Loading...
HomeMy WebLinkAboutTC Agd Pkt 2012-01-18 (2)TOWN OFTIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: BACKGROUND Mayor and Members of the Town Council Town Manager and Town Attorney Town Council Meeting January 18, 2012 Agenda Item: &-4 Recommendation to Adopt Resolution Accepting Housing Function of the Redevelopment Agency 1 The Town formed the Tiburon Redevelopment Agency ( "RDA") in 1983, adopting a redevelopment plan at the same time. The RDA has been largely inactive for many years and the Plan has expired. However, State law obligates the RDA to create affordable housing in the Plan area. During the life of the Plan, the RDA set aside restricted housing funds for that purpose. Toward the end of 2010, the Governor proposed terminating redevelopment agencies throughout the State, to divert their resources to other agencies and purposes. To protect local control over the RDA's assets, the RDA transferred its housing funds to the Mann Housing Authority subject to a Cooperation Agreement that provided for use of the funds pursuant to an Affordable Housing Plan, in consultation with the Town. On June 27, 2011, the California legislature passed Assembly Bills 1X26 and 1X27, which were signed into law by the Governor. These bills basically mandated that all redevelopment agencies would be dissolved unless the city that created the agency enacted an ordinance committing itself to make certain mandatory "voluntary" payments. The following month, the League of California Cities and the California Redevelopment Association filed suit asking the California Supreme Court to overturn both bills. On December 29, 2011, the Court upheld AB IX 26 and struck down AB D{27. The result: all redevelopment agencies are dissolved as of February 1, 2012. At the time of this writing, the Legislature is considering an urgency bill to extend this deadline, but passage is not guaranteed. ANALYSIS Under AB IX 26, the Town is the default successor agency to the RDA.' However, if the Town wishes to retain the RDA's housing functions and assets, the Council must adopt a resolution t The Town had the option to elect not to serve as the Successor Agency. However, this recusal would conflict with the Council's policy of maintaining control over the RDA's assets, as evidenced by the Cooperation Agreement. Toxv)i Council Mecdn, lai;uaT 1S. 2011 _ affirmatively electing to do so. If the Council does not make that election, the housing functions and assets would pass to the Marin Housing Authority. At present, the Marin Housing Authority is committed to use the RDA's assets subject to the Town's guidance. However, AB IX 26 creates the possibility that the Cooperation Agreement and fund transfer could be reversed, either by the State Controller or a County oversight board. In that event, the funds would go to the agency that assumes the RDA's housing functions. If the Council does not assume the RDA's housing functions, the Marin Housing Authority would receive the funds without the protections of the Cooperation Agreement. RECOMMENDATION Staff recommends that the Town Council: Adopt a Resolution electing to retain the housing assets and functions previously performed by the Tiburon Redevelopment Agency Exhibit: Draft Resolution Prepared By: Ann R. Danforth, Town Attorney [gip TIBVRON page 2 012 RESOLUTION NO. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ELECTING TO MAINTAIN THE HOUSING ASSETS AND FUNCTIONS OF THE TIBURON REDEVELOPMENT AGENCY AS SUCCESSOR TO SAID AGENCY WHEREAS, pursuant to the Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.), on November 18, 1983, the Town Council of the Town of Tiburon ( "Town ") created the created the Tiburon Redevelopment Agency and adopted the Tiburon Redevelopment Plan pursuant to Ordinance No. 279 N.S.; and WHEREAS, as part of the 2011 -2012 State budget bill, the California State Legislature enacted, and the Governor signed, companion bills AB 1X 26 and AB 1X 27 (together known as the "Redevelopment Restructuring Acts "), which eliminate every redevelopment agency subject to limited exceptions; and WHEREAS, on July 18, 2011, the League of California Cities and the California Redevelopment Association filed suit in the Supreme Court of the State of California, California Redevelopment Association v. Matosantos (Case No. 5194861), challenging the constitutionality of and requesting a stay of enforcement of AB 1X 26 and AB 1X 27 ("Lawsuit"); and WHEREAS, on December 29, 2011, the California Supreme Court issued its opinion in the Lawsuit upholding AB 1X 26, which dissolves all redevelopment agencies, and striking down AB 1X 27, thereby requiring the dissolution of all redevelopment agencies by February 1, 2012; and WHEREAS, pursuant to AB 1X 26 now codified in part as Health and Safety Code section 34173(d)(1), the Town of Tiburon has decided to act as the