HomeMy WebLinkAbout1986/07/02 - Agenda Packet - RDAtt� �
MY OF
Y ' C RANCHO CUCMFjn ,;. A
a R E OPMEN T AGENCY
S
l�n
Lions Park Community Center
9161 Ease Line bad
Rancho Cucamonga, California
July ?. 1986 — 7tQQ e. me
1. Roll Call, Hikels _, laqust _, King
Dahl _, and Wright _.
L CWIMMf1LZM
se follwing Cosset Calemdur itome are expected to be
routine and ureaetzmezafel. They vill be acted spot by
the 1D► at one tim sitbost discusie.
1. Approval to rcceive and file currant Anvutamt 1
Fcbadule av of Jane 25, 1986.
2. Approval of Kinutest Jane 4. 1986 j s,
1. Bet public hearing for July 16, 19M, to eontidur the C
use of bond proceeds for construction of public
fecllitiae. y�
Approval of a laeolutiou approving padiainary official 4
statement for the 1986 Tar Allocation Bond issue,'
{ autborlaing the publication of s uotic♦ inviting bt!s
for said bonds, and autborisiag tba Ikscutive Dirautor,
d' of his dcaigeaa, to award the sale of the bonds lased
on certain parameters.
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1088 SUMITTED
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CITY OF RANCHO CUCAn1ON,
REDEVELOPMENT AGENCY
MEMORANDUM
0AT8, Jane 23. 1986
T0, Chairman and Members of the Redevelopment Agency
FROM, Jim Bart. Treasurer
SUBJECT, Receive and
Pile -
Ranthe Cucamonga Radavelopmant Agency
Investment
Schedule Status Report
an of June 25,
198E "
j6jS,jQ CC,vAg LjMxTrL0PMeMT LGMQ,
�,T PGg�TATUS RKPORT
INSTITUTION
PUECOASS
DATE
MATURITY
rATR
AMWI—
ISTERBST
--"%L —
California Federal
05/05/86
07/03/96
200,000.00
06.700
LAIF
02/28/86
as needed
1.906.000.00
08.420
IAIF
02.28.86
as needed
3.10u,000.00
08.420
Great Western
06/06/66
12129186
1.188.291.23
07.050
Great Wasta -a
03/10/86
07 /08 /96
500.00O.CO
07.350
first Trust Bank
04/07/9;
04/07/87
500,000.00
06.600
Southwest Bank
04123/86
07/22/86
100,000.00
06.500
Royal Oaks 8 6 L
04/23/86
11/19/86
100.000.00
07.375
Coast SAL
04/23/86
10/20/86
100,000.00
07.12;
Westport Savings
04/23/66
10/20/66
100,000.00
07.625
Security Federal
04123/86
10/20/86
103,000.00
07.200
pastern SAL
04/23/86
10/20/86
100,000.00
06.730
Mercury SAL
04/24/Bb
11/24/87
100.000.00
07.250
Mutual SAL
04/24/86
01/23/87
100,000.00
07.000
Bolden Pacific
04/24/86
11/07/06
100,000.00
06.750
Smart SAL
04124/86
04/24/87
100,000.00
O8.000
County Savings Bank
04/24 -36
04/24/87
100,000.00
07.875
Lincoln An SAL
04/24/86
12/19/86
100.000.00
07.700
Bank of America
04/28/86
04128187
500,000.00
05.775
Glendale Federal
04/26/66
12/12/66
100.C' `..TO
07.250
Crocker Nat. Bank
04/29/86
06/30/86
500,000.00
06.100
First Federal Say Bank
04130/86
04/30/87
100,000.00
07.700
Centurion Savings
04/30186
10/27/80
100,000.90
07.125 _ C��
;� SIlJ7
1
Bel Air 66L
W1 Aaerica S&L
Ionian S&L
Banta Paula S&L
great Pacific UL
Brookside 66L
Great Vestera S&L
Great Western 69L
Pacific 9ariote Bank
As of 6/25166
+ -a
Ar
f`03/20196 09/03166
03/20/86 03/20/87
05/20/86 05120/P7
03/20/66 12/05/66
05/23186 03126167
03/25/86 05/26/67
06116/86 12/12/66
06/16/66 03/13/97
06115/86 06115/67
Grand Total
■
100,000.00 07.500
100.000.00 01.1.-0
100,000.00 67.750
300.000.00 07.250
1CO.600.00 07.673
10,000.00 07.900
5001000.00 03.650
500,000.00 06.950
500.000.00 07.500
11,98812 91.25
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CITY . Jacdo Comm=%
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Innnblv.s Bcacs IrtID -a
jIIaL. N..e1»
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_ a.r..... a /•!1
rgrler u&Clq et the Idn.lopmat d1ex7 el the city of Katebe Coea.9q.
set an bdtddgl. Jae 6. JOBS. l[ the Lleat tart Comalty faster. 9161 Iua
Lime Rod, keacho C.Cuo'g 7De
. "Mist vs Called to order It 7t1O 9.a by
cb.inum Jeffrey Kill.
hunt can Sauey 1Gion, Joe 0. ulkd.. Charlie J. Iyut ii, blc►Md k.
Oe 111. Saida J. brl►bt. ut 4".lrun jdfrcy I1q.
Also Sudan M[.t Imutire Director. List" 9, LaaaerWt Do[ aF Dtrattar,
.ant Lary ad dubtaet 9Mr u,7. Debra Muse.
aaeave
I_ ttYa1.Y .•I,ellaa
■r. Wassonm stated that It" 13 eu au add it" to bell ease the City sap
assay.
10MOR, brad by Ytka7e. eue04ed by bright b and this itm to the coolant
caluder. Notice eard'd daai.Osel7 7-0.
1.dyyrvrCl to rewire &d file carrot larettedt R►04da d of Key 10, 196
I.dpROral of Colas Sulu *ui<lpQ bard Diurict Sam laar.uet /as -7Om
atlmete far 77 19W -37.
prCl u
i�ra to yc►ue "Worse r q*Lp t to the &asset at 91,691.00. IDSJC
UC7I9b. Raged by blkele, eeudd by "be to approve the Codut 4ladar.
Nock. cruet usaimuly 1 -0.
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t. djovre to 019904 stanten to disease ee&treat egotiai ass.
107ICK, 0oved by Kl4I&, aseacdd by Kill to etjeum to Closed useloe is
dl.ne «acrd[ egetlatfcd
for the city Ad latu04 eO the small, aide of
Otb street bane" Mlle .ed tingled. itfoa carried eaeaineal7 9-0,
a9atiq djamasa at 7811 ►.a at U cecoovau.
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t CITY OF RANCHO C
r" REDEVELOPMENT
STAFF REPORT
DATE: July 2,19!6
TO: Chairman aid Members of the Redevelopment Agency
FROM: Jack Lam, IaCli, Deputy Bxeeutive :)!rector
BY: Linda D. De afels, Senior Redevelopment Analyst
l
SgBJECTt ADOPTION O? A RESOLUTION AUTHORIZING THE PUBLICATION OF
THb NOTICE OF 1NV1T G Blif c•)R TH PROPDSLD 19.,6 r!'AA.
AL C 1 O S- SHR. A P . f W® RI T JFii Air
THE
PR R O C T'EME r n'" n5 T —WU
UALE O. BON SR MM T!R
BACKGROUND: As the Agency will recall, the concept of sailing a tax allocation Issue
prior to September 1, 1986 was discussed during the recent budget review scstions. The
Purpose for selling a bond Issue prior to September vas to maximize the possible use of
the proceeds of the bonds which might otherwise De restricted should Tax Reform
become effective. In order to be pr 'used for the sale of the 1986 Bonds several
procedural requirements must be completed. The, first requirement is the pubucatton of
a notice which advertlres tt:o pntential kale of bonds to financial firms so thut bids may
be submitted. Another procedural requirement is the publication and distribution of a
Preliminary Official Statement (OS) describing the specific parameters of the bonJ
structure end security of the issue.
ANALYSIS: Earlla• thlnldng contemplated an "escrow structure' for the issue. Since
then, the Financial Advisor has developed a structure whereby bonds are 4asued based on
Increment that is to be received In the following fiscal year thereby avoldlrg the escrow
strurture. Briefly what this means is that since the bonds are expected to be sold In
August of 1988 (fiscal year 86/87) the slxo of the issue can now be based on the
Increment that is to be received In fiscal year 67/88. Given the ability to Issue
_egattut
neat years Increment the Agency car. leverage a principal amount of $32,_again t
(approximately S 28,000,000 net). This bonding amount would be the maximum that the
Agency could issue and still reserve bonding capacityy for a potential bond Issue for the
benefit in the Foothill Fire Protection District. This Issue, combined with the current
outstanding and future, bonding obligations, will maxlmlxa the Agency's bonding
capabilities as presently defined in the Redevelopment Pbm.
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' 1983 TA Banda -
July 2,1986
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-' Bend Counsot has preparud a Rwa luticn vihldt, If adopted by the Agency, will direct
staff to begin the necrsatxy,noticing 14 distribution of the PreUrrJnary Officlel
' Statement. 'he preliminary Offletsl Stater tent, prepared try the Financial Carstdtant. Is
$ " also attachoc for the Agenc s review and approvaL.
i
C Since the be id interest rates aid underwriter's discount can not be 9etermined until -tlie
bid process has been concluded there are tetslls that will not be +vallable until shortly
before the bonds are to be sold. For this reason the attached Resolution provides the
the bids rbased on Executive
ipecifn parameters, ]Ige se parameters Include Identify( nd eihe n
;'•, maximum discount and Interest rate that would be acceptable to the Ageny as well ae
L will be11based upon Agency conditions at the time they are submlltttted rtid will be
Y . evaluated in a competitive manna.
RECOMMENDATION: Tho Agency adopt the attached RaroluUon which authorizes staff
S` to proceed w th the axle of the 1986 Tax Allocation Bonds - Series t
i
` Respectfully Spbmitted,
--4�c 9M. C
> Deputy Executive Director
attachments: Resolution
preliminary Official Statement
F.
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28000.5 JHHW:ACH:ea "062S.M' H7280 ,'• ,�
RESOLUTION No. _
'. RESOLUTON OF THE RANCHO CUCAMONGA REDEVELOPMENT
AGENCY AUTHOAZONG AND DIRECTING THE NOTICE OF SALE OF
RANCHO CUCAMONGA REDEVELOPMENT AGENCY RANCHO ,
REDEVELOPMENT PROJECT TAX ALLOCATION BONDS, 1986
` SERIES A. ADOPTING OFFICIAL NOTICE OF SALE, APPROVING
DibTRIBUT M OF PRELIMINARY OFFICIAL STATEMENT,
AUTHORIZING SALE OF BONDS ON CERTAIN TEAMS AND
CONDITIONS, AUTHORRING OTHER OFFICIAL ACTIONS AND '
PROVIDING OTHER MATTERS PROPERLY RELATING THERETO
WHEREAS, the Rancho Cucamonga Rodevelopment Agency (the 'Agency')
intonds to authorize by supplemental resolution the lisuance by the Agency, oursuanl to
Resolution No. RA 8307, adopted October 19. 1983. as amended, of Its Rancho
Cucamonga Redevelopment Agency Rancho Redevelopment Project Tax Allocation
Bonds. 1986 Series A. In the principal amouit of S32.345.00D (the 'Bonds") and It is
desirable that the Bonds be offered for puulic auto at this time; and
WHEREAS, the Agency also desires to authorize the sale of the Bonds, upon the
terms and conditions hereinafter sot forth;
NOW, THEREFORE, BE IT RESOLVED BY THE Rancho Cucamonga
Redevelopment Agency, as follows.
ction , Tuesday. July 29, 1988, and (without further advertising and so long as
a proposal has not theretofore been accepted by the Agency) on Tuesday. August 5, 1988
and Tuesday. August 12, 1988, at the hour of 11.00 a.m. (P.D.S.T.) is hereby fixed as the
time, and the offices of Stone S Youngberg, One California Street Suite 2800, San
Francisco, California, is li .xeby fixed as the piece at which bids will be received for the
purchese of the Bonds, as described in and subject to the terms and conditions of the
Official Notice ut safe hereinafter sot forth. The Bonds shall be awarded within 49 hours
thereafter by tho Executive Director (or other oasigneo) on behetl of the Agency to the
bidder who submits the N1 for ti+1 Bonds which results In the lowest net interest cost to
the Agency to be dotormined In accordance with the Official Notice of Sale.
Section 2. The Secretary of the Agency Is hereby authorized and directed to
publish notice of sale of the !ands one time no later than July 18. te85, in the rho Daily
Repon. ,n )Metal newspaper circulated In the City of Rancho Cucamonga. Such notice
shall be to substantially the fallowing form, provided that the Secretary shall cause such
notice to set forth such modifications as shall be necessary to cause this notice to
conform to the terms of the Bonds as such terms shall be set forth In the PraQmlriary
Official Statement approved and distributed pu,ouant to the provisions of Section 5 of this
Resolution.
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OFFICIAL NOTICE OF SALE
RANCHO CUCAMONGA REDEVELOPMENT AGENCv
RANCHO IMPROVEMENT PROJECT
TAX At LOCATION BONDS, 1986 SEnIE.i A
N(,TICE IS HEREBY GIVEN that soaled proposals will be received by a
represermtive of the Rancho Cucamonga Redevelopment Agency (the "Agorw) at the
offices o Slone 8 Youngberg, One California Street, Suite 2000, San Francisco. California,
on
TUESDAY. JULY 29, 1985
without further advertising and so long as a propo :al has not Lhennolore bean accepted by
the Agency) on Tuesday. August 5, 1986 and Tuesday. August 12. 1986. at 11:00 AM.
(P.D.S.T.) for the purchase of $32,345,000 principal amount of bonds of d;a Agency
designated the 'Rancho Cucamonga Redevelopment Agoncy Rancho Redevelopment
Project Tax .iUOCaUon Bondi, 1986 Series A" (the 'Bands'), aLlhorized to be Issued
under the provisions of Resolution No. RA 83.07, adopted by the Agency on October 19,
1983, as amended, and a suoplemontal rosol➢Uon to be adopted by the Agency prior to
delivery of the Bonds to the successful bidder (together the "Resoutions "j, and pursuant
to the Community Redevelopment t aw of the State of California (being Part 1 of Division
24 of the Health and Safety Cade of the S13ta of California). The Bonds are being Issued
on a parity with the ApenWs outstar„fing Rancho Redevelopment Project Tax Allocaben
Bonds. 1984 Series A. The Bands are more Farticulaxly to be desc,lhad in the
Resolutions and In the Preliminary Official Statement copies of which wil be furnished to
any Interested bidder upon request. See "Official Statement" herein. The Bands are
generally described as follows:
ISSUE $32315.000 principal amount consibbag of fully registered Bonds without
coupons .1f the der- "nation of $5,000 each or any Integral multiple thareol, all dated as
Of August 1, tabs. Additional Bonds may be Issued pursuant to the Resolutions or
pursuant to other resolutions authorizing the Issuance of such additional bonds. but only
subject to the limitations and conditions set forth In the Resolutions. The exact issue size
and the amounts of the various sarial maturities and Sinking Account Installments (both
herein after dosrr+bod) may be modified, as shall be set forth In the Preliminary Official
Statement See ^Rclal Statement" heroin.
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1, 2001, and on each May 1 thereafter to and Including May 1, 2015, at a redemption peco
equal to the principal amount thereof plus ac rued Interest to Mq date of redempdon,
`
without promlum, to No fallowing amounts:
Maturity Date Principal Maturity Date
December 1 Amou01 Decembor Amou9)
2003 $ 960,000 2910 $1,670.000
MATURITIES: The Bonds will mature as follows:
2004 1,040.000 2011 1,010.000
2005 1,125.LV)0 2012 1,960.000
2006 1,720,000 2013 2,120,000
2007 1,320,000 2014 2,295,000
2008 1,425,000 2015 2,485,000
2009 1,545,000 2016 (maturity) 2.695,000
_
Maturity Date
Principal
Maturity Date
Principal
May I
Amon i
Mav 1
Amotin
1987
$310,000
1995
$ 525,0XI
l +,
1988
339.000
1996
565,000
r y
1981
355,000
1997
605,000
1990
279,000
1998
655,000
1991
400,000
1999
705,000
• +
1992
42;.,009
2000
760,000
1993
45!,.000
2001
820,000
•�
1994
490,000
2002 (maturity)
890,000
2016
623,670,000
�.
