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HomeMy WebLinkAboutRes OB-023 - Supplmnt Info (2) • ISP fe AC(a9 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Independent Accountants' Report on Applying Agreed-Upon Procedures On the Palm Desert Redevelopment Agency's And The Successor Agency to the Palm Desert Redevelopment Agency's All Other Funds Pursuant to California Health and Safety Code Section 34179.5 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS Table of Contents Page Independent Accountants' Report on Applying Agreed-Upon Procedures Related to the All Other Funds 1 Attachment A-Agreed-Upon Procedures and Findings Related to All Other Funds 2 SUPPORTING SCHEDULES AND EXHIBITS: Schedule 1 - Listing of Assets Transferred to Successor Agency as of February 1, 2012 Schedule 2 - Transfers to the City of Palm Desert Schedule 3 -Reconciliation of Financial Transactions for the Periods Ended June 30, 2010, June 30, 2011, January 1, 2012 and June 30, 2012 Schedule 4 - Listing of Assets as of June 30, 2012 Schedule 5 - Summary of Restricted Cash Schedule 5a- Unspent Bond Proceeds Project Area 1 Schedule 5b - Unspent Bond Proceeds Project Area 2 Schedule 5c - Unspent Bond Proceeds Project Area 3 Schedule 5d - Unspent Bond Proceeds Project Area 4 Schedule 6 -Nonliquid Assets as of June 30, 2012 Schedule 6a- Cash to be Retained to Satisfy Enforceable Obligations (ROPS 1) Schedule 7 - Cash Balances to be Retained for Fiscal Year 2012-2013 (ROPS 2 and ROPS 3) Schedule 7a -Supporting Schedule-Disallowed on ROPS 2 Schedule 7b - Supporting Schedule-Use of Bond Proceeds on ROPS 2 Schedule 7c - Supporting Schedule-Restricted Debt Service Payments on ROPS 2 Schedule 7d - Supporting Schedule- Cash Balance for Retention to Meet Enforceable Obligations in Fiscal Year 2012-2013 on ROPS 2 Schedule 8 - Summary of Balance Available for Allocation to Affected Taxing Agencies Exhibit 1 - Restricted Assets for Repayment of Loans made with $11,020,000 Tax Allocation Bonds Exhibit 1 a- Cash Received on Loan to the University of California- Riverside Through June 30, 2012 Exhibit lb - Promissory Note Exhibit lc -Detail Use of Bond Proceeds to Fund Loan Exhibit 1d - Certificate-Use of Proceeds, $11,020,000 Series 1998 Tax Allocation Bonds Exhibit 2 - Cash Flow Requirements for Bond Debt Service Exhibit 2a- Summary Cash Flows by Project Area Exhibit 2b - Assumptions Made for Cash Flows Exhibit 2c- Detail Cash Flows by Project Area Exhibit 2d- Project Area No. 1 Loan Agreements Exhibit 3 - Cash to be Retained for Fiscal Year 2012-2013 (ROPS 3) Exhibit 4 - Legal Services Agreement WHITE NELSON DIEHL EVANS LLP Cc,t it ic�l I`ul�li� ;3rc��unt<urt ��: C u�iaulrints Independent Accountants' Report on Applying Agreed-Upon Procedures Related to All Other Funds Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency Palm Desert, California We have performed the minimum required agreed-upon procedures (AUP) enumerated in Attachment A, which were agreed to by the California Department of Finance, the California State Controller's Office, the Riverside County Auditor-Controller, and the Successor Agency to the Palm Desert Redevelopment Agency (Successor Agency), (collectively, the Specified Parties), solely to assist you in meeting the statutory requirements of Health and Safety Code Section 34179.5 related to all other funds except for the Low and Moderate Income Housing Fund (All Other Funds) of the former Palm Desert Redevelopment Agency and the Successor Agency. Management of the Successor Agency is responsible for meeting the statutory requirements of Health and Safety Code Section 34179.5 related to All Other Funds. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose. The scope of this engagement was limited to performing the agreed-upon procedures as set forth in Attachment A. Attachment A also identifies the findings noted as a result of the procedures performed. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion on whether the Successor Agency has met the statutory requirements of Health and Safety Code Section 34179.5 related to All Other Funds. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Oversight Board and management of the Successor Agency to the Palm Desert Redevelopment Agency, the California Department of Finance, the California State Controller's Office, and the Riverside County Auditor-Controller, and is not intended to be, and should not be, used by anyone other than these specified parties. iw eu. JL� Irvine, California November 21, 2012 1 2875 Michelle Drive,Suite 300,Irvine,CA 92606•Tel: 714.978.1300•Fax: 714.978.7893 Offices located in Orange and San Diego Counties SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A-AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 1. Procedure: Obtain from the Successor Agency a listing of all assets that were transferred from All Other Funds of the former redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed-Upon Procedures (AUP) report the amount of the assets transferred to the Successor Agency as of that date. Finding: We agreed the amounts listed on Schedule 1 to the Successor Agency's accounting records without exceptions. The former redevelopment agency transferred $248,127,074 in assets from All Other Funds to the Successor Agency as detailed in Schedule 1. 2A. Procedure: Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from All Other Funds of the former redevelopment agency to the city that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Finding: Transfers from All Other Funds of the former redevelopment agency other than payments for goods and services to the City of Palm Desert for the period January 1, 2011 through January 31, 2012 are shown in Schedule 2. 2B. Procedure: Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from All Other Funds of the Successor Agency to the city that formed the redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Finding: Transfers from All Other Funds of the Successor Agency other than payments for goods and services to the City of Palm Desert for the period from February 1, 2012 through June 30, 2012 are shown in Schedule 2. • 2 { • • SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A -AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 2C. Procedure: For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required the transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Finding: Schedule 2 shows the details for the enforceable obligation or other legal requirement supporting the transfers. 3A. Procedure: Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from All Other Funds of the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the former redevelopment agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Finding: This procedure is not applicable as the former redevelopment agency did not make any transfers to other public agencies or private parties other than payments for goods and services from All Other Funds during the period from January 1, 2011 through January 31, 2012. 3B. Procedure: Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from All Other Funds of the Successor Agency to any other public agency or to private parties for the period from February 1, 2012 through June 30, 2012. For each transfer,the Successor Agency should describe the purpose of the transfer and described in what sense the transfer was required by one of the former redevelopment agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Finding: This procedure is not applicable as the Successor Agency did not make any transfers to other public agencies or private parties other than payments for goods and services from All Other Funds during the period from February 1, 2012 through June 30, 2012. 3 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A-AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 3C. Procedure: For each transfer, obtain the legal document that formed the basis for the enforceable obligation • that required the transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Finding: This procedure is not applicable since no transfers were identified as a result of Procedures 3A and 3B. 4. Procedure: Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency for the fiscal periods ended June 30, 2010, June 30, 2011, January 31, 2012 and June 30, 2012. Ascertain that for each period presented, the total of revenues, expenditures and transfers account fully for the changes in equity from the previous fiscal period. Compare amounts for the fiscal period ended June 30, 2010 to the state controller's report filed for the Redevelopment Agency for that period. Compare the amounts for the other fiscal periods presented to the account balances in the accounting records or other supporting schedules; Finding: A reconciliation of the fmancial transactions of the Redevelopment Agency and the Successor Agency for the fiscal periods ended June 30, 2010, June 30, 2011, January 31, 2012 and June 30, 2012 is presented in Schedule 3. 5. Procedure: Obtain from the Successor Agency a listing of all assets of All Other Funds as of June 30, 2012. Agree the assets on the listing to the accounting records of the Successor Agency. Finding: As of June 30, 2012, the Successor Agency's total assets related to All Other Funds of the former redevelopment agency amounted to $237,808,728 as shown in Schedule 4. 