Successor Agency of the Tiburon Redevelopment Agency; and WHEREAS, the Tiburon Redevelopment Agency is statutorily obliged to create 5.5 affordable housing units within the Tiburon Redevelopment Plan Area; WHEREAS, on March 16, 2011, the Tiburon Redevelopment Agency entered into Cooperation Agreement with the Marin Housing Authority ( "Authority"), whereby the Tiburon Redevelopment Agency Agreed to transfer its housing funds to the Authority in return for the Agency's commitment to expend those funds to satisfy the agency's outstanding affordable housing obligation, subject to the Town's guidelines as set forth in said agreement; and; WHEREAS, pursuant to Health and Safety Code Section 34176, the Town Council can elect to retain the housing assets and functions of the Tiburon Redevelopment Agency by adopting a resolution documenting that election and the Town Council elects to do so to retain its rights under the Cooperation Agreement; Page 1 of 2 NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Tiburon that as Successor Agency to the Tiburon Redevelopment Agency, the Town elects to retain the housing assets and functions previously performed by said Agency pursuant to Health and Safety Code Section 34176. BE IT FURTHER RESOLVED that the Town Council directs the Town Manager to file a copy of this resolution with the County Auditor - Controller. The foregoing resolution was passed and adopted by the Town Council of the Town of Tiburon at a special meeting thereof, held on the th day of January 2012, by the following vote: AYES: NOES: ABSENT: ATTEST: DIANE CRANE IACOPI, TOWN CLERK Page 2 of 2 EXHIBIT A ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Under AB IX 26, an enforceable obligation is any of the following: (A) Bonds, as defined by Section 33602 and bonds issued pursuant to Section 58383 of the Government Code, including the required debt service, reserve set - asides, and any other payments required under the indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency. (B) Loans of moneys borrowed by the redevelopment agency for a lawful purpose, to the extent they are legally required to be repaid pursuant to a required repayment schedule or other mandatory loan terms. (C) Payments required by the federal government, preexisting obligations to the state or obligations imposed by state law, other than pass - through payments that are made by the county auditor - controller pursuant to Section 34183, or legally enforceable payments required in connection with the agencies' employees, including, but not limited to, pension payments, pension obligation debt service, unemployment payments, or other obligations conferred through a collective bargaining agreement. (D) Judgments or settlements entered by a competent court of law or binding arbitration decisions against the former redevelopment agency, other than pass - through payments that are made by the county auditor - controller pursuant to Section 34183. Along with the successor agency, the oversight board shall have the authority and standing to appeal any judgment or to set aside any settlement or arbitration decision. (E) Any legally binding and enforceable agreement or contract that is not otherwise void as violating the debt limit or public policy. However, nothing in this act shall prohibit either the successor agency, with the approval or at the direction of the oversight board, or the oversight board itself from terminating any existing agreements or contracts and providing any necessary and required compensation or remediation for such termination. (F) Contracts or agreements necessary for the administration or operation of the successor agency, in accordance with this part, including, but not limited to, agreements to purchase or rent office space, equipment and supplies, and pay - related expenses pursuant to Section 33127 and for carrying insurance pursuant to Section 33134. (G) Amounts borrowed from or payments owing to the Low and Moderate Income Housing Fund of a redevelopment agency, which had been deferred as of the effective date of the act adding this part; provided, however, that the repayment schedule is approved by the oversight board. 09959.00000 \6849049.6 Under this definition, the RDA's sole enforceable payment obligation is the creation of 5.5 very housing units affordable to very low income households. The information required by AB DC 26 is as follows: (A) The project name associated with the obli ag hon: Cooperation Agreement with the Marin Housing Authority (B) The Rayee: The Marin Housing Authority. (C) A short description of the nature of the work product service facility or other thing of value for which payment is to be made: See attached Affordable Housing Plan. (D) The amount of payments obligated to be made, by month, through April 2012: $0.00. The Marin Housing Authority already holds the RDA housing funds. 