SINKING ACCOUNT INSTALLMENTS: The Bonds maturing May 1, 2016, win be
'
subject to mandatory call and redemption by lot froln sinking account Installments on May
1, 2001, and on each May 1 thereafter to and Including May 1, 2015, at a redemption peco
equal to the principal amount thereof plus ac rued Interest to Mq date of redempdon,
`
without promlum, to No fallowing amounts:
Maturity Date Principal Maturity Date
December 1 Amou01 Decembor Amou9)
2003 $ 960,000 2910 $1,670.000
2004 1,040.000 2011 1,010.000
2005 1,125.LV)0 2012 1,960.000
2006 1,720,000 2013 2,120,000
2007 1,320,000 2014 2,295,000
2008 1,425,000 2015 2,485,000
2009 1,545,000 2016 (maturity) 2.695,000
_
The Agency may purchase Bonds from moneys deposited as sinking account
installments.
:i
REDEMPTION: Bonds mavring on or before May 1, 1993, are not oub)act to call
~,
ar redemption prior t3 the respectiw, maturity dales. The Bonds maturing on or after May
1, 1994, may he called before - ,klarity and redeemed at the option of the Agency M whole
or In part in brverse order by maturity and by lot within a maturity from available funds on
:r 'r
any May 1 or November 1 commencing May 1, 1993, upon payment of accrued interest to
the oate of call at a redemption price as shown in the following schedule (computed upon
the principal amount of Bonds called for redemption). Notice of call for redemption shall
r y
be given as provided In the Ro3olu8ons.
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N �; �.;D <.i" • fit- 'y¢.`yY I'P.�2 "� ~' _ T � =_` v' '• ��± l tom, ���''�
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+�*•?e�n�ui
xeilL91HedemAUM
m=
1993
2-12-6
1994
1/:.
1995
1.1/2
1.60.1
1996
1 °1% 2
1997
L7.e
1996 and thereafter
0
Bonds to be redeemad will be At pro rata portion of the aggregate principal amount
of all outstanding Bonds and any outstanding additional parity bonds authorized to bo
iss•ted under the Resolutions.
PAYMENT Both principal of and Interest pn the Bonds and any premium upon the
redemption thereof ar6 oalable in Ibwful money of tho Unitod ;fates of America. rdncipal
on the Bot,ds Is payable at the corporate trust offica of Bank 0, America NnUonal Trust
and Savings Association, the fiscal agent of the Agency (the 'Fiscal Agent "), In Los
Angeles. Califomid. Interest hereon (Including the final Interest paymort upon maturity or
earlier redemption) is payable by chock or draft of the Fiscal Agent maned to the
registered owner hereof at the r,';tered owners address as It appears un the
registration books maintained by *the Fiscal Agent or at such other address as the
registered comer may have filed with the Fiscal Agent for that pu pose
REGISTRATION: Bonds maybe reregistered and may he exchanged for other fully
reg stered Bonds of other authorized denominations. in each case for the same aggregate
Principal ar ount and of the same maturity. There will be no charge for the first exchange
of any Bond ,n the form In which it is originally Issued.
PURPOSE OF ISSUE. Th o Bonds are being Issued !o aid In the financing of the
Rarcho Improvement Project of the Agency. Bidders are rof3rrod to th3 Preliminary
Offit.ial Statement for further particulars. (Sea 'Official Statement" herein.)
SECU91TY* The Bonds and the Interest thereon and all other Bonds and the
Interest thereon (to the extent set forth In the Resolution.-) are payable from. and are
secured by a charge and lien cn the Tax Revenues derived by the Agency from the
Project Area jas those terms are defined In ft Resolutions) and, to 6.3 extent set IoM In
the ROSOluti0ns, all such Tax Revenues are exclusively and irrevocably pledged to and
constitute 0 bust fund, in accordant- wig, the terms hereof and the provisions of the,
Resolutions and the Law, for the sectrrdy, and payment of redemption of, and for the
s3curtty and pymonl of Interest on, the Bonds on a party with each other and with the
Agency's outstanding Rancho Redevelopment Project Tat, Allocation Bonds, 1984 Series
A. Notwithstanding the foregoing, in accordance with the Resolutions, certain amounts out
of Tax Revenues may be applied for other purposes as provided In the Ro3elutions.
bidders are referred to the Preliminary Official Statement for further Particulars. (See
"Official Statement" ;aroln Also see 'Municipal Bond Inrztradco" below.)
a6a g renerves
l o( Isuithe tfa a of sa eofthe Bonds. commitment from a municipal bndnrer Insuring' ,
payment N principal and Interest of tho Bonds and to obtain the assignment of a credit
ratinq for the Bonds based on the issuance of such municipal bond Insurance. The t
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F' Agency also reserves the right to offer the Bonds for purchase e;thnr with such bond i
,t insurance or without such bond Insurance. In the event the Agency offers the Bands with bond Insuranca, the Agency will pay the premium for such bond Insurance from the
proc8e0S of the Bonds. The Agency will, prior to Uho sale of the Bonds, notify bidders of
the obfalning of any such commitment for munHpal bond Insurance, of any alternative
bidding p ocedures with respect to such bond Insurance and of any such credit rating.
TAX income received dMby private holders r m notes` bondsoor other obligations Bof the same type and character shall be doelared to be taxable (either at the time of such declaration
or at any fbture date) under any federal Income tax law3, either by the terms of such laws
or by rulins of Mderal Income tax authority or official whk:b is followed by the Internal
Revenue Servicb, or by ducia!on of any fedeal court or (b) any federal income tax lavr Is
adopted which will `ave a substantial advorse tax effect upon holders of the Bonds as
such, the successful bidder may at the bidders option, prior to the tender of the Bonds by
the Agency, be roileved of the bidders obligation under the contract to purchase he
Bonds, and a -•rch case the deposit accompanying the bidders bid .:AI be returned.
ARBITRAGE On the basis at the facts, estimates and circumstances (including
covenants of the Agency) In existence on the date of Issue of the BondR it Is not expected
that the proceeds of the Bonds will be used In a manner that will cause the Bonds to be
arbitrage bonds and the Agency will fumish to the successful bidder at the time of delivery
of the Bonds an arbitrage certificate certifying to ';to foregoing.
LFGAL OPINION The legal opinion of Jones Hall Hill & White, A Professional Law
Corporation, San Francisco, California, bond counsel, approving 'ho valldiw of the Bonds
and staling that Interest on the Bonds is exempt from Income taxes of thb United States of
America, under present Federal Income tax laws, regulatons, rulings and Judicial
decisions and that such in!arest lb also exempt from personal Income taxes of the Stale of
California under present state Income tax laws will be furnished to the successful bidder
without charge. The legal opinion will be subject to laws affecting creditor's rights and to
the exorcise of Judicial discretion In accordance with general principles of equity A copy
of the legal opinion, certified by the officlal In whose office the original is filed, will be
printed on each Bond without charge to the purchaser
TERMS OF SALE
FORM OF BID; MAXIMUM DISCOUNT All bids must be for not less than all of the
t :nds hereby offered for Salo and accrued interest to the date of delivery, plus such
premlt0m as is offered or loss such discount as specified In the bid; provided that the
amount of discount specified In any bid shag not exceed 3.501/. of the principal amount of
the Bonds. 12L4YIded furth :L =, 0 the Agency shall obtain a commitment for municipal
bond Insurance and a credit rating based thereon, the amount of the discount shall not
exceed 2% of Ine principal amount of Bonds. See "Sduritr any "Municipal Bond
Insurarao" herein for further particulars. Each bid, together with the bidder's check., must
be enclosed in a sealed envelope addressed to the Socretary of the Rancho Cucamonga '
Redevelopment Agency and delivered 10 Its representative at the address mentioned
above with the envelope and bid clearly marked "Proposal for Purchase of Rancho
i
.5.
f ". Cucamonga Redevelopment Agency Rancho Redevelopment Project Tax Allocation
` Bonds, 1966 Series A" Each bid roust be In accordance with the terms and conditions
set Porch In this notice.
INTEREST RATE: The maximum rate bid may r exceed twelve pbrconl (12%)
per annum. interest is paydble commencing on May 1 1987, and thereafter semiannually
on No.ember 1 and May 1 In each year Bidders must specify the rate of Interest which
the Bonds hereby offered for sole shall boar Each Interest rate specified in any bid must
be in a multiple of one- hven"eth of one percent per an,lum and a zero rate of Interest
cannot be specMed The Bonds of each maturity shall bear the same Interest rate. No
` Interest payment shat be evidenced by more than one Interest rate. The Bonds shall bear
Interest from their data to their stated maturity dale at tie Interest rate specified in the bid.
The interest rate bid on any maturity of the Bonds shall be equal to or shall be greater than
the Interest rate on any preceding maturity of the Bonds. Any premium must be paid as
pan of the purchase price, and no bid will be accepted which contemplates the
cancellation of any Interest, or the waiver of any interest or other concession by the bidder
as a substitute for payment in fun of the purchase price. alds which do not conform to the
terms of this paragraph will be rejected.
HIGHEST BID The Bonds will be awarded to the highest responsible bidder
cnn;:d6rlag the Interest'raU, .pocl8:d end the premium offered, it any, and discount bid, if
any Thr, highest bid will . determined by deducting the am'vmt of the premium bid (if
any) (rom. and adding the amount of discount bid (it any) 10, tie tolai amount of Interest
which the Agency would be required to pay from the dale of the Bonds to their maturity
date at the rate specified In the bid, and the award will be made on the basis of the lowest
net Interest cost to the Agency. For purposes o)f determining Interest cost the Bonds
maturing May 1, 2018, will be deemed to mature on May 1 in the amounts and In the years
set forth above under the heading "Sinking Account Installmonts" The purchaser must
pay accrued Interest from the date of the Bonds to the date of delivery All Interest will be
computed on a 360 -day year basis. The Cost of printing the Bonds will be borna by the
Agency.
RIGHT OF PEJEC11ON• The Agency reserves the right In its discretion, to reject
any and all bids and to waive any irregularity or informality in any bid.
PROMPT AWARD: Subject to the above conditions of sate, the Executive Director
of the Agency (or other designee), on behalf of the Agency, wi:l take a:Uon awarding the
Bonds or the Agency will take action rejecUng all bids not later than lortyoighl (48) hours
after the Ume ho.oln prescribed for the receipt of a bid; provided that the award may be
made after the expiraJon of the specified Ume if the bidder shall not have given to the
Aganey notice In writing of the withdrawal of such bid.
DELIVERY AND PAYMENT, TEMPORARY BOND: Delivery of the Bonds will be
made to the buccessful bidder at the office of Jones Hall Hill & White. A Professional Law
Corporation, Four Embarcadero Cantor, Suite 1950, San Francisco, California. as soon as
the Bonds can be prepared. Payment for the Bondc must be made in federal reserve
bank funds or other funds immediately available to the Agency in San Francisco, '
California. Any expense of providing such funds $.hall be bomo by the purchaser. In the
event that the Agency Is unable, for and reason, to deliver definitive Bonds prior to
September 1, 1988 (or such earlier dale as the pending "Tax Reform Act of 1985" shall
zi
RA.6i�'.:+' L:i0 �iQ+i.�v:k:+�..r.4v
become effective), then the successful bidder shall be requires to accept dolivery and pay
for temporary Bonds, whist shall be exchanged for definitive Bonds as soon as the
' definitive Bonds can be prepared.
RIGHT OF CANCELLATION: The successful- bidder shall have the right at its
option, to cancel the contract of purchase If the Agency shag fail to execute the Bads and
tendor the same for delivery within 60 days from the dale of sale thereof. and in such
event the successful bidder shall bs entitled to the retum of the doposh accompanying Its
bid.
BID CHECK A certified or cashier's check drawn on a resNrtsiblo bank or trust
company transacting business In the State of California, In the amount of $100,000
Payable to the order of the Agency, must accompany each proposal as a guaranty that the
Adder. it successful, will accept and pay for the Bonds In accordance with the terms of his
bid The check accompanying any accepted proposal shall be cashed and the proceeds
thereof applied to the purchase price. The check shall be cashed and the amount thereof
retained by Die Agency it, after the award of the Bonds, the successful bidder fails to
complete its purchase on the terms slated in Its proposal The check accompanying
each unaccepted proposal will be returned promptly. No Interest will be paid upon the
deposit made by airy bidder
STATEMENT OF NET INTEREST COST: Each bidder is requested, but not
required, to state Ir its bid the toI ^I not Interest cost of Its bid In dollars to the Agency, and
the percentage not Interest cost determined thereby, which shall be considered as
Inlomtal ve only and not binding on either the bidder or the Agency.
NO LITIGATION, There Is no litigation pending oncoming the validity of the
Bonds. the existence of the Agency or the titre of the officers thereof to their respective
offices, and the Agency will furnish to the successful bidder a nodNgation certificate
cerbfy,ng to the foregoing as of and at the time of the delivery of the Bands. Eidders are
referred to the offictal statement for fuller particulars.
CUSIP NUMBERS: It Is anticipated that CUSIP Identification numbers will be
printed on the Bonds. but neither the failure to print such number on any Bond nor any
error with respect thereto shag constitute cause for failure or refusal by the purchaser
thereof to accept delivery of and pay for the Bonds In accordance with the tams of Its bid.
All expenses In relation to the printing of the CUSIP numbers on the Som shall be paid
for by the Agency: provided however, that the CUSIP Service Bureau charge for the
assignment of said numbers shall be the responsibility of and shag be paid by the
purctutser
OFFICIAL STATEMENT- The Agency has caused a P eriminary Official Statement
to be prepared containing additional Information relating to to Bonds and the Agency,
copies of which may be obtained at the office of the Agencys Financing Consultant ,tone
& Youngberg. One California Street. 28th Floor, San Francisco, California 94111,
telephone (415) 981 -1314. The Agency will famish the successful bidder with a
reasonable number of copies of the final Official Statement without charge.
CERTIFICATE: The Agency will provide to the purchaser of the Bonds a certificate,
signed by an officlal of the Agency, crlUming to the purchaser that at the time of the
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from Ome 10 time, y `•'
required to cause a ch �p elliiminary Official Statement two' ontalnl any Merentormatl�n- .
necessary to accurately daccribe the Bonds. The final Ofnclal Statement relating to the
Bonds sha0 be submitted to the Executva Director of the Agency fat approval
Section : The Bonds shall be awarded on behalf Of tho Agency by the Executive
Director of tho Agency (or In his absence or unavailability, by the Treasurer of the Agency ,
t) the highest responsible idder ItY Of the Treasurer. in accordance wilhy o the Sonior approved eOrliclat Notice of tys"
therefor, provided that the nct effective interest cost of the.Boads to Ole Agency does not
site
exceed 3 50% per annum and the he dis- ount on the purchase price of Ote Bands does :not
exceed 3 509. of the par value o the Donds. It the highest rosponsibie bid falls t
the foregoing requirements, the Agency intends to reject all bids. o moot
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6
A
Six
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PASSED AND ADOPTED on
1986, by the fo!lowing vote.-
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AYES:
14
NOW
ABSENT
A
Chairman, Ranch
Cucamonga
Redevelopment Agency
(S E A L)
Aftest
Secretary, Rancho
Cucamonga
nedevelopmont Agency
t.
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S&Y DOC 40. 1862A CRQ,6l2S186
Standard S Poor's
(See "Rating` herein)- • ,
NEW ISSUE
In the opinion of Bond Counsel. interest on the Bonds is exempt from
federal Income taxes and from State of California personal Income taxes under
existing Income tax laws, regulations, rulings and court decisions. See
"Legal Opinion" and "Pending Federal Tax Legislation'
RANCHO CUr "nNGA REDEVELOPMENT AGENCY
(County of i Bernardino, California)
$32,345,000
Rancho Redevelopment Project
Tax Allocation Bonds, 1986 Series A ,
Dated August 1, 1986 Due: May 1, as shown below
Interest cn the Bonds will be payable on May 1 and November 1 of each
year, commencing May 1, 1387. The Bonds will be Issued as fully registered
bonds in the denomination of SS,000 each or any integral multiple thereof.
Principal of the Bonds will be payable at the corporate agency office of the
Fiscal Agent. Interest on the Bonds will be paid by check or draft of the
Fiscal Agent
The Bonds are special obligations of the Agency and are secured by Pledged
Tax Revenues consisting of a portion of all taxes levied upon all taxable
property within the Project Area. See "Security for the Bonds.
