HomeMy WebLinkAbout2012/01/12 Item 01-- CITY COUNCIL &n
f - REDEVELC~f'IvIENT AGENCI'
AGENDA STATEMEI~IT
ITEM TITLE: CONSIDERATION OF AUDITED FINANCIAL STATEMENTS FOR
FISCAL PEAR ENDED JUNE 30, 2011
SUBMITTED BY: DIRECTOR OF FINANC /TREASURER
REVIEWED BY: CITY MANAGER
ASSISTANT CIT ANAGER S~
4/STHS VOTE: YES ~ NO ~X
SUMMARY
Presented for City Council and Redevelopment Agency information and acceptance are the Audited
Financial Statements for the fiscal year ended June 30, 2011, as prepared by the independent audit
firm of Caporicci & Larson. The audit reports submitted for the City and Agency have received
unqualified (clean) opinions from the independent audit firm.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that filing of the audited
financial statements is not a "Project" as defined under Section 15378 of the State CEQA
Guidelines because it will not result in a physical change to the environment; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA.
RECOMMENDATION
Council and Agency accept the fiscal year 2010-2011 Financial Statements.
BOARDS/COMMISSION RECOMMENDATION
Not applicable
DISCUSSION
Pursuant to the City Charter Section 1017, an annual audit is performed of the City's financial
records by an independent accounting firm. The reports are included as attachments. The firm of
Caporicci & Larson has examined the general purpose fmancial statements of the City of Chula
Vista and the Redevelopment Agency and has issued their opinion that those statements "present
fairly, in all material respects, the fmancial position of the City as of June 30, 2011 and the results of
its operations and cash flows for the year then ended in conformity with .generally accepted
accounting principles".
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JANUARY 12, 2012, Item
January 12, 2012 Item )
Page 2 of 2
The General Fund unassigned fund balance was verified to be $11.9 million as of June 30, 2011.
The $11.9 million unassigned fund balance represents 9.6% of fiscal year 2011-12 General Fund
operating expenditures.
In order to form a basis for their opinion, Caporicci & Larson, evaluated the internal control
procedures of the City and found no reportable conditions.
This was Caporicci & Larson's third yeaz serving as the City's auditors. The audit firm was very
professional and efficient in their work, and provided insights and ideas that were incorporated into
the City's Consolidated Annual Financial Report (CAFR).
DECISION MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial, secretarial, manual,
or clerical in nature and does not require the City Comicil members to make or participate in
making a governmental decision, pursuant to California Code of Regulations section 18702.4(a).
Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.).
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact to the City or Agency from this action. The contract for audit services
totaled $106,998 for the yeaz reported. The cost of the audit is shared proportionally with other City
funds.
ON GOING FISCAL IMPACT
There is no fiscal impact in future years.
ATTACHMENTS
Attachment 1-Fiscal Year 2010-11 Comprehensive Annual Financial Report
Attachment 2- Fiscal Year 2010-11 Redevelopment Agency, Basic Financial Statements and
Auditor's Report
Prepared by: Phillip Davis, Assistant Director, Finance Department
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ATTACHMENT 1
CITY OF CHULA VISTA
CONSOLIDATED ANNUAL FINANCIAL REPORT
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COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
For the year
ended
JUNE 30,
x ; . 2011
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CITY OF
CHUTA VISTA
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Comprehensive Annual
Financial Report
Foy The Fiscal Year Ended
June 30, 2011
Compiled under the direction of
Maria Kachadoorian
Director of Finance/Treasurer
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City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2011
Table of Contents
Paee
INTRODUCTORY SECTION
Table of Contents ........................:...........................................................................................................................i
Letter of Transmittal ..............................................................................................................................................v
Principal Officials ...................................................................................................................................................xiv
Organization Chart .................................................................................................................................................xv
Certificate of Achievement for Excellence in Financial Reporting - GFOA ...................................................xvi
FINANCIAL SECTION
Independent Auditors' Report ............................................................................................................................1
Management's Discussion and Analysis (Required Supplementary Information) .................................3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets ............................................................................................................................22
Statement of Activities and Changes in Net Assets ..............................................................................24
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................ ..............30
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets .................................................... ..............33
Statement of Revenues, Expenditures and Changes in Fund Balances ........................ ..............34
Reconciliation of the Governmental Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government-Wide
Statement of Activities and Changes in Net Assets .................................................. ..............36
Proprietary Fund Financial Statements:
Statement of Net Assets ....................................................................................................... ..............38
Statement of Revenues, Expenses and Changes in Net Assets ...................................... ..............39
Statement of Cash Flows ...................................................................................................... ..............40
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets ..................................................................................... ..............42
Notes to Basic Financial Statements ............................................................................................................43
~ ~s
City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2011
Table of Contents, Continued
Page
Required Supplementary Information:
Budgetary Information.......~ ::................................................................................ ..........................................98
Budgetary Comparison Schedules:
General Fund .................................................................................................... ..........................................99
Sundry Grants Special Revenue Fund .....................:.................................... ..........................................100
Redevelopment Agency Special Revenue Fund ......................................... ..........................................101
Schedules of Funding Progress:
PERS .................................................................................................................. ..........................................102
Other Postemployment Benefits .................................................................... ..........................................102
Supplementary Information:
Non-Major Governmental Funds
Combining Balance Sheet ............................................................................................. ............................108
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances ..................................................................................................... ............................114
Statement of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual Schedules:
Redevelopment Agency Debt Service Fund ....................................................... ............................119
City Debt Service Fund ............................................................:............................. ............................120
Transportation Grants Special Revenue Fund .................................................... ............................121
Pazking Meter Special Revenue Fund .................................................................. ............................122
Traffic Safety Special Revenue Fund ....................................::.............................. ............................123
Town Centre I Special Revenue Fund .................................................................. ............................124
Open Space Districts Special Revenue Fund ...................................................... ............................125
Housing Programs Special Revenue Fund .......................................................... ............................126
Traffic Signals Special Revenue Fund .................................................................. ............................127
Transportation Sales Tax Special Revenue Fund ............................................... ............................128
Storm Drain Special Revenue Fund ..................................................................... ............................129
Housing Authority Special Revenue Fund ......................................................... ............................130
Public Financing Authority Debt Service Fund .................................................. ............................131
1994 POB Debt Service Fund ................................................................................ .............................132
Notes Payable Debt Service Fund ....................................................................... .............................133
Lease Payable Debt Service Fund ........................................................................ .............................134
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City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2011 -
Table of Contents, Continued
Pace
Supplementary Information, Continued:
Non-major Enterprise Funds:
Combining Statement of Net Assets .......................................................................................................136
Combining Statement of Activities and Changes in Net Assets .........................................................137
Combining Statement of Cash Flows .....................................................................................................138
Internal Service Funds
Combining Statement of Net Assets .......................................................................................................140
Combining Statement of Activities and Changes in Net Assets .........................................................141
Combining Statement of Cash Flows .....................................................................................................142
Fiduciary Funds:
Statement of Changes in Assets and Liabilities .....................................................................................144
STATISTICAL SECTION
Table of Contents ....................................................................................................................................................145
Financial Trends
Net Assets by Component -Last Nine Fiscal Years ..........................:........................................................146
Changes in Net Assets -Last Nine Fiscal Years ..........................................................................................147
Fund Balances of Governmental Funds -Last Nine Fiscal Years .............................................................148
Changes in Fund Balance of Governmental Fund -Last Nine Fiscal Years ...........................................149
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property -Last Ten Fiscal Yeazs ..................150
Direct and Overlapping Property Tax Rates -Last Ten Fiscal Year .........................................................151
Principal Property Taxpayers -Current and Nine Years Ago ..................................................................152
Property Tax Levies and Collections -Last Ten Fiscal Years ....................................................................153
Debt Capacity
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ....................................................................154
Ratios of General Bonded Debt Outstanding -Last Ten Fiscal Yeazs ......................................................155
Direct and Overlapping Debt .........................................................................................................................156
Legal Debt Margin -Last Ten Fiscal Years ..................................................................................................158
Pledged-Revenue Coverage -Last Ten Fiscal Years ....................:.............................................................160
111$
City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2011
Table of Contents, Continued
STATISTICAL SECTION, Continued
Demographic and Economic Information
Pace
Demographic and Economic Statistics -Last Ten Calendar Years ...........................................................162
Principal Employers -Current and Nine Yeazs Ago ..................................................................................164
Operating Information:
Full-Time and Part-Time City Employees by Function -Last Ten Fiscal Years .....................................165
Operating Indicators by Function -Last Ten Fiscal Years .........................................................................166
Capital Assets Statistics by Function -Last Ten Fiscal Years ....................................................................168
Independent Auditors' Report on Internal Control Over Financial Reporting
And On Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .....................................171
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CRY OF
CHULAVISTA
Finance Department
December 28, 2011
To the Honorable Mayor, Members of the City Council
And Citizens of the City of Chula Vista, California
The Annual Financial Report (the Report) of the City of Chula Vista for the fiscal year ended
June 30, 2011 is hereby submitted in accordance with City Charter section 1017 and section
25253 of the Government Code of the State of Califomia.
Purpose and Management Responsibility. This report consists of management's
representations concerning the finances of the City of Chula Vista (City). Consequently,
management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the government's assets from loss, theft or misuse
and to compile sufficient reliable information for the preparation of the City's financial statements
in conformity with U.S. generally accepted accounting principles (GAAP).
Because the cost of internal controls should not outweigh their benefits, the City's
comprehensive framework of internal controls has been designed to provide reasonable rather
than absolute assurance that the financial statements will be free from material misstatement.
As management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
Audited Financial Statements. The City's financial statements have been audited by Caporicci
and Larson, a firm of licensed certified public accountants. The goal of the independent audit
was to provide reasonable assurance that the financial statements of the City for the fiscal year
ended June 30, 2011 are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the overall accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unqualified opinion ("clean") that the City's financial statements for the fiscal year
ended June 30, 2011, are fairly presented in conformity with GAAP. The independent auditors'
report is presented as the first component of the financial section of this report. The
professionalism and knowledge exhibited by Caporicci and Larson during their audit work is
greatly appreciated.
Organization. This report is presented in three sections: introductory, financial and statistical.
276 Fourth Avenue, Chula Vista, CA 91910 www.cReaaflavnstaca.gov (619) 691-5250 ~ fax (619) 585-5685
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1. The Introductory section includes this transmittal memorandum and other information to
familiarize the reader with the City: a directory of officials and the City's organization chart.
2. The Financial section consists of five parts: the independent auditors' report; management's
discussion and analysis; the basic financial statements; required supplementary information;
non-major governmental funds and agency funds.
3. Lastly, the Statistical section includes selected financial and demographic information,
generally presented on a multi-year basis.
GAAP require that management provide a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). As noted above, the MD&A appears in the Financial Section. This letter of transmittal
is designed to complement MD&A and should be read in conjunction with it.
Single Audit for Federal Grant Programs
The independent audit of the financial statements of the City was part of a broader, federally
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not
only on the fair presentation of the financial statements, but also on the audited government's
internal controls and compliance with legal requirements, with special emphasis on internal
controls and legal requirements involving the administration of federal awards. This separately
prepared report is available from the Finance Department upon request.
GOVERNMENT
Chula Vista was incorporated in 1911, and functions under a City Charter with a
Council/Manager form of government. The City is governed by a four member Council and a
Mayor, who serve four year overlapping terms, and in addition to the City Attorney are elected
on a citywide basis. The City Council appoints the City Manager and the City Clerk. Municipal
services provided include police, fire, parks, recreation, libraries, planning & building, housing
programs, street and drainage construction & maintenance, sewer services, etc.
THE REPORTING ENTITY
(Activities included in the Report)
The Report includes all activities carried out by the City as a legal entity, and also includes the
activities of certain other entities for which the City Council is financially accountable as
determined under the guidelines of the Governmental Accounting Standards Board. Although
legally separate entities, these so called "component units" are under the City's umbrella of
accountability, and therefore, their financial position and results of operations are reflected in the
Report.
The component units included in the Report are:
The Redevelopment Agency of the City of Chula Vista
The Chula Vista Industrial Development Authority
The Chula Vista Public Financing Authority
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ACCOUNTING SYSTEMS AND BUDGETARY CONTROL
The basic financial statements are presented on an "economic resources" measurement focus
and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including
capital assets as well as infrastructure assets and long-term liabilities, are included in the
accompanying Statement of Net Assets. The Statement of Activities presents changes in net
assets.
Under the accrual basis of accounting, revenues are recognized in the period in which they are
earned while expenses are recognized in the period in which the liability is incurred. All
governmental funds are accounted for on a spending or "current financial resources"
measurement focus and the modified accrual basis of accounting. Accordingly, only current
assets and current liabilities are included on the balance sheet. The Statement of Revenues,
Expenditures and Changes in Fund Balances present increases (revenue and other financing
sources) and decreases (expenditures and other financing uses) in net current assets. Under
the modified accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the current
period.
In administering the City's accounting systems, primary consideration is given to the adequacy
of internal accounting controls, which include an array of administrative procedures. These
controls are designed to provide reasonable, but not absolute, assurance regarding the
safeguarding of assets against loss from unauthorized use or disposition, as well as the
reliability of financial records for accurate and fair presentation of financial reports. The concept
of reasonable assurance recognizes that the cost of specific controls should not exceed the
benefits likely to be derived from exercising the controls, and that this evaluation necessarily
involves estimates and judgments by management. It is believed that the City's internal
accounting controls adequately safeguard City assets and provide reasonable assurance of
proper recording of financial transactions.
The City Charter assigns the Director of Finance with the responsibility to supervise and be
responsible for the disbursement of all monies and have control over all expenditures to ensure
that budget appropriations are not exceeded. The level of budgetary.control, that is, the level at
which expenditures are not to exceed Council approved appropriations, is established by
department at the category level. An encumbrance (commitment) accounting system is utilized
as a technique to enhance budgetary control during the year. Appropriations encumbered
(committed) at year end are carried forward if authorized and are available to be used for those
commitments during the subsequent year while unspent, unencumbered appropriations lapse at
year end and become generally available for re-appropriation the following year.
The City Council adopts the formal budget before the beginning of each fiscal year and may
amend it throughout the year as necessary. Expenditures may not exceed budgeted figures at
the department level. Financial status reports summarizing the year to date General Fund
revenues and expenditures are presented to the City Council on a quarterly basis.
LOCAL ECONOMY AND PROSPECTS FOR THE FUTURE
The City of Chula Vista, incorporated in 1911, is a city of great diversity, both geographically
and demographically. It is a community of many choices and opportunities. The City of Chula
Vista is located eight miles south of the City of San Diego and seven miles north of the Mexico
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border. Chula Vista's city limits cover approximately 50 square miles, which spans from the
beautiful shoreline of San Diego Bay to the breathtaking mountain views in the eastern section
of the city. Chula Vista residents enjoy all the benefits of a major city along with small town
friendliness, affordable housing and near perfect weather. The most recent data available from
the San Diego Association of Governments (SANDAG) estimates that the median income in
Chula Vista is $66,955.
The City of Chula Vista, with a population of approximately 246,496, is the second largest
community in San Diego County. SANDAG projects that the City of Chula Vista will reach a
population of approximately 316,467 by the year 2040. The California State Department of
Finance reports that from 2010 to 2011 the City added 2,493 new residents reflecting a 0.90
percent rate of growth. SANDAG's 2030 Growth Forecast indicates that the South County sub
region will continue to host a substantial amount of the region's projected growth over the next
20 years, primarily through new development in the eastern portion of the City.
The number of residential units built hit an all time high during calendar years 1999-2004. Due
to the significant slow down in the housing market, those numbers have dramatically dropped
beginning in 2005. The following graph shows the actual number of housing units completed
during the last 10 fiscal years.
Residential Building Units
Fiscal Years 2002 to 2011
a,aoo
3,500
3,000
2,500
2,000
1,500
1,000
500
^ Single Family "- Multi-Family
Property Taxes:
Under State law since 1979, property taxes for general government purposes are limited to one
percent of the market value of the property assessed. Property tax is the City's second largest
revenue source, representing 19.2 percent of the General Fund revenue in fiscal year 2011.
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Property Tax Revenue
Fiscal Years 2002 to 2011
(in millions)
$32
~z6
$za
gzo
$1s
$1z
$a
$a
go
The chart illustrates the significant increases in property tax revenue the City has received as a
result of the rapid development in the east. Property tax revenue has more than doubled over
the ten-year period. This increase in property tax revenue is of course driven by like increases
in the assessed values in the City. The City's assessed values have grown at historical rates
until recently with the largest percentage increase of 20 percent occurring in fiscal year 2006.
Based on the most recent County Assessor Annual Valuation Report, the assessed values in
Chula Vista have increased by 0.51 percent for fiscal year 2011-12. The City is anticipating that
property tax revenues will be flat in the near term due to a number of factors such as the drop in
housing prices, foreclosures and Proposition 8 reassessments. However the City does expect
development to return at moderate levels at some point in the future.
Assessed Values
Fiscal Years 2003 to 2012 '
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sales Taxes
The City receives 1 percent in sales and use tax revenue from all taxable retail sales occurring
within City limits. The current sales and use tax rate in the City is 7.75 percent. The tax rate is
composed of the State's 6.5 percent component, the City's one percent and 0.25 percent
designated for regional transportation projects. Sales and use tax revenue is the City's largest
General Fund revenue source. In fiscal year 2011, sales taxes represented 20.7 percent of total
General Fund revenues.
Sales Tax Revenues
Fiscal Years 2002 to 2011
(in millions)
$30
$25
$20
$15
$10
$5
$0
The growth in retail operators has made significant contributions to Chula Vista's sales tax base.
Over the ten-year period 2002-2011, Chula Vista's sales tax revenues have grown
approximately 42 percent (in current dollars) since 2002. Despite the Great Recession's effects
the City's sales tax revenues have increased by 12.6 percent from the previous year which has
to do more with the timing of the sales tax accruals. Over the last three year period the growth
was at 4.3%.
Lono-Term Financial Plannin
As previously discussed the City experienced significant economic hardships. Long-term, the
City is in a position to benefit from a vibrant and growing San Diego area economy. The City
considers it essential to fund its financial reserves at a level that can endure a limited economic
recession without impacting service levels and capital maintenance programs. The Council's
General Fund minimum reserve level policy of 8 percent, which became effective in 1996, was
established to prudently protect the fiscal solvency of the City. Reserves are important in order
to mitigate the negative impact on revenues from economic fluctuations, to withstand State
budget grabs and to fund unforeseen expenditure requirements.
However, the prolonged recession has impacted the City's development revenues, sales tax
and property taxes significantly. The City took immediate action by implementing a hiring freeze
and across the board cuts and by doing so was able to mitigate any impacts to General Fund
reserves. As a result the City's General Fund reserve increased from 7.3 percent to 9.2 percent
as of June 30, 2011 due to a combination of expenditure savings and loan repayments from the
City's Redevelopment Agency.
On November 5, 2009, the City Council approved a revised General Fund reserve policy. This
new policy increases the desired reserve level to a minimum of 23 percent of General Fund
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
operating expenditures and is composed of the following three components:
General Fund Operating Reserve (15 %). The operating reserve will ensure that the City's
finances are managed in a manner which will (1) continue to provide for the delivery of
quality services, (2) maintain and enhance service delivery as the community grows in
accordance with the General Plan, (3) minimize or eliminate the need to raise taxes and
fees because of temporary revenue shortfalls, and (4) establish the reserves necessary to
meet known and unknown future obligations and ability to respond to unexpected
opportunities.
2. Economic Contingency Reserve (5%). The economic contingency reserve represents
monies set aside to mitigate service impacts during a significant downturn in the economy
which impacts City revenues such as sales tax, property tax, business license tax and other
revenues.
3. Catastrophic Event Reserves (3%). This reserve will set aside funds for unanticipated
expenditures related to a major natural disaster in the City.
The new General Fund Reserve policy of 23 percent is a long-term goal to be achieved within
the next ten years.
During fiscal year 2011, the Finance Department updated the General Fund Five Year Financial
Forecast to assess the General Fund's ability over the next five years to continue current
service levels based on anticipated growth. The forecast anticipated minimal to no growth for
the next five years and identified a structural imbalance that resulted in budgetary cuts citywide.
The Finance Department will continue to update the five-year forecast, as projections are
refined. This forecast will serve as the foundation for the City's Long Term Financial Plan,
which is in process. The Government Finance Officers Association (GFOA) recognizes the
importance of combining the forecasting of revenues and expenditures into a single financial
forecast. The GFOA also recommends that a government should have a financial planning
process that assesses long-term financial implications of current and proposed policies,
programs, and assumptions that develop appropriate strategies to achieve its goals.
CASH MANAGEMENT POLICIES
In order to maximize investment leverage, it is the City's practice to "pool" available cash from
all Funds for investment purposes. In accordance with the adopted investment policy, available
cash is invested with the goal of safety, meaning protection of principal, as the first priority,
ensuring adequate liquidity as the second priority, and maximizing yield as the third priority.
The average yield on the pooled investment portfolio during the fiscal year ending June 30,
2011 was 1.53 percent, a decrease from the prior year yield of 1.63 percent due to a decreasing,
interest rate environment.
RISK MANAGEMENT
The City is self-insured for the first $500,000 per occurrence for its general liability losses
including personal injury, property damage, errors and omission, automobile liability and
employment practices liability. For those losses between $500,000 and $2,000,000 per
occurrence, the City pools its liabilities through its membership in the San Diego Pooled
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Insurance Program Authority (SANDPIPA). Insurance for losses in excess of the $2,000,000 up
to $45,000,000 is purchased on a group basis by the member cities.
SANDPIPA is a joint powers authdrity comprised of twelve San Diego County cities. The Board
of Directors consists of one staff representative (and an alternative) from each of the member
cities as designated by the city's governing body. Each member city has equal representation
on the Board of Directors. The Board of Directors is liable for all actions of SANDPIPA.
The City is self-insured for the first $1.0 million per occurrence for worker's compensation
liabilities. Excess workers' compensation coverage is obtained through participation in the
CSAC Excess Insurance Authority's Excess Workers' Compensation Program. As of June 30,
2011, there is 160-member entities participating in the program that offers per occurrence
coverage up to $5.0 million through pooled resources and from $5.0 million to statutory limits via
group purchased excess insurance policies.
The probable amounts of loss as estimated by the City's Risk Manager and Attorney, including
an estimate of incurred-but-not reported losses, have been recorded as liabilities in the basic
financial statements. There were no reductions in insurance coverage from the prior year and
there were no insurance settlements, which exceeded coverage in each of the past three years.
Additional information on the City's risk management. activity can be found under note
disclosure 10 to the financial statements.
FINANCIAL HIGHLIGHTS
The following presents supplemental information to the MD&A. Since fiscal year 2007, the City
of Chula Vista's revenue base has been significantly reduced. The prolonged economic
recession has impacted the City's major revenue sources -Property Tax, Sales Tax, and Motor
Vehicle License Fees. During this time, the City Council has been proactive in addressing the
financial issues facing the City -they have approved several budget balancing plans in an effort
to keep expenditures in line with revenues. During fiscal year 2010-11 the City's revenues have
shown a slight increase in its discretionary revenue base from the previous fiscal year.
In the development of the fiscal year 2010-11 budget, the City Manager recommended, and the
Council approved, closing the deficit through the application of one time revenues in order to
avoid additional service level impacts and employee layoffs. The use of one-time revenues
affords the City the opportunity to continue to monitor economic trends and come forward in the
future with adjustments based on additional months of economic data. While these solutions
resulted in a balanced budget and minimal service impacts, they did not resolve the underlying
structural problem.
In order to mitigate the structural deficit, the City implemented a reduction plan which involved
negotiating with the various bargaining groups. The reduction plan included a combination of
layoffs and service level reductions. With the combined leadership of the bargaining groups and
the City, successful negotiations were completed with all bargaining groups agreeing to
contribute their full share of employee pension cost and deferral or elimination of scheduled
raises.
The implementation of the employee pension contributions varies by bargaining group. The
City's non-represented employees -City Council, Executives, Senior Managers, Confidential
and non-represented Mid Managers/Professionals, now contribute 8% of their salaries towards
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their pension costs. For non-represented Safety employees the contribution rate is 9%. CVEA
and POA employee contributions towards pension costs will be phased in until the full employee
contribution is achieved. All other bargaining groups and non-represented employees will pay
their respective portions of retirement costs 8% (miscellaneous) and 9% (safety) in fiscal year
2011-12. The achievement of pension reform is part of a long-term strategy for creating a
sustainable, balanced budget.
In addition to the employees paying their share of pension costs, the City was able to implement
a two tier system for all new hires that began on April 22, 2011. The new benefit formula is 2%
at 60 for non-Public Safety members and 3% at 55 formula for Public Safety members. The
benefit has been reduced from 3% at 60 for non-Public Safety members and 3% at 50 for Public
Safety members.
The City was also able to negotiate eliminating the retiree health benefit for employees hired
under the new tier. The City has never directly paid for the health care premiums of City
retirees. However, the City was subsidizing the health insurance premiums for retirees by
allowing them to purchase the health insurance at the same rates paid by active employees.
This rate subsidy created an OPEB liability for the City that will now eventually be eliminated as
the retirees' age and become eligible for the Federal Medicare program at age 65.
AWARD
The Government Finance Officers' Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chula
Vista for its comprehensive annual financial report for the fiscal year ended June 30, 2010. In
order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year cnly. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
ACKNOWLEDGMENTS
Preparation of the Report and more importantly, maintaining the City's accounting records in a
manner sufficient to earn the aforementioned auditors opinion is only accomplished with the
continuous concerted effort of each and every staff member in the Finance Department. As
such, I express my sincere appreciation for their dedicated service. I would also like to thank
the City Council for their continued support in achieving excellence in financial management.
Respectfully submitted, '~^~
James Sandoval
City Manager
W ir-f .
Maria Kachadoorian, CPA, MPA
Director of Finance/Treasurer
1 ~h$
City of Chula Vista
List of City Officials
June 30, 2011
city c
Cheryl Cox
Rudy Ramirez
Pamela Bensoussan
Steve Castaneda
.Patricia Aguilar
ouncil
Mayor
Deputy Mayor
Councilmember
Councilmember
Councilmember
Administration
James Sandoval City Manager
Gary Halbert Assistant City Manager
Scott Tulloch Assistant City Manager
Glen Goggins City Attorney
Donna Norris City Clerk
Department Heads
Kelley Bacon Director of Human Resources & Information
Technology Services
David Bejarano Chief of Police
Gary Halbert Director of Development Services
Dave Hanneman
Richard Hopkins
Maria Kachadoorian
.Margaret Kazmer
Buck Martin
Michael Meacham
Fire Chief
Director of Public Works
Director of Finance/Treasurer
Director of Library
Director of Recreation
Director of Economic Development
1-"f°9
~~1 ~~
~r
CIlY OF
CHULA, VISTA
ORGANIZATION CHART
Citizen Advisory ' - Citizen Advisory
Commissions Boards
Assistant City
Manager
Deputy City-
Manager.
Police Human Library Planning &
Resources Building
Fire Information & Recreation Development
Technology Svcs Services
Administration Finance Animal Care Redevelopment
Facility Agency
Public Works Housing
Authority
~-20
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chula Vista
California
For its Comprehensive Annual
Financial Report
for the Fiscal Yeaz Ended
Tune 30, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the lighest
standazds in government accounting
and financial reporting.
~:ti.c..
President
Executive Director
1-21
C&L
Caporicci & Lazson, Inc.
A Subsidiary of Marcum LLP
Certified Pubdic Accountants
INDEPENDENT AUDTTORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Chula Vista
Chula Vista, California
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Chula
Vista, California (the "City"), as of and for the year ended June 30, 2011, which collectively comprise the
City's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate under the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City as of June 30, 2011, and the respective changes
in financial position and cash flows, where applicable, thereof for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
As explained further in Note 16 to the basic financial statements, the California State Legislature has
enacted legislation that is intended to provide for the dissolution of redevelopment agencies in the State
of California. The effects of this legislation are uncertain pending the result of certain lawsuits that have
been initiated to challenge the constitutionality of this legislation.
The City adopted the provisions of Governmental Accounting Standards Board ("GABS") Statement No.
54, Fund Balance Reporting and Governmental Fund Type Definitions, as of Julyl, 2010.
In accordance with Government Auditing Standards, we have also issued our report dated December 28,
2011, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
arn~.c-Icpu.com
1-22
To the Honorable Mayor and Members of the City Council
of the City of Chula Vista
Chula Vista, California
Page Two
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and budgetary comparison information be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's financial statements as a whole. The introductory section, combining and
individual nonmajor fund financial statements, and statistical section, are presented for purposes of
additional analysis and are not a required pazt of the financial statements. The combining and
individual nonmajor fund financial statements are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepaze the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including compazing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole. The introductory
and statistical sections have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
Caporicci & Lazson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 28, 2011
1-~3
CITY OF CHULA VISTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Chula Vista, we are presenting the readers of this anriual
financial report a narrative overview and analysis of the financial activities of the City of
Chula Vista for the fiscal year ended June 30, 2011. We encourage the readers of this
document to consider the information presented here in conjunction with additional
information furnished in the letter of transmittal found in the introductory section of this
annual report.
FINANCIAL HIGHLIGHTS
The following outlines financial highlights for the year:
1. The assets of the City exceeded its liabilities at June 30, 2011 by $981.1 million (net
assets). Of this amount, $152.9 million was reported as "unrestricted net assets"
and may be used to meet the government's ongoing obligations to citizens and
creditors.
2. Total unrestricted net assets are $4.6 million higher than last fiscal year, an increase
of 3.1%.
3. The City's total net assets decreased by $3.2 million in fiscal year 2011. Net assets
of governmental activities decreased by $3.2 million, while net assets of the
business type activities decreased by $5,278.
4. The City's governmental funds reported combined ending fund balances of $125..6
million, an increase of $0.9 million.
5. Total citywide liabilities increased by $0.4 million. Liabilities for governmental
activities increased by $0.8 million and decreased by $0.4 million for business-type
activities.
6. The City's total long-term debt obligations had a net decrease of $7.8 million or -
3.9% during fiscal year 2011. The decrease is composed entirely of principal
reductions.
7. The unassigned fund. balance of the General Fund on June 30, 2011 was $11.9
million or 9.3 percent of fiscal year 2010-11 General Fund expenditures (excluding
other financing uses).
8. During this fiscal year the City began to record deferred revenue for collections of
the City's Utility User Tax that is related to wireless telecommunications. Deferral of
this revenue results in a $3.0 million reduction in UUT revenues recognized in fiscal
year 2010-11. Recognizing this revenue in the future will be contingent upon the
outcome of lawsuits related to the Utility User Tax.
1-24
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements are comprised of three
components: 1)government-wide financial statements, 2) fund financial statements, and
3) notes to the financial statements.
This report also contains required supplementary information (RSI) as well as other
supplemental financial information.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City's finances, in a manner similar to private-sector business. They are
comprised of the Statement of Net Assets and Statement of Activities.
The Statement of Net Assets presents information on all of the City's assets and
liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City is improving or deteriorating. This statement combines and
consolidates governmental funds current financial resources with capital assets and
long-term obligations.
The Statement of Activities and Changes in Net Assets presents information showing
how the government's net assets changed during the fiscal year. All changes in net
assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of the related cash flows: Thus revenues and expenses are
reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the above financial statements have separate sections for three different types
of programs or activities. These three types of activities are:
Governmental Activities -The activities in this section are mostly supported by taxes
and charges for services. The governmental activities of the City include General
Government, Public Safety, Public Works, Parks and Recreation and Library.
Business-Type Activities -These functions normally are intended to recover all or a
significant portion of their costs through user fees and charges to external users of
goods and services. Ttie business-type activities of the City include the Sewer Funds
and Transit Operations.
Discretely Presented Component Units -The City of Chula Vista has no discretely
presented component.units to report upon.
1-2~i
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives: The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements. All of the funds of the City can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds.
The fund financial statements provide detailed information about each of the City's most
significant funds, called Major Funds. The concept of Major Funds, and the
determination of which are major funds, was established by GASB Statement 34 and
replaces the concept of combining like funds and presenting them in total. Instead,
each Major Fund is presented individually, with all Non-major Funds summarized and
presented in a single column.
Governmental Funds -Governmental funds are used to account for essentially the
same functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources. available at the end of the
fiscal year. Such information may be useful in evaluating a government's near-term
financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-
wide financial statements. By doing so, readers may better understand the long-term
impact of the government's near-term financing decisions. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities. These reconciliations are presented
on the page immediately following each governmental fund financial statement.
The City has thirty-two governmental funds, of which seven are considered major funds
for presentation purposes. Each major fund is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances. Information for the City's remaining
governmental funds are combined into a single, aggregated"other governmental funds"
column. Individual fund data for each of these non-major governmental funds is
provided in the supplementary information portion of the report.
Proprietary Funds -The City maintains two different types of proprietary funds -
enterprise funds and internal- service funds. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial
statements. The City uses an enterprise fund to account for its Sewer and Transit
1-~6
activities. Internal service funds are used to accumulate and allocate costs internally
among the City's various functions. The City uses internal service funds to account for
its fleet of vehicles and its information systems and equipment replacement program.
Because these services predominantly benefit governmental rather than business-type
functions, they have been included within governmental activities in the governmental-
wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. Like the government-wide financial statements,
proprietary fund financial statements use the accrual basis of accounting. There is no
reconciliation needed between the government-wide financial statements for business-
type activities and the proprietary fund financial statements.
Fiduciary Funds -Fiduciary funds are used to account for resources held for the
benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are not
available to support the City's own programs.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information providing a budgetary comparison
statement for the general fund and sewer fund.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City of Chula Vista, combined net assets
(government and business type activities) totaled $981.1 million at the close of the fiscal
year ending June 30, 2011. This is a decrease of $3.2 million when compared to the
prior year. All of the decrease occurred in the City's governmental funds. On the
following page is a summary schedule showing the components that make up the City's
net assets at June 30, 2011 and 2010.
1-g7
City of Chula Vista
Net Assets
Fiscal Year Ending June 30
Current Assets $ 155,963,987 $ 146,473,278 8 ti/,2Db,LB/ a o<,voo,oru a c<a,n n,cov a c~o,o<o,ioo
Non-Cunent Assets 52,847,925. 56,999,497 14,066,534 13,841,666 66,908,459 70,841,163
r~~a~i a«or~ ` A09.473.731 817.228.049 146,550,585 152,384,420 956,024,316 969,612,469
Current Liabilities 42,016,104 36,924,808 - 916,773 1,511,585 42,932,877 38,436,393
Non-Cunent Liabilities 221,954,722 226,288,362 190,850 - 222,145,572 226,288,362
Net Assets
Invested in Capital Assets,
Net of Related Debt 634,409,385 634,377,842 146,550,585 152,384,420 780,959,970 786,762,262
Restricted 47,168,636 49,193,256 - - 47,168,636 49,193,256
1lnresincted 72,730,796 73,916,496 80,214,208 74,385,651 152,945,004 148,302,147
As the table shows, an amount of $781.0 million is reported as invested in capital assets
(e.g. land, streets, sewers, buildings, improvements, equipment and work in progress),
less any related debt used to acquire those assets that are still outstanding. The City
uses these capital assets to provide services to citizens; consequently, these assets are
not available for future spending. Although the City's investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
Additional portions of the City's net assets are restricted ($47.2 million or 4.8°/0) and
represent resources that are subject to external restrictions on how they may be used.
The remaining balance of unrestricted net assets of $152.9 million may be used to meet
the government's ongoing obligations to citizens and creditors.
At the end of fiscal year the City was able to report overall positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate
governmental and business-type activities.
1-28
Changes in Net Assets
The statement of net assets provides a snapshot at a given point in time of the assets
and liabilities of the City. The other citywide statement provided is the Statement of
Activities. This statement provides the reader with information regarding the revenues,
expenses and changes in net assets over the fiscal year. Generally, all changes to the
City's net assets from.- one fiscal year to the next flow through the Statement of
Activities. The City's net assets have decreased by $3.2 million or -0.3%, from the prior
fiscal year. The government activities account for all of the decrease in total net assets.
City of Chula Vista
Summary of Changes in Net Assets
Fiscal Year Ending June 30
2011
Program Revenues:
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
General Revenues:
Property Taxes
Sales Taxes
Franchise Taxes
Utility User Taxes
Business License Taxes
Transient Occupancy Taxes
Property Transfer Taxes
Construction Taxes
Investment Earnings
Miscellaneous
Total Revenues
Expenses
General Government
Public Safety
Public Works
Parks and Recreation
Library
Interest on Long-Tenn Debt
Sewer Funds
Non-Major Enterprise Funds
Total Expenses
Increase/(Decrease)in
Net Assets Before Transfers
Transfers
75,720,603 73,079,200 $ 35,235,240 $ 39,785,718 $ 110,955,843 $ 112,864,918
31,976,818 17,984,120 3,431,988 3,357,566 35,408,806. 21,341,686
4,781,625 23,711,994 4,781,625 23,711,994
39,437,025 41,798,577 39,437,025 41,798,577
26,702,443 23,674,601 26,702,443 23,674,601
8,260,411 8,465,199 8,260,411 8,465,199
4,943,679 9,059,302 4,943,679 9,059,302
1,085,247 1,177,539 1,085,247 1,177,539
2,058,878 2,036,377 2,058,878 2,036,377
777,016 893,116 _ 777,016 893,116
360,156 296,144 360,156 296,144
9,108,662 5,744,616 1,288,478 ~ 1,785,660 10,397,140 7,530,276
5,193,653 7,581,794 1,013,733 9,249,893 6,207,386 16,831,687
210,406,216 215,502,579 40,969,439 54,178,637 251,375,655 269,681,416
$ 46,457,112 $ 51,136,412 $ 46,457,112 51,136,412
75,664,246 74,008,767 75,664,246 74,008,767
71,857,158 69,524,903 71,857,158 69,524,903
6,995,489 7,849,907 6,995,489 7,849,907
4,509,999 4,826,602 4,509,999 4,826,602
11,538,707 11,217,753 11,538,7D7 11,217,753
30,245,584 29,240,616 30,245,584 29,240,616
7,291,415 7,792,719 7,291,415 7,792,719
217,022,711 218,564,344 37,536,999 37,033,335 254,559,710 255,597,679
(6,616,495) (3,061,765) 3,432,440 17,145,502 (3,184,055) 14,083,737
3,437,718 3,473,571 (3,437,718) (3,473,571) - -
Change in Assets (3,178,777) 417,806 (5,278) 13,671,931 (3,164,055) 14,083,737
Net Assets, Beginning of Year 757,487,594 757,075,788 226,770,071 213,098,140 964,257,665 970,173,928
Net Assets, End of Year $754,308,817 $757,487,594 $226,764,793 $226,770,071 $981,073,610 $984,257,665
Further analysis is provided within the governmental and business-type activity sections
below.
1-$L9
Governmental Activities
Governmental activities decreased the City's net assets by $3.2 million thereby
accounting for all of the City's decrease in net assets. The City received a total of
$112.5 million in Program Revenues for the year a decrease of $2.3 million from the
previous year. A comparison of the cost of services by function for the City's
governmental activities is shown in the table below, along with the program revenues
used to cover the net expenses of the governmental activities. A discussion of Program
Revenues follows.
Charges for Services had a net increase of $2.6 million for governmental activities when
compared to the previous year. Some of the more noteworthy changes in the charges
for services category include:
General Government had a net decrease of $2.6 million. The City's Utility User
Tax (UUT) Revenue was $4.1 million less when compared to last year. This is
due primarily to recording wireless telecommunications receipts (collected as part
of the City's Utility User Tax) as deferred revenue (a liability account). UUT
deferred revenue totaled $3.0 million for the year. Recognizing this revenue in
the future will be contingent upon the outcome of lawsuits related to the Utility
User Tax. Other changes affecting General Government revenues include
layoffs that occurred mid-year resulting in lower staff time reimbursements and a
drop in code enforcement violations of $0.5 million. Vehicle License Fee
revenues were down by $0.6 million due to lower assessed values in the City.