09959.00000 \6849049.6 111111I:Ti7: fUV 2l`IIGl AFFORDABLE HOUSING PLAN I. Affordable Housing Projects and Programs. A. The Housing Fund monies provided to the Authority under this Agreement must first be spent to satisfy the Agency's Affordable Housing Requirement. B. Any funds remaining after the Agency's Affordable Housing Requirement has been met shall be used to provide moderate, low, very low or extremely low income units in accordance with state law and the Town's General Plan and Municipal Code, or to assist with the following types of affordable housing - related programs: • Developer Loans for development of affordable rental housing • First Time Homebuyer Program consistent with Redevelopment Law — including down payment assistance, equity share or closing cost loans • Transitional Housing to assist with homeless prevention • Housing Rehabilitation consistent with Redevelopment Law 1:61 EOPS Atmchmmt 1- 18 -12.dm To: TOWN OF TIBURON Tiburon Redevelopment Agency 1505 Tiburon Boulevard January 18, 2012 Tiburon, CA 94920 Agenda Item: Board of Directors, Tiburon Redevelopment Agency From: Administrative Services Department Subject: Recommendation to Accept FY 2011 Annual Financial Audit Reviewed By: Background Attached are the Audited Financial Statements for the Tiburon Redevelopment Agency (Agency) for the fiscal year ended June 30, 2011. The audit was performed by the certified public accounting firm of Marcello & Company in accordance with auditing standards generally accepted in the United States. The Redevelopment Agency is a separate legal entity subject to oversight by the Town Council. The Town is financially accountable for the Agency. The Redevelopment Agency is a component unit of the Town and the financial data of the Redevelopment Agency is included in the Town's audited financial statements for the fiscal year ended June 30, 2011. As background, The Tiburon Redevelopment Agency was created in 1983 under provisions of the Community Redevelopment Law primarily to assist in the clearance and rehabilitation of areas determined to be in declining condition in the Town of Tiburon. The Agency made its final debt service payment, and received its last tax increment revenue in FY 2002. The Agency's only obligation is to create 5.5 very-low income housing units. In light of the State's budget deficit and the Governor's threat to dissolve all Redevelopment Agencies throughout the State and redirect RDA financial resources to the State, the Tiburon Redevelopment Agency entered into an agreement with the Marin Housing Authority (MHA) to grant the Agency's assets to MHA for the exclusive purpose of satisfying the Agency's Affordable Housing Requirements in accordance with the Agency's Affordable Housing Plan. In April 2011 all of the Agency's assets were transferred to MHA in accordance with the Agreement. Therefore, the FY 2011 audit shall be the Agency's last financial report. Recommendation Staff recommends that the Board of Directors: Move to accept the Audited Annual Financial Report for the Tiburon Redevelopment Agency for the fiscal year ended June 30, 2011. Town Council Mcedng Januaq 18. 2012 Exhibit 1. Audited Financial Statements of the Tiburon Redevelopment Agency for the period ended June 30, 2011 Prepared by: Heidi Bigall, Director of Administrative Services -T ow oE ".IYnuRON Fage 2 o12 THE TIBURON REDEVELOPMENT AGENCY California A Component Unit of the Town of Tiburon Final Annual Financial Report June 30, 2011 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Table of Contents INDEPENDENT AUDITOR'S REPORT ................................................... ............................... 1 GOVERNMENT -WIDE FINANCIAL STATEMENTS Statementof Net Assets ....................................................................... ............................... 2 Statementof Activities .......................................................................... ............................... 3 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds .................................................. ............................... 4 Statement of Revenue, Expenditures, and Change in Fund Balances - Governmental Funds ........................................... ............................... 5 NOTES TO FINANCIAL STATEMENTS ................................................. ............................... 6 -10 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Information ....................................................... ............................... 11 OTHER REPORTS Independent Auditor's Report on Compliance with Audit Guidelines for California Redevelopment Agencies ................... ............................... 