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Redevelopment Agency of the City of Walnut Creek
Basic Financial Statements
For the period July 1, 2011 through January 31, 2012
Table of Contents
Page
Independent Auditors’ Report ...................................................................................................................................... 1
Management’s Discussion and Analysis ..................................................................................................................... 3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets ...................................................................................................................................... 14
Statements of Activities and Changes in Net Assets ...................................................................................... 15
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................................................ 18
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets ................................................................................... 21
Statement of Revenues, Expenditures and Changes in Fund Balances........................................................ 22
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government-Wide
Statement of Activities and Changes in Net Assets.................................................................................. 24
Notes to Basic Financial Statements......................................................................................................................... 27
Required Supplementary Information:
Budgetary Information .............................................................................................................................................. 44
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Affordable Housing Program – Special Revenue Fund ................................................................................. 45
Other Information:
Statistical Section: Index ................................................................................................................................................... 47
Net Assets by Component ............................................................................................................................................... 48
Changes in Net Assets ...................................................................................................................................................... 50
Change in Fund Balances of Governmental Funds ...................................................................................................... 52
Fund Balances of Governmental Funds ......................................................................................................................... 54
Assessed Value and Estimated Actual Value of Taxable Property ............................................................................ 57
Principal Property Tax Payers ......................................................................................................................................... 58
Property Tax Levies and Collections .............................................................................................................................. 59
Ratios of Debt Outstanding ............................................................................................................................................. 60
City Demographic and Economic Statistics .................................................................................................................. 62
Miscellaneous Statistical Data ......................................................................................................................................... 63
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INDEPENDENT AUDITORS’ REPORT
Board of Directors
Redevelopment Agency of the
City of Walnut Creek, California
We have audited the accompanying financial statements of the governmental activities and each major fund
of the Redevelopment Agency of the City of Walnut Creek (Agency), a component unit of the City of Walnut
Creek, California, as of January 31, 2012 and for the period July 1, 2011 through January 31, 2012, which
collectively comprise the Agency’s basic financial statements, as listed in the table of contents. These financial
statements are the responsibility of the management of the Redevelopment Agency of the City of Walnut
Creek. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and each major fund of the Redevelopment Agency of the
City of Walnut Creek, California, as of January 31, 2012, and the respective changes in financial position of
the Agency for the period July 1, 2011 through January 31, 2012, in conformity with accounting principles
generally accepted in the United States of America.
As discussed in Note 6 to the basic financial statements, the California State Legislature enacted legislation
that dissolved redevelopment agencies in the State of California as of February 1, 2012. On February 1, 2012,
the City, as the Successor Agency to the Redevelopment Agency of the City of Walnut Creek, became
responsible for overseeing the dissolution process and the wind down of redevelopment activity.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise of the Agency’s basic financial statements. The Other Information identified in the accompanying
table of contents is presented for purposes of additional analysis and is not a required part of the basic
financial statements. The Other Information has not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on it.
1
Board of Directors
Redevelopment Agency of the
City of Walnut Creek, California
Page Two
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and budgetary comparison information as identified in the accompanying table of
contents be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
San Jose, California
March 14, 2013
2
MANAGEMENT’S DISCUSSION
AND ANALYSIS
3
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4
Redevelopment Agency of the City of Walnut Creek
Management’s Discussion and Analysis
For the period July 1, 2011 through January 31, 2012
INTRODUCTION
On December 29, 2011, the California Supreme Court upheld the ABx1 26 Dissolution Act. As a result, the City
of Walnut Creek Redevelopment Agency (the “Redevelopment Agency”) was dissolved on February 1, 2012.
The City of Walnut Creek (the “City”) adopted a resolution on January 17, 2012 accepting for the City the roles
of Successor Agency to the Redevelopment Agency and Housing Successor Agency. Due to continuing
disclosure requirements to provide annual reports, including an audited financial statement, the City of
Walnut Creek Redevelopment Agency Basic Financial Statements and Independent Auditors’ Report for the
seven month period ended January 31, 2012 are included herewith.
The Redevelopment Agency has two project areas—the South Broadway Redevelopment Project Area
Plan adopted on October 4, 1971 and the Mt. Diablo Redevelopment Project Area Plan adopted on
December 16, 1974. In adopting the Plans, the Redevelopment Agency set in place the ability to collect tax
increments (the increase in property tax) generated in the Project Areas from new development. Twenty
percent of all tax increments generated in the Project Areas are required by law to be used to increase, improve
and preserve low and moderate income housing. Because the Project Areas do not contain housing, nor is new
housing mandated within the Project Areas, the Redevelopment Agency has utilized its affordable housing
funds to assist the City in implementing its affordable housing programs citywide. These Project Areas were
merged on April 6, 1999 to facilitate the development of one implementation plan—the document that links
the proposed actions of the Redevelopment Agency with the elimination of blight.
FINANCIAL ACTIVITIES FOR THE PERIOD JULY 1, 2012 THROUGH JANUARY 31, 2012
Due to enactment of the ABx1 26 Dissolution Act, which occurred on June 28, 2011, the Redevelopment
Agency cannot enter into new projects, obligations or commitments. Therefore, in the seven month period in
2011-12, no new loans were made by the Redevelopment Agency for the First Time Homebuyer and Home
Rehabilitation loan programs. The Redevelopment Agency did, however, provide payments totaling $220,872
for enforceable obligations in existence as of February 1, 2012, the date of dissolution. These contractual
commitments included a partnership with developers for the acquisition and development of approximately
48 multi-family rental units at Third Avenue and for ten affordable homes on real property located on Barkley
Avenue. The Home Rehabilitation portfolio was administered under a contract with Contra Costa County’s
Neighborhood Preservation Program division.
In addition, the Redevelopment Agency made payments on outstanding debt service for 2000 Tax Allocation
Bonds (TABs) issued to fund a seismic retrofit for an existing parking structure and 2003 TABs for the refund
and defeasance of 1993 Revenue Bonds, as well as to fund projects in the merged redevelopment project area,
including the Veteran’s Building relocation. The debt service paid for the seven month period ended
January 31, 2012 was $604,000.
The net assets of $10.5 million shown on page seven include $8 million of outstanding note receivable which is
not available for expenditure.
5
Redevelopment Agency of the City of Walnut Creek
Management’s Discussion and Analysis, Continued
For the period July 1, 2011 through January 31, 2012
As management of the Redevelopment Agency, we offer readers of the Redevelopment Agency financial
statements this narrative overview and analysis of the financial activities of the Redevelopment Agency for the
seven month period ended January 31, 2012. Please read this overview in conjunction with the accompanying
financial statements.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis serves as an introduction to the Redevelopment Agency’s basic financial
statements and includes three components:

Government-wide financial statements – These include the Statement of Net
Assets and Statement of Activities. These statements provide information about
the activities of the Redevelopment Agency as a whole and about the overall
financial condition of the Redevelopment Agency in a manner similar to a
private-sector business. These statements are described in more detail in a
subsequent section in this Management’s Discussion and Analysis (MD&A).

Fund financial statements – These statements consist of the Balance Sheet and
Statement of Revenues, Expenditures and Changes in Fund Balances and provide
additional information about the Redevelopment Agency’s major funds,
including how services and projects were financed in the short term, and the
fund balances available for financing future activities. These statements are
also described in more detail in a subsequent section of this MD&A.

Notes to the Financial Statements – The notes provide additional detail that is essential to a full
understanding of the information provided in the government-wide and fund financial statements.
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the operating budget for the Redevelopment Agency’s Affordable
Housing Program Special Revenue Fund.
GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FINANCIAL ANALYSIS
These statements include all assets and liabilities of the Redevelopment Agency using the
accrual basis of accounting, an approach similar to the accounting used by most private
sector companies. All current year revenues and expenses are accounted for regardless of
when the cash is paid or received.
These statements report the Redevelopment Agency’s net assets, as well as any changes
made to them. Net assets, the difference between assets and liabilities, are one way to
measure the Redevelopment Agency’s financial position. Over time, increases or
decreases in net assets are some indicators used to assess whether the financial condition
of the Redevelopment Agency is improving or deteriorating. However, other non-financial factors, such as
changes in the Redevelopment Agency’s property tax increment, are also considered to accurately assess the
overall health of the Redevelopment Agency.
6
Redevelopment Agency of the City of Walnut Creek
Management’s Discussion and Analysis, Continued
For the period July 1, 2011 through January 31, 2012
The government-wide statements present information about the Redevelopment Agency’s activities. These
include debt service and services provided for community development and housing. These services are
funded by monies received from incremental property taxes and other revenues.
FINANCIAL ACTIVITIES OF THE REDEVELOPMENT AGENCY AS A WHOLE
This analysis focuses on the net assets and changes in net assets of the Redevelopment Agency’s Governmental
Activities in the Agency-wide Statement of Net Assets and Statement of Activities and Changes in Net Assets that
follow.