The Bonds are not a debt of the City, the State of California or any of
Its political subdivisions and neither the City, the State nor any of Its
political subdivisions Is liable therefor, nor in any event shall the Bonds be
payable out of any funds or properties other than those of the Agency as sat
forth in the Resolution The Bonds do not ronstitute an Indebtedness within
the meaning of ,ny constitutional or statutory debt limitation or
restriction. Neitrar the members of the Agrncv nor any persons executing the
Bonds ara liable p•irsonally on the Bonds by reason of their Issuance
The Bonds are subject to optional redemption prior to maturity, le whole
or In part, on May 1, 1993, and on rich Interest payment date thereafter See
"Optional Redemption
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S&Y
DOC NO, 1862A CRQ 625/86
MATURITY SCHEWLE
Maturity Date Principal
I Amount
Interest Maturity Date
Principal Interest
_Hay
Rate May I
Amount R at
•
1987 3315.000
1988 325.000,
1995
$525.000
1996
565.000
1989 355.000
1997
605.000
1990 37S.000
1999
655,000
1991 400,000
1999
70S.000
1992 425.000
2000
760,000
1993 455,000
2001
820,000
1994 490.000
2002
890,
.000
$23,670.000 Term Bonds Due May 1,
2016
,
The Bonds are offered
when, as and If Issued. Ubject to the approval of
their legality by Jones
Hall Hill 4 White, A ProfesIdnal
LaQ Corporation,
San Francl•co, California,
Bond Counsel It Is anticipated
that the Bonds
will be available for delivery In definitive form In
Los Angeles, California,
on or about August _, 1986
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CITY STAFF AND AGENCY
Lauren M Wasserman. City Hanager /Executive Cirector
Jack Lam, Community Development Dlrect0r /Deputy Director
D Jim Hart. Administrative Services D1rec or /Treasurer ,
SPECIAL ES
15
S &Y DOC 110 1662A CHO
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6125160 ,
eA°
Bond Counsel
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RANCHO CUtMNCA REDEVELOPMENT AGENCY
•fi
A
San Francisco
#'.
Fiscal Agent
•f d
Bank of America NT 6 SA
i
CITY COUNCIL AND AGENCY BOARD
:
y
Jeffrey King. Mayor & Chairman
4
Richard M Dahl, Mayor Pro Tem /Vice Chairman
:v..
Charles J. Buquet, 11, Mea`ber /CounUlman
i
/b
San Francisco
"
•
306 D. Mikels. Member!Councllman
a
Pamela J Wright. Member /Counclloan
"S
1
i
CITY STAFF AND AGENCY
Lauren M Wasserman. City Hanager /Executive Cirector
Jack Lam, Community Development Dlrect0r /Deputy Director
D Jim Hart. Administrative Services D1rec or /Treasurer ,
SPECIAL ES
Bond Counsel
';.'.
Jones Aail Hill & Hhlte
Professional Corporation
A
San Francisco
Fiscal Agent
'
Bank of America NT 6 SA
^,e
Los Angeles
Fln,.nctng Consultant
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Stone & Youngbe+g
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San Francisco
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5 &Y OOC N0. 1862P, CRQ'6 /25/86 ' '
TABLE OF CONTENTS
Pace• �,- . -
Introduction •s'•
...... 1;
The Bonds . . . . . .... ... ... ..... ... .. ....
Ofsposition of Bond Proceeds a.r
Security for the Bonds .. .. .. ... 6
Estfnated Pledged Tax Revenues and Bond Retirement ... 8
Bondholders' Risks ... is
Certain Legal hitters ..................... . .... 15
The Resolution ...
The Rancho Cucamonga Redevelopment Agency . • ................ 23
The Rancho Redevelopcx!nt Project .. ... 24
Tax Exempt Status ... .. ... 29
Pending Federal Tax Legislation .. .. 29
Legal Opinion .. ... .. .. .. ... ... .
Rating .. . . .... ... .. . ......
Closing Documents . ...... . ..
Miscellaneous .. .. ,.
Agency's Audited Financial Statement
Supplemental Information on the City of Rancho Cucamonga
30
30
30
31
Appendix A
Appendix B
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SW DOC NO. 1862A CRQ 6125186
TO MROH IT MAY CONCH:
s
The purpose of this Official Statement Is to furnish Information regarding
$32,345,000 principal amount of Rancho Redevelopment Project Tax Allocation
Bonds. 1966 Series A. to be issued by the Rancho Cucamonga 'Redevelopment
Agency, a public body duly activated by the C',ty of Rancho Cucamonga.
The material contained in this Officlar Statement was prepared in part by
Stone b Youngberg as financing cc-sultant to and under the direction of the
Ager. 1 All Information contained n thl• Official Statement is gathered from
sour. s believed to be reliable but the accur:ry thereof Is not guaranteed
All of the following sumsaries of tha easolution of the Rancho Cucamonga
Redevelopment Agency and.other documents are made subject to the provisions of.
such documents respectively, and do riot purport to be complete statements of
any or all of such provisions. See documents on f1le with the Agency for
further information In connection therewith The covenants of the Agency are
fully set forth In the Resolution of the Agency This Official Statement does
not constitute a contract with purchasers of the Bonds. Any statements herein
Involving estimates and projections may or may not be realized Any
statements herein Involving matters of opinion or estimates, whether or not so
designated, are to be construed a; provisional rather than factual
The approving legal opinion cf Jones Hail Hitt b Mhite, A Professional Law
Corporation, San Francisco. California, will be furnished to the successful
bidder at the time of delivery of the Bonds, at the expense of the Agency.
The execution and delivery of this Official Statement have been authorized
by the Agency
Lauren M. Hasserman
Executive Director
No dealer, broker, salesman or other person has been authorized by the
Rancho Cucamong. Redevelopment Agency to give any information or to make any
representations other than those contained herein and, If given or made, such
other Information or representation must not be relied upon as having been
authorized by the Agency
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S&Y DOC NO. 1862A CRp 6/25/86
RANCHG CUCAMONGA REDEVELOPMENT AGENCY
(County of San Bernardino, California)
OcFICIAL STATEMENT
RANCi10 CUCAMONGA REOEVE OPMrNT AGENCY,
RANCHO REDEVELOPMENT PIIOJ ;rT
TA,( ALLOCATION BONDS, 1986 SERIES A
INTRODUCTION
The purpose of this Official Statement of the Rancho Cucamonga
Redevelopment Agency Is to set forth Information In connection with the sale
of Its 532,345,000 principal amount of Rancho Cucamu^;: 04development Agency,
Rancho Redevelopment Project Tax Allocaticn Bonds, 1786 Series A (the
"Bonds ") Proceeds from the sale of the Bonds will be used to finance various
redevelopment activities of the Rancho Cucamonga Reievelopment Agency,
Ircluding the construction of public Improvements
The City of Rancho Cucamonga (the "City "), encompassing approximately
34 3 squa -e miles, is located In San Bernardino County, about 40 miles aast of
the City of Los Angeles Incorporated in 1977, the City operates as a general
law city. It has a council- manager form of goverment, with the Council
members elected at large for four -year terms and the Mayor is elected for a
two -year term. The Rancho Cucamonga Redevelopment Agency (the "Agency ") was
established pursuant to the California Community Redevelopment Law, codified
In Part 1 of Division 24 of she California Health and Safety Code (the
"Redevelopment Law ") 7 s Agency was artivated on May 20, 1931, by Ordinance
No 145 of the City Council at which N_e the City Council declared itself to
b4 the governing board of the Agent+
The Redevelopment Law authorizes the financing of redevelopment projects
through the use of tax allocation revenues The Redevelopment Law provides
that the taxable valuatl Gn of the property within a project area on the
assessment roll last equalized prior to the effective date of the ordinance
which adopts the redevelopment plan becomes the base year assessment roll, and
the Increase In taxable valuation In subsequent years over the base year
becomes the Incremental taxable valuations upon which taxes are levied and
allocated to a redevelopment agency All taxes collected thereafter upon the
incremental taxable valuation are allocated to a redevelopment agency and may
be pledged to the payment of debt service on obligations Issued to finance
redevelopment projects See "Security for the Bonds"
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THE BONDS
Authority for Issuance
S&Y DOC MO. 1862A CRQ 6/25186
On 'General cResolut on•)98authorizingncthe dIssuancesoInttseries of ItsO Rancho
Redevelopment Project Tax Allocation Bonds On March 19, 1984, the Agency
adopted Resolution No. RA 84-01 (the '1984 Resol noon•) which provided for the
Issuance o1 its $7,750,000 Rancho Redevelopment Project Tax Allocation Bonds,
1984 Serles A (the "1984 Bonds")
The General P.esolutlon end the 1984 Resolution provide :hat the Agency may
Issue additional tax allocation bonds, such as the Bonds, on A pan ty with the
1984 Bonds, to pay costs of the Redevelopment Project, upon certain terms and.
Conditions, including that Pledged Tax Revenues plus certain other funds
available for debt service equal at least 1 15 times maximum annual debt
service on the 1984 Bonds and any additional bonds (see "Additional Bonds -)
On August 28, 1985, the City of Rancho Cucamonga Issued its City of Rancho
Cucamonga Community Facilities District No. 84 -1 Special Tax Bonds, Series A.
In furtherance of the issuance of those bond:, the City and the Agency entered
Into a Loan and Pledge Agreement, dated May S, 1983, and amended on April 4,
1984, and August 7, 1985 The Loan and Pledge Agreement requires the Agency
to pay the City In each fiscal year the greater of (ai 5500,000, or (b) an
amount. Mich together with the estimated special tax revenues generated by
the Community Facilities Distrl.:t No 84 -1 In such fiscal year, will equal at
least 110% of the debt service due on the Special Tax B`mds In that fiscal
year The Agency's obligations under thi Loan and Pledge Agreement are
secured by Pledged Tax Revenues but are subordinate to the Agency's Pledge
pursuant to the General and 1984 Resolutions Moreover, the Loan and Pledge
Agreement provides that the Agency may incur additional obligations. Including
obligations pursuant to the Seneral Resolution, secured by Pledged Tax
Revenues which are senior to the lien or the Lear and Pledge Agreement, if
Pledged Tax Revenues, after payment of all such senior obligations, are
estimated to be sufficient to discharge the Agency's annual obligation under
the Lwan and Pledge Agreement The Agency estimates its Obligation under the
Loan and Pledge Agreement to be not more than $500,000 for fiscal year 1985 -87
and to be no: more than $860,000 for each fiscal year thereafter
author'zinguthe Issuance ofhtheAbo dt (the *Resolution*) upplThe nResolutionuwill
pledge such Pledged Tax Revenues to the payment of into rest on and principal
of the Bonds on a parity with the 1934 Bonds and, hence, senior to the
Agency s obligation under the Loan and Pledge Agreement associated with the
Com un'ty Facilities District No 84 -1 Special Tax Bonds
The Bonds are being Issued In accordance with the Redevelopment Law, other
applicable laws and the Constitution of the State of California.
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S&Y DOC N0, 1862A CRQ 6;25186
Description
The Bonds In twa aggregate principal amount 0 $32,345,000 will be Issued
as fully registered bonds in the denomination of %5,000 each or any Integral
multiple thereof. Tt Agency may charge a sum not exceeding its' reasonable
cost for each new Dona Issued upon any exchange and the Fiscal Agent shall
require the payment by the Bondholder requesting such change of any tax or
other governmuntal charge. The Fiscal Agent shall maintali, books at Its
corporate agency office foT the registration, exchange and transfer of Bonds
The Bonds ere dated August 1, )986. Interest on the Bonds Is payable
semldnnually on May I and November I of each year coumncing May 1, 1987, by
check malted to the registered owners is of 15 days prier to each Interest
payment date Principal of'the Bonds Is payable annually on Nay 1 of_ each
year in lawful money of the United States of America at the corporate agency
office of the Fiscal Agent, Bank of America NT 6 SA, Los Angeles, Cattfornla.'
The Bonds shall matare on May 1 of the years and In the principal amounts
set forth below*
Maturity Da.e
Principal
Maturity Date
Principal
May 1
Amount
May 1
Amount
1987
$315,004
1995
$525,000
1988
335,000)
1996
565,000
1989
355,000
1997
605,000
1990
375,000
1998
655,000
1991
400,000
1999
705,000
1992
425,000
2000
760,000
1993
455,000
2034
820,(00
1994
490,000
2002
890.000
$23,670,000 Term Bands Due Ii y 1, 2016
Oottonal Redemption
e.
Bonds maturing on or before May 1, 1993, are not subject to tail end
redemption prior to their stated maturities Bonds maturing on or after May
1, 1994, are subject, at the option of the Agency, to call and redemftion. ••
prlsr to their stated maturities on any interesi payment date comencing May'
1. .993, as a whole or In part, In Inverse order of maturity and by lot vlthin
any one maturity, upon payment, from any source of funds available, of the
principal amount and accrued Interest, Ous the Totlowing premium :expressed `
as a percentage of the principal amount/ If redeemed on an Interest payment
date In the following years .y
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Calei.dar Year
1993
1994
1995
1996
1997
1998 to maturity
S&Y DOC NO. 1862A CRQ 6/25/86
Premium
2 -1 /2Z
2
1 -1/2
1
1/2
0
Additionally, the Agency may buy Bonds on the open market'at a price.
Including brokerage fees, not to exceed par plus the applicable premium.
Sinking Account Redemption
Bonds maturin5 May 1, 2016 (the 41'em Bonds') are subject to mandatory
redemption In part from s!nl;ing account Installments on May 1, 2001, and on
each May 1 thereafter up to and Including May 1, 2015, at a redemption price
equal to IM of the principal amount thereof plus accrued Interest, If any,
to the redemptloi date without premium. The following sinking account
Installments are calculated to be sufficient to redeem the following principal
amount of Term Bonds:
fear Ending
Principal
Year Ending
Principal
May I
Amount
May 1
Awunt
2003
5 960,000
2010
$1,670,000
2004
1,040,000
2011
1,810,000
2005
1,125,000
2012
1.960,000
2006
1,220,000
2013
2,120,000
2007
1,320,000
2014
2,295,000
2008
1,415,000
2015
2,485,000
2009
1,545,000
2016 (maturity)
2,695,000
Notice of Redemption
°
The Fiscal Agent will mall the notice of redemption at least 30 days but
not more than 60 days prior to the redemption date to owners of all Bonds to
be redeemed. The actual receipt by any 6ondholdar of notice of such
redemption shall not be a condit'on precedent to redemption and failure to
receive such notice shall not affect the validity of tho proceedings for the
r0ecptlon of such Bonds or the cessation of Interest on the redemption date.
a
Notice of the redemption of Bonds shall be given by the Fiscal Agent on behalf-
of the Agency at the expense of the Agency A certificate by the Fiscai Agent
p'
that notice of redemption has been given as herein provided shall be
'
conclusive against all parties and no Bondholder whose Fond is called for
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redemption may object thereto or object to the cessation of interest on the,
redemption date
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SV DOC NO. 1862A CRO Nil
Redemption Fund
Prior to the notice of redemption as required above. the Fiscal Agent
shall establish, maintain and hold In trust a separate fund entitled "Rancho
Redevelopment Project Redemption Fund" (the 'Redemption Fund") to which shall
be set aside moneys for the purpose and sufficient to redeem, at the premiums.
If any, the Bonds designated In th4 notice,of redemptirA
DISPOSITION OF BOND PROCEEDS
The Fiscal Agent, on behalf of the Agency, will receive the orcceeds from
the sale of the Bonds. upon the delivery of the Bonds to the purchasers
thereof. and Wit dispose of such proceeds as follows,
I Deposit In the Interest Account the accrued interest paid by the
purchaser-, of the Bonds.
2 Deposit to the Reserve Account an amount equal to tt,e Reserve
Requirema.it
3 say the costs of issu.ng the Bonds
4 lemit the balance to the Agency for placement In the Redevelopment
Fund
Estimated Disposition of bond Proceeds
Redevelopment Fund . . .... . .
Reserve Account (1)
Provision for Bond Discount (2)
Costs of Issuance (3)
principal Amount of the Bonds
(1) initially funded In an amount equal to the Reserve Requirement
(2) Estimated at 3.