4 • ' SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A -AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 6. Procedure: Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that were restricted for the following purposes: • unspent bond proceeds, • grant proceeds and program income restricted by third parties, and • Other assets with legal restrictions. 6A. Procedure- Unspent Bond Proceeds: Obtain the Successor Agency's computation of the restricted balances and trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation. Obtain the legal document that sets forth the restriction pertaining to these balances. We agreed the par amount of the bonds,the original issue premium, underwriter's discount, bond insurance premium, cost of issuance and deposits to the escrow fund to the Official Statement prepared on the issuance of the bonds. We agreed the date and amount of the bond draw to a request from the Palm Desert Redevelopment Agency to Wells Fargo Corporate Trust Services request reimbursements for expenditures paid by the Agency. We agreed the balances at June 30,2012 to a Statement of Assets held by Wells Fargo Corporate Trust Services. Finding: As of June 30, 2012, the Successor Agency had $86,019,993 in unspent bond proceeds as detailed in Schedule 5. Schedules 5a through 5d provide detail by bond series and project area. 6B. Procedure- Grant Proceeds and Program Income Restricted by Third Parties: Obtain the Successor Agency's computation of the restricted balances and trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation. Obtain a copy of the grant agreement that sets forth the restriction pertaining to these balances. Finding: This procedure is not applicable as the Successor Agency's assets related to All Other Funds of the former redevelopment agency did not have grant proceeds and program income restricted by third parties as of June 30, 2012. 6C. Procedure- Other Assets Considered to be Legally Restricted: Obtain the Successor Agency's computation of the restricted balances and trace individual components of this computation to related account balances in the accounting records or other supporting documentation. We obtained the legal document that sets forth the restriction pertaining to these balances. 5 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ' ATTACHMENT A-AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 6C. Finding: As of June 30, 2012,the Successor Agency had the following amounts that are restricted: (a) $17,217,786 held by the bond trustee to pay for debt service payments due in July 2012 and September 2012 as detailed in Schedule 5. (b) $8,290,079 in the reserve and redemptions funds as detailed in Schedule 5 are restricted by bond documents. (c) $1,392,000 in cash received through June 30, 2012 as a repayment of principal of $1,200,000 and interest of $192,000 on a note receivable from the Regents of the University of California, dated April 21, 2003. The original note in the amount of $2,000,000 was for capital improvement costs. The original disbursement for the capital improvements were drawn from Tax Allocation Bond Funds. In accordance with the bond documents, the funds allocated to this project are to be used for the purpose of capital improvements by the Agency or to acquire land related to certain capital improvements. Therefore, the loan repayments carry the same restrictions as the original bond proceeds and are required to be used in accordance with these restrictions. The balance of the note receivable in the amount of$800,000 is reported as a nonliquid asset on Schedule 6. Attached to the report at Exhibit la is the repayment schedule through June 30, 2012, Exhibit lb is the promissory note, Exhibit lc is the detail use of the bond proceeds and Exhibit ld is the certificate on the use of proceeds $11,080,000 Series 1998 Tax Allocation Bonds. (d) There is an adjustment of$140,195 on the general ledger at June 30, 2012 to record the cash held by the bond trustee to the fair market value. This amount is restricted as the cash held by the bond trustee is restricted. 7. Procedure: Obtain from the Successor Agency a listing of assets of All Other Funds of the former redevelopment agency as of June 30, 2012 that are not liquid or otherwise available for distribution and ascertain if the values are listed at either purchase cost or market value as • recently estimated by the Successor Agency. For assets listed at purchased cost, trace the amount to a previously audited financial statement or other accounting records of the Successor Agency and note any differences. For any differences noted, inspect evidence of asset disposal subsequent to January 31, 2012 and ascertain that the proceeds were deposited into the Successor Agency's trust fund. For assets listed at recently estimated market value, inspect evidence supporting the value and note the methodology used. 6 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A-AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 7. Finding: As of June 30, 2012, the Successor Agency's total assets related to All Other Funds of the former redevelopment agency that are not liquid amounted to $71,000,733 as shown in Schedule 6. The amounts have been recorded at cost or fair market value on the general ledger of the Successor Agency. 8A. Procedure: If the Successor Agency identified that existing asset balances were needed to be retained to satisfy enforceable obligations, obtain an itemized schedule of asset balances (resources) as of June 30, 2012 that were dedicated or restricted for the funding of enforceable obligations. Compare the information on the schedule to the legal documents that formed the basis for the dedication or restriction of the resource balance in question. Compare all current balances which needed to be retained to satisfy enforceable obligations to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule (ROPS) approved by the California Department of Finance. If applicable, identify any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. 8A. Finding: As of June 30, 2012, the Successor Agency had the following amounts that are to be retained to fund enforceable obligations: (a) The Successor Agency identified $42,025 in accounts payable related to ROPS 1, as detailed in Schedule 6a, which was paid from available cash. These enforceable obligations were not listed in ROPS 2. (b) On September 30, 2005 the Redevelopment Agency acquired property located at 42-445 Washington Street in Palm Desert. Included in the purchase was a restaurant with an existing lease between Up a Creek, Inc. (business owner) and Santo Thomas Company (previous property owner) that was transferred upon purchase, to the Redevelopment Agency as the "successor in interest". The Successor Agency has a deposit payable on the lease in the amount of$15,000 which is not available for distribution. 7 8B. Procedure:SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A-AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS If the Successor Agency identified that future revenues together with balances dedicated or 4 restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that include a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements. Compare the enforceable obligations to those that were approved by the California Department of Finance for the six month period from January 1, 2012 through June 30, 2012 and for the six month period July 1, 2012 through December 31, 2012. Compare the forecasted annual spending requirements to the legal document supporting the enforceable obligation and obtain the Successor Agency's assumptions relating to the forecasted annual spending requirements. Obtain the Successor Agency's assumptions for the forecasted annual revenues. Disclose the major assumptions for the forecasted annual spending requirements and the forecasted annual revenues in this AUP report. Finding: This procedure is not applicable as the Successor Agency did not identify any assets to be retained under this procedure. ' 8C. Procedure: If the Successor Agency identified that projected property tax revenues and other general purpose 4 revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain a schedule demonstrating this insufficiency. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. Obtain the assumptions for the forecasted property tax revenues and other general purpose revenues and disclose them in this AUP report. Finding: Project Area No. 1 provides a unique situation relative to its ability to repay debt prior to reaching the tax increment cap. Tax increment revenues coming from property within the Added Territory are subject to a maximum of $500,000,000 (exclusive of certain amounts), thus tax revenues available to pay debt service on the loans will be substantially reduced after the limit is reached. The Agency expects this limitation will be reached prior to the final maturity date of the Bonds. Based on a 2% assessed valuation growth projection, the Added Territory will reach the limit in fiscal year 2021-22. 