12 MARCELLO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS 2701 Cottage Way, Suite 30 / Sacramento, California 95825 / 916.979.9079 INDEPENDENT AUDITOR'S REPORT Members of the Tiburon Redevelopment Agency Town of Tiburon, California We have audited the accompanying basic financial statements of the governmental activities, which is comprised of two major funds, of The Tiburon Redevelopment Agency (the Agency), a component unit of the Town of Tiburon, California, as of and for the year ended June 30, 2011, as listed in the table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion 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 Guidelines for Compliance Audits of California Redevelopment Agencies, June 2011, issued by the State Controller's Office, Division of Local Government Fiscal Affairs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic 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 opinion. As discussed in Note 5 to the financial statements, this June 30, 2011 Annual Financial Report constitutes the final report of the Agency. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of The Tiburon Redevelopment Agency, as of June 30, 2011, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Agency has not presented management's discussion and analysis that the Governmental Accounting Standards Board (GASB) has determined is necessary to supplement, although not required to be part of, the basic financial statements. The budgetary comparison information on page 11 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated September 29, 2011, on our consideration of the Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. If men c� Certified Public Accountants Sacramento, California September 29, 2011 GOVERNMENT -WIDE FINANCIAL STATEMENTS THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Statement of Net Assets June 30, 2011 ASSETS LIABILITIES NET ASSETS The accompanying notes are an integral part of these financial statements Governmental Activities THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Statement of Activities Year Ended June 30, 2011 Operating Functions /Programs Expenses Low income housing $ 1,527,167 Community Development 292,638 Total Governmental Activities $ 1,819,805 Program Net(Expense) Revenues Revenue General Revenues: Investment earnings Total general revenues Change in Net Assets Net Assets - beginning Net Assets - end of year The accompanying notes are an integral part of these financial statements 3 $ (1,527,167) (292,638) (1,819,805) 4,101 4,101 (1,815,704) 1,815,704 FUND FINANCIAL STATEMENTS THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Balance Sheet Governmental Funds June 30, 2011 Total Special Capital Governmental Revenue Projects Funds ASSETS LIABILITIES $ $ $ FUND BALANCES $ $ $ The accompanying notes are an integral part of these financial statements 4 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Statement of Revenue, Expenditures, and Change in Fund Balances Governmental Funds Year Ended June 30, 2011 Revenue Investment earnings Total revenue Expenditures Administration and planning Contractual services Total expenditures Change in Fund Balances Fund Balances - beginning Fund Balances - end of year Special Revenue $ 3,366 3,366 1,527,167 1,527,167 (1,523,801) 1,523,801 The accompanying notes are an integral part of these financial statements 5 Capital Projects $ 735 735 2,500 290,138 292,638 (291, 903) 291,903 Total Governmental Funds $ 4,101 4.101 2,500 1,817,305 1,819,805_ (1,815,704) 1,815,704 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2011 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the Agency as follows: Note 1 - Defining the Financial Reporting Entity Note 2 - Summary of Significant Accounting Policies Note 3 - Stewardship, Compliance and Accountability Note 4 - Subsequent Events Note 5 - Dissolution of the Tiburon Redevelopment Agency 2 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2011 Note 1- Defining the Financial Reporting Entity The Tiburon Redevelopment Agency of the Town of Tiburon, California (the Agency), is a separate legal entity subject to oversight by the Tiburon Town Council (the Council). As the primary governing unit of the Agency, the Council exercises significant financial and management control over the Agency. Therefore, the Agency is also a component unit of the Town of Tiburon (the Town). In addition to presenting these financial statements of the Agency, the financial data of this component unit has also been combined with the Town's annual financial report for the fiscal year ended June 30, 2011. The Agency was established in July 1983 under the provisions of the California Community Redevelopment Law (Health and Safety Code, Section 33000, et seq.) primarily to eliminate and reduce many aspects of economic, physical, visual and social blight then existing within the Town. The Agency was set to expire when the Town's housing increments, as defined by the State of