I r
(3) Includes financing and legal fees, printing and other costs
Moneys In the Redevelopment Fund shall be expended solely to finance a
portion of the costs of the Redevelopoert Project and other related costs a•.
permitted by the Redevelopment Law See 'The Rlancho Redevelopment Project"
nCQ
for a description of thr) publ4C Improvements the Agency expects to fin a I
with the proceeds of the Bonds
%r�g
SLY DOC NO 1862A CRO 6/25186
SECURITY FOR THE BONDS
As provided In the Redevelopment Plan, and pursuant to Article 6 of
Chapter 6 of the Redevelopment Law and Section 16 of Article )IVI of the
Constitution of the State of California, taxes levied upon taxable property to
• the Project Area each year by or for the benefit of the Statc of California,
0
an city, county, city and county or other public corporation for fiscal years
beginning after the effective date of the Redeve)opment Plan, will be divided
as follows _
1 The ,portion equal to the amount of those! taxes which would have
been produced by the current tix rate, applied to the taxable valuation of
such property In the Project Area as last equalized prior to the
establistiment of the redevelopment project, or base roll, shall be, vnen
collec'ed, paid Into tho funds of those respective taxlag agencies as
taxes ty or for tax!ng agencies, and
2 That portion of levied taxes each year In excess of such amount.
Including all payments and reimbursements. If any, to the Agency
specifically attributadl2 to ad valorem taxes lost v reason of tax
Ixemptidns and tar rate limitations, will be allocate' to, and when
collected, wtl be paid trto th Special fund of the Agency to pay :he
principal of and Interest on ,fans, exrey advanced to, or indebtedness
Incurred br the Agency to finance redevelopment pro3ect,
Tax Revenues, arising as above, except as provided below, are pledged In
their entlrety to the payment of principal of, and Interest on and redemption
premium, If any on the Bonds and are referred to herein and In the Resolution
as 'Pledged Tax Revenues".
Pledged Tax Re.:re•s do not include that portion of Tax Revenues derived
from the Project Area W Ln are requlreo by Section 33334 2 of the
Redevelopment Law to be set asps by the Agency Section 33334 2 of the
Redevelopment Law requires that for every redevelopment plan adopted after
January 1, 1977, not less than twenty percent (20X) of such Tax Revenues be
set aside In a separate low and •moderate income housing fund and be used for
the purpose of increasing and Improving the community's supply of low and
moderat- Income housing, unless ono of the follo6irg findings is made
1 That no need exists in the cdmmwlity, the provision of which would
benefit the Project Area, to improve or Increase the supply of low and
moderate Income housing, or
2 That some stated percentage less than twenty ,arcent of the taxes
which are allocated to the agency is sufficient to meet such housing needs; or
3 That a substantial effort to meet low and moderate Income needs In
the community Is being made and that this effort, Including the obligation of
funds currently available for the benefit of the community from state, local
and federal sources for low and moderate Income housing alone* or in
combination with Tax Revenues Is equivalent In Impact to the funds otherwise
required to be set aside
.y
-6-
-•a=_, S&Y DOC NO 186ZA CRQ 6/25186
�._. Pledged Tax Revenues, also do not include that portion of Tax Revenues
derived from the Project Area which are required to be used by the Agency in
accordance with the provisions of certain agreements entered Into by the
Agency The Agency has entered Into cooperativ5 agreements with %taxing
agenct0s affected by the Redevelopment Protect Such agreements have been
ontered Into with (1) the Chino Basin Municipal Water District. (11) the
County of San Bernardino on behalf of the County Fro, Library and •',e
Stn Bernardino County Flood Control District, (lef) the Cucamonga County Hater
Dlsrrict and (Iv) the Foothill Fire Protection District. Under the terms of
;s these agreements, the Agency his agreed that certain Tax Revenues attributable
to those areas within the Project Area which would have otherwise been levied
upon taxable property in the Project Area by or for the benefit of these
affected taxing en.ities after the effective date of Ordinance No 186, and
which are allocated to the Agency pursuant to Section 33670(b), sh;11 be,
pledged by the Agency to•• make certain cash payments or in lieu of
.. contributions to each affected taxing agency. Such payments are to be made
froo Tax Revenues allocated to the Agency. To tNo e:t:nt :hot iv:n p•J,me „L,
are required to we made out of Tax Revenues, the Agency his pledged to set
aside a certain portion of the lax revenues derived from ',I,e Project Area to
mee• Its comaltsents to each affu ted axing agency. See table I
Pledyyu Revenues do not Inc)u,le Interest Income on the various funds
and accounts created by the Resolitlon Any such Investment Income is
available to the Agenc; to meet debt se•v %e payments on the Bonds )ut Is not
specifically pledged therefor
In addition to providing for the pass- through to the County Free Library
and the San Bernardinc County Flood Control District, the agreement between
the Agency and the County of San Bernardino also provides that Tax Revenues
which would have been allocated to the County had not the Redevelopment Plan
been adopted will be fully allocated to tte Agency until fiscal yeas
1998 -1999 The agreement, however, further provides that the Agency must use
such Tax Revenues for the development of certain regional facilities, as
agreed to between the County and the Agency The Agency anticipates
satisfying this regional facilities requirement with certain proceeds of the
1984 Bonds and Its pledge under the Loan and Pledge Agreement with the City
(see "The Bonds - Authority for Issuance') In addition, the alreement
provides that the Agency's right to receive such Tax Revenues is li:-it:d in
total to $50,000,000 prior to fiscal year 1938 -1999 Regardless of the amow,e
of Tax revenues received by the Agency, the Agency'! right to receive these
Tax Revenues will be reduced starting In fiscal ysar 1998 -1999 pursuant to a
formula bas,9 upon prpulation In the Project Area as set forth In the
agreement
.i
The Agency has no power to levy and c)'lect property taxes, and any
property tax limitation, legislative measure, voter initiative or provisions
of additional sources of Income to taxing agencies having the effect of
reducing the prope ty tax rate, could reduce the amount of Tax Revenues that
would otherwise be available to pay the principal of, and interest on, the •r,
goods Likewise, broadened property tax exemptions could have a similar
effect See "Bondholders' Risks”
-7-
SLv DOC 110 186ZA CRO 6/25186
The Bonds are not a debt of the City of Rancho Cu^amdnga, the State of
California or any .f Its political subdl,idtons and neither the city, State,
nor any of its political subolvlslons is liable therefor The Bonds Co not ,
constitute an Indebtedness within the meaning of any constitutional or
Ltatutory debt limit or restriction
Resso, ve ASS ant
To :ecore further the payaent of princlpa: of and Interest on the Bonds
the Agency Is equireo upon delivery of the Bonds to deposit In the Reserve
Account an amount equal to the Reserve Requirement The "Reserve Requlromunt•
means an amount equal to the maxlmum annual debt service on the Bonds and the
IM Bonds The maxlou& annual debt service Is to be calculated en a Bddd
year basis where the Bond Year 14 the year ending to may 1 If at any time
for any reason the amount In the Reserve Account Is less than an amount equal
to the Reserve Requirement, the Reserve Account will be restored to the
Reserve Requirement by transfers to the Reserve Account from the Special Fund
with the 'Irst available moneys In the Special rune
ESTIMATED PLEDUD TAX REVENVI, AND POND RETIREMENT
Property Tax Rate LlmltahOns - Article XIII 4
Article rIiIA to the Ca Dlforrla :onstitution limits the amount of any ad
valorem tax on real property to I iorcent of the full cash value, or 4 percent
Of the assesses value, except That the edditlonal taxes may be levied to pay
debt service or general obligation bonds and rartain other Indebtedness
approved by the v ,)ters prior to August 1 1972. Article XITIA defines full
cash valie to mean 'the county asaessbr's valuatlon of real property as shorn
on the '975/76 tax bill under 'full cash va'ue', or thereafter, the appraised
value of real property when purchased, newly constructed, or a change In
ownership has occurred after the 1975 assessment period " This full cash
value may be increased at a rate not to exceed 2 percent per year to acdount
for Inflation On September 22, 1478 the California Supreme Court upheld the
amendment over challenoes on so,-era) state and federal constitutional erounds
$station implemen >ing the amendmeat for future determination in
proper cases
Property Tax Collection Procures
In California property which Is Subject to ad valo,em taxes Is classifled
as 'secured" or 'unsecured" The secured class ficatlon Includes property on
which any property tax levied by a county becomes a lien on that property A
tax levied on unsecured prop:,ty does not become a lien against the taxed
unsecured property, but may become t lien on ccrtaln other property owned by
the taxpayer Ejery tax which becomes a lien on secured property has priority
ever all other Ilene arising pursuant to State law, on the secured property,
regardless of the time of the creation of the other Yens
-8- 1 'a
' S&Y DOC NO. 1862A CRQ 6125186 4
Secured and unsecured
property are entered on separate parts of. the
assessment roll maintained by the county assessor. The method of—collecting ,
delinquent taxes is substantially different for the two classifications of •r
property The taxing authority has four ways of colloc•tng unsecured, personal
property Lazes <a) a civil action against the caxpayer, (2) flung a
certificate to the office of the county clerk specifylne certain facts to
order to obtain a judgment ltcn on certain property of the taxpayer, (3)
filing a certificate of delinquency for record In the county recorder's
y office. in order to obtain a lien on certain property of the taxpayer; and (4)
seizure and sale of personal property, Improvecants or possessory Interests
belonging or assessed to the assessee The exclusive means of enforcing the �.
' payment of delinquent taxes 1.1 respect of property on the secured roll Is the
sale of the property securing the taxes to the State for the amount of taxes
which are delinquent
Commencing In 1982, a 10% penalty Is added to delinquent taxes which have
oxen levied In respect of property on the secured roll In addition, property
on the secured roll with respect to which taxes are delinquent Is sold to the
State on or about June 30 of tee fiscal year. Such property may thereafter be
eaeemed by payment of the delinquent taxes and a delinquency penalty, plus a
redemption penalty of 1 112% per month to the time of redemption If taxes
are unpaid for a nerlod of five ,years or Mora. the property 1s deeded to the
State and then Is subject to sale by the county tax collector A 10% penalty
'so attoches to delinquent taxes In respect of property on the unsecu ;so
rull and further, an additional penalty of 1 112% per month accrues- with
-espec• -,o such taxes beginning the first day of the third aonth following the
delinquency date
the va .,aticn of property 1: determined as of Ilovember t each year and
instd Iment: 3f taxes levied upon secured property become delinquent on the
folldr'ng Oe -enter 10 and April 10. Taxes on unsecured property are due
Novecter I and oecome delinquent August 31, and sucl. taxes are levied at the
prior year s secured tax rate
tegisla -cin enacted in 1983. SB 813 (Statutes of 1983. Chapter 498)
provides f,, the supplemental assessment and taxation of property as of the
occurre-,,e of a change of ownership or completion of new construction.
ereviou y statutes enabled the assessment of su;h changes only' as of the
next november I tax lien date following the change and thus delayed the
realization of increased property taxes from the new assessments for up to a
year
Collect on or taxes based on supplemental assessments will occur
tnroughout he yea, taxes due wil; be pro rated according to the amount of
tt" remaining In the tax year, with the exception of tax bills dated
Noveeber th•ougn Mai 31 which will be calculated on the basis of the
.emainder of he cu•rar• fiscal year and the full twelve months of the next
fiscal year
II11 i
f R
r
S&Y DOC NO. 1862A CRO 6/25/86
"j
For supplemental tax bills mailed during the months of March through
7"
September, the first Installment of taxes becomes delinquent on December 11 of
r '
"
the same year, the second Installment becomes delinquent after the last day of
,
. ;
the month following the month In which the blil was mailed and the second
1
Installment becomes delinquent four months later.
t'
Psslness Inve.)tory and Suoolemental Revenues
Prior to fiscal year 1980/81, tax revenues generated by the value of
business Inventories were based on the actual assessed value of Inventories
located in a jurisdiction The revenues generated, which were provided
through taxpayer payrents and state subventions (SOX each), were distributed
"
to local taxing entities and to redevelopment agencies
,
'
In 1979, the Legs lature enacted All 66 (Statutes of )979, gsapter 1150),
eliminating the assessment and taxation of business Inventory property and
providing for replacement revenue. Is, part, for local agencies, except
redevelopment agencies In 1980, the Legislature enacted All 1994 (Statutes of
1760 Chapter 610), providing replacement revenue, in part, for the loss of
business inventory revenacs for redevelopment agencies
The Legislature's enactment of S8 794 (Statutes of 1994. Chapter 447)
epealed the provision for State replacement revenue provided In AS 66 and AS
1994 for local agencies This measure relmbulses redevelopment agencies for
the loss of bustness inventory replacement revenues through State paymsnts
(State Special Subventions). The State Special Subventions are in amounts
equal to th- difference between the previously received business Inventory
replace�ent revenue and revenue derived by virtue of the supplemental
assess s permitted by SB 813 discussed above
'he clear Intention of SB 794 is to provide local agencies with a secure
and predictable revenue source. To Insure predictability, S8 1300 (statutes
of 19.94. Chapter 1325) was enacted to Implement the payment of State Special
Subventions created pursuant to SB 794 Pursuant to SS 1300, the State
Specla, Subventtons will be paid three times each fiscal year lanuary 31.
May 28 and June 30.
Since the Project Area was created after passage of All 66, there are
i
Slate Special Subventions available to the Agency Accordingly, debt coverage
calculations In this dorument do not Include Pledged Tax Revenues attributable
to State Special Subventions
lax Revenues
The Agency's projections of Pledged Tax Revenues are set forth In
Table I See 'Bondholders Risks'
,..__._.'a cia
�
�
q
q
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�,' ., ..7 .'iy�: sf•5"�;y�y. >, S�� «.' ..r, � . t ' a :v;..- . ,'G✓ . �.'�� �f. �T.-�•}i•yn�:WSI�C.1;
S&Y Me R0. 1862A CRQ 6125/86
Bond Retirement and Estimated Debt Service Coverage ;• f
Table 2 sets forth' the estimated debt service for the Bonds. Table 3 setsp
forth estimated debt• service coverage for the Bonds together with the 1984 " +
Bonds Estimated revenues are based on the fallowing assumptions• ray
1 The Agency's projections Hof Pledged Tax Revenues as set forth In
Table I are rea]Ized through fiscal year 1990191
2 Pledged Tax Revenues for 1991 -2016 increase, Wa rate of 2% per annum.
The estimated debt service is based on an average Interest rate on the
Bonds of approximately _Z ,i
.1
.•�< A
s�.:ii]�' S:' �3h `Y'`:�'i`a'?`M<±7,'7d'a�`r:Y�, .: .i:. „i-nc •. �` `;• ...y
AMi
s
'1 86ZA
CRQ
S&Y DOC N 0
1, .-Table
REDEVELOPMENT
2
AGEhCY
WNcpo asrAk40A
Estimated Debi
Service Schedule
(in
000's)
Year ',,P0
6cipal
Interest
1986
Total 1986
Ending
Eiji!
1986
serie
—rl*S
Series
Debt Servic?,
$ 315
$1.948
$2,263
1987
1988
33S
2,580
2 '915 91
2 5
1989
355
2.560
2,518
2.913
•
1990
375
400
2 514
2.914
194I
425t
2,487
2 912
1992
1993
455
2.457
2.912
2.914
14
1994
490
2.424
2.38F
2.913
•1995
525
565
2.343
2 913
1996
60S
2- 305
2:910
1997
65S
2.914
1998
705
2,208
2,913
1999
760
2,152
2,912
2000
820
2,061
21911
2001
890
2,025
2,915
2002
960
1,953
2,913
2003
2004
1.040
1 IJ74
2.9 14 1
2,913
2005 ,
1.125
1'788
1
1,695
2,915'
2006"
2007
1.220
1,320
1,594
2,914
z 910
,'-1
2008
1.425
1.485
1*368
2,913
2009
1.545
1.670
1,240
2,910
2010
2011
I BID
*
1.103
2,913
2,913
2012
1.960
953
792
2 9,42
•
2013
2.120
617
2:912
1014
295
-1 2.295 2 48S
:
427
2,912
205
2016
-2,695,
�-
22Z
2.917
WV
I
r.
i'
t,
,i-
.