Redevelopment Agency Statement of Net Assets at January 31, 2012
(In millions)
Current assets
Noncurrent assets
$
Total assets
6.6
7.9
14.5
Current liabilities
Noncurrent liabilities
0.7
3.3
Total liabilities
Net assets:
Restricted
Unrestricted
4.0
9.1
1.4
Total net assets
$
10.5
The Redevelopment Agency’s entity-wide net assets increased by approximately $200,000 in the seven month
period for 2011-12, to $10.5 million at January 31, 2012. This increase in the Change in Net Assets reflected in
the Statement of Activities is explained below and summarized on the following page:

Cash and investments decreased by $1.2 million, primarily due to reduced
tax increment revenue as a result of Mt. Diablo sub-area reaching its tax
increment cap and the Redevelopment Agency’s dissolution requiring the
use of accumulated property tax on hand to cover expenditures.

Notes receivable increased by $221,000 as a result of payments of
enforceable obligations issued under the Redevelopment Agency’s
affordable housing program prior to enactment of the redevelopment
agencies dissolution law.

Total liabilities decreased by $1.1 million, primarily due to repayment of
excess property tax increment (received in the prior year) to the Contra
Costa County for Mt. Diablo sub-area and the current year payment of
Redevelopment Agency’s outstanding debt issues.
7
Redevelopment Agency of the City of Walnut Creek
Management’s Discussion and Analysis, Continued
For the period July 1, 2011 through January 31, 2012
FINANCIAL ACTIVITIES OF THE REDEVELOPMENT AGENCY AS A WHOLE, Continued
Redevelopment Agency Changes in Net assets for the period ended January 31, 2012
(In millions)
General Revenues:
Property tax (tax increment)
$
Total general revenue
0.5
0.5
Expenses
0.3
Change in net assets
0.2
Net assets – beginning of year
Net assets – end of year
$
10.3
10.5
The $490,000 in Redevelopment Agency revenues for the seven month period in 2011-12 came primarily from
property tax increment, which was $2.7 million lower than previous year mostly due to the Mt. Diablo Project
Area reaching its tax increment cap in the fiscal year 2010-11. Dissolution of the Redevelopment Agency as of
February 1, 2012 resulted in property tax revenue received for the South Broadway Project Area totaling only
55% of levy advance collections estimated for the seven month period in 2011-12. A decrease of $80,000
Housing’s charge for services and equity interest revenue is due to fewer loan repayments in comparison to
the previous fiscal year. Redevelopment Agency expenses totaled $348,000 in the seven month period in
2011-12, $217,000 for affordable housing programs and community development and $131,000 for interest on
long-term debt. Compared to last year, expenses decreased $3.5 million, which represents $2.8 million in
reduced expenses incurred for capital contribution to the City combined with a $142,000 decrease in Housing,
a $154,000 decrease in debt service interest and a $285,000 decrease in the payment to
SERAF.
THE REDEVELOPMENT AGENCY’S FUND FINANCIAL STATEMENTS
This section describes individual fund activities separate from the Redevelopment
Agency’s government-wide financial statements. At January 31, 2012, the
Redevelopment Agency’s governmental funds reported combined fund balances of
$6.6 million, which is a decrease of $552,000 compared with last year. This decrease is
primarily due to receiving less tax increment for the South Broadway Project Area as a
result of the dissolution of the Redevelopment Agency.
Redevelopment Agency expenses of $1 million in the seven month period in 2011-12 were principally for
affordable housing and debt service. Affordable Housing Program expenditures totaled $295,000 in the seven
month period in 2011-12, a decrease of $252,000 from the prior fiscal year. Debt service expenditures totaled
$604,000, a decrease of $2.3 million over the prior fiscal year primarily due to previous year partial redemption
of tax allocation bonds.
8
Redevelopment Agency of the City of Walnut Creek
Management’s Discussion and Analysis, Continued
For the period July 1, 2011 through January 31, 2012
DEBT ADMINISTRATION
Each of the Redevelopment Agency’s debt issues are discussed in Note 5
to the financial statements. The Redevelopment Agency’s TABs are
collateralized by the pledging of tax increment revenues. With the
dissolution of the Redevelopment Agency, the pledge is on the overall
property tax distributed by the State. Funds that formerly would have
been distributed to the Redevelopment Agency as tax increment are now
deposited into a Redevelopment Property Tax Trust Fund (“RPTTF”) and
used to pay obligations listed on the approved Recognized Obligation
Payment Schedule (ROPS).
DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES
As previously stated, on February 1, 2012, all redevelopment agencies in California were effectively dissolved,
a result of the California Supreme Court upholding the Assembly Bill x1 26 Dissolution Act.
On January 17, 2012, the City Council of the City of Walnut Creek adopted Resolution 12-04, accepting for the
City the role of Successor Agency to the Redevelopment Agency, and Resolution 12-05, electing to retain the
housing assets and functions previously performed by the Redevelopment Agency. Subject to the control of a
newly established oversight board, remaining assets can only be used to pay enforceable obligations in
existence at the date of dissolution (including the completion of any unfinished projects that were subject to
legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay
the estimated annual installment payments on enforceable obligations of the former Redevelopment Agency
until all enforceable obligations of the former Redevelopment Agency have been paid in full and all assets
have been liquidated. The City will provide administrative services to the Successor Agency to wind down the
affairs of the former Redevelopment Agency.
CONTACTING THE REDEVELOPMENT AGENCY’S FINANCIAL MANAGEMENT
These Component Unit Financial Statements are intended to provide citizens, taxpayers, investors, and
creditors with a general overview of the Redevelopment Agency’s finances. Questions about this report should
be directed to the Finance Division, at 1666 North Main Street, Walnut Creek, California 94596. A copy of this
financial report is also located at the City’s website at http://www.walnut-creek.org by selecting “Budget” in
the “Quick Links” section and then selecting “Other Financial Reports.”
9
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10
BASIC FINANCIAL STATEMENTS
11
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12
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
13
Redevelopment Agency of the City of Walnut Creek
Statement of Net Assets
January 31, 2012
ASSETS
Current assets:
Cash and investments (Note 2)
Restricted cash and investments (Note 2)
Interest receivable
$
Total current assets
5,419,330
1,225,316
1,411
6,646,057
Noncurrent assets:
Notes receivable (Note 3)
7,863,401
Total assets
14,509,458
LIABILITIES
Current liabilities:
Accounts payable
Accrued payroll
Interest payable
Long-term debt - due within one year
45,481
8,226
99,015
550,594
Total current liabilities
703,316
Noncurrent
N
t liabilities:
li biliti
Long-term debt - due in more than one year (Note 5)
3,324,116
Total noncurrent liabilities
3,324,116
Total liabilities
4,027,432
NET ASSETS
Restricted for:
Low and moderate income housing projects
9,123,985
Unrestricted
1,358,041
Total net assets
$
See accompanying Notes to Basic Financial Statements.
14
10,482,026
Redevelopment Agency of the City of Walnut Creek
Statement of Activities and Changes in Net Assets
For the period July 1, 2011 through January 31, 2012
Functions / Programs
Expenses:
Housing
$
73,684
Community development
143,392
Interest on long-term debt
130,597
Total functions/program expenses
347,673
General Revenues:
Incremental property taxes
Interest income
469,860
20,401
Total general revenues
490,261
Change in net assets
142,588
Net assets - beginning of year
10,339,438
Net assets - end of year
$
See accompanying Notes to Basic Financial Statements.
15
10,482,026
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16
GOVERNMENTAL
FUND FINANCIAL STATEMENTS
The Redevelopment Agency of the City of Walnut Creek determined all its funds to be major funds for the
period July 1, 2011 through January 31, 2012.
The Affordable Housing Program Special Revenue Fund accounts for redevelopment property tax
increments, which must be set aside for low and moderate income housing.
Mt. Diablo Project Area:
The Debt Service Fund accounts for the Mt. Diablo Project Area's share of the Redevelopment
Agency's Series 2000 and Series 2003 A and B Tax Allocation Bonds debt service payments.
The Capital Projects Fund accounts for project expenditures in the Mt. Diablo Project Area.
South Broadway Project Area:
The Debt Service Fund accounts for the South Broadway Project Area's share of the Redevelopment
g
y Series 2000 and Series 2003 A and B Tax Allocation Bonds debt service p
y
Agency's
payments.
The Capital Projects Fund accounts for project expenditures in the South Broadway Project Area.
17
Redevelopment Agency of the City of Walnut Creek
Balance Sheet
Major Governmental Funds
January 31, 2012
Mt. Diablo Project Area
Affordable
Housing
Program
Debt
Service
Capital
Projects
ASSETS
Cash and investments (Note 2):
Equity in City Investment Pool
Restricted - held by fiscal agent
Interest receivable
Notes receivable (Note 3)
Total assets
$
1,268,559
251
7,863,401
$
857,721
-
$
3,464,066
975
-
$
9,132,211
$
857,721
$
3,465,041
$
8,226
7,863,401
$
-
$
44,337
-
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Salaries and wages payable
Deferred revenue
Total
T l liabilities
li bili i
Fund Balances:
Restricted
Total fund balances
Total liabilities and fund balances
$
See accompanying Notes to Basic Financial Statements.