The CV Housing Authority received aone-time payment in fiscal year 2009-10 of
$2.0 million for an inclusionary housing obligation.
9
1-30
• Public Safety had a decrease of $0.8 million due to reduced staffing of
community service officers that resulted in loss of revenues in some public safety
programs most notably $59,000 for negligent vehicles, $60,000 for parking
citations, $191,000 in vehicle code violations, $53,000 for tow referrals. In
addition, there were fewer revenues for police reimbursements ($143,000) and
jail revenues from otherjurisdictions were down by $53,000.
• Public Works had an increase of $4.6 million due to increasing development.
Development related revenues were up for development fees ($1.6 million);
building permits"($0.4 million), traffic signal fees ($0.2 million) and transportation
development impact fee ($1.7 million).
Parks and Recreation had an increase of $1.0 million from the prior year due to
the collection of $1.1 million of park acquisition and development fees.
Operating Grants and Contributions for governmental activities showed an increase of
$14.0 million from the previous fiscal year. The material items that make up most of the
change are:
• General Government increased $4.5 million due to increases in grant
reimbursements from HUD that include HOME Partnership funds of $2.5 million,
CDBG Program Income of $1.3 million and CDBG entitlement funds of $0.2
million. The City also received increased American Recovery and Reinvestment
Act funds of $0.5 million.
• Public Safety increased by $0.4 million due to an increase in various law
enforcement grants that include; HIDTA $0.2 million, SLESF $0.1 million, Office
of Traffic Safety $0.1 million and American Recovery and Reinvestment Act
funds of $0.3 million.
• Public Works had an increase from the prior year of $8.9 million due to an
increase of transportation sales tax funding of $5.8 million, various energy
grants/loans of $2.2 million and American Recovery and Reinvestment Act funds
of $0.9 million.
Capital Grants and Contributions for governmental activities had a decrease of $18.9
million. The major components of this change are made up of:
The Public Works component accounts for $18.7 million of the decrease. The
City received $1.7 million less in transportation related grants that are considered
Capital Grants.
In addition there was no developer built contributions reported in fiscal year
2010-11 that makes up the rest of the $17.2 million decrease.
The City's general revenues as a whole decreased by $2.8 million due primarily to the
deferral of Utility User Tax revenue. During this fiscal year the City began to record
deferred revenue for collections of the City's Utility User Tax that is related to wireless
telecommunications. Deferral of this revenue results in a $3.0 million reduction in UUT
revenues recognized in fiscal year 2010-11. Recognizing this revenue in the future will
be contingent upon the outcome of lawsuits related to the Utility User Tax.
10
1-31
Total governmental activity type expenses were $217.0 million in fiscal year 2010-11.
The largest expenses were incurred for Public Safety, Public Works and General
Government. These three activities combined account for 89.4% of all general activity
expenses. These expenses do not include capital outlays, which are reflected in the
City's capital assets.
Govetnmehtal F~cpenses by Activity
Interest on
Public Works long-term debt
33% ~ r 5%
Generel
Government
Library ~._ 22%
2%
Parks and
Public Safety Recreation
35% 3%
Total program revenues from governmental activities were $112.5 million in fiscal year
2010-11. Per GASB 34, program revenues are derived directly from the program itself
or from parties outside the reporting government's taxpayers or citizenry. They reduce
the net cost of the function to be financed from the government's general revenues.
General revenues are all other revenues not categorized as program revenues such as
property taxes, sales taxes and investment earnings. Total general revenues from
governmental activities were $97.9 million in fiscal year 2010-11. The largest
percentage of general revenues received during the year for governmental activities
were taxes of $83.6 million, which included Property Taxes of $39.4 million and Sales
Taxes of $26.7 million.
Business Type Activities
Net assets for business-type activities were $226.8 million, a decrease of $5,278 from
the prior fiscal year. Overall expenses for the business-type activities showed a $0.5
million increase comprised of a $1.0 million increase for Sewer Fund activities and a
decrease of $0.5 million for Transit activities.
Total program revenues for business-type activities were $38.7 million that were for
sewer fees ($32.3 million) and bus fares ($2.5 million). The Metropolitan Transit
System, whom the City contracts with to provide transit service, provides a subsidy to
make the City whole and is considered an operating grant. Total expenses for the
1-3~2
business-type activities were $37.5 million and were for expenses related to Sewer
($30.2 million) and Transit Operations ($7.1 million).
FUND LEVEL FINANCIAL ANALYSIS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental Funds
The City uses governmental fund accounting to ensure compliance with budgetary
allocations and to maintain control over resources that are legally, or otherwise,
restricted for specific purposes. The following is a discussion of the individual "major"
funds as shown on the Balance Sheet for Governmental Funds in the basic financial
statements.
General Fund -The General fund is used to account for the general operations of the
City. It is used to account for all financial resources, except those required to be
accounted for in another fund. The General Fund is always reported as a "major fund".
For the fiscal year the General Fund reported $126.0 million in revenues and $127.8
million in expenditures, resulting in revenues under expenditures in the amount of $1.8
million. .After accounting for net other financing sources of $4.4 million, General Fund
fund equity increased by $2.6 million. Total fund balance at June 30, 2011 was $35.7
million, composed of $48.6 million in assets combined with $12.9 million in liabilities.
Total fund balance included $11.4 million of nonspendable or restricted fund balance,
which represents that portion of fund balance that is not available for appropriation.
Committed fund balance totaled $7.2 million. This portion of fund balance includes
amounts that can only be used for specific purposes pursuant to constraints imposed by
formal action of the City Council, and remains binding unless removed in the same
manner. Assigned fund balance, totaling $5.3 million represents that portion of a fund
balance that includes amounts that are constrained by the government's intent to be
used for specific purposes, but that are neither restricted nor committed. The City
Council has delegated its authority to assign fund balance amounts to the City's Director
of Finance. The final component of total fund balance is unassigned fund balance.
Totaling $11.9 million, this is the portion of fund balance that is available for
appropriation for any purpose. Unassigned fund balance represents 9.3% of total fiscal
year 2010-11 General Fund expenditures.
Sundry Grants Fund -The Sundry Grants fund is to account for miscellaneous grants
such as: Supplemental Law Enforcement Services, California Library Services Act,
Public Library Act, Asset Seizure, Local Law Enforcement Block Grants, federal library
grants, waste management and recycling, energy conservation, parks and recreation,
social service grants, Gayle McCandliss memorial cultural arts, federal assistance,
1-'~3
CDBG program income projects, HOME project, and Community Development Block
grants.
The Sundry Grants Fund had total revenues of $21.4 million and expenditures of $23.0
million,. resulting in revenues under expenditures in the amount of $(-1.6) million. After
accounting for net other financing uses. of $(-0.7) million, Sundry Grants Fund equity
decreased by $(-2.2) million for the fiscal year. Fund equity decreased due to the use of
Sundry Grants reserves that had been collected in previous years but not spent until
fiscal year 2010-11. Total fund balance at June 30, 2011 was $8.6 million composed of
nonspendable ($3.0 million) and restricted ($5.6 million) fund balances.
Redevelopment Agency Revenue Fund -This fund also known as the Low and
Moderate Income Housing Fund is used to account for the 20% set aside of
Redevelopment tax increment as required by California Redevelopment Law. For the
year, this fund received $2.8 million in Redevelopment tax increment. This combined
with other resources, made up mostly of investment and other interest earnings totaling
$89,390, providing total operating revenues of $2.9 million. Housing expenditure
activities totaled $0.6 million and were mostly for administrative costs. Financing uses
of $(-4.4) million combined with revenue and expenditure items resulted in a net
decrease to fund balance of $(-2.1) million for a year end fund balance total of $12.1
million. The $4.4 million of financing uses was used to acquire property and to pay city
overhead charges.
Redevelopment Agency Debt Service Fund -This fund was established to account
for tax levies, other revenues and payments of principal and interest on Redevelopment
Agency loans and outstanding borids. Revenues totaled $96,717, composed of mainly
investment and other interest earnings. Expenditures totaled $3.9 million made up of
principal ($1.1 million) and interest payments ($2.1 million) on bonded debt, interest
accruals on interfund loans of $678,138, and trustee expenditures of $10,495. Net
transfers for this fund totaled a positive $14.9 millioh for the year. The transfers
received were for loan repayments to the General Fund ($12.1 million) and
Bayfront/Town Center l project area ($468,971), and principal and interest payments on
bonded debt ($3.1 million). There was a transfer to the Agency of $856,613 as a loan
from the Low and Moderate Income Housing Fund for the FY2010-11 SERAF payment.
The fund balance increased by $11.1 million from $(-29.8) million to $(-18.8)- million.
Fund balance is comprised of $3.6 million (bond reserve funds) of assets and $22.4
million in liabilities. The liability amount is for principal and accrued interest on interfund
loans to the General Fund ($12.6 million), Low and Moderate Income Housing fund
($5.0 million) and between redevelopment operating funds ($4.7 million). Management
anticipates that these interfund loans will be repaid over time with future tax increment
revenues.
City Debt Service Fund -This fund was established to account for the principal and
interest payments on the City's interfund debt. At June 30, 2011, this fund had a fund
13
1-34
balance of $(-36.6) million. The unassigned fund balance increased by $10.2 million
due to a Park Acquisition Development fund loan of $9.6 million for the acquisition of the
KOA property and the accrual of interest ($0.9 million) on interfund loan principal.
balances.
Development Impact Fund -This fund was established as a depository for various
development impact fees. The fees are levied against all new development in the City
in order to pay for the construction or improvement of public facilities as a result of City
growth.
Total revenues far this fund totaled $7.3 million with $7.1 million attributable to building
permit fees for new development and the remaining amount for investment and interest
earnings. Expenditures totaled $2.5 million comprised of mostly activity in the
Transportation DIF in which $1.8 million was spent to widen Otay Lakes Road and the
remaining $0.4 million for other transportation planning and traffic calming projects.
Total fund equity increased by $4.8 million for the year. At June 30, 2011 this fund had
a fund balance totaling $40.2 million, comprised of $42.8 million in assets, mostly cash
($30.8 million) and Advances to Other Funds ($11.3 million) and $2.6 million in liabilities
of which $2.3 million is for deferred revenue. Deferred revenue accounts for the
prepayment of development impact fees before the actual building permit has been
applied for. Revenue will be recognized once the permit application has been granted.
Park Acquisition Development -This fund was established as a depository for fees
collected from developers for the purpose of providing park and recreational facilities
directly benefiting and serving residents of the regulated subdivision. This in-lieu fee
was adopted by the City to acquire neighborhood and community parkland and to
construct parks and recreational facilities.
Total revenues for this fund totaled $1.3 million with $1.1 million attributable to building
permit fees for new development and the remaining amount for investment and interest
earnings. Expenditures totaled $10.8 million comprised of the purchase of land from the
City's Redevelopment Agency for an appraised value of $9.6 million and $1.2 million in
capital expenditures. The capital improvements were for All Seasons Park ($1.0
million), San Miguel Ranch Community Park ($118,355), Sunset View Park Roller Rink
($46,167) and Otay Ranch Community Park ($30,942). Total fund equity increased by
$99,082 for the year. At June 30, 2011 this fund had a fund balance totaling $31.7
million, comprised of $31.9 million in assets, mostly cash ($22.1 million) and Advances
to Other Funds ($9.7 million) and $175,556 in liabilities.
Proprietary Funds
The City's Sewer Fund is reported as a "major" fund on the Statement of Net Assets for
Proprietary Funds in the basic financial statements.
14
1-35
Sewer Fund- The Sewer fund is used to account for all activities related to providing
sewer service to the residents of Chula Vista. Resources for the fund come primarily
from sewer service charges paid for by users of the system. For the year these charges
totaled $32.2 million. In addition, non-operating revenues totaling $1.2 million were
realized. These are made up of investment income ($1.2 million), other revenue ($0.4
million) and a gain on sale of assets ($6,805). Operating expenditures totaled $30.3
million for the year with the single biggest item being the cost of wastewater treatment
by the City of San Diego in the amount of $18.1 million. After accounting for all
revenues and expenses, both operating and non-operating, net assets of the fund
increased by $475,709 for the year, totaling $217.1 million as of June 30, 2011. Of total
net assets, $142 million is for sewer system infrastructure such as pump stations, sewer
lines and other related equipment and therefore not available to fund the day-to-day
operations of the sewer system. The current portion of net assets totals $57.8 million
comprised of cash and investments ($53.2 million) and accounts receivable of $4.5
million. Fund liabilities at the end of the fiscal year were $768,949, of which $599,198
were considered current liabilities. The fund has no outstanding bonded debt.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended general fund budget totaled $137,790,980 including $3,664,639 in
budget amendments to the originally adopted budget and encumbrances of $895,318,
which will fund contractual obligations and outstanding purchase orders. The General
Fund's budget amendments of $3,664,639 are summarized as follows:
Bud et Amendments A ro nation
Hourl Staff Funded b CAL ID Pro ram $ 95,000
Bonita Can on Draina a Re airs 150,000
Grant Funded Chief Service Officer 86,340
Lea into Readin Grant Car over 2,000
Fundin to Close Com leted Ca ital Im rovement Pro~ects 25,344
Red Cross Grant 133,333
Contract Amendment with Im erial Beach for Animal Control 52,251
Collection A enc contract for Libra Fines 25,000
Herita a Museum Photo Contest 9,600
Online Homework Hel Pro ram 20,000
Ener and Water Conservation Services 12,660
Third Avenue Streetsca a Im rovements 2,500,000
Main Street Plannin Pro'ect 500,000
SDG&E Refund for HVAC Re airs 3,982
SDG&E Reimbursement for Trenchin Ex ense 46,134
Reimbursement From PSAR for Bike CV Initiative 2,995
$ 3,664,639
1 ~3 6
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental and business type activities
as of June 30, 2011, amounts to $956.0 million, net of accumulated depreciation of
$405.9 million. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, infrastructure and construction in progress. Infrastructure
assets are items that are normally immovable and of value only to the City such as
roads, bridges, streets and sidewalks, drainage systems, lighting systems and similar
items. The total decrease in the City's investment in capital assets for the current fiscal
year was $(-13.6) million, net of accumulated depreciation.
Major capital asset additions during the current fiscal year are discussed in the City
Highlights section of this document.
Additional information on the City's capital assets can be found in Note 5 of the notes to
the financial statements.
Debt Administration
Long Term Debt - At June 30, 2011, the City had $192.8 million in debt outstanding
compared to the $200.6 million last year, a 3.9% net decrease. The majority of this debt
is in the form of certificates of participation ($136.1 million), tax allocation bonds ($44.0
million), CDBG Section 108 Loan ($8.9 million) and a pension obligation bond ($2.7
million). The remainder of the outstanding long-term debt is in the form of vested leave
time due to City employees, loans, notes payable, claims and judgments and capital
lease obligations. The City has no outstanding general obligation debt. During the
fiscal year there were no new debt issuances.
The City has maintained an "A--" rating by Standard &Poors for Certificates of
Participation, which represents a "stable outlook."
The Redevelopment Agency was upgraded from an "A" to an "A+" rating for Tax
Allocation Bonds from Standard &Poors. Additional information on the City's long-term
debt obligations can be found in Note 6 of the notes to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Assessed Valuation and Property Tax. According to the County of San Diego
Assessors' Office, the city's total assessed valuation (both secured and unsecured) for
the 2010-11 fiscal year was $21,918,450,346. This is a decrease of $855,635,092 or
3.76% under the 2009-10 assessed valuation. It should be noted that assessed value
was set as of January 1, 2010. Actual current secured property tax revenues for the
1-~7
fiscal year totaled $$22.8 million. This is a decrease of 2.3% when compared to the
prior year amount of $23.3 million.
Building Activity. The valuation of all building and related permits totaled $185.7
million for the 2010-11 fiscal year. This is approximately 77.6% more than the valuation
of $104.6 million for these permit categories in the prior fiscal year. The valuation of
building permits issued for residential units totaled $142.1 million. This is $69.7 million
more than the valuation in the prior year. Permits issued for new non-residential
buildings totaled $19.0 million an increase of $8.9 million from the prior fiscal year. The
valuation of permits issued for alterations or additions to existing buildings totaled $24.2
million as compared to $22.0 million in the prior year.
Local Economy. The City of Chula Vista felt the effects of the recession earlier than
most agencies primarily due to the rapid residential growth experienced through 2005
and the effects of the foreclosure crisis, which eventually spread across the Country.
The University of San Diego's Index of
Leading Economic Indicators for San San Diego Index of Leading Economic Indicators
Diego County rose 0.7 percent in
May. The gain was led by increases
in job postings and an increase in
the leading economic indicators for
the national economy. With the
exception of a slight drop in
consumer confidence, all other
economic indicators rose in the
month of May including initial claims
for unemployment insurance, stock
prices and building permits.I
The outlook for the local economy
continues to be positive. One area
where things are picking up is the labor market, with 24,700 jobs added in San Diego
County between March 2010 and March 2011. While the gain is welcome, the local
economy still has a long way to go to fully recover. At the March rate of job growth, it
will take another four years to get back to the same local level of employment as the
peak in December 2007.2
According to the California Department of Finance, Chula Vista moved up in ranking to
become the 14th largest incorporated city in the state between 2000 and 2010.
However, during the same time period, the number of housing unit vacancies increased
by 117.9%. Although the County realized gains in the number of building permits
~ University of San Diego School of Business Administration, USD Index of Leading Economic Indicators; June 2Q 2011.
z University of San Diego Schoo[ ofBusiness Administration, USD Index ojLeading Econornic Indicators, Apri128, 1011.
1 ~3 8
authorized, the housing market continues to show instability. June 2011 home prices in
San Diego County were down 1.6% from a year ago according to DataQuick, a real
estate analytical firm based in San Diego. The reported median price for all home sales
was $330,000. Two of Chula Vista's five zip codes saw decreases in the median price
of single-family residences while two zip codes increased, one remained unchanged
according to the report. As most cities and counties across the nation, Chula Vista
continues to move forward in its economic recovery.
n~+~ f.,.. i~~.,c 9019 Cmm~ared to June 2010
..-
91910
North •..
~ i
$323,000
~
$341,250
.-
5.7%
91911 South $310,000 $249,000_ _-19.7%
i
13
9
19 Eastlake $385,000 _ $347,500
~ -9.7%
^
_
_
_
_
91914 NE $467,500 $490,500 __ 4.9%
91915 ____
SE _ _
$385,000 $385,000 0.0%
Fiscal Year 2011-12 Budget. The City ended the 2010-11 fiscal year with unassigned
fund balance of $11.9 million. An amount of $3.0 million of committed fund balance at
June 30, 2011 is being used to fund operations in fiscal year 2011-12.
In June 2011, the Chula Vista City Council adopted the 2011-12 annual operating
budget which provides $289.5 million in appropriations to fund all City operating
activities. The General Fund budget totaled $124.6 million. Due to the economic
uncertainties caused by the slow economic recovery and the ever increasing threat of
the State diverting City revenues to balance its own budget, the City continues to adopt
only cone-year budget.
The current national mortgage crisis continues to cause a decrease in turnover in the
local housing market, resulting in a slowdown in property tax growth. Based on
information received from the San Diego County Assessor, Chula Vista's growth in net
taxable assessed value for fiscal year 2011-12 is negative 0.11%. This rate of growth
can be compared to the 2009-10 negative growth rate of 3.76%. Management
anticipated this slowdown in the housing market, and its effects on property tax revenue
growth, as well as the overall condition of the economy, and adjusted revenue estimates
in the 2011-12 budget accordingly.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for
all of its citizens, taxpayers, customers, investors and creditors. Questions concerning
any of the information provided in this report or requests for additional information
should be addressed to the City of Chula Vista, Finance Department, 276 Fourth
Avenue, Chula Vista, CA 91910.
1-~9
BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE
FINANCIAL STATEMENTS
1~2
City of Chula Vista
Statement of Net Assets
June 30, 2011
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Taxes
Interest
Other
Due from other governments
Inventories and prepaid items
Total current assets
Noncurrent assets:
Restricted cash and investments:
Held by city
Held by fiscal agent
Loans receivable
Internal balances
Defeued chazges, net
Net pension assets
Non-depreciable capital assets
Depreciable capital assets, net
Total noncurrent assets
Total assets
See accompanying Notes to Basic Financial Statements.
Primary Government
Governmental Business-Type
Activities Activities Total
$. 134,464,312 $
1,305,287
1Q421,159
288,385
930,745
8,206,609
347,490
155,963,987
6,356,784
17,on,18s
39,095,809
(14,066,534)
1,209,573
3,175,108
107,645,021
701,828,710
862,315,656
1,018,279,643
1-43
62,516,958 $ 196,981,270
4,489,602 5,794,889
- 10,421,159
142,096 430,481
59,900 990,645
- 8,206,609
46,741 394,231
67,255,297 223,219,284
6,356,784
17,on,18s
39,095,809
14,066,534
2,702,040
143,848,545
160,617,119
227,872,416
1,209,573
3,175,108
110,347,061
845,677,255
1,022,932,775
1,246,152,059
City of Chula Vista
Statement of Net Assets, Continued
June 30, 2011
Primary Government
Governmental Business-Type
Activities Activities Total
LIABILTTIES
Current liabilities:
Accounts payable and accrued liabilities
Interest payable
Unearned revenue
Compensated absences -due within one year
Claims payable -due within one year
Long-term debt- due withii one year
Total current liabilities
Noncurrent liabilities:
Retention payable
Developer deposits
Pollution Remediation Obligation
Arbitrage liability
Net OPEB liability
Compensated absences -due in more than one year
Claims payable -due in more than one year
Long-term debt -due in more than one year
Total noncurrent Eabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted:
Community development
Debt service
Capital projects
Total restricted
Unrestricted
Total net assets
12,904,717 616,771 13,521,488
3,205,951 - 3,205,951
9,289,397 300,002 9,589,399
4,000,000 - 4,000,000
4,200,000 - 4,200,000
8,416,039 - 8,416,039
42,016,104 916,773 42,932,877
462,791 - 462,791
11,871,594 - 11,871,594
650,000 - 650,000
24,426 - 24,426
3,553,000 - 3,553,000
2,797,511 190,850 2,988,361
18,232,093 - 18,232,093
184,363,307 - 184,363,307
221,954,722 190,850 222,145,572
263,970,826 1,107,623 265,078,449
634,409,385 146,550,585 780,959,970
21,809,425 - 21,809,425
17,232,590 - 17,232,590
8,126,621 - 5,126,621
47,168,636 - 47,168,636
72,730,796 80,214,208 152,945,004
$ 754,308,817 $ 226,764,793 $ 981,073,610
See accompanying Notes to Basic Financial Statements.
1-~4
City of Chula Vista
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2011
Fvnctions/Programs Expenses
Primary government:
Governmental activities:
Program Revenues
Operating Capital Total
Charges for Grants and Grants and Program
Services Contributions Contributions Revenues
Genera] govemmnrt $ 46,457,112 $
Public safety 75,664,246
Public works 71,857,158
Parks and recreation 6,995,489
Library 4,509,999
Interest on long-term debt 11,538,707
Total governmental activities 217,022,711
Business-type activities:
29,785,079 $ 8,679,241 $ 277,657 $ 38,741,977
7,959,893 8,471,932 - 16,461,825
33,378,070 14,622,569 4,503,603 52,504,242
3,599,653 8,168 365 3,608,186
967,908 194,908 - 1,162,816
75,720,603 31,976,818 4,781,625 112,479,046
Sewer 30,245,584 32,257,256 - - 32,257,256
Transit 7,075,998 2,534,385 3,340,200 - 5,874,585
Bayfxont Trolley Station 91,788 - 91,788 - 91,788
Sewer DIFS 123,629 443,599 - - 443,599
Total business-type activities 37,536,999 35,235,240 3,431,988 - 38,667,228
Total primary government $ 254,559,710 $ 110,955,843 $ 35,408,806 $ 4,781,621 $ 151,146,274
See accompanying Notes to Basic Financial Statements.
~-45
City of Chula Vista
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2011
Functions/Progams
Primary government.
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Library
Interest onlong-term debt
Total governmental activities
Business-type activities:
Sewer
Transit
Bayfront Trolley Station
Sewer DIES
Total business-type activities
Total primary government
General revenues:
Taxes:
Property taxes
Sales taxes
Property transfer taxes
Franchise taxes
Utilities user taxes
Business license taxes
Transient occupancy taxes
Construction [axes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets -beginning of year
Net assets -end of yeaz
Net (Expense) Revenue and
Changes in Ne[ Assets
Primary Government
Governmental Business-type
Activities Activities
$ (7,715,135) $
(59,202,421)
(19,352,916)
(3,387,303)
(3,347,183)
(11,538,707)
(104,543,665)
2,011,672
(1,201,413)
Total
$ (7,715,135)
(59,202,421)
(19,352,916)
(3,387,303)
(3,347,183)
(11,535,707)
(104,543,665)
2,011,672
(1,201,413)
- 319,970 319,970
- 1,130,229 1,130,229
(104,543,665) 1,130,229 (103,413,436)
39,437,025 - 39,437,025
26,702,443 - 26,702,443
777,016 - 777,016
8,260,411 - 8,260,411
4,943,679 - 4,943,679
1,085,247 - 1,085,247
2,058,878 - 2,058,878
360,156 - 360,156
53,624,855 - 83,624,855
9,108,662 1,288,478 10,397,140
5,193,653 1,013,733 6,207,386
3,437,718 (3,437,718) -
101,364,888 (1,135,507) 100,229,381
(3,178,777) (5,278) (3,184,055)
757,487,594 226,770,071 984,257,665
$ 754,308,817 $ 226,764,793 $ 981,073,610
See accompanying Notes to Basic Financial Statements.
~-~6
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FUND FINANCIAL STATEMENTS
i ~s
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1-2~ 9
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
i ~o
City of Chula Vista
Balance Sheet
Governmental Funds
June 30, 2011
Major Funds
Sundry Grants RDA RDA City
General Special Revenue Special Revenue Debt Service Debt Service
Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 19,641,245 $ 3,406,332 $ 2,731,763 $ 5,524 $ -
Receivables:
Accounts 790544 373,432 - - -
Taxes 9,379,494 99,265 - - -
Interest 21,885 6,834 12,211 55 -
Loans 106,531 15,821,139 20,423,547 - -
Other 123,705 - - - -
Due from other funds 3,717,477 - 2,202,044 - -
Due from other governments 672,822 5,975,690 - - -
Advances to other funds 14,150,004 - 5,046,796 - -
Inventories and prepaid items 72,852 274,638 - - -
Restricted cash and investments:
Held by City - 5,726,699 630,085 - -
Held by fiscal agents - - 3,573,716 -
Total assets $ 48,676,562 $ 31,684,029 $ 31,046,446 $ 3,579,295 $ -
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 5,964,280 $ 1,893,509 $ 168 $ - $ -
Due to other funds - 5,177,070 - - -
Retention payable 3,351 255,838 ~ - - -
Advances from other funds - - - 22,356,648 36,617,176
Developer deposits - - - - -
Deferred revenue 6,968,532 15,750,333 18,962,722 - -
Totalliabilities 12,936,163 23,076,750 18,962,890 22,356,648 36,617,176
Fund Balances:
Nonspendable 11,258,150 571,880 6,507,622 - -
Restricted 127,883 8,035,399 S,ST,934 3,579,294 -
Convnitted 7,178,838 - - - -
Assigned 5,298,536 - - - -
Unassigned 11,876,992 - - (22,356,647) (36,617,176)
Total fund balances 35,740,399 8,607,279 12,083,556 (18,777,353) (36,617,176)
Total liabilities and fund balances $ 48,676,562 $ 31,684,029 $ 31,046,446 $ 3,579,295 $ -
See accompanying Notes to Basic Fuuncial Statements
-~~
City of Chula Vista
Balance Sheet, Continued
Governmental Funds
June 30, 2011
Major Funds
Park Acquisifion
Development Development
Impact Fund Fund
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
hrterest
Loans
Other
Due from other funds
Due from other governments
Advances to other funds
Inventories and prepaid items
Restricted cash and investments:
Held by City
Held by fiscal agents
Total assets
LIABILTTIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabihties
Due to other funds
Retention payable
Advances from other funds
Developer deposits
Deferred revenue
Total liabilities
Fund Balances:
Nonspendable
Restricted
Comntitted
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
Other Total
Governmental Governmental
Funds Funds
$ 30,834,702 $ 22,140,879 $ 53,580,499 $ 132,340,947
- - 141,311 1,305,287
- - 942,400 10,421,159
113,985 52,320 77,105 284,398
- - 2,744,592 39,095,809
485,548 - 288,117 897,370
- - 39,012 5,958,533
_ - 1,558,097 8,206,609
11,327,322 9,681,138 4,702,030 44,907,290
- - 347,490
_ - - 6,356,784
13,497,469 17,071,185
$ 42,761,557 $ 31,874,337 $ 77,570,635 $ 267,192,861
$ 266,830 $ 120,131 $ 4,349,435 $ 12,594,356
- 781,463 5,958,533
- 4,290 199,312 462,791
- - 58,973,824
_ - 11,871,594 11,871,594
2,336,366 51,135 7,629,420 51,698,508
2,603,196 175,556 24,831,227 141,559,606
10,680,000 - 3,910,347 32,927,999
29,478,361 31,698,781 31,576,967 110,072,619
- - 17,370,613 24,549,451
- - - 5,298,536
_ (118,519) (47,215,350)
40,158,361 31,698,781 52,739,408 125,633,255
$ 42,761,557 $ 31,874,337 $ 77,570,635 $ 267,192,861
See accompanying Notes to Basic Financial Statements.
-~2
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City of Chula Vista
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30, 2011
Total Fund Balances-Total Governmental Fvnds $ 125,633,255
Amounts reported for govemmental activities in the Statement of Net Assets were different because:
Deferred charges, such as bond issuance costs, were expenditures in the fund financial statements but were deferred and
subject to capitalization and amortization on the Government-Wide Statement of Net Assets. 1,209,573
Net pension assets were not available to pay for current period expenditures and therefore were not recorded in the
governmental funds. 3,175,108
Capita] assets used in govemmental activities were not financial resources and therefore were not reported in governmental
funds.
Government-Wide Financial Statements 809,473,731
Less: Internal Service Fm~ds' Capital Assets (964,510)
Total capital assets
SOSS09,221
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as
a liability in Governmental Funds Balance Sheet. (3,205,951)
Long-term liabilifies were not due and payable in the current period and therefore were not reported in the govemmental
Cunds.
Amount reported in Govemment-Wide Statement of Net Assets:
Compensated absences -due witltin one year (4,000,000)
Compensated absences -due in more than one year (2,797,511)
(4,200,000)
Claims payable -due withal one year (18,232,093)
Claims payable -due in more than one year (8,416,039)
Long-term debt -due within one year (184,363,307)
Long-temt debt -due in more than one year (650,000)
Pollution Remediation Obligation (24,426)
Arbitrage liability (3,553,000)
Net OPEB liability
Less: Amount reported in Internal Service Funds
Compensated absences -due in more than one year 62,702
Total long-term liabilities (226,173,674)
Deferred revenues recorded in govemmental fund financial statements resulting from activities in which revenues were
earned but funds were not available were recognized as revenues in the Government-Wide Financial Statements.
Amounts reported in Government-Wide Statement of Net Assets (9,289,397)
Amounts reported in Governatental Fund Financial Statements 51,698,508
Total adjustments on deferred revenues 42,409,111
Intemal service funds were used by management to charge the costs of certain activities to individual funds. The assets and
liabilities of the internal service funds were included in govemmental activities in the Govemment-Wide Statement of Net
Assetr. 2,752,174
Net Assets of Governmental Activities $ 754,308,817
See accompanying Notes to Basic Fuuncial Statements.
1-~4
City of Chula Vista
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
For the year ended June 30, 2011
REVENUES:
Taxes
Intergovemmenta]
Licenses and permits
Developer fees
Charges For services'
Fines and forfeitures
Useaf money and property
Other
Total revenues
EXPENDTTURES:
Current:
General government
Public safety
Public works
Parks and recreation
Library
Capital outlay
Debt service:
Prindpal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Proceeds from sale of property
Transfers in
Transfers out
Total other Financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCE (DEFICTT):
Beginning of year
End of year
Major Funds
Sundry Grants RDA RDA City
General Spedal Revenue Special Revenue Debt Service Debt Service
Fund Fund Fund Fund Fund
$ 69,441,761 $ - $ 2,764,588 $ - $ -
18,748,469 20,121,565 - - -
z.777,946 - - - -
9,721,746 1,029,040 - - -
1,708,846 - - - -
6,923,963 55,235 89,340 96,674 -
16,689,172 241,100 50 43 -
126,011,903 21,446,940 2,853,978 96,717 -
28,568,063 5,139,261 557,097 10,495 -
64,872,225 5,276,474 - - -
26,071,616 ~ 4,881,144 - - -
4,030,767 - - - -
3,870,646 - - - -
428,936 7,739,089 - - -
_ - - 1,110,000 -
_ _ - 2,772,143 902,567
127,842,253 23,035,968 557,097 3,892,638 902,567
(1,830,350) (1,589,028) 2,296,881 (3,795,921) (902,567)
_ 42,286 - - -
11,304,257 350,761 - 15,717,464 353,826
(6,915,308) (1,048,066) (4,394500) (856,613) (9,630,000)
4,388,949 (655,019) (4,394,500) 14,560,851 (9,276,174)
2,558,599 (2,244,047) (2,097,619) 11,064,930 (10,178,741)
33,181,800 10,851,326 14,181,175 (29,842,283) (26,438,435)
$ 35,740,399 $ 8,607,279 $ 12,083,556 $ (18,777,353) $ (36,617,176)
See accompanying Notes to Basic Pinancial Statements.
1-~5
City of Chula Vista
Statement of Revenues, Expenditures and Changes in Fund Balance, Continued
Governmental Funds
For the year ended June 30, 2011
Major Funds
Park Acquisition Othex Total
Development Development Governmental Governmental
Impact Fund Fund Funds Funds
REVENUES: -
Taxes $ - $ - $ 16,672,315 $ 88,878,664
Intergoverrrmental - - 9,307,673 48,177,707
Licenses and permits - - 109,204 2,887,150
Developer fees 7,103,802 1,138,382 8,256,560 16,498,744
Clurges for services - - 992,719 11,743,505
Fines and forfeitures - - 639,719 2,348,565
Use of money and property 230,779 192,233 1,128,400 8,716,624
Other - - 11,232,946 28,163,311
Total revenues 7,334,581 1,330,615 48,339,536 207,414,270
EXPENDITURES:
Current:
General government - - 5,426,480 39,701,396
Public safety - - 545,080 70,693,779
Public works 177,459 - 16,926,010 48,056,229
Parks and recreation - - - 4,030,767
Library - - - 3,870,646
Capital outlay 2,322,663 10,861,533 12,862,800 34,215,021
Debt service:
Principal. - - 6,801,995 7,911,995
Interest and fiscal charges - - 7,419,396 11,094,106
Total expenditures 2,500,122 10,861,533 49,981,761 219,573,939
REVENUES OVER
(UNDER) EXPENDTTURES 4,834,459 (9,530,918) (1,642,225) (12,159,669)
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - 42,286
Proceeds from sale of property - - 9,630,000 9,630,000
Transfers in - 9,630,000 19,633,275 56,989,583
Transfers out (69,192) _ - (30,638,186) (53,881,865)
Total other financing sources (uses) (69,192) 9,630,000 (1,374,911) 13,110,004
NET CHANGE IN FUND BALANCES 4,765,267 99,082 (3,017,136) 950,335
FUND BALANCE (DEFICIT):
Beginning of year 35,393,094 31,599,699 55,756,544 124,682,920
End of year $ 40,158,361 $ 31,698,781 $ 52,739,408 $ 125,633,255
See accompanying Notes to Basi<Financial Statements.
1-~'6
City of Chula Vista
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund
Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2011
Net Change in Fund Balances -Total Governmental Funds $ 950,335
Amounts reported for governmental activities in the Statement of Activities were different because:
Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and
Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This
was the amount of capital assets recorded in the current period. 17,572,567
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net
Assets, but [hey did not require the use of current financial resources. Therefore, depreciation expense was not reported as
expenditures in [he Govemmental Funds. This amount did not include [he depreciation expense for Internal Service Funds in
the amount of $474,277. (24,918,979)
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net
assets. (753)
The issuance of long-term liabilities provided current financial resources to governmental funds, but issuing debt increased
long-term liabilities in the Government-Wide Statement of Net Assets. Repayment of long-term liabilities was an
expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of
Net Assets.
Issuance of long-term debt (42,286)
Principal payment oflong-term debt 7,911,995
Amortization expenses were reported in the Government-Wide Statement of Activities and Changes in Net Assets, bu[ they
did not require the use of current financial resources. llierefore, amortization expenses were not reported as expenditures in
the Govemmental Funds.
Bond premium and discount - (83,848)
Deferred charges (40,295)
Net pension assets (2,426,439)
Certain long-term liabilities were reported in the Government-Wide Statement of Activities and Changes at Net Assets, but
they did not require the use of current financial resources. Therefore, long-term liabilities were not reported as expenditures
in governmental funds. These amounts represented the changes in long-term BabBities from prior year.
Changes in wmpensated absences (72,838)
Changes in claims payable (3,630,489)
Changes in net OPEB Babilities (1,004,000)
Interest expense on long-term debt was reported in the Govemmen[-Wide Statement of Activities and Changes in Net Assets,
but it did not require the use of current financial resources. This amomit represented the change ¢t accrued interest from
prior year. (320,438)
Interest earned on long-term receivables did not provide current financial resources were not reported as revenues in the
Governmental Funds. 2,974,514
Internal service funds were used by management to charge the costs of certain activites to individual funds. The net revenue
of internal service funds was reported with governmental activities. (47,803)
Change in Net Assets of Govemmental Activities
See accompanying Notes to Basic Futancial Statements.
$ (3,178,777)
~-5!
PROPRIETARY FUND
FINANCIAL STATEMENTS
1-~8
City of Chula Vista
Statement of Net Assets
Proprietary Funds
June 30, 2011
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Interest
Other
Prepaid items
Total current assets
Noncurrent assets
Advances to other funds
Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES AND
NET ASSETS
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
Unearned revenue
Total current liabilities
Noncurrent liabilities:
Advances from other funds
Compensated absences
Total noncurrent Eabilities
Total liabilifies
Net Assets:
Invested in capital assets
Unrestricted
Total net assets
See accompanying Notes to Basic Financial Statements.
Governmental
Major Fund Activities
Sewer Nonmajor Internal
Fund Enterprise Funds Total Service Funds
$ 53,165,934 $ 9,351,024 $ 62,516,958 $ 2,123,365
4,489,602 - 4,489,602 -
119,411 22,685 142,096 3,987
- 59,900 59,900 33,375
1,741 45,000 46,741 -
57,776,688 9,478,609 67,255,297 2,160,727
18,105,978
142,013,433 - 18,105,978 -
4,537,152 146,550,585 964,510
160,119,411 4,537,152 164,656,563 964,510
217,896,099 14,015,761 231,911,860 3,125,237
599,198 17,573 616,771 310,361
- 300,002 300,002 -
599,198 317,575 916,773 310,361
- 4,039,444
169,751 21,099 4,039,444 -
190,850 62,702
169,751 4,060,543 4,230,294 62,702
768,949 4,378,118 5,147,067 373,063
142,013,433 4,537,152 146,550,585 964,510
75,113,717 5,100,491 80,214,208 1,787,664
$ 217,127,150 $ 9,637,643 $ 226,764,793 $ 2,752,174
1-~9
City of Chula Vista
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the year ended June 30, 2011
OPERATING REVENUES:
Charges for services
Other
Total operating revenues
OPERATING EXPENSES
Operations azid administration
Maintenance
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Interest income
Interest expense
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
INCOME(LOSS)BEFORE TRANSFERS
TRANSFERS:
Transfers out
Total transfers
CHANGE IN NET ASSETS
NET ASSETS:
Beginning of year
End of year
Governmental
Major Fund Activities
Sewer Nonmajor Internal
Fund Enterprise Funds Total Service Funds
$ 32,257,256 $ 2,977,984 $ 35,235,240 $ 4,017,705
377,716 636,017 1,013,733 16,604
32,634,972 3,614,001 36,248,973 4,034,309
23,343,558 6,272,348 29,615,906 3,694,131
1,237,361 48,938 1,286,299 -
5,671,470 907,202 6,578,672 474,277
30,252,389 7,228,488 37,480,877 4,168,408
2,382,583 (3,614,487) (1,231,904) (134,099)
- 3,431,988 3,431,985 -
1,192,042 96,436 1,288,478 18,185
- (62,927) (62,927) -
6,805 - 6,805 68,111
1,198,547 3,465,497 4,664,344 86,296
3,581,430 (148,990) 3,432,440 (47,803)
(3,105,721) (331,997) (3,437,718) -
(3,105,721) (331,997) (3,437,715) -
475,709 (480,987) (5,278) (47,803)
216,651,441 10,118,630 226,770,071 2,799,977
$ 217,127,150 $ 9,637,643 $ 226,764,793 $ 2,752,174
See accompanying Notes to Basic Fitancial Statements.
