City of Santa Barbara City Adrnlntstrator’s Office wwwSantaBarbaraCA.gov*

- City of Santa Barbara: Over the past 11 years spent $210.4 million; received $162.7 in tax increment; has $167.2 million in outstanding long-term debt and obligations. City Response: Over the past eleven years the former Redevelopment Agency spent $224,254,335 and received $173,081,504 in tax increment revenues. As of June 30, 2011, the former Redevelopment Agency has outstanding bonded debt obligations of $65,165,753, including principal and interest. Regarding other outstanding long-term obligations, the Successor Agency of the Redevelopment Agency of the City of Santa Barbara has outstanding long term debt obligations of approximately $55,589,025. When combined with the bonded indebtedness of $65,165,753, the total is $120,754,778, an amount significantly below the $167.2 million reported by the Grand Jury. The Oversight Board for the Successor Agency to the former Redevelopment Agency of the City of Santa Barbara is currently considering the Successor Agency's Recognized Obligation Payment Schedule (ROPS). The ROPS is a payment schedule which details the enforceable financial obligations of the Successor Agency including the amounts, dates of payment, source of funding and payee for each payment. Once approved by the Oversight Board, the ROPS will then be forwarded to the State Department of Finance for consideration and approval as required by AB 26. The final amount determined to be enforceable obligations by the Oversight Board may differ from the amount reported by the Successor Agency of the Redevelopment Agency of the City of Please consider the environment before printing this letter. Response to Santa Barbara County Grand Jury Report May 22, 2012 Santa Barbara.

- Detailed data are not available on the amount of money spent on individual projects, the recipients of this money, or how these projects have contributed to eliminating blight. City Response: Detailed data regarding the amount of money spent on past individual projects including housing and non-housing projects, and the recipients of the money spent, has always been available via the former RDA's Comprehensive Annual Financial Report (CAFR). The CAFR for years 2005 through 2011 can currently be found on the City's website at: http://www.santabarbaraca.gov/Government/Finance/CAFR/ Hard copies of all years prior to 2005 are available upon request. The CAFR is an extremely detailed document that presents information in a clear and concise manner and includes an annual financial audit. In addition, California Community Redevelopment Law required that every Redevelopment Agency develop and adopt an Implementation Plan. The Implementation Plan for the Central City Redevelopment Project (CCRP) is prepared pursuant to Health & Safety Code Section 33490. Its purpose was to set forth the goals of the Redevelopment Plan for the Central City Redevelopment Project and to present an overview of the programs the Redevelopment Agency expects to implement over the next five years to advance those goals and to eradicate blight within the Project Area. The Implementation Plan also details how each project and each project category's relationship to the elimination of blight. Implementation Plans for the periods of 2000- 2004, 2005-2009, and 2010-2014 can be found on the City's website at the following address: http://www.santabarbaraca.gov/Resident/Home/Redevelopment/rda_reports.htm Grand Jury Recommendation 1: That all successor agencies provide on their websites the following for projects funded over the past 10 years, including projects that have been funded, but not completed: 1. List of all projects funded (completed or not) and the designated blight they eliminated 2. The amounts spent (or to be spent) on each individual project 3. The names and locations of recipients of over $25,000 associated with each project 4. Administrative costs and professional services associated with each project 5. Amounts of principal and interest payments associated with each project City Response: Detailed data regarding projects, the amount of money spent on past individual projects including housing and non-housing projects, and the recipients of the money spent, has always been available via a variety of public sources including: the former RDA's Comprehensive Annual Financial Report (CAFR), the former RDA's Five Year Implementation Plans, as well as project specific Council Agenda Reports. Response to Santa Barbara County Grand Jury Report May 22, 2012 The CAFR for the years of 2005 through 2011 can currently be found on the City's website at: http://www.santabarbaraca.gov/Government/Finance/CAFR/ Hard copies of all years prior to 2005 are available upon request. The CAFR is an extremely detailed document that presents information in a clear and concise manner