18
77,871,627
871 627
-
44,337
44
337
1,260,584
857,721
3,420,704
1,260,584
857,721
3,420,704
9,132,211
$
857,721
$
3,465,041
South Broadway Project Area
Debt
Service
Capital
Projects
Totals
$
367,595
-
$
686,705
185
-
$
5,419,330
1,225,316
1,411
7,863,401
$
367,595
$
686,890
$
14,509,458
$
-
$
1,144
-
$
45,481
8,226
7,863,401
$
-
11,144
144
77,917,108
917 108
367,595
685,746
6,592,350
367,595
685,746
6,592,350
367,595
$
686,890
$
14,509,458
19
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20
Redevelopment Agency of the City of Walnut Creek
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
January 31, 2012
Total Fund Balances - Total Governmental Funds
$
6,592,350
Amounts reported for governmental activities in the Statement of Net Assets were different
because:
Accrual of Noncurrent Revenues
Revenues which are deferred on the Governmental Funds Balance Sheet because they are not
available are reported as revenue in the Statement of Activities and Changes in Net Assets.
7,863,401
Current Liabilities
Interest payable on long-term debt does not require current financial resources. Therefore,
interest payable is not reported as a liability in the Governmental Funds Balance Sheet.
(99,015)
Long-term Assets and Liabilities
The liabilities below are not due and payable in the current period and therefore are not reported
in the funds:
Long-term debt - due within one year
(550,594)
Long-term debt - due in more than one year
(3,324,116)
$
Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
21
10,482,026
Redevelopment Agency of the City of Walnut Creek
Statement of Revenues, Expenditures and Changes in Fund Balances
Major Governmental Funds
For the period July 1, 2011 through January 31, 2012
Mt. Diablo Project Area
Affordable
Housing
Debt
Capital
Program
Service
Projects
REVENUES:
Incremental property taxes
$
Interest income
-
$
-
$
-
5,202
46
13,693
5,202
46
13,693
294,555
-
-
-
-
100,873
Principal
-
346,500
-
Interest and other related costs
-
76,374
-
294,555
422,874
100,873
(289,353)
(422,828)
(87,180)
300,000
406,951
-
-
(616,951)
300,000
406,951
(616,951)
10,647
(15,877)
(704,131)
Total revenues
EXPENDITURES:
Housing
Community development
Debt service:
p
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in (Note 4)
Transfers out (Note 4)
Total other financing sources (uses)
Net change in fund balances
-
FUND BALANCES:
Beginning of year
1,249,937
End of year
$
See accompanying Notes to Basic Financial Statements.
22
1,260,584
873,598
$
857,721
4,124,835
$
3,420,704
South Broadway Project Area
$
Debt
Capital
Service
Projects
-
$
469,860
$
469,860
20
1,440
20,401
20
471,300
490,261
-
-
294,555
-
42,519
143,392
148,500
-
495,000
32,732
-
109,106
181,232
42,519
1,042,053
(181,212)
428,781
174,408
-
(264,408)
174,408
(264,408)
881,359
(881,359)
-
164,373
374,399
367,595
(551,792)
-
(6,804)
$
Totals
(551,792)
521,373
$
685,746
7,144,142
$
6,592,350
23
Redevelopment Agency of the City of Walnut Creek
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the period July 1, 2011 through January 31, 2012
Net Change in Fund Balances - Total Governmental Funds
$
(551,792)
Amounts reported for governmental activities in the Statement of Activities and Changes in
Net Assets were different because:
Long-term Debt Activity
Repayment of bond principal is an expenditure in Governmental Funds Financial
Statements, but the repayment reduces long-term liabilities in the Government-Wide
Statement of Net Assets.
This amount represents long-term debt repayments
495,000
Bond issuance premium is recognized as other financing sources in the Governmental Funds
Financial Statements, but is amortized over the life of the bonds on the Government-Wide
Financial Statements and reported as a reduction of interest expense.
3,263
Accrual of Noncurrent Items
Revenues that have not yet met the revenue recognition criteria in the Governmental Fund
Financial Statements are recognized as revenue in the Government-Wide Financial
St t
Statements.
t Thi
This amountt represents
t th
the change
h
iin d
deferred
f
d revenue ffrom th
the prior
i year.
220,871
Interest expense on long-term debt is reported in the Government-Wide Statement of
Activities and Changes in Net Assets, but they do not require the use of current financial
resources. Therefore, interest expense is not reported as expenditures in the Governmental
Funds Financial Statements. The following amount represents the change in accrued interest
from prior year.
(24,754)
$
Change in Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
24
142,588
NOTES TO BASIC
FINANCIAL STATEMENTS
25
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26
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements
For the period July 1, 2011 through January 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Redevelopment Agency of the City of Walnut Creek, California, (Agency)
have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to
governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing governmental accounting and financial reporting principles. The more significant
of the Agency’s accounting policies are described below.
A. Description of Reporting Entity
The Agency is a blended component unit of the City of Walnut Creek (City). The City Manager acts as the
Agency’s Executive Director and the City Council acts as the governing commission, which exerts significant
influence over its operations. Accordingly, the financial operations of the Agency have also been included in
the financial statements issued by the City.
The Agency was established on October 4, 1971. The Agency Board members were appointed by the City
Council. Redevelopment Plans were adopted on October 4, 1971 and December 16, 1974 for two
Redevelopment Project Areas. The two project areas were known as the Mount Diablo Project Area and the
South Broadway Project Area. These two Redevelopment Areas were merged together into one in May 1999 to
facilitate project financing. The Agency was established pursuant to the Community Development Law of the
State of California as codified in Part I of Division 24 of the State of California Health and Safety Code. As
such, the Agency acts as a legal entity, separate and distinct from the City, even though the City Council serves
as the Agency’s Commissioners.
As discussed in Note 6, on February 1, 2012, the Redevelopment Agency of the City of Walnut Creek dissolved
and its assets and functions were transferred to the City of Walnut Creek, a successor agency and a successor
to the Agency’s housing function. The financial statements do not include any adjustments that might result
from this dissolution.
B. Basis of Accounting/Measurement Focus
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, revenues, and expenditures or expenses, as appropriate.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements - The Agency’s government-wide financial statements include a
Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present
summaries of governmental activities for the Agency.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of
accounting. Accordingly, all of the Agency’s assets and liabilities, including capital assets, and long-term
liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents
changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which
they are earned, while expenses are recognized in the period in which the liability is incurred.
27
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting/Measurement Focus, Continued
Governmental Fund Financial Statements - Governmental fund financial statements include a Balance Sheet and a
Statement of Revenues, Expenditures and Changes in Fund Balances for all governmental funds. An
accompanying schedule is presented to reconcile and explain the differences in net assets, as presented in these
statements, to the net assets presented in the government-wide financial statements. The Agency has
presented all funds as major funds.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and
the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included
on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present
increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net
current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period
in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after
year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to
accrual by the Agency are incremental property taxes and interest earnings. Expenditures are recorded in the
accounting period in which the related fund liability is incurred.
Deferred revenues arise when potential revenues do not meet both the “measurable” and “available” criteria
for recognition in the current period. Deferred revenues also arise when the government receives resources
before it has a legal claim to them, as when grant monies are received prior to incurring qualifying
expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government
has a legal claim to the resources, the deferred revenue is removed from the combined balance sheet and
revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided
to explain the differences created by the integrated approach of GASB Statement No. 34.
The Agency applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations
currently in effect) as well as the following pronouncements issued on or before November 30, 1989, unless
those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards
Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting
Research Bulletins (ARB) of the committee on Accounting Procedure. The Agency applies all applicable FASB
Statements and Interpretations issued after November 30, 1989, except those that conflict with or contradict
GASB pronouncements.
28
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for: a) investments with
maturities of one year or less at time of purchase, which are stated at amortized cost; and b) non negotiable
certificates of deposit, which that are reported at cost, because they are not transferable and they have terms
that is not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are
recognized as investment income and as changes to designated fund balance for that fiscal year. Investment
income includes interest earnings, changes in fair value and any gains or losses realized upon the liquidation,
maturity or sale of investments.
Cash and investments are pooled with other City funds for investment purposes, with interest being allocated
quarterly to funds based upon average month end pooled cash and investment balances. Interest income for
cash and investments excluded from pooled cash is credited directly to the related fund. Investment policies
applicable to the Agency’s funds are those of the City and are included in the notes to the City’s financial
statements.
D. Fund Balances
In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions. This new standard does not change the total
amount of a given fund balance, but it substantially alters the categories and terminology used to describe the
components that make up a fund balance.