-D~
City of Chula Vista
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2011
CASH FLOWS FROM OPERATING ACTIVTTIES:
Cash received from nrstomers -
Cash received from (payments to) other funds
Cash payments to supplier and employees for goods and services
Other operating revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPTTAL AND RELATED FINANCING ACTIVITIES:
Governmental
Major Fund Nonmajor Activities
Sewer Enterprise Internal
Fund Fund Total Service Funds
$ 32,522,323 $ 2,346,803 $ 34,869,126 $ -
(287,796) 62,928 (224,868) 4,021,224
(24,248,253) (6,533,163) (30,781,416) (3,723,904)
377,716 636,017 1,013,733 16,604
8,363,990 (3,487,415) 4,876,575 313,924
Acquisition of capital assets (741,428) (3,409) (744,837) (67,124)
Proceeds received from disposal of capital assets 6,805 - 6,805 68,111
Net cashprovided (used) by capital and related financing activities (734,623) (3,409) (738,032) 987
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Intergovernmental
Interest expense
Transfers (out)
Net cash provided (used) by noncapital financing activities
- 3,431,988 3,431,988 -
- (62,927) (62,927) -
(3,105,721) (331,997) (3,437,718) -
(3,105,721) 3,037,064 (68,657) -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash investments
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating loss to
net cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabflities:
Accounts receivable
Other receivable
Prepaid itenvs
Advances to other funds
Accounts payable and accrued liabilities
Unearned revenue
Advances from other funds
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
See accompanying Notes to Basic Financial Statements.
1,202,228 106,606 1,308,834 18,722
1,202,228 106,606 1,308,834 18,722
5,725,874 (347,154) 5,378,720 333,633
47,440,060 9,698,178 57,138,238 1,789,732
$ 53,165,934 $ 9,351,024 $ 62,516,958 $ 2,123,365
$ 2,382,583 $ (3,614,487) $ (1,231,904) $ (134,099)
5,671,470 907,202 6,578,672 474,277
263,866 - 263,866 -
1,201 (59,689) (58,488) 3,519
(1,741) (45,000)
(287,796) - (287,796) -
164,656 (187,976) (23,320) (28,509)
- (571,492) (571,492) -
- 62,928 62,928 -
169,751 21,099 190,850 (1,264)
5,981,407 127,072 6,155,220 448,023
$ 8,363,990 $ (3,487,415) $ 4,923,316 $ 313,924
-D~
FIDUCIARY FUND
FINANCIAL STATEMENTS
-~2
City of Chula Vista
Statement of Fiduciary Net Assets
Agency Fund
June 30, 2011
ASSETS
Cash and investments
Restricted cash and investments: -
Held by fiscal agents
Total assets
LIABILITIES
Due to bondholders
Total liabilities
See acrompanying Notes to Basic Financial Statements.
$ 7,701,829
72,923,442
$ 80,625,271
$ 80,625,271
$ 80,625,271
1-~3
NOTES TO BASIC
FINANCIAL STATEMENTS
1-84
City of Chula Vista
Notes to Basic Financial Statements
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Chula Vista, California (the "City") have been prepared in
conformity with generally accepted accounting principles of the United States of America ("U.S. GAAP") as
applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the
accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more signifrcar{t of the City's accounting policies are described below.
A. Financial Reporting Entity
The City incorporated in 1911, was recognized as a city in the State of California by election in 1949.
The City operates under an elected Council and appointed City Manager form of government and
provides the following services as authorized by its charter: public safety, community services,
engineering services, planning services, public works, general administrative services and capital
improvements.
These basic financial statements present fl1e City and its component units, entities for which the City is
considered to be financially accountable. The City is considered to be financially accountable for an
organization if the City appoints a voting majority of that organization s governing body and either the
City is able to impose its will on that organization or there is a potential for that organization to provide
financial benefits to or impose specific financial burdens on the City. The City is also considered to be
financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City).
In certain cases, other organizations are included as component units if the nature and significance of
their relationship with the City are such that their exclusion would cause the City's financial statements
to be misleading or incomplete. Blended component units, although legally separate entities are, in
substance, part of the City's operations and data from these units are combined with data of the City.
Each blended component unit has a June 30 year-end. The following entities are reported component
units:
Blended Component Units
The Redeveloy_ment Agency o the Cityof Clzula Vista (the "AQencu")
The Agency was created by the City of Chula Vista City Council ("City Council") in October 1972. It
was established pursuant to the State of California Health and Safety Code, Section 33000 entitled
"Community Redevelopment Law." Its purpose is to prepare and carry out plans for improvement,
rehabilitation, and redevelopment of blighted areas within the territorial limits of the City of Chula
Vista. The Agency has been included in the accompanying basic financial statements since the City
Council acts as the Agency's governing board and exerts significant influence over its operations. The
Agency's operations are governmental in nature and, as such, have been included in the special
revenue, capital projects, and debt service funds. The financial statements of the Agency can be
obtained at the Finance Depaztment or online at the City's website at www.ci.chula-vista.ca.us.
1-~5
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
A. Financial Reporting Entity, Continued
The Chula Vista Industrial Development Authority (the "Development Authority")
.The Development Authority was formed in February 1982 for the purpose of promoting and
developing commercial, industrial and manufacturing enterprises and encouraging employment. The
governing body of the Development Authority is comprised of the members of the City Council. The
Development Authority's financial data and transactions are included within the capital projects fund
type. The City does not produce separate financial statements for the Development Authority.
The Chula Vista Public Facilities Financing Authority (the "Financing Authority")
The Financing Authority was established by ordinance, pursuant to the City Charter and Constitution
of the State of California, as a public body, to serve the public purposes of the City. The ordinance was
adopted on April 4, 1995. The governing body of the Financing Authority is comprised of the
consenting members of the City Council.. The Financing Authority is authorized to borrow money for
the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of
making loans to the City and/or to refinance outstanding obligations of the City. The City does not
produce separate financial statements for the Chula Vista Public Facilities Financing Authority..
The Chula Vista Housing Authorih/ (the "Housing Authority")
The Housing Authority was created by the City of Chula Vista City Council ("City Council") in March
1993 to centrally coordinate and administer the Cit~s programs for promoting balanced housing for
families of all income levels. It was established pursuant to the -State of California Health and Safety
Code, Section 34200. It is empowered to develop, finance and own low income housing within the
territorial limits of the City of Chula Vista. It uses a variety of local, state, and federal funding sources
to administer and finance these programs. It is also the financing vehicle for the issuance of bonds for
housing programs and services. The Housing Authority's financial data and transactions are included
within the special revenue fund type. The City does not produce separate financial statements for the
Housing Authority.
B. Basis of Presentation, Measurement Focus and Basis of Accounting
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for by providing a separate set of self-
balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or
expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is
used to aid management in demonstrating compliance with finance-related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial
requirements.
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These statements present summaries of governmental activities and
business-type activities for the City, the primary government, accompanied by a total column. Fiduciary
activities of the City are not included in these statements.
166
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Government-Wide Financial Statements, Continued
These basic financial statements aze presented on an "economic resources" measurement focus and the
accrual basis of accounting. Accordingly, all of the Cit}~s assets and liabilities, including capital assets, as
well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net
Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenses are recognized in the period
in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
• Changes for services
Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. All internal balances in the Statement of Net Assets have been
eliminated except those representing balances between the governmental activities and the business-
type activities, which are presented as internal balances and eliminated in the total primary
government column. In the Statement of Activities, internal service fund transactions have been
eliminated; however, those transactions between governmental and business-type activities have not
been eliminated. The following interfund activities have been eliminated:
Due to, Due from other funds
• Advances to, Advances from other funds
Transfers in, Transfers out
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally aze followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the GASB. Goverrunents also
have the option of following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-
sector guidance.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net
assets as presented in these statements to the net assets presented in the government-wide financial
statements. The City has presented all major funds that met those qualifications.
1-~l
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Governmental Fund Financial Statements, Continued
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in net current assets. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available
to finance expenditures of the current period.
Revenues are recorded when received in cash, except revenues subject to accrual (up to 7 months after
year-end) are recognized when due. The primary revenue sources, which have been treated as
susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental
revenues, other taxes, interest revenue, rental revenue and certain charges for services. Expenditures
are recorded in the accounting period in which the related fund liability is incurred:
Unearned revenues arise when potential revenues do not meet both the "measurable' and "available"
criteria for recognition in the current period. Unearned revenues also arise when the government
receives resources before it has a legal claim to them, as when grant monies are received prior to
incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are
met or when the government has a legal claim to the resources, the unearned revenue is removed from
the balance sheet and revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund -This is the primary operating fund of the City. It is used to account for all revenues
and expenditures that are not required to be accounted for in another fund.
Sundry Grants Special Revenue Fund -This fund consists of miscellaneous grants/revenues such as:
supplemental law enforcement services, CBAG, California Library Services Act, asset seizure, local
law enforcement block grants, California Recreation grants, Public Safety grants, ARRA grants,
waste management and recycling, energy conservation, emergency shelter program, HOME
program, CDBG program income project, and Community Development Block grants.
Redevelopment Agency Special Revenue Fund -This fund was established to account for the 20% of the
revenue received from tax increment within the redevelopment project areas and is used to fund
low and moderate income housing and related expenditures.
Redevelopment Agency Debt Service Fund -This fund was established to account for debt levies,
rentals, other revenues and payments of principal and interest on Redevelopment loans and
outstanding bonds.
1-5'8
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Governmental Fund Financial Statements, Continued
City Debt SerUice Fund -This fund was established to account for principal and interest payments on
the City's long-term loans.
Development Impact Capital Projects Fund -This fund was established as a depository of vazious
development impact fees. The fees are levied against all new development in the City in order to
pay for the construction or improvement of public facilities as a result of City growth.
Park Acquisition Development Capital Projects Fund -This fund is a depository for fees collected from
property developers for the purpose of providing park, and recreational facIlities directly benefiting
and serving residents of the regulated subdivision being developed. This in-lieu fee was adopted
by the City to acquire neighborhood and Community Parkland and to construct parks and
recreational facilities.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues,
Expenses and Changes in Net Assets, and a Statement of Cash Flows for all proprietary funds.
Column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the government-
wide financial statements. The City's internal service funds :include two individual funds which
provide services directly to other City funds. These areas of service include Fleet and Vehicle
Maintenance and Information Technology Replacement.
Proprietary funds are accounted for using the "economic resources' measurement focus and the accrual
basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included
on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Fund Net Assets
presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses
are those expenses that are essential to the primary operations of the fund. All other expenses aze
reported as non-operating expenses.
The City reports the following major proprietary funds
Sewer Enterprise Fund -This fund consists of several funds that are used to account for sewer
activities:
The Sewer Income Fund is a depository for all monies collected to cover the cost of connecting
properties to the City's public sewer system. All monies received may be used only for the
acquisition, construction, reconstruction, maintenance and operation of sanitation or sewerage
facilities.
~ -~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Pvesentation, Measurement Focus and Basis of Accounting, Continued
Proprietary Fund Financial Statements, Continued
The Special Sewer Fund is used to account for the sale of the city's excess Metropolitan Sewerage
System capacity. Use of monies in this fund is determined by the City Council.
The Trunk Sewer Capital Reserve Fund is used to account for sewerage facffity participation fee
received from owners or persons making application for a permit to develop or modify use of
any residential, commercial, industrial or other property, which increases the volume of flow into
the City sewer system. All monies received are used for the enlargement of sewer facilities of the
City so as to enhance efficiency of utilization and/or adequacy of capacity and for planning
and/or evaluating any future proposals for area wide sewage treatment and/or water
reclamation systems or facilities.
The Sewer Service Revenue Fund is a depository for all monies collected from the monthly sewer
service charge. Monies in this fund may be used for construction, maintenance, or operation of
sewer.
The Inie~mal Service Funds are funds used to charge other City funds for fleet management and
technology replacement services provided.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets. The City's fiduciary funds
represent agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations. The agency funds are accounted for on the accrual basis
of accounting as are the Proprietary funds explained above
Fiduciary fund types are accounted for according to the nature of the fund. The City has only agency
funds, which aze purely custodial in nature (assets equal liabilities), and thus do not involve
measurement of results of operations.
These funds are used to account for money and property held by the City as trustee or custodian. They
are also used to account for various assessment districts for which the City acts as an agent for debt
service activities.
C. Encumbrances
Formal budgetary integration is employed as a management control device. Encumbrance accounting,
under which purchase orders, contracts and other commitments for the expenditure of monies are
recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of
formal budgetary integration. Encumbrances outstanding at year-end are reported as reservations of
fund balances and do not constitute U.S. GAAP basis expenditures or liabilities because -the
commitments will be honored during the subsequent year.
J-~~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and
investment amounts, with original maturities of three months or less, to be cash equivalents.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments
and far External Investment Pools, highly liquid market investments with maturities of one year or less at
time of purchase are stated at amortized cost. All other investments are stated at fair value. Market
value is used as fair value for those securities for which market quotations are readIly available. The
City reported its investments at fair value and the unrealized losses on investments amounted to $700,202
for the fiscal year ended June 30, 2011.
The statement of cash flows requires presentation of "cash and cash equivalents'. For the purposes of
the statement of cash flows, the City considers all proprietary fund pooled cash and investments as
"cash and cash equivalents", as such funds are available to the various funds as needed.
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (An amendment of GASB
Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the
following areas:
- Interest Rate Risk
- Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
- Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and
investments, highly sensitive investments, credit quality at year-end and other disclosures.
E. Inventories and Prepaid items
Inventories are valued on an average-cost basis which are adjusted to annual physical counts or
estimates under the consumption method of accounting and are recorded in the internal service fund.
Prepaid items are items the City has paid in advance and will receive future benefit from. They are
recorded under the consumption method in the General Fund and Sundry Grants Special Revenue
Fund.
F. Restricted Assets
Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of long-term
debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds,
certificate of participation or tax allocation bonds and have been invested only as permitted by specific
State statutes or applicable City ordinance, resolution or bond indenture.
1-~1
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
G. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not
available. Donated fixed assets are valued at their estimated fair market value on the date donated.
City policy has set the capitalization threshold for reporting capital assets at $5,000 for equipment and
$100,000 for infrastructure. Depreciation is recorded on a straight-line basis over estimated useful lives
of the assets as follows:
Buildings 50 years
Improvements other than buildings 50 years
Machinery and equipment 5-12 years
Infrastructure 30-75 years
The City defines infrastructure as the basic physical assets that allow the City to function. The assets
include streets, sewer, and pazk lands. Each major infrastructure system can be divided into
subsystems. For example the street system can be subdivided into pavement, curb and gutters,
sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the
basic financial statements. The appropriate operating department maintains information regarding the
subsystems.
Interest accrued during capital assets construction, if any, is capitalized for the business-type funds as
part of the asset cost.
For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement
No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrashucture
and property as of June 30, 2001. This appraisal determined the original cost, which is defined as the
actual cost to acquire new property in accordance with 'market prices at the time of first
construction/ acquisition.
Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs
appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of
the price increase from the construction/acquisition date to the current date. The accumulated
depreciation, defined as the total depreciation from the date of construction/acquisition to the current
date on a straight lure, unrecovered cost method was computed using industry accepted life
expectancies for each infrastructure subsystem. The book value was then computed by deducting the
accumulated depreciation from the original cost.
H. Compensated Absences
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as expenses and
liabilities as incurred.
1~2
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Compensated Absences, Continued
Fund Financial Statements
For governmental funds, compensated absences are recorded as expenditures in the years paid, as it is
the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather
than currently available financial resources. The General Fund is typically used to liquidate
compensated absences. In proprietary funds, compensated absences are expensed to the various funds
in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term
liability of the fund.
I. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate funds.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of the applicable premium or
discount. Issuance costs are reported as deferred charges.
Fund Financial Statements
The fund financial statements do not present long-term debt but are shown in the Reconciliation of the
Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets.
J. Property Taxes
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1
of each year. Property taxes become delinquent on December 10 and April 10, for the first and second
installments, respectively. The lien date is January 1. The County of San Diego, California (County)
bills and collects property taxes and remits them to the City according to a payment schedule
established by the County.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and
can increase the property tax rate no more than 2% per year or the current CPI, whichever is less. The
City receives a share of this basic tax levy proportionate to what it received during the yeazs 1980-1981.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the
taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date
are not considered available as a resource that can be used to finance the current year operations of the
City and, therefore, are not recorded as revenue until collected.
No allowance for doubtful accounts was considered necessary
1-~3
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K PublicFaciiitiesFinancing
Interest costs incurred from the date of borrowing to the completion of the improvement project(s) are
capitalized, net of interest earnings, on all proprietary fund assets acquired with tax-exempt debt.
L. Net Assets
For government-wide and proprietary fund financial statements, net assets are categorized as follows:
Invested in Coital Assets, Net o{ Related Debt -This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt that attributed to the acquisition,
construction, or improvement of the assets.
Restricted Net Assets -This amount is restricted by external creditors, grantors, contributors, or laws
or regulations of other governments.
Unrestricted Net Assets -This amount is all net assets that do not meet the definition of "invested in
capital assets, net of related debt" or "restricted net assets:'
When expense are incurred for purposes for which both restricted and unrestricted net assets are
available, the City's policy is to apply restricted net assets first.
M. Fund Balances
For governmental fund financial statements, fund balances are categorized as follows.
Nonspendable -Items that cannot be spent because they are not in spendable form, such as prepaid
items and inventories, items that are legally or contractually required to be maintained intact, such
as principal of an endowment or revolving loan funds.
ResMcfed -Restricted fund balances encompass the portion of net fund resources subject to
externally enforceable legal restrictions. This includes externally imposed restrictions by creditors,
such as through debt covenants, grantors, contributors, laws or regulations of other govemments, as
well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed -Committed fund balances encompass the portion of net fund resources, the use of
which is constrained by limitations that the government imposes upon itself at its highest level of
decision making, normally the governing body, and that remain binding unless removed in the
same manner. The City Councfl is considered the highest authority for the City.
Asst ed -Assigned fund balances encompass the portion of net fund resources reflecting the
government's intended use of resources. Assignment of resources can be done by the highest level
of decision making or by a committee or official designated for that purpose. The City Council has
authorized the City Manager for that purpose.
1-~4
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
M. Fund Balances, Continued
Unassigned -This amount is for any portion of the fund balances that do not fall into one of the
above categories.
When expenses are incurred for purposes for which both restricted and unrestricted fund balances are
available, the City's policy is to apply restricted fund balances first, then unrestricted fund balances as
they are needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the
City uses the unrestricted resources in the following order: committed, assigned, and unassigned.
N. Use of Estimates
The preparation of basic financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions that affect the reported amounts and disclosures. Actual results could
differ from these estimates and assumptions.
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The following is a summary of pooled cash and investments, including restricted cash and investments at
June 30, 2011:
Government-Wide Statement of Net Assets Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Assets Total
Cash and investments $134,464,312 $ 62,516,958 $196,981,270 $ 7,701,829 $204,683,099
Restricted cash and investments:
Held by City 6,356,784 - 6,356,784 - 6,356,784
Held by fiscal agents 17,071,185 - 17,071,185 72,923,442 89,994,627
Total cash and investments $157,892,251 $ 62,516,958 $220,409,239 $ 80,625,271 $301,034,510
Cash, cash equivalents, and investments consisted of the following at June 30, 2011:
Petty cash $ 6,050
Deposits with financial institution 15,634,070
Investments 195,399,764
Investments held by bond trustee 89,994,626
Total cash and investments $301,034,510
1-~5
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
A. Cash Deposits
The carrying amount of the City's cash deposits were $15,634,070 at June 30, 2011. Bank balances before
reconcIling items were $16,957,105 at that date, the total amount of which was insured or collateralized with
securities held by the pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California
law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a
value of 150% of the City's total cash deposits. The Agency may waive collateral requirements for cash
deposits, which are fully insured by the Federal Deposit Insurance Corporation. The City, however, has
not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, exceptfor funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on an accounting period basis to the vazious funds based on the period-end cash
and investment balances. Interest income from cash and investments with fiscal agents is credited directly
to the related fund.
B. Investments
As of June 30, 2011, the City had the following investments and maturities:
Investment Type
LAIF
Time Depositr
San Diego CounTy Investment Pool
CalTnvst Short-Term Fund
Corporate Bonds
Federal Home Loan Bank
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Held by bond trustee:
U.S. Treasury
Investment Agreements
Mutual Funds
LAIF
Cash
Total
Investment Maturities
Fair V aloe 1 year or fewer 1 to 2 years 2-3 yeazs 3-4 years 45 yeazs Over 5 years
$ 45,496,557 $ 45,496,557 $ - $ - $ - $ - $ -
310,000 310,000 - - - - -
5,045,375 5,045,375 - - - - -
1,013,610 1,013,610 - - - - -
4,061,560 4,061,560 - - - - -
3Q095,500 - 2,034,880 12,071,940 15,988,680 - -
34,023,640 - - 7,006,430 14,979,180 12,038,030 -
47,383,660 - - 13,029,329 27,352,711 7,001,620 -
27,969,561 - 3,010,080 14,977,591 - 9,982,190 -
2,120,780 2,120,780 - - - - -
14,897,830 - 1,132,000 - - - 13,765,830
62,647,717 62,647,717 - - - - -
10,251,713 10,251,713 - - - - -
76,587 76,587 - - - - -
$285,394,39D $131,023,899 $ 6,176,960 $ 47,085,290 $ 58,320,571 $ 29,021,840 $ 13,765,830
`I 6
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
B. Investments, Continued
Investments Authorized by the California Government Code and the City's Investment's Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies
certain provisions of the California Government Code (or the City's investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does
not address investments of debt proceeds held by bond trustee that are governed by the provisions of
debt agreements of the City, rather than the general provisions of the California Government Code or
the City's investment policy.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Hivestment Type Maturity Portfolio* One Issuer
Bankers' Acceptance 180 days 40 % 30
Negofiable Certificates of Deposits 5 years 30% Nmie
Commercial Paper 270 days 25% 10
State and Local Agency Bond Issues 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securifites - 5 years None None
Repurchase Agreement 90 days None None
Reverse-Purchase Agreements 92 days 20 % None
Medium-Term Corporate Notes 5 years 30% None
Time Certificates of Deposits 3 years None None
Money Market Funds N/A 15 % None
Local Agency Investment Fund (LATE) N/A None $40 MHlion**
Investment Trust of California (CalTrust) N/A None None
* Excluding amounts held by bond trustee that are not subject to Calffornia Government Code restriction.
** Maximum is $40 million per account.
-~°7
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
B. Investments, Contittued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement,
rather than the general provisions of the California Government Code or the City's investment policy.
The table below identifies certain provisions of these debt agreements that address interest rate risk,
credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio One Issuer
U.S. Treasury Obligations None None None
Federal Home Loan Mortgage Corporation None None None
Farm Credit Banks None None None
Federal Home Loan Banks None None None
Federal National Mortgage Association None None None
Student Loan Marketing Association None None None
Financing Corporation None None None
Resolution Funding Corporation None None None
Certificates of Deposits, Time Deposits and Bankers' Acceptance 30 days None None
Commercial Paper 270 days None None
Money Market Funds None None None
State Obligations None None None
Municipal Obligations None None None
Repurchase Agreements None None None
Investment Agreements None None None
Local Agency Investment Fund (LATE) None None None
C. Risk Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's
investment policy provides that final maturities of securities cannot exceed five years. Specific
maturities of investments depend on liquidity needs. As of June 30, 2011, the City's pooled cash and
investments had the following maturities:
Maturity Percentage of Investment
Less than one year 29%
One to two years 3 %
Two to tiuee years 24 %
Three to four years 29 %
Four to five years 15
The weighted average maturity of the portfolio was 2.4 years.
1~8
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
C. Risk Disclosures, Continued
Credif Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. To be eligible to receive City money, a bank, savings association, federal
association, or federally insured industrial loan company must receive an overall rating of not less than
"satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its
record of meeting the credit needs of California's communities, including low- and moderate-income
neighborhoods.
The City's investments are rated by the nationally recognized statistical rating organizations as follows:
Standazd
Investment Type Fair Value
LAIF $ 45,496,557
Time Deposits 310,000
San Diego County Investment Pool 5,045,375
CalTrust Short-Term Fund 1,013,610
Corporate Bonds 4,061,560
Federal Home Loan Bank 30,095,500
Federal National Mortgage Association 34,023,640
Federal Home Loan Mortgage Corporation 47,383,660
Federal Farm Credit Bank 27,969,861
$ 195,399,763
Custodial Credit Risk
Moody's & Poor's
Not Rated Not Rated
Not Rated Not Rated
Not Rated AAAf
Not Rated Aaf
Aaa AAA
Aaa AAA
Aaa AAA
Aaa AAA
Aaa AAA
Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be
able to recover the value of its investments or collateral securities that are in the possession of an
outside pazty. All securities, with the exception of LAIF and other pooled investments, are held by a
third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank.
Concentration of Credit Risk
The investment policy of the City contains ]irhitations on the amount that can be invested ni any one issuer
beyond that stipulated by the California Government Code. Investments in any one issuer that represent
5% or more of total City's investments are as follows:
Issuer
Federal Home Loan Bank
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Investment Type Fair Value
Federal Agency Securities $ 30,095,500
Federal Agency Securities 34,023,640
Federal Agency Securities 47,383,660
Federal Agency Securities 27,969,861
1-~9
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Investments in Loca l Agency Investment Fund
The City is a participant in LAIF which is regulated by California Government Code Section 16429
under the oversight of the. Treasurer of the State of California. The City's investments u1 LAIF at
June 30, 2011 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/or that have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from pool of assets such as principal and interest repayments from
a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2011, the City had $45,496,557 invested in LAIF, which had invested 5.01% of the pool
investment funds in Medium-Term and Short-Term Structured Notes and Asset-Backed Securities.
3. RECEIVABLES
A. Accounts Receivable
At June 30, 2011, the City had the following accounts and other receivable:
Governmental Business-Type
Activities Activities Total
Sewer service fees $ 80,485 $ 4,489,602 $ 4,570,087
Staff time and other reimbursement 1,161,691 - 1,161,691
Parking meter 50,115 - 50,115
Miscellaneous 12,996 - 12,996
Total $ 1,305,287 $ 4,489,602 $ 5,794,889
B. Taxes Receivable
At June 30, 2011, the City had the following taxes receivable:
Governmental
Activities
Sales Tax $ 6,454,177
Highway Users Tax 354,202
Property Tax 990,048
Utilities Users Tax 542,568
Transient Occupancy Tax 255,888
Fraztchise Fee Tax 1,524,276
Total $ 10,421,159
-~()
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. RECEIVABLES, Continued
C. Loans Receivable
At June 30, 2011, the City had the following loans receivable, including principal and accrued interest:
Governmental AMivities
Principal Deferred Interest Total
South Bay Community Services $ 3,867,065 $ 1,956,287 $ 5,823,352
Heritage (South Bay community Villas L.P.) 4,400,000 1,261,710 5,661,710
Boys and Girls Club Construction Loan 93,750 - 93,750
Rancho Vista Housing (Chelsea Invesnnent Corporation) 1,500,000 308,220 1,808,220
St. Regis Park (Chelsea Investment Corporation) 1,387,152 917,415 2,304,567
Chula Vista Rehabilitation CHIP Loans 2,187,748 168,025 2,355,773
Park Village Apts (Civic Center Barrio Housing Corporation) 204,531 - 204,531
Mobile Home Assistance Programs 55,952 - 55,952
Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000 953,937 6,633,937
Main Plaza (Alpha III Development Inc.) 1,800,000 336,813 2,136,813
Seniors on Broadway (MAAC Project) 3,511,194 542,449 4,053,643
The Landings (Chelsea Investment Corporation) 5,260,000 205,344 5,465,344
First Time Home Buyers Program 917,754 - 917,754
Neighborhood Stablization First Time Home Suyer Program 531,000 6,682 537,682
NSP Rental Housing Program 1,000,000 30,000 1,030,000
Commuity Energy Retrofit Program 12,781 - 12,781
Total $ 32,408,927 $ 6,686,882 $ 39,095,809
South Bat~Communitu Services
In 1998, the Agency entered into several loan agreements with South Bay Community Services, a
California non-profit public benefit corporation. Prior years' loan was made to South Bay Community
Services for the purpose of purchasing a 14-unit apartment building. In fiscal year 1998, a loan to fund
the Trolley Terrace 13-unit project and the Cordova Village 40-unit project were made. These projects
are to provide housing to very low-income families. The funds were made available to the City through
a drawdown from the U.S. Department of Housing and Urban Development. Included in the current
year balance is the $887,995 loaned by the Agency. Deed of trusts and assignment of rents secure the
notes. Principal and interest are payable annually out of any and all residual receipts derived from the
property and/or operation of the property. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund and in the Agency's Low & Moderate Housing Fund. Interest accrues annually
on the unpaid balance from rates ranging from 3% to 6%. At June 30, 2011, the outstanding balance of
the loan was $5,823,352 which included deferred interest accrual of $1,956,287.
1-~1
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. RECEIVABLES, Continued
C. Loans Receivable, Continued
Heritage (South BaU Community Villas, L.P.)
In 2002, the Agency entered into a loan agreement with South Bay Community Villas, L.P. for the
development of the Heritage Town Center multi-family rental housing project. The Redevelopment
Agency's (Agency) assistance is in the form of residual receipt loan secured by a promissory note and
deed of trust. The outstanding principal and interest on the loan will be repaid over fifty five years and
accrues interest at 3% per annum. Payment of principal and interest on the Agency loan shall be made
on an annual basis, out of a fund equal to fifty percent of the net cash flow of the project (residual
receipts) after debt service on bonds, payment of deferred developers fee, and reasonable operating
expense have been paid. Fund balance has been reserved in the Low and Moderate Income Housing
Fund. At June 30, 2011, the outstanding balance of the loan was $5,661,710 which included deferred
interest accrual of $1,261,710.
Botts and Girls Club Construction Loan
The City has made a loan of $250,000 for construction of a new facility for the Boys and Girls Club. The
loan is interest free and will be repaid with equal annual payments over 20 years, starting in February
1999. Fund balance has been reserved in the General Fund. At June 30, 2011, the outstanding balance of
the loan was $93,750.
Rancho Vista Housing (Chelsea Investment Corporation)
In 2000, the City and Agency loaned $1,500,000 to CIC Eastlake, L.P. for the development and operation
of Rancho Vista Housing project, a multifamily affordable housing project. The loan is secured by
promissory notes and deed of trust. The outstanding principal and interest amount of the loan is to be
repaid over fifty-five (55) years and accrues at the simple interest rate of three (3%) percent per annum.
Payment of principal and interest, or portions thereof, on the loan is made on an annual basis, out of a
fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2011, the outstanding
balance of the loan was $1,808,220 which included deferred interest accrual of $308,220.
St Regis Park (Chelsea Investment Corporation)
In 2000, the Agency entered into a loan agreement with Chelsea Investment Corporation for the
acquisition and rehabilitation of the 119-unit Pear Tree Apartments at 1025 Broadway. All units are
affordable to low-income households. The loan is secured by a Deed of Trust and will accrue 6%
interest for 52 years. Payment of principal and interest is made on an annual basis out of a fund equal
to 90% of the residual receipts. At June 30, 2011, the outstanding balance of the loan was $2,304,567
which included deferred interest accrual of $917,415.
Chula Vista Rehabilitation CHIP Loans
The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the duect
control of the Agency. CHIP offers deferred and low interest rate home improvement loans to qualified
borrowers residing within a target area. Loan repayments are re-deposited into the program cash
accounts and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund and in the Agency's Low & Moderate Housing Fund. At June 30, 2011, the
outstanding balance of the loan was $2,355,773 which included deferred interest accrual of $168,025.
1-8~2
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. RECEIVABLES, Continued
C. Loans Receivable, Continued
Park Village Apartments (Civic Center Barrio Housing Coroorafion
In 1991, the Agency entered into a loan agreement with the Civic Center Barrio Housing Corporation, a
California non-profit public benefit corporation. The loan was made for the purchase of land and the
development of a 28-unit low-income housing project: During 1992, the loan was assigned to Park
Village Apartments Ltd., a California limited partnership in which Civic Center Barrio Housing
Corporation is the managing general partner. The loan is secured by a deed of trust on the property
and assignment of rents. Principal and interest are payable monthly. In 2009, a second amendment to
the loan was entered into changing the interest from 5% to 3% per annum on the unpaid principal
balance of the note. Fund balance has been reserved in the Redevelopment Agency Special Revenue
Fund. At June 30, 2011, the outstanding balance of the loan was $204,531.
Mobile Hame Assistance Programs
The Agency entered into agreements with eligible residents of the Orange Tree Mobile home Park,
whereby the Agency loaned $250,030 as permanent financing assistance to residents for the purpose of
purchasing certain mobile home property. The loans are secured by deeds of trust on the property and
mature in 2017 or when the property is sold. Contingent interest will be charged based on calculations
specified in the agreement. Fund balance .has been reserved in the Redevelopment Agency Special
Revenue Fund. At June 30, 2011, the outstanding balance of the loan was $55,952.
Los Vecinos (Wakeland Housing and Development Corporation)
In 2008, the Agency entered into a loan agreement with Wakeland Housing and Development
Corporation to assist the borrower in constructing 41 affordable multifamily units for occupancy by
extremely low, very low and lower income households. The loan amount of $5,680,000 was funded by
the Agency's Low & Moderate Income Housing Fund. The loan bears an interest rate of 5% per annum.
Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the
"Residual Receipts" for years 1-30, 75% of the Residual Receipts" for years 31-54, unti155 years from the
date the Improvement are Placed in Service, at which time all principal and unpaid interest is due and
payable. The improvements were placed in service on February 7, 2008. At June 30, 2011, the
outstanding balance of the loan was $6,633,937 which included deferred interest accrual of $953.937.
Main Piaza (Alpha III Devel~ment Inc.)
In 2003, the Agency entered into a loan agreement with Main Plaza, LP (Borrower) to assist the
borrower in acquiring and improving certain real property for occupancy by very low, lower and low
and moderate income households. The loan bears an interest rate of 3% per annum. The loan is due
and payable on the date that is 55 years from the date of the Agency's issuance of the Certificate of
Completion, which is in 2061. At June 30, 2011, the outstanding balance of the loan was $2,136,813
which included deferred interest accrual of $336,813.
1-~3
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. RECEIVABLES, Continued
C. Loans Receivable, Continued
Seniors on Broadway (MAAC Prot
The Agency entered into a loan agreement with Seniors on Broadway Limited Partnership to assist the
borrower in acquiring and improving certain real property for occupancy by very low, lower and low
and moderate income households. The loan bears an interest rate of 3% per annum. The loan is due
and payable on the date that is 55 years from the date of the Agency's issuance of the Certificate of
Completion. At June 30, 2011, the outstanding balance of the loan was $4,053,643 which included
deferred interest accrual of $542,449.
The Landings (Chelsea Investment Corporation)
The Agency entered into a loan agreement with CIC Landings, L.P. to assist the borrower in
constructing 92 affordable multifamily apartment units for occupancy by extremely low, very low and
lower income households. The loan bears an interest rate of 3% per annum. The loan is due and
payable each and every year commencing with the first anniversary of the issuance of the Certificate of
Completion by the City in an amount equal to 50% of the residual receipts. At June 30, 2011, the
outstanding balance of the loan was $5,465,344 which included deferred interest accrual of $205,344.
First Time Home Buffers program
The Chula Vista First-Time Homebuyer Program is under the direct control of the Housing Authority
and funded through U.S. Department of Housing and Urban Development HOME funds. Currently
administered by Community HousingWorks, the Program offers equity share deferred home gap
financing loans to qualified borrowers. Loan repayments are re-deposited into the program cash
accounts and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund. At June 30, 2011, the outstanding balance of the loan was $917,754.
Neighborhood Stabilization First Time Home Bui.~program
The Chula Vista Neighborhood Stabilization First-Time Homebuyer Program (NS FTHB) and
Neighborhood Stabilization Resale Program (NSRP) are under the direct control of the Agency and
funded through U.S. Department of Housing and Urban Development Neighborhood Stabilization
funds. Currently administered by Community HousingWorks, the Program offers equity share
deferred home gap financing loans to qualified borrowers and an acquisition, rehabilitation, and resale
option to those qualifying in targeted areas. Loan repayments are re-deposited into the program cash
accounts and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund. At June 30, 2011, the outstanding balance of the loan was $537,682 which
included deferred interest accrual of $6,682.
1 ~8 4
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. RECEIVABLES, Continued
C. Loans Receivable
NSP Rental Housing program
The Agency entered into a loan agreement with San Diego Community Housing Corporation to acquire
and rehabilitate rental housing for very low income households. The loan is secured by promissory
notes and deed of trust. The outstanding principal and interest amount of the loan will be repaid over
fifty-five (55) years and accrues at the simple interest rate of three (3%) percent per annum. Principal
and interest are payable annually out of a fund equal to 50% of residual receipts derived from the
property and/or operation of the property. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund. At June 30, 2011, the outstanding balance of the loan was $1,000,000.
Communitt~Retro~it program
The Chula Vista Community Energy Revolving Loan Fund (RLF) is under the direct control of the City
of Chula Vista and was capitalized through the American Recovery & Reinvestment Act. The RLF
offers fully amortized low-interest rate home energy improvement loans to qualified borrowers residing
within Chula Vista. The loans are secured by a deed of trust on the properties. Principal and interest
are payable monthly. Interest accrues annually on the unpaid principal balance of the notes. Loan
repayments are re-deposited into the program cash accounts and are redistributed as future loans.
Fund balance has been reserved in the General Fund. At June 30, 2011, the outstanding balance of the
loan was $12,781.
4. INTERFUND TRANSACTIONS
Due To, Due From
As of June 30, 2011, balances were as follows:
Due From Other Funds
Due To Other Funds
Sundry Grants Nonmajor
Special Revenue Govemmental
Fund Funds Total
General Fund
RDA Special Revenue Fund
Nonmajor Governmental Funds
Total
$ 2,975,026 $ 742,451 $ 3,717,477
2,202,044 2,202,044
- 39,012 39,012
$ 5,177,070 $ 781,463 $ 5,958,533
The amounts of due to and due from for all funds represent one day loans which were made to cover
negative cash situations that resulted from reimbursements not being received as of June 30, 2011.
1-~5
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
4. INTERFUND TRANSACTIONS, Continued
Long-Term Advances
As of June 30, 2011, balances were as follows:
RDA
Debt Service
Advances To Other Funds Fund
General Fund
RDA Special Revenue Fund
Developer Impact Capital Projects Fund
Park Acquisition Development Fund
Nonmajor Governmental Funds
Sewer Enterprise Fund
Total
Advances From Other Funds -
12,607,822
5,046,796
4,702,030
City
Debt Service
Fund Nonmajor
Enterprise
Fund
Total
$ 1,542,182 $ - $ 14,150,004
- - 5,046,796
11,327,322 - 11,327,322
9,651,138 - 9,681,138
- - 4,702,030
14,066,534 4,039,444 18,105,978
$ 22,356,648 $ 36,617,176 $ 4,039,444 $ 63,013,268
The Agency has entered into reimbursement agreements with the City to reimburse the City for certain
lease payments made by the City under various lease agreements. The balance as of June 30, 2011, was
$11,316,691.