-14-
S&Y DOC
NO. 1862A
CRQ 6125186
Table 3
RANCHO WCAMONGA REDEVELOPMENT AGENCY
Estimated Debt
Service Coverage
(in
0001s)
:S
Year
Debt
Ending Total 1984
Total 1986
Total
Service•
May 1 Debt
Service Debt Service
Revenue Surplus(1)
Coverage'+.
iY
1987 S
806
$2,263
$4,862
St.793
1.58
i988
806
2.915
6,780
3,059
1.82
1989
805
2,915
7,203
3.483
1.94
1990
804
2,913
7,291
3,574
1.96
1991
802
2.914
7,381
3,665
1.99
1992
805
2.912
7,472
3.755
2.01
-
1993
802
2,912
7,565
3.851
2.04
1994
803
2,914
7,660
3,943
2.06
1995
804
2.913
7,157
4,040
2.09
1996
803
2,913
7,856
4,140
2.11
.f
1997
807
2,910
7,956
4,239
2 14
1998
809
2,914
7,497
3,774
2.01
1999
809
2,913
7,038
3,316
1.89
2000
813
2,912
6,582
2,587
1.77
2001
815
2,911
6,128
2 402
1.-64
2002
815
2,915
5.678
1,948
1 52
2003
817
2,913
5,792
2,062
1.55
2004
823
2,914
5.907
2,170
1.58
2005
825
2,913
6,025
2.287
1 61
2005
830
2,915
6.145
2,400
1.64
2007
836
2,914
6,268
2.r.28
1.67
2008
838
2,910
6.394
2,646
1.71
2009
846
2.913
6,522
7.763
1.74
2010
849
2.910
6,652
2,893
1 77
rti
2011
857
2.913
6,785
3,015
1 80�
2012
865
x,913
6,921
3,143
1.83
2013
876
2.912
7,059
3,271
1.86
2014
884
2,912
7,200
3.404
1.90
i
2015
-
2,912
7,344
4,432
2 52
2016
-
2,917
7,491
4,574
2.57
�4µ
(1) Available
to meet
the Agency's
obligation under
the City
of Rancho
Cucamonga
Community Facilities
District No 84 -1
Special
Tax Bonds,
Series A
See *The Bonds - Authority
for Issuance•
e,
y
• �t" *Ft
-14-
S&Y DOC N0, 1862A CRQ /25/86
BONDHOLDERS' RISKS
Pledged Tax Revenues allocated to the Agency are determined In part by the
amount of Incremental taxable value In the Project Area and the rate at which
property in the Project Area is taxed. The reduction, of taxable values of
property In the Project Area caused by economic factors beyond the Agency's
ontrol or the complete or partial destruction of such property could result
In a reduction In Pledged Tax Revenues The Agency has made certain
assumptions with regard to the tax rates which will be applicable In the
Project Area While the Agency believes these assumptfons to be reasonable, a
reduction In Project Area tax rates greater than the reductions assumed herein
could cause a reduction In Pledged Tax Revenues Such reduction of Pledged
Tax Revenues could have an adverse effect on the Agency's cbtlity to make
timely payments of princjpal of and Interest oh the Bonds . Likewise; "
` ,x
substantial delinquencies In the payment of taxes to the County could also
•:=
have an adverse effect on the Agency's ability to make timely debt service
payments on the Bonds
In order to estimate the total revenues available to pay debt service on
"
the Bonds, the Agency has made certain assumptions with regard to the amount
of funds and the Interest rate at which those funds are Invested. The Agency
believes these assumptions to be reasonable, but to the extent the amount of
r
funds, or the Interest rate at which they are Invested, are less than the
Agency's assumptions, the total revenues available to pay debt service on the
Bonds may be less thrn those projected herein See "Estimated Pledged Tax
Revenues and Bond Retirement"
�.
CERTAIN LEGAL MATTERS
Appropriation Limitation - Article XIII 8
At the statewide special election on November 6, 1979, the voters approved
an Initiative entitled "Limitation on Government Appropriations" which added
Article XIII B to the California Constitution Under Article XIII B. state
and local government entitles have an annual "appropriations limit" which
limits the ability to spend certain moneys which are called "appropriations
subject to lfmitatlon" t-onsisting of tax revenues and certain state
subventions together called "proceeds of taxes" and certain other furds7 In an
amount higher than the "appropriations limit" Article XIII 8 does not affect
the appropriation of moneys which are excluded from the definition of
"appropriations limit" Including debt service on Indebtedness existing or
authorized as of September i, 1979, or bonded Indebtedness subsequently
approved by the voters
In general terms, the "appropriations limit- is to be oasso on certain
fiscal year 1978/79 expenditures, and is to be adjusted Inmlally to ;eFlect
changes in the consumer price Index, population, and services provided by
these entities Among other provisions of Article XIII 8 If these entities'
revenues In any year exceed the amounts permitted to be spent, the excess "
would have to be returned by revising tax rates or fee schedules over -the'-.' t__�
subsequent two years To the extent of any such revision In tax rates. Tax
a
-15-
s
.r
iy a. "10
SLY DOC NO. 1862A CRQ 6/25/86
., s
4'
Revenues may be affected since tax allocations to the Agency are a product of
"•h
the combination of tax rates levied by certain taxing agencies �having
rY.
jurlsdlction within the Project Area.
`
Statutes of 1990. Chapter 1342 (Senate 8111 1972) enacted by the
2'
California Legislature and effective as an urgency measure on September 30,
+"
1980 added Section 33678 to the Law Section 33678 provides that the
P
allocation and payment of taxes to the Agency for the purpose of paying
+
-;
principal of, or Interest on, loans, advances `or Indebtedness Incurred for
�
redevelopment activities as defined In the statute shall not be deemed the
receipt by the Agency of proceeds of taxes levied by or on behalf of the
'N
Agency vlthin the meaning or for the purposes of Article XIII 8 of the
•
California Constitution, nor shall such portion of taxes be deemed receipt of
-
proceeds of taxes by, or an approprlation subject to the 'limitation of, any
♦
other public body within the meaning or for the purposes of Article 4(Ir1 8 of
i
the ..lifornia Constitution or any statutory provision enacted In
Implementation of Article XIII 8.
The Califori,la Court of appeals, fourth Appellate District In (Brown v.
�•
Comunity Redeve)o ment A encv of the Cl t of Santa Ana) and the Cal f- Tornta
Court of Appeals, Second Appel ate Of strlct In (Bet Community Redevelopment
Agency v. IloolsevI have determined that the appropriation of tax Increment
revenues by a redevelopment agency Is not subject to the limitations of
E•
Article XIII R Tie Callfornta Supreme Court dented a petition for hearing In
the Brown case
3
'1
i
THE RESOLUTION
Funds and Accounts
'
The Resolution, together with toe General Resolution and the 1984
Resolution, establishes "he following funds
.
I The Rancho Redevelopment Project
"Redevelopment Fund*). The moneys
sin theRedevel Redevelopment shall be used
-
for the purpose of the acquisition, construction and financing of the
'
Redevelopment Project, f. —Ilea tax payments, and ether costa of the
Redevelopment Project and the expenses of Issuing the Bonds
'
2 The Rancho Redevelopment Special Fund (the •Special fund•)
-,
Including the following special accounts
`
(a) The Debt Service Account
(b) The Reserve Account;
3 The Rancho Redevelopment Redemption Fund (the "Redemption
Fund*) Honeys shall be set in the Redemption
w : ;
's
d
aside FunC for the purpose
1
k,
of and sufficient to redeem the Bonds designated for redemption in s
accordance with the Resolution,_ -3�
S&Y OX ND. 186ZA CRQ 6125/86
The Redevelopment Fund will be held by the Agency The Special Fund and
the Redemption Fund are to be )e it by the Fiscal Agent for the Bonds
Appllcatlon of Tax Revenues
The Agency shall pay of cause to be paid to the Fiscal Agent all of the
Pledged Tax Revenues, and the Agency will, so far as permitted by law,
authorize and direct the payment of such Pledged Tax Revenues by the
respective taxing entitle-, directly to the Fiscal Agent All ,Pledged To-
Revenues at any time paid to the Fiscal Agent shall be deposited by the riscal
Agent Into the Special Fund, shall be held by the Fiscal Agent In trust for
the benefit of the hotdrrs of the Bonds and shall be disbursed, all%;tated,
transferred and applied solely for the uses and purposes designated In the
Resolution As long as any of the Bonds are outstanding, the Agency shall not
have any beneficial right o. Interest In the Pludged Tax Revmwes, except as
otherwise provided In the Resolution Notwithstanding the foregoing, there
shall not be deposited -filth the Fiscal Agent Pledged Tax Revenues In an amint
In excess of an amount which, together with all funds then on deposit with the
Fiscal Agent In the Special Fund, shall be sufficlent to discharge the
Indebtedness created by the Bonds, and any parity bonds subsequently Issued
pursuant to the Resolition.
Hithout limiting the generality of the foregoin; are ror the purpose of
assuring that the payments referred to above Oil be made as scheduled,
Pledged Tax Revenue, shall be deposited and accumulated In the Special Funo
and shall be used in the following priority, pvcIvldeo, however• that to the
extent that depostts 'ave been made in any of the accounts referred to below
fton the proceeds of the sale of the Bonds ar otherwise, the deposits below
need not be made
I Debt Service Account At lease one (1) day prior to November 1 and
May 1 of earn year the Bonds are outstanding, •ommencing at teost one day
prior to Maf 1, 1987, to deposit In the Debt Service Account an amount
sufficient to pay the agyreg+te Interest due on the Bonds on the next
succeeding interest payment date, and at least one (1) day prior to May I
of each year the Bonds aro outstanding commencing at least one (1) day
•` prior to May 1, 1987, t, deposit in the Debt Service Account an amount
sufficient to pay the principal. Including scheduled sinking fund
Instaliments coming duo on the next succeeding May 1
2 Reserve Account After deposits have been made pursuant to
paragrapi 1 above, deposits shall next be Lade to the Reserve Account, if
necessary. In order to cause the amount on deposit therein to equal the
Reserve requirement Moneys In the Reserve Account shall be transferred
i to the Debt Service Account to pay Interest on and principal of 'Bonds as
�. such Interest or principal becomes due to the extent Pledged Tax Revenues
are insufficient therefor In the event of a transfer from the Reserve
1g Account to pay debt service on any Bonds, an amount equal to an amount
{Sppp,,:• necessary to restore the Reserve Account to the Reserve Requirement shall'
-18-
1
L4<
.•'
SSY DOC 119. 1862A CRQ 6125186
be transferred to the Reserve Accajnt from the first availeble moneys In
the Specisl Fund. Any portion of the Reserve Account which Is in excess
'
of the Reserve Requirement shall be transferred periodically to the Debt
_
Service Account
3 Surplus It is the Intent of the Resolution that the deposits
e
provided for in paragraph I above to the Debt Service Account shall be
made a: scheduled, end that the deposits provided for In paragraph 2 above
to the Reserve Account shall be made as necessary to maintain a balance
therein equal to the Reserve Requirement If such deposits are made, then
at any time after May 1 in any Fiscal Year
N,
t
(1) after the delivery to the Fiscal Agent of a certificate signed by
an officer of the Agency showing that the Pledged Tax Revenues to be
received In the following Fiscal Year based upon the mst recently
equalized valuation of taxable property In the Project Area available
�•
from the appropriate officer of the County, will be equal to at least
1 10 times the debt service on all Bonds which will be outstanding In
such following Fiscal Year, and
:11) after the Fiscal Agent shall have received Pledged Tax Revenues
j
In an amount sufficient together with funds already on deposit to the
Special Fund (not Including amounts In the <eserve Account) to pay
the Interest principal and scheduled sinking fund installments coming
due on the next interest payrent date with respect to all Bonds, then
outstanding, and to restore the Reserve Account to an amount equal to
c:e Reserve Requirement, If required,
addit o ^al Tax Revenues In such Fiscal Year and other amounts on deposit
in the ,pedal Fund (exclusive of the Reserve Account) shall be declared
'Surplus• and may be used and applied by the Agency for any lawful
purpose "Fiscal Year• means the Agency's Fiscal Year which currently
ends on June 50 a each year
Redemption Fund Fund - Moneys deposited in the Redemption Account In accordance
with the Resolution shall be used solely for the redemption or purchase of
'•
Bonds Under no conditions shall Bonds be purcha-ed or redeemed in an Mount
above the principal amount plus the applicable redemption premium
Investment of Funds and Accounts
`
All moneys held by the Fiscal Agent or the Treasurer in any of the Fends
r.
and Accounts established pursuant to the ResolutSon shall be deposited or
invetted as permitted by taw The moneys shall ce Invested only In;
obligations or acct--.its authorized to accept deposits of public funds Such
r,
Investments or deposits must nature or be withdrawable, as the case may be, to
'_e£
t
coincide as nearly as practicable with the time at which such moneys will be
c
required pursuant to the Resolution. Moneys in the Reserve Account of the
Special Fund shall be invested only in obligations which will by their teres ;
;
mature in not more than five :5) years
-18-
1
L4<
c'
SLY DOC NO. 1862A CRO 6/25/86
lat- purchased Investment
alet either Such funds
or heccontsthereln shall be deemed at l times to be a Partofsuch
fund or account and the Interest accruing thereon and any gain realized from
such Investment shall be credited to sucn fund or account and any loss
resulting from any such authorized Investment shall .e charged to such fu.^d or
account For the purpose of determining at any given time the balance in any
such fund or account any such investment ronstituting a part of such fund or
account shall be valued at the then estimated or appraised market value of
such Investment
Additional Bonds
If at any time the Agency determines It needs to do so, the Agency may
provide for the Issuance, of and loll, Parity Bonds In such pr'ncipal amounts
as It estimates will be needed for such purposes The issuance and sale of
any Parity Bonds shall be subject to the following conditions precedent:
(a) The Agency shall be In compliance with all covenants in the General
Resolutinn and the Resolution,.
(b) The Parity Bonds shalt be on such terns and conditions as may be sst
fo-tn In a supplemental resolution, which shall provide for (I) bonds
substantially in accordance with the General Resolution, the 1984
Resolution and the Fecolution, (11) be bonds maturing In such a=unts
and at such times as to provide level annual debt service, (sii), such i
Parity Bonds shall not have a final maturity prior to the final
ma -Ity of the Bonds, civ) the deposit of a portion of the Parity
Bond proceeds Into the Reserve Account in an amount sufficient
t —ether with the balance of the Reserve Account, to equal Maximum
Annuu' Debt Service on all bonds Including the Bonds, the 1984 Bords
and Pi .•y Bonds.
(c) Pledged ax Revenues received by the Agency for the current Fiscal
Yaar d r ng which the calculation Is made, or to be received by thrt
Agency r' the Fiscal Year following the date on which calculatlon Is
made. . .sed upon the most recent assessed valuation of taxable
property in the Project Area, plus other revenues and Investment
Incrme of the Agency available for debt service, exclusive of any
non-recurring revenues, are at least equal to 1 1_ times the Mdximsm
Annual Debt Service on all Bonds, 1984 Bonds, Parity Bonds and any
loans, advances of indebtedness payable from Pledged Tax Revenues
pursuant to Section 3367C of the Law, watch will be outstanding
following the Issuance of such Parity Bonds, and
(d) The Issuance of such Parity Bonds shall have been recommended by an
opinion of an Ir- depeldent Financial Consultant.
The Agency may also Issue refunding bends for the purpose of paying or .'
retiring outstanding Bords subject to applicable redemption provisions.
39 _ ',e a.2 ^eal':+•a,`k
S&Y DOC NO. 1862A CRQ 5/25/86
Additlona) Covenants
As long as the Bonds are outstanding and unpaid, the Agency shall (through
Its proper members, officers, agents or employees) falthful'y perform and
abide by all of the covenants, undertakings and provisions contalned In the
Resolution or In any Bond Issued thereunder, Including the following covenants
and agreements (provided however, that such covenants du not require the
Agency to expend any funds other than Pledged Tax Revenues):
The Agency covenants and agrees that itwtll diligently carry out
continue to coWletion, with all practicable dispatch, all curve
approved redevelopment activities 4n the Project Area In accordance
its duty to do so under and in accordance with the Redevelopment Law
the Redevelopment Plan and In a sound and economical manner.