The term fund balance is used to describe the differences between assets (what is owned) and liabilities (what
is owed) reported within a fund. In the past, fund balances have been classified into three separate
components: Reserved, Designated, and Undesignated. GASB Statement No. 54 defines five new components
of fund balance that will replace the current existing three components. The five new components are:
Nonspendable Fund Balance. That portion of a fund balance that includes amounts that cannot be spent because
they are either; (a) not in a spendable form, such as prepaid items, inventories of supplier, or loans receivable;
or (b) legally or contractually required to be maintained in tact, such as the principal portion of an endowment.
This category was traditionally reported as a ‘reserved’ fund balance under the old standard.
Restricted fund Balance. That portion of a fund balance that reflects constraints placed on the use of resources
(other than nonspendable items) that are either (a) externally imposed by creditors (such as through debt
covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation. This category was traditionally reported as a ‘reserved’ fund
balance under the old standard.
Committed Fund Balance. That portion of a fund balance that includes amounts that can only be used for specific
purposes pursuant to constraints imposed by formal action of the governments’ highest level of decision
making authority, and remain binding unless removed in the same manner. This category was traditionally
reported as a ‘designated’ fund balance under the old standard.
29
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
D. Fund Balance, Continued
Assigned Fund Balance. That portion of a fund balance that includes amounts that are constrained by the
government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent
needs to be established at either the highest level of decision making, or by an official designated for that
purposed. This category was traditionally reported as a ‘designated’ fund balance under the old standard.
Unassigned Fund Balance. That portion of a fund balance that includes amounts that do not fall into one of the
above four categories. The General Fund is the only fund that should report this category of fund balance. This
category was traditionally reported as an ‘undesignated’ fund balance under the old standard.
The new categories and terminology reflect an approach that focuses, not on financial resources available for
appropriation within a fund, but on the extent to which the Agency is bound to observe constraints imposed
on the specific purposes for which amounts in the fund can be spent.
The Redevelopment Agency of the City of Walnut Creek formally adopted the City’s GASB Statement No. 54
in the fiscal year ended June 30, 2011. In the government fund financial statements, the Affordable Housing
Program and Project Area fund balances are reported as Restricted for the seven month period ended
January 31, 2012.
Mt. Diablo Project Area
Affordable
Housing
Program
Restricted:
Encumbrances
$ 365,528
Low and moderate income
895,056
Capital Projects
Debt Service
Total Restricted
1,260,584
Total Fund Equity
$ 1,260,584
Debt
Service
South Broadway Project Area
Capital
Project
Debt
Service
Capital
Project
Totals
$
857,721
857,721
$
3,420,704
3,420,704
$
367,595
367,595
$
685,746
685,746
$
$
857,721
$ 3,420,704
$
367,595
$
685,746
$ 6,592,350
365,528
895,056
4,106,450
1,225,316
6,592,350
E. Net Assets
In the government-wide financial statements, net assets are classified in the following categories:
Invested in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced
by outstanding debt that contributed to the acquisition, construction or improvement of the assets.
Restricted Net Assets – This amount is restricted by external creditors, grantors, contributors, or laws or
regulations of other governments.
30
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Net Assets, continued
Unrestricted Net Assets – This amount is all net assets that do not meet the definition of “invested in capital
assets, net of related debt” or “restricted net assets.”
F. Restricted Cash and Investments
Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of long-term debt
issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of
participation or tax allocation bonds, and have been invested only as permitted by specific State statutes or
applicable City ordinance, resolution or bond indenture.
G. Property Taxes
Incremental property tax revenues are established pursuant to California Community Redevelopment law.
They represent the excess of taxes levied and collected each year in the project areas over and above the
amount which would have been produced, at current rates, by the assessed value as shown on the last
equalized property tax assessment roll, prior to the effective date of the ordinance establishing the original
project areas.
Property taxes are levied based on a fiscal year (July 1 – June 30). Property taxes attach as an enforceable lien
on property as of January 1. Taxes are levied on July 1 and are payable in two installments on December 10
and April 10. The County of Contra Costa bills and collects the property taxes for the Agency. Under the
County’s Teeter Plan, the County remits the entire amount levied and handles all delinquencies, retaining the
interest and penalties. The property taxes are remitted to the Agency in installments during the year.
H.
Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate funds.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable premium or discount.
Issuance costs are reported as deferred charges. Interest on long-term debt is recognized as the liability is
incurred.
Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation
of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets.
31
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Long term debt, continued
For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during
the current period. Bond proceeds are reported as other financing sources net of the applicable premium or
discount. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt
service expenditures. Interest expenditures for governmental funds are recognized when payment is done.
I.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
2. CASH AND INVESTMENTS
The following is a summary of cash and investments at January 31, 2012:
Equity in City Investment Pool
Cash with Fiscal Agent
Total cash and investments
$5,419,330
1,225,316
$ 6,644,646
Equity in City Investment Pool
The Agency has no separate bank accounts or investments other than in its equity in the cash and investment
pool managed by the City. The Agency is a voluntary participant in that pool. This pool is governed by and
under the regulatory oversight of the investment policy adopted by the City Council of the City. The Agency
has not adopted an investment policy separate from that of the City. The fair value of the Agency’s investment
in this pool is reported in the accompanying financial statements at amounts based upon the Agency’s pro-rata
share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal
is based upon the accounting records maintained by the City, which are recorded at the estimated fair market
value.
Cash with Fiscal Agent
The Agency also had restricted Cash and Investments in the amount of $1,225,316, which was held by fiscal
agents in money market funds solely invested in U.S. Treasury Notes, and is designated for debt service
payments.
32
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
2. CASH AND INVESTMENTS, Continued
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather
than the general provisions of the California Government code or the City’s investment policy. The table below
identifies the investment types that are authorized for investments held by bond trustee. The table also
identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit
risk.
Maximum
Maturity
None
3 years
360 days
270 days
None
None
None
Authorized Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptance
Commercial Paper
Money Market Mutual funds
Investment Contracts
California Local Agency Investment Fund
Maximum
Percentage
Allowed
None
None
None
None
None
None
None
Maximum
Investment in
One Issuer
None
None
None
None
None
None
None
3. NOTES RECEIVABLE
At January 31, 2012, notes receivable consisted of the following:
Balance
July 1, 2011
Home Rehabilitation Loans $ 1,046,527
First Time Home Buyers
2,084,751
Acalanes Court Apartments
1,180,732
500,000
Casa Montego II, Inc.
Ivy Hill Apartments
551,392
Sierra Drive Apartments
49,503
The Oak Apartments
368,000
Third Avenue Apartments
1,166,000
Villa Vasconcellos Apts.
695,625
Pleasant Creek Homes
Total
$ 7,642,530
Additions
$
199,733
21,138
$ 220,871
Deletions
$
$
-
Balance
January 31,
2012
$ 1,046,527
2,084,751
1,180,732
500,000
551,392
49,503
368,000
1,365,733
695,625
21,138
$ 7,863,401
Home Rehabilitation Loans
The Agency administers a housing rehabilitation loan program using Community Development Block Grant
funds and Redevelopment Agency Low and Moderate Income Housing funds. Under these Programs,
individuals with incomes below a certain level are eligible to receive low interest twenty-year loans, secured by
deeds of trust, for construction work on their homes. The loan repayments may be amortized over the life of
the loans, deferred or a combination of both. At January 31, 2012, these loans totaled $1,046,527 and the
program included 25 participants.
33
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
3. NOTES RECEIVABLE, Continued
First-Time Homebuyers
The Agency administers a first time homebuyer’s loan program which was established during 1995 to provide
financing for applicants with moderate income or less who are unable to qualify for a home purchase without
down payment assistance. Under this program, individuals with income below a certain level are eligible to
receive deferred loans which are secured by second deeds of trust, bear interest (in the form of equity earnings
from the appreciation of the property equal to the percentage of the purchase price) and are due and payable at
the time the homes are sold, refinanced or transferred. At January 31, 2012, these loans totaled $2,084,751 and
the program included 44 participants.
Acalanes Court Apartments
At January 31, 2012, the Agency held a note receivable from Trinity Avenue Apts., L.P. with an outstanding
balance of $1,180,732. The promissory note was entered into on February 20, 2004 for $1,112,080 (amended and
restated on February 17, 2005 for an additional $150,000) to facilitate the building of a 17-unit rental apartment
complex, of which eight units are required by the Agency to be provided for income eligible households
whose gross household income does not exceed 60% of the area median income and of which the remaining
nine units are required by the County to be affordable to between 30% and 60% of the area median income.
The note accrues interest at a rate of 3% per annum from the date of advance(s) until paid in full. Principal
and accrued interest are to be paid annually commencing on May 1 following close of permanent financing of
the Project Improvements equal to Lenders’ share of residual receipts. Any remaining unpaid principal and
interest are due in full 55 years from issuance of a certificate of occupancy. A certificate of occupancy was
issued on October 3, 2006.