8 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A- AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 8C. Finding (Continued): Pursuant to the bond documents, the Agency has agreed to annually submit a report to MBIA showing the total amount of Tax Revenues remaining available to be received by the Agency under this Plan's cumulative tax increment limitation, as well as future cumulative annual debt service with respect to the bonds. The Agency is required to set-aside all current and future tax revenues and use such amounts solely for the purpose of paying debt service on the loans. Consequently a portion of the cash on hand, as well as future available tax revenues from the Project Area are necessary to cover such debt service payments prior to reaching the cap. The deficit for Project Area No. 1 is estimated to be $15,032,326 as detailed in Exhibit 2a and is required to be retained for the debt service requirements of Project Area No. 1. Attached to the report at Exhibit 2a is a summary cash flows by project areas which shows available revenues and estimated expenditures including bond debt service, Exhibit 2b shows the assumptions made for the cash flows, Exhibit 2c which is a detailed cash flow by year for each of the project areas and Exhibit 2d which are the loan agreements to repay the debt for Project Area No. 1. 8D. Procedure: If Procedures 8A, 8B and 8C were performed, calculate the amount of unrestricted balances necessary for retention in order to meet enforceable obligations. Combine the amount identified as currently restricted balances and the forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations. Reduce the total resources available by the amount of forecasted annual spending requirements. Include the calculation in this AUP report. 8D. Finding: For the amounts of $57,055 in procedure 8A, the Successor Agency does not expect any additional funding to pay for these enforceable obligations. Exhibit 2a, 2b and 2c provides the information on the forecasted revenues and spending requirements for the deficit amount of$15,032,326 required to be retained from available cash to pay for debt service in Project Area No. 1. The total amount required to be retained amounts to $15,089,381. 9 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY • ATTACHMENT A- AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 9. Procedure: If the Successor Agency identified that cash balances as of June 30, 2012 need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1; 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should identify (a) any dollar amount of existing cash that was needed to satisfy the obligation, and (b) the Successor Agency's explanation as to why the Successor Agency believes that such balances were needed to satisfy the obligation. Include this schedule as an attachment to this AUP report. Finding: The Successor Agency has identified $27,979,432 in cash balances be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS 2 and ROPS 3) for the period of July 1, 2012 to June 30, 2013. Schedule 7 shows a summary of the cash balances needed for fiscal year 2012-2013. Schedules 7a, 7b, and 7d provides the details on the cash balances required to be retained for ROPS 2 in the amount of $24,491,809. The Successor Agency is requesting an additional $3,487,623 cash for ROPS 3 for additional funding available as a result of changes made by the Department of Finance as a result of ROPS 3 review. The Successor Agency has had a meet and confer with the Department of Finance but a decision has not been made as of the date of the report. Exhibit 3 has the documents related to this request. 10. Procedure: Present a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Agencies. Amounts included in the calculation should agree to the results of the procedures performed above. Agree any deductions for amounts already paid to the County Auditor-Controller on July 12,2012 as directed by the California Department of Finance to evidence of payment. I Finding: El The computation of the Balance Available for Allocation to Affected Taxing Agencies shows that the Successor Agency has $10,679,129 to be remitted to the County for disbursement to affected taxing agencies as shown in Schedule 8. 10 I • • SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTACHMENT A- AGREED-UPON PROCEDURES AND FINDINGS RELATED TO ALL OTHER FUNDS 11. Procedure: Obtain a representation letter from management of the Successor Agency acknowledging their responsibility for the data provided and the data presented in the report or in any schedules or exhibits to the report. Included in the representations is an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in this AUP report and its related schedules or exhibits. Management's refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. Finding: No exceptions were noted as a result of this Procedure. 11 SCHEDULEI SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS LISTING OF ASSETS TRANSFERRED TO SUCCESSOR AGENCY As of February 1,2012 Total Assets as of February 1,2012 ASSETS Cash and investments $ 68,939,675 Cash with fiscal agent(Bond Trustee) 97,498,463 Accounts receivable 1,234,856 Interest receivable 194,508 Loans receivable 800,000 Prepaid costs 150,000 Due from the City of Palm Desert(Advance) 9,100,000 Due from the City of Palm Desert(Interest) 229,935 SUBTOTAL TOTAL ASSETS(MODIFIED ACCRUAL) 178,147,437 Capital assets 61,084,407 Deferred bond issue costs 8,895,230 TOTAL ASSETS $ 248,127,074 SCHEDULE 2 SUCCESSOR AGENCY TO THE PALM DESERT REDEVLOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS TRANSFERS TO THE CITY OF PALM DESERT FOR THE PERIOD JANUARY 1,2011 THROUGH JANUARY 31,2012: Date of Enforceable Obligation/Other Transfer Description of Transfer Purpose of Transfer Amount Legal Requirement Supporting Transfer 2/24/2011 Transfer of Property to the City Transfer of Property to the City to continue $ 60,491,310 (A) The transfer was made pursuant to the of Palm Desert Redevelopment City adopting Resolution 581 Pursuant to the State Controllers Request to transfer the assets back to the Agency under H&S Code Section 34167.5,the City transferred the assets back to the Agency 2/28/2011 . Transfer for repayment of advance Repay the advance made by the City of $ 9,100,000 (B) The transfer was made to repay the Palm Desert to the Palm Desert Redevelopment advance payable to the City.The advance Agency was incurred after two years of the formation of the Redevelopment Agency and is not considered an enforceable obligation pursuant to California Health and Safety Code Section 34171(g)(2) 2/28/2011 Transfer for interest paid on advances To pay interest on the advance payable by $ 240,443 (C) The payment of interest on the advance payable of$9,100,000 to the City Palm Desert Redevelopment Agency to the prior to January 1,2011 is not subject to City of Palm Desert Health and Safety Code Section 34171(gx2). The interest was paid for the period July 1,2010 to February 28,2011.The payment of interest of S60,509 for the period January 1,2011 to February 28,2011 is not considered an enforceable obligation pursuant to Health and Safety Code Section 34171(g)(2) 6/30/2011 Transfer for interest paid on advances To pay interest on the advance payable by $ 338,186 (D) The payment of interest on the advance payable of$13,555,000 to the City Palm Desert Redevelopment Agency to the prior to January 1,2011 is not subject to City of Palm Desert Health and Safety Code Section 34171(g)(2). The interest was paid for the period July I,2010 to June 30,2011.The payment of interest of$169,426 for the period January I,2011 to June 30,2011 is not considered an enforceable obligation pursuant to Health and Safety Code Section 34171(g)(2) 1/31/2012 Transfer of capital assets to Transfer of public use property,which $ 12,092,882 The assets associated are owned by the City, the City includes Aquatic Center and Street however the capital improvements to the assets Improvements were funded pursuant to Resolution No.'s 08-48, 03-107,07-60 and 542 and Health and Safety Code Section 33445 by the Redevelopment Agency. Therefore,upon dissolution of redevelopment, the value of the improvements were transferred to the owner. (A)For accounting purposes,the City reversed this transfer on June 30,2012 and the assets are included on Schedule 4.The City Council took action on November 15,2012 to reverse the transfer of assets.A reconciliation of the transfers is shown below. Capital assets transferred at February 24,2011 $ 60,491,310 Expenditures(Work in Progress)incorrectly capitalized written of (1,173,861) Capital assets transferred back to Agency S 59,317,449 (B)For accounting purposes,the City reversed the transfer of$9,100,000 and has reported a receivable from the City of Palm Desert as of June 30,2012. This amount is included in the assets reported for the Successor Agency at June 30,2012 (C)For accounting purposes,the City reversed$60,509 of the interest paid on the$9,100,000 advance for the period January 1,2011 to February 28,2011. This amount is included in the assets reported for the Successor Agency at June 30,2012 (D)For accounting purposes,the City reversed$169,426 of the interest paid on the$13,555,000 advance for the period January 1,2011 to June 30,2011. This amount is included in the assets reported for the Successor Agency at June 30,2012 (E)$459,943 in work-in-progress that was deleted from the Redevelopment Agency due to lack of funding to complete projects as a result of RDA dissolution. (F)The Redevelopment Agency restated ifs financial