California, have been met. The Town needed an additional four units of low- income housing to meet these requirements. Due to the high costs of local real estate, the Agency has not been able to meet this requirement and the continued existence of the Agency ended on June 30, 2011, as discussed in Note 5. As a result, the County of Marin has stopped passing through to the Agency, property tax increment revenue to the Agency several years ago. Note 2 - Summary of Significant Accounting Policies The accounting policies of the Agency conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies: A. Basis of Presentation In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. The Agency adopted the provisions of this statement along with GASB Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments: Omnibus (an amendment to GASB Statements No. 21 and No. 34), as of July 1, 2003. In June 2001, GASB issued Statement No. 38, Certain Financial Statement Note Disclosures, to revaluate certain existing disclosure requirements in the context of reporting model statement No. 34. The Agency adopted these provisions as of July 1, 2003. The Financial Statement presentation, required by GASB 34, 37, and 38 provides a comprehensive, entity -wide perspective of the Agency's assets, liabilities, and replaces the fund -group perspective previously required. The Agency follows the "primary government's governmental activities" reporting requirements of GASB No. 34 that provides a comprehensive one -line look at the Agency's financial activities. B. Fund Accounting The accounts of the Agency are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures, as follows: THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2011 Note 2 - Summary of Significant Accounting Policies (continued) Governmental Funds Special Revenue Funds — these funds account for the proceeds of specific revenue sources that are restricted by law or administrative action for specific purpose expenditures. Within the Agency, this fund is used to account for financial resources to be used for financing development and rehabilitation of low and moderate income housing units (LMI set - aside). Capital Project Funds — these funds account for the financial resources used for the acquisition and /or construction of major capital facilities, as well as being the general operating fund of the Agency. They are used to account for all financial resources except those required to be accounted for in the Special Revenue Fund. C. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurement made, regardless of the measurement focus applied. The government -wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. In the fund financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become both measurable and available to finance the expenditures of the current period (susceptible to accrual). Expenditures are recorded in the accounting period in which the related liability is incurred, except that principal and interest payments on general long term debt are recognized when paid. The government -wide financial statement is accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their statement of net assets. Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government -wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. D. Budgetary Accounting The Tiburon Town Council, in its capacity as members of the Agency Board, adopts a budget for the Agency annually, effective each July 1, for all Agency funds. The Board may amend the budget by resolution during the fiscal year. Budgets are prepared on a basis consistent with accounting principles generally accepted in the United States of America. Encumbrance accounting is not employed by the Agency and all appropriations lapse at year end. E. Net Assets In the government -wide financial statements, net assets are classified as either restricted or unrestricted: THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2011 Note 2 - Summary of Significant Accounting Policies (concluded) Restricted net assets - restricted net assets include resources that the Agency is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties, such as property tax increment revenue. Unrestricted net assets - unrestricted net assets represent resources derived from sources such as rental income and developer fees. These resources are used for transactions relating the general operations of the Agency, and may be used at the discretion of the governing board to meet current expenses for any purpose. F. Property Tax Increment Revenue The Agency does not have the authority to levy tax, but receives property tax increment revenue directly from the County of Marin. Tax increment is the additional property tax revenue created in a project area, which exceeds the base year (year of Plan adoption) value because of improvements and reassessments. Property tax increment revenue is recognized when measurable and collectible. The Agency did not receive property tax increment revenue in the current fiscal year. G. Interfund Transactions "Operating transfers in" and "Operating transfers out" on the Statement of Revenue and Expenditures are restricted to transfers within the funds and /or projects of the agency. "Transfers to" or "transfers from" the legislative body of the agency are reported as appropriate revenue or expenditure line items. H. 