Casa Montego II , Inc.
At January 31, 2012, the Redevelopment Agency of the City of Walnut Creek held a note receivable from Casa
Montego II, Inc. in the amount of $500,000. The promissory note was entered into on November 15, 2007 for
acquisition of real property located at 180 La Casa Via in Walnut Creek, California and the development of
approximately 33 units of multifamily rental housing on that property pursuant to the Agreement. No interest
shall accrue on the unpaid principal balance, except in the event of default, in which case interest shall accrue
on the date of the default and continuing until such time as the Loan is repaid in full or the default is cured, at
the default rate of the lesser of ten percent (10%), compounded annually, or the highest rate permitted by law.
Except as provided herein, the principal sum of $500,000 and all other sums hereunder shall be due and
payable in full 55 years from the completion of construction of the project, as evidenced by a certificate of
occupancy or similar document. Commencing on May 1 of 2010 and May 1 of each year thereafter for the Term
of the Loan, Borrower shall make repayments of the outstanding principal on the Loan equal to the Agency’s
proportionate share of the lenders’ share of Residual Receipts, as further described in the Intercreditor
Agreement. The project did not generate residual receipts for the seven month period for 2011-12.
34
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
3. NOTES RECEIVABLE, Continued
Ivy Hill Apartments/Regent on the Park Condominiums
At January 31, 2012, the Agency held a note receivable from the Ivy Hill Apartments for Housing in the
amount of $551,392. The note entered into on August 1, 2000, consists of a long-term loan granted to Walnut
Creek Housing Partners, Alma Investors and New Cities Land Company (the developer) to finance a portion
of the cost of developing the Apartment Project, including land acquisition costs. The loan is due in 55 years
on February 1, 2055; it accrues interest at the rate of 5%. No principal or interest payments are due until the
maturity date. The loan, and all accrued interest, will be forgiven on the maturity date if the Apartment Project
was operated in compliance with the regulatory agreement throughout the term of the loan. The loan is
secured by a deed of trust against the apartment site, subordinate to the senior construction and permanent
loans entered into by the developer and the short-term loan. As a condition of the loans, 47 units were
encumbered with 55 year covenants which require the units to be rented to individuals with very low incomes,
and shall be rented at a rate specified in the agreement.
Sierra Drive Apartments
At January 31, 2012, the Agency held a note receivable from Affordable Housing Association in the amount of
$49,503. The note was entered into on December 8, 1995 to facilitate the renovation of a 28 unit apartment
complex. As a condition of the note, 14 units were encumbered with 55 year covenants, which require the
units to be rented to individuals with low and moderate incomes. Commencing December 8, 2001 the note
accrues interest at a rate of 3% until paid in full. Principal and interest payments are to be paid annually, if the
project generates surplus cash. Any remaining unpaid principal and interest is due on January 1, 2026. The
project did not generate surplus cash for the seven month period for 2011-12.
The Oaks Apartments
At January 31, 2012, the Agency held a note receivable from the Ecumenical Association for Housing in the
amount of $368,000. The note was entered into on July 14, 1995 to facilitate the building of a 36 unit apartment
complex to provide housing for individuals with incomes 60% or more below the Bay Area median income
level. The note accrues interest at a rate of 5% beginning July 14, 2002; and repayment commenced on
December 31, 2001, and will continue provided that the project generates surplus cash. Any remaining unpaid
principal and interest is due in full August 1, 2022. The project did not generate surplus cash for the seven
month period for 2011-12.
35
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
3. NOTES RECEIVABLE, Continued
Third Avenue Apartments
At January 31, 2012, the Agency held a note receivable from Satellite Housing, Inc. with an outstanding loan
balance of $1,365,733. The promissory note was entered into on January 6, 2009 for $793,500 (amended and
restated for an additional loan of $372,500 on March 17, 2009 and amended for a second additional loan of
$216,400 on March 1, 2011) for a total of $1,382,400 to facilitate the acquisition of real property located at Third
Avenue and the building of a 48-unit rental apartment complex. The note accrues interest at a rate of 3% per
annum from the date of advance(s) until paid in full. Principal and accrued interest are to be paid annually
commencing on May 1 following completion of the construction of the Development. Any remaining unpaid
principal and interest are due in full 55 years from issuance of a certificate of occupancy. As of
January 31, 2012 this certificate had not been issued.
Villa Vasconcellos Apartments
At January 31, 2012 the Agency held a note receivable from Resources for Community Development with an
outstanding loan balance of $695,625. The promissory note was entered into October 7, 2005 for $720,000 to
facilitate the building of a 72-unit rental apartment complex to provide housing for very low-income
households. No interest is to be accrued on the unpaid principal balance, except in the event of a default, in
which case interest shall begin to accrue on the date of the default and continue until such time as the Loan is
repaid in full, or the default is cured, at the default rate of the lesser of ten percent (10%), compounded
annually or the highest rate permitted by law. Principal is due on May 1 following completion of the
construction equal to the Agency’s proportionate share of the Lenders’ share of Residual receipts. Principal
sum and all other sums shall be due and payable in full 55 years from the completion of the project as
evidenced by a certificate of occupancy or similar document. A certificate of occupancy was issued
April 1, 2008.
Pleasant Creek Homes
At January 31, 2012, the Agency held a note receivable from Habitat for Humanity East Bay, a California
nonprofit public benefit corporation (“Borrower”), in the original amount of $370,000. The note was entered
into March 16, 2011 to facilitate the acquisition of certain real property located on Barkley Avenue in Walnut
Creek and the development of approximately ten affordable homes on that property and other property
controlled by the Borrower. The principal sum shall be due and payable on the earliest of (A) five years form
the date of the Note, (B) the date the last Affordable Home in the Project is sold or refinanced, or (C) an Event
of Default by Borrower that has not been cured as provided in the Loan Agreement. No interest shall accrue on
the unpaid principal balance, except in the event of a default, in which case interest on the Loan shall begin to
accrue on the date of the default and continuing until such time as the Loan is repaid in full or the default is
cured, at the default rate of the lesser of ten percent (10%), compounded annually or the highest rate permitted
by law. At January 31, 2012, the loan outstanding balance held by the Agency was $21,138.
36
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
4. INTERFUND TRANSACTIONS
Fund Statements
Transfers
Operating transfers during the seven month period ended January 31, 2012, comprised the following:
Fund Making Transfers
Mount Diablo Capital Projects
Mount Diablo Capital Projects
South Broadway Capital Projects
South Broadway Capital Projects
Fund Receiving Transfers
Affordable Housing - RDA
Mount Diablo Debt Service
Affordable Housing - RDA
South Broadway Debt Service
Amount
$
210,000
406,951
90,000
174,408
Total Interfund Transfers
$
881,359
These transfers were made using property tax increment revenue received during the period to fund the
Agency’s affordable housing programs and debt service on its outstanding bonds.
5. LONG-TERM DEBT
The Summary of Changes in Long-Term Debt for Governmental Activities for the seven month period ended
January 31, 2012 is as follows:
Balance
July 1, 2011
Governmental Activities
Tax Allocation Bonds - 2000
Tax Allocation Bonds - 2003A
Tax Allocation Bonds - 2003B
Outstanding principal
Premium on bond issuance
Total governmental
activity debt
$ 1,640,000
2,375,000
Additions
Retirements
Balance
Jan. 31, 2012
Classification
Amounts
Due in More
Amounts
than One
Due Within
Year
One Year
$
$
$
$
330,000
27,973
$ 4,372,973
-
$
-
37
495,000
3,263
$
498,263
1,640,000
1,880,000
330,000
24,710
$
3,874,710
$
545,000
$ 1,640,000
1,335,000
5,594
330,000
19,116
550,594
$ 3,324,116
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
5. LONG-TERM DEBT, Continued
Tax Allocation Bonds Series 2000
Tax Allocation Bonds in the amount of $2,865,000 were issued on March 1, 2000. The Bonds were issued to
provide funds for redevelopment activities within the Merged Project Area and for Seismic retrofits and other
improvements to a City owned parking structure. The Bonds are due in annual principal installments of
$140,000 to $230,000 through 2022. Interest rates range from 5.7% to 6.2% and interest is payable semi-annually
on February 15 and August 15. The funding source for the repayment is tax revenue allocated to the Agency
from the project area. The total principal amount outstanding as of January 31, 2012, was $1,640,000.