and includes an annual financial audit. California Community Redevelopment Law required that every Redevelopment Agency develop and adopt an Implementation Plan. This Implementation Plan for the Central City Redevelopment Project (CCRP) is prepared pursuant to Health & Safety Code Section 33490. Its purpose was to set forth the goals of the Redevelopment Plan for the Central City Redevelopment Project and to present an overview of the programs the Redevelopment Agency expects to implement over the next five years to advance those goals and to eradicate blight within the Project Area. Implementation Plans for the periods of 2000-2004, 2005-2009, and 2010-2014 can be found on the City's website at the following address: http://www.santabarbaraca.gov/Resident/Home/Redevelopment/rda_reports.htm City of Santa Barbara policies dictate that contracts above $25,000, excluding maintenance-type projects, be approved by City Council in a public meeting. Therefore, detailed information regarding contracts over $25,000 are available by viewing the Council Agenda Reports for the particular contract proposal. City Council Agenda Reports can be found on the City's website at the following address: http://www.santabarbaraca.gov/CAP/ Grand Jury Recommendation 2a: That all successor agencies provide on their websites their plans for defining and eliminating blight in the absence of RDAs. City Response: Since 1972 the tax increment generated by the Redevelopment Agency's programs and projects have been the primary funding source to finance projects that fight blight within the 850-acre Central City Redevelopment Project Area. This funding source has been eliminated and the City of Santa Barbara will be looking for other sources including possible Federal and State grant programs to assist with the elimination of blighting conditions. The City will continue to support eliminating blight based upon available resources including funding sources such as the Federal Community Development Block Grant program. However, developing specific plans for defining and eliminating blight in the absence of redevelopment agencies, and posting such plans on the City's website is not a current requirement of the City of Santa Barbara. In addition, there is no longer staff to the Redevelopment Agency and thus no near term plans to embark on such an endeavor. Grand Jury Recommendation 2b: That all successor agencies provide on their websites their plans for providing low- income and moderate-income housing in the absence of RDAs. Response to Santa Barbara County Grand Jury Report May 22, 2012 Response: Since 1972 the tax increment generated by the Redevelopment Agency's programs and projects have been the primary funding source to to develop and maintain affordable housing in the City of Santa Barbara. This funding source has been eliminated and the City of Santa Barbara will be looking for other sources including possible Federal and State grant programs to assist with the elimination of blighting conditions. Over $50,000,000 has been invested in the development and preservation of affordable housing by the Redevelopment Agency of the City of Santa Barbara. Of the roughly 37,000 housing units in Santa Barbara, approximately 8% are now considered affordable under long-term restriction. Many of the mechanisms used to develop and preserve affordable housing dissolved along with redevelopment agencies. On January 10, 2012 the City of Santa Barbara elected to have the City retain the housing assets and assume the functions previously held and performed by the Redevelopment Agency of the City of Santa Barbara. The source of funding to perform these functions is unknown at this time. The City of Santa Barbara will continue to encourage the development and preservation of affordable housing through its Affordable Housing Policies and Procedures can be found on the City's website at the following address: http://www.santabarbaraca.gov/Resident/Home/Housing/reports.htm In addition, the City of Santa Barbara will be looking to possible Federal and State grant programs to assist with the development and preservation of affordable housing. Detailed information articulating the City's plans for providing low-income and moderate- income housing can be found within the "Draft 2012 Action Plan" on the City's Community Development Block Grant website located here: http://www.santabarbaraca.gov/Resident/Health/CDBG/CDBG.htm Grand Jury Recommendation 3: That all successor agencies provide on their websites debt retirement schedules. Response: The Successor Agency will post the debt retirement schedule on its website by June 1, 2012. Sincerely, James Armstrong City Administrator Mayor & Council, City of Santa Barbara CC: Robert Samario, Finance Director Marcelo Lopez, Assistant City Administrator Paul Casey, Assistant City Administrator