statements at June 30,2011 to remove capital assets in the amount of$18,083,336 which are not reported above.These assets were transferred by the Governing Boatel in prior years but were not adjusted in the accounting records. Property includes public use parks,public use buildings,etc. (G)Restatement as of July 1,2012 to adjust for land that is not property of the Redevelopment Agency $ (1,243,031) Restatement as of July 1,2012 to reverse parking lot that is not property of the Redevelopment Agency (115,098) $ (1,358,129) 1 SCHEDULE , SUCCESSOR AGENCY TO THE PALM DESERT REDEVLOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS TRANSFERS TO THE CITY OF PALM DESERT FOR THE PERIOD FEBRUARY 1,2012 THROUGH JUNE 30,2012: Date of Enforceable Obligation/Other Transfer Description of Transfer Purpose of Transfer Amount Legal Requirement Supporting Transfer 6/30/2012 Transfer of capital assets to Transfer of public use property,which $ 194,559 The transfer was made pursuant to Health& the City includes retention basin to capture water Safety Code Section 34181(a) run-off • SCHEDULE 3 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS RECONCILIATION OF FINANCIAL TRANSACTIONS FOR THE PERIODS ENDED JUNE 30,2010,JUNE 30,2011,JANUARY 31,2012 AND JUNE 30,2012 (a) (a) (b) (c) Redevelopment Redevelopment Redevelopment Successor Agency Agency Agency Agency 12 Months Ended 12 Months Ended 7 Months Ended 5 Months Ended 6/30/2010 6/30/2011 1/31/2012 6/30/2012 Assets(modified accrual basis) Cash and investments $ 143,055,348 $ 110,557,650 $ 82,628,518 $ 56,794,263 Restricted cash with fiscal agent 147,287,068 127,588,762 120,893,163 135,637,866 Property tax receivable 416,841 Accounts receivable 421,198 231,162 1,258,852 1,309,911 Interest receivable 569,198 420,054 231,001 210,496 Note/loan receivable 8,928,010 8,524,592 7,587,629 800,000 Due from other funds - 3,979,739 - - Advances to other funds 17,821,288 17,821,288 17,821,288 - Due from the City of Palm Desert-Advances - - 9,100,000 9,100,000 Due from the City of Palm Desert-Interest - - 229,935 229,935 Property held for resale 855,224 2,685,387 3,671,674 - Prepaid costs and deposits 26,813 177,320 150,129 157,448 Total Assets $ 318,964,147 $ 271,985,954 $ 243,572,189 $ 204,656,760 Liabilities(modified accrual basis) Accounts payable $ 1,469,174 $ 2,853,030 $ 6,267,364 $ 2,543,043 Accrued liabilities 80,299 85,773 - - Deposits payable 15,500 15,500 15,500 15,000 Advances from other funds 17,821,288 17,821,288 17,821,288 17,821,288 Due to the City of Palm Desert - - 9,100,000 9,100,000 Due to other funds(RDA) - 3,979,739 - - Unearned revenue 6,796 6,796 6,796 - Deferred revenue 36,493 36,493 36,494 - Amounts due to pass-through agreements 60,678,180 44,341,716 12,576,364 135,936 Total Liabilities 80,107,730 69,140,335 45,823,806 29,615,267 Equity 238,856,417 202,845,619 197,748,383 175,041,493 Total Liabilities and Equity $ 318,964,147 $ 271,985,954 $ 243,572,189 $ 204,656,760 Total Revenues $ 90,977,877 $ 83,270,086 $ 40,814,989 $ 21,313,962 Total Expenditures (107,340,283) (111,564,389) (43,730,284) (15,471,841) Transfer out to Housing Authority (7,716,495) (2,181,941) - Transfer of Capital Assets to City - - - (194,559) Transfer out to Housing Authority - - - (28,297,421) Net change in equity (16,362,406) (36,010,798) (5,097,236) (22,649,859) Beginning Equity 255,218,823 238,856,417 202,845,619 197,748,383 Restatement of Equity - - - (57,031) Ending Equity $ 238,856,417 $ 202,845,619 $ 197,748,383 $ 175,041,493 Other Information(show year end balances for all three years presented): Capital assets as of end of year $ 157,525,805 $ 84,418,599 $ 132,031,683 $ 60,687,360 Long-term debt as of end of year $ 389,217,570 $ 368,384,074 $ 360,564,284 $ 354,527,797 Advances due to the City of Palm Desert $ 22,655,000 $ 13,555,000 $ 13,555,000 $ 22,655,000 Unamortized bond premium $ 6,899,537 $ 6,423,834 $ 6,146,341 $ 5,948,131 Deferred amount on refunding $ (1,360,820) $ (1,238,105) $ (1,166,521) $ (1,115,390) (a)Agreed amounts to State Controller's Reports and audited financial statements for the fiscal years 2009-2010 and 2010-2011. (b)Agreed amounts to accounting records. (c)This schedule does not include the Housing Authority. SCHEDULE 4 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS LISTING OF ASSETS As of June 30.2012 Total Assets as of June 30, 2012 ASSETS Cash and investments $ 43,919,407 Cash with fiscal agent(Bond Trustee) 112,293,151 Property tax receivable 416,841 Due from other governments 1,309,911 Interest receivable 210,496 Loans 800,000 Prepaid costs 157,448 Due from the City of Palm Desert(Advance) 9,100,000 Due from the City of Palm Desert(Interest) 229,935 SUBTOTAL TOTAL ASSETS(MODIFIED ACCRUAL) 168,437,189 Capital assets 60,687,360 Deferred bond issue costs 8.684,179 TOTAL ASSETS $ 237.808.728 • SCHEDULE 5 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUMMARY OF RESTRICTED CASH June 30,2012 Enforceable Obligation/ Other Legal Requirement Bond Description Amount Supporting Restriction Unspent Bond Proceeds $37,780,000 Tax Allocation Revenue Bonds(Project Area No. 1,as amended)2006 Series A and$24,540,000 Tax Allocation Refunding Revenue Bonds(Project Area No. 1,as amended)2006 Series B (Taxable)(Grand Total=$62,320,000) $ 15,559,922.52 Bond Documents $32,600,000 Tax Allocation Refunding Revenue Bonds(Project Area No. I,as amended)2007 Series A 797,395.91 Bond Documents Project Area No.2$41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A,$1,567,118 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B,$7,775,000 Tax Allocation Revenue Bonds 2006 Series C and$16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Grand Total=$67,618,213) 15,339,777.90 Bond Documents Project Area No.2$41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A,$1,567,118 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B,$7,775,000 Tax Allocation Revenue Bonds 2006 Series C and$16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Grand Total=$67,618,213) 16,592,960.49 Bond Documents $4,745,000 Tax Allocation Revenue Bonds(Project Area No.3)2003 Series 1,824,075.86 Bond Documents Project Area No.3$11,915,000 Tax Allocation Revenue Bonds 2006 Series A,$383,660 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and$2,760,866 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C(Grand Total= $15,059,526) 11,240,337.19 Bond Documents Project Area No.3$11,915,000 Tax Allocation Revenue Bonds 2006 Series A,$383,660 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and$2,760,866 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C(Grand Total= $15,059,526) 2,697,545.14 Bond Documents $15,695,000 Tax Allocation Revenue Bonds(Project Are No.4)2001 Series 5,155,682.43 Bond Documents $14,610,000 Tax Allocation Refunding Revenue Bonds(Project Area No.4)2006 Series A and$4,663,089 Tax Allocation Revenue Capital Appreciation Bonds(Project Area No.4)2006 Series B(Grand Total =$19,273,089) 16,812,295.26 Bond Documents Total Unspent Bond Proceeds 86,019,992.70 1 SCHEDULE 5 • SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUMMARY OF RESTRICTED CASH June 30,2012 Enforceable Obligation/ Other Legal Requirement Bond Description Amount Supporting Restriction Debt Service Payments Due in July and September 2012 $11,02,000 Tax Allocation Revenue Bonds(Project Area No.4) 1998 Series $ 348,765.00 Bond Documents $24,945,000 Tax Allocation Refunding Revenue Bonds(Project Are No. 1,as amended)2004 Series A 414,481.26 Bond Documents $15,695,000 Tax Allocation Revenue Bonds(Project Are No.4)2001 Series 655,983.75 Bond Documents $22,070,000 Tax Allocation Refunding Revenue Bonds(Project Area No. 1,as amended)2002 Series A 557,332.50 Bond Documents $12,100,000 Tax Allocation(Housing Set-Aside Revenue Bonds 2002 Series 537,224.38 Bond Documents $19,000,000 Tax Allocation Revenue Bonds(Project Area No. 1,as amended)2003 Series 475,000.00 Bond Documents $4,745,000 Tax Allocation Revenue Bonds(Project Area No.3)2003 Series 91,132.51 Bond Documents $17,310,000 Tax Allocation Refunding Revenue Bonds(Project Area No.2)2002 Series A 1,059,818.75 Bond Documents $15,745,000 Tax Allocation Revenue Bonds(Project Area No.2) 2003 Series 384,503.13 Bond Documents $37,780,000 Tax Allocation Revenue Bonds(Project Area No. 1,as amended)2006 Series A and$24,540,000 Tax Allocation Refunding Revenue Bonds(Project Area No. 1,as amended)2006 Series B (Taxable)(Grand Total=$62,320,000) 1,286,634.50 Bond Documents Project Area No.2$41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A,$1,567,118 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B,$7,775,000 Tax Allocation Revenue Bonds 2006 Series C and$16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Grand Total=$67,618,213) 1,625,493.78 Bond Documents Project Area No.2$41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A,$1,567,118 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B,$7,775,000 Tax Allocation Revenue Bonds 2006 Series C and$16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Grand Total=$67,618,213) 1,320,000.00 Bond Documents 2 • SCHEDULE 5 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUMMARY OF RESTRICTED CASH June 30,2012 Enforceable Obligation/ Other Legal Requirement Bond Description Amount Supporting Restriction Debt Service Payments Due in July and September 2012 (Continued) Project Area