The annual debt service requirements for the 2000 Tax Allocation Bonds outstanding at January 31, 2012 were
as follows:
Year Ending
June 30,
2012 *
2013
2014
2015
2016
2017-2021
2022
Totals
Principal
$
$
140,000
150,000
160,000
960,000
230,000
1,640,000
*Period from February 1, 2012 through June 30, 2012
38
Interest
$
$
49,015
98,030
94,040
85,738
76,785
224,498
7,130
635,236
Total
$
49,015
98,030
234,040
235,738
236,785
1,184,498
237,130
$ 2,275,236
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
5. LONG-TERM DEBT, Continued
Tax Allocation Bonds Series 2003 A
Tax Allocation Bonds in the amount of $6,475,000 were issued on November 1, 2003. The Bonds were issued to
refund and defease the 1993 Revenue Bonds, Series A, to acquire property in the Merged Project Area and to
relocate a Veterans Hall currently located on the property. The Bonds are due in annual principal installments
of $260,000 to $545,000 through 2019. Interest rates range from 4.0% to 4.7% and interest is payable semiannually on February 15 and August 15. The funding source for the repayment is tax revenue allocated to the
Agency from the project area. The total principal amount outstanding as of January 31, 2012, was $1,880,000.
The annual debt service requirements for the Series 2003 A Tax Allocation Bonds outstanding at
January 31, 2012 were as follows:
Year Ending
June 30,
Principal
Interest
Total
2 012*
2013
2014
2015
2016
2017-2019
$
545,000
290,000
260,000
265,000
520,000
$
40,100
69,300
52,310
40,695
29,473
29,387
$
40,100
614,300
342,310
300,695
294,473
549,387
Totals
$
1,880,000
$
261,265
$
2,141,265
*Period from February 1, 2012 through June 30, 2012
39
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
5. LONG-TERM DEBT, Continued
Tax Allocation Bonds Series 2003 B
Tax Allocation Bonds in the amount of $2,335,000 were issued on November 1, 2003. The Bonds were issued to
refund and defease the 1993 Revenue Bonds, Series A, and to acquire property in the Merged Project Area and
relocate a Veterans Hall currently located on the property. The Bonds were issued at a premium of $72,725,
which will be amortized over the life of the Bonds on the government-wide statements using the straight-line
method.
The Bonds are due in annual principal installments of $140,000 to $190,000 through 2015. Interest rate is 6.0%
and interest is payable semi-annually on February 15 and August 15. The funding source for the repayment is
tax revenue allocated to the Agency from the project area. The total principal amount outstanding as of
January 31, 2012, was $330,000.
The annual debt service requirements for the Series 2003 B Tax Allocation Bonds outstanding at
January 31, 2012 were as follows:
Year Ending
June 30,
2012*
2013
2014
Principal
$
2015
Totals
$
190,000
$
Plus unamortized premiums
Total
140,000
Interest
330,000
9,900
19,800
15,600
Total
$
5,700
$
51,000
9,900
19,800
155,600
195,700
$
381,000
24,710
$
354,710
* Period from February 1, 2012 through June 30, 2012
The Agency’s Tax Allocation Bonds are collateralized by the pledging of tax increment revenues. The amount
and term of the remainder of these commitments are indicated in the debt service to maturity tables presented
above. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the
debt descriptions in the accompanying notes. For the current period, the pledged tax increment revenue
amounted to $469,860 which represented 95% coverage of debt service paid.
40
Redevelopment Agency of the City of Walnut Creek
Notes to the Basic Financial Statements, Continued
For the period July 1, 2011 through January 31, 2012
6. SUBSEQUENT EVENTS
A. Recent changes in legislation affecting California Redevelopment Agencies
On June 28, 2011, Assembly Bill x1 26 (“ABx1 26”) was enacted. This legislation is referred to herein as the
Redevelopment Dissolution Law. On December 29, 2011, the California Supreme Court upheld the
constitutionality of AB x1 26, and all redevelopment agencies in California were dissolved by operation of law
effective February 1, 2012. The legislation provides for successor agencies and oversight boards that are
responsible for overseeing the dissolution process and the wind down of redevelopment activity. At the City’s
meeting on January 17, 2012, the City Council affirmed its decision to serve as the Successor Agency to the
Redevelopment Agency of the City of Walnut Creek and to retain the housing assets and functions previously
performed by the Redevelopment Agency of the City of Walnut Creek, effective February 1, 2012.
Since the legislation was adopted, the City Council and Redevelopment Agency Board took several actions to
comply with its requirements. One of its requirements was to develop an Enforceable Obligations Payment
Schedule (“EOPS”) detailing the obligations of the Agency (and its 20% Low and Moderate Income Housing
Fund, which was administered by the City’s Housing Department). The EOPS listed the Agency’s obligations
and the amount due on the obligations. Enforceable obligations include: bonds secured by both the 80% and
20% funds; loans due to third parties; payments required by law judgments or settlements’ contracts and
agreements with third parties administrative costs, and funds borrowed from the 20% Low and Moderate
Income Housing Fund. Additionally, the EOPS included a listing of Agency obligations to the City.
A schedule was adopted by the Agency at a regular meeting held September 20, 2011.
At a regular meeting on March 20, 2012, the Walnut Creek City Council, as Successor Agency to the
Redevelopment Agency of the City of Walnut Creek, approved in form its Recognized Obligation Payment
Schedule (“ROPS”). The ROPS amended, restated and replaced the Redevelopment Agency of the City of
Walnut Creek’s EOPS.
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay
the estimated annual installment payments on enforceable obligations of the former redevelopment agency
until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have
been liquidated. Funds that formerly would have been distributed to the Redevelopment Agency as tax
increment are now deposited into a Redevelopment Property Tax Trust Fund (“RPTTF”) and used to pay
obligations listed on the approved Recognized Obligation Payment Schedule (ROPS).
B. Successor Agency
The financial statements as of January 31, 2012 and for the period July 1, 2011 through January 31, 2012, serve
as the final financial statements for the Agency. Effective February 1, 2012, all the activities related to the
winding down of the former Agency’s financial affairs will be reported in the financial statements for the
Successor Agency of the Redevelopment Agency of the City of Walnut Creek and included in the City of
Walnut Creek’s Comprehensive Annual Financial Report (CAFR) as a fiduciary fund (private-purpose trust
fund) for non-housing activity only. Housing Successor Agency activity will be reported as a special revenue
fund.
41
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42
REQUIRED
SUPPLEMENTARY INFORMATION
43
Redevelopment Agency of the City of Walnut Creek
Required Supplementary Information
For the period July 1, 2011 through January 31, 2012
1. BUDGETARY INFORMATION
The Agency adopts a budget annually to be effective July 1 for the ensuing fiscal year. Budgeted expenditures
are adopted through the passage of a resolution. This resolution constitutes the maximum authorized
expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the
budget by the Agency Board.
An operating budget is adopted each fiscal year for all Special Revenue and Debt Service Funds. Public
hearings are conducted on the proposed budgets to review all appropriations and sources of financing.
Capital projects are budgeted by the City over the term of the individual projects. Since capital projects are
not budgeted on an annual basis, they are not included in the budgetary data.
Expenditures are controlled at the fund level for all budgeted departments within the Agency. This is the
level at which expenditures may not legally exceed appropriations. Budgeted amounts for the Combined
Statement of Revenues, Expenditures and Other Financing Sources (Uses) – Budget and Actual include budget
amendments approved by the Agency Board.
The budgets are adopted on a basis substantially consistent with generally accepted accounting principles
(GAAP).
Any amendments or transfers of appropriations between object group levels within the same department
must be authorized by the City Manager. The Agency Board must approve any amendments to the total level
of appropriations for a fund, transfers between funds, or supplemental appropriations financed by
unanticipated revenues.
Formal budgetary integration is employed as a management control device. Encumbrance accounting, under
which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order
to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary
integration. Encumbrances outstanding at year-end are reported as reservations of fund balances and do not
constitute GAAP basis expenditures or liabilities because the commitments will be honored during the
subsequent year. The commitments will be reappropriated and honored in the subsequent year.
44
Redevelopment Agency of the City of Walnut Creek
Required Supplementary Information, Continued
For the period July 1, 2011 through January 31, 2012
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Affordable Housing Program - Special Revenue Fund
Variance with
Final Budget
Budgeted Amount
Original
Positive
Final
Actual
(Negative)
REVENUES:
Interest income
$
Total revenues
4,100
$
5,203
$
5,202
$
(1)
4,100
5,203
5,202
(1)
880,000
500,256
294,555
205,701
880,000
500,256
294,555
205,701
(875,900)
(495,053)
(289,353)
205,700
509,045
393,972
300,000
(93,972)
509,045
393,972
300,000
(93,972)
(101,081)
10,647
EXPENDITURES:
Housing
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in (out)
Total other financing sources (uses)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
$
(366,855)
$
FUND BALANCES:
Beginning of year
1,249,937
End of year
$
45
1,260,584
$
111,728
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46
STATISTICAL SECTION
This part of the Redevelopment Agency of the City of Walnut Creek's basic financial statements presents
detailed information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the Agency.
Index
Page
Financial Trends
These schedules contain trend information to help the reader understand how the
Agency’s financial performance and well-being have changed over time.
48-56
Revenue Capacity
These schedules contain information to help the reader assess the City’s most
significant local revenue sources, including property tax increments.