Redevelopment Plan may be amended as provided In the Redevelopment Law
no amendment shall 6e made unless It will not substantially Impair
security of the Bonds or the rights of the Bondholders.
of the Bond, will be deposited and used as provided In the Resolution and
that It will manage • -d operate all properties owned by It and comprising
any part of the Projec .rea in a sound and businesslike manner
Covenant 3. No Priority. The Agency covenants and agrees that It
will nor Issue any obligations payable, either a• to principal or
Interest, from the Pledged Tax Revences which have, or purport to have,
any lien upon the Pledged Tax Revenues prior to or superior to the lien of
the Bonds Except as permitted In the Resolution, It will ru)t Issue any
obligations, payable as to principal or Interest, from the Pledged Tax
Revenues, which will have, or purport to have, any lien upon the Pledged
Tax Revenuos on a parity with the Bonds. NotulthstanOng tie foregoing,
nothing in the Resolution shall prevent the Agency (1) from Issuing and
selling pursuant to the Redevelopment Law refunding obligations payable
from and having any lawful lien upon the Pledged Tax Revenues. If such
refunding obligations are Issued for the purpose of, and are sufficient
for the purpose of, refunding dll of the outstanding Bonds and Parity
Bonds, (II) from Issuing and selling obligations which have, or purport to
have, any lien upon the Pledged Tax Revenues which is ,junior to the Bonds
or (1111 from Issuing and selling obligations
which are payable In whole or In part fnaa sources other than the Pledged
Tax Revenues As used In the Resolution "obligations" shall Include,
without limitation bonds, notes. Interim certificates, debentures or
other obligations
Covenant 4 Punctual Pa nt. The Agency covenants and agrees that
It wlit duly and puictun y pay or cause to be paid the principal of and
Interest on each of the Bonds on the date, at the place and in the manner
provided In tie Bonds
-20-
yo
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SLY DO:. NO. '862A CRQ 6/25/96
v Covenant 5. Payment of Taxes and Other Char es. Phe Agei,cy
cove,.nrS and agrees that it will pay and discharge aff payments In lieu
of t xes, service charges, assessments or other governmental charges which
may awfully be Imposed upon the Agency o: any of the properties then
ownil by it In the Project :tea, or upon the revenues and Income
therefrom, end will pay all lawful claims for labor, materials and
sup piles which if unpaid might became a lien or charge upon any of said
properties, revenues or Income, or which might Impair the security of the
Bonds or the use of Pledged Tax Revenues or other legally available funds
to pay t,.: principal of the Bonds and Inter, ,t th,,reon, all to the end
that the priority nd security of the Bonds shell be preserved; provided
howe,er, that nothing in this covenant shall require the Agency to make
any such payment so long as the Agency in good faith shall content the
va,'dlty thereof
Covenant 6. Books and Accounts• Financlal Statements. The Agency
�. covenants and agrees that it wt at al times keep, or cause to be kept,
proper and current books and accounts (separate frcm all ether records and
;- accounts) In which complete and accurate entries shall be made of all
transactions relaxing to the Project Area and the Pledged Tax Revenues and
other funds relating to such Project Area, and will prepare within one
r hundred twenty C120) days after the close of each of Its fiscal years, a
complete financial statement for such year In reasonable detail covering
such Project Area, Pledged Tax Revenues and other funds
Covenant 7. Eminent Domain Proceedings. The Agency covenants and
aarees that If al I or any parttf the Pro ect Area should be taken from It
w4hout Its consent by eminent domain proceedings cr other proceedings
authorized by law, for any public or other use under which the property
will be tax exempt, the net proceeds realized by the Agency therefrom will
be deposited In the special Fund and applt:d as if such proceeds were
r Pledged Tax Resenues.
area In the Project Area (except
in effect on the date tha Resolve
property to be used for public s
facilities, parks, easements or
other simllar uses) to public be
property Is tax exempt, unless
security of the Bonds or the ri
Impaired
The Agency covenants and
ten percent (10X) of the land
wn In the Redevelopment Plan
ed for planned public use, or
1c offstreet parkin,,, sewage
ly for public utilities, or
!r persons or entitles whose
tion will not result In the
Molders being su¢stantlally
security of the Bonds and the rights of the
their rights under all claims and demands of
covenants aid agrees to contest by court action
the United States of America or any department
-21_
Bondholders sad to dafend
all persons The Agency
or otherwise assertiop,by `
thereof that the interest
Amendments
The Resolution may be wAlfled without the consent of the Bondholders to
cure ambiguities or Insert clarifications provided that such do not adversely
affect the rights of Bondholders. For any other purpose, the Resolution may
s be modified or amended only with the consent of the holders of 60 perce'.st of
a) I Bonds then outstandir.{ (exclusive of Bonds owned by the Agency or the
C'ty) No modification or amendment will extend the maturity, reduce the
Interest rate or principal amount payable or reduce the percentage of consent
required for amendment without the express consent of all th6 holders of the '
Bonds so affected
CIA
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ys :&T o0C N0. 1862A CRQ 6125186`
L_
re:etvod by the Bondholders is taxable under federal Income tax lees. The
r,
Agency covenants-and agrees that it will not use the proceeds of the Bonds
at any time during the term Hereof which, If such use had teen- reasonably
"b
expected at the date the Bonds are Issued would have caused such Bonds to
be 'arbitrage tonds' within the meaning of Section 103(c) of the United
States Internal Revenue Code of 19S4, as amended, and applicable
r6gulations adopted thereunder by the Internal Revenue Service, and the
nsuch ttheBondsh such Section 103(U
and regulationnssethroughouteheitermoof
`
Covenant 10 Addltlonal Indebtedness. The Agency covenants with the
Holders of all of the Bonds at any time outstanding that it has not and
well nag incur any Ioans, obligations or indebtedness repayable from the
Tax Revenues such that the total aggregate debt service on said Ioans,
obligations or Indebtedness Incurred from and after the date of adoption
of the Redevelrpment Plan when added to the total aggregate debt service
or the Bon.;, will exceed the maximum aieourt of Tax Revenues to be divided
and allocated to the Agency pursuant to the Redevelopment Plan
Taxation of Leased Property
Whenever any property In tti Project Area is leased by the Agency t, any
perscn (other than a public agency) for redevelopment. the property shall be
assessed and taxed In the same manner as pri,ately owned property and the
leash or contract shall provide (a) that the iessee shalt pay taxes upon the
assessed value of the entire property and not merely upon the assessed value
of his or Its leaseho)d Interest, and (b that If for any reason the taxes
levied on such property In any year during the term of the lease or contract
are less than the taxes which would have been levied if the entire property
had been assessed and taxed in the same manner as privately owned property.
the lessee shall pay such difference to the Agency within thirty (30) days
r
after the taxes for such year become payable to the taxing agencies and In no
evert later than the delfaduency date of such taxes established by law. All
such payments shall be treated as Pledged Tax Revenues, and when received by
the Agency shall be deposited In the Special Fund
Amendments
The Resolution may be wAlfled without the consent of the Bondholders to
cure ambiguities or Insert clarifications provided that such do not adversely
affect the rights of Bondholders. For any other purpose, the Resolution may
s be modified or amended only with the consent of the holders of 60 perce'.st of
a) I Bonds then outstandir.{ (exclusive of Bonds owned by the Agency or the
C'ty) No modification or amendment will extend the maturity, reduce the
Interest rate or principal amount payable or reduce the percentage of consent
required for amendment without the express consent of all th6 holders of the '
Bonds so affected
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S&Y DOC NO. 1862A CRO 6/25/86
i THE RANCHO CUCAMONGA REDEVELOPMENT AGEKY
Authority and Management
The Agency was established pursuant to the Redevelopment Law. The City
Council adopted Ordinance No. 145 on May !0, 1981, activating the Agency,, and
pursuant to Resolution Ho. 81 -121 activated the Project Area The Agency
adopted the Redevelops it Plan pursuant to Resolution No. RA 81 -14 on
December 16, 1981
Members of the Rancho Cucamonga City Council serve by virtue of their
election as members to the Agency The City Council members are elected at
large for 4 -year overlapping terms, the Mayor Is elected for a 2 -year term.
The current members of the City Council together with their office., the year
of -heir term expiration, and ptincipal occupations are as follows:
Office Year Occupation
,effrey •Ing Mayor 11/2/88 Attorney
„haries J Buquet 1I Councilman 11/4/86 Risk Management Analyst
R.cnaiv 4 C01 Ccunr 'man 11/4188 Businessman
ramela Wright Councilman 11/2/86 School Teacher
Icn D Mlkels Councilman II /4186 Businessman
By agree-nent, the City provides all staff and administrative service to
the Agency Lauren N Massfirman, City Nanagar, Is the Executive Director of
th, Agency Jack Lam, who serves as the Community Development Director of the
rit, services as the repute Executive Director of the Agency
The Agency Treasm er, Jim Hart is the Administrative Services Director of
e City All ocher support staff also work for the City and irclude those
services Involving Planning and Engineering sections of the Commual ly
Development Department
Agency Powers and Dutles
All powers of the Agency are vested in five members The •gency exercises
a , the governmental functions as authortzeu under the Redevelopment Law and
has among other powe -s the authority to acquire, administer, develop. lease or
sell property, Incluoing the right of eminent domain and the right to Issue
bonds and expend the proceeds thereof The Agencv can clear buildings and
other Improvements and can develop as a building site any real property owned
or acquired and in connection with such development case streets, highway,
ano sidemilks to Le constructed or recnnst,ucted and public utilities to of
'nsralled
The Agenc. ,a. not of funds available to for such purpose, pay for all
or pa,t of �e ,aiue of IanJ and the cost of building edrllitles, structures
o• other improvements to be publicly owned and operated to the extent that
> such improvements are of benefit tc the Protect Area and no other reasonable
-23-
e'
S&Y DOC NO. 1862A CRQ 6/2$186
means of financing are available The Agenci mus: sell or lease from any
Property within the Project Area the redevelopment by others in strict +
:onformity with the Redevelopment Plan and may specify a period within which
such redevelopment must begin or be complet,ld.
Th•E RANCHO REDEVELOPMENT PROJECT
The Rancho Redevelopment Plan was adopted by the Rancho Cucamonga City ,f`s
Council an December 2:, 1981 colder the provisions of the Redevelopment Law.
The purpose of the plan Is to eliminate existing conditions causing a
reduction or lack of proper utillz3tion of lane within the Project Area to the
extent that It will no longer constitute a serious physical, social or
economic burden
Protect Area
The project area encompasses an Irregularly bounded area of approximately
8500 acres mainly In the undeveloped area or the City- The northern portion
of the project area contains boundaries of two planned communities; the
Victoria Planned Community of approximately 1150 acres. and the Terra Vista
Planned Community of approximately 1321 acres Both of these areas are
largely undeveloped and carry Master Plans to be developed over the ,;c•t 15
years A summary of the proposed 1a�- -use of each of these communities are
describ3d in table below.
Land Use
Victoria
Acres)
Terra Vista
( ores)
Coamerclal
360
235
Community 6
Recreational Uses
190
301
Roads
290
64 j
Residential
1035
721
T921
Total
110
The southern portion of the Project Area contains a pt;-tion of the
boundaries of an Industrial Specific Plan with in area of approximately 4155
acres This Specific Plan 1s an overall master plan for bushes:, ccarmerciat,
and Industrial uses Roughly 30% of the area within the Plan Is currently
developed with the remaining area plaiined for development during the next 15
to 20 years The Plan provides for approximately 1093 acres devoted to
industrial park use for office, research and development activities, 1850
acres for general indu strlal uses, and 1212 acres for manufacturing Industrial
users
The renalnina area within the project boundary generally lnclu:es areas
7ollowl,g the major east /w ^st arterial of Foothill Boulevard Land uses
wi•nir this area tre largely devoted to commercial and office use with some. ,.
scattered sites or vacant land
-t
-24-
Public Protect Imoraements
The Redevelopment P Specific u project nwhichare necessary In the Project In order to assist i a17evSatlon of '
development constraints These projects could requite participatlo by the
Agency because they are beyond the usual develcpment requirements of any ,ro.
private development. A summary of the projects are described as follows:
L Day Creek These Improvements would consist of the construction of
adequate headworks to latarcept the storn flows northerly of the Project ;
Area, along with the necessary channels through the Project Area and
adequate outlet for the storm flows downstream -of the Project Area ; �y
1.15 Foothill Boulevard Interchange. The development of the Pro
j Oct Area ,
will tequlre the upgrading of Foothill Boulevard/1-15 Interchange to
adequately provide for traffic as Owtl lned in the City's Traffic Plan.
' l ^y
(y If4`11
SdY DOC NO. 1862A CRQ 6125/86
& ;ad on the total assessed valuation of proper;les within the Project
Area, the following Is a listing the
]
of
corresponding assessed laluatlo of all their
ten largest property owners and
holdings
'
Major Property Owners In
the District
,
1984/85
'
Assessed
Name of Company
Valuation
Tamco (Parent Company of Ameron)
$21,095,158
Frito Lay
18,369,818
I'
General Dynamics (1)
7,822,650
RC Industrial
17,750,539
._
Nest Coast Liquidators
15,489,370
Ameron
19,531,380
RC Land Co.
10,494,000
Big Three Industries
10,347,717
Etivanda Investatents
9,549,240
Aver
YAssociates
R C II
9,496,128
-
Lewis 'tomes
8,333,042
OTR
8,158,096
James Barton
6,982,359
A R Reiter Development Co.
5,707,124
<)) Does not Include recent purchase of 300 acres and current con structtor.
of an office building estimated at $14
million upon completion,
Source County of San Bernardino Assessor's Office
Public Protect Imoraements
The Redevelopment P Specific u project nwhichare necessary In the Project In order to assist i a17evSatlon of '
development constraints These projects could requite participatlo by the
Agency because they are beyond the usual develcpment requirements of any ,ro.
private development. A summary of the projects are described as follows:
L Day Creek These Improvements would consist of the construction of
adequate headworks to latarcept the storn flows northerly of the Project ;
Area, along with the necessary channels through the Project Area and
adequate outlet for the storm flows downstream -of the Project Area ; �y
1.15 Foothill Boulevard Interchange. The development of the Pro
j Oct Area ,
will tequlre the upgrading of Foothill Boulevard/1-15 Interchange to
adequately provide for traffic as Owtl lned in the City's Traffic Plan.
' l ^y
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ia��c
-,�- S &Y OX NO. 1862A CRQ 6/2S/86
x
I -15 Seventh Street Interchange: This Interchange Is necessary for the
orderly growth of the area and will serve the cities of Rancho Cucamonga
and Ontario In addition to the Project Area
Completion of Drainage System Per City's Master rlan of Storm Drains: To
eliminate flooding within the Day /Etlwanda Creek and Deer Creek drainage
area-, it is necessary to construct an adequate drainage system to collect
the storm waters and discharge Into the appropriate creeks.
MIIIKen Avenue Grade Separation at the Atchison Topeka & Santa Fe
Railway Milliken Avenue Is a major planned north -South street to serve
the Project Area and cities of Rancho Cucamonga and Ontario The ultimate
development of the street requires a grade separation at the Atchison
Topeka 6 Santa Fee crossing
Haven Avenue Grade Separation at Atchison Topeka S Santa Fe Railway:
Haver. Avenue Is a major north -south street within the Project Area that
serves the cities of Rancho Cucamonga and Ontario. The grade separation
at the Atchison Topeka & Santa Fe railroad It vital for traffic safety on
this street
Deer Creek Bridges The City's ettywide traffic analysis Indicates the
need to widen the proposed fridges across Deer Creek at 6th Street,
Milliken Avenue, Church Street and Base Line Road
Traffic :'final & Controls The traffic projections within and through the
Project Ar -a will require the construction of a coordinated traffic signal
system or the major arteries The following proposed streets should be
signalized to provide smooth coordinated traffic flow Haven Avenue, Base
Line Road east of Haven Avenue, Milliken Avenue Foothill Boulevard, Arrow
Route, 6th Street Fourth Street. Etiwanda Avenue and Day Creek Boulevard
Other City Programs: (t) Hellman Avenue, widening at Foothill Boulevard,
dra!nage protection and trai'fic signals, (b) Turner Avenue, signals at
Footniil Boulevard, widening and correction of drainage, (c) Turner Avenue
at Atchison Topeka & Santa Fe Railway crossing, widening and correction of
drainage deficiencies, (d) Arrow Route, Archibald to 4aven Avenue,
widening; (e) Etivanda Avenue, 7th Stroet to Arrow Route, reconstruction
and widening, (f) Church Street, Center Avenue to laven Avenue, street
widening, (q) development of parks and recreation areas and facilities
within the Project Area
City Adalntstrative Civic Center
eater System Upgrade water system to provide service for additional
developments
Sewer System Current sewer treatment plant does not have adequate
capacity for additional development.
