invalid. However, the payment listed on the ROPS was made in January, 2012 and is therefore valid. January administrative costs are properly listed as enforceable obligation payments. Beginning on February 1, 2012, the remaining administrative costs in the amount of $38,074 have been reclassified to the Successor Agency Administrative Costs, which have certain statutory limitations and are subject to approval of the Oversight Board, see Section 3 below. An executed contract was not provided. Therefore the enforceability of this item could not be verified. This item constitutes an enforceable obligation. January administrative costs are properly listed as enforceable obligation payments. Therefore, the actual administrative costs in the amount of $22,442 incurred during January 2012 have been certified. Beginning on February 1, 2012 and under Health and Safety Code Section 34171(d)(2), agreements between the Town and former redevelopment agency are no longer valid.

14 Town of Los Gatos Redevelopment Agency Observations SCHEDULE 4 Schedule Section 3 All Section 4 All Explanation An executed contract was not provided. Therefore, the enforceability of this item could not be verified. An executed contract was not provided. Therefore, the enforceability of this item could not be verified. We were able to verify $76,615 in Library Project costs that were supported with documentation and scheduled for payment during January 1 through June 30, We were unable to support the remaining costs, which need additional documenation and not considered an enforceable obligation at this time. These administrative expense items are subject to approval by the Oversight Board of a proposed budget submitted by the Successor Agency, and are subject to a total statutory cap. These are currently not enforceable obligations. Payments to be made directly from the RPTTF.