57-59
Debt Capacity
These schedules present information to help the reader assess the affordability of the
Agency’s current levels of outstanding debt and the Agency’s ability to issue additional
debt in the future.
60-61
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Agency’s financial activities take place.
62
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the Agency’s financial report relates to the services the City
provides and the activities it performs.
47
63
Redevelopment Agency of the City of Walnut Creek
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
Governmental activities:
Invested in capital assets,
net of related debt
$
Restricted
Unrestricted
Total governmental activities net assets
-
$
1,758,619
(7,606,140)
$
(5,847,521)
48
$
3,101,526
(7,095,550)
$
(A) Amounts are for the period from July 1, 2011 through January 31, 2012.
Source: City Finance Department
-
(3,994,024)
-
$
5,220,086
(7,676,929)
$
(2,456,843)
2,807,305
5,963,455
(8,601,256)
$
169,504
Fiscal Year
2007
2008
2009
2010
2011
2012
(A)
$
2,807,305
$
2,287,770
(2,144,185)
$
2,950,890
2,807,305
$
6,719,667
(3,495,526)
$
6,031,446
2,807,305
$
7,570,244
(1,230,502)
$
2,807,305
$
8,323,588
(226,553)
9,147,047
$
10,904,340
-
$
8,892,467
1,446,971
$
10,339,438
9,123,985
1,358,041
$
10,482,026
(Concluded)
49
Redevelopment Agency of the City of Walnut Creek
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003
2004
2005
Expenses
Governmental activities:
Community Development
$
76,311
Housing
$
60,712
ERAF
312,542
$
282,975
758,778
2,195,079
-
-
-
Interest on long-term debt
722,075
766,695
612,830
Capital Contribution to City
Total governmental activities expenses
859,098
1,362,212
3,566,687
Total primary government expenses
$
859,098
$
1,362,212
$
3,566,687
$
-
$
-
$
-
Program Revenues
Governmental activities:
Charges for services:
Housing
Total governmental activities program revenues
-
-
-
(859,098)
(1,362,212)
(3,566,687)
Net revenues (expenses)
Governmental activities:
Total primary government net expense
$
(859,098)
$
(1,362,212)
$
(3,566,687)
$
2,433,477
$
2,833,782
General revenues and other changes in net assets
Governmental activities:
Incremental Property Taxes
$
1,798,264
Investment income, unrestricted
107,051
148,486
209,622
-
175,985
457,761
2,060,464
-
1,905,315
3,215,709
5,103,868
1,046,217
1,853,497
1,537,181
Other general revenues
Transfers
Total governmental activities
Total primary government changes in net assets
Governmental activities:
Total primary government
$
1,046,217
(A) Amounts are for the period from July 1, 2011 through January 31, 2012.
Source: City Finance Department
50
$
1,853,497
$
1,537,181
Fiscal Year
2006
2007
2008
2009
2010
2011
2012
(A)
$
66,223
$
1,049,214
800,000
$
684,716
85,427
$
997,151
187,948
$
356,966
$
138,855
252,446
300,457
279,486
$
143,392
73,684
-
-
-
-
1,382,006
284,531
-
549,087
435,282
472,553
423,581
369,127
284,845
130,597
1,664,524
1,919,998
1,555,131
863,975
2,408,556
2,807,305
3,795,022
347,673
$
1,664,524
$
1,919,998
$
1,555,131
$
863,975
$
2,408,556
$
3,795,022
$
347,673
$
-
$
-
$
-
$
170,394
$
404,718
$
64,215
$
-
-
-
-
(1,664,524)
(1,919,998)
(1,555,131)
170,394
(693,581)
$
(1,664,524)
$
(1,919,998)
$
(1,555,131)
$
$
3,398,093
$
3,408,132
$
3,521,500
$
$
404,718
(693,581)
3,640,902
64,215
(2,003,838)
-
(3,730,808)
(347,673)
$
(2,003,838)
$
(3,730,808)
$
(347,673)
$
3,709,062
$
3,123,126
$
469,860
295,328
269,561
242,140
168,280
52,069
42,780
20,401
597,450
-
1,011,975
11,716
872,047
-
-
-
-
-
4,290,871
4,701,384
4,635,687
3,809,182
3,761,131
3,165,906
490,261
2,626,347
2,781,386
3,080,556
3,115,601
1,757,293
2,626,347
$
2,781,386
$
3,080,556
$
3,115,601
$
1,757,293
(564,902)
$
(564,902)
142,588
$
142,588
(Concluded)
51
Redevelopment Agency of the City of Walnut Creek
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
Revenues
Incremental Property Taxes
Use of money and property
Other revenues
$
Total revenues
1,798,264
107,051
197,411
$
2,433,477
148,486
269,782
$
2,833,782
209,622
251,530
$
3,398,093
295,328
111,545
2,102,726
2,851,745
3,294,934
3,804,966
76,311
388,455
-
312,542
282,975
-
758,778
2,195,079
-
66,223
924,014
-
-
-
-
2,807,305
200,000
726,200
5,465,000
765,774
415,000
624,218
825,000
564,149
1,390,966
6,826,291
3,993,075
5,186,691
Expenditures
Current:
Community development
Housing
SERAF
Capital outlay:
General public ways and facilities
Debt service:
Principal
Interest and issuance costs
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
711,760
(3,974,546)
(698,141)
(1,381,725)
927,924
(927,924)
8,882,725
1,520,610
(1,062,849)
1,538,642
(1,538,642)
5,333,214
(5,458,414)
g sources (uses):
Other financing
Proceeds from debt issuance
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
$
9,340,486
711,760
$
(A) Amounts are for the period from July 1, 2011 through January 31, 2012.
Source: City Finance Department
52
5,365,940
$
(698,141)
(125,200)
$
(1,506,925)
Fiscal Year
2007
2008
2009
2010
2011
2012
(A)
$
3,408,132
269,561
36,157
$
$
3,640,902
168,280
170,394
$
3,709,062
52,069
404,718
$
3,123,126
42,780
64,215
$
469,860
20,401
-
3,713,850
3,826,030
3,979,576
4,165,849
3,230,121
490,261
800,000
684,716
-
85,427
997,151
-
187,949
1,489,255
-
356,966
966,394
1,382,006
138,855
547,108
284,531
143,392
294,555
-
-
-
-
-
-
-
850,000
453,008
1,022,829
489,879
1,071,184
442,818
1,131,380
389,859
2,519,759
340,058
495,000
109,106
2,787,724
2,595,286
3,191,206
4,226,605
3,830,311
1,042,053
926,126
1,230,744
788,370
2,251,470
(2,239,754)
2,332,905
(2,332,905)
11,716
$
3,521,500
242,140
62,390
937,842
2,159,213
(2,159,213)
$
1,230,744
(60,756)
(600,190)
(551,792)
2,182,342
(2,182,342)
3,481,070
(3,481,070)
881,359
(881,359)
$
788,370
$
(60,756)
$
(600,190)
$
(551,792)
(Concluded)
53
Redevelopment Agency of the City of Walnut Creek
Fund Balances of Governmental Funds
Eight Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
All Governmental Funds:
Reserved
$
-
$
1,402,904
$
2,240,996
$
3,312,829
Unreserved, reported in:
Special revenue funds
Capital projects funds
Undesignated
Total all governmental funds
1,000,590
1,933,768
333,481
581,562
50,508
2,946,373
3,010,427
183,589
-
-
-
(133,993)
$
917,105
$
6,283,045
$
5,584,904
The Agency implemented GASB 54 for the fiscal year ended June 30, 2011. See page 56 for information on last
two fiscal years. Prior year was restated for comparison purposes in the accompanying financial statements.
Source: City Finance Department
54
$
4,077,980
Fiscal Year
2007
$
$
2008
1,146,270
$
2009
1,135,504
$
2010
5,366,581
$
5,409,779
1,143,077
1,257,505
861,273
948,680
2,726,475
4,623,709
1,577,234
1,385,873
-
-
-
-
5,015,822
$
7,016,718
$
7,805,088
$
7,744,332
(Concluded)
55
Redevelopment Agency of the City of Walnut Creek
Fund Balances of Governmental Funds
Last Two Fiscal Years
(modified accrual basis of accounting)
2011
2012
All Governmental Funds:
(A)
Restricted
Encumbrances
Low and moderate income housing
Capital projects
Debt Service
586,400
663,537
4,646,208
1,247,997
7,144,142
Subtotal Restricted
Total all governmental funds
$
7,144,142
365,528
895,056
4,106,450
1,225,316
6,592,350
$
6,592,350
(A) Amounts are for the period from July 1, 2011 through January 31, 2012.
The Agency implemented GASB 54 for the fiscal year ended June 30, 2011. Prior year was restated for comparison purposes in the accompanying
financial statements.