No.3$11,915,000 Tax Allocation Revenue Bonds 2006 Series A,$383,660 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and$2,760,866 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C(Grand Total= $15,059,526) $ 274,437.51 Bond Documents $14,610,000 Tax Allocation Refunding Revenue Bonds(Project Area No.4)2006 Series A and$4,663,089 Tax Allocation Revenue Capital Appreciation Bonds(Project Area No.4)2006 Series B(Grand Total =$19,273,089) 1,005,410.00 Bond Documents $32,600,000 Tax Allocation Refunding Revenue Bonds(Project Area No. 1,as amended)2007 Series A 470,000.00 Bond Documents $86,155,000 Tax Allocation(Housing Set-Aside)Refunding Revenue Bonds Series 2007 6,711,568.75 Bond Documents Total Debt Service Payments July and September 2012 17,217,785.82 Reserve and Redemption Funds $22,070,000 Tax Allocation Refunding Revenue Bonds(Project Area No. 1,as amended)2002 Series A 6,316,331.94 Bond Documents Project Area No.2$41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A,$1,567,118 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B,$7,775,000 Tax Allocation Revenue Bonds 2006 Series C and$16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Grand Total=$67,618,213) 1,697,660.85 Bond Documents Project Area No.3 $11,915,000 Tax Allocation Revenue Bonds 2006 Series A,$383,660 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and$2,760,866 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C(Grand Total= $15,059,526) 276,086.64 Bond Documents Total Reserve and Redemption Funds 8,290,079.43 Cash and interest received on note to University of California- Riverside 1,392,000.00 Bond Documents Fair market value change 140,195.01 Bond Documents Grand Total $ 113,060,052.96 3 SCHEDULE 5a SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCEEDS 2006 PROJECT AREA 1 TAX ALLOCATION BONDS Par Amount of 2006 Project Area No.1 TAB's $ 62,320,000.00 Plus:Original Issue Premium(Series A) 1,435,429.15 Less:Original Issue Discount(Series B) (84,107.60) Less:Underwriter's Discount (312,071.40) Bond Proceeds 63,359,250.15 Series 2006 Bond Proceeds per Transcript 63,359,250.15 Less:COI (215,210.21) Less:Bond Insurance Premium (577,000.00) Less:Surety Bond Premium (66,000.00) Less:Deposit to Escrow Fund(Refunding) (24,110,965.40) Net Project Funds 38,390,074.54 Deposit to Project Fund 38,390,074.54 Accumulated Interest 3,424,406.97 Reimbursement Requests: Date Draw No. 1 10/31/2006 (584,189.00) Draw No.2 1/15/2007 (502,783.17) Draw No.3 3/15/2007 (2,066,686.94) Draw No.4 4/9/2007 (785,470.30) Draw No.5 4/30/2007 (848,446.94) Draw No.6 5/31/2007 (994,766.76) Draw No.7 5/31/2007 (2,114,473.60) Draw No. 8 6/30/2007 (992,610.62) Draw No.9 7/31/2007 (8,420.72) Draw No. 10 8/31/2007 (751,816.26) Draw No. 11 9/19/2007 (1,039,012.23) Draw No. 12 9/30/2007 (4,466.81) Draw No. 13 10/31/2007 (188,919.60) Draw No. 14 11/30/2007 (306,383.39) Draw No. 15 12/31/2007 (773,269.69) Draw No. 16 1/31/2008 (1,072,681.83) Draw No. 17 2/29/2008 (734,563.82) Draw No. 18 3/31/2008 (4,656.75) Draw No. 19 4/30/2008 (1,412,010.52) Draw No.20 5/31/2008 (665,998.98) Draw No.21 6/20/2008 (1,523,099.49) Draw No.22 7/25/2008 (949,392.47) Draw No.23 8/31/2008 (721,054.58) Draw No.24 9/30/2008 (11,550.00) Draw No.25 10/31/2008 (55,549.22) Draw No.26 11/30/2008 (481,756.70) Draw No.27 12/31/2008 (612,554.12) Draw No.28 2/28/2009 (842,310.89) Draw No.29 3/31/2009 (26,536.81) Draw No.30 5/15/2009 (374,497.00) Draw No.31 6/19/2009 (228,673.89) Draw No.32 8/14/2009 (2,302,146.56) Draw No.33 10/16/2009 (36,230.25) Draw No.34 1/22/2010 (183,974.27) Draw No.35 6/18/2010 (292,249.59) Draw No.36 9/24/2010 (769,519.82) Draw No.37 12/31/2010 (651,874.01) Draw No.38 9/16/2011 (103,034.99) , Draw No.39 Skipped Draw No.40 10/28/2011 (7,212.45) Draw No.41 1/31/2012 (229,713.95) Actual Current Balance(including interest earned) $ 15,559,922.52 • SCHEDULE 5a SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCEEDS 2007 PROJECT AREA 1 TAX ALLOCATION BONDS Par Amount of 2007 Project Area No.1 TAB's(Taxable) $ 32,600,000.00 Plus:Original Issue Premium 1,926,034.15 Less:Underwriter's Discount (160,039.00) Bond Proceeds 34,365,995.15 Series 2007 Bond Proceeds per Transcript 34,365,995.15 Less:COT (210,000.00) Less:Bond Insurance Premium (248,000.00) Less:Surety Bond Premium (33,000.00) Less:Deposit to Escrow Fund(Refunding) (32,129,876.98) Net Project Funds 1,745,118.17 Deposit to Project Fund 1,745,118.17 Accumulated Interest 127,526.89 Reimbursement Requests: Date Draw No. 1 8/14/2009 (508,186.41) Draw No.2 10/16/2009 (249,573.75) Draw No.3 1/22/2010 (161,024.84) Draw No.4 6/18/2010 (85,422.13) Draw No.5 9/24/2010 (71,042.02) Actual Current Balance(including interest earned) $ 797,395.91 SCHEDULE 5b . SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCEEDS 2006 PROJECT AREA 2 TAX ALLOCATION BONDS Par Amount of 2006 Project Area No.2 TAB's $ 67,618,212.55 Plus:Oriinal Issue Premium 226,918.35 Less:Underwriter's Discount (405,171.83) Bond Proceeds 67,439,959.07 Series 2006 Bond Proceeds per Transcript 67,439,959.07 Less:COI (372,458.70) Less:Bond Insurance Premium (996,084.24) Less:Surety Bond Premium (139,375.82) Less:Deposit to Reserve Fund (1,693,609.46) Less:Deposit to Escrow Interest Fund (1,303,593.17) Less:Deposit to Escrow Fund (7,749,804.25) Less:Deposit to Escrow Fund(Refunding) (4,021,992.50) Net Project Funds 51,163,040.93 Deposit to Project Fund 51,163,040.93 Accumulated Interest 5,543,867.69 Reimbursement Requests: Date Draw No. 1 10/31/2006 (3,677,637.60) Draw No.2 5/31/2007 (2,344,732.61) Draw No.3 5/31/2007 (1,871,827.27) Draw No.4 6/30/2007 (733,943.56) Draw No. 5 7/31/2007 (5,878.20) Draw No.6 9/19/2007 (5,073.76) Draw No.7 9/30/2007 (101,249.18) Draw No. 8 10/31/2007 (10,599.91) Draw No.9 12/31/2007 (4,692.23) Draw No. 10 1/31/2008 (1,639.94) Draw No. 11 2/29/2008 (300,636.67) Draw No. 12 6/20/2008 (5,407.50) Draw No. 13 7/25/2008 (10,696.88) Draw No. 14 9/30/2008 (32,876.19) Draw No. 15 12/31/2008 (14,833.17) Draw No. 16 8/14/2009 (598.27) Draw No. 17 10/16/2009 (431,544.10) Draw No. 18 9/24/2010 (320,870.52) Draw No. 19 12/31/2010 (3,166,737.53) Draw No.20 1/28/2011 (1,472,653.73) Draw No.21 2/25/2011 (2,764,372.96) Draw No.22 4/1/2011 (1,728,904.67) Draw No.23 5/13/2011 (647,008.94) Draw No.24 8/12/2011 (3,337,909.11) Draw No.25 9/16/2011 (911,359.61) Draw No.26 10/28/2011 (343,023.19) Draw No.27 1/31/2012 (454,259.03) Draw No.28 5/11/2012 (73,203.90) Actual Current Balance(including interest earned) $ 31,932,738.39 • SCHEDULE 5c SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCEEDS 2003 PROJECT AREA 3 TAX ALLOCATION BONDS Par Amount of 2003 Project Area No.3 TAB's $ 4,745,000.00 Plus:Issue Premium 47,636.85 Less:Underwriter's Discount (47,450.00) Bond Proceeds 4,745,186.85 Series 2003 Bond Proceeds per Transcript 4,745,186.85 Less:COI (109,100.00) Less:Bond Insurance Premium (12,000.00) Less:Surety Bond Premium (133,000.00) Net Project Funds 4,491,086.85 Deposit to Project Fund 4,491,086.85 Accumulated Interest 504,349.03 Reimbursement Requests: Date Draw No. 1 9/26/2003 (5,350.00) Draw No.2 10/31/2003 (61,642.17) Draw No.3 2/29/2004 (4,043.69) Draw No.4 6/30/2004 (195,844.78) Draw No.5 8/31/2004 (237,851.74) Draw No.6 9/30/2004 (353,153.16) Draw No.7 10/31/2004 (159,189.47) Draw No.8 12/31/2004 (37,327.16) Draw No.9 4/30/2005 (4,309.10) Draw No. 10 5/31/2005 (112,440.96) Draw No. 11 3/30/2005 (300,429.73) Draw No. 12 6/30/2005 (131,383.74) Draw No. 13 8/31/2005 (745.61) Draw No. 14 7/31/2006 (12,945.45) Draw No. 15 Skipped - Draw No. 16 9/19/2007 (203,436.29) Draw No. 17 6/20/2008 (84,217.14) Draw No. 18 9/30/2008 (17,716.42) Draw No. 19 10/16/2009 (19,567.91) Draw No.20 12/31/2010 (53,921.04) Draw No.21 3/9/2012 (1,129,416.61) Draw No.22 5/11/2012 (46,427.85) Actual Current Balance(including interest earned) $ 1,824,075.86 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCFFDS SCHEDULE 5c 2006 PROJECT AREA 3 TAX ALLOCATION BONDS Par Amount of 2006 Project Area No.3 TAB's $ 15,059,526.10 Less:Original Issue Discount (151,181.55) Less:Underwriter's Discount (103,694.97) Bond Proceeds 14,804,649.58 Series 2006 Bond Proceeds per Transcript 14,804,649.58 Less:COI (219,700.00) Less:Bond Insurance Premium (377,000.00) Less:Surety Bond Premium (28,000.00) Less:Reserve Fund Deposit (276,086.64) Net Project Funds 13,903,862.94 Deposit to Project Fund 13,903,862.94 Accumulated Interest 1,594,267.68 Reimbursement Requests: Date Draw No. 1 9/16/2011 (414,425.99) Draw No.2 10/28/2011 (477,233.96) Draw No.3 1/31/2011 (668,5 88.34) Actual Current Balance(including interest earned) $ 13,937,882.33 4 . • SCHEDULE 5d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCEEDS 2001 PROJECT AREA 4 TAX ALLOCATION BONDS Par Amount of 2001 Project Area No.4 TAB's $ 15,695,000.00 Less:Net Issue Discount (86,649.35) Less:Underwriter's Discount (177,353.50) Bond Proceeds 15,430,997.15 Series 2001 Bond Proceeds per Transcript 15,430,997.15 Less:COI (172,500.00) Less:Reserve Fund Deposit (310,423.75) Less:Bond Insurance Premium (461,000.00) Less: Surety Bonds Premium (19,315.60) Less:Special Escrow Account(Funds released 2005) (5,191,415.26) Net Project Funds 9,276,342.54 Deposit to Project Fund 9,276,342.54 Release of escrow in 2005 5,191,415.26 Accumulated Interest 2,002,083.11 Reimbursement Requests: Date Draw No. 1 5/13/2005 (342,770.68) Draw