The City Council authorized various loans to the Agency for operating purposes. The terms of the loans are
indefinite. The balance. as of June 30, 2011 was $1,291,131.
The City Council authorized loans to Public Facilities DIF for $12,681,273 and Western TDIF for $188,231.
The Public Facilities DIF loan for $5,200,000 is due and payable in 13 years, with the first payment due in
fiscal year 2012/2013 at an interest rate of 3.80% based on the pooled investment rate. The Public Facilities
DIF loan for $5,300,000 is due and payable in 13 years, with the first payment due in fiscal year 2012/2013
at an interest rate of .56 % based on the pooled°investment rata
The City Council authorized loan to Western PAD from Eastern PAD in the amount of $9,630,000 to acquire
the 14.41 acre site located in the lower Sweetwater Valley owned by the Redevelopment Agency. The loan
will be repaid as funds become available, either as a result of credit acquisitions by the Agency or the
payment of PAD fees by developers in western Chula Vista. The Agency will ensure that PAD funds are
repaid to fully fund the development of the park for which they were originally collected. The balance was
$9,681,138 at June 30, 2011.
The Redevelopment Agency Capital Projects Fund advanced funds in the amount of $4,702,030 to
Redevelopment Agency Debt Service Fund for capital improvement projects and operating expenses and
the Redevelopment Agency Special Revenue Fund advanced $5,046,796 to pay the ERAF obligation. The
terms of the advances are indefinite. The balance was $9,748,826 at June 30, 2011.
The City Council authorized loans with indefinite terms from Trunk Sewer fund to Salt Creek for
$16,519,894, Storm Drain fund for $811,360, and $774,724 from Sewer Facility fund for capital improvement
projects.
1-~$ 6
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
4. INTERFUND TRANSACTIONS, Continued
Transfers
Transfers for the year ended June 30, 2011, were as follows:
Transfers Out
General Fund
Sundry Grants Specal Revenue Fund
RDA Special Revenue Fund
RDA Debt Service Fund
City Debt Service Fund
Development Impact Fund
Nonmajor Governmental Fund
Sewer Enterprise Fund
Nonmajor Enterprise Funds
Total
Transfers In
Park
Sundry Grants RDA City Acquisitlon Nonmajor
General Special Debt Debt Development Governmental
Fund Revenue Fund Service Fund Service Fund Fund Fund Total
$ - $ 245,761 $ - $ - $ - $ 6,669,547 $ 6,915,308
239,410 - - - - 808,656 1,048,066
- _ _ - - 4,394,500 4,394,500
_ _ - - 856,613 856,613
_ _ _ - 9,630,000 - 9,630,000
_ _ _ - - 69,192 69,192
7,877,129 105,000 15,717,464 103,626 - 4,391,822 28,195,241
3,105,721 - - - - - 3,105,721
81997 _ - 250,000 - 331,997
$ 11,304,257 $ 350,761 $ 15,717,464 $ 353,826 $ 9,630,000 $ 17,190,330 $ 54,546,638
General Fund -Operating support to reimburse the General Fund for City staff services and equipment.
Total amount of reimbursement was $11,304,257.
Sundry Grants Special Revenue Fund- transferring the General Fund's contribution to the Nature Center
exhibit in the amount of $206,499, matching the federal grant in the amount of $39,262 and reimbursing
CDBG in the amount of $105,000 for previously funded assessment district improvement project. Total
transfers for this project was $350,761.
RDA Debt Service - Fundmg the debt services fund for repayment of various long-term obligations
amounted to $15,717,464.
Cite Debt Service -Funding debt service funds for repayment of various long-term obligations amounted to
$353,826.
Park Acquisition Development Fund -Funding the acquisition of 14.41 acre site located in the lower
Sweetwater Valley and borrowing the funds in the amount of $9,630,000 from the Eastern PAD to the
Western PAD.
Non-major Governmental Funds -Funding debt service funds for repayment of various long-term obligations
and to fund various capital improvement projects amounted to $12,747,431. Other transfers were for
operating support, staff, services and capital improvement projects in the amount of $9,000 from Home
Program, $39,399 from CDBG, and $4,394,500 from Low and Moderate Income Housing to Chula Vista
Housing Authority.
~ -~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
5. CAPITAL ASSETS
Government-Wide Financial Statements
Summary of changes in governmental activities capital assets for the year ended June 30, 2011 are as follows:
Capital assets, not being depreciated:
Land
Construction in progress
Tota] capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
bnpiovements other than buildings
Machinery and equipment
Infrastructure
Subtotal
Less accumulated depreciation
Buildings
Improvements other than buildings
Maclunery and equipment
Infrastructure
Subtotal
Total capital assets, being depreciated
Total capital assets, net
Balance CIP Balance
July 1, 2010 Additions Deletions Transfers June 30, 2011
$ 83,775,771 $ - $ - $ - $ 83,775,771
28,190,910 16,551,467 - (20,873,127) 23,869,250
111,966,681 16,551,467 - (20,873,127) 107,645,021
213,631,082 - - 200,000 213,831,082
119,771,162 - - 6,344,363 126,115,525
34,710,585 1,088,224 (854,085) - 34,944,724
622,119,312 - - 14,328,764 636,448,076
990,232,141 1,088,224 (854,085) 20,873,127 1,011,339,407
(35,935,061) (4,276,313) - - (40,214,374)
(33,387,983) (2,395,423) - - (35,783,406)
(30,154,449) (1,463,106) 853,332 - (30,764,223)
(185,490,280) (17,258,414) - - (202,748,694)
(284,970,773) (25,393,256) 853,332 - (309,510,697)
705,261,368 (24,305,032) (753) 20,873,127 701,828,710
$ 817,228,049 $ (7,753,565) $ (753) $ - $ 809,473,731
Governmental activities depreciation expenses for capital assets for the year ended June 30, 2011 are as
follows:
General government $ 1,354,781
Public safety 2,335,859
Public works 18,467,304
Parks and recreation 2,542,247
Library 218,788
Internal service 474,277
Total depreciation expense $ 25,393,256
-~8
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
5. CAPITAL ASSETS, Continued
Government-Wide Financial Statements, Contirated
Summary of changes in business-type activities capital assets for the year ended June 30, 2011 are as follows:
Balance Balance
July 1, 2010 Additions Deletions June 30, 2011
Capital assets, not being depreciated:
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Machinery and equipment
Infrastructure
Subtotal
Lessaccumulated depreciation
Maclnery and equipment
Infrastructure
Subtotal
Total capital assets, being depreciated
Total capital assets, net
$ 2,132,763 $ 569,277 $ - $ 2,702,040
2,132,763 569,277 - 2,702,040
13,713,132
226,626,198 155,439
24,867 (248,299)
- 13,620,272
226,651,065
240,339,330 180,306 (248,299) 240,271,337
(9,243,687)
(80,843,986) (1,222,923)
(5,355,749) 243,553
- (10,223,057)
(86,199,735)
(90,087,673) (6,578,672) 243,553 (96,422,792)
150,251,657 (6,398,366) (4,746) 143,848,545
$ 152,384,420 $ (5,829,089) $ (4,746) $ 146,550,585
Depreciation expenses for business-type activities for the year ended June 30, 2011 are as follows:
Sewer $ 5,671,470
Transit 847,202
Sewer DIFS 60,000
Total depreciation expense $ 6,578,672
1-~9
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT
Governmental Activities Long-Term Debt
Summary of changes in goverrunental activities long-term debt for the year ended June 30, 2011 are as
follows:
Classification
Tax Allocation Bonds
Pension Obligation Bonds
Certificate of Participation
ERAF Loan
Section 108 Loan
Notes Payable
Capital Leases
Bond Premium
Bond Discount
Total
Balance Debt Debt Balance Due within Due in More
July 1, 2010 Issued Refired June 30, 2011 One Yeaz Than One Year
$ 44,925,000 $ - $ (940,000) $ 43,985,000 $ 980,000 $ 43,008,000
4,980,000 - (2,325,000) 2,655,000 2,655,000 -
139,700,000 - (3,640,000) 136,060,000 3,770,000 132,290,000
l,oss,ooo - (170,000) 8ss,ooo 17s,ooo 710,000
9,213,000 - (302,000) 8,911,000 317,000 8;594,000
1,035,238 42,286 (143,909) 933,615 190,850 742,765
1,488,390 - (391,086) 1,097,304 412,037 685,267
25,350 - (1,181) 27,169 1,181 2s,988
(1,859,771) - 85,029 (1,774,742) (85,029) (1,689,713)
$ 200,565,207 $ 42,286 $ (7,828,147) $ 192,779,346 $ 8,416,039 $ 184,363,307
A. TazAllocationBonds
2006 Senior Tax Allocation
Refunding Bonds, Series A
2006 Subordinate Tax Allocation
Refunding Bonds, Series B
2008 Tax Allocation
Refunding Bonds
Total
Classificarion
Balance Debt Debt Balance Due within Due in More
July 1, 2010 Issued Retired June 30, 2011 One Yeaz Than One Year
$ 12,100,000 $ - $ (500,000) $ 11,600,000 $ 520,000 $ 11,080,000
11,200,000 - (440,000) 10,760,000 460,000 10,300,000
21,625,000 - - 21,625,000
21,625,000
$ 44,925,000 $ - $ (940,000) $ 43,985,000 $ 980,000 $ 43,005,000
2006 Senior Tax Allocation Re~undinQ Bonds, Series A
In July 2006, the Agency issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount
of $13,435,000 to refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project
1994 Senior Tax Allocation Refunding Bonds, Series A, and to satisfy the reserve requirement for the
Bonds and provide for the costs of issuing the Bonds. The original bond proceeds were used in the
acquisition of property, demolition, relocation, public improvements and funding the Low and Mod
Income Housing Project. The bonds consist of serial bonds which mature in 2028. Interest is payable
semiannually on March 1 and September 1 at interest rates ranging from 4.00% to 4.60%. The bonds are
subject to optional redemption on any interest payment date on or after September 1, 2012, at various
redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency and
other funds held under the indenture. The balance outstanding at June 30, 2011 was $11,600,000.
1-~0
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
A. Tax Allocation Bonds, Continued
2006 Senior Tax Allocation Re nding Bonds Series A, Continued
The annual debt service requirements for the 2006 Senior Tax Allocation Refunding Bonds, Series A
outstanding at June 30, 2011 are as follows:
Yeaz Ending
June 30. Principal Interest
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2028
Total
520,000 $ 497,545
540,000 474,995
565,000 450,133
590,000 424,145
615,000 398,570
Total
$ 1,017,545
1,014,995
1,015,133
1,014,145
1,013,570
3,475,000 1,581,001 5,056,001
4,290,000 734,465 5,024,465
1,005,000 46,805 1,051,805
$ 11,600,000 $ 4,607,659 $ 16,207,659
2006 Subordinate Tax Allocation Re nding Bonds, Series B
In July 2006, the Agency issued $12,325,000 2006 Subordinate Tax Allocation Refunding Bonds, Series B
to refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax
Allocation Refunding Bonds, Series C and D, and to satisfy the reserve requirement for the Bonds and
provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of
property, demolition, relocation, public improvements and funding the Low and Mod Income Housing
Project. The bonds consist of $7,995,000 serial bonds which mature from 2007 to 2021 in amounts
ranging from $290,000 to $735,000 and term bonds of $4,330,000 which mature in 2028. Interest is
payable semiannually on April 1 and October 1 at interest rates ranging from 4.00% to 6.00%. The
bonds aze subject to optional redemption on any interest payment date on or after October 1, 2012, a1
various redemption prices. The bonds are payable solely from certain tax increment revenues of the
Agency and other funds held under the indenture. The balance outstanding at June 30, 2011 was
$10,760,000.
1-~1
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
A. Tax Allocation Bonds, Continued
2006 Subordinate Tax Allocation Refunding Bonds, Series B, Continued
The annual debt service requirements for the 2006 Subordinate Tax Allocation Refunding Bonds, Series
B outstanding at June 30, 2011 are as follows:
Year Ending
June 30. Principal
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2028
Total
2008 Tax A1locarion Refundin B~ onds
460,000 $
480,000
500,000
525,000
550,000
3,180,000
4,090,000
Interest
531,384 $
510,234
487,934
464,096
438,559
1,743,446
814,603
Total
991,384
990,234
987,934
989,096
988,559
4,923,446
4,904,603
975,000 51,844 1,026,844
$ 10,760,000 $ 5,042,100 $ 15,802,100
In July 2008, the Agency issued the 2008 Tax Allocation Refunding Bonds in the amount of $21,625,000
to refinance the Agency's outstanding Merged Redevelopment Project 2000 Tax Allocation Bonds, to
satisfy the reserve requirement for the Bonds, to provide for the costs of issuing the Bonds, and to
provide funds to finance or refinance redevelopment activities. The bonds consist of $11,570,000 serial
bonds which mature from 2014 to 2028 in amounts ranging from $575,000 to $1,020,000 and term bonds
of $3,345,000 and $6,710,000 which mature in 2031 and 2036. respectively. Interest is payable
semiannually on March 1 and September 1 at interest rates ranging from 4.00% to 4.94%. The bonds are
subject to optional redemption on any interest payment date on or after September 1, 2019, at various
redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency
and other funds held under the indenture. The balance outstanding at June 30, 2011 was $21,625,000.
1-~2
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
A. Tax Allocation Bonds, Continued
2008 Tax Allocation Re nding Bonds, Continued
The annual debt service requirements for the 2008 Tax Allocation Refunding Bonds outstanding at
June 30, 2011 are as follows:
Yeaz Ending
June 30. Principal Interest Total
2012 $ - $ 963,636 $ 963,636
2013 - 963,636 963,636
2014 - 963,636 963,636
2015 575,000 952,136 1,527,136
2016 600,000 928,636 1,528,636
2017-2021 3,360,000 4,257,781 7,617,781
2022-2026 4,110,000 3,491,690 7,601,690
2027-2031 5,105,000 2,471,525 7,576,525
2032-2036 6,405,000 1,137,016 7,542,016
2037 1,470,000 34,913 1,504,913
Total $ 21,625,000 $ 16,164,605 $ 37,789,605
Pledged Revenues
The Agency has pledged tax revenues to the repayment of the Agency's debts through the final
maturity of the Bonds, or early retirement of the Bonds, whichever comes first.
Tax revenues consist of tax increment revenues allocated to the Agency's project areas pursuant to
Section 33670 of the Redevelopment Law excluding that portion of such tax increment revenues
required to be paid under Tax-Sharing Agreements unless the payment of such amounts has been
subordinated to payment of debt services on the Bonds. Tax increment received in 2010-2011 was
$13,822,938 and total debt service of all Tax Allocation Bonds paid was $2,972,666. The Bonds required
21% of net revenues. In future years, annual principal and interest payments on the Tax Allocation
Bonds are expected to require 25% of tax increment revenues.
B. Pension Obligation Bands
Classification
Balance Debt Debt Balance Due within Due in More
July 1, 2010 Issued Retired June 30, 2011 One Yeaz Than One Yeaz
POB 1994 Series $ 4,980,000 $ - $ (2,325,000) $ 2,655,000 $ 2,655,000 $ -
Total $ 4,980,000 $ - $ (2,325,000) $ 2,655,000 $ 2,655,000 $ -
~-~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
B. Pension Obligation Bonds, Continued
1994 Pension Obligarion Bonds
The Pension Obligation Bonds, Series 1994 were issued by the City to pay the obligations from the City
to the California Public Employees Retirement System for the City's unfunded pension liability. The
total issue is comprised of the following: (1) Current Interest Bonds with original amount due of
$7,415,000. These bonds mature in amounts ranging from $310,000 in 1996 to $1,820,000 in 2009.
Interest is payable semi-annually on February 1 and August 1, beginning February 1, 1996, at interest
rates ranging from 6.05% to 7.875% annually; (2) $7,000,000 Term Bonds are due August 1, 2011, with a
stated annual interest rate of 8.15% and are reflected in the annual debt service schedule below; (3)
Capital Appreciation Bonds, with original amount due of $2, 371,532 matured in 2006.
These bonds mature in the initial principal amounts ranging from $800,000 in 2002 to $1,095,000 in 2005
and $480,036 in 2006. The effective annual yield on these bonds ranges from 7.690% to 8.34%. The
bonds are not limited as to payment to any special source of funds of the City. The accredited value of
the Pension Obligation Bonds at June 30, 2011 was $2,655,000.
The annual debt service requirements for the Pension Obligation Bonds outstanding at June 30, 2011 are
as follows:
Yeax Ending
June 30. Principal Interest Total
2012 $ 2,655,000 $ 107,559-- $ 2,762,859
Total $ 2,655,000 $ 107,859 $ 2,762,859
C. Certificates of Participation
Balance Debt Debt Balance
Classification
Due within Due in More
July 1, 2010 Issued Retired June 30, 2011 One Yeaz Than One Yeaz
2002 COP Police Facility $ 54,130,000 $ - $ (1,340,000) $ 52,790,000 $ 1,400,000 $ 51,390,000
2003 Refunding COP 3,205,000 - (965,000) 2,240,000 990,000 1,250,000
2004 COP Civic Ctr Ph 1 34,035,000 - (855,000) 33,180,000 885,000 32,295,000
2006 COP Civic Ctr Ph 2 18,975,000 - (480,000) 18,495,000 495,000 18,000,000
2010 Refunding COP Corp Yard 29,355,000 - - 29,355,000 - 29,355,000
Total $ 139,700,000 $ - $ (3,640,000) $ 136,060,000 $ 3,770,000 $ 132,290,000
-~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
2002 COP
In June 2002, the Chula Vista Public Financing Authority issued $60,145,000 in 2002 Certificates of
Participation to provide funds to construct the City's Police Headquarters, finance the reserve account of
the certificates, to capitalize interest during construction and to pay the cost of issuance of the
certificates. The source of repayment of the certificates is the lease payments to be made by the City to
the Authority. Interest is payable semiannually on February 1 and August 1 of each year commencing
February 1, 2003. The cerfificates mature in 2032 and principal is payable on August 1 each year
commencing August 1, 2005. As of June 30, 2011 the outstanding balance is $52,790,000.
The annual debt service requirements for the 2002 Certificates of Participation outstanding at June 30,
2011 are as follows:
Year Ending
June 30. Principal Interest Total
2012 $ 1,400,000 $ 2,513,346 $ 3,913,346
2013 1,460,000 2,456,146 3,916,146
2014 1,520,000 2,396,546 3,916,546
2015 1,585,000 2,332,465 3,917,465
2016 1,660,000 2,262,264 3,922,264
2017-2021 9,550,000 10,077,922 19,627,922
2022-2026 12,245,000 7,435,625 19,680,625
2027-2031 15,820,000 3,945,500 - 19,765,500
2032-2033 7,550,000 382,250 7,932,250
Total $ 52,790,000 $ 33,802,064 $ 86,592,064
2003 Refunding COP
In May 2003, the Chula Vista Public Financing Authority (the "Financing Authority") issued its 2003
Refunding Certificates of Participation to defease the 1993 Certificates, reimburse the City for amounts it
has advanced to prepay the equipment lease, finance a reserve account and pay for the cost of issuance
of the Certificates. The Certificates are to be repaid from lease payments made by the City to the
Authority for leasing certain property. Interest is payable semiannually on March 1 and September 1 of
each year commencing September 1, 2003. The certificates mature in 2013 and principal is payable on
September 1 each year commencing September 1, 2003. As of June 30, 2011 the outstanding balance is
$2,240,000.
The annual debt service requirements for the 2003 Refunding Certificates of Participation outstanding at
June 30, 2011 are as follows:
Year Ending
June 30. Principal Interest Total
2012 $ 990,000 $ 56,273 $ 1,046,273
2013 1,030,000 24,438 1,054,438
2014 220,000 3,850 223,850
Total $ 2,240,000 $ 84,561 $ 2,324,561
1-~35
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
2004 Civic Center Project Phase I COP
In September 2004, the Chula Vista Public Financing Authority (the "Financing Authority") issued
$37,240,000 in 2004 Certificates of Participation to provide funding for the first phase of the
reconstruction, renovation, and equipping of the City's Civic Center Complex. Proceeds will. also be
used to finance the reserve account of the certificates, to capitalize interest during construction and to
pay the cost of issuance of the certificates. The source of repayment of the certificates is the lease
payments to be made by the City to the Authority.. Interest is payable semiannually on March 1 and
September 1 of each year commencing March 1, 2006. The certificates mature in 2034 and principal is
payable on September 1 each year commencing September 1, 2006. As of June 30, 2011 the outstanding
balance is $33,180,000.
The annual debt service requirements for the 2004 Certificates of Participation Civic Center Project Phase
I outstanding at June 30, 2011 are as follows:
Yeaz Ending
June 30.
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
2032-2034
Total
2006 Civic Center Project Phase II COP
Principal Interest Total
$ 885,000 $ 1,507,361 $ 2,392,361
915,000 1,476,386 2,391,386
950,000 1,442,074 2,392,074
985,000 1,406,449 2,391,449
1,025,000 1,369,511 ` 2,394,511
5,785,000 6,186,774 11,971,774
7,145,000 4,517,420 11,962,420
8,975,000 2,991,20Q. 11,966,200
6,515,000 662,250 7,177,250
$ 33,180,000 $ 21,859,425 $ 55,039,425
In March 2006, the Chula Vista Public Financing Authority (the "Financing Authority") issued
$20,325,000 in 2006 Certificates of Participation to provide funds for the construction and equipping of
certain improvements to the Civic Center Complex of the City of Chula Vista and other existing City
facilities, fund capitalized interest, fund a reserve fund, and pay the costs incurred in connection with
the execution and delivery of the Certificates. The source of repayment of the certificates is the lease
payments to be made by the City to the Authority. Interest is payable semiannually on March 1 and
September 1 of each year commencing September 1, 2006. The certificates mature in 2036 and principal
is payable on March 1 each year commencing March 1, 2008. As of June 30, 2011 the outstanding balance
is $18,495,000.
1 Jg 6
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
2006 Civic Center Project Phase II COP, Continued
The annual debt service requirements for the 2006 Certificates of Participation Civic Center Project Phase
II outstanding at June 30, 2011 are as follows:
Year Ending
June 30. Principal Interest Total
2012 $ 495,000 $ 775,069 $ 1,270,069
2013 510,000 758,239 1,268,239
2014 530,000 740,389 1,270,389
2015 550,000 721,309 1,271,309.
2016 570,000 700,959 1,270,959
2017-2021 3,190,000 3,160,725 6,350,725
2022-2026 3,895,000 2,454,255 6,349,255
2027-2031 3,905,000 1,618,656 5,523,656
2032-2034 4,850,000 674,324 5,524,324
Total $ 18,495,000 $ 11,603,925 $ 30,098,925
2010 Re nding COP
In February 2010, the Chula Vista Public Financing Authority (Authority) issued $29,355,000 in 2010
Certificates of Participation to provide funds for the construction, reconstruction, modernization and
equipping of Phase 3 of the Civic Center Complex of the City of Chula Vista, to refinance the City's
outstanding Certificates of Pazticipation Series A of 2000 (2000 Financing Project), fund capitalized
interest, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of
the Certificates. The source of repayment of the certificates is the lease payments to be made by the City
to the Authority. Interest is payable semiannually on March 1 and September 1 of each year
commencing September 1, 2010. The certificates mature in 2033 and principal is payable on March 1
each year commencing March 01, 2014. As of June 30, 2011 the outstanding balance is $ 29,355,000.
The annual debt service requirements for the 2011 Certificates of Pazticipation Civic Center Project Phase
II outstanding at June 30, 2011 aze as follows:
Year Ending
June 30. Principal Interest Total
2012 $ - $ 1,477,206 $ 1,477,206
2013 - - 1,477,206 1,477,206
2014 1,015,000 1,477,206 2,492,206
2015 1,055,000 1,436,606 2,491,606
2016 1,085,000 1,402,319 2,487,319
2017-2021 6,205,000 6,258,719 12,463,719
2022-2026 7,875,000 4,574,419 12,449,419
2027-2031 10,175,000 2,272,875 12,447,875
2032-2034 1,945,000 161,975 2,106,975
Total $ 29,355,000 $ 20,538,531 $ 49,893,531
-~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
D. ERAF Loan
Classificafion
Balance Debt Debt Balance Due within Due in Mare
July 1, 2010 Issued Retired June 30, 2011 One Yeaz Than One Yeaz
2005 ERAF $ 430,000 $ - $ (80,000) $ 350,000 $ 50,000 $ 270,000
2006 ERAF 625,000 - (90,000) 535,000 95,000 440,000
Tota] $ 1,055,000 $ - $ (170,000) $ 885,000 $ 175,000 $ 710,000
2005 ERAF
In May 2005, the Agency participated in a $765,000 Loan Agreement with the California Statewide
Communities Development Authority to finance their 2005 share of ERAF Payments to the County
Auditor. The annual debt service payments are:
Year Ending
June 30. Principal Interest Total
2012 $ 80,000 $ 18,354 $ 98,354
2013 85,000 14,526 99,526
2014 90,000 10,356 100,356
2015 95,000 5,880 100,880
Total $ 350,000 $ 49,116 ~ $ 399,116
2006 ERAF
In May 2006, the Agency participated in a $930,000 Loan Agreement with the California Statewide
Communities Development Authority to finance their 2006 share of ERAF Payments to the County
Auditor. The annual debt service payments are:
Year Ending
June 30. Principal Interest Total
2012 $ 95,000 $ 31,052 $ 126,052
2013 100,000 25,784 125,784
2014 105,000 20,188 125,188
2015 115,000 14,282 129,282
2016 120,000 7,792 127,792
Total $ 535,000 $ 99,098 $ 634,098
~-~8
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
E. Section 108 Loan
Classification
Balance Debt
~ Debt Balance Due within Due in More
Issued
July 1, 2010 Retred June 30, 2011 One Yeaz Than One Year
Section 108 Loan $ 9,213,000 $ - $ (302,000) $ 8,911,000 $ 317,000 $ 8,594,000
Total $ 9,213,000 $ - $ (302,000) $ 8,911,000 $ 317,000 $ 8,594,000
Section 108 Loan
In June 2008, the City entered into a Contract for Loan Guarantee Assistance with the U.S. Department
of Housing and Urban Development ("HUD") as part of the Section 108 Loan Program in the amount of
$9,500,000. The Section 108 Loan is an "advance' of future CDBG entitlement funds and, as such, is
repaid with a portion of the City's annual entitlement. Proceeds of the loan will be used to fund
multiple capital improvement projects. Debt service payments will be made with future CDBG
entitlements for the next 20 years, interest payment beginning with fiscal year 2008/ 2009. As of June 30,
2011, the outstanding balance is $8,911,000. The annual debt service payments are as follows:
Yeaz Ending
June 30. Principal Interest Total
2012 $ 317,000 $ 428,866 $ 745,866
2013 332,000 417,073 749,073
2014 349,000 403,752 752,752
2015 367,000 389,175 756,175
2016 385,000 373,242 758,242
2017-2021 2,235,000 1,577,359 3,812,359
2022-2026 2,851,000 946,107 3,797,107
2027-2029 2,075,000 171,542 2,246,542
Total $ 8,911,000 $ 4,707,116 $ 13,618,116
F. Notes Payable
Classification
Balance Debt Debt Balance Due within Due in More
July 1, 2010 Issued Retired June 30, 2011 One Year Than One Year
Pazldng Structure Note $ 161,982 $ - $ (37,513) $ 124,469 $ 42,289 $ 82,180
Califontia Energy Commission Loan 873,256 42,286 (106,396) 809,146 148,561 660,585
Total $ 1,035,238 $ 42,286 $ (143,909) $ - 933,615 $ 190,850 $ 742,765
-~~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
F. Notes Payable, Continued
Parking Structure Note
In January 1994, the City entered into a note payable with a private party ui order to purchase certain
land and improvements for the ultimate purpose of constructing athree-level parking structure. The
note calls for 240 monthly payments of principal and interest, commencing in April 1994 in the initial
amount of $2,548 and increasing 3% percent annually. The annual interest rate is 8.29%. As of June 30,
2011, the outstanding balance is $124,469.
The annual debt service payments are as follows:
Yeaz Ending
Jnne 30.
2012
2013
2014
Total
Cali ornia Energy Commission Loan
On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the City's
participation in the California Energy Commission ("CEC") and the SDG&E On-Bill Financing program.
The loans would bridge the financial gap between energy conservation project capital costs and the
available rebates for energy conservation equipment.. As of June 30, 2011, the outstanding balance is
$809,146.
Principal Interest Total
$ 42,289 $ 8,753 $ 51,042
47,523 5,051 52,574
34,657 1,086 35,743
$ 124,469 $ 14,890 $ 139,359
The annual debt service payments are as follows:
Year Ending
June 30.
Principal
Interest Total
2012
2013
2014
2015
2016
2017
Total
$ 148,561 $
154,566
160,732
167,143
173,800
4,344
30,592 $ 179,153
24,586 179,152
18,421 179,153
12,009 179,152
5,352 179,152
86 4,430
$ 809,146 $ 91,046 $ 900,192
-~~0
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
G. Capital Leases
Classification
_ _ Balance Debt Debt ,Balance Due within Due in More
July 1, 2010 Issued Retired June 30, 2011 One Year Than One Year
SD County Regional Comm. System $ 1,033,010 $ - $ (237,369) $ 795,641 $ 250,780 $ 544,861
Medical Resuscitafion Equipment 455,380 - (153,717) 301,663 161,257 140,406
Total $ 1,488,390 $ - $ (391,086) $ 1,097,304 $ 412,037 $ 685,267
SD Countu Regional Communication S stl tem
The City has participated in the San Diego County Regional Communicafions System ("RCS"). The City
financed its share of the RCS network infrastructure over 14 years in the amount of $2,809,405. The
agreement with the County provided the City with full partnership in the RCS. As of June 30, 2011, the
outstanding balance is $795.641.
The future minimum lease obligation and the net present value of these minimum lease payments as of
June 30, 2011, are as follows:
Yeaz Ending
June 30. Principal Interest Total
2012 $ 250,780 $ 44,954 ~- $ 295,734
2013 264,948 30,785 295,733
2014 279,913 15,815 295,728
Total $ 795,641 $ 91,554. $ 887,195
Medical Resuscitation Equipment
On April 16, 2008 the City entered into a five year lease purchase agreement for the acquisition of
medical resuscitation equipment manufactured by Zoll Medical Corporation for use by the Fire
Department financed by Kansas State Bank of Manhattan in the amount of $764,224. The medical
equipment replaced the existing equipment that was beyond its useful performance life. This lease
agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payments at the inception date.
The assets acquired through capital lease are as follows:
Assets
Machinery & equipment $ 764,224
Less:
Accumulated depreciation (191,056)
Total $ 573,168
1-R0~1
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
G. Capital Leases, Continued
Medical Resuscitation E~ment, Continued
The future minimum lease obligation and the net present value of these minimum lease payments as of
June 30, 2011, are as follows:
Yeaz Ending
June 30. Principal Interest Total
2012 $ 161,257 $ 10,959 $ 172,216
2013 140,406 3,106 143,512
Total $ 301,663 $ 14,065 $ 315,725
H. Special Assessment Debt-Non-City Obligations
Bonds issued to finance public improvements projects in certain assessment districts are liabilities of the
property owners and are secured by liens against the assessed property. The City acts as an agent for
collection of principal and interest payments by the property owners and remittance of such monies to
the bondholders. The City has no obligation or duty to pay any delinquency out of any available funds
of the City. Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the
bonds. Therefore, none of the following obligations are included in the accompanying basic financial
statements. At June 30, 2011, the special assessment debts outstanding are as follows:
CFD 06-1A Eastlake Woods, Vista, Land Swap
CFD 06-1B Eastlake Woods, Vista, Land Swap
CFD 01-2 McMillin Otay Valley Ranch Village 6
CFD OS-I Otay Razuh Village
CFD 07-I Otay Ranch Village II
CFD 12-I McMillin Otay Ranch Village 7
CFD 2001-1B San Miguel Rauh 2005 Improvement
CFD 13-I McMillin Otay Ranch Village 7
CFD 07-I McMillin Otay Ranch VIDage I
2005 Revenue Refunding Bonds
AD 94-I Eastlake Greens Phase II
RAD 2001-1 Refunding Revenue Bonds Residential
RAD 2001-2 Refunding Revenue Bonds Commercial
Industrial Development Revenue Bonds, 1992 Series A-D
Industrial Development Revenue Bonds, 1996 Series A-B
Industrial Development Revenue Bonds, 1997 Series A
Industrial Development Revenue Bonds, 2004 Series A-F
Industrial Development Revenue Bonds, 2006 Series A
Total
Original Outstanding
Amount June 30, 2011
$ 39,000,000 $ 34,505,000
7,880,000 7,095,000
10,250,000 9,020,000
21,655,000 19,290,000
28,050,000 23,140,000
22,565,000 20,335,000
12,230,000 11,415,000
16,620,000 13,050,000
16,950,000 14,555,000
93,930,000 50,675,000
7,464,474 3,080,000
20,445,000 12,270,000
9,705,000 2,005,000
250,000,000 150,000,000
98,900,000 98,900,000
25,000,000 25,000,000
251,265,000 251,265,000
161,240,000 161,240,000
$ 1,093,149,474 $ 936,840,000
~ -1~~12
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. LONG-TERM DEBT, Continued
I. Multi-Family Housing Bands -Non -City Obligations
Bonds issued to finance public improvement and/or affordable multifamily housing projects are
liabilities of the developers and are secured by liens against the assessed property: The City has no
obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith,
credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore, none of the
following obligations are included in the accompanying basic financial statements.
As of June 30, 2011, the total multifamily housing bonds outstanding are as follows:
Original Outstanding
Amount June 30, 2011
1998 A Gateway Town Center
1998 B Gateway Town Center
2000 A Peaz Tree Manox Project
1999 A Villa Serena Project
1999 B Villa Serena Project
2007 A Oxford Terrace Apartments
2007 B Oxford Terrace Apartments
2006 A Teresina Apartment Projects
2007 C The Landing Apartment
Total
$ 36,020,000 $ -
4,625,000 -
5,779,000 4,764,000
5,566,500 5,340,000
786,000 -
2,276,000 1,926,000
2,363,000 2,363,000
37,940,000 37,940,000
16,670,000 5,933,259
$ 112,025,500 $ 58,266,259
J. Tax and Revenue Anticipation Notes
The City did not issue Tax and Revenue Anticipation Notes in FYll.
K Debt Compliance
At June 30, 2011, City management believes that the City has complied with all requirements of its
various debt agreements.
7. UNEARNED/DEFERRED REVENUE
A. Government-Wide Financial Statements
At June 30, 2011, unearned revenue was reported as follows:
Public Facilities Development Impact Fee Prepayment $ 1,203,496
Grazits 8,085,901
Total $ 9,289,397
1-~~3
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
7. UNEARNED/DEFERRED REVENUE, Continued
B. Fund Financial Statements
At June 30, 2011, deferred revenue was reported as follows:
Interest receivable on
Advances to other funds $ 11,878,132
Loans receivable:
South Bay Community Services 3,867,066
South Bay Community Villas, L.P. 4,400,000
St. Regis Park 1,387,152
Los Vecinos (Wakeland Housing & Development) 5,680,000
Seniors on Broadway (MAAC Project) 3,511,194
Rancho Vista Housing (Chelsea Investment Corp) 1,500,000
Alpha III Development (Main Plaza) 1,800,000
The Landings (Chelsea Investment Corp) 5,260,000
Long-term receivable 3,125,567
Public Facilities Development Impact Fee Prepayment 1,203,496
Grants 8,085,901
Total $ 51,698,508
8. COMPENSATED ABSENCES
Government-Wide Financial Statements
Summary of changes in governmental activities compensated absences for the year ended June 30, 2011 are
as follows:
Balance
July 1, 2010 Additions
Compensated Absences $ 6,725,937 $ 4,361,417 $ (4,289,843)
Total $ 6,725,937 $ 4,361,417 $ (4,289,843)
Classification
Balance Due within Due in More
Deletions June 30, 2011 One Year Than One Year
$ 6,797,511 $ 4,000,000 $ 2,797,511
$ 6,797,511 $ 4,000,000 $ 2,797,511
The City's liability for vested and unpaid compensated absences (accrued vacation) has been accrued and
amounts to $6,797,511 at June 30, 2011. For the governmental activities claims and judgments and
compensated absences are generally liquidated by the general fund. In business-type funds, the liabilities
are reported in the fund as the benefits vest and are earned.
Compensated absences at June 30, 2011 are obligations of the following funds:
Governmental Funds $ 6,734,807
Fleet Mangement 62,704
$ 6,797,511
1- ~~14
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
9. OTHER REQUIRED FUND DISCLOSURES
A. Deficit Fund Balances
At June 30, 2011, the following funds had deficit fund equity:
RDA Debt Service Fund $ 18,777,353
City Debt Service Fund $ 36,617,176
The Redevelopment Agency and City Debt Service funds have deficit fund balance because of their
long term advances within each respective fund. The
tax increment and transfers fiom other funds for the
funds, respectively.
10. SELF-INSURANCE ACCRUED LIABILITIES
City expects to repay the advances via property
Redevelopment Agency and City Debt Service
The City is self-insured for the first $500,000 per occurrence for its general liability losses including personal
injury, property damage, errors and omissions, automobile liability and employment practices liability. For
those losses between $500,000 and $2,000,000 per occurrence the City pools its liabilities through its
membership in the San Diego Pooled Insurance Program Authority (SANDPIPA). Insurance for losses in
excess of the $2,000,000 up to $45,000,000 is purchased on a group basis by the member cities.
SANDPIPA is a joint powers authority comprised of twelve Sari Diego County cities. The Board of
Directors consists of one staff representative (and an alternate) from each of the member cities as designated
by the city's governing body. Each member city has equal representation on the Board of Directors. The
Board of Directors is liable for all actions of SANDPIPA.
The SANDPIPA Board of Directors establishes an Executive Committee that is responsible for the
administration and operation of the risk management programs of SANDPIPA, subject to the control of the
Board. The Executive Committee consists of the Board President, Vice-President, Treasurer and a member
at-large nominated by the Board President and approved by a vote of the Board. The Executive Committee
is responsible for the oversight of all SANDPIPA operations, including preparation and submittal of the
Pool's annual budget to the Board for its review and approval.
Armual pool premiums and assessments are approved by the Board of Directors and are adjusted annually
based on the member city's incurred losses; the member's share of such losses and other expenses as a
proportion of all member's losses; historical contributions to reserves (including reserves for IBNR losses);
the cost to purchase excess liability insurance and other coverage and a proportionate share of
administrative expenses.
1-~~5
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
10. SELF-INSURANCE ACCRUED LIABILITIES, Continued
The City is self-insured for the first $1,000,000 per occurrence for workers' compensation liabilities. Excess
workers' compensation coverage is obtained through participation in the CSAC Excess Insurance
Authority's Excess Workers' Compensation Program. As of June 30, 2011, there are 164 member entities
participating in the program that offers per occurrence coverage up to $5,000,000 through pooled resources
and from $5,000,000 to statutory limits via group purchased excess insurance policies.
Only the probable amounts of loss as estimated by the Cit}~s Risk Manager and Attorney, including an
estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic
financial statements. There were no reductions in insurance from the prior year and there were no
insurance settlements that exceeded coverage in each of the past three years.
The aggregate change in the balance of claims payable as recorded in the Governmental Activities were as
follows:
Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Yeaz
- Liability Estimates Payments End
2008-2009 $ 15,667,881 $ 6,298,675 $ (4,096,607) $ 17,869,949
2009-2010 17,869,949 4,554,348 (3,622,693) 18,801,604
2010-2011 18,801,604 7,960,587 (4,330,098) 22,432,093
The liabilities for claims and judgments typically will be liquidated from the General Fund.