/� fir' ' ' ",}•��,
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S&Y DOC NO. 1862A C8Q 6/2S.!86
tndustrial Sewer Trunks:
Additional capacity necessary fcr Industrial
development.
- -
:�,
Regional Shopping Center:
Various public Improvements specified In the
Owners Part!ctpatton Agreement
°
New Construction Activity
`�r•
The taxable value added, as a resdlt,of new construction activity ,'wlt6ih
the Project Area, Is based on the estimated valuation of the project at - the'"
time of building permit issuance. -The following table details the anticipated'
'
`
projects and their estimated
assessed valuation and tax Increment projection
?
which will be completed in the
Project Area by the end of Fiscal Year 198S/86.
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SBY DOC 80. 1862A CRQ 625186;:
TABLE 5
SCHEDULE OF TAXABLE VALUE ADDED " _ ,.�`''•.y'
Estimated
Assessed Value at' Estlmated iasaEle
'ne Time of. Building Value Ad 'd to
Oevelooer /Develooment Permit Issuance Tax Increment Base-
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SbY OCC N0. 1862A CRQ 6/25/86 '
TAX EXEMPT STATUS
In the opinion of Bond Counsel, Interest on the Bonds Is exempt from ti
federal Income taxes and from State of California personal Income taxes under
existing statutes, regulations, rulings and court decisions -See "Pending
Legislation"
PENDING FEDERAL TAX LEGISLATION
On Oe:ember 17, 1985, the United states House of Representatives passed
H R. 3838, "The Tax Reform Act of 1985" ( "H R 3838 "). H R 3830 contains
provisions relating to tax- exempt obligations and by its terms applies to all
obligations Issued after ,December 31, 1985 On March 14, 1986, a joint
statement (rhe •Joint Statement ") was Issued by Representative Rostenkowski,
Chairman of the Committee on Hays and Means of the IAUSe of Representatives,
Senator Packwood, Chairman of the Committee on Finance of the Senate,
Representative Duncan, ranking member of the Senate Committee on Hays and
V.-ans. Senator Long, ranking member of the Senate Committee on Finance and
Secretary of the Treasury Baker endorsing a postponement of the effective date
of certain provisions of H R. 3838 relating to certain tax - exempt bonds until
September 1, 1986 (or the date of enactment of tax reform legislation, if
earlier) As a consequence of such joint statement, the Agency has not
Included covenants In the Legal documents for the Bonds or adopted other
procedures relatln; to compliance with H R 3838.
On May 6, 1986, the Senate Committee on Finance ordered H R 3838 to be
reported to the full Senate, with an amendment In the nature of a substitute
for H R 3338 (the "Senate Finance Committee Proposal ") The Senate Finance
Committee Proposal contains provisions relating to tax - exempt obligations and
In most respects applies tz, wiigatlons issued after enactment of tax reform
legislation
Regardless of the postponement of effective date contained in the Joint
Statement, under H R 3838, during any period In taxable years beginning after
1967 when the Bonds are held by property and casualty Insurance companies,
interest on the Bonds received by such companies would be subject to a minimum
tax, which would operate In a manner similar to the alternative minimum tax '
under existing law, and under the Senate Finance Committee Proposal, during
any period In taxable years beginning after 1986 when the Bonds are held by „
corporations, Interest on the Bonds would be Included In reported profits of
such corporations for the purposes of the alternative minimum tax provisions
applicable to corporations, which provisions require there to " included as
an Item of tax preference, in computing such alternative minimum tax, fifty �4;
Percent of reported profits not otherwise included in the minimum tax base. r
Except as to the minimum tax upon property and casualty Insurance
companies and the alternative minimum tax upon certain corporations, troth as
referred to In the preceding paragraph, It Is the opinion of Bond Counsel that.
(�(pI' .y+ ifs}. ti .��, •: ,. _ yf T ��;
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SSY DOC NO. 1862A
LEGAL OPINION i
The legal opialon of Jones Hall Hill & White, A Professforal Corporation,
San Francisco, Calirornla, will be delivered to the purchaser of the Bonds, at
toe expense of the nnercy, upon delivery thereof, approvinr, the validity of
tho Bonds and stating that interest on the Bonds Is exempt from Income taxes
or the United States of America under present federal income tax laws and such
Interest is also exempt from personal Income taxes of the State of California
under present State Income tax laws ,
RATING
Standard & Poor's Corporation has given the Bonds rating of The
City and Agency have furnished the rating agency with information and ewterial
net necessarily contained in this Official Statement Cenerally, rating
agencies base their ratings on Inforaation and material so furnished and on
investigations studies and assumitions made by the rating agencies Such a
rating reflects only the view of the rating agency and the s gnificance of the
rating may be obtained from Standard & Poor's Corporation
CLOSING DOCUMENTS
In addition to the opinion of Bond Counse', the Agency will, at the time
of delivery of the Bancs, furnish the purchaser the following documents,
signed by a responsib.e officer of the Agency, and dated as of the date of
delivery
1 Arbitrage CErtifical;e. The Agency covenants to cake no us+ of
the proceeds of the bonds which would. If such use he] be.n reasonably
expected on the date !hereof, have caused the Bonds to Le arbitrage
bonds The Agency will comply with the requirements of Section 103tc7 of
the Internal Revenue Code of 1954, as amended, and the regulations adopted
s' by the easury Department pursuant thereto
J
2 .No Lol _ation�Certlflcate The City and the Agency are not
awa,e of any litigation penp nl g or threatened affecting the validity of '
the Bonds or prohibiting the Agency from financing the Redevelopment
Project or performing Its obligations under the Resolution
,e
-30-
Qr a,.•: SO
S&Y DOC 110. 186ZA CRQ 6125 /8iG„
Certific.ite dncerning Official Statement. The Agency will, at' t
the time of dellvely of the Bonds, supp y to the successful bidder for the
Bonds, a certificate, signed by an appropriate officer of the Agency and
the City of Rancho Cucamonga, acting in their official, capacities, to the _
effect that at thu time of the sale' of the Bonds and* at all .times
subsequent thereto up to and Including the time of delivery of the Bonds,
the official Statement relating to tae Bonds did not contain any untrue
statemen" of a aateritl fact or omit to stator a material fact necessary to
make the statements therein, to light of the circumstances under which
they were made, not m sleading, fwd having attached thereto a copy of the
i Official Statement
MISCELLANEOUS
Legality for Investment and to Secure Deposits In Callforn'z
The Redevelopment Law prpvltes 2vnerally that the S::te aid Its municipal
corporations, political subdivisions and public bodies, V. well as banks,
trust comoanies, savings banks. Insurance companies, 11,1,1 various other
financial institutions and fiduciaries within the State of Cal'fornia may
legally Invest funds withln their control to bonds, or other obiigations Issued
by redevelopment agencies. Such bonds and other obligations are also Cade
authorized security for public deposits within the State of California.
The Superintendent of Banks of the State of California has ruled that
bonds of a redevelopment agency are, Ly statute, eligible for Investment by
savings banks in Cal fornla
Underwriting
The Bonds will be offered at public sale by the Agency and will be sold
to the highest responsible bidder as determined by provisions set forth In the
Official Notice of Sale of the Bonds The successful bidder may reoffer the
Bonds to the public at any price or yield it detarmines
Additional copies of the Agency's Official Statement, as well as copses of
the Resolution, may be obtained from the Agency's financing consultant, Stone
b Youngberg, One California Street, San rrancisco, California 94111.
Financing Consultant
material The
Youngberg asfinanc'1ngl consultant stof and aunder tthe directionp of dthe Agency.
i•
The financing consultant will receive coarensatlon from the Agency contingent r
upon sale and delivery of the Bonds Stene L You ^gberg may submit a bid for,
the Bonds and, If it Is the successful bidder, may purchase the Bonds and
resell all or a portion of the Bonds to the public 'd
ap
3�.^'!:2L° Y,`.a•`'�i #11.;•:_7 _ .,. .t.; � _ .5� •.1- .,
-32-
S&Y DOC NO. 1862A CRQ 6/25;'86
Additional Information
The quotations from,%end NUmmarles and explanatlotk$'of the Resolution and
other statutes and documents contained herein do not purport to b complete : -.
it
and reference Is madelto such documents. Resolution and ttatutet for full and
Complete statements of, their,, provisions
X
This Official Statement Is' submitted only In connection with the sale of
the Bona$ by the Agency. 411 estimates:' assumptions. statt'.tical Information'
and other statements contained herein, while taken from sources considered'
reliable, are not guarant4qd by the City or the- Agency. The Information
contained herein should not be construed as representing 'all cordltlans
affecting the Agency or the binds
V
',In
All Information contained this Official Statement pertaining to the
Agency. the City and the Project have bean furnished by the Agency and the
City, and the execution and delivery of this Official Statement have been duly .-n%
authorized by the Agency
REDFVELOPMENT AGENCY OF THE CITY OF
RANCHO CUCAW%HtGA
By: Lauren H. Wasserman, Executive Director
-32-
c'
0
k
d
Sly.
'i6Y DOC 1864A OTO 05/25/863
APPENDIX A
CITY GENERAL INFORMATION AND FCONOMICS
PART ONE: ECONOMIC AND GENERAL INFORMATION
Information contained In Appendix A is presented a, general background
data The Bonds are payable solely from the proceeds of Special Tax revenues,
Tax Increment Revenues and oth!r source, as described herein The taxing
power of the City of Rancho Cucamonga, the State of California or any
Political subdivision thereof Is not pledged to the payment of the Bonds. See
"The Bonds" for a description of the security for the Bonds
Location
The City of Rancho Cucamonga Is la;ated In the foothills of the
Los Angeles -San Bernardino Basin In the western portion of San Bernardino
County, approximately 40 tulles east of downtown Los Angeles and 120 miles
north of San Diego. The City covers about 54.3 square mlle3 and is bordered
by Ontario on the south, Upland on Me was: and Fontana on the east; to the
north are Cucamonga Peak and Mount Baldy. Elsvatlon In the City ranges from
1,056 co 2,400 feet above sea level
Climate
The C';v enjoys Medlterranean -type sun -belt weather with warm su''mers and
mild winters Year -round temperatures average from a January minimum of 46
degrees to a July maximum of 95 degrees. The average yearly rainfall of 15 -21
Inches occurs predominantly during the winter months. Humidity Is fairly
constant throughout the year at 601. Prevailing winds are from the southwest
averaging B -10 miles per hour
Municipal Government
Rancho Cucamonga was incorporated as a general law city In November 1977
in order to afford greater local control to the face of extremely rapid „
population growth. A Council- Manager form of municipal government Is
utilized Five council members. Including the Mayor, appoint the City Manager
to administer day -to-uay affairs under tho pulley guidelines of the City
Council As of July, 1986 the City had approximately 153 full time employees,
40 part -time employees and an annual budget of approximately 34 million.
The City has a cont�a.t with the San Bernardino County Sheriff's
Departnent to provide police services The force opera.es out of it temporary ,
sub- station in the City Land has been purchased for a now sub - station.
Fire protection and rescue service 1s provided for Rancho Cucamonga and '
surrounding areas by the Foothill Fire Prr:ectlon District.
{'x
A -1 •'i' ✓,
r
I
,M
F,
t= , J• [SoY DOC 1864A DID 06/25/867'
i Population �r
The 1986
population of Rancho Cucamonga is rtimated to be 73,842. The '
City has experienced rapid growth over the pas• decade, population more than
doubled between 1970 and 1980. Since 19F ,, the city's
Increased at an average annual rate of approe'aately S 2%
sropula :ion has
TABLE A -'
CITY AND COUNTY ")P LATION DATA t,r,
Yerr Rancho 6v .: or3a County of San Bernardino
1960(1) 10,7. 1 503,591
1970(1) 19,48• 682,233
1980(1) 55,250 895,016
' 1985(2) 65,680 1,053,771
�^ 1986(2) 73,847 1,110,478
(1) U S Census Bureau
(2) State Department of finance
Land Use
In April 1981, after three and one half years cf study and review the
City adopted a comprehensive General Plan, wr,:,,h has designated 52% of the
City for residential use, 6% for comercial use, 22% for industrial use, 11T
for pcbllr• /institutional use and 9% for open space Recognizing the
impo.tance of Industrial growth, the City also adopted an Industrial Area
Specific Plan in August 1981 A Specific Plan for a major new 2,150 acre
residential and regional shopping arpd Known as the Victoria Planned
Communtty, has been developed and adopted by the City. A third SV9cIf)c Plan,
Terra Vista Planned Community, has been adopted which Includes 1,321 acres
The Terra Vista •'evelopment will Include co=erclai and residential land uses
as we)' as a community park and school facilities In addition, the City has
formed a Redevelopment Agpncy to carry out needed redevelopment projects.
a Currently, Rancho Cucamonga Is approximately 40% developed. Its General
and Specific Plans recognize that growth in call Los Angeles area is
shifting
- frOw the ray saturated south (Orange County) eastward to San Bernardino County.
Employment - 'p
The City of Rancho Cucamonga x
Bernardino- Ontario Standard Metropolitan
tan StatisticaldArea which comprises all
of San Bernardino and Riverside Counties The civilian labor force,
Y,
employment and unemnloym:ent for the Riverside -San Bernard I no-On tar to SMSA Is,
outlined In the follow•ng table
Y. y A -2
Source State of California. Employment Development
The following table lists the annual average number of wage and salary
employees by Industry In Riverside and San Bernardino Counties
TABLE A -3
WAGE ARC SALARY EMPLOY?iEMT
RIVERSIDE -SAN BERNARDINO- OWAR10 SUSA
1381 -1985
Agriculture
Nonagrlculture Industries
Nanufacturlag
Durable goods
Nonmanufacturing
Mining
Construction
Transportation and
Public Utility
Trade
Nholesale Trade
Retail Trade
Finance Insurance and
Real Estate
Services
Government
All Industrles - Total
Annu31 Averaaae (1
1931 1982 1913 1984 1985
20,600 21,500 7 .*,300 22,500 22.500
437,900 431,800 432,300 445,000 515,900
63,900 59.100 57,100 6+1,400 66,000
46,100 41 iGO 39,700 42,000 46,500
373,900 372,800 3/5,100 384,;00
2.100 1,600 300 300 1,300
23,100 19,700 19,500 21,100 37,900
25,800 25,400 25,200 26,100 29,300
108,200 108,500 109,800 112,700 132,200
15,8CO 15,700 16,000 16,600 19,600
92,400 92,800 93,800 96,100 112,600
19 5C4 19,103 18,900 19,800 12 000
9 ?1600 9F 800 99,400 102,200 118 800
101,600 161,700 101.504 101,800 108,400
458,500 453,400 454,500 467,500 538,500
(1) May not add to totals due to rounding
Source State of California. Emp'o,nent Development Department
A -3 y-Y$
SS jlr' try
v,
e,"
r
,
Y °.
{
1979
S.`:.
1980
+.
1981
1982
1983
1984
1985
RIVERSIDE -SAN
BERNARDINO- ONTARIO SMSA
Source State of California. Employment Development
The following table lists the annual average number of wage and salary
employees by Industry In Riverside and San Bernardino Counties
TABLE A -3
WAGE ARC SALARY EMPLOY?iEMT
RIVERSIDE -SAN BERNARDINO- OWAR10 SUSA
1381 -1985
Agriculture
Nonagrlculture Industries
Nanufacturlag
Durable goods
Nonmanufacturing
Mining
Construction
Transportation and
Public Utility
Trade
Nholesale Trade
Retail Trade
Finance Insurance and
Real Estate
Services
Government
All Industrles - Total
Annu31 Averaaae (1
1931 1982 1913 1984 1985
20,600 21,500 7 .*,300 22,500 22.500
437,900 431,800 432,300 445,000 515,900
63,900 59.100 57,100 6+1,400 66,000
46,100 41 iGO 39,700 42,000 46,500
373,900 372,800 3/5,100 384,;00
2.100 1,600 300 300 1,300
23,100 19,700 19,500 21,100 37,900
25,800 25,400 25,200 26,100 29,300
108,200 108,500 109,800 112,700 132,200
15,8CO 15,700 16,000 16,600 19,600
92,400 92,800 93,800 96,100 112,600
19 5C4 19,103 18,900 19,800 12 000
9 ?1600 9F 800 99,400 102,200 118 800
101,600 161,700 101.504 101,800 108,400
458,500 453,400 454,500 467,500 538,500
(1) May not add to totals due to rounding
Source State of California. Emp'o,nent Development Department
A -3 y-Y$
SS jlr' try
v,
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r
,
S.`:.