No.2 2/28/2006 (1,205,887.49) Draw No.3 6/30/2006 (125,672.26) Draw No.4 7/31/2006 (120,062.82) Draw No.5 7/31/2006 (719,449.22) Draw No.6 8/31/2006 (324,428.91) Draw No.7 10/31/2006 (1,332,708.37) Draw No.8 1/15/2007 (3,032,605.75) Draw No.9 2/16/2007 (677,566.88) Draw No. 10 3/31/2007 (357,202.93) Draw No. 11 4/30/2007 (29,159.10) Draw No. 12 5/31/2007 (526,921.63) Draw No. 13 6/30/2007 (1,307,557.53) Draw No. 14 7/31/2007 (22,113.00) Draw No. 15 9/19/2007 (823,157.50) Draw No. 16 9/30/2007 (5,649.00) Draw No. 17 9/30/2008 (60,661.97) Draw No. 18 10/16/2009 (26,250.00) Draw No. 19 1/22/2010 (5,708.06) Draw No.20 6/18/2010 (172,309.24) Draw No.21 9/24/2010 (22,551.95) Draw No.22 12/31/2010 (6,282.63) Draw No.23 1/28/2011 (13,998.47) Draw No.24 2/25/2011 (12,766.81) Draw No.25 8/12/2011 (32,113.31) Draw No.26 9/16/2011 (1,603.09) Draw No.27 10/28/2011 (2,962.79) Draw No.28 1/31/2012 (4,037.09) Actual Current Balance(including interest earned) $ 5,155,682.43 SCHEDULE 5d • SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS UNSPENT BOND PROCEEDS 2006 PROJECT AREA 4 TAX ALLOCATION BONDS Par Amount of 2006 Project Area No.4 TAB's $ 19,273,089.30 Plus:Original Issue Premium 223,012.25 Less:Underwriter's Discount (115,638.54) Bond Proceeds 19,380,463.01 Series 2006 Bond Proceeds per Transcript 19,380,463.01 Less:COI (195,000.00) Less:Bond Insurance Premium (271,000.00) Less:Surety Bonds Premium (48,000.00) Less:Deposit to Escrow Fund(Refunding) (1,536,835.15) Net Project Funds 17,329,627.86 Deposit to Project Fund 17,329,627.86 Accumulated Interest 2,078,105.69 Reimbursement Requests: Date Draw No. 1 12/31/2007 (355,017.29) Draw No.2 2/29/2008 (724,702.52) Draw No.3 3/31/2008 (630,000.00) Draw No.4 4/30/2008 (9,686.25) Draw No. 5 6/20/2008 (876,032.23) Actual Current Balance(including interest earned) $ 16,812,295.26 SCHEDULE 6 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS LISTING OF NONLIQUID ASSETS As of June 30,2012 Basis for Balance at Asset Description Determining Value June 30,2012 Fair market value change in cash and investments(A) Fair Market Value $ 54,096 Prepaid asset(B) Cost 150,000 Cash held in escrow for construction project(C) Cost 625,098 Loans funded from bond proceeds Cost 800,000 Capital assets Cost 60,687,360 Deferred bond issue costs Cost 8,684,179 $ 71,000,733 (A) The change in fair value of cash and investments was made at June 30,2012. This is an accounting entry and the asset is not available for distribution. (B) This amount was prepaid to the Agency's attorneys as a deposit to fund future litigation. This asset is not available for distribution.(See Exhibit 4). (C) This amount is held in an escrow account to pay for retentions on a construction project. The amount is not available as the funds are in an escrow account to pay project costs which have been incurred through June 30,2012. SCHEDULE 6a SUCCESOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS CASH TO BE RETAINED TO SATISFY ENFORCEABLE OBLIGATIONS(ROPS 1) Payee Project/Description Amount Source Enforceable Obligation ASR Construction Aquatic Facility $1,614,142.88 Bonds PA 2,Line 16 American Fence Alessandro(Agency Owned Properties) 320.00 Cash PA 1,Line 43 Canyon Pools Portola(Agency Owned Properties) 1,330.00 Cash PA 1,Line 43 CVWD DR/FC(Stipulation) 622.13 Cash PA 1-4,Lines 32,32, 13& Gas Co. NSP(Stipulation) 21.33 Cash PA 1-4,Lines 32,32, 13& Killer Bee Pest Control Alessandro(Agency Owned Properties) 185.00 Cash PA 1,Line 43 New West Landscape NSP/DR(Stipulation) 395.00 Cash PA 1-4,Lines 32,32, 13& Quality Landscape Alessandro(Agency Owned Properties) 1,300.00 Cash PA 1,Line 43 SCE DR/FC(Stipulation) 98.71 Cash PA 1-4,Lines 32,32, 13 & El Paseo LLC VC Lease(Facilities Lease) 318.98 Cash PA 1,Line 24 Interactive Design COV Design Svc-(CLO Villas) 18,440.50 Bonds PA 4,Line 18 New West Landscape DR/FC(Stipulation) 695.00 Cash PA 1-4,Lines 32,32, 13& Ana Rosa's Painting& SR Cleaning-5/12(Santa Rosa Cleaning Apts) 150.00 Cash PA 1,Line 52 BB&K Legal Services 5/12(Aquatic Facility) 3,633.50 Bonds PA 2,Line 16 BB&K Legal Services 5/12(Gen Legal) 268.00 Cash PA 1-4,Lines 18,24,21, 11 CVWD SR Water Svc-6/12(Santa Rosa Apts) 26.15 Cash PA 1,Line 52 RPM Company Management Svc 6/12(Santa Rosa Apts) 400.00 Cash PA 1,Line 52 SCE SR Elect Svc-6/12(Santa Rosa Apts) 163.89 Cash PA 1,Line 52 Union Bank Bank Fees-4/12(Banking 258.00 Cash PA 1-4,Lines 22,47,28, 16 Liberty Landscape SR Landscape Svc-(Santa Rosa Apts) 450.00 Cash PA 1,Line 52 The Land Steward Dust Control Svc-6/12(Agency Owned Properties) 1,940.71 Cash PA 1,Line 43 CVWD NSP Water Svc-6/12(Stipulation) 53.67 Cash PA 1-4,Lines 32,32, 13& SCE NSP Elect Svc-6/12(Stipulation) 127.52 Cash PA 1-4,Lines 32,32, 13& Office Depot Office Supplies(Admin) 93.18 Cash PA 1-4,Lines 30,30, 11, 19 RW&G Legal Services 4/12(Gen Legal) 14,635.52 Cash PA 1-4,Lines 17,23,20, 10 RPM Company Management Svc 5/12(Santa Rosa Apts) 400.00 Cash PA 1,Line 52 Liberty Landscaping SR Landscaping Svc-6/12(Santa Rosa Apts) 935.00 Cash PA 1,Line 52 Daniel's DKI FC Emerg Abatement Svc-6/12 PA 1-4,Lines 32,32, 13& (Stipulation) 2,215.72 Cash 21 El Paseo LLC Lease Service-Retro Tax (Facilities Lease) 129.97 Cash PA 1,Line 24 BB&K Legal Services(Aquatic Facility) 649.25 Bonds PA 2,Line 16 RW&G Legal Services(Gen Legal) 14,221.54 Cash PA 1-4,Lines 17,23,20, 10 VM Pool Service NSP Pool Service-6/12 270.00 Cash PA 1-4,Lines 32,32, 13& 1,678,891.15 Less:Amounts to be paid from bonds proceeds (1,636,866.13) Amount to be restricted from Cash $ 42,025.02 • . SCHEDULE 7 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS CASH BALANCES TO BE RETAINED FOR FISCAL YEAR 2012-2013 (ROPS 2 and ROPS 3) Project Project Project Project Area 1 Area 2 Area 3 Area 4 Totals ROPS 2: ROP's 2 Original Request $ 38,705,093.43 $ 11,708,165.42 $ 3,789,369.10 $ 8,459,833.36 $ 62,662,461.31 ROP's Disallowed- (Schedule 7a) (23,056.14) (184,437.96) - (13,550.94) (221,045.04) Less:Use of Bond Proceeds Restricted in Procedure 6a- (Schedule 7b) (387,478.29) (3,162,337.43) (1,596,213.72) (1,053,637.42) (6,199,666.86) Adjustment for Pass-thru Trust Account Obligations amounts on ROPS 2 (8,667,301.11) (250,168.83) (532,294.71) (2,990,664.20) (12,440,428.85) Actual Pass-then Trust Account Obligations 85,392.11 4,305.09 20,734.80 25,503.59 135,935.59 Less:L/M Housing Fund Loan related to the 2009/10 SERAF loan repayment on ROPS 2 (1,304,766.40) (469,450.66) (121,289.12) (332,154.83) (2,227,661.01) Less:Debt Service Payments Restricted in Procedure 6c- (Schedule 7c) (10,452,241.39) (4,389,815.66) (365,570.02) (2,010,158.75) (17,217,785.82) Subtotal ROPS 2(Schedule 7d) 17,955,642.21 3,256,259.97 1,194,736.33 2,085,170.81 24,491,809.32 ROPS 3: Requested revision for ROPS 3 (See Exhibit 3) 2,175,370.00 628,192.00 174,664.00 509,397.00 3,487,623.00 Subtotal ROPS 3 2,175,370.00 628,192.00 174,664.00 509,397.00 3,487,623.00 Grand Total $ 20,131,012.21 $ 3,884,451.97 $ 1,369,400.33 $ 2,594,567.81 $ 27,979,432.32 SCHEDULE 7a . SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE DISALLOWED ON ROPS 2 Total Line July to Dec. Portion Number Project Name Description 2012 Disallowed PROJECT AREA 1: Payments on existing contract for 51 NSP Rehabilitation Rehab/Resale of Single Family $ 16,115.00 $ 8,056.14 52 Santa Rosa Apartments Per contract dated 1/1/2000 30,000.00 15,000.00 TOTAL PROJECT AREA 1 $ 46,115.00 $ 23,056.14 PROJECT AREA 2: 5 North Sphere Hotel land Balance due Property Acquisition $ 90,000.00 $ 90,000.00 6 North Sphere Property Acquisition Loan for Property Acquisition 68,749.98 68,749.98 City Loan for formation of Project Formation of PA/Property 7 Area No.2- 1986 Acquisition 25,687.98 25,687.98 TOTAL PROJECT AREA 2 $ 184,437.96 $ 184,437.96 PROJECT AREA 4: Payments per existing contract related to Rehab/Resale of Single 30 NSP Rehabilitation Family Dwelling $ 27,103.50 $ 13,550.94 TOTAL PROJECT AREA 4 $ 27,103.50 $ 13,550.94 GRAND TOTAL $ 257,656.46 $ 221,045.04 SCHEDULE 7b SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-USE OF BOND PROCEEDS ON ROPS 2 Total Line July to Dec. Number Project Name Description 2012 PROJECT AREA 1: Payments per existing contract for public parking improvements along 14 Alessandro Alleyway commercial corridor $ 3,513.53 Payments for existing contract for 29 El Paseo Revitalization public improvements in the central 171,123.65 34,35, Payments on existing contracts for 36&37 FW Drive Widening Improvements street improvement along Fred 59,489.50 Payments on existing contract for 38 Portola Wall&Sidewalk Improvements public improvements relative to the 25,495.00 Costs associated with administration of 45 Bond Project Overhead Costs bond 127,856.61 TOTAL PROJECT AREA 1 $ 387,478.29 PROJECT AREA 2: Payments on existing contracts related to newly constructed fire station to 10 North Sphere Fire Station serve the North Area $ 8,750.00 14, 15, Payments on existing contracts related 16&17 Aquatic Facility to the Aquatic/Community Facility 2,020,764.78 Payments on existing contracts related to the North area required future well 28 Well Sites sites 667,246.00 Payments on existing contracts for the street improvements related to arterial 37,39, access inbound and outbound from 40&41 Monterey @ I-10 Improvements Interstate 10 on Monterey 149,037.00 Payments on existing contract related to the alignment of