11. PENSION PLANS
A. California Public Employees' Retirement Plan
Plan Descriprion
The City contributes to the California Public Employees' Retirement System ("PERS"), an agent
multiple-employer public employees defined benefit pension plan. PERS provides retirement and
disability benefits, annual cost-of-living adjustments, and death benefits to plan members and
beneficiaries. PERS acts as a common investment and administrative agent for participating public
entities within the State of California. Benefit provisions and all other requirements are established by
State statute and City ordinance. Copies of PERS' annual financial report may be obtained from their
Executive Office located at 400 P Street, Sacramento, California 95814.
~-~66
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
11. PENSION PLANS, Continued
A. California Public Employees' Retirement Plan, Continued
Funding Police
Active plan members are required by State statute to contribute 8% for miscellaneous and 9% for safety
employees of their. annual covered salary. The City employees make the required contributions with
the following effective dates: Miscellaneous CVEA, 2% on January 1, 2011, 2% on July 1, 2011, 2% on
January 1, 2012 and 2% on June 30, 2012; Miscellaneous Other than CVEA, 8% on January 14, 2011;
Safety POA, 3% on January 14, 2011,1.5% on July 1, 2011, 2.25% on January 1, 2012 and 2.25% on July 1,
2012; Safety IAFF, 9 % on January 14, 2011. The City employer is required to contribute at an actuarial
determined rate of 19.599% of annual covered payroll for miscellaneous employees and 22.654% of
annual covered payroll for safety employees for the fiscal year ended June 30, 2011.
Readers of this document are advised to refer directly to the full disclosure of actuarial and funding
practices of the multi-employer Ca1PERS system, which this agency does not control. Ca1PERS may
employ actuarial techniques such as extended smoothing and amortization periods that would result in
future increases in required employer contributions which are not reflected in these financial
statements, particularly in the event of any future changes in governmental financial reporting
standards and system-wide funding practices. Further information on its financial practices should be
requested from Ca1PERS.
Annual Pension Cost
For 2010-2011, the City's annual pension cost of $17,865,618 for PERS was equal to the City's required
and actual contributions. The required contribution was determined as part of the June 30, 2008,
actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions
included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary
increases range from 3.25% to 14.45% for miscellaneous employees and 3.25% to 13.19% for safety
employees depending on age, service, and type of employment, and (c) 3.25% per year cost-of-living
adjustments. Both (a) and (b) included an inflation component of 3%. The actuarial value of PERS
assets was determined using techniques that smooth the effects of short-term volatility in the market
value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus)
for both miscellaneous and safety employees are being amortized as a level percentage of projected
payrolls over a closed 20-year period for prior and current service unfunded liability.
THREE-YEAR TREND INFORMATION FOR PERS
Annual Pension Cost (APC)
Miscellaneous Safety
Fiscal Yeaz Employees Employees Total
6/30/2009 $ 9,822,760 $ 9,115,682 $ 18,938,442
6/30/2010 9,082,303 8,783,315 17,865,618
6/30/2011 9,952,829 9,139,398 19,092,227
Percentage of Net Net
APC Pension Pension
Contributed Obligation Asset
100 % $ - $ 7,674,873
100 % - 5,601,547
100% - 3,175,108
1-~~~
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
11. PENSION PLANS, Continued
A. California Public Employees' Retirement Plan, Continued
The City's changes in net pension asset for the yeaz ended June 30, 2011, are as follows:
2011 2010 2009
Annual required contribution
Interest on net pension assets
Adjustment to the azutual required contribution
P.nnual pension cost
Contribution made
Decrease in net pension asset
Net pension asset, beginning of year
Net pension asset, end of year
$.(16,665,788) $ (15,792,292) $ (17,153,120)
434,120 594,803 733,165
(2,860,559) (2,668,129) (2,518,487)
(19,092,227) (17,865,618) (18,938,442)
16,665,788 15,792,292 17,153,120
(2,426,439) (2,073,326) (1,785,322)
5,601,547 7,674,873 9,460,195
$ 3,175,108 $ 5,601,547 $ 7,674,873
Most Recent Actuarial Studt~- Schedule of Funding Progress
Unfunded
Actuazial
Entry Age Unfunded Liability as
Actuarial Actuazial Actuarial Actuarial Percentage of
Valuation Assets Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
Miscellaneous:
6/30/2010 $ 271,275,031 $ 355,519,797 $ 84,244,766 76.30% $ 43,498,397 193.67%
Safety:
6/30/2010 $ 255,698,516 $ 295,764,402 $ 40,065,886 86.45% $ 34,149,134 117.33%
B. Defined Contribution Pension Plan
The City provides pension plan benefits for all of its part-time employees through a defined
contribution plan (Public Agency Retirement Plan). In a defined contribution plan, benefits depend
solely on amounts contributed to the plan plus investment earnings. The plan is administered by Phase
II Systems. All part-time employees are eligible to participate from the date of employment. Federal
legislation requires contributions of at least 7.5% to a retirement plan, and City Council resolved to
match the employees' contributions of 3.75%. The City's contributions for each employee (and interest
earned by the accounts) are fully vested immediately.
For the year ended June 30, 2011, the City's total payroll and covered payroll was $1,413,674. The City
made employer contributions of $53,013 (3.75% of current covered payroll), and employees contributed
$55,394 (3.75% of current covered payroll).
1-$~l8
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended Jixne 30, 2011
12. OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The City provides a Retiree Healthcare Plan, a single employer defined benefit plan, which allows retirees
to purchase healthcare coverage under the City's medical plan. Retirees pay 100% of the premiums.
Retirees not eligible for Medicare pay the same healthcare premiums as active employees, even though
retiree's healthcare costs are greater than that of active employees. This results in an implied subsidy of
retiree's healthcare costs by the City. In FYll, the City entered into an agreement with various bargaining
groups eliminating the subsidized retiree health care rates for employees hired under the Second Tier
Ca1PERS Retirement Plan. The postemployment benefit is asingle-employer plan. The plan has not been
audited and therefore, there is no audited GAAP-basis postemployment benefit plan report available.
On April 22, 2008 the City Council approved a medical incentive program for early retirement, the City
offered to pay the employees' single premium until December 31, 2009 if the employee retired between May
5, 2008 to June 5, 2008. On December 16, 2008, the City CouncIl approved a third resolution to pay the
employees' single premium until December 31, 2009 and December 31, 2010 if the employee retired
between January 1, 2009 to March 27, 2009 and March 28, 2009 to June 26, 2009 respectively.
Eli bili
Employees are eligible for retiree health benefits if they retired from the City on or after age 50 (unless
disabled) and are eligible for PERS pension. The benefits are available only to employees who retired from
the City. Membership of the plan consisted of the following at June 30, 2011:
Police Fue Miscellaneous Total
Eligible active employee 211 121 553 885
Enrolled eligible retirees 29 19 149 197
The above does not reflect current retirees not enrolled in the healthcare plan that are eligible to enroll in
the plan at a later date.
Funding Polio
The City offers an implied subsidy benefit paid from the City's general fund. The City's contribution is
based on pay as-you-go. The retirees pay 100% of their individual premium except for the retirees who
retired under the incentive plan. The City is contributing amounts between $379 and $676 in premiums on
behalf of the employees who retired under the incentive plan.
Annual Otl2er Postem~loument Benefits (OPEB) Cost and Net OPEB Obli ag bons
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) not to exceed thirty years.
1-1~9
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
12. OTHER POSTEMPLOYMENT BENEFITS, Continued
The following table shows the components of the City's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the City's net OPEB obligation:
2011 2010 2009
Annual required conh~ibution
Interest on net OPEB obligation
Adjustment to the annual required contribution.
$ 1,470,000 $
108,000
1,423,000 $ 1,407,000
74,790 28,744
Net OPEB cost
Contribuflon made
Decrease ur net pension asset
Net pension asset, beginning of yeaz
Net pension asset, end of year
1,578,000 1,497,790 1,435,744
(574,000) (702,598) (320,688)
1,004,000 795,192 1,115,056
2,549,000 1,753,808 638,752
$ 3,553,000 $ 2,549,000 $ 1,753,808
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2009, 2010 and 2011 were as follows:
.Percentage of Increase in Net
Annual Annual OPEB Net OPEB OPEB
Fiscal Yeaz OPEB Cost Cost Contributed Obligation Obligation
6/30/2009 $ 1,435,744 53% $ 1,115,056 $ 1,753,808
6/30/2010 1,498,000 21 % 795,192 2,549,000
6/30/2011 1,578,000 47% 1,004,000 3,553,000
Funding Status and Progress
As of June 30, 2009, the most recent actuarial valuation date, the plan was not funded in its initial year of
implementation. The actuarial accrued liability for benefits was $11,885,000, and the actuarial value of
assets was $0, resulting in an unfunded actuarial liability ("UAAL") of $11,885,000 and a funded ratio
(actuarial value of assets as a percentage of the actuarial liability) of 0 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about the future employment, mortality and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to financial statements, presents multi-year trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuazial accrued liabilities for the benefits.
1-~~0
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
12. OTHER POSTEMPLOYMENT BENEFTTS, Continued
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purpose are based on the substanfive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefits costs between employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial liabilities and the actuazial assets, consistent with
the long-term respective of the calculations.
The actuarial cost method used for determining the benefit obligation is the Entry Age Normal Cost
Method. The actuarial assumptions included a 4.25% discount rate, the inflation rate for HMO's starts at
9.7% (the increase in 2010 premiums over 2009) and grades down to 4.5% (2017 premiums over 2016) and
remains at 4.5% into the future. This assumption means healthcare is assumed to increase, on the average,
7.1 % for HMO's and 7.5 % for PPO's a year for the next 8 years after 2009. The general inflation assumption
rate is 3% and is assumed that healthcare will level off at 1.5% over general inflation. The UAAL is being
amortized as a level percentage of projected payroll over 30 years (amortization period is closed).
Most Recent Actuarial Study -Schedule of Funding Progress
Actuarial Actuazial
Valuation Assets
Date Value
6/30/2009 $
Unfunded
Actuarial
Entry Age Unfunded Liability as
Actuarial Actuarial Percentage pf
Accrued Accrued Funded Covered Covered
Liability Liability Ratio Payroll Payroll
$ 11,885,000 $ 11,885,000 0.00 % $ 69,087,000 17.20
13. POLLUTION REMEDIATION OBLIGATIONS
In accordance with GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation
Obligations, the City is required to estimate the components of expected pollution remediation outlays and
determine whether outlays for those components should be accrued as a liabilities or, if appropriate,
capitalized when goods and services are acquired if one of the following five. specified obligating events
occurs:
• The City is compelled to take pollution remediation action because of an imminent endangerment;
• The City violates a pollution prevention-related permit or license;
• The City is named, or evidence indicates that it will be named, by a regulator as a responsible party
or potentially responsible party for remediation, or as a government responsible for sharing costs;
• The City is named, or evidence indicates that it will be named, in a lawsuit to compel participation
in pollution remediation;
• The City commences or legally obligates itself to commence pollution remediation.
1- ~9 1
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
13. POLLUTION REMEDIATION OBLIGATIONS, Continued
At June 30, 2011, the City identified the following sites which met one of the above obligating events:
Otay Valleu
The City is preparing a remedial action plan for the County of San Diego for approval. The estimate
clean-up cost for two foot cap of clean fill material and monitoring is approximately $500,000. This
estimate was based on cost estimates provided by outside engineers. This estimate is subject to revision
because of price increases or reductions, changes in technology, or changes in applicable laws or
regulations.
Coro Yard
The estimate installation costs of groundwater monitoring wells and montoring activity is
approximately $150,000. This estimate is based on the installation of additional ground water
monitoring wells and about five yeazs to get the site closed with the cost of $20,000 per year in testing
and reporting and about $10,000 a year in staff time. This estimate is subject to the test result or
changes in applicable laws or regulations. The intent is to monitor for natural attenuation, however, the
City believes that after another round of montoring, the site will be closed.
The City secured a pollution and remediation legal liabIlity insurance to cover pollution and remediation
legal liability, legal defense expense and contingent transportation coverage in the amount of $10,000,000
per occurrence up to $50,000,000 in aggregate liability with aself-insured retention amount of $100,000 per
occurrence. At June 30, 2011, the City recorded pollution remediation obligations in the amount of $650,000
on the Government-Wide Statement of Net Assets and allocated the total amount to General Government
on the Government-Wide Statement of Activities and Changes in Net Assets.
The pollution remediation costs for Otay Valley and Corp Yazd are not covered by this insurance, however,
the City will be covered should there be claims against the City/Agency by third parties.
14. COMMITMENTS AND CONTINGENCIES
The City is presently involved in certain matters of litigation that have arisen in the normal course of
conducting City business. City management believes, based upon consultation with the City Attorney, that
these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City.
Additionally, City management believes that the Cit~s insurance programs are sufficient to cover any
potential losses should an unfavorable outcome materialize.
The City participates in a number of federally assisted grant programs, including those from the U.S.
Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Treasury,
U.S. Department of Transportation, and the U.S. Department of Education. Receipts from these grant
programs are subject to audit to determine if the monies were expended in accordance with appropriate
statues, grant terms and regulations. The City believes no significant liabilities will result on this audit.
1- ~~t 2
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
14. COMMITMENTS AND CONTINGENCIES, Continued
The General Fund has loaned a cumulative amount of X913,429 to the Agency for unreimbursed services
rendered by City staff. It is anticipated that the Agency will repay this loan from tax increment revenues.
Currently, tax increment revenues are used to pay for related debt service expenditures and possible future
debt issuance. As a result, the Agency is uncertain if the amount will be repaid to the City's General Fund.
Accordingly, this contingent payable has not been reported in accompanying basic financial statements. The
Agency will record the contingent payable when payment is assured.
1-~~3
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
15. CLASSIFICATION OF FUND BALANCES
M,jnr Fnna.
Swdry G+n6 ROA RDA City Pazk A[quieiiian Nonmajor
Geeeral Special Revenue Special hevenue Debl Service Debl Servile Development Development Gwarwenpl
Fnnd Fund Fwd Fwd Fnnd Impa[tFwd Fwd Funde Total
NovR<ndable
Preyaid items $ TL052 5 2]4,161 - - - - - 34].015
103
298
11 A9
?99 fi
i0]
6II 10,680.000 3,910,34] 325&1,906
Lwm receivable ,
, , ,
,
iotil nonspendable 11938,150 5'8,080 6$01,622 10,600,000 - 3,910}}] 32,92J,999
R..mcrca
_ 3,3]9,299 3SN.394
Taw revenue Mnds _ _ ]9J,414 29J,414
Gu TU - _ - - 3,562,46] 3,56J.,46]
Traf(i[signels and aa(ety _ _ 38fip4] J86,>O
Peeling meter servim
_
_
1M
3%
ELFSF-few enfercemen[ - 1Wd99 - _ .
Aasetslorfeiture-drug eNercement and education - ]}9,690 - - - - - ]49,69)
Flre gran)lrn vegeladon management 12],683 _ _ 121,003
Cov+mumry and FOUSnB dwelopmeni - 5,3]9,Ti2 3$]1,934 - - - - 8,903,@l 20.I38J0]
Pa11[e BrentyeMServims 40,900 J0,%0
Library servicee Greni - 430,099 _ _ 45'J,093
Pvk and rttmmion grants - 106.186 - - - - - - 106,1P6
- (1Y,5}3) _ (1Y,544)
Federal yments - 12180 _ _ 12180
State gan6 - _ _ (tNd16)
AFM gnnls - (164A161 _ -
Waste mane6emenC rerycGng e^d mvirort grants - 1169,152 _ L169,li2
TeleBmph Ceiryon Dninnge - - - - - 6.064942 - - 6.066,942
Public (eciiities - 3,ll8,]20 - - 5.138,]30
Ouy ltan[h vi11e0e ramp and 6.id8e. _ _ _ 3,%>,bIS - - ],OS],0]5
Tnnsporanon improvements - - -
- - -
- 15,$05,624
- -
31,690,]01 1,]66,418
- 149]AOR
31,698,]81
PaA acgvls6lans end development - - _ 180,181 166,161
Ebm+drmn - - _
-
-
-
-
-
15,9839]
1],932,3,%
Openspecemaintenence - -
- 2,16],28] 2,46].28]
Auessment &stnm mpm emem -
tlR3
12] 035
399
0 1.1]5,934 3.319,294 29,1]6}61 31,69tl,]B] 31.1]6.%5 110,0]2,61]
TMalreaEi[!ed , ,
,
canm+m.a
Fbe egmpment 4s,ns
-
- - - - - - 6sns
Emnonuc conEnsency 3,Ok,]06 - - - - 130,02] 5,182,]09
- - ll,23$390 ]],2]2,59)
Debt urvlm
_ _
4
IXA.8t]
Capnel projeck 4,IXd,81] ,
Tvtil muwtltted 9,1]8,838 - - - 11,3]0,613 2i$49Ai1
Asei®ted
Economic development 33$00 - _ _ 33,SN
Firetelesteff eervires 10,094 _ _ _ 10,094
Asset matuGemen154alegnc edviwr servirns 19,166 _ _ _ 19,165
evilding maintemrce 60,OW - - - - - - 60,000
Damage to City Property 80,005 - - - - - 4U,000
OlMr professional end contracWel services 12,2]9 - - - - - - - 122]9
Sopp4es end services
10,613
~ 30,615
J,632
Web desi8n end development 3,632 _ _ _ _
_ _ 2U,244
Legalxrvlm 20$43 _
- IDWO
Continuous improvement 12,000 - - -
_ _ 8.]30
Cusmmerurvim prolent B,TiO _
- - - 15,323
-
Computer egWpmmt ]5,3Y3 - - -
- - - - 38,a9t
LibrarYlun~endpublimtions 58891 - - -
Meintenenre and support of MEexcbmge 4,300 - }~~
_ 22.126
Saftwue migration and npdele 8126 - _ _
68368
Leave PoY OUt 60368 -
- ~~~
Strategic public mmmunicationshmtewark 36,250 - -
Master fee schevdle update 40.000 - ~~~
]],630
-
GralFti tnckerurvices 11,630 - - -
- - - - 36,900
Costbauddevelopmentpmcesing fee study Ib,%0 - - -
Water rys[em Pintle edapmr 4,343 _ ~ 4,343
110,]31
-
CnpiW imprcvement 110,331 - -
_ 203A01
PeunbussemenlboNeregert[y 203.481 _ _ _
1~'~
PobGC financial management 163A00 _ _ - 1,322.PR
Publidiebility 1}22832 _
- -
2990161
Warker'scompenution 2956,161 _ _
'
Tom assigned 3,238,336 - 3,298$36
- -
Uwvigned 11,896.992 (22956,64n (36,61],1]6) - (118,319) 149,2t59W)
Tatil fwd balances $ 33p90,399 8 B.6W,2M S 12,003,356 8 (16,T11,153) $ (36,611.1]6) E 40.158.361 E 31,698,]81 8 52]39406 S 16.633,233
1- 9~t 4
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
16. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES
On June 29, 2011, the Governor of the State of California signed Assembly Bills Xl 26 and 27 as part of the
State's budget package. Assembly Bill Xl 26 requires each California redevelopment agency to suspend
nearly all activities except to implement existing contracts, meet already-incurred obligations, preserve its
assets and prepare #or the impending dissolution of the agency. Assembly Bill Xl 27 provides a means for
redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative
Redevelopment Program. Under this program, each city would adopt an ordinance agreeing to make
certain payments to the County Auditor Controller in fiscal year 2011-12 and annual payments each fiscal
year thereafter. Assembly Bill Xl 27 indicates that the city "may use any available funds not otherwise
obligated for other uses" to make this payment. The City of Chula Vista intends to use available monies of
its redevelopment agency for this purpose and the City and Agency have approved a reimbursement
agreement to accomplish that objective. The amounts to be paid after fiscal year 2012-13 have yet to be
determined by the state legislature
Assembly Bill Xl 26 directs the State Controller of the State of California to review the propriety of any
transfers of assets between redevelopment agencies and other public bodies that occurred after January 1,
2011. If the public body that received such transfers is not contractually committed to a third party for the
expenditure or encumbrance of those assets, the State Cohtroller is required to order the available assets to
be transferred to the public body designated as the successor agency by Assembly Bill X126.
In the event that Assembly Bill Xl 26 is upheld, the interagency receivable recognized by funds of the City
that had previously loaned or advanced funds to the redevelopment agency may become uncollectible
resulting in a loss recognized by such funds. The City might additionally be impacted if reimbursements
previously paid by the redevelopment agency to the City for shared administrative services are reduced or
eliminated.
The League of California Cities and the California Redevelopment Association (the "CRA") filed a lawsuit
on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme
Court to overturn Assembly Bills X1 26 and 27 on the grounds that these bills violate the California
Constitution. On August 11, 2011, the California Supreme Court issued a stay of all of Assembly Bill Xl 27
and most of Assembly Bffl Xl 26. The California Supreme Court stated in its order that "the briefing
schedule is designed to facilitate oral argument as early as possible in 2011, and a decision before January
15, 2012." A second order issued by the California Supreme Court on August 17, 2011 indicated that certain
provisions of Assembly Bills X1 26 and 27 were still in effect and not affected by its previous stay, including
requirements to file an appeal of the determination of the community remittance payment by August 1S,
the requirement to adopt an Enforceable Obligations Payment Schedule ("EOPS") by August 29, 2011, and
the requirement to prepare a preliminary draft of the initial Recognized Obligation Payment Schedule
("ROPS") by September 30, 2011.
Because the stay provided by Assembly Bill Xl 26 only affects enforcement, each agency must adopt an
Enforceable Obligation Payment Schedule and draft Recognized Obligation Payment Schedule prior to
September 30, as required by the statute. Enforceable obligations include bonds, loans and payments
required by the federal or State government; legally enforceable payments required in connection with
agency employees such as pension payments and unemployment payments, judgments or settlements;
legally binding and enforceable agreements or contracts; and contracts or agreements necessary for the
continued administration or operation of the agency that are permitted for purposes set forth in AB1X 26.
1-1~~5
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
16. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES, Continued
On August 9, 2011, City Ordinance No. 3202 was adopted, indicating that the City will comply with the
Voluntary Alternative Redevelopment Program in order to permit the continued existence and operation of
the agency, in the event Assembly Bills Xl 26 and/or 27 are upheld as constitutional. The initial payment
by the City is estimated to be $4,084,827 for the year ended June 30, 2012. Thereafter, an estimated
$1,173,156 will be due annually. The amounts to be paid after fiscal year 2012-13 have yet to be determined
by the State Legislature. The semi-annual payments will be due on January 15 and May 15 of each yeaz and
would increase or decrease with changes in tax increment. Additionally, an increased amount would be due
to schools if any "new debt" is incurred. Assembly Bill Xl 27 allows aone-year reprieve on the agency's
obligation to contribute 20% of tax increment to the low-and-moderate-income housing fund so as to permit
the Agency to assemble sufficient funds to make its initial payments. Failure to make these payments
would require agencies to be terminated under the provisions of ABXl 26.
Management believes that the Agency will have sufficient funds to pay its obligations as they become due
during the fiscal year ending June 30, 2012. The nature and extent of the operation of redevelopment
agencies in the State of California beyond that time frame are dependent upon the outcome of litigation
surrounding the actions of the state. In the event that Assembly Bills Xl 26 and/or 27 are specifically found
by the courts to be unconstitutional, there is a possibility that future legislative acts may create new
challenges to the abIlity of redevelopment agencies in the State of California to continue in view of the
California State Legislature's stated intent to eliminate California redevelopment agencies and to reduce
their funding.
17. RELATED PARTY TRANSACTIONS
A. Purchase and Sale Agreement with the City
On July 1, 2010, the Town Centre II Otay Valley Southwest Merged Capital Projects fund sold two parcels
of lands (14.41 acres) to the Park Acquisition Fund at the appraised value of $9,630,000. The parcels located
in the lower Sweetwater Valley were originally purchased by the Agency in June 1986 for $166,107.
B. Accounting and Financial Reporting
Government-Wide Financial Statements
The gain was eliminated in the government-wide financial statements and the land was recorded at the
historical cost of $166,107.
Fund Financial Statements
The Town Centre II Otay Valley Southwest Merged Capital Projects fund recorded the cash receipts as well
as a gain on sale of property of $ 9,463,893 in other financing sources. The Park Acquisition Fund recorded
the purchase as a capital outlay.
1- ~~ 6
This gage intenHonall~ left blank
1- ~~ 7
REQUIRED
SUPPLEMENTARY INFORMATION
1-~~8
City of Chula Vista
Required Supplementary Information
For the year ended June 30, 2011
1. BUDGETARY INFORMATION
An annual budget is adopted by the City Council prior to the first day of the fiscal year. The budget
process includes submittal of each department's budget request for the next fiscal yeaz, a detailed review of
each department's proposed budget by the City Manager, and a final City Manager recommended budget
transmitted to the City Council for its review before the required date of adoption. Once transmitted to the
City Council, the proposed budget is made available for public inspection. A public hearing is held to give
the public the opportunity to comment upon the proposed budget. Notice of such public hearing is
published in a newspaper of general circulation.
The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of
budgetary control is at the department level. Any budget modification, which would result in an
appropriation increase, requires City Council approval. The City Manager and Finance Director are jointly
authorized to transfer appropriations up to $15,000 within a departmental budget. Any appropriation
transfers between departments or greater than $15,000 require City Council approval.
Reported budget figures are as originally adopted or subsequently amended plus prior year continuing
appropriations. Such budget amendments during the year, including those related to supplemental
appropriations, did not cause these reported budget amounts to be significantly different than the originally
adopted budget amounts. All appropriations which are not obligated, encumbered or expended at the end
of the fiscal year lapse and become a part of the unreserved fund balance which may be appropriated for
the next fiscal year.
An annual budget for the year ended June 30, 2011, was adopted and approved by the City Council for the
general, special revenue and debt service funds except for the Developer's Deposit Special Revenue fund,
which is used to account for various developer deposit for development projects and is used to fund staff
costs and other costs related to specific projects. These budgets are prepared on the modified accrual basis
of accounting. The budgets of the capital projects funds are primarily long-term budgets, which emphasize
major programs and capital outlay plans extending over a number of years. Because of the long-term
nature of these projects, annual budget comparisons are not considered meaningful, and accordingly, no
budgetary information for capital projects funds is included in the accompanying basic financial statements.
1-19~ 9
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2011
1. BUDGETARY INFORMATION, Continued
Budgetaru Comparison Schedule, General Fund
- Budgeted Amounts .Actual Variance with
Original Final Amounts Final Budget
REVENUES: --
Taxes $ 69,032,594 $ 69,032,594 $ 69,441,761 $ 408,867
Intergovernmental 18,573,081 18,751,111 18,745,469 (2,642)
Licenses and permits 1,894,330 1,897,530 2,777,946 880,416
Qiazges for services 1Q,448,779 10,T9,146 9,721,746 (1,037,400)
Fhres and forfeitures 2,059,950 2,084,980 1,708,846 (376,134)
Use of money and property 6,362,355 6,.112,385 6,923,963 411,578
Othez 14,729,580 14,928,684 16,689,172 1,76Q488
Total revenues ]23,101,029 123,966,730 126,011,903 2,045,173
EXPENDITURES:
Current:
General govenmtent:
City comsil 1,202,006 1,302,357 1,141,003 161,354
Boards and Convnissions 14,736 14,736 8,723 .6,013
City Jerks 935,790 935,790 796,215 139,575
City attorney 2,170,379 2,194,097 1,958,964 235,133
Administration 1,788,254 1,820,185 1,706,967 113,218
Management and information 3,227,354 3,295,441 3,037,541 257,900
Human resources 9,315,033 9,340,033 7,764,538 1,575,495
Finance 3,209,771 3,242,021 2,983,740 258,281
Planning and building 8,840,995 8,992,056 8,082,647 909,409
Total general government 30,707,318 31,136,716 27,480,338 3,656,378
Public safety:
Police 44,080,096 44,175,096 43,099,971 1,075,125
Fire 22,002,295 22,20(L272 21,772,254 428,018
Total public safety 66,082,391 66,375;365 64,572,225 1,503,143
Public works: '
Engineering 4,154,327 4,184,327 3,925,118 259,209
General services 24,023,636 24,184,107 22,146,498 2,037,609
Total public works 28,207,963 28,368,434 26,071,616 2,296,818
Pazks and recreation 4,800,997 4,791,930 4,030,767 761,163
Library 4,794,178 4,851,778 3,870,646 981,132
Furlough and pension obligation bonds (877,499) (765,114) 1,087,725 (1,552,839)
Capital outlay 1,125,000 4,608,086 428,936 4,179,150
Total expenditures 134,840,348 139,367,198 127,842,253 11,524,945
REVENUES OVER
(UNDER) EXPENDTFURES (11,739,319) (15,400,468) (1,830,350) 13,570,118
Other Financing Sources (Uses)
Transfers in 8,997,369 20,356,302 11,304,257 (9,052,045)
Transfers out (5,409,334) (6,721,773) (6,915,308) (193,635)
Total other financing sources(uses) 3,585,035 13,634,529 4,388,949 (9,245,550)
Net change in Eund balance $ (8,151,284) $ (1,765,939) 2,558,599 $ 4,324,538
Fund balance:
Beginning of year 33,181,800
End of year $ 35,740,399
_9A'0
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2011
1. BUDGETARY INFORMATION, Continued
Budgetaru Comyarison Schedule Sundru Grants Stiecial Revenue Fund
Budgeted Amounts
Orginal Final
Revenues:
Intergovernmental
Chazges for services
Use of money azid property
Other
Total revenues
$ 13,783,178
979,000
20,000
69,900
14,852,078
$ 15,973,777
979,000
20,000
2,121,500
19,094,277
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Issuance of debt
Trazisfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of yeaz
920,714
5,880,259
4,779,360
1,600
5,952,119
17,534,052
7,273,105
8,187,063
7,674,076
1,600
12,856,007
35,991,851
Actual Vaziance with
Amounts Fhal Budget
$ 20,121,565 $ 4,147,788
1,029,040 50,040
55,235 35,235
241,100 (1,880,400)
21,446,940 2,352,663
5,139,261
5,276,474
4,881,144
7,739,089
23,035,968
2,133,844
2,910,589
2,792,932
1,600
5,116,918
12,955,883
(2,681,974) (16,897,574) (1,589,028) 15,308,546
_ - 42,256 42,286
157,226 157,226 350,761 193,535
(1,028,824) (1,087,299) (1,048,066) 39,233
(871,598) (930,073) (655,019) 275,054
$ (3,553,572) $ (17,827,647)
(2,244,047) $ 15,583,600
10,851,326
$ 8,607,279
~-~L~
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2011
1. BUDGETARY INFORMATION, Continued
Budgetaru Con~arison Schedule Redeaelopnlent Agenct~Sbecial Revenue Fund
Budgeted Amounts Actual Variance with
Orginal Final Amounts Final Budget
Revenues:
Taxes
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Total expenditures
REVENUES OVER
(UNDER) EXPENDTTURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of yeaz
$ 2,900,763 $ 2,900,763 $ 2,764,588 $ (136,175)
17,885 17,885 89,340 71,455
_ - 50 50
2,918,648 2,915,648 2,853,975 (64,670)
4,672,456 4,679,704 557,097
4,672,456 4,679,704 557,097
(1,753,808) (1,761,056) 2,296,881
4,122,607
4,122,607
4,057,937
(144,500) (9,344,500) (4,394,500) 4,950,000
(144,500) (9,344,500) (4,394,500) 4,950,000
$ (1,898,308) $ (11,105,556)
(2,097,619) $ 9,007,937
14,181,175
$ 12,083,556
~ -1'G 2
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2011
PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS)
SCHEDULE OF FUNDING PROGRESS
Miscellaneous Em piot/ees
Unfunded
Actuazial
Entry Age Unfunded Liability as
Actuarial Actuazial Actuarial Actuazial Percentage of
Valuation Assets Accrued Acaued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
6/30/2008 $ 245,868,607 $ 281,675,066 $ 35,506,459 87.29% $ 58,318,509 61.40%
6/30/2009 $ 255,234,202 $ 308,462,529 $ 50,228,327 83.72% $ 49,459,253 101.55%
6/30/2010 $ 271,275,031 $ 355,519,797 $ 84,244,766 76.30% $ 43,498,397 193.67%
Safetu EmpiolL
Unfunded
Actuazial
Entry Age Unfunded Liability as
Actuarial Actuarial Actuarial Actuazial Percentage of
Valuation Assets Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
6/30/2008 $ 226,791,902 $ 255,548,074 $ 28,756,172 88.75% $ 34,665,240 82.95%
6/30/2009. $ 240,935,156 $ 279,516,735 $ 38,581,579 86.20% $ 33,931,276 113.71%
6/30/2010 $ 255,698,516 $ 295,764,402 $ 40,065,886 86.45% $ 34,149,134 117.33%
OTHER POST EMPLOYMENT BENEFITS
SCHEDULE OF FUNDING PROGRESS
Unfunded
Actuarial
Entry Age Unfunded Liability as
Actuarial Actuazial Actuazia] Actuazial Percentage of
Valuation Assets Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
6/30/2007 $ - $ 9,608,000 $ 9,608,000 0.00% $ 93,172,648 10.31%
6/30/2009 $ - $ 11,885,000 $ 11,885,000 0.00% $ 69,087,000 17.20%
OPEB information is not available in earlier years as the City adopted GASB Statement No. 45 in 2008.
1-11°3
SUPPLEMENTARY INFORMATION
1-~°~4
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NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Transportation Grants -This fund is used to account for revenues and expenditures received from the State
under the Street and Safety Code Sections 2106, 2107 and 2107.5. The allocations must be spent for street
maintenance or construction and a limited amount for engineering.
Parking Meter -This fund is used to account for revenues from on/off street parking and issued parking
citations within the parking district. The funds derived must be expended for a purpose substationally
connected with the problem of traffic regulation and control in the parking district.
Traffic Safety -This fund is a depository for all monies derived from vehicle code fines (excluding parking
violations). The fines are collected through the County court system and remitted to the City monthly.
.These monies may be expended only for traffic control devices and equipment and maintenance thereof or
for the maintenance, improvement or construction of public streets.
Town Centre I -This fund is used to account for revenues from an in lieu parking fee. The in lieu parking
fee applies to any developer of a new commercial building or addition to an existing commercial building
within the Downtown Parking district. Use of monies in this fund is restricted for the purchase or
development of parking sites.
Developer Deposits -This fund is used to account for revenues received from various developers for
development projects and is used to fund staff costs, and other costs related to specific projects.
Open Space Districts -This fund is a depository for all monies received for all flat rate property tax
assessments levied against benefiting property owners for the maintenance of open space areas.
Housing Programs -This fund is for federal housing rehabilitation monies held in trust by Bank of America
for issuance of housing rehab loans to qualified low and moderate income recipients.
Traffic Signals - This fund accounts for fees from developers for all new traffic signal construction.
Transportation Sales Tax -This fund was established for the receipt and disbursement of all transportafion
sales tax revenues for the City.
Storm Drain -This fund is a depository for all monies collected from the monthly storm drain service
charge. Monies in this fund may be used for storm drain purposes.
Housing Authority -This fund is used to account for revenues and expenditures received from Local, State
and Federal governments for the City's program in promoting balanced housing for families of all income
levels.
1-'Pg 6
NON-MAJOR
GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS:
Public Financing Authority -This fund is used to account for financing the acquisition of bonds, notes and
other obligations of, or for the purpose of making loans to the City and / or to refinance outstanding
obligations of the City.
1994 POB -This fund receives payments from the City for payment of principal and interest due on 1994
taxable pension obligation bonds.
Notes Payable -This fund is used for the payment of principal and interest on various notes payable.
Lease Payable -This fund is used to account for the City's portion of the infrastructure and financing costs
of the San Diego County regional communications systems (RCS) and lease purchase of the Fire
Department's medical resuscitation equipment.
CAPITAL PROTECTS FUNDS:
Residential Construction Tax -This fund is a depository for fees levied for the construction, replacement or
conversion of all dwelling units within the City including hotels and motels.
Highway Safety -This fund is a depository for the revenues received from State per Proposition 1B. Funds
must be spent for transportation projects to relieve congestion, improve the movement of goods, improve air
quality and security of the transportation system.
Bicycle Facility -This fund was established as a depository for local Transportation Development Act funds
(Article 3.0) received from the County for the purpose of bicycle related programs.
Industrial Development Authority -This fund was established to account for staff costs in assisting in the
issuance of industrial development bonds. A fee of 1/8 of 1% is charged to reimburse costs incurred.
Redevelopment Capital Projects -This fund was established to account for capital improvement projects
related to various redevelopment areas.
Assessment District Improvements -This fund was established as a depository for monies received from
issuance of bonds for various assessment districts. The monies are used to finance the construction of public
works improvements in the related districts.
1-~°~7
NON-MAJOR
GOVERNMENTAL FUNDS
CAPITAL PROTECTS FUNDS, Continued:
Transportation Partnership -This fund is a depository for the revenues received from the State and Local
Transportation Partnership Program. Funds must be spent for street purposes.
Other Transportation Program -This fund is a depository for the revenues received from the Federal
Highway Safety Improvement Program. Funds must be spent for street, public highway bridges and other
regional surface transportation programs.
Transportation Equity Act -This fund was established to account for reimbursable capital improvement
program such as highway safety, transit, and other surface transportation programs from FY98 through
FY2003 as required by PL 105-178.
Traffic Congestion Relief -This fund is a depository for the revenues received from Traffic Congestion Relief
Fund as required by AB2928. The monies must be spent for street or road maintenance or reconstruction.