ES&Y DCC 1864A DID 06125!867
TABLE A -2
RIVERSIDE -SAN
BERNARDINO- ONTARIO SMSA
CIVILIAN LABOR FORCE, EMPLOYMENT
AMU UNEMPLOYMENT
Labor
Uneeployment
Force
Employment
UnemplMent
Rate
581,700
543,50u
38,200
6 6'L
586,200
541,500
47,700
7 6
604,400
553,700
50,703
8.4
636,200
558,800
77,100
12 2
642.500
572,600
69.900
10.9
665,600
608,250
57,400
8.6
;78,300
722,600
56,100
'7.2
Source State of California. Employment Development
The following table lists the annual average number of wage and salary
employees by Industry In Riverside and San Bernardino Counties
TABLE A -3
WAGE ARC SALARY EMPLOY?iEMT
RIVERSIDE -SAN BERNARDINO- OWAR10 SUSA
1381 -1985
Agriculture
Nonagrlculture Industries
Nanufacturlag
Durable goods
Nonmanufacturing
Mining
Construction
Transportation and
Public Utility
Trade
Nholesale Trade
Retail Trade
Finance Insurance and
Real Estate
Services
Government
All Industrles - Total
Annu31 Averaaae (1
1931 1982 1913 1984 1985
20,600 21,500 7 .*,300 22,500 22.500
437,900 431,800 432,300 445,000 515,900
63,900 59.100 57,100 6+1,400 66,000
46,100 41 iGO 39,700 42,000 46,500
373,900 372,800 3/5,100 384,;00
2.100 1,600 300 300 1,300
23,100 19,700 19,500 21,100 37,900
25,800 25,400 25,200 26,100 29,300
108,200 108,500 109,800 112,700 132,200
15,8CO 15,700 16,000 16,600 19,600
92,400 92,800 93,800 96,100 112,600
19 5C4 19,103 18,900 19,800 12 000
9 ?1600 9F 800 99,400 102,200 118 800
101,600 161,700 101.504 101,800 108,400
458,500 453,400 454,500 467,500 538,500
(1) May not add to totals due to rounding
Source State of California. Emp'o,nent Development Department
A -3 y-Y$
SS jlr' try
v,
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r
,
R
�'
ISSY DDC 1864 DTD 06/25/861
Manufacturing Employment
There are nearly 300 manufacturing plants located In Rancho Cucamonga. As
of December 1984, the largest manufacturing firms in the City were
TABLE A -4
LARGEST MANUFACTURING rIRMS
Name of company
Employee s
Products
General Dynamirs
Over 1,000
Tactical weaponry
United Flag Processing
Over 1,000
Recycling Steel
Klondike (Pacific) Corporation
S00 -1,000
Mfg. Ice Cream Products
Pic 'N' Save
500 -1,000
retail
Nheat Motor Ccmpany
500 -1,000
kecreational Vehicles
In:piron
250 -500
Medical products
Ameron Steel G Mire
250 -500
Reber, coil mesh, wire
Fritu Lay
250 -500
Snack Foods
National Can
250 -SX
Lithographed metal and can
Charley College
700•.800
components
Safetran Systems
250 -500
Electronic railroad signals
ISO
E�
1g processing
and communication equipment
Data Oeslyn LaboratL its
250 -500
Life support systems, Scuba
E99 Processing
And medical apparatus
Tamcm
250 -500
Steel Ind hire products
Source Rancho Cucamonga Cbat:bar of Commerce
tam - Manufacturing Employment
As of December 1954, the largest non - manufacturing employers were:
;.
TABLE A -5
t
LARGEST kON- NANUFACTURIIIG
FIRMS
Name o_ t F. I,2VIr
Employees
Type of Business
Ontario International Airport
Over 1 000
Fixed Base Operators,
Airport Services
Rancho Cucamonga Schools
goo -1,000
Education
Charley College
700•.800
Education
.
!
r
Quality Farms
ISO
E�
1g processing
:i
,
Sunshine Farms
125
E99 Processing
City of Rancho Cucamonga
Over 100
Government
A.,4
i':'Yt.Fazt"jo, i •- .`4�{c? : +: rl -w'vr s: '�t �' ..4. `: ;,,5 e
t:
Source California Construction Trends, Security Pacific Bank
A -5 :.
.]'���yi h_9i';ii °nM� �♦••s.. _ ..qj{�'n, 1 S ���
IMP
E C •
(SLY CAC 1864A DID 05125/863
.
TABLE .1-6
CITY OF rANCNO CiCANONGA
y
VALUATION OF TAXABLE TRANSACTIONS
,
:.
(In thousands of dollars)
Retail Stores Total All
Outlets
No. o Taxable No. of
Taxable
Year
Permits Transactions Permits Transactions
'
1980
259 S 74,683 gad
$129,491
r. •:
1981 ..
279 87,820 1,0,3
159,033
1982
304 108,259 1,202
182 356
•,`-"
1983 ..
305 119,744 1,230
169.3'3
'ao. 4;
•
1984
313 140,239 1,339
216,695
1985
360 115,594 1 490
188,159
t
Source State Board of Equalization
Construction
The rapid growth
In construction since ;982 has essed somewhat
to an
annul rate of approximately 10% 1. 1985 The following table
sumarizes
annual building permits valuation for the City from 1982 through 1986
TABLE A -7
CITY OF RANCHO CUCAMONGA
e
BUILDING PERMIT VALUATION
(In thousands of dollars)
y.
1982 1983 1984 1985
1980
Residential
`y
New single dwelling
$ 9.104 5 31,991 $107,430 S 94,729
5 81,086
New multi dwelling
3,855 2,406 27,015 39,006
37,346
Additions, alterations
1,603 1,304 5,792 4,970
3,505
f
Total Residential
14,760 35,701 140,227 138,705
122,837
Non Residential
New C mmerclal
746 43,830 5.544 31,110
6,637
New Industrial
4,811 21,423 33,253 22,291
12,244
Other
3 535 1,244 3,471 6,674
6,016
c.=
Addition., alterations
2,339 5,866 3,336 4,866
1,935
Total Noy - Residential
11,431 72,363 45,604 64,941
26,832
Total Valuatton
326.191 5108,064 $185,831 $203,646
149.669
Number of New Drrotl ing
Unite
-
S'ngle Dwelling
130 530 1,308 1,346
1,050
wltl Dwelling
117 45 882 1,051
1,193
�.
Total Units
247 575 2,190 2,397
2,243
_ts
Source California Construction Trends, Security Pacific Bank
A -5 :.
.]'���yi h_9i';ii °nM� �♦••s.. _ ..qj{�'n, 1 S ���
A.
,y
u
■ (',
ES6f DOC 1864A DID y0612S/86j"
Public Utilities
Water Industrial waste andl sewer service fare furnished by then ChInG NBasln Municipal
Hater District Electricity Is supplied by Southern California Edison
Company Natural gas Is provided by Southern California Gas Company and
telephone service Is supplied by General Telephone Company of California.
Transportation
The San Bernardino Freeway (Interstate 10) runs just south of the city
Bolts and links Los Angeles County to San Bernardino and Riverside Counties
Interstate 15 (Devore Freeway) runs earth -south through the eastern part of
the C'ty and links Rancho Cucamonga to Las Vegas and San Olege.
Ontario International Airport located adjawnt to the southern City limit,
provides air cargo and passenger flight service, as does Los Angeles
International Airport, 8urfank- Glendale - Pasadena Airport, Long Beach
International Airport and Or.nge County AlrpOrt which are all less than 50
miles from the City The Ontario International Airport Is served by la
commercial airlines and has recently completed a major expansion including the
building of a new runway to handle wide body jet aircraft
Bus transportation 1; provided by Greyhound and Continental Trailways for
transcontinental service Omni -trans provides intercounty and local service.
Dial -A -Ride and Para- Transtt provide service to the elderly and handicapped
Passenger railroad service Is provided by Amtrak, and freight railroad
service is Su by the Union Pacific, Southern Pacific and the Atchison,
Topeka L Santa pplFe Railroads Several trucking lines have terminals In the
area which provice dally scheduled service to transcontinental 'olnts.
The nearest deep water port facilities are located about 50 miles from the
City at the Los Angeles and Long Beach Harbors
A. -6
i
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i
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)
b
r
is
4
Expenditures.
G.•neral Government
$1.718,618
$1,814,6S3
Put)'. - Safety
2,631,001
2,922,292
Community Oeveloptcant
2,233,542
_
Community Services
203,416
•4• ,i•J
Total Erpenditures
$6.785,577
[SLY DOC 1864A DID
061251661"
(Under) Expenditures
$(237,220)
PART TWO:
CITY FINANCIAL
INFORMATION
Cperating Transfers In
$789.724
$430,498
9p2rating Transfers Out
Financial Statements
—
Excass of Rtvorues /Other
„K
Source: ^ver Expenditures/
The table below shows Ggneral
Fund revenues
and expenditures for
the last "'•
three years. Ove. the three
years shown, revenues have grown at
an average rl
rate of % white
expenditures have
Increased at a
rate of .�kt
_x•
Restatement
x
eeserves and Residual
TABLE A -8
Equity Transfers
CITY OF RANCHO CUCA"DNGA
(116,207)
GENERAL FUND REVENUES, EXPENDITURES AND FUND BALANCE
198243
1983 -84
1984 -85
General Revenues:
356,443
881 976
:-
Taxes
$3,563,610
$3,962,324
Licenses an.' Permits
655,278
1,302.362
Lines and Forfeits
17,110
13,563
Use of Hongy and Property
256,171
3b8.63S
In•.etgovernmental
1,093,106
1,136 621
Charges for Services
720,474
1,376,563
Other
128,408
30,281
TOTAL REVENUES
$6,549 357
$8,190,355
Expenditures.
G.•neral Government
$1.718,618
$1,814,6S3
Put)'. - Safety
2,631,001
2,922,292
Community Oeveloptcant
2,233,542
2,142,890
Community Services
203,416
259,042
Total Erpenditures
$6.785,577
$7,738.877
Excess of Revenues over
(Under) Expenditures
$(237,220)
$451,478
Other Financing Suu)'cos (Uses)
Cperating Transfers In
$789.724
$430,498
9p2rating Transfers Out
$(196.061)
—
Excass of Rtvorues /Other
Source: ^ver Expenditures/
Other Sources
$356,443
$881,976
Fund Balances
Beginning of Fiscal Year
(as originally -epv-ted)
$3.4ii.760
$3.976.612
Restatement
(118,207)
eeserves and Residual
Equity Transfers
(116,207)
Add Excess of Revenue and
other Sources over
Expenditures
356,443
881 976
End of Fiscal Year
53.168.211
$4.740•91.
Souse City of P.ancho Cucamonga Audited Flrancial Statements
A-7
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n�
h
v
-s
�A
I 4
C` 4
iZl
`<V -M.: Q_'rt- .td'C=Y., �r_f �['Y .i"F 7i�S' �y {:9 ���1 /1 `YU -Z•'l Y ""Y /1ny<�r`�'.�Yi[l d,My'{;.y.1I.
h I
.F,7r
[SLY OX :1864A
OTD 66/25!667
)
The following table presents the City's General
Fund- Balance
Sheet fot the
la.t three years.!
�r
'
TABLE A -9
;.•
CITY OF RANCHO CUCAWNGA
"
General Fund Balance Sheet, Juno 30
"
!
ASSETS
1983
1984
1985
t
Cash
$7,102,317
$2,441,369
Receivables
.�
Taxes
221,623
182,254
Accounts and notes
14,281
14,557
d
Accrued toterest
10.900
39,425'`
Due frou other funds
290,605
353,75?
'
Duc from redevelopment agency
220,000
2.000.000
-
Total
$3.859,722
55,037,358
LIABILITIES
•+
Accounts payable
$55,503
$109,918
'
Accrued payroll
! 702
39,S12
Contracts payable
12,141
147,547
r
Due to other funds
22.165
,
Total Liabilities
591,511
S296,977
MD EOL'1 tY
'
runt Balances
.�
6zserved(t)
$3,898,•132
Resery ;s
2 126,509
'0
Encunbrancet
67,n82
189,947
Unreserveu /Undesignated
1 574,620
6551,976
-`
Total Fund Equity
$3,768,211
$4,740,38)
'
Total Liabil'tles and
%und Equity
$3.859,722
$5.037,358
(1) Reierved Fund Fquity in
1934 Includes
a $2." ^OO
loar to the
Redevelopment Agency and 21
989 492 restricted for spe0 lied purposes by
,.
the CI•y
J
'
Source City of Rancho 'ocac*rga Wdltad financial
Statements
'=
F
4.
•.:.sir,
Rarios to Assessed Valuation.
Direct Oebt -
Total Gross Debt 27
Total Net 2.94%
SNARE OF "I'll"IIr" AND UNSOLD BONDS
Netrnoo —Tan Haler DlN Y t $1,319,700
Alta Lama School District $7.544 721
Cucamonga School District $ 391,298
STATL SCHOOL 3UILDING AID REPAYABLE AS OF 6/30/85 $12,557,990
Source. California Municipal Statistics, Inc
A -9
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ISBY DOC 1864A
DID 06/25/861
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Direct and Overlapping Debt-
Table A -10 shows the City's direct and overlapping bonded
debt and debt
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ratios as of June 6, 1986.
TABLE A -10
CITY OF RANCHO CUCAMONGA
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DIRECT AND OVERLAPPING
BONDED DEBT
1985 -86 Assesl;ed Valuation. $2,157,431,523
(after deducting
$516,337,161
redevelopment tax
allocation Increment)
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DIRECT AND OVERLAPPING BONDED DEBT:
% Applicable
Debt 6/1!86
San Be nardlno County Building Authorities
7,438.
$10,460,432
San Bernardino County Free Llorary Authority
10.322
76,382
Metropolitan Water District
0 498
2,661,670
Chino Oasin Munl• ,a) Hater District
19.614
1,553,428
Chino Basin Municipal Hater District Authority
19 614
15,691
Fontana Unified school District
0.480
1 200
Chaffey Jt Union High School District
28 383
149,010
Alta Loma School District
99 338
4,649,018
Central School District
98 479
2,481,670
Cucamonga School District
71.719
810,424,
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Upland School District
0 064
•1,206
Cucamonga County Water District (Various issues) 88 188 -88 270
1,291,695
Cucamonga County Hater District, I.D. B 1963 -1
93 965
681,246
Cucamonga Lounty Hater District, I 0 d 2
100
50,000
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Cucamonga County Hater District, 10. 0 5
94.072
6,387,488
City of Ranch Cucamonga Community Facl,itles
District 1184 -1
100
18,000,000
City of Rancho Cucamonga 1915 Act Bonds
100
75 024 500
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TOTAL GROSS DIRECT AND OVERLAPPIUNG BONDED DEBT
64,339,060
Less: City of San Bernardino Hater System
Acquisition
Certificates of Participation (100%
self - supporting)
734,502
Cucamnga County Water District, I D
02
(100% self - supporting)
90.000
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT
$63,514,558
Rarios to Assessed Valuation.
Direct Oebt -
Total Gross Debt 27
Total Net 2.94%
SNARE OF "I'll"IIr" AND UNSOLD BONDS
Netrnoo —Tan Haler DlN Y t $1,319,700
Alta Lama School District $7.544 721
Cucamonga School District $ 391,298
STATL SCHOOL 3UILDING AID REPAYABLE AS OF 6/30/85 $12,557,990
Source. California Municipal Statistics, Inc
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[SLY DOC 1864A DTD 06125%667
Assessed Valuations
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Table A -11 shows a five yhar hl.tory of Rancho Cucamonga 's assessed
valuation Over these five
years, the City's assessed valuation has increased
at an average rate of approximately 6 6X.
7AM,E A -ti
CITY OF RAM(RO CUCA140jXA
Assessed Valuatiens (1)
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Assessed Valuations (after redevelopment adjustment) Percentage Increase
1981/82 $1,673,519,837 t'
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IS82/83 1,832,098,396 9.4%
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1983/84 1,874,006,496 2 3
1984/85 2,004,404,301
1985/86 2,157,431,523 7 6
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(1) Assessed Valuations are before deductl�g redevelopment tax allocation
Increments, the taxes on which accrue to the Redevelopment Agency.
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Source California Municipal Statistics, Inc.
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