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 revenue and expenditures during the reporting period. Actual results could differ from those estimates. Maior Funds In accordance with GASB Stmt. No. 34, paragraph 76, the Agency has elected to report its two funds as major funds because they believe these funds are particularly important to financial statement users. Note 3 - Stewardship, Compliance and Accountability Management is not aware of any material violations of finance - related legal or contractual provisions in any of the funds of the Agency N THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2011 Note 4 - Subsequent Events The management of the Agency has reviewed the results of operations for the period from its year end June 30, 2011 through October 31, 2011, the date the financial statements were available to be issued, and have determined that no adjustments are necessary to the amounts reported in the accompanying financial statements nor have any subsequent events occurred, the nature of which would require disclosure. Note 5 - Dissolution of the Tiburon Redevelopment Agency In April 2011, the Agency implemented dissolution procedures and transferred all remaining assets to the Marin Housing Authority. In June 2011, the Governor of the State of California signed legislation to provide for the eventual dissolution of redevelopment agencies. This legislation provides for the continued operation of the agency if certain payments are made to the state of California. Those agencies that elect not to make such payments will not be permitted to initiate new projects, obligations, or activities after July 1, 2011. Such agencies will only be permitted to pay existing obligations as defined by this legislation As a result of the above actions, this June 30, 2011 financial statement constitutes the Final Annual Report of the Agency. 10 REQUIRED SUPPLEMENTARY INFORMATION THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Budgetary Comparison Information Year Ended June 30, 2011 Resources (inflows) Investment earnings Total revenue Charges to Appropriations (Outflows) Low income housing Total expenditures Surplus (deficit) Resources (inflows) Investment earnings Total revenue Charges to Appropriations (Outflows) Administration and planning Community development Total expenditures Surplus (deficit) Special Revenue Fund Housing Set -Aside Fund Original Final Actual Budget Budget Amounts $ $ $ 3,366 3,366 1,527,167 1,527,167 $ $ - $ (1,523,801) Original Budget Capital Projects Fund General Tax Increment Fund Final Budget x _ Actual Amounts $ 735 735 2,500 2,500 2,500 - - 290,138 2,500 2,500 292,638 $ (2,500) $ (2,500) $ (291,903) 11 OTHER REPORTS MARCELLO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS 2701 Cottage Way, Suite 30 / Sacramento, California 95825 / 916.979.9079 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES Members of the Tiburon Redevelopment Agency Tiburon, California We have audited the component unit financial statements of the Tiburon Redevelopment Agency (the Agency), a component unit of the Town of Tiburon, California, as of and for the year ended June 30, 2011, and have issued our report thereon dated September 29, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. Compliance with laws and regulations applicable to the Agency is the responsibility of the Agency's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Agency's compliance with provisions of laws and regulations contained in Guidelines for Compliance Audits of California Redevelopment Agencies issued by the State Controller Office, Division of Accounting and Reporting. The results of our tests indicated that, with respect to the items tested, the Agency complied, in all material respects, with the provisions referred to in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those provisions. This report is intended for the information of the Agency and the State Controller Office and is not intended to be and should not be used by persons other than these specified people. Certified Public Accountants Sacramento, California September 29, 2011 12 To: TOWN OF TIBURON Redevelopment Board Meeting January 18, 2012 1505 Tiburon Boulevard Agenda Item: Tiburon, CA 94920 RD 4 - 1' Chair and Board of the Tiburon Redevelopment Agency From: Executive Director and Agency Counsel Subject: Recommendation to Adopt a Resolution Approving an Enforceable Obligation Payment Schedule Reviewed By: 7 BACKGROUND AND ANALYSIS On June 27, 2011, the California legislature passed Assembly Bills 1X26 and 1X27, which were signed into law by the Governor. These bills basically mandated that all redevelopment agencies would be dissolved unless the city that created the agency enacted an ordinance committing itself to make certain mandatory "voluntary" payments. On July 18, 2011, the League of California Cities and the California Redevelopment Association filed suit asking the California Supreme Court to overturn the above legislation for a number of violations of the State Constitution and to immediately stay the provisions of AB 1X26 and AB 1X27. The Court accepted the suit and, on December 29, 2011, upheld AB 1X 26 and struck down AB IX-27. The result: all redevelopment agencies are dissolved as of February 1, 2012. Pending dissolution, AB 1X 26 required all redevelopment agencies to adopt a schedule of enforceable payment obligations ( "EOPS ") prior to August 27, 2011, to continue making payments of agency funds. The Tiburon Redevelopment Agency did not do so because it had no enforceable payment obligations as defined by statute. However, the agency does have an on- going obligation to create affordable housing that staff is recommending that the Town of Tiburon assume as successor agency to the RDA. To that end, the RDA should now adopt an EPOS, which is a perquisite to the Town assuming its role as the successor agency. Staff prepared the attached Enforceable Obligations Payment Schedule which staff recommends be adopted via approval of the attached resolution. RECOMMENDATION Staff recommends that the Board of the Tiburon Redevelopment Agency: Adopt a Resolution approving the Enforceable Obligations Payment Schedule. TounCouncil Mcermirg lmuiary 18. _t11 °_ Exhibit: Draft Resolution Prepared By: Ann R. Danforth, Town Attorney EOPS RD-ASR L i8.12.nnc Pag 2 of 2 Draft RESOLUTION NO. XX -2011 A RESOLUTION OF THE TIBURON REDEVELOPMENT AGENCY APPROVING AND ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO AB 1X 26 WHEREAS, pursuant to the Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.), the Town Council of the Town of Tiburon ( "Town ") created the Redevelopment Agency of the Town of Tiburon ( "Agency "); and WHEREAS, the Agency has been responsible for implementing the Tiburon Redevelopment Plan covering certain properties within the Town ( "Project Area "); and WHEREAS, as part of the 2011 -2012 State budget bill, the California State Legislature recently enacted, and the Governor signed, companion bills AB 1X 26 and AB 1X 27, which eliminate every redevelopment agency unless the community that created it adopts an ordinance ( "Continuation Ordinance ") agreeing to participate in an Alternative Voluntary Redevelopment Program which requires the payment of an annual "community remittance" payment; and WHEREAS, on July 18, 2011, the League of California Cities and the California Redevelopment Association filed suit in the Supreme Court of the State of California challenging the constitutionality of and requesting a stay of enforcement of AB 1X 26 and AB 1X 27; and WHEREAS, on December 29, 2011, the California Supreme Court issued its opinion in the Lawsuit upholding AB 1X 26, which dissolves all redevelopment agencies, and striking down AB 1X 27, thereby requiring the dissolution of all redevelopment agencies by February 1, 2012; and WHEREAS, Health and Safety Code Section 34169, enacted by AB 1X 26, requires redevelopment agencies to adopt, by August 27, 2011, an Enforceable Obligation Payment Schedule ( "EOPS ") to continue making payments on such obligations; and WHEREAS, the Agency did not adopt an EOP S prior to August 27, 2011 because it did not have any enforceable payment obligations; and WHEREAS, to enable the Town of Tiburon to act as successor to the Agency, the Agency must adopt an EOPS prior to February 1, 2012; NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE TOWN OF TIBURON DOES HEREBY RESOLVE AS FOLLOWS: Tibutron Redevelopment Agency Resolution No. AX-2012 01118112 Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Approval of EOPS. The Agency hereby approves and adopts the Enforceable Obligation Payment Schedule, in substantially the form attached hereto and incorporated by reference as Exhibit A, as required by Health and Safety Code Section 34169. Section 3. Posting; Transmittal to Appropriate Agencies. The Executive Director is hereby authorized and directed to post a copy of the EOPS on the Town's website. The Executive Director is further authorized and directed to transmit, by mail or electronic means, to the Marin County Auditor - Controller, the State Controller and the Department of Finance, notification providing the website location of the