1-~P'L 8
City of Chula Vista
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2011
Revenue
Transportation Parking Traffic Town Developer Open Space
Grants Meter Safety Centre I Deposits Districts
ASSETS
Cash and investments $ - $ 490,737 $ 244,877 $ 50,358 $ 12,268,003 $ 14,680,453
Receivables:
Accounts - 50,115 4,924 - - -
Taxes 354,202 - - - - 60,766
Interest 887 896 910 115 - 28,716
Loans - -
Other - - -
Due from other funds - - -
Due from other governments - - - -
Advancesto other funds - - -
Restricted cash and investments:
Held by City - - - -
Held by fiscal agent - - - - -
Total assets $ 355,089 $ 541,748 $ 250,711 $ 50,473 $ 12,268,003 $ 14,769,935
LIABILITIES AND
FUND BALANCES
Liabilities:
Acwunts payable and accrued liabilities $ - $ 48,972 $ 4,065 $ - $ 396,409 $ 837,538
Due to other funds 32,681 - - - -
Retention payable - - -
Developer deposits - - - - 11,871,594 -
Deferred revenue - - -
Totalliabilities 32,681 48,972 4,065 - 12,268,003 837,538
Fund Balances:
Nonspendable - - -
Restricted 290,414 386,747 246,646 50,473 - 13,932,397
Comntitted 31,994 106,029 - - -
Assigned - -
Unassigned - -
Total fund balances 322,408 492,776 246,646 50,473 - 13,932,397
Total liabilities and fund balances $ 355,089 $ 541,748 $ 250,711 $ 50,473 $ 12,268,003 $ 14,769,935
1-i°~s
City of Chula Vista
Combining Balance Sheet, Continued
Non-Major Governmental Funds
June 30, 2011
Special Revenue Debt Service
Public
Housing Traffic Transportation Housing Financing
_. Programs Signals Sales Tax Storm Drain Authority Authority
ASSETS
Cash and investments $ - $ 3,307,590 $ 1,074,663 $ 107,110 $ 5,015,565 $ 6,278,240
Receivables:
Accounts - - - 50,485 "x,787 -
Taxes - - - 590 - -
Interest - 8,293 - 150 2,527 11,268
Loans 703,085 - - - 2,041,507 -
Other - - - - -
Due from other funds - - 39,012 - - -
Due from other governments 108,452 - 324,013 - - -
Advances to other funds - - -
Restrictedcash and investments:
Held by City - - -
Held by fiscal agent - - - - - 10,843,062
Total assets $ 811,537 $ 3,315,883 $ 1,437,688 $ 188,365 $ 7,068,689 $ 17,132,570
LIABILTTIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 16,567 $ 62 $ 361,331 $ 181 $ 69,194 $ (23,600)
Due to other funds 91,733 - - - -
Retention payable - - 45,505 - - -
Developer deposits - - -
Deferred revenue 124,559 - - - 2,041,507 -
Totalliabilities 232,859 62 406,836 181 2,110,701 (23,600)
Fund Balances:
Nonspendable 697,197 - - -
Restricted - 3,315,821 1,030,852 188,184 4,957,988 -
- - - - 17,156,170
Comnritted -
Assigned - -
Unassigned (118,519) - - - - -
Totalfund balances 578,678 3,315,821 1,030,852 155,184 4,957,988 17,156,170
Total liabilities and fund balances $ 511,537 $ 3,315,883 $ 1,437,688 $ 188,365 $ 7,068,659 $ 17,132,570
1-~°~0
City of Chula Vista
Combining Balance Sheet, Continued
Non-Major Governmental Funds
June 30, 2011
Debt Service Capital Projects
Residential
1994 Notes Lease Construcrion Highway Bicycle
POB Payable Payable Tax Safety Facility
ASSETS
Cash and investments $ 26 $ 80,123 $ 294 $ 494,380 $ 2,li5,267 $ -
Receivables:
Accounts - - -
Taxes -
Interest - 166 23 1,414 6,749 -
Loans - -
Other - - - - - 42,023
Due from other funds - - -
Due from other govennments - - - -
Advancesto other funds - - - -
Restricted cash and investments:
Held by City - - -
Held by fiscal agent - - - - -
Total assets $ 26 $ 50,289 $ 317 $ 495,794 $ 2,162,016 $ 42,023
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 4,212 $ - $ - $ - $ 3,011
Due to other funds - - - - - 39,012
Retention payable - - - - 119,195 -
Developer deposits - - - -
Defened revenue - - - - 1,672,488 -
Total liabilities - 4,212 - - 1,791,683 42,023
Fund Balances:
Nonspendable - - -
Restrided - - - 495,794 370,333 -
Comntitted 26 76,077 317 - - -
Assigned -
ned
Unassi -
g
Total fund balances 26 76,077 317 495,794 370,333 -
Total liabilities and fund balances $ 26 $ 80,289 $ 317 $ 495,794 $ 2,162,016 $ 42,023
1-~~1
City of Chula Vista
Combining Balance Sheet, Continued
Non-Major Governmental Funds
June 30, 2011
Capital Projects
ASSETS
Cash anduwestments
Receivables:
Accounts
Taxes
Interest
Loans
Other
Due from other funds
Due from other governments
Advances to other funds
Restricted cash and investments:
Held by City
Held by fiscal agent
Total assets
Assessment Other
Industrial Redevelopment District Transportation Transportation Transportation
Development Capita] Improvement Partnership Program Equity
Authority Projects Funds Fund Fund Act
$ 10,599 $ 3,136,933 $ 2,461,698 $ 28,575 $
- 163,959 105 -
23 7,979 5,484 69
- 246,094 - -
4,702,030
- 2,654,407 - - - -
$ 1Q,622 $ 10,911,402 $ 2,467,287 $ 28,644 $ 1,081,655 $ 43,977
_ $ _
1,081,655 43,977
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other funds
Retention payable
Developer deposits
Deferred revenue
Total liabilities
Fund Balances:
Nonspendable
Restricted
Conmzitted
Assigned
Unassigned
Total fund balances
Total liabiBties and fund balances
$ - $ 2,495,132 $ _- $ - $ 136,364 $ -
_ - - - 574,060 43,977
_ - - 34,612 -
- 1,734,974 - - - -
- 4,230,106 - - 745,036 43,977
- 3,213,150 - - - -
10,622 3,468,146 2,467,287 25,644 336,619 -
10,622 6,681,296 2,467,287 28,644 336,619 -
$ 10,622 $ 10,911,402 $ 2,467,287 $ 28,644 $ 1,081,655 $ 43,977
1-~IL3 2
City of Chula Vista
Combining Balance Sheet, Continued
Non-Major Governmental Funds
June 30, 2011
ASSETS
Cash and investments
Receivables
Accounts
Taxes
Interest
Loans
Other
Due from other funds
Due from other governments
Advances to other funds
Restricted cash and investments:
Held by City
Held by fiscal agent
Total assets
LIABILTTIES AND
FUND BALANCES
Liabilities:
Accountr payable and accrued liabilities
Due to other funds
Retention payable
Developer deposits
Deferred revenue
Total IiabiliHes
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total IiabiliHes and fund balances
Capital Projects
Traffic Total
Congestion Other
Relief Governmental
Fvnd Funds
$ 1,692,005 $ 53,580,499
- 141,311
362,778 942,400
1,109 77,108
- 2,744,592
- 288,117
- 39,012
- 1,558,097
- 4,702,030
- 13,497,469
$ 2,055,892 $ 77,570,635
$ - $ 4,349,438
- 751,463
- 199,312
- 11,871,594
2,055,892 7,629,420
2,055,892 24,831,227
3,910,347
31,576,967
17,370,613
- (118,519)
- 52,739,408
$ 2,055,892 $ 77,570,635
(Concluded)
1-~~33
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1-~~'4
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2011
Revenue
Transportation Parking
- Grants Meter
REVENUES
Taxes $ $
Intergovenunental 3,704,054 -
Licenses and pernuts - 26,053
Developer fees
Traffic Town Developer Open Space
Safety Centre I Deposits Districts
$ _ $ - $ - $
Charges for services -
Fines and forfeitures - 111,661 524,518
Use of money and property 4,817 387,176 3,067
Other .2,731 - -
Totalrevenues 3,711,602 524,890 527,585
EXPENDITURES:
Current:
General government -
Public safety -
Public works -
Capital outlay -
Debt Service:
Principal -
es
est and fiscal diar
I
t
g
er
n
Total expenditures -
REVENUES OVER
(UNDER) EXPENDITURES 3,711,602
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property -
Transfersin -
Transters out (3,869,200)
Total other financing sources (uses) (3,869,200)
NET CHANGE IN FUND BALANCES (157,598)
FUND BALANCES
323,268 216,142
- J,1Jb,DbU -
519 54,567 130,442
_ - 10,148,107
519 8,311,127 10,278,549
- 8,311,127 8,388,000
323,268 216,142 -
201,622 311,443 519
- (534,140) -
- (534,140) -
201,622 (222,697) 519
8,311,127 8,388,000
1,890,549
1,890,549
480,006 291,154 469,343 - 49,954 - 12,041,848
Beo nning of yeaz
End of year $ 322,408 $ 492,776 $ 246,646 $ 50,473 $ - $ 13,932,397
1-~13~5
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued
Non-Major Governmental Funds
For the year ended June 30, 2011
REVENUES:
Taxes
Intergovemmental
Licenses and permits
Developer fees
Charges for services
Fines and forfeitures
Use of money and property
Other
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Capital outlay
Debt Service:
Principal
Interest and fiscal rliarges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
Special Revenue Debt Service
Public
Housing Traffic Transportation Housing Financing
Programs Signals Sales Tax Storm Draut Authority Authority
$ - $ - $ 5,253,809 $ - $ - $ -
228,740 - 586,755 - - -
- _ - 83,151 - -
- 325,097 - 554,355 113,267 -
_ _ - 3,540 - -
1,057 35,293 (27,543) 754 13,094 345,153
7,860 - 2,935 - 854,306 39,581
237,657 360,390 5,815,956 641,830 950,667 384,734
235,652 - - - 852,471 12,258
_ _ _ - 5,670
- 4,696 - 222,187 - -
- 747,945 5,449,746 - 2,000,000 -
_ _ - - - 3,640,000
_ _ - - 6,508,545
235,652 752,641 5,449,746 222,187 2,852,471 10,166,473
2,005 (392,251) 366,210 419,643 (1,871,804) (9,781,739)
- 4,213
_ _ 59,111 -
- (340,463) 4,442,899
(192,899) 7,779,210
(2,637,672)
- 4,213 59,111 (34Q463) 4,250,000 5,141,538
2,005 (388,038) 425,321 79,150 2,378,196 (4,640,201)
576,673 3,703,859 605,531 109,004 2,579,792 21,796,371
$ 578,678 $ 3,315,821 $ 1,030,852 $ 188,154 $ 4,957,958 $ 17,156,170
-1136
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued
Non-Major Governmental Funds
For the year ended June 30, 2011
Debt Service Capital Projects
1994 Notes Lease Residential Highway Bicycle
POB Payable Payable Construction Tax Safety Facility
REVENUES:
Taxes $ - $ - $ - $ 360,156 $ - $ -
Intergovernmental -
46,474
-
-
1,712,920
270,864
Liceases and perntits - -
Developerfees - -
Charges for services - -
Fines and forfeitures - -
Use of money and property - 809 133 5,450 28,849 (597)
Other - "
Total revenues - 47,283 133 365,606 1,741,769 270,267
EXPENDTrURES:
Current:
General government 2,475 - - - -
Public safety - -
Public works - -
-
-
-
1,741,769
211,828
Capital outlay -
Debt Service:
Principal 2,325,000 445,909 391,086 - - -
Interest and fiscal diarges 310,172 573,815 76,864 - - -
Total expenditures 2,637,647 969,724 467,950 - 1,741,769 211,828
REVENUES OVER
(UNDER) EXPENDITURES (2,637,647) (922,441) (467,817) 365,606 - 58,439
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property - -
Transfers in 2,637,672 900,990 467,950 17,000 - -
- - - (659,710) - (58,439)
Teansfers out
Total other financing sources (uses) 2,637,672 900,990 467,950 (642,710) - (58,439)
NET CHANGE IN FUND BALANCES 25 (21,451) 133 (277,104) - -
FUND BALANCES:
Begimting of year 1 97,528 184 772,898 370,333 -
End of year $ 26 $ 76,077 $ 317 $ 495,794 $ 370,333 $ -
1-~~7
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued
Non-Major Governmental Funds
For the year ended June 30, 2011
Capital Projects
REVENUES:
Taxes
Intergovernmental
Licenses and permits
Developer fees
Charges for services
Fines and forfeitures
Use of money and property
Other
Total revenues
EXPENDITURES:
Current
General government
Public safety
Public works
Capital outlay
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
Assessment Other
h~dustrial Redevelopment District Transportation Transportation Transportation
Development Capital Improvement Partnership Program Equity
- Authority Projects Funds Fund Fund Act
$ - $ 11,058,350 $ - $ - $ - $ -
_ _ - - 1,927,545 (24,672)
111 117,162 24,202 279 - -
- 154,825 22,601 - - -
111 11,330,337 46,803 279 1,927,545 (24,672)
- 4,323,624 - - - -
- 320,287 - 9,324 1,923,332 -
- 4,643,911 - 9,324 1,923,332 -
111 6,656,426 46,803 (9,045) 4,213 (24,672)
- 9,630,000 - - -
- 3,299,558 - - - 24,672
- (21,815,624) ~ (125,826) - (4,213) -
- (8,886,066) (125,526) - (4,213) 24,672
111 (2,199,640) (79,023) (9,045) - -
10,511 8,880,936 2,546,310 37,689 336,619 -
$ 10,622 $ 6,681,296 $ 2,467,287 $ 28,644 $ 336,619 $ -
1-'fI~3 8
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued
Non-Major Governmental Funds
For the year ended June 30, 2011
REVENUES:
Taxes
Intergovernmental
Licenses and permits
Developer fees
Charges for services
Fines and forfeitures
Use of money and property
Other
Total revenues
EXPENDITURES:
Current
General government
Public safety
Public works
Capital outlay
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDIFURES
Capital Projects
Traffic Total
Congestion Other
Relief Governmental
Fund Funds
$ - $ 16,672,315
854,993 9,307,673
- 109,204
- 8,256,560
- 992,719
- 639,719
3,576 1,128,400
- 11,232,946
858,569 48,339,536
- 5,426,450
- 545,080
- 16,926,010
455,569 12,862,800
- 6,801,995
- 7,419,396
458,569 49,981,761
400,000 (1,642,7]3)
OTHER FINANCING SOURCES (USES):
Proceeds from sale of property - 9,630,000
Transfers in - 19,633,275
Transfers out (400,000) (30,635,186)
Total other financing sources (uses) (400,000) (1,374,911)
NET CHANGE EV FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
(3,017,136)
- 55,756,544
$ - $ 52,739,408
(Concluded)
i-i'~s
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
RDA Debt Service Fund -Major Governmental Fund
For the year ended June 30, 2011
Final Actual Variance with
Budget Amounts Final Budget
Revenues:
Use of money and property $ - $ 96,674 $ 96,674
Other - 43 43
Total revenues - 96,717 96,717
Expenditures:
Current
General govenwient
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other finazuing sources (uses)
Net change in fund balance
Fund balance:
Beginnhig of year
End of year
15,000 10,495 4,505
1,110,000 1,110,000 -
3,392,918 2,772,143 620,775
4,517,918 3,892,638 625,280
(4,517,918)
(3,795,921) 721,997
15,813,750 15,717,464
(8,868,765) (856,613)
6,944,985 14,860,851
$ 2,427,067 11,064,930 $
(29,842,283)
$ (18,777,353)
(96,286)
8,012,152
7,915,866
8,637,863
~-~~0
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
City Debt Service Fund -Major Governmental Fund
For the year ended June 30, 2011
Final Actual Variance with
-- Budget Amounts Fhtal Budget
Expenditures:
Debt service:
Interest and fiscal charges $ 300,000 $ 902,567 $ (602,56'7)
Total expenditures 300,000 902,567 (602,567)
REVENUES OVER
(UNDER) EXPENDITURES (300,000) (902,567) (602,567)
Other Financing Sources (Uses)
Transfers in 303,826 353,826 50,000
Transfers out - (9,630,000) (9,630,000)
Total other financing sources (uses) 303,826 (9,276,174) (9,580,000)
Net change in fund balance $ 3,826 (10,178,741) $ (10,182,567)
Fund balance:
Beginning of year
End of year
(26,438,435)
$ (36,617,176)
1 -i p~
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Transportation Grants Special Revenue Fund
For the year ended June 30, 2011 .
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues:
Intergovernatental $ 3,683,540 $ 3,704,054 $ 20,514
Use of money and property - 4,817 4,817
Other - 2,731 2,731
Total revenues 3,683,540 3,711,602 28,062
REVENUES OVER
(UNDER) EXPENDITURES 3,683,540 3,711,602 28,062
Other Financing Sources (Uses)
Trutsfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
(3,869,200) (3,869,200)
(3,869,200) (3,869,200)
$ (185,660) (157,598) $
480,006
$ 322,405
28,062
1-~'$2
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Parking Meter Special Revenue Fund
For the year ended June 30, 2011
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues:
Licenses and permits $ 30,000 $ 26,053 $ (3,947)
Fines and forfeitures 120,700 111,661 (9,039)
Use of money and property 370,000 387,176 17,176
Total revenues 520,700 524,890 4,190
Expenditures:
Current
Public safety 352,861 323,268 29,593
Capital outlay 258,489 - 258,489
Total expenditures 611,350 323,268 288,082
REVENUES OVER
(UNDER) EXPENDINRES (90,650) 201,622 292,272
Net change in fund balance $ (90,650) 201,622 $ 292,272
Fund balance:
Beginnutg of year 291,154
End of year $ 492,776
1-~~3
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Traffic Safety Special Revenue Fund
For the year ended June 30, 2011
Revenues:
Fuses and forfeitures
Use of money and property
Total revenues
Expenditures:
Cunenk
Public safety
Total expenditures
REVENUES OVER
(UNDER) EXPENDINRES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of yeaz
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ 534,140 $ 524,518 $ (9,622)
- 3,067 3,067
534,140 527,585 (6,555)
256,000 216,142 39,858
256,OD0 216,142 39,858
278,140 311,443 33,303
(534,140) (534,140) - -
(534,140) (534,140) -
$ (256,000) (222,697) $. 33,303
469,343
$ 246,646
1-~~4
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Town Centre I Special Revenue Fund
For the year ended June 30, 2011
Final Actual Variance with
Budget Amounts Final Budget
Revenues:
Use of money and property $ - $ 519 $ 519
Total revenues - 519 519
Expenditures:
Capital outlay 10,433 - 10,433
Total expenditures 10,433 - 10,433
REVENUES OVER
(UNDER) EXPENDITURES (10,433) 519 10,952
Net change in fund balance $ (10,433) 519 $ 10,952
Fund balance:
Beginning of year
End of year
49,954.
$ 50,473
1-~~5
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Open Space Districts Special Revenue Fund
For the year ended June 30, 2011
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
Public works
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ - $ 130,442 $ 13Q442
11,870,783 10,148,107 (1,722,676)
11,870,783 10,278,549 (1,592,234)
11,987,848
11,987,848
8,388,000 3,599,848
8,358,000 3,599,848
(117,065)
$ (117,065)
1,890,549 2,007,614
1,890,549 $ 2,007,614
12,041,848
$ 13,932,397
1-~'~ 6
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Housing Programs Special Revenue Fund
For the year ended June 30, 2011
Revenues:
Intergovernmental
Use of money and property
Other
Total revenues
Expenditures:
Current
General governments
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Fatal Budget
$ 273,685 $ 228,740 $ (44,945)
- ..1,057 1,057
- 7,560 7,860
273,685 237,657 (36,028)
300,000 235,652 64,348
300,000 235,652 64,348
(26,315) 2,005 28,320
$ (26,315) 2,005 $ 28,320
576,673
$ 578,678
~ -~'~ 7
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Traffic Signals Special Revenue Fund
For the year ended June 30, 2011
Revenues:
Charges for services
Use of money and property
Total revenues
Expenditures:
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginniig of yeaz
End of year
Final Actual Variance with
Budget Amounts Fatal Budget
$ 250,000 $ 325,097 $ 75,097
- 35,293 35,293
250,000 360,390 110,390
15,000 4,696 10,304
2,900,472 747,945 2,152,527
2,915,472 752,641 2,162,831
(2,665,472) (392,251) 2,273,221
4,213 4,213
4,213 4,213 -
$ (2,661,259) (388,038) $ 2,273,221
3,703,859
$ 3,315,821
~-~~8
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Transportation Sales Tax Special Revenue Fund
For the year ended June 30, 2011
Revenues:
Taxes
Intergovernmental
Use of money and property
Other
Total revenues
Final Actual
Budget Amounts
Variance with
Final Budget
1,112,809
586,755
(27,543)
2,935
Expenditures:
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
$ 4,141,000 $ 5,253,809 $
- 586,755
- (27,543)
- 2,935
4,141,000 5,815,956
14,836,924 5,449,746
14,836,924 5,449,746
(10,695,924) 366,210
1,674,956
9,387,178
9,387,178
11,062,134
59,111 59,111 -
(100,000) - 100,000
(40,889) 59,111 100,000
$ (10,736,813) 425,321 $ 11,162,134
605,531
$ 1,030,852
1-~2~9
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Storm Drain Special Revenue Fund
For the year ended June 30, 2011
Final Actual Variance with
- Budget Amounts Final Budget
Revenues:
Licenses and permits $ 25,000 $ 83,151 $ 58,151
Charges for services 575,000 554,355 (20,645)
Fines and forfeitures 5,000 3,540 (1,460)
Use of money and property - 784 784
Total revenues 605,000 641,830 36,830
Expenditures:
Current:
Public works 262,619 222,187 40,432
Capital outlay 33,367 - 33,367
Total expenditures 295,986 222,187 73,799
REVENUES OVER
(UNDER) EXPENDITURES 309,014 419,643 110,629
Other Financing Sources (Uses)
Transfers out (290,463) (340,463) (50,000)
Total other financing sources (uses) (290,463) (340,463) (50,000)
Net change in fund balance $ 15,551 79,180 $ 60,629
Fund balance:
Begiruiing of year
End of yeaz
109,004
$ 188,184
~-~~0
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Housing Authority Special Revenue Fund
For the year ended June 30, 2011
Revenues:
Charges for services
Use of money and property
Other
Total revenues
Final
Budget
$ 71,000 $
937,379
Actual
Amounts
113,267 $ 42,267
13,094 13,094
854,306 (83,073)
980,667 (27,712)
Expenditures:
Current:
General government
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
1,008,379
958,952
2,000,000
2,958,952
852,471
2,000,000
2,852,471
(1,950,573) (1,871,804)
Variance with
Final Budget
106,481
106,481
78,769
9,392,899 4,442,599 (4,950,000)
(192,899) (192,899) -
9,200,000 4,250,000 (4,950,000)
$ 7,249,427 2,378,196 $ (4,571,231)
2,579,792
$ 4,957,988
1-~1
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Public Financing Authority Debt Service Fund
For the year ended June 30, 2011
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Debt service:
Principal
Interest and fiscal chazges
Total expenditures
Final
Budget
11,000
9,500
3,640,000
4,980,633
_ 8,641,133
Actual
Amounts
Variance with
Final Budget
345,153 $ 345,153
39,581 39,581
384,734 384,734
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
12,258 (1,258)
5,670 3,830
3,640,000 -
6,508,545 (1,527,912)
10,166,473 (1,525,340)
(8,641,133) (9,781,739) (1,140,606)
10,37.4,386 7,779,210 (2,595,176)
- (2,637,672) (2,637,672)
10,374,386 5,141,538 (5,232,848)
$ 1,733,253 (4,640,201) $ (6,373,454)
21,796,371
$ 17,156,170
1-''$2
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
1994 POB Debt Service Fund
For the year ended June 30, 2011
Final Actual Variance with
Budget Amounts Final Budget
Revenues:
Use of money and property $ - $ - $ -
Total revenues - - -
Expenditures:
Current.
General government 2,500 2,475 25
Debt service:
Principal 2,325,000 2,325,000 -
Interest and fiscal charges 310,172 310,172 -
Total expenditures 2,637,672 2,637,647 25
REVENUES OVER
(UNDER) EXPENDITURES (2,637,672) (2,637,647) 25
Other Financing Sources (Uses)
Transfers in 2,637,672 2,637,672 -
Total other financing sources (uses) 2,637,672 2,637,672 -
Net change in fund balance $ - 25 $ 25
Fund balance:
Beginning of year 1
End of year $ 26
1-~~3
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Notes Payable Debt Service Fund
For the year ended June 30, 2011
Final Actual Variance with
Budget Amounts Final Budget
Revenues:
Intergoverxunental $ - $ 46,474 $ 46,474
Use of money and property - 809 809
Total revenues - 47,283 47,283
Expenditures:
Debt service:
Principal 485,932 445,909 40,023
Interest and fiscal charges 539,816 523,815 16,001
Total expenditures 1,025,748 969,724 56,024
REVENUES OVER
(UNDER) EXPENDITURES (1,025,748) (922,441) 103,307
Other Financing Sources (Uses)
Transfers in 900,990 900,990 -
Total other financurg sources (uses) 900,990 900,990 -
Net change in fund balance $ (124,758) (21,451) $ 103,307
Fund balance:
Beginning of year 97,528
End of year $ 76,077
1-~65 4
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Lease Payable Debt Service Fund
For the year ended June 30, 2011
Revenues:
Use of money and property
Total revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of yeaz
End of year
Final Actual Variance with
Budget Amounts Fnal Budget
$ - $ 133 $ 133
- 133 133
378,392 391,086 (12,694)
89,558 76,864 12,694
467,950 467,950 -
(467,950) (467,817) 133
467,950 467,950 -
467,950 467,950 -
$ - 133 $ 133
184
$ 317
1-~~5
NONMAJOR
ENTERPRISE FUNDS
Transit Fund -This fund is used to account for the maintenance acid development of the transit related
projects.
Bayfront Trolley Fund - This fund is used to account for the maintenance and development of the Bayfront
Trolley Station.
Sewer DIFS Fund -This fund is a depository for a portion of the revenue derived from the monthly sewer
service charge. Monies in this fund shall be used solely for the purpose of refurbishment and/or
replacement of sewerage facilities including related evaluation, engineering and utility modification costs.
1-1~6
City of Chula Vista
Combining Statement of Net Assets
Nonmajor Enterprise Funds
June 30, 2011
Bayfront
Transit Trolley Sewer
Fund Station DIFS Fund Total
ASSETS
Current assets:
Cash and investments
Receivables:
Interest
Other
Prepaid items
Total current assets
Noncurrent assets:
Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabIlities:
Accounts payable and accrued liabIlities
Unearned revenues
Total current liabIlities
Noncurrent liabilities:.
Advances from other funds
Compensated absences
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets
Unrestricted
Total net assets
$ 582,871 $
2,015 -
59,900 -
- 45,000
644,786 45,000
$ 8,768,153 $ 9,351,024
20,670
8,788,823
2,315,765 - 2,221,387
2,315,765 - 2,221,387
2,960,551 45,000 11,010,210
22,685
59,900
45,000
4,J3/,1JL
14,015,761
15,512 1,761 - 17,573
256,763 43,239 - 300,002
272,575 45,000 - .317,575
- - 4,039,444 4,039,444
21,099 - - 21,099
21,099 - 4,039,444 4,060,543
293,674 45,000 4,039,444 4,378,118
2,315,765 - 2,221,387 4,537,152
351,112 - 4,749,379 5,100,491
$ 2,666,877 $ - $ 6,970,766 $ 9,637,643
-~-J~
City of Chula Vista
Combining Statement of Revenues, Expenses, and Changes in Net Assets
Nonmajor Enterprise Funds
For the year ended June 30, 2011
OPERATING REVENUES:
Charges for services
Other
Total operating revenues
OPERATING EXPENSES:
Operation and administration
Maintenance
Depreciarion
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES:
Intergovernmental
Interest revenue
Interest expenses
Total nonoperating revenues
Income (loss) before transfers
TRANSFERS:
Transfers out
Total transfers
Net increase (decrease) in net assets
NET ASSETS:
Beginnutg of year
End of year
Transit
Fund
$ 2,534,385
636,017
3,170,402
6,179,858
48,938
847,202
7,075,998
Bayfront
Trolley Sewer
Station DIFS Fund Total
$ - $
443,599 $ 2,977,984
- 636,017
443,599 3,614,001
91,788 702 6,272,348
- - 48,938
- 60,000 907,202
91,788 60,702 7,228,488
(3,905,596) (91,788)
3,340,200 91,788
5,186 -
3,345,386 91,788
(560,210) -
382,897 (3,614,487)
- 3,431,988
91,250 96,436
(62,927) (62,927)
28,323 3,465,497
411,220 (148,990)
(81,997) - (250,000) (331,997)
(81,997) - (250,000) (331,997)
(642,207) - 161,220 (480,987)
3,309,084 - 6,809,546 10,118,630
$ 2,666,877 $ - $ 6,970,766 $ 9,637,643
~-~J8
City of Chula Vista
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the year ended Jixne 30, 2011
Bayfront
Transit Trolley Sewer
' Fund Station DIFS Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers ~ $ 1,868,607 $ 34,597 $ 443,599
Cash received from other funds - - 62,928
Cash payments to suppliers and employees for goods and services (6,396,205) (136,256) (702)
Other operating revenues 636,017 - -
Netcash provided (used) by operating activities (3,891,581) (101,659) 505,825
CASH FLOWS FROM CAPTTAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (3,409)
Net cash provided by noncapital financing activities (3409)
CASH FLOWS FROM NONCAPTTAL AND RELATED FINANCING ACTIVITIES:
Intergovernmental 3,340,200
Interest expenses -
Transfers (out) (81,997)
Net cash provided (used) by noncapital and related financing activities 3,258,203
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue
Net cash used by investing activities
Net increase (decrease) in cash and investments
CASH AND INVESTMENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating loss to
net cash provided (used) by operating activities:
Depreciafion
Changes in operating assets and liabilities:
Other receivable
Prepaid items
Accounts payable and accrued liabilities
Unearned revenue
Advances from other funds
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
Total
$ 2,346,803
62,928
(6,533,163)
636,017
(3,487,415)
(3,409)
(3,409)
91,788 - 3,431,938
- (62,927) (62,927)
- (250,000) (331,997)
91,788 (312,927) 3,037,064
9,560 - 97,046 106,606
9,560 - 97,046 106,606
(627,227) (9,871) 289,944 (347,154)
1,210,098 9,871 8,478,209 9,698,178
$ 582,871 $ - $ 8,768,153 $ 9,351,024
$ (3,905,596) $ (91,788) $ 382,897 $ (3,614,487)
60,000 907,202
847,202
(59,689) - - (59,689)
- (45,000) - (45,000)
(188,508) 532 - (187,976)
(606,089) 34,597 -. (571,492)
- - 62,928 62,928
21,099 - - 21,099
14,015 (9,871) 122,928 127,072
$ (3,891,581) $ (101,659) $ 505,525 $ (3,487,415)
1-~~9
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a
designated City department for other departments on a cost reimbursement basis.
Fleet Management - -This fund was established to account for vehicle and equipment services
provided to City departments. Revenue accruing to this fund comes from charges to City
departments benefiting from services provided.
Technology Replacement - This fund was established to account for computer and other
technology services provided to City departments. Revenue accruing to this fund comes from
charges to city departments benefiting from services provided.
1-~~0
City of Chula Vista
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2011
ASSETS
Current assets:
Cash and htvestments
Receivables:
Interest
Other
Total current assets
Noncurrent assetr:
Capital assets, net
Total noncurrent assets
Total assets
LIABILTTIES ,
Current liabilities:
Accounts payable and accrued liabffifies
Total current liabilities
Noncurrent liablities:
Compensated absences
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets
Unrestricted
Total net assets
Fleet Technology
Management Replacement Total
$ 2,114,631 $ 8,734 $ 2,123,365
3,987 - 3,987
964,510 - 964,510
964,510 - 964,510
3,116,503 8,734 3,125,237
310,361 - 310,361
310,361 - 310,361
62,702 - 62,702
62,702 - 62,702
373,063 - 373,063
964,510 - 964,510
1,778,930 8,734 1,787,664
$ 2,743,440 $ 8,734 $ 2,752,174
1-~~1
City of Chula Vista
Combining Statement of Revenues, Expenses, and Changes in Net Assets
All Internal Service Funds
For the year ended June 30, 2011
OPERATING REVENUES:
Charges for services
Other
Total operaring revenues
OPERATING EXPENSES:
Operation and administrafion
Depreciation
Total operaring expenses
Operating income (loss)
NONOPERATING REVENUES:
Interest revenue
Gain on disposal of capital assets
Total nonoperating revenues
Net increase (decrease) in net assets
NET ASSETS:
Beginning of year
End of year
Fleet Technology
Management Replacement Total
$ 4,017,705 $ - $ 4,017,705
16,109 495 16,604
4,033,814 495 4,034,309
3,692,788 1,343 3,694,131
474,277 - 474,277
4,167,065 1,343 4,168,408
(133,251) (848) (134,099)
18,185 - 18,185
68,111 - 68,111
86,296 - 86,296
(46,955) (848) (47,803)
2,790,395 9,582 2,799,977
$ 2,743,440 $ 8,734 $ 2,752,174
~ -i~d 2
City of Chula Vista
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2011
CASH FLOWS FROM OPERATING ACTIVnTES:
Cash received from other funds
Cash payments to suppliers and employees for goods and services
Other operating revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPITAL AND RELATED FIIVANCING ACTIVITIES:
Acquisition of capital assets
Proceeds received from disposal of capital assets
Net cash provided by noncapital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue
Net cash used by investing activities
Net increase (decrease) in cash and investments
CASH AND INVESTMENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustmentr to reconcile opera£ntg loss to
net cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Other receivable
Accounts payable and accrued liabilities
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
Fleet Technology
Management Replacement Total
$ 4,021,224 $ - $ 4,021,224
(3,721,955) (1,949) (3,723,904)
16,109 495 16,604
315,378 (1,454) 313,924
(67,124) - (67,124)
68,111 - 68,111
987 - 987
18,722 - 18,722
18,722 - 18,722
335,087 (1,454) 333,633
1,779,544 10,188 1,789,732
$ 2,114,631 $ 8,734 $ 2,123,365
$. (133,251) $ (843) $ (134,099)
474,277 - 474,277
3,519 - 3,519
(27,903) (606) (28,509)
(1,264) - (1,264)
448,629 (606) 448,073
$ 315,378 $ (1,454) $ 313,924
1-'~~ 3
FIDUCIARY FUND
AGENCY FUND
The Agency Fund is used to account for assets held by the City in a trustee capacity for individuals, private
organizations, other governments, and/or other funds.
Special Assessment District -This fund accounts for all money collected to pay for debt services
of the various assessment districts for which the City acts as paying agent but has no legal
commitment or obligation.
1-~$4
City of Chula Vista
Statement of Changes in Assets and Liabilities
Agency Fund
For the year ended June 30, 2011
Special Assessment District
Assets:
Cash and investments
Restricted cash and investments:
Held by fiscal agents
Total assets
Liabilities:
Due to bondholders
Total liabilities
Balance Balance
July 1, 2010 Additions Deletions June 30, 2011
$ 7,692,794 $ 27,378,388 $ (27,369,353) $ 7,701,529
103,558,862 11,274,819 (41,910,239) 72,923,442
$ 111,251,656 $ 38,653,207 $ (69,279,592) $ 80,625,271
$ 111,251,656 $ 38,653,207 $ (69,279,592) $ 80,625,271
$ 111,251,656 $ 38,653,207 $ (69,279,592) $ 80,625,271
1-1(~ 5
CITY OF CHULA VISTA
Statistical Section
June 30, 2011
This part of the City of Chula Vista's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the city's overall financial health.
Table of Contents
Paee No.
Financial Trends 146-149
These schedules contain information to help the reader understand how
the city's financial performance and well-being have changed over
time.
Revenue Capacity 150-153
These schedules contain information to help the reader assess the factors
affecting the city's ability to generate its property and sales taxes.
Debt Capacity 154-161
These schedules present information to help the reader assess the
affordability of the city's current levels of outstanding debt and the city's
ability to issue additional debt in the future.
Demographic and Economic Information 162-164
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the city's financial
activities take place and to help make comparisons over time and with
other governments.
Operating Information 165-169
These schedules contain information about the city's operations and
resources to help the reader understand how the city's financial
information relates to the services the city provides and the activities
it performs.
1-'~~ 6
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CTTY OF CBti1.A VLST.4
Changes in Net Assets -_
Lass Ten Fiscal Yexrs
(ac rual basis of accounting)
Expense:
Governmental acnvilia:
General government
Publi<xfety
Public vrorks
Parks and recreation
library
Interest on Ion;-term debt
Total govemnrental activities expense
Bus ss-type activities-.
Transit
Bay6om Trollry Staion
Bewerfwds
Sewn DIFs
Inlerert on Ions-term debt
Tom] business-type activities expenses
Total primary government expero'es
Program revenues'.
Gavenunmml activities:
Charges for xmces:
General govemmem
Public safety
Public works
Parks end recreation
Library
Operating grafts and <onnbutions
Capital grant-s aid conrcibotions
Total govemmemal activities
pogram revenues
Basiness-ryPe anivities~.
Charges for services:
Tmnsi[
Sewer lends
SewerD~s
Operz[ing grants and contributions
Capial grams end contributions
Total business-type activities
program revenues
Toms primary govcmmmt
program revenues
Ne[ mvenues (exper¢es)'.
Crave mental aztivilies
Business-type aceivities
Total net revenues (expemss)
2002 2003 2004 2005 2006 200] 2008 2009 2010 2011
8 34,569,451 % 36,112,144 E 3?542,162 $ 42,591,851 E 5356Q425 8 65,269,630 8 51609,403 E 49,216,220 8 51,136,412 E 4645],112
44,049,088 46,]95,935 54,9]4,182 63,368,815 ]2,88],220 ]],136,]82 ]8,633,46] ]6,09],546 ]6,008,]6] ]5,664,246
60,489,489 60,981,126 71 482,666 ]9,]33,824 102,122,564 103,11),608 86,410,082 72,509,A9 69,524,903 )1,85],158
8,664,20] ],213,329 5,854,495 ],]5],251 8,085,160 9,353,280 9,650,399 9,%05,893 ],949,90] 6,995,489
],205,111 8,110,31fi 8,645,2)] 8,890,126 10,412,9)3 10,320,817 8,532,621. ],61],286 4,826,602 4,509,999
10438,706 9,322,463 12,827,332 12656,986 12.263806 12,032,833 13,656,514 13,064,138 11,21],]53 11,538,]W
165,436,052- 168,S35.1^ 191526,116 214,988,853 259,338,150 25],210970 248492,506 226.310062 218,564 144 21],022,]11
],OJ3,358 ],]9],]69 '1,25],)22 -1,4]5,184 J,44J,393 ],330,560 9,301,081 8,14)424 ],5]1898 ],0]5,998
102,583 )9,593 85,56] 98,900 86,595 103,691 98,406 98,900 94,802 91 the
- - - - - - 30,323,015 23,528,21] 29,240,616 30,245,584
- - _ - - 203,500 200,fi60 II6,019 123629
fi292]
),1]5,941 ]817362 ],343.289 JS]p 084 ]533988 ]434.251 38,988,929 319]5,101 3?033,333 3]536999
18611993 1)6,412,6]5 198,869,405 2P_, 562,93] 266,9]2,138 264,645.231 28'1,481035 260,285,963 255,59],6)9 254,559,)10
13,fi98,650 29,530,fi24 25,93),30] 23,523,2T1 33,935,)90 45,255,]16 38,563,085 35,959,181 32,419,505 29,]85,0]9
4,465,958 5,003,310 9,991,565 9,555,]56 11,398,58) ],311,407 8,148,8D ),954,060 6,833,Bll ],989,893
31,65105] 34,193401 46,862,521 40,020,38) 52,)49,415 45,520,9]8 23,112.265 25,]93,234 28,]61,170 31,1]8,070
1,559,120 1,534,116 25,000,]48 1'`.]02515 26,935,981 19,106,01> 11081,14] 2,'1]6,032 2,559,668 3,599,653
290,393 603,136 2,]51 059 2,220,368 2,693,08) 810,285 561948 32fi,llfi 505,044 96],908
24,516,560 23,3]2,659 1],426,]44 22,226,690 19,464,389 16,646,713 34,498,639 18,95],46] 1],984,120 11,9)6,818
1627,819 2190,909 1 X81,068 ]9,419,189 5],0]4,381 H5, 608,)65 50,632,109 16,]54,583 23,]11,994 4)81625
)],609.35] 96,328153 129,]53012 192668,182 204,4]1610 220,26]881 16],398,010 108,520,6]3 114,775,114 1124]9046
2,289,591 ?319,322 2,525,349 2,425,531 2,526,68) 2,433,008 1,660,821 3,6]9,)61 3,335,334 2514,185
- _ - - - - 29,138,449 31 016,180 36,284,081 32,25],236
- - - - 539,136 .232,430 166,303 443,599
2,621,995 3,610,30] 3 805,056 4,231445 - - 5,3]8,518 3,390,224 - 3 35],566 3431 988
3 248,226 19]1 311 -
8,159,812 5929,629 6,330,405 8,626,28) 3,526,48) 2,433.008 36,]Ifi 924 38,348,599 43,141,254 IH,6fi],228
85969369 IW 257784 136,083,417 201396,469 406,998,11] 222.700.889 204,114,934 146,869,2]2 15],918,598 151,146,2]4
(8],626495) (J220],I56) -(fil ~J3,104) (23620,fiJ1) (54,866,520) 06,943,069) (8t 094,496) (ll9,]90,189) (103,)89,030) (104,543665)
9838]1 Q94],D3) (1,011,884) 1,034,303 (500],501) (5001243) (23]$005) fi3]3.498 6,109,949 1.130,229
(86642624) (]4,134,891) (62,)95,988) Q1 266,468) (598)40217 (41944332) (83,366,SOq (1134Ifi 690 (976]9,08q (103413.436)
General revenues end oNer cbangn in net assns:
Covemmentel activities:
Taxes:
Property [aces
Sales fax
Otber taus
Investment income
Othn generaltevenaes
Tratsfers
Total govemmentel anivities
Bnsin<es-type aaivira:
Investment income
Ivhscellaneous
Transkrs
Total business-[rye activities
Toms primary govmm~en[
CAangas m tie[ assns
Gove enrol aniviti6
Business-type actmties
Toms Primary government
20,101,086 22,4]2,649 26,6)4,52] 2],014,211 32,59?6]2 38,882,122 43,388,W3 43,319,156 41,198,5]] 39,43>,025
18,613,328 19,612,]]9 21,421 090 23,600,000 30,915,515 33,81'1,351 29,062,355 2fi,263,31] 23,6]4.601 26,]02,443
24,A0,90d 14,844,449 25,826,828 133]3,]49 415]8,824 21,400,961 21,933,35] 21643,366 21,92],6]] 1],485,38)
18,205,856 14,3]2,650 5,651048 11,678,930 10,195,)10 13,38fi,8J2 8,66),014 12,6)6,922 5,]44,616 9,108,662
28,226,6)9 ISS,fi83,692 68,050,14) 18,828,693 4,256,385 J,I3],14p 8,343,946 355,1]5 ),561 794 5,191653
45,1]9 45,626 42,8]6 34,900 122,588 22.618 5,594,536 3,880,091 34]35]1 3,437,]18
110,162,032 22"1.031845 14]666516 104590483 119666694 113,64],064 116.9]a,Tl 108,138,02] 104,200,816 101364,888
316,569 119,056 20,]15 56,485 ]6,605 16],]34 6,]40,155 ?090,311 1,185,660 1,288,4]8
(6,423) 1],90] 115,549 329,381 4,068,083 3,609,5'11 fi]O,IJO 3,215,264 9349,893 1013,]33
(45626) [45,fi26) (42.%]6) (34,900) (122588) (22618) (5,594,53fi) (3880090 (34A 5]0 (3,43 J,)18)
264,520 90,33] 93,386 350,966 4044,100 395468] 1,815,Je9 1425,484 ],561,982 (113550])
110,426,552 22],122,102 14],)59.904 104941449 121,]10,]94 IIJ,60U51 118,]90,020 109,363,511 111,]62,818 100,229,381
22,535,51) 154824,66] 65,893,412 82,269,eII 64,800,1]4 ]6,]03,9)5 35,6)9,]35 (11,652,162) 411,806 (3,1]8,]JJ)
1248391 !185]396) (919,4967 1405,169 (963,401) (1046556) (456316) '1,]98982 136)1,931 (5.98)
E 23,783,928 E 152,96],291 E 849]3,916 E 83,fi]4,981 E 61.83(,))3 E ]5,65),419 3 35,433,519 E 0853,180) E 14,083,]3] E (3,184,053)
The Cily of Chula PSSn imylememed GASB 3d for rhejsscal yearendedhme 3Q 200?. Sn~erfunds mere conversed io an emmy~isefimdinfiscalyear
2008
1 -1UO
CITY OF CHULA VISTA
Fund Balances of Governmental Funds
Lnsl Ten Fiscal Yurs
]modified nasal basis of aaomeiay)
2002 2003 2004 2005 2006 200] 2008 2009 2010 2011
General farad'.