Source: City Finance Department
56
Redevelopment Agency of the City of Walnut Creek
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30,
Taxable
Assessed
Value
City Wide Avg
Total
Direct Tax
Rate
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
$156,768,388
209,266,738
232,150,563
264,362,276
277,000,484
297,088,899
319,103,465
377,394,523
321,155,411
310,701,223
11.007%
11.400%
11.747%
11.778%
11.639%
11.578%
11.681%
11.830%
11.838%
11.819%
* Period ending January 31, 2012
NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon
the assessed value of the property being assessed. Each year, the assessed value of property may be increased by an "inflation factor"
(limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that
point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents
the only data currently available with respect to the actual market value of taxable property. The City-wide Direct Tax Rate is an average,
the actual tax rate for each property varies according to its tax rate area. This average tax rate is net of State Shifts of local property tax
revenue to Education and net of admin fees.
Source: Contra Costa County Assessor Tax Rolls
Note: Information regarding types of properties within the Agency is not available
Taxable Assessed Value
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$0
2003
2004
2005
2006
2007
2008
Fiscal Years
57
2009
2010
2011
2012*
Redevelopment Agency of the City of Walnut Creek
Principal Property Tax Payers
Current and Nine Years Ago
2012*
Taxpayer
Taxable Assessed
Value
Escuela Shopping Center LLC
$
2003
Percent of Total
City Taxable
Assessed Value
Taxable Assessed
Value
$
Percent of Total
City Taxable
Assessed Value
80,144,696
25.79%
-
-
PK II Walnut Creek
50,000,000
16.09%
-
Macerich Northwest Associates
24,578,966
7.91%
20,045,888
VNO Patson Walnut Creek LP
20,885,296
6.72%
-
-
425 Market Exchange One LLC
15,500,000
4.99%
-
-
Carol J. Haynosch
14,188,391
4.57%
-
-
Block C Development Company
10,843,774
3.49%
-
-
Safeway Inc.
8,637,394
2.78%
6,045,744
3.86%
Richard J. and Clara Clancy
7,581,594
2.44%
6,575,048
4.19%
L&H Holdings LLC
6,689,275
12.79%
2.15%
5,801,198
3.70%
1500 Botelho LLC
-
-
38,849,400
24.78%
OP Walnut Creek LLC
-
-
13,736,668
8.76%
Broadway Point Investors LLC
-
-
11,764,704
7.50%
340 Pine Street Inc.
Berkeley Land Company
Lamorinda Development & Investment
-
-
8,090,580
3,757,521
3 757 521
3,689,258
5.16%
2.40%
2 40%
2.35%
118,356,009
75.49%
$
239,049,386
76.93%
$
* Period ending January 31, 2012
Source: California Municipal Statistics
Principal Property Taxpayers
Escuela Shopping Center LLC
PK II Walnut Creek
Macerich Northwest Associates
VNO Patson Walnut Creek LP
425 Market Exchange One LLC
Carol J. Haynosch
Block C Development Company
Safeway Inc.
Richard J. and Clara Clancy
L&H Holdings LLC
58
Redevelopment Agency of the City of Walnut Creek
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
Total Tax
Ended
Levy for
June 30,
Fiscal Year
2003
$
Collected within the
Total Collections
Fiscal Year of the Levy
To Date
Percentage
Amount
1,798,264
$
Percentage
of Levy
1,798,264
100%
Amount
$
of Levy
1,798,264
100%
2004
2,433,477
2,433,477
100%
2,433,477
100%
2005
2,833,782
2,833,782
100%
2,833,782
100%
2006
3,398,093
3,398,093
100%
3,398,093
100%
2007
3,408,132
3,408,132
100%
3,408,132
100%
2008
3,521,500
3,521,500
100%
3,521,500
100%
2009
3,640,902
3,640,902
100%
3,640,902
100%
2010
3,709,062
3,709,062
100%
3,709,062
100%
2011
3,123,126
3,123,126
100%
3,123,126
100%
469,860
469,860
100%
469,860
100%
2012*
* Period ending January 31, 2012
Note: The City is enrolled in the "Teeter" Plan, where the County remits the entire amount levied
and handles all delinquencies, retaining the interest and penalties.
Source: Contra Costa County Office of the Auditor-Controller (for levies), City Finance Department
Property Tax Collections
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2003
2004
2005
2006
2007
2008
Fiscal Years
59
2009
2010
2011
2012*
Redevelopment Agency of the City of Walnut Creek
Ratios of Debt Outstanding
Last Ten Fiscal Years
Fiscal Year
Tax
Ended
June 30,
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
$
Total
Percentage
Allocation
Primary
of Personal
Per
Bonds
Government
Income
Capita
9,640,000
11,477,131
11,056,537
10,225,943
9,370,349
8,494,755
7,584,161
6,638,567
4,372,973
3,872,379
$
9,640,000
11,477,131
11,056,537
10,225,943
9,370,349
8,494,755
7,584,161
6,638,567
4,372,973
3,872,379
0.35%
0.41%
0.38%
0.34%
0.31%
0.27%
0.23%
0.20%
0.13%
0.12%
141.69
155.49
149.69
138.46
125.78
112.69
98.06
82.79
48.76
40.58
* Period ending January 31, 2012
Note:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Economic and Demographics Statistical Schedule for personal income and population data.
Source: City Finance Department
Debt Per Capita
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0
2003
2004
2005
2006
2007
2008
Fiscal Years
60
2009
2010
2011
2012*
Redevelopment Agency of the City of Walnut Creek
Ratios of Debt Outstanding, Continued
Last Ten Fiscal Years
Less: Amounts
Percentage of
Fiscal Year
Tax
Available in
Ended
Allocation
Debt Service
Net
Value of
Per
June 30,
Bonds
Fund
Amount
Property
Capita
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
$
9,640,000
11,477,131
11,056,537
10,225,943
9,370,349
8,494,755
7,584,161
6,638,567
4,372,973
3,872,379
$
293,881
1,163,041
1,134,430
1,142,702
1,146,270
1,135,505
1,126,096
1,126,114
1,126,333
1,225,316
Assessed
$
9,346,119
10,314,090
9,922,107
9,083,241
8,224,079
7,359,250
6,458,065
5,512,453
3,246,640
2,647,063
4.47%
4.44%
3.75%
3.28%
2.77%
2.31%
1.71%
1.46%
1.01%
0.85%
141.69
155.49
149.69
138.46
125.78
112.69
98.06
82.79
48.76
40.58
* Period ending January 31, 2012
Note:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Economic and Demographics Statistical Schedule for population data.
See the Assessed Value and Estimated Actual Value of Taxable Property for property values.
The assessed valuation data shown above represents the only data currently available with
respect to the actual market value of taxable property.
Source: City Finance Department
Debt as a Percentage of Assessed Value of Property
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2003
2004
2005
2006
2007
2008
Fiscal Years
61
2009
2010
2011
2012*
Redevelopment Agency of the City of Walnut Creek
City Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Ended
June 30,
Personal Income
(in Thousands)
Per Capita
Personal Income
$
$
City Population
2,828,582
Unemployment
Rate
Rank in Size of
California Cities
2003
65,962
42,882
N/A
111
2004
66,333
2,921,305
44,040
4.10%
112
2005
66,283
2,996,787
45,212
3.60%
116
2006
65,603
3,066,547
46,744
3.20%
120
2007
65,384
3,154,909
48,252
2.80%
123
2008
65,306
3,240,876
49,626
3.10%
126
2009
65,860
3,349,908
50,864
6.80%
126
2010
65,915
3,362,538
51,013
7.00%
125
2011
66,584
3,216,606
48,309
7.60%
128
2012*
65,233
3,273,783
50,186
7.00%
128
* Period ending January 31, 2012
Note: Information is not available separately for the Agency
Source: State of California Department of Finance - Population Research Unit (population), City
Finance Department, MuniServices LLC
City Population (In Thousands)
67.0
66.5
66.0
65.5
65.0
64.5
64.0
63.5
2003
2004
2005
2006
2007
2008
Fiscal Years
62
2009
2010
2011
2012*
Redevelopment Agency of the City of Walnut Creek
Miscellaneous Statistical Data on the City and Agency
January 31, 2012
Year of Incorporation
Form of Government
Number of Registered Voters (2011)
% of High School / College Graduates
Average Annual Precipitation
Average Highs/Lows
Winter
Spring
Summer
Fall
City Crime Index (US Average 319.1)
1914
Council/Manager
40,815
Area (Square Miles)
Elevation
Number of homes (2010)
Average Home Price (2010)
Median Age (2010)
Median Household Income (2010)
Population
Size ranking among California cities
Assessed Property Valuation
Unemployment Rate
96% / 57%
22"
57/40
68/46
83/55
73/50
225.6
Remaining Tax Increment CAP
as of January 31, 2012
South Broadway Project Area
$6,919,283
63
19.77
131 feet
32,681
$642,200
48
$79,629
65,233
128
$310,701,223
7.0%
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