Portola Avenue to connect with the proposed new 42 Portola @ I-10 Improvements interchange on I-10 18,636.93 Costs associated with administration of 48 Bond Project Overhead Costs bond funded projects 297,902.72 TOTAL PROJECT AREA 2 $ 3,162,337.43 1 SCHEDULE 7b ' SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-USE OF BOND PROCEEDS ON ROPS 2 Total Line July to Dec. Number Protect Name Description 2012 PROJECT AREA 3: Payments on existing contracts related 4, 5,8 to the infrastructure improvements on &9 Cook Street Widening Cook Street $ 1,191,889.41 Payments on existing contract related to the reimbursement of College of the Desert for the construction of the 10 Public Safety Academy Reimbursement Public Safety Academy 300,000.00 Costs associated with administration of 29 Bond Project Overhead Costs bond funded projects 104,324.31 TOTAL PROJECT AREA 3 $ 1,596,213.72 PROJECT AREA 4: rayments per existing contract reiatea to the public improvements to develop and construct public facilities for emergency services,affordable housing,façade improvements to existing structures,and infrastructure 5&6 PA 4 Public Improvements improvements $ 17,274.00 Payments per existing contract related to undergrounding of utilities in Project 7 PD Country Club Undergrounding Area No.4 15,058.15 Payments per existing contract for a 72 18 Affordable Housing-Carlos Ortega Villas unit affordable senior complex 644,649.13 Payments on existing contract related to the reimbursement of College of the Desert for the construction of the 28 Public Safety Academy Reimbursement Public Safety Academy 100,000.00 Costs associated with administration of 31 Bond Project Overhead Costs bond funded projects 276,656.14 TOTAL PROJECT AREA 4 $ 1,053,637.42 GRAND TOTAL $ 6,199,666.86 2 • SCHEDULE 7c SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-RESTRICTED DEBT SERVICE PAYMENTS ON ROPS 2 Payments Made Line July and Sept. Number Project Name Description 2012 PROJECT AREA 1: 2002 Tax Allocation Refunding Bond Issue 1 $22,070,000 Semi-Annual Debt Service Payment $ 557,332.50 2 2003 Tax Allocation Bond Issue-$19,000,000 Semi-Annual Debt Service Payment 475,000.00 3 2004 Tax Allocation Bond Issue-$24,945,000 Semi-Annual Debt Service Payment 414,481.26 4 2006 Tax Allocation Bond Issue-$62,320,000 Semi-Annual Debt Service Payment 1,286,634.50 5 2007 Tax Allocation Bond Issue-$32,600,000 Semi-Annual Debt Service Payment 470,000.00 2002 Housing Tax Allocation Bond Issue- 7 $12,000,000 Semi-Annual Debt Service Payment 537,224.38 2007 Housing Tax Allocation Bond Issue- 8 $87,056,348 Semi-Annual Debt Service Payment 6,711,568.75 TOTAL PROJECT AREA 1 $ 10,452,241.39 PROJECT AREA 2: 2002 Tax Allocation Refunding Bond Issue 1 $17,310,000 Semi-Annual Debt Service Payment $ 1,059,818.75 2 2003 Tax Allocation Bond Issue-$15,745,000 Semi-Annual Debt Service Payment 384,503.13 3 2006 Tax Allocation Bond Issue-$67,618,273 Semi-Annual Debt Service Payment 2,945,493.78 TOTAL PROJECT AREA 2 $ 4,389,815.66 PROJECT AREA 3: 1 2003 Tax Allocation Bond Issue-$4,745,000 Semi-Annual Debt Service Payment $ 91,132.51 2 2006 Tax Allocation Bond Issue-$15,029,526 Semi-Annual Debt Service Payment 274,437.51 TOTAL PROJECT AREA 3 $ 365,570.02 PROJECT AREA 4: 1 1998$11,020,000 Tax Allocation Bond Issue Semi-Annual Debt Service Payment $ 348,765.00 2 2001 $15,695,000 Tax Allocation Bond Issue Semi-Annual Debt Service Payment 655,983.75 3 2006$19,273,089 Tax Allocation Bond Issue Semi-Annual Debt Service Payment 1,005,410.00 TOTAL PROJECT AREA 4 $ 2,010,158.75 GRAND TOTAL $ 17,217,785.82 SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention PROJECT AREA 1: 2002 Tax Allocation Wells Fargo Bank December 2012 Debt Refunding Bond Issue Service Payment $22,070,000 $ 557,332.50 ROPS 2,line 1 2003 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $19,000,000 475,000.00 ROPS 2,line 2 2004 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $24,945,000 1,569,481.25 ROPS 2,line 3 2006 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $62,320,000 3,881,634.50 ROPS 2,line 4 2007 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $32,600,000 3,425,000.00 ROPS 2,line 5 2002 Housing Tax Wells Fargo Bank December 2012 Debt Allocation Bond Issue- Service Payment $12,000,000 226,124.38 ROPS 2,line 7 2007 Housing Tax Wells Fargo Bank December 2012 Debt Allocation Bond Issue- Service Payment $87,056,348 1,606,468.75 ROPS 2,line 8 Indian Springs Indian Springs Judgment related to Stipulated Agreement Mobilehome ISMHP 69,834.00 ROPS 2,line 9 Trustee Services Wells Fargo Bank Payments per existing contract for professional services 1,419.00 ROPS 2,line 15 Disclosure Services Willdan Payments per existing contract for professional services 1,176.00 ROPS 2,line 16 Legal Services Richards,Watson& Payments per existing Gershon contract for professional services 7,878.00 ROPS 2,line 17 1 I SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Legal Services Best,Best&Krieger Payments per existing contract for professional services $ 660.00 ROPS 2,line 18 Professional Association California Payments per existing Redevelopment contract for Association professional services 2,580.00 ROPS 2,line 19 Auditing Services Diehl,Evans&Co. Payments per existing contract for professional services 2,167.00 ROPS 2,line 20 Reporting Services Redevelopment Payments per existing Reporting Solutions contract for professional services 430.00 ROPS 2,line 21 Banking Services Union Bank Payments per existing contract for professional services 102.00 ROPS 2,line 22 Liability Insurance California JPIA Payments per existing contract for professional services 1,158.00 ROPS 2,line 23 Facilities Lease El Paseo LLC Payments on existing contract providing a central location for 31,998.00 ROPS 2,line 24 Pass-thru Trust Account Palm Desert Taxing Balances in trust per Obligations Entities negotiated pass-thru ROPS 2,line 25,as agreements 85,392.11 adjusted for actual Energy Independence Lawyer's Title Ins Payments for existing Program Corp contract related to title insurance services for 7,200.00 ROPS 2,line 26 Carrying Costs-Agency Guzman Gardening Payments for existing Property contract services related to Agency 1,944.00 ROPS 2,line 27 Carrying Costs-Agency Overland Pacific& Payments for existing Property Cutler contract services related to Agency 11,223.75 ROPS 2,line 28 2 SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Project Area Various Allowable Costs per Administration Admin Plan-staff, utilities,professional services $ 660,815.88 ROPS 2,line 30 Vested Employee RDA Assigned Obligation based on Benefit Obligation Employees accrued leaves and current MOU 352,053.36 ROPS 2,line 31 Stipulated Judgment Desert Rose Duties required under Case No.51124 Affordable Housing said court order Development 2,833,632.90 ROPS 2,line 32 Replacement Reserve Palm Desert Housing 1,100 Affordable Fund Authority Housing Apt Comp's 1,916,402.00 ROPS 2,line 33 PDHA Property RPM Company Payment on existing Management contract for Housing Authority property 123,708.00 ROPS 2,line 39 PDHA Properties Andy's Landscape and Payment on existing Tree contract for Housing Authority property 3,228.48 ROPS 2,line 40 PDHA Properties West Coast Arborist Payment on existing contract for Housing Authority property 5,603.51 ROPS 2,line 41 PDHA Property Utilities,Maint Payment on existing Maintenance Services,HOA Dues, contract for Housing Etc. Authority property 44,536.02 ROPS 2,line 42 Agency Owned Utilities,Maint Agency owned Properties Services,HOA Dues, properties monthly Etc. carrying costs prior to 24,999.96 ROPS 2,line 43 Additional Disclosures Willdan Additional disclosures on TAB's that will be required to report changes in the 1,400.00 ROPS 2,line 44 NSP Rehabilitation Mostar Heavy Payments on existing Equipment Corp contract for Rehab/Resale of Single Family-Allowable Portion 8,058.86 ROPS 2,line 51 3 SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Santa Rosa Apartments Utilities,Maint Per contract dated Services,Etc. 1/1/00-Allowable Portion $ 15,000.00 ROPS 2,line 52 PROJECT AREA 1 SUBTOTAL 17,955,642.21 PROJECT AREA 2: 2002 Tax Allocation Wells Fargo Bank December 2012 Debt Refunding Bond Issue Service Payment $17,310,000 244,943.75 ROPS 2,line 1 2003 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $15,745,000 384,503.13 ROPS 2,line 2 2006 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $67,618,273 962,493.75 ROPS 2,line 3 Trustee Services Wells Fargo Bank Payments per existing contract for professional services 7,812.00 ROPS 2,line 21 Disclosure Services Willdan Payments per existing contract for professional services 6,468.00 ROPS 2,line 22 Legal Services Richards,Watson& Payments per existing Gershon contract for professional services 43,386.00 ROPS 2,line 23 Legal Services Best,Best&Krieger Payments per existing contract for professional services 3,642.00 ROPS 2,line 24 Professional Association California Payments per existing Redevelopment contract for Association professional services 14,208.00 ROPS 2,line 25 Auditing Services Diehl,Evans&Co. Payments per existing contract for professional services 5,968.00 ROPS 2,line 26 4 SCHEDULE 7d • SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Project Area Allowable costs per Administration Admin Plan-staff, utilities,professional services.etc. $ 205,827.90 ROPS 