Neserved S 21,9]8,]26 8 21,338]32 S 20,096,238 $ 22,214,963 $ 21,))1,010 $ 22,249,346 S 22238,931 $ 20,]32,416 S 19,4]0096 $ 23,663,6%
Umeservetl 34.340,626 2R 69^.896 2319L333 19,28],213 1811d 943 13.82,911 11,8]1, 191 1241 ],IOi 13,]03,304 11.6]6.992
Total Seseral fuM 16,319,112 10053126 43,281,111 91.102,1]0 39.883.933 38302.211 34.0]6,142 33,149521 33.181800 33,)40,399
Au omet sp~retrmrenw Nna::
Reserved ]3,298,600 106,439,36> 98,14i,ifi2 98,226,224 64,819,111 63,]10,]18 26,303,432 33,191,31] 6~Si2,404 148,981,198
Uvrezerved, repoded m:
Debt scrvioe Nods (41639203)
~ j28,318,]8]) (39,6]8,141) (40,81]038) (42,861,]00) (44004,2]6) 03,496,811) (46,692,600) (16180110) (38,9]3523)
Capipl Protects Nnds 129,]96,298 - ]3,9]],363 81,]fi0,]01 94,412,902 113,639,93] 92,093,2]1 ]8,496,664 ]0,]91,39] 18,393]03
$peual revrnue Nnds 46,630,333 38,423,]39 41,391,612 4898],250 31,893,321 64,843,684 48,690.364 42,365,836 2],336,131 (118,519)
Total aV ONes govemmenml fwds E 208,106,U0 T 190,321662 $ 181,623,434 $ 208869,346 8 193.110,661 % 1]8,243,391 E 109.993.643 $ 99.862,130 E 91,501,¢0 $ 89.892,836
71m Ciry of Chula Vsm implemmrced GASB 3J for Ore frscalyem ended Jmre 30.2003. gewerfurrds wareconvertedla mr enmrprisefimd infismlyenr ] 008.
1-j~9
CITY OP CHIILA VIBTA
CM1evgc iv Puad Balmces o(Governmmnl Fuvds
Lert Ten Fisol Years
(madi6ed nccwl basis of vmoun[ing)
FisW Yea
2002 2003 2004 2001 >006 200] 2008 2009 2010 20t1
Revrnues:
S 64314781
S 38
89
882 S
842
5]9 $
]2
85
192455
$ 86,5096]8 S
93,100,434 $
103,143,]35
E 91,]]0,84fi S
8],26?,934 $
88,8]8,664
Tads
Limns<s and perrttits 3684,)99 ,
,
4,196,9]3 ,
,
5,333,)43 ,
3,946,]33 3G41,613 2,8)0,420 2,)6],830 2p4I,II1 2,2]4,964 2,88),130
Fives avd [odnWrts IA32,BJ9 1501,652 1,568,585 1,398,146 1,]24,862 2,226,622 3,6]1.345 3,31],666 3,124,021 2,348,365
tmem mwmc
I 20
519$^ 13,8)4,221 5,113,3]1 10,199,902 ],946,8)8 IJ,SJ0,3li 10,890,132 10,103,986 6,299,595 8,]16,624
mros ,
125
10
639 613
02)
23 44
032
302 62i53t
22 iO 331,328 24,05839) 1],318,134 9,232,34) 11,]00,991 16498,]44
Developerftts
Inttrgovemmenml ,
,
31,30],984 ,
,
31,Sfie,289 ,
,
24600,541 ,
43,fi42460 41,04],938 36,1010]3 43,962,835 39,49),983 41,965,596 48,1]],]0]
services
Cb
f 194
542
3i 38,994,)]8 46,940,11] 41,850,292 43,823,886 52,694,312 15,6)9,]33 12,435,9>i II,B]],]63 11143,505
arges
or
ONcr ,
,
22,012.323 21.862,659 2i 318.8)9 24331,228 30,012,125 23,>62fi13 3042],119 29,404,221 31,918,308 28,163,311
Toml rtvenues 18986,152 19].04],483 223,950,11] 233091 i4] 26c.Bi8_i00 248.193,390 22).261,103 19],824921 196425,1]2 ID2414p0
Exprndimres '
Curtev[
5)9
34
016
88d
0H4
35
086
30
239
46
034
981
49,62%483
46,904,990
49,196,883
43,640,514
4'5,966,934
39,]01,396
Gcoemlgwemmem ,
,
40
8]1
945 ,
,
]81808
45 ,
,
491410
52 ,
,
6];
449
61 6],913,384 ]3,245,9]8 ]4,]81,035 8,88,52) ]2,080,190 ]0,693,]19
Public safety ,
,
3]3310
)9 ,
49
118
230 ,
i4
43QH50 ,
,
16,220,86] ]2,296,203 ]5.]2Q582 5],)89,303 46,042,]81 45,]]8,665 48,056,229
Public xarks ,
86
)
9]8 ,
,
820
233
4 ,
114
4
824 192
1
369 6,210,040 1,503359 6,869,089 6969,924 5,)55,812 4,030,)6]
Pans and recrcaliou ,
,
684
6
932 ,
,
803
208
] ,
,
383133
) ,
,
95)5)4
8 9,]34,444 9,660,%09 8224,89) ],199,101 4,363,849 3,8]0,646
LLrery
Capita ovtlaY ,
,
14614,051 ,
,
66,322,243 ,
36039,2)1 ,
61,134,151 ]2,988,853 36,48,182 29,125,186 19,305564 2],628,148 37.213,@I
Dcbl;mvrre:
442
316
!
046
20J
J
0]3
13
362
936.24)
4
6,054,618
30,892,802
)%84,d93
1,686525
),301,362
],911995
Prinnpal retircmrn[ ,
,
83J
IO
IP ,
,
81]
0]2
9 .
,
910
T58
10 ,
059211
12 12360,244 12,289,908 12,224,9]3 12,3)6,939 11,383,816 11,094,106
Interest and fiscal cbarges
d i
n
B ,
,
- ,
,
- ,
,
- ,
- - 514,994 34,481 844384 -
ssuance w
on
Tomsespendimres 198 ~2i4]I 226.]9?,115 23),881461 256,405 fi18 29)086.469 293303.304 246.930,364 212138,459 220.16L316 2195]3,939
Eswss (deficiency) of
re rarer (under)
<xPenditmes
(8,)9],319)
(29)45.632)
(13,931.344)
(23,314,13p
(31.22196p
(45,010,114)
(1966926L)
(19,313,134)
(23.]16304)
(12.159,669)
ONer Enanem6 sources (uses):
44
485
931
31]
263
43
894
2]2
26
84
JT
94]
15,698,112
33,900545
26,104,914
10$02,425
61,296,934
36,989,301
Tmnsfersm
f
t
T ,
,
(44
35J
fl9) ,
,
1]8
867)
(43 ,
,
(26,)89,382) ,
,
(84,678 60q (32,132,246) (33,035,509) (20,400,83]) (46589,803) (i],B1i,98p (33,331,865)
mvs
crsou ,
, ,
,
- - ]65
000 - - - 665,884 29,331 WO 42306
Proceeds bom long-mmt debt
nd sale
d
fi
b
P -
145
000
60 320
000
11 - ,
31,240,000 21,255,000 23,]60,000 10,266,14 21,623,000 20],3)2 -
rocee
s
om
o ,
, ,
, - - - - (U,I1g000) (Ifi,710,000) -
Paymeovoescrmvagcn[trust - - 254
35 - 884)
(105 - (3]9,161) (925,8)2)
BondPmmiom/lb9nd disoopm) - - , , 9
630
000
ital azseU
from rile of ca
P
d - 162.351 639,050 - - ,
,
p
rocee
s
Taml orherfinau<ing
rocs (uses) 60,2]3]32 11438398 26),441 38,])4.630 24820,866 25.319,152 13.968j01 1Oj 14,341 13401,451 13.110000
E.vaoNVmryitem:
-
Forgiveness ofdebt (3635,830) -
Tomlc.'ImordinarYilem - (5635,850) - - - - - - -
Necchangcintwdbalanccs f 514]6.433 f (23,923,084) f (13.663903) E 15 d60519 8 (640].093) 5(19.690962) $ (3,)00,9607 S (8,]99.1%9) E (8~328,]5q S 950,335
Depr servim az a percemage of
105%
13
3%
8)%
83%
120%
93°o
IO]%
98%
10,3%
noncapiral expcndrtums 102% .
Pre bry ofChvla Vlsra bnptemenred GASB 3ffor ehe firml yeor endedJUne 3Q 1002 SewerfimAn were conaeneAra on enrerprisefimdrn jrsopear 2009.
1-~~
CITY OF CHLR.A WSTA
Assessed Value and Estimated AcNal Value of Taxable Properly _
Last Ten Fiscal Years
CiN Redevelopment Agency '
Fiscal Year Taxable Taxable Total
Ended Less: Assessed Less: Assessed IJirect Tax
June 30 Secured Unsecwed Exemptions Valuer 8ecwed Unsewred Exemptions Valve - Rate
2002 4,948,41Q,i87 442,676,336 (262,190,215) 10,128,896,888 420 217,884 165,288,557 585,506,441 0.144%
2003 11,489,756,820 359,527,956 (303,902,966) 11,545,381,810 578,332,766 92,744,520 671,077,286 0.144%
2004 13,166,377,450 387,657,132 (349,913,333) 13,224,121,249 548,945,714 84,234,006 633,179,722 0.144%
2005 15,390,029,319 402 366,184 ~ (426,140,493) 15,366,255,050 617,179,700 82,759,507 699,939,207 0.144
2006 18,481,902,606 442,863,514 (452,332,435) 18,472,433,685 735,529,147 82,456,171 817,985,322 0.144%
2007 21,254,352,374 582,720,155 (496,479,594) 21,340,592,935 - 846,124,571 202,760,284 1,048,884,855 0.144%
2008 24,381,647,068 544,113,016 (567,257,524) 24,358,502,560 1,058,205,677 94,614,761 1,152,820,438 0.144%
2009 24,867 548,900 565,347,815 (603,500,966) 24,823,395,749 1,061,746,125 105,702,620 7,167,448,745 0.144%
2010 22,168,954,872 610,945,0>4 (682,909,923) 22,096,990,003 1,094,004,250 131,944,885 1,225,949,135 0.144
2011 21,341,397,693 577 214,653 (683,167,117) 21,235,445,229 1,042,561,908 130,433,921 1,172,995,629 0.144%
~ Ivcludes redevelopment incremental valuation
~ Redevelopment Agency exemptions are included iv City exemption data as they are not reported separately
NOTE:
)n 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the
property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase oF2 % ). With few
exceptions, property is only re-assessed a[ [he time that it is sold to a new owner. At that point, the new assessed value is reassessed a[ [he purchase price of the
property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is
subject to the limitations described above.
Source: Cowtyof San Diego Property Tax Services
-3 /~
CITY OF CHULA VISTA
Direct and Overlapping Property Tax Rates
(Rate per 5100 of assessed value)
Las[ Ten Fiscal Years '
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
City Direct Aates:
City basic rn[e 0.144 0.144 0.144 0.144 0.144 0.144 0.144 0.144 0.144 0.144
Overlapping Rates:
Chula Vista Elementary School 0.024 0 026 0.027 0.028 0.027 0.027 0 020 0.018 0.025 0.026
District Bonds
Sweetwater Union High School 0.025 0 022 0.020 0.018 0 023 0 020 0 047 0.046 0 056. 0 055
District Bonds
Southwestem Community 0.015 0.013 0 007 0.013 0.015 0.014 0.013 0.013 0.034 0.036
College Bonds
MV/D D/S Remainder of 0.008 0 007 0.006 0.006 0.005 0.005 0.005 0.004 0.004 0.004
SDCWA 15019999
CWA South Bay Irrigation 0.001 0.001 0.001 - - - - - - -
Debt Service
Comity of San Diego** 1.000 L000 1000 1000 1.000 L000 L000 1.000 1.000 1.000
Total Overlapping Rates 1073 1.069 L061 1.065 1070 1066 1084 1.081 L120 ].121
Breakdovm of the County of San Diego 1.00 Rate:**
County General 0.15920355
Gen Elem Chula Vista 0 29103670
Higlr Sweetwater Union - 0.18823068
Southwestem Community College 0.05072194
County School Service 0.00757296
County School Service-Capital Outlay 0.00190859
Childrens Institutions Tuition 0.00161434
Regional Occupational Centers 0 00483027
Chula Vista Project (19/84601) 000019695
Chula Vista Project (19/84602) 0.00039390
Educational Revenue Augmentation Fund 0.14676995
Chula Vista City 0.14375071
South Bay litigation 0.00000000
CWA South Bay Irrigation 0.00376946
San Diego Unified Port 0.00000000
Total 1.00000000
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00 % fixed amount. This
1.00% is shazed by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed
amount, property owners are charged taxes as a percentage of assessed property values for the payment of school
bonds a~ other debt service. Overlapping rates may vary by tax rate area. The data listed in this table is
representative of tax rate area 001001.
Source: County of San Diego Property Tax Services
-~'T2
CITY OF CHULA VISTA
Principal Property Tax Payers
Current Year and Nine Years Ago
2011
Percent of
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Rank Value
JPB Development _ $ 429,246,476 1 2.02%
San Diego Expressway Limited
Rohr Inc
GGP-Otay Ranch LP
Equity Residential
Shea Homes LTD Partnership
Regulo Place Apartments Investor
Chula Vista Ceuter LLC
Rancho Mesa LP
Camden USA Inc
Duke Energy South Bay LLC
Brookfield Shea Otay LLC
Eastlake Co LLC
Essex Mazbrisas Apts LP
Bre Properties Inc
CommuniTy Hospital of Chula Vista
Price Reit Inc
Otay Project LP
2002
Percent of
Total City
Taxable Taxable
Assessed Assessed
Value Rank Value
189,100,000 2 0.89% - -
17Q146,931 3 0.84% 67,163,579 4 0.66%
175,335,688 4 0.83°/ -
163,371,160 5 0.77% - -
119,002,983 6 0.56% - -
115,836,938 7 0.55% - -
72,13Q,318 8 0.34% 60,737,739 6 0.60%
64,100,000 9 030% - -
62,546,375 10 0.29% - -
- - 99,988,159 1 0.99%
- - 90,951,715 2 0.90%
- - 67,902,125 3 0.67%
- - 62,1T,597 5 0.61%
- - 44,108,932 7 0.44%
- - 4],907,645 8 0.41%
_ - - .28,944,644 9 0.29%
27,050,489 10 0.27%
$ 1,569,816,869 7®9% 590,928,618 5.83%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: MuniServices, LLC
Counry of San Diego Property Tax Services
1-~'~ 3
CITY OF CHULA VISTA
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year 1 Amount of Levy Years z Amount of Levy
2002 12,806,109 12,597,591 98.37% 96,550 $12,694,141 99.13%
2003 14,293,880 14,061,319 98.37% 112,257 14,173,576 99.16%
2004 16,200,005 15,959,723 98.52% 116,784 16,076,507 99.24%
2005 18,652,193 18,324,623 98.24% 106,497 18,431,120 98.81%
2006 22,096,604 21,617,022 .97.83% 162,806 21,779,829 98.57%
2007 25,159,692 24,409,063 97.02% 209,442 24,618,505 97.85%
2008 28,641,734 27,506,299 96.04% 460,875 27,967,173 97.64%
2009 29,304,771 28,147,698 96.05% 765,703 28,913,402 98.66%
2010 26,246,478 25,313,706 96.45% 538,429 25,852,135 98.50%
2011 25,325,126 24,773,002 97.82% 134,325 24,907,328 98.35%
~ Levy amounts do not include supplemental taxes.
z Collection amounts represent delinquencies collected for all prior years during the current tax year.
Source: County of San Diego Property Tax Services
1-'114
CITY OF CHULA VISTA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year Pension Tax - Total Percentage Debt
Ended Obligation Allocation CertiScatesof Governmental of Personal Per
June 30 Bonds = Bonds Loans Participation Activities Income 1 Capita ~
2002 15,456,449 43,330,000 10,397,443 95,245,000 164,428,892 2.30% 905
2003 14,799,025 42,750,000 7,462,505 104,225,000 169,236,530 2.25% 882
2004 13,985,870 42,125,000 7,315,971 92,920,000 156,346,841 1.99% 774
2005 12,991,962 41,240,000 8,193,481 127,599,255 190,024,698 2.25% 901
2006 11,795,000 40,295,000 9,811,786 144,240,000 206,141,786 2.33% 937
2007 10,415,000 41,275,000 9,573,012 139,845,000 201,108,012 2.22% 887
2008 8,820,000 40,185,000 19,304,342 135,045,000 203,354,342 2.13% 878
2009 7,000,000 45,830,000 18,736,012 130,580,000 202,146,012 2.11% 857
2010 4,980,000 44,925,000 17,686,144 139,700,000 207,291,144 2.19% 866
2011 2,655,000 43,985,000 16,876,860 136,060,000 199,576,860 2.19% 819
~ These ratios are calculated using personal income and population for the prior calendar year
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
1-~~5
CITY OF CHULA VISTA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Thousands, except Per Capita)
Fiscal Year
Ended
June 30 Outstanding
Pension
Obligation
Bonds General Bonded
Tax
Allocation
Bonds Debt
Total
Percent of
Assessed
Value 1
Per
Capita
2002 15,456 43,330 58,786 0.58% 323
2003 14,799 42,750 57,549 .0.50% 300
2004 13,986 42,125 56,111 0.42% 278
2005 12,992 41,240 54,232 0.35% 257
2006 11,795 40,295 52,090 0.28% 237
2007 10,415 41,275 51,690 0.24% 228
2008 8,820 40,185 49,005 0.20% 212
2009 7,000 45,830 52,830 0.21% 224
2010 4,980 44,925 49,905 0.23% 208
2011 2,655 43,985 46,640 0.22% 191
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
' Assessed value has been used because the actual value of taxable property is not
readily available in the State of California. r
1-'I'~ 6
CITY OF CDULA VISTA
Direct and Overlapping Deb[
Jnne 3Q 2011
2010-11 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
Total Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/11
Metropolitan Water District $ 227,670,000
Otay Municipal Water District, LD. No. 27 7,260,000
Southwestern Community College District 246,769,345
Sweetwater Union High School District 338,354,415
Chula Vista City School District 74,835,000
City of Chula Vista Community Facilities Districts 226,625,000
Sweetwater Union High School District Community Facilities Districts 183,040,363
Chula Vista City School District Community Facilities Distxic[s 6,040,000
City of Chula Vista 1915 Act Bonds, 29,022,050
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
Ratios to 2010-11 Assessed Valuation:
Total Overlapping Tax and Assessment Debt .......................4.02%
DIRECT AND OVERLAPPING GENERAL FUND DEBT
San Diego County General Fund Obligations $ 385,650,000
San Diego County Pension Obligations 820,288,160
San Diego County Superintendent of Schools Obligations 19,992,500
Southwestern Community College District Certificates of Participation 1,410,000
Sweetwater Union High Schoo] Dis[ric[ Certificates of Participation 8,73Q,000
Chula Vista City School District Certifcates of Participation 140,055,000
City of Chula Vista Certificates of Participation 136,060,000
City of Chula Vista Pension Obligations 2,655,000
Otay Municipal Water District Certificates of Participation 60,095,000.
TOTAL GROSS DII2ECT AND OVERLAPPING GENERAL FUND DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DE BT
TOTAL DIRECT DEBT
TOTAL GROSS OVERLAPPING DEBT
TOTAL NET OVERLAPPING DEBT
$ 21,235,445,229
1,172,995,829
$ 20,062,449,400
%Annlicable (1)
1.123%
99.995
53.129
63.988
86.797
100.
3.978-100.
100.
100.
City's Shaze of
Debt 6/30/11
$ 2,556,734
7,259,637
131,106,085
2]6,506,223
64,954,535
226,625,000
170,140,679
6,040,000
29.022,050
$ 854,210,943
5.851
5.851
5.851
53.129
63.988
86.797
100.
100.
62.680
$ 22,564,382
47,995,060
1,169,761
749,119
5,586,152
121,563,538
136,060,000
2,655,000
37,667,546
$ 376,010,558
37,667,546
$ 338,343,012
$ 138,715,000
$ 1,091,506,501
$ 1,053,838,955
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
$ 1,230,221,501 (2)
$ 1,192,553,955
(1) Percentage of overlapping agenry's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-banded capital
lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Ratios [o Adiusted Assessed Valuation:
Total Direct Debt ($138,715,000) ......................................... 0.69°
Gross Combined Total Debt ................................................... 6.13
Net Combined Total Debt ...................................... _.............. 5.94%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 06/30/11: $0
Source: California Municipal Statistics, Inc.
-177
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CITY OF CHULA VISTA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Yeaz
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
Pension obligation bonds
Legal debt margin
2002 2003 2004 2005
$ 10,128,896,888 $ 11,545,381,810 $ 13,224,121,249 $ 15,366,255,050
25% 25% 25% 25%
2,132,224,222 2,886,345,453 3,306,03Q,312 3,841,563,763
15% 15% 15% 15%
379,833,633 432,95],818 491,904,547 576,234,164
449
15
456 14,799,025 13,985,870 12,991,962
,
,
377,184 $
$ 364 4]8,152,793 $ 481,918,677 $ 563,242,602
,
Total debt applicable to the limit
as a percentage of debt limit 4.1% 3.4%
The Government Code of the State of California provides for a legal debt limit of
IS% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981-82
fiscal year, each parcel is now assessed at 100% of market value (as of the most
recent change in ownership for that parcel). The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect at the time that the legal
debt margin was enacted by the State of California for local govenunents located
within the state.
Source: City Finance Department
County of Sau Diego Property Tax Services
2.8% 2.3%
1-~~9
Fiscal Yeaz
2006 2007 2008 2009 2010 2011
$ 18,472,433,685 $ 21,340,592,935 $ 24,358,502,560 $ 24,823,395,749 $ 22,096,990,003 $ 21,235,445,229
25% 25% 25% 25% 25% 25%
4,618,108,421 5,335,148,234 6,089,625,640 6,205,848,937 5,524,247,501 5,308,861,307
15% 15% 15% 15% 15% 15%
692,716,263 800,272,235 913,443,846 930,877,341 828,637,125 796,329,196
11
795
000 10,415,000 8,820,000 7,000,000 4,980,000 2,655,000
,
,
$ 680,921,263 $ 789,857,235 $ 904,623,846 $ 923,877,341 $ 823,657,125 $ 793,674,196
1.7% 1.3% 1.0% 0.8% 0.6% 0.3%
1-~@0
CITY OF CHULA VISTA
Pledged-Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
Tax Allocation Bonds
Tax Debt Service
Increment Principal Interest Coverage
2002 7,032,187 S2S,000 2,980,373 2.01
2003 7,822,428 580,000 2,943,OS8 2.22
2004 10,317,573 625,000 2,902,851 2.92
2005 8,939,444 885,000 2,8SS,288 2.39
2006 10,404,880 945,000 2,797,726 2.78
2007 11,935,618 995,000 2,73S,1S0 3.20
2008 13,793,329 1,090,000 1,965,103 4.51
2009 13,781,683 870,000 1,728,722 5.30
2010 13,884,637 905,000 2,070,381 4.67
2011 13,822,938 940,000 2,032,665 4.65
Note: Details regarding the city's outstanding debt can be found in the notes to
the financial statements.
1-~~ 1
4: a
-v~~
a*
-~~2
CITY OF CHULA VISTA
Demographic and Economic Statistics
Last Ten Calendar Years
Pct. of S.D. Pct. Change Avg.
Total CounTy from Previous Median Household
Year Population Population Year Age Size
2001 181,783: 6.4% 4.7% 32.8 3.01
2002 191,922 6.6% 5.6% 32.8 3.03
2003 202,094 6.9% 5.3% 32.9 3.06
2004 211,018 7.1% 4.4% 33.0 3.08
2005 219,939 7.4% 4.2% 33.2 3.10
2006 226,838 7.6% 3.1% 33.4 3.12
2007 231,597 7.7% 2.1% 33.4 3.14
2008 235,767 7.8% 1.8% 33.3 3.17
2009 239,369 7.8% 1.5% 33.3 3.19
2010 243,712 7.9% 1.8% 33.7 3.21
Source: SANDAG, Curtent Estimates (Oct. 2011)
Notes: Dollar values are inflation-adjusted to 2010 dollazs
Due to the recent release of Census 2010, the California Department of Finance has not ye[ updated some
county-level estimates. -
Thus median age and average household size data 2001-09 are preliminary estimates based on trends between 2000
and 2010.
Year-to-year variation for the percent of population living below the poverty level is the result of both actual change
and sampling error.
1-~6~3
Educational Attaitvnent Per
Bachelor s Capita
High School Degree or Pct. Below Unemployment Personal Income Personal
Graduate Higher Pover[y Rate (In Thousands) Income
n/a n/a' n/a 4.9% 7,161,000 39,390
n/a n/a n/a 6.1% 7,517,300 39,170
n/a n/a n/a 6.1% 7,859,200 38,890
n/a n/a n/a 5.6% 8,450,900 40,050
78.5% 24.7% 9.1% 5.1% 8,835,300 40,170
81.7% 24.1% 11.0% 4.7% 9,047,500 39,890
79.6% 25.4% 9.1% 53% 9,526,200 41,li0
81.0% 25.7% 85% 7.0% 9,594,200 40,690
80.0% 25.5% 11.5% 11.2% 9,464,500 39,540
83 0% 29.1% 8.4% 123% 9,093,700 37,310
1-~~4
CTI'Y OF CAULA VISTA
Principal Employers
Current Year and Nine Years Ago
2011
Employer 2
Sweetwater Union High School District
Chula Vista Elementary School District
Rohr Inc/Goodrich Aerospace
Southwestern Community College
Sharp Chula Vista Medical Center
Scripps Mercy Hospital Chula Vista
City of Chula Vista
Wal-Mart
Target
Costco
2002 t
Percent of Percent of
Number of Total Number of Total
Employees Employment Etployees Employment
4,125 7.93% n/a n/a
2,651 5.10% n/a n/a
.2,150 4.13% n/a n/a
2,076 3.99% n/a n/a
1,352 2.60% n/a n/a
1,082 2.08% n/a n/a
1,068 2.05% n/a n/a
1,011 1.94% n/a n/a
591 1.14% n/a n/a
497 0.96% n/a n/a
~ 2002 data is not available.
z Sharp Rees-Stealy falls within the top 10 employers category; however, the actual mm~ber of employees is unavaila
"Total Employment" as used above represents the total employment of all employers located
within City limits.
Source: State Employment Development Department
City Finance Department
Sweetwater Union High School District Human Resources Department
Chula Vista Elementary School District Human Resources Department
Southwestern Community College Human Resources Deparhnent
1-~~5
CITY OF CHULA VISTA
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Full-Time and Part-tune Employees as of June 30
Function 2002 ~ 2003 20042 2005 2006 2007 2008 2009 2010 2011
General government 98 225 465 193 380 324 302 272 273 258
Public safety 362 413 480 528 518 548 504 476 468 448
Public works/engr 269 295 249 335 198 237 188 181 175 155
Parks and recreation 559 162 - 175 230 242 223 169 164 112
Library - 216 182 217 252 227 196 189 73 41
Planning and buildin; 92 92 99 91 97 83 68 63 62 54
Total 1,380 1,403 1,475 1,539 1,675 1,661 1,481 1,350 1,215 1,068
I Library employee count included in Pazks and Recreation count
2 Parks and Recreation employee count included in General Government count
Source: City Finance Department
1-'~~ 6
CITY OF CHULA VISTA
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
2002 2003 2004 2005 2006
Police:
Citizen-initiated calls for service 71,859 71,268 71,000 74,106 73,075
Fire:
Number of emergency calls ~ 7,626 8,088 8,420 9,907 n/a
Inspections n/a n/a n/a n/a 1,780
Public works:
Street resurfacing/maintenance2 151,577 218,632 252,789 142,864 230,598
(square feet)
Parks and recreation:
Number of recreation classes 1,126 2,261 1,819 1,709 1,821
Number of facility rentals 1,096 897 402 680 610
Library:
Circulation 1,268,587 1,308,148 1,308,709 1,414,295 1,467,799
Attendance 1,009,061 1,044,755 1,070,560 1,121,119 1,170,168
Sewer:
New connections 2,464 2,652 2,480 1,934 488
Average daily sewage treatment 15.2 16.3 15.8 17.0 16.9
(millions of gallons)
' Figure for 2005 represents the calendar year instead of fiscal year
Z Excludes filling of potholes and crack sealing.
Note: Data is not available for the fiscal years marked as n/a.
Source: City of Chula Vista
1-~~ 7
Fiscal Year
2007 2008 2009 2010 2011
74,277 74,192 70,051 68,601 65,186
14, 853 14, 548 14, 983 11,490 11,319
2,119 n/a 3,676 2,898 2,389
157,903 77,507 108,745 84,276 99,978
2,231 2,575 2,149 2,301 1,850
855 1,217 969 1,175 1,524
1,344,115 1,265,720 1,160,139 985,157 952,847
1,148,024 1,296,245 820,243 605,979 614,841
529 165 468 469 287
17.0 16.8 16.5 16.2 16.3
1-'~~ 8
CITY OF CHULA VISTA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Yeaz
2002 2003 2004 2005 2006
Police:
Stations 1 1 1 ] 1
Fire:
Fire stations 7 7 7 8 9
Public works:
Streets (miles) 356.2 358.8 370.9 373.8 387.3
Streetlights 7,107 7,547 8,047 8,368 8,501
Traffic signals 161 170 188 199 220
Pazks and recreation:
Community parks 6 6 6 6 9
Recreation facilities 8 9 9 9 12
Library:
Librazies 2 2 2 2 2
Sewer:
Sewer pipes (miles) 338.6 428.2 448.1 455.8 471.3
Storm drains (miles) 173.0 182.3 191.9 219.9 228.6
Maximum daily treatment capacity 19.8 19.8 19.8 20.9 20.9
(millions of gallons)
Source: City of Chula Vista
1-'16~ 9
Fiscal Year
2007 2008 2009 2010 2011
1 I 1 1 1
9 9 9 9 9
403.3 416.9 421.0 429.5 429.5
8,953 9,013 9,026 9,052 9,054
238 253 267 267 268
9 9 9 9 11
12 12 11 11 11
2 2 2 2 2
484.2 493.8 496.5 505.0 505.0
234.0 244.7 245.3 248.9 248.9
20.9 20.9 20.9 20:9 20.9
i -i`~o
a~ ~~
~~ ~J
1-~'~1
C&L
Caporicci & Larson, Inc.
ASubsidiary of Marcum LLP
Certified PublicAccouniants
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNIVIE'NTAUDITING STANDARDS
To the Honorable Mayor and Members of City Council
of the City of Chula Vista
Chula Vista, California
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Chula
Vista, California (City), as of and for the year ended June 30, 2011, which collectively comprise the City's
basic financial, and have issued our report thereon dated December 28, 2011. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States.
Internal Control Over Financial Reyorting
In planning and performing our audit, we considered the City's internal control over financial reporting
in order to determine our auditing procedures for the purpose of expressing our opinion on the basic
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control over financial reporting. Accordingly, we do not express an opinion on the
effectrveness's of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect misstatements on a timely basis. A material weakness is a deficiency; or combination of deficiencies,
in internal control, such that there is a reasonable possibility that a material misstatement of the City's
financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose described
in the first paragraph of this section and was not designed to identify all deficiencies in the internal
control over financial reporting that might be deficiencies, significant deficiencies, or material
weaknesses. We did not identify any deficiencies in internal control over financial reporting that we
consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the. City's basic financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of basic financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly we do not express such an opinion. The
results of our tests disclosed no instance of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
r -w.c-Icpa.com
1-192
To the Honorable Mayor and Members of City Council
of the City of Chula Vista
Chula Vista, California
Page Two
This report is intended solely for the information and use of the City Council, management, federal
awarding agencies, and pass-through entities and is not intended to be and should not be used by
anyone other than these specified parties. However, this report is a matter of public record and its
distribution is not limited.
~~ ~ / ~C.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 28, 2011
1-~'~3
ATTACHMENT 2
CITY OF CHULA VISTA
REDEVELOPMENT AGENCY
BASIC FINANCIAL REPORT
1-194
1-195
Redevelopment Agency
of the City of
Chula Vista
Chula Vista, California
Basic Financial Statevnents and
Independent Auditors' Reports
For the year ended June 30, 2011
C&L
Caporicci & Larson, Inc.
ASubsidiary of Marcum IrP
Certifeed Public Accountants
1-196
Redevelopment Agency of the City of Chula Vista
Basic Financial Statements
For the year ended June 30, 2011
Table of Contents
Page
FINANCIAL SECTION
Independent Auditors' Report ..........................................................................................................................1
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets .......................:..................................................................................................6
Statement of Activities and Changes in Net Assets ............................................................................7
Fund Financial Statements:
Governmental Funds:
Balance Sheet ...................................................................................................................................10
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Assets .............................................................................................................13
Statement of Revenues, Expenditures and Changes in Fund Balances ..................................14
Reconciliation of the Governmental Statement of Revenues, Expenditures
and Changes in Fund Balances to the Government-Wide Statement of Activities
and Changes in Net Assets ........................................................................................................16
Notes to the Basic Financial Statements ...................................................................................................17
Required Supplementary Information:
Budgetary Information .........................................................................................................................44
Budget Comparison Schedules
Low & Mod Income Housing Special Revenue Fund ........:......................................................45
Supplementary Information:
Statement of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual Schedules:
Bayfront/Town Centre I Debt Service Fund ........................................................................48
Town Centre II Otay Valley Southwest Merged Projects Debt Service Fund .................49
Excess Surplus Computation as of July 1, 2010 .................................................................................50
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Basic Financial Statements Performed in Accordance
with Government Auditing Standards .........................:................:.......................................................... 51
Independent Auditors' Report on Compliance ...........................................................................................53
1-197
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
We have audited the accompanying financial statements of the government activities and each major
fund of the Redevelopment Agency of the City of Chula Vista (the "Agency"), a component unit of the
City of Chula Vista, California (the "City"), as of and for the year ended June 30, 2011, which collectively
comprise the Agency's basic financial statements as listed in the foregoing table of contents. These
financial statements are the responsibIlity of the Agency's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate under the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial
reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financialstatements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
As described in Note 1 to the basic financial statements, these basic financial statements present only the
Agency and are not intended to present fairly the financial position and results of operations of the City
in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Agency as of June
30, 2011, and the respective changes in financial position for the fiscal year then ended in conformity
with accounting principles generally accepted in the United States of America.
As explained further in note 13 to the basic financial statements, the Califomia State Legislature has
enacted legislation that is intended to provide for the dissolution of redevelopment agencies in the State
of California. The effects of this legislation are uncertain pending the result of certain lawsuits that have
been initiated to challenge the constitutionality of this legislation.
The Agency adopted the provisions of Governmental Accounting Standards Board ("GASB") Statement
No. S4, Fund Balance Reporting and Governmental Fund Type Definitions as of July 1, 2010.
wmcv clcpa.com
1-198
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
Page Two
In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2011, on our consideration of the Agency's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Audifing Standards and should be considered in assessing the results of our audit.
The Agency has not presented the Management's Discussion and Analysis that the Governmental
Accounting Standards Board has determined to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context, although not
required to be part of the basic financial statements.
Accounting principles generally accepted in the United States of America require that the budgetary
information be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Agency's financial statements as a whole. The accompanying supplementary
information is presented for purposes of additional analysis and is not a required part of the financial
statements. The supplementary information is the responsibility of management and is derived from and
relate directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the financial statements as a whole.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 21, 2011
1-199
BASIC FINANCIAL STATEMENTS
i-moo
Tkis page intentionally left blank.
-~~
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
i-~o2
Redevelopment Agency of the City of Chula Vista
Statement of Net Assets
June 30, 2011
Govenunental
Activifies
ASSETS
Current assets:
Cash and investments ~ $ 5,874,220
Receivables:
Taxes 163,959
Interest - 20,245
Other 246,094
Due from City of Chula V ista 2,202,044
Total current assets 8,506,562
Noncurrent assets:
Restricted cash and nrvestments:
Held by City 630,085
Held by fiscal agents 6,225,123
Loans receivable 20'423'547
Deferred charges, net 1,134,334
Capital Assets:
Nondepreciable assets 9,624,570
Depreciable assets, net 1,323,099
Total capital assets 10,947,969
Total noncurrent assets 39,364,058
Totat assets 47,870,620
LIABILI-TIES
Current liabilities.
Accounts payable and accrued liabilities 2,495,300
Interest payable 568,712
Long-term debt -due witltin one year 1,155,000
Total current liabilities 4,219p12
Long-term liablities:
Long-term debt -due in more than a year 55,420,279
Total long-term liabilities 55,420,279
Total liabilities 59,639,291
NET ASSETS
Investments N capital assets 10,947,969
Restricted for:
Low and moderate income housing 12,083,556
Debt service 3,579,295
Capital projects 4,707,405
Total restricted 20,370,256
Unrestricted (deficit) (43,086,896)
Total net assets (deficit) $ (11,76&,671)
See accompanying notes to basic fniancial statements.