posted EOPS and other information as required by AB IX 26. Section 4. Effective Date. Pursuant to Health and Safety Code Section 34169(i), the Agency's action to adopt the EOPS as set forth herein shall not be effective for three (3) business days following adoption of this Resolution, pending a request for review of the EOPS by the Department of Finance. PASSED AND ADOPTED at a regular meeting of the Board of the Tiburon Redevelopment Agency this 18th day of January, 2012, by the following vote: AYES: BOARDMEMBERS: JIM FRASER, CHAIR TIBURON REDEVELOPMENT AGENCY ATTEST: DIANE CRANE IACOPI, BOARD CLERK Tiburon Redevelopment Agency Resolution No. XX -2012 01118112 2 EXHIBIT A ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Under AB IX 26, an enforceable obligation is any of the following: (A) Bonds, as defined by Section 33602 and bonds issued pursuant to Section 58383 of the Government Code, including the required debt service, reserve set - asides, and any other payments required under the indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency. (B) Loans of moneys borrowed by the redevelopment agency for a lawful purpose, to the extent they are legally required to be repaid pursuant to a required repayment schedule or other mandatory loan terms. (C) Payments required by the federal government, preexisting obligations to the state or obligations imposed by state law, other than pass - through payments that are made by the county auditor - controller pursuant to Section 34183, or legally enforceable payments required in connection with the agencies' employees, including, but not limited to, pension payments, pension obligation debt service, unemployment payments, or other obligations conferred through a collective bargaining agreement. (D) Judgments or settlements entered by a competent court of law or binding arbitration decisions against the former redevelopment agency, other than pass- through payments that are made by the county auditor - controller pursuant to Section 34183. Along with the successor agency, the oversight board shall have the authority and standing to appeal any judgment or to set aside any settlement or arbitration decision. (E) Any legally binding and enforceable agreement or contract that is not otherwise void as violating the debt limit or public policy. However, nothing in this act shall prohibit either the successor agency, with the approval or at the direction of the oversight board, or the oversight board itself from terminating any existing agreements or contracts and providing any necessary and required compensation or remediation for such termination. (F) Contracts or agreements necessary for the administration or operation of the successor agency, in accordance with this part, including, but not limited to, agreements to purchase or rent office space, equipment and supplies, and pay- related expenses pursuant to Section 33127 and for carrying insurance pursuant to Section 33134. (G) Amounts borrowed from or payments owing to the Low and Moderate Income Housing Fund of a redevelopment agency, which had been deferred as of the effective date of the act adding this part; provided, however, that the repayment schedule is approved by the oversight board. 09959.00000 \6849049.6 Under this definition, the RDA's sole enforceable payment obligation is the creation of 5.5 very housing units affordable to very low income households. The information required by AB IX 26 is as follows: (A) The project name associated with the obligation: Cooperation Agreement with the Marin Housing Authority (B) The payee: The Marin Housing Authority. (C) A short description of the nature of the work, product, service. facility, or other thing of value for which payment is to be made: See attached Affordable Housing Plan. (D) The amount of payments obligated to be made, by month, through April 2012: $0.00. The Marin Housing Authority already holds the RDA housing funds. 09959.00000\6849049.6 ATTACHMENT A AFFORDABLE HOUSING PLAN I. Affordable Housing Proiects and Programs. A. The Housing Fund monies provided to the Authority under this Agreement must first be spent to satisfy the Agency's Affordable Housing Requirement. B. Any funds remaining after the Agency's Affordable Housing Requirement has been met shall be used to provide moderate, low, very low or extremely low income units in accordance with state law and the Town's General Plan and Municipal Code, or to assist with the following types of affordable housing - related programs: • Developer Loans for development of affordable rental housing • First Time Homebuyer Program consistent with Redevelopment Law — including down payment assistance, equity share or closing cost loans • Transitional Housing to assist with homeless prevention • Housing Rehabilitation consistent with Redevelopment Law A -1 EOPS Attachment 1- 18- 12.doe