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<br />Redevelopment Agency of the City of Redwood City <br />Notes to Basic Financial Statements, Continued <br />For the year ended June 30, 2006 <br /> <br />4. CAPIT AL ASSETS <br />The Agency's capital assets at June 30 comprise: <br /> Balance Balance <br /> Asset Type July 1, 2005 Additions Deletions June 30, 2005 <br /> Land $ 3,126,664 $ $ $ 3,126,664 <br /> Construction in progress 17,782,944 12,000,653 (2,833) 29,780,764 <br /> Total non-depreciated assets 20,909,608 12,000,653 (2,833) 32,907,428 <br /> Machinery and equipment 14,965 14,965 <br /> Less accumulated depreciation <br /> on Machinery and equipment (11,170) (2,031 ) (13,201) <br /> Storm Drains 4,101,302 4,101,302 <br /> Less accumulated depreciation <br /> on Storm Drains (153,799) (102,532) (256,331) <br /> Total capital assets, net $ 24,860,906 $ 11,896,090 $ (2,833) $ 36,754,163 <br />Depreciation expense of $104,563 was charged to community development program based on its usage of <br />the related assets. <br /> <br />5. LOW AND MODERATE INCOME HOUSING SET ASIDE <br /> <br />The Agency is required to set aside a portion of the property tax increments it receives to increase and <br />improve the City's supply of low and moderate income housing. The amount set aside must equal twenty <br />percent of each year's property tax increments. The Agency was in compliance with the twenty percent set- <br />aside requirement for fiscal year 2005-2006. <br /> <br />6. INTERFUND TRANSACTIONS <br /> <br />A. Transfer Between Funds <br /> <br />With the Agency Board approval, resources may be transferred from one Agency fund to another. The <br />purpose of the majority of transfers is to reimburse a fund which has made an expenditure on behalf of <br />another fund. <br /> <br />During the year ended June 30, 2006, the Redevelopment Special Revenue Fund transferred $1,183,400 and <br />the Low and Moderate Income Housing Special Revenue Fund transferred $295,851 to the 1997 Tax <br />Allocation Refunding Bonds Fund for debt service requirements. In addition, the Redevelopment Special <br />Revenues Fund transferred $331,075 to the 2003 Tax Allocation Bonds Fund for debt service requirements. <br /> <br />29 <br />