2,line 30 Vested Employee RDA Assigned Obligation based on Benefit Obligation Employees accrued leaves and current MOU 109,655.94 ROPS 2,line 31 Stipulated judgment Vineyards,Emerald Duties required under Case No.51124 Brook(aka Palm said court order Desert 103)PDHA subside for 1,100 Affordable Unite 882,606.96 ROPS 2,line 32 PDHA Property RPM Company Payments on existing Management contract for the Housing Authority property management 12,366.00 ROPS 2,line 33 PDHA Properties Andy's Landscape and Payments on existing Tree contract for the Housing Authority property maintenance 322.50 ROPS 2,line 34 PDHA Properties West Coast Arborist Payments on existing contract for the Housing Authority property maintenance 559.95 ROPS 2,line 35 Replacement Reserve Palm Desert Housing 1,100 Affordable Fund Authority Housing Apt Comp's 357,281.00 ROPS 2,line 36 Reporting Services Redevelopment Payments per existing Reporting Solutions contract for professional services 2,368.00 ROPS 2,line 43 Liability Insurance California JPIA Payments per existing contract for professional services 6,384.00 ROPS 2,line 44 Pass-thru Trust Account Palm Desert Taxing Balances in trust per Obligations Entities negotiated pass-thru ROPS 2,line 45,as agreements 4,305.09 adjusted for actual 5 • SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Additional Disclosures Willdan Additional disclosures on TAB's that will be required to report changes in the allocation of tax increment and the payment on tax allocation bonds due to AB26. These disclosures would not have been necessary without this legislative change $ 600.00 ROPS 2,line 46 Banking Services Union Bank of Payments per existing California contract for professional services 558.00 ROPS 2,line 47 PROJECT AREA 2 SUBTOTAL 3,256,259.97 PROJECT AREA 3: 2003 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue-$4,745,000 Service Payment 206,132.50 ROPS 2,line 1 2006 Tax Allocation Wells Fargo Bank December 2012 Debt Bond Issue- Service Payment $15,029,526 519,437.50 ROPS 2,line 2 Project Area Allowable costs per Administration Admin Plan-staff, utilities,professional services,etc. 54,165.24 ROPS 2,line 11 Vested Employee RDA Assigned Obligation based on Benefit Obligation Employees accrued leaves and current MOU 28,856.82 ROPS 2,line 12 Stipulated Judgment Falcon Crest Duties required under Case No.51124 Affordable Housing said court order Development- Homeowners at lots 1 thru 93,et al.PDHA Subsidy for 1,100 Aef..iol.tn 232,264.98 ROPS 2,line 13 6 SCHEDULE 7d ' SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Replacement Reserve Palm Desert Housing 1,100 Affordable Fund Authority Housing Apt Comp's $ 71,470.00 ROPS 2,line 14 PDHA Property RPM Company Payments on existing Management contract for Housing Authority property management 12,381.00 ROPS 2,line 15 PDHA Properties Andy's Landscape and Payments on existing Tree contract for Housing Authority property maintenance 322.50 ROPS 2,line 16 PDHA Properties West Coast Arborist Payments on existing contract for Housing Authority property maintenance 559.99 ROPS 2,line 17 Trustee Services Wells Fargo Bank Payments per existing contract for professional services 4,134.00 ROPS 2,line 18 Disclosure Services Willdan Payments per existing contract for professional services 3,420.00 ROPS 2,line 19 Legal Services Richards,Watson& Payments per existing Gershon contract for professional services 22,938.00 ROPS 2,line 20 Legal Services Best,Best&Krieger Payments per existing contract for professional services 1,926.00 ROPS 2,line 21 Professional Association California Payments per existing Redevelopment contract for Association professional services 7,513.00 ROPS 2,line 22 Auditing Services Diehl,Evans&Co. Payments per existing contract for professional services 3,156.00 ROPS 2,line 23 Reporting Services Redevelopment Payments per existing Reporting Solutions contract for professional services 1,252.00 ROPS 2,line 24 7 SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Pass-thru Trust Account Palm Desert Taxing Balances in trust per Obligations Entities negotiated pass-thru ROPS 2,line 25,as agreements $ 20,734.80 adjusted for actual Additional Disclosures Willdan Additional disclosures on TAB's that will be required to report changes in the allocation of tax increment and the 400.00 ROPS 2,line 26 Liability Insurance California JPIA Payments per existing contract for professional services 3,378.00 ROPS 2,line 27 Banking Services Union Bank of Payments per existing California contract for professional services 294.00 ROPS 2,line 28 PROJECT AREA 3 SUBTOTAL 1,194,736.33 PROJECT AREA 4: 1998$11,020,000 Tax Wells Fargo Bank December 2012 Debt Allocation Bond Issue Service Payment 205,475.00 ROPS 2,line 1 2001 $15,695,000Tax Wells Fargo Bank December 2012 Debt Allocation Bond Issue Service Payment 303,821.25 ROPS 2,line 2 2006$19,273,089 Tax Wells Fargo Bank December 2012 Debt Allocation Bond Issue Service Payment 302,466.25 ROPS 2,line 3 Trustee Services Wells Fargo Bank Payments per existing contract for professional services 96.00 ROPS 2,line 8 Disclosure Services Willdan Payments per existing contract for professional services 84.00 ROPS 2,line 19 Legal Services Richards,Watson& Payments per existing Gershon contract for professional services 546.00 ROPS 2,line 10 Legal Services Best,Best&Krieger Payments per existing contract for professional services 48.00 ROPS 2,line 11 8 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY SCHEDULE AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention Professional Association California Payments per existing Redevelopment contract for Association professional services $ 179.00 ROPS 2,line 12 Auditing Services Diehl,Evans&Co. Payments per existing contract for professional services 150.00 ROPS 2,line 13 Reporting Services Redevelopment Payments per existing Reporting Solutions contract for professional services 30.00 ROPS 2,line 14 Liability Insurance California JPIA Payments per existing contract for professional services 13.00 ROPS 2,line 15 Banking Services Union Bank of Payments per existing California contract for professional services 7.50 ROPS 2,line 16 Project Area Allowable costs per Administration Admin Plan-staff, utilities,professional services,etc. 162,495.72 ROPS 2,line 19 Vested Employee RDA Assigned Obligation based on Benefit Obligation Employees accrued leaves and current MOU 86,570.46 ROPS 2,line 20 Stipulated Judgment PDHA subsidy for Duties required under Case No.51124 1,100 Affordable said court order Units 696,795.00 ROPS 2,line 21 Replacement Reserve Palm Desert Housing 1,100 Affordable Fund Authority Housing Apt Comp's 273,489.00 ROPS 2,line 22 PDHA Property RPM Company Payments on existing Management contract for Housing Authority property management 12,366.00 ROPS 2,line 23 PDHA Properties Andy's Landscape and Payments on existing Tree contract for Housing Authority property maintenance 322.50 ROPS 2,line 24 9 SCHEDULE 7d SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUPPORTING SCHEDULE-CASH BALANCES FOR RETENTION TO MEET ENFORCEABLE OBLIGATIONS IN FISCAL YEAR 2012-2013 ON ROPS 2 Enforceable Obligation/ Project Name/ Other Legal Requirement Debt Obligation Payee Description Amount Supporting Retention PDHA Properties West Coast Arborist Payments on existing contract for Housing Authority property maintenance $ 559.98 ROPS 2,line 25 Additional Disclosures Willdan/RWG Additional disclosures on TAB's that will be required to report changes in the allocation of tax increment and the payment on tax allocation bonds due to AB26. These disclosures would not have been necessary without this legislative 600.00 ROPS 2,line 26 Pass-thru Trust Account Palm Desert Taxing Balances in trust per Obligations Entities negotiated pass-thru ROPS 2,line 27,as agreements 25,503.59 adjusted for actual NSP Rehabilitation AA Max Payments per existing contract related to Rehab/Resale of Single Family Dwelling- Allowable Portion 13,552.56 ROPS 2,line 30 PROJECT AREA 4 SUBTOTAL 2,085,170.81 GRAND TOTAL $24,491,809.32 10 SCHEDULE 8 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AGREED-UPON PROCEDURES RELATED TO ALL OTHER FUNDS SUMMARY OF BALANCE AVAILABLE FOR ALLOCATION TO AFFECTED TAXING AGENCIES As of June 30,2012 Total amount of assets held by the Successor Agency as of June 30,2012-(Procedure 5) $ 237,808,728 Less assets legally restricted for uses specified by debt covenants,grant restrictions, or restrictions imposed by other governments-(Procedure 6) (113,060,053) Less assets that are not cash or cash equivalents (e.g.,physical assets)-(Procedure 7) (71.000.733) Le balances thelegally rit fe ndig an fligation (ssnet a of projected ar annual lega revenues restc availableedorth tofu fundn thoseof obligationenorceable s)-(Pob rocedure 8) (15,089,381) Less balances needed to satisfy ROPS for the 2012-13 fiscal year-(Procedure 9) (27,979,432) • Less the amount of payments made on July 12,2012 to the County Auditor-Controller as directed by the California Department of Finance - Add the amount of any assets transferred to the City for which an enforceable obligation with a third party requiring such transfer and obligating the use of the transferred assets did not exist-(Procedures 2 and 3) - Amount to be remitted to County for disbursement to affected taxing agencies $ 10,679,129