1-~03
Redevelopment Agency of the City of Chula Vista
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2011
Functions/Programs Expenses
Primary government:
Govemmental activities:
Net (Expense)
Revenue azid
CEanges in
Program Revenues Net Assets
Operating Capital Total
Clurges for Grants and Grants and Program Governmental
Services Contributions Contributions Revenues Acfivifies
General government $ 5,259,224 $ - $ - $ - $ - $ (5,259,224)
Interest on long-term debt 2,849,322 - - - - (2,549,322)
Total govemmental activities $ 8,108,546 $ - $ - $ - $ - (5,108,546)
General revenues:
Taxes:
Property tax increment
Investment earnings
Miscellaneous
Gain Erom sale of property
Transfers to City of Chula Vista
Total general revenues and transfers
Change in net assets
Net assets (deficit) -beginning of yeaz
Net assets (deficit) -end of yeaz
See accompanyhig notes to basic fhrancia] statements.
13,822,938
1,306,832
154,919
9,463,893
ie nno vi n
16,698,866
8,590,320
(20,358,991)
$ (11,768,671)
1-~04
TTsis page inteitrionally left blank
1-2805
FUND FINANCIAL STATEMENTS
i-dos
Redevelopment Agency of the City of Chula Vista
Balance Sheet
Governmental Funds
June 30, 2011
Major Funds
ASSEF$
Cash and investments
Receivables:
Taxes
Interest
Loans
Other
Due from City of Chula V ista
Due from other funds
Advances to other funds
Restricted cash and investments:
Held by Agency
Held by fiscal agents
Total assets
LIABILITIES AND
FUND BALANCES
Low & Mod
Income Housing
Special Revenue
$ 2,731,763 $
Bayfront/
Town Centre I
Capital Projects
1,999 $ 3,525 $ 32,656
- - 32,477
Liabilities:
Accountr payable and accrued liabilities
Advances from other funds
Due to other funds
Deferred revenue
Total liabilifies
fund Balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
See accompazryvlg notes to basic financial statements.
12,211 30 ZS 1,164
20,423,547 - - -
2,202,044 - - -
5,046,796 - - 4,702,030
630,085 - - -
- 2,032,906 1,540,810 -
$ 31,046,446 $ 2,034,935 $ 1,544,360 $ 4,768,327
$ 168 $ -
- 1,673,150
18,962,722 -
18,962,890 1,673,150
- $ 375,443
8,075,676 -
- 986,656
- 1,488,880
8,075,676 2,850,979
6,507,622 - - 3,213,150
5,575,934 2,034,935 1,544,360 -
_ - - 196,062
- (1,673,150) .(8,075,676) (1,491,864)
12,083,556 361,785 (6,531,316) 1,917,348
$ 31,046,446 $ 2,034,935 - $ 1,544,360 $ 4,768,327
1-~~17
Town Centre II
Otay Valley
Bayfront/ Southwest
Town Centre I Merged Projects
Debt Service Debt Service
$
Redevelopment Agency of the City of Chula Vista
Balance Sheet
Governmental Funds
June 30, 2011
ASSETS
Cash and investments
Receivables:
Taxes
Interest
Loans
Other
Dve from City of Chula Vista
Due from other funds
Advances to other funds
Restricted cash and uwestments:
Held by Agency
Held by fiscal agents
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Advances from other funds
Due to other funds
Deterred revenue
Total Eabilities
Fund Balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
Major Fund
Town Centre II
Otay Valley
Southwest
Merged
Capital Projects Total
$ 3,104,277 $ 5,874,220
131,482 163,959
6,815 20,245
- 20,473,547
246,094 24b,094
- 2,202,044
986,656 986,656
- 9,748,826
- 630,085
2,654,407 6,228,123
$ 7,129,731 $ 46,523,799
$ 2,119,689 $ 2,495,300
- 9,748,826
- 986,656
246,094 20,697,696
2,365,733 33,928,478
- 9,720,772
4,707,405 13,862,634
56,543 252,605
- (11,240,690)
4,763,948 12,595,321
$ 7,129,731 $ 46,529,799
~-2b8
This page intentionally left 61ank,
1-~~9
Redevelopment Agency of the City of Chula Vista
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30, 2011
Total Fund Balances -Total Governmental Funds
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Deferred dtarges, such as bonds issuance costs from issuing debt, were expenditures in The fund financial
statements but were deferred and subject to capitalizaflon azid amortization on the Government-Wide
Statement of Net Assets.
Capital assets used in governmental activities were not financial resources and therefore were not
reported in governmental funds.
Nondepreciable
Depreciable, net
Total capital assets, net
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable
was not reported as a liability in Governmental Funds Balance Sheet.
Long-term liabilities were not due and payable in the current period. Therefore, were not reported b~ the
Govemmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:
Long-term liabilities -due within one year
Long-term liabilities -due in more thaz~ one year
Total long-term liabilities
Deferred revenues recorded in govemmental fund financial statements resulting from activifies in which
revenues were earned but funds were not available were recognized as revenues in flee Government-Wide
Financial Statements.
Net Assets (deficit) of Governmental Activities
See accompanying notes to basic fbrancial statements.
$ 12,595,321
1,134,334
9,624,870
1,323,099
10,947,969
(568,712)
(1,155,000)
(55,420,279)
(56,575,279)
20,697,696
$ (11,768,671)
1-~~I 0
Redevelopment Agency of the City of Chula Vista
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the yeaz ended June 30, 2011
REVENUES:
Taxes
Use of money and property
Other
Total revenues
EXPENDTTITRES:
Current:
General government
Capital outlay
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Major Funds
Town Centre lI
Otay Valley
Low & Mod Bayfront/ Southwest Bayfront/
.- Income Housing Town Centre I Merged Projects Town Centre I
Special Revenue Debt Service Debt Service Capital Projects
$ 2,764,588 $ - $ - $ 3,567,705
89,340 97,802 (1,128) 83,569
50 24 19 40,288
2,853,978 97,826 (1,109) 3,691,862
557,096 8,000 2,495 707,764
_ - - 100,757
Proceeds from sale of property
Proceeds from advances from City of Chula Vista
Repayment of advances from City of Chula Vista
Transfers to City of Chula Vista
Transfers in
Transfers out
Total other financing sources
NET CHANGE IN FUND BALANCES
FUND BALANCE (DEFICTF):
Beginning of year
End of year
See accompanying notes to basic financial statements.
557,096
2,296,882
(4,394,500)
(4,394,500)
(2,097,618)
1,037,270
1,273,428
2,318,698
(2,zzos7z)
157,695
(500,000)
2,553,046
(279,256)
1,931,485
(289,387)
72,730
1,498,715
1,573,940 808,521
(1,575,049) 2,883,341
277,673 -
(11,630,000) -
- (2,500,000)
13,164,419 279,256
(577,357) (2,553,046)
1,234,735 (4,773,790)
(340,314) (1,890,449)
14,181,174 651,172 (6,191,002) 3,807,797
$ 12,083,556 $ 361,785 $ (6,531,316) $ 1,917,348
1- ~~11
Redevelopment Agency of the City of Chula Vista
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2011
Major Fund
Town Centre H
Otay Valley
Southwest
Merged
Capital Projects Total
REVENUES: -
Taxes $ 7,490,645 $ 13,822,938
Use of money and property 33,293 303,176
Other 114,538 154,919
Total revenues 7,638,476 14,281,033
EXPENDITURES
Current:
General govemment 3,615,858 4,891,213
Capital outlay 219,530 320,287
Deht Service:
Principal - 1,110,000
Interest and fiscal charges - - 2,772,143
Total expenditures 3,835,388 9,093,643
REVENUES OVER (UNDER)
EXPENDITURES 3,803,088 5,187,390
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property
Proceeds from advances from City of Chula Vista
Repayment of advances from City of Chula Vista
Transfers to City of Chula Vista
Transfers in
Transfers out
Total other financing sources
NET CHANGE IN FUND BALANCES
FUND BALANCE (DEFICIT):
Beginning of year
End of year
9,630,000 9,530,000
- 435,368
- (12,130,000)
(1,155,216) (8,049,716)
3,020,300 19,017,021
(15,607,362) (19,017,021)
(4,112,278) (10,114,348)
(309,190)
5,073,138
$ 4,763,948
(4,926,958)
17,522,279
$ 12,595,321
~-"~2
Redevelopment Agency of the City of Chula Vista
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2011
Net Change in Fund Balances -Total Governmental Funds $ (4,926,958)
Amounts reported for govermnental activities in the Statement of Activities were different because:
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and
Changes in Net Assets, but they did not require the use of current financial resources. Therefore,
depreciation expense was not reported as expenditures in the Governmental Funds. (47,724)
Sales of City property provide current fhrancial resources to governmental funds, but selling capital
assets decreases capital assets in the Government-Wide Statement of Net Assets
Proceeds from sale of City property 9,463,893
The issuance of long-term liabilities provided current financial resources to governmental funds, but
issuing debt increased long-term liabilities ur the Government-Wide Statement of Net Assets. Repayment
of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term
liabilities in the Government-Wide Statement of Net Assets.
Principal payment of long-term debt 1,110,000
Proceeds from advances from City of Clmla Vista (435,368)
Repayment of advances from City of Chula Vista 12,130,000
Amortization expense was reported in the Government-Wide Statement of Activities and Changes in Net
Assets, but did not require the use of current financial resources. Therefore, amortization expense was not
reported as an expenditure in the Governmental Funds.
Bond discount (`~'~4)
Deferred charges (58'732)
Interest earned on long-term receivables did not provide current financial resources and was not reported
as revenue in the Governmental Funds. 1,003,656
Interest expense on long-teen debt was reported in the Government-Wide Statement of Activities and
Changes in Net Assets, but it did not require the use of current financial resources. This amount
represented the change in accrued interest from prior year. 26,327
Change in Net Assets of Governmental Activities $ 8,590,320
See accompanying notes to basic financial statements.
1-~~ 3
NOTES TO BASIC
FINANCIAL STATEMENTS
1-~14
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Redevelopment Agency of the City of Chula Vista (the "Agency'), a
component unit of the City of Chula Vista, California, (the "City") have been prepared in conformity with
generally accepted accounting principles ("U.S. GAAP") as applied to governmental agencies. The
Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing
governmental accounting and financial reporting principles. The more significant of the City's accounting
policies are described below.
A. Reporting Entity
The Agency is considered a blended component unit of the City. The Agency was created by the City of
Chula Vista City Council ("City Council") in October 1972. The City Manager acts as the Agency's
Executive Director and the City Council acts as the governing commission, which exerts significant
influence over its operations. The primary purpose of the Agency is to eliminate blighted areas by
encouraging the development of residential, commercial, industrial, recreational and public facilities.
The Bayfront/Town Centre I Project encompasses approximately 775 acres; its general objective is to
redevelop the Bayfront area and the central business district. The goal of the Town Centre II Project,
which consists of approximately 212.5 acres in the central area of Chula Vista, is to revitalize the area
into a principal regional shopping center. The Otay Valley Road Project area, comprising
approximately 770 acres, was created to establish and upgrade infrastructure capital improvements for
the promotion of industrial development. The Southwest Project area, comprising approximately 1,100
acres, was created fo upgrade the commercial, industrial, residential properties and rights-of-way at a
more rapid pace than would occur without a redevelopment plan.
Funds for redevelopment projects aze provided from vazious sources, including incremental property
tax revenues, tax allocation bonds, and advances from the City.
B. Basis of Accounting and Measurement Focus
The accounts of the Agency are organized on the basis of funds, each of which is considered a separate
accounting entity with its own self-balancing accounts that comprise its assets, liabilities, fund balance,
revenues and expenditures. These funds are established for the purpose of carrying out specific
activities or certain objectives in accordance with specific. regulations, restrictions or limitations.
Government resources are allocated to and accounted for in individual funds based upon the purpose
for which they are to be spent and the means by which spending activities are controlled.
Government -Wide Financial Statements
The Agency's Government-Wide Financial Statements include a Statement of Net Assets and a
Statement of Activities and Changes in Net Assets. These statements present summaries of
governmental activities for the Agency accompanied by a total column. The Agency does not have any
business-type activities, therefore only governmental activities are reported.
1-~~ 5
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Government -Wide Financial Statements, Continued
These basic financial statements are presented on an "economic resources" measurement focus and the
accrual basis of accounting. Accordingly, all of the Agency's assets and liabilities, including capital
assets and long-term liabilities, are included in the accompanying Statement of Net Assets. The
Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues
are recognized in the period in which they are earned while expenses are recognized in the period in
which the liability is incurred.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. The following interfund activities have been eliminated:
- Due to and from other funds
- Advances to and from other funds
- Transfers in and out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances.
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in
Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in net current assets. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available
to finance expenditures of the current period.
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days
after year-end) are recognized when due. The primary revenue sources, which have been treated as
susceptible to accrual by the Agency, are increment property taxes, intergovernmental revenues, other
taxes, interest revenue, rental revenue and certain charges for services. Expenditures are recorded in the
accounting period in which the related fund liability is incurred.
Deferred revenues arise when potential revenues do not meet both the "measurable' and "available"
criteria for recognition in the current period. Deferred revenues also arise when the government
receives resources before it has a legal claim to them, as when grant monies are received prior to
incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are
met or when the government has a legal claim to the resources, the deferred revenue is removed from
the balance sheet and revenue is recognized.
The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
1-2`~ 6
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Governmental Fund Financial Statements, Continued
The Agency reports the following major governmental funds:
Low & Moderate Income Housing Special Revenue Fund is used to account for the 20% portion of
the Agency's tax increment revenue that is required to be set aside for low and moderate income
housing and related expenditures.
Bayfront/Town Centre I Debt Service Fund is used to account for the repayment of interest and
principal on long-term debt, and the accumulation of resources thereof associated with the Bayfrmlt
and Town Cenhe I Project Areas.
Town Centre II/Otay Valley/Southwest Merged Projects Debt Service Fund is used to account for
the payment of interest and principal on long-term debt, and the accumulation of resources thereof
associated with the Town Centre II, Otay Valley Road, and Southwest Merged Project Areas.
Bayfront/Town Centre I Capital Projects Fund is used to account for the financial resources used in
developing the Bayfront and Town Centre I Project Areas.
Town Centre II/Otay Valley(Southwest Merged Projects Capital Protects Fund is used to account
for the financial resources used in developing the Town Centre II, Otay Valley Road, and Southwest
Merged Project Areas.
C. Cash and Investments
The Agency maintains its cash with the City, which pools cash resources from all funds in order to
facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest
safety and least risk. Cash in excess of current requirements is invested in various interest-bearing
accounts and other investments for varying terms.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments
and for External Investment Pools, highly liquid money mazket investments with maturities of one year or
less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
Market value is used as fair value for those securities for which market quotations are readily available.
The City parficipates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LATE) which has invested a portion of the pooled funds in structured notes and asset-
backed securites. LAIF determines fair value on its investment portfolio based on market quotations
for those securities where market quotations are readly available and based on amortized cost or best
estimate for those securities where market value is not readily available. LAIF's investments are subject
to credit risk with the full faith and credit of the State of California collateralizing these investments. In
addition, these investments are subject to market risk as to change in interest rates.
1-~97
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Cash and Investments, Continued
Cash equivalents are considered amounts in demand deposits and short-teen investments with a
maturity date within three months of the date acquired by the Agency and are presented as "Cash and
Investments" in the accompanying basic financial statements.
In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of
GASB Statement No.3), certain disclosure requirements, if applicable, for deposit and investment risks
are specified for the following areas:
- Interest Rate Risk
Credit Risk
• Overall
• Custodial Credit Risk
• Concentration of Credit Risk
Foreign Currency Risk
D. Cash and Investments with Fiscal Agents
Cash and investments with fiscal agents are restricted for the redemption of bonded debt and for
acquisition and construction of capital projects.
E. Capital Assets
The Agency's assets are capitalized at historical cost or estimated historical cost. Agency policy has set
the capitalization threshold for reporting capital assets at $5,000. Gifts or contributions of capital assets
are recorded at fair market value when received. Depreciation is recorded on a straight-line basis over
the useful lives of the assets as follows:
Buildings 25 years
Improvements other than buildings 15 years
Machinery and equipment 5-20 years
The Agency had no infrash~ucture assets included in capital assets at June 30, 2011.
F. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financed obligations are reported as liabilifies in the Government-Wide
Financial Statements.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of applicable premium or
discount.
1-~~ 8
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
L .SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
F. Long-Term Debt, Continued
Fund Financial Statements
The Fund Financial Statements do not present long-term debt. Consequently, long-term debt is shown
as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-
Wide Statement of Net Assets.
G. Property Tax Revenues
Incremental property tax revenues represent property taxes in each project area arising from increased
assessed valuations over base valuations established at the inception of the project area. Incremental
property taxes from each project azea accrue to the Agency until all liabilities and commitments of the
project area have been repaid (including cumulative funds provided or committed by the Agency).
After all such indebtedness has been repaid; all property taxes from the project area revert back to the
various taxing authorities.
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1
of each yeaz. Property taxes become. delinquent on December 10 and April 10, for the first and second
installments, respectively. The lien date is March 1. The County of San Diego, California (the
"County") bills and collects property taxes and remits them to the Agency according to a payment
schedule established by the County.
The County is permitted by State law to levy taxes at 1% of full market value (at rime of purchase) and
can increase the property tax rate no more than 2% per year. The District receives a share of this basic
tax levy proportionate to what it received during the years 1976-1978.
Property tax revenues are recognized in the fiscal year for which the taxes have been levied.
No allowance for doubtful accounts was considered necessary.
H. Low and Moderate Income Housing
The California Health and Safety Code requires Agency project areas to deposit 20% of allocated
incremental property tax revenues (or 20% of net bond proceeds plus 20% of tax incremental revenues
in excess of debt service payments on the bond) into a Low and Moderate Income Housing Fund. This
money is restricted for the purpose of increasing or improving the community's supply of low and
moderate income housing. The Agency accounts for these revenues in a special revenue fund.
1-c'4$9
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
I. Net Assets
In the Government-Wide Financial Statements, net assets aze classified in the following categories:
Invested in Caroital Assets -This amount consists of capital assets net of accumulated depreciation.
Rest~7cted Net Assets -This amount is restricted by external creditors, grantors, contributors, or laws
or regulations imposed by other governments.
Unrestricted Net Assets -This amount represents the remaining net assets that do not meet the
definition of ' nlvested in capital assets, net of related debt" or "restricted net assets."
When an expense is incurred for purposes for which both restricted and unrestricted resources are
available, the Agency's policy is to apply restricted resources first.
J. Fund Balance
In the governmental fund financial statements, fund balances are classified in the following categories:
Nonspendable Fund Balance -This amount indicates the portion of funds balances which cannot be
spent because they are either not in spendable form, such as prepaid items, inventories or loans
receivable, or legally or contractually required to be maintained intact, such as the principal portion
of an endowment.
Restricted Fund Balance -This amount indicates the portion of fund balaiues which has been
restricted a) externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments; or b) imposed by law through
constitutional provisions or enabling legislation.
Committed Fund Balance -This amount indicate the portion of fund balances which can only be used
for specific purposes pursuant to formal resolution or ordinance of the Agency Board.
Assigned Fund Balance -This amount indicates the portion of fund balances which is constrained by
the Agency's intent to be used for specific purpose, but is neither restricted nor committed. The
Agency's Executive Director is authorized to determine and define the amount of assigned fund
balances.
Unassigned Fund Balance -This amount indicates the portion of fund balance that do not fall into one
of the above categories.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the
Agency uses the unrestricted resources in the following order: committed, assigned, and unassigned.
1-~~LO
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses. Actual results could differ from those estimates.
2. CASH AND INVESTMENTS
The following is a summary of pooled cash and investments and restricted cash and investments at
June 30, 2011:
Cash and investments $ 5,874,220
Restricted cash and investments:
Held by Agency 630,085
Held by fiscal agents 6,228,123
Total cash and investments $ 12,732,428
The Agency has pooled its cash and investments with the City in order to achieve a higher return on
investment. Certain restricted funds, which are held and invested by independent outside custodians
through contractual agreements, are not pooled. These restricted funds include cash with fiscal agents.
Where applicable, the Agency follows the City's investment policy.
Cash and investments consisted of the following at June 30, 2011:
Cash:
Demand deposits with financial institution
Total cash
Investments:
Local Agency Investment Fund
hlvestment held by fiscal agents:
Money Markt Fund
U.S. Treasury Obligations
Total investments
Total cash and investments
$ 630,085
630,085
5,874,220
2,032,906
4,195,217
12,102,343
$ 12,732,428
1-~~l
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH AND INVESTMENTS, Continued
Investments Authorized by the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies certain
provisions of the California Goverrunent Code (or the City's investment policy, where more reshictive) that
address interest rate risk, credit risk, and concentration of credit risk. This table does not address
investments of debt proceeds held by bond trustee that are governed by the provisions of debt ao ~eements
of the City, rather than the general provisions of the California Government Code or the City's investment
policy.
Authorized
Livestment Type
Bankers' Acceptance
Negotiable Certificates of Deposits
Commercial Paper
State and Local Agency Bond Issues
U.S. Treasury Obligations
U.S. Agency Securitites
Repurchase Agreement
Reverse-Purchase Agreements
Medium-Term Corporate Notes
Time Certificates of Deposits
Money Market Funds
Local Agency Investment Fund (LAIF)
Investment Trust of California (CalTrust)
Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio* One Issuer
180 days 40 % 30
5 years 30% 5
270 days 25 % 10
5 years None 10 %
5 years None None
5 years None None
90 days None 10
92 days 20 % 10
5 years 30 % 10
3 years None 10%
N/A 15% 10%
N/A None $40 MIllion**
N/A. None 10%
* Excludntg amounts held by bond trustee that are not subject to Califontia Government Code resh~iction.
** Maximuut is $40 million per account.
1-~'~ 2
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH AND INVESTMENTS, Continued
Investments Authorized by Debt Agreement
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreement,
rather than the general provisions of the California Government Code or the City's investment policy. The
table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk,
and concentration of credit risk.
Maximum Maximum
Aufltorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio One Issuer
U.S. Treasury Obligations None None None
Federal Home Loan Mortgage Corporation None None None
Farm Credit Banks None None None
Federal Home Loan Banks None None None
Federal National Mortgage Association None None None
Student Loan Marketing Association None None None
Financing Corporation None None None
Resolution Funding Corporation None None None
Certificates of Deposits, Time Deposits and Bankers' Acceptance 30 days None None
Commercial Paper 270 days None None
Money Market Funds None None None
State Obligations .None None None
Municipal Obligations None ~ None None
Repurchase Agreements None None None
Investment Agreements None None None
Local Agency Investment Fund (LAIF) None None Alone
Local Agency Investment Fund (LAIF)
The Agency is a participant in LAIF which is regulated by California Government Code Section 16429
under the oversight of the Treasurer of the State of California. The Agency's investments in LAIF at June
30, 2011 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that
have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from pool of assets such as principal and interest repayments from a
pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2011, the Agency had $5,874,220 invested in LAIF, which had invested 5.01% of the pool
investment funds in Medium-Term and Short-Term Structured Notes and Asset-Backed Securities.
1-213
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
.For the year ended June 30, 2011
2. CASH AND INVESTMENTS, Continued
Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the Agency manages its exposure to interest rate risk is
by purchasing a combination of shorter term and longer term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flows and liquidity needed for operations. Information about the sensitivity of
the fair values of the Agency's investments and those held by bond trustees to market interest rate fluctuations
is provided by the following table that shows the distribution of the Agency's investments by maturity:
Remaining
Maturity
12 Months
Investment Type
Local Agency Investment Fund
Held by fiscal agents:
Money Markt Fund
U.S. Treasury Obligafions
Total
Amount of Fewer
5,874,220 $ 5,874,220
2,032,906 2,032,906
4,195,217 4,195,217
$ 12,102,343 $ 12,102,343
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. To be eligible to receive Agency money, a bank, savings association, federal association, or
federally insured industrial loan company has received an overall rating of not less than "satisfactory" in its
most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the
credit needs of California's communities, including low- and moderate-income neighborhoods.
Agency investments are rated by the nationally recognized statistical rating organizations as follows:
Standazd
Investment Type Fair Value Moody's & Poor's
Local Agency Investment Fund $ 5,874,220 Not Rated Not Rated
Held by fiscal agents:
Money Markt Fund 2,032,906 Aaa AAA
U.S. Treasury Obligafions 4,195,217 Aaa AAA
Total $ 12,102,343
1- 2'L 4
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
2. CASH AND INVESTMENTS, Continued
Custodial Credit Risk
Demand Deposits:
The California Government Code requires California banks and savings and loan associations to secure the
Agency's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the Agency's name.
The market value of pledged securities must equal at least 110% of the Agency's pooled cash deposits.
California law also allows institutions to secure Agency deposits by pledging first trust deed mortgage
notes having a value of 150% of the Agency's total cash deposits. The Agency may waive collateral
requirements for cash deposits, which are fully insured by the Federal Deposit Insurance Corporation. The
Agency, however, has not waived the collateralizationrequirernents.
Investments:
For an investment, custodial credit risk is the risk that, in the event of the failure of the counter party, the
Agency will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are
held by a third-party custodian (US Bank). US Bank is the fifth largest commercial bank in the nation.
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. Investments in any one issuer that represent
5% or more of total Agency's investments are as follows:
Investment Type Amount
Invested Percentage of
Investments
Local Agency Investment Fund $ S,S74,220 48.54%
Held by fiscal agents:
Money Markt Fund 2,032,906 16.80
U.S. Treasury Obligations 4,195,217 34.66
Total $ 12,102,343 100.00%
1-~25
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. LOANS RECEIVABLE
At June 30, 2011, the Agency had the following loans receivable:
Governmental Activities
Principal Deferred Interest Total
South Bay Community Services $ 587,994 $ 306,811 $ 1,194,805
Heritage (South Bay wmmm~ity Villas L.P.) 4,400,000 1,261,710 5,661,710
Chula Vista Rehabflitation CHIP Loans 1,229,832 153,076 1,382,908
Park Village Apts (Civic Center Barrio Housing Corporation) 204,531 - 204,531
Rancho Buena Vista Housbig (Chelsea Investment Corporation) 1,000,000 192,658 1,192,658
MobIle Home Assistance Programs 55,952 - 55,952
St. Regis Park (Chelsea Investment Corporation) 1,387,152 917,415 2,304,567
Main Plaza (Alpha III Development Inc.) 1,500,000 292,479 1,792,479
Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000 953,937 6,633,937
Total $ 16,345,461 $ 4,078,086 $ 20,423,547
South Bal~Communit~ Settnces
In 1998, the Agency entered into a loan agreement with South Bay Community Services, a California non-
profit public benefit corporation. The loan amount of $478,200 was made to enable South Bay Community
Services to develop a 40-unit affordable multi-family housing rental project to provide housing to low
income families. The note is secured by a deed of trust on certain property and assignments of rents.
Interest accrues annually at 3% of the unpaid principal balance of the note. At June 30, 2011, the
outstanding balance of the loan was $478,200 and interest of $156,987 has been deferred.
In 1998, the Agency entered into a loan agreement with South Bay Community Services for the acquisition
of property located at 1536 Concord Way for a domestic violence shelter site, other transitional living
programs or housing for very low income families. The loan is secured by a deed of trust and a promissory
note for the properties on behalf of the Agency. Repayment of the loan is limited to annual payment based
on residual receipts. At June 30, 2011, the outstanding balance of the loan was $36,794 and interest of
$27,762 has been deferred.
In 1999, the Agency entered into a $300,000 loan agreement with South Bay Community Services for the
acquisition of a real property at 746 ADA Street, and improving it with amulti-family residential project
consisting of 11 units. These units, called the Trolley Trestle, will provide affordable housing for low
income young adults who have completed the County of San Diego Foster Care program. The loan is
secured by a Deed of Trust and Security Agreement and wIll accrue 3% interest. Payment of principal and
interest will be made from 50% of residual receipts for 55 years. At June 30, 2011, the outstanding balance
of the loan was $373,000 and interest of $122,062 has been deferred.
1-~L6
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. LOANS RECEIVABLE, Continued
Heritage (South Bad Community Villas, L.P).
In 2002, the City entered into a loan agreement with South Bay Community Villas, L.P. for the development
of the Heritage Town Center _multi-family rental housing project. Agency assistance is in the form of
residual receipt loan secured by a promissory note and deed of trust. The outstanding principal and
interest on the loan will be repaid over fifty five years and accrues interest at 3% per annum. Payment of
principal and interest on the Agency loan is made on an annual basis, out of a fund equal to fifty percent of
the net cash flow of the project (residual receipts) after debt service on bonds, payment of deferred
developers fee, and reasonable operating expense have been paid. At June 30, 2011, the outstanding balance
of the loan was $4,400,000 and interest of $1,261,710 has been deferred.
Chula Vista Rehabilitation CHIP Loans
The Chula Vista RehabIlitation Community Housing Improvement Program (CHIP) is under the direct
control of the Agency. CHIP offers deferred and low interest rate home improvement loans to qualified
borrowers residing within a target area. Loan repayments are re-deposited into the program cash accounts
and are redistributed as future loans. At June 30, 2011, the outstanding balances of the loans were
$1,229,832 and interest of $153,076 has been deferred.
Park Village Apartments (Civic Center Barrio Housinu Cotyoration)
In 1991, the Agency entered into a loan agreement with the Civic Center Barrio Housing Corporation, a
California non-profit public benefit corporation. The loan was made for the purchase of land and the
development of a 28-unit low income housing project. During 1992, the loan was assigned to Park Village
Apartments Ltd., a California limited partnership in which Civic Center Barrio Housing Corporation is the
managing general partner. The loan is secured by a deed of trust on the property and assignment of rents.
Principal and interest are payable monthly. In 2009, a second amendment to the loan was entered into
changing the interest from 5% to 3% per annum on the unpaid principal balance of the note. At
June 30, 2011, the outstanding balance of the loan was $204,531.
Rancho Buena Vista Housing (Chelsea Investment Corporation)
In 2000, the Agency loaned $1,000,000 to CIC Eastlake, L.P. for the development and operation of Rancho
Vista Housing project, a multifamily affordable housing project. The loan will be secured by promissory
notes and deeds. of trust. The outstanding principal and interest amount of the loan will be repaid over
fifty-five (55) years and accrues interest at the simple interest rate of three (3%) percent per annum.
Payment of principal and interest, or portions thereof, on the loan are made on an annual basis, out of a
fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2011, the outstanding
balance of the loan was $1,000,000 and interest of $192,658 has been deferred.
1-~~7
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
3. LOANS RECEIVABLE, Continued
Mobile Home Assistance Pro rg ams
The Agency entered into agreements with eligible residents of the Orange Tree Mobile Home Park,
whereby the Agency loaned $250,030 as permanent financing assistance to residents for the purpose of
purchasing certain mobile home property. The loans are secured by deeds of trust on the property and
mature in 2017 or when the property is sold. Contingent interest will be charged based on calculations
specified in the agreement. At June 30, 2011, the outstanding balance of the loan was $55,952.
St Regis Park (Chelsea Investment C~oration/Sunbow Seroices Co., LLC)
In 2000, the Agency entered into a loan agreement with Chelsea Investment Corporation for the acquisition
and rehabilitation of the 119-unit Pear Tree Apartments at 1025 Broadway. All units are affordable to low
income households. The loan is secured by a deed of trust and accrues 6% interest for 52 years. Payment of
principal and interest is made on an annual basis out of a fund equal to 90% of the residual receipts.. At
June 30, 2011, the outstanding balance of the loan was $1;387,152 and interest of $917,415 has been deferred.
Main Plaza (Alpha III Development Inc.)
In 2003, the Agency entered into a loan agreement with Main Plaza, LP (Borrower) to assist the borrower in
acquiring and improving certain real property for occupation by very low, lower and low and moderate
income households. The total loan amount is $1,500,000 and bears an interest rate of 3% per annum. The
loan is due and payable on the date that is 55 years from the date of the Agency's issuance of the Certificate
of Completion, which is in 2061. At June 30, 2011, the outstanding balance of the loan was $1,500,000 and
interest of $292,479 has been deferred.
Los Vecinos (Wakeland Housing and Development CorooraHon)
In 2008, the Agency entered into a loan agreement with Wakeland Housing and Development Corporation
to assist the borrower in constructing 41 affordable multi-family apartment units for occupancy by
extremely low, very low and lower income households. The loan was funded by the Agency's Low and
Moderate Income Housing Special Revenue Fund. The loan bears an interest rate of 5% per annum.
Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the residual
receipts for years 1-30, 75% of the residual receipts for years 31-54, until 55 years from the date the
improvements are placed in service, at which time all principal and unpaid interest will be due and
payable. The improvements were placed in service on February 7, 2008. At June 30, 2011, the outstanding
balance of the loan was $5,680,000 and interest of $953,937 has been deferred.
~-~~$
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
4. INTERFUND TRANSACTIONS
A. Advances To and Advances From Other Funds
As of June 30, 2011, Interfund balances were as follows:
Advances to other funds
Low & Mod Income Housing Special Revenue
Bayfrount/Town Centre I Capital Projects
Total
B. Transfers In and Out
As of June 30, 2011, transfers were as follows:
Transfers Out
Bayfront/Town Centre I Debt Service
Town Centre II Otay Valley Southwest Merged
Projects Debt Service
Bayfront/Town Centre I Capita] Projects
Town Centre lI Otay Valley Southwest Merged
Projects Capita] Projects
Total
Advances from other funds
Town Centre II
Otay Valley
Bayfront/ Southwest
Town Centre I Merged Projects
Debt Service .Debt Service Total
$ 1,625,163 $ 3,421,633 $ 5,046,796
47,987 4,654,043 4,702,030
$ 1,673,150 $ 8,075,676 $ 9,748,826
Transfers In
Town Centre II Town Centre II
Otay Valley Otay Valley
Bayfront/ Southwest Bayfront/ Southwest
Town Centre I Merged Projects Town Centre I Merged
Debt Service Debt Service Capital Projects Capital Projects Total
$ - $ - $ 279,256 $ - $ 279,256
2,553,046
577,357 577,357
- 2,553,046
- 13,164,419 - 2,442,943 15,607,362
$ 2,553,046 $ 13,164,419 $ 279,256 $ 3,020,300 $ 19,017,021
5. DUE FROM THE CITY OF CHULA VISTA
At June 30, 2011, the Agency had amounts due from the City of Chula Vista of $2,202,044. This amount
represents a one day loan which was made to cover cash overdraws from reimbursements not received
as of June 30, 2011.
1-~~9
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
6. CAPITAL ASSETS
A. Government-Wide Financial Statements
Changes in capital assets during the year ended June 30, 2011, were as follows:
Balance
July 1, 2010 Additions
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and hnprovements
Machinery and equipment
Subtotal
Less accumulated depreciation
Total capital assets, being depreciated
Total capital assets, net
Deletions
Balance
June 30, 2011
$ 9,790,977 $ - $ (166,107) $ 9,624,870
9,790,977 - (166,107) 9,624,870
2,386,218 - 2,386,218
12,000 - 12,000
2,398,218 - - 2,398,218
(1,027,395) (47,724) (1,075,119)
1,370,823 (47,724) - 1,323,099
$ 11,161,800 $ (47,724) $ (166,107) $ 10,947,969
Depreciation expense of the Agency for the year ended June 30, 2011, was $47,724 and was charged
entirely to the general government function of the Agency.
7. LONG-TERM DEBT
Changes in long-term debt during the year ended June 30, 2011, were as follows:
ERAF Loans:
2005
2006
Advances from the City of Chula Vista
Tax Allocation Bonds:
2006 Senior TAB Series A
2006 Subordinate TAB Series B
2008 TAB Refunding
Less: bond discounts
Total
Classification
Balance Balance Due within Due in More
July 1, 2010 Additions Deletions June 30, 2011 One Year Than One Year
$ 430,000 $ - $ (80,000) $ 350,000 $ 80,000 $ 270,000
625,000 - (90,000) 535,000 95,000 440,000
24,302,454 435,368 (12,130,000) 12,607,822 - 12,607,822
12,100,000 - (500,000) 11,600,000 520,000 11,080,000
11,200,000 - (440,000) 10,760,000 460,000 10,300,000
21,625,000 - - 21,625,000 - 21,625,000
(947,317) - 44,774 (902,543) - (902,543)
$ 69,335,137 $ 435,368 $ (13,195,226) $ 56,575,279 $ 1,155,000 $ 55,420,279
-~J~
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
7. LONG-TERM DEBT, Continued
ERAF Loans
ERAF Loan - 2005
In May 2005, the Agency entered into a loan agreement with the California Statewide Communities
Development Authority in the amount of $765,000 to finance their 2005 share of ERAF payments to the
County Auditor. Interest is payable semi-annually on February land August 1 at interest rates ranging
from 3.87% to 5.01%.
The annual debt service requirements for the ERAF Loan - 2005 is as follows:
Year Ending
June 30. Principal Interest Total
2012 $ 80,000 $ 18,354. $ 98,354
2013 85,000 14,526 99,526
2014 90,000 10,356 100,356
2015 95,000 5,880 100,880
Total $ 350,000 $ 49,116 $ 399,116
ERAF Loan - 2006
In May 2006, the Agency entered into a loan agreement with the California Statewide Communities
Development Authority in the amount of $930,000 to finance their 2006 share of ERAF payments to the
County Auditor. Interest is payable semi-annually on February 1 and August 1 at interest rates ranging
from 5.28% to 5.67%.
The annual debt service requirements for the ERAF Loan - 2006 is as follows:
Yeax Ending
June 30.
2012
2013
2014
2015
2016
Total
Principal Interest Total
$ 95,000 $ 31,052 $ 126,052
100,000 25,784 .125,784
105,000 20,188 125,188
115,000 14,282 129,282
120,000 7,792 127,792
$ 535,000 $ 99,098 $ 634,098
Advances from the City of Chula Vista
At June 30, 2011, the outstanding balance of the Advances from the City of Chula Vista was $12,607,822.
The proceeds of the advances were to fund projects and debt service payments. There are no set repayment
terms in relation to these advances. Payments will be made as tax increment revenues are available for the
repayment of the loans. Interest is calculated based on the LAIF average annual yield at the time the
advance is made.
1-~1
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
7. LONG-TERM DEBT, Continued
Tax Allocation Bonds
2006 Senior Tax Allocation Re nding Bonds, Series A
In July 2006, the Agency issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount of
$13,435,000 to refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994
Senior Tax Allocation Refunding Bonds, Series A, and to satisfy the reserve requirement for the Bonds and
provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of
property, demolition, relocation, public improvements and funding the Low and Mod Income Housing
Project. The bonds consist of serial bonds which mature in 2028. Interest is payable semiannually on March
1 and September 1 at interest rates ranging from 4.00% to 4.60%. The bonds are subject to optional
redemption on any interest payment date on or after September 1, 2012, at various redemption prices. The
bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the
indenture. The balance outstanding at June 30, 2011 was $11,600,000.
The annual debt service requirements for the 2006 Senior Tax Allocation Refunding Bonds, Series A
outstanding at June 30, 2011 were as follows:
Yeaz Ending
June 30. Principal Interest Total
2012 $ 520,000 $ 497,545 $ 1,017,545
2013 540,000 474,995 1,014,995
2014 565,000 450,133 ~- 1,015,133
2015 590,000 424,145 1,014,145
2016 615,000 398,570 1,013,570
2017-2021 3,475,000 1,581,001 5,056,001
2022-2026 4,290,000 734,465 5,024,465
2027-2028 1,005,000 46,805 1,051,805
Total $ 11,600,000 $ 4,607,659 $ 16,207,659
2006 Subordinate Tax Allocation Re nding Bonds, Series B
In July 2006, the Agency issued $12,325,000 2006 Subordinate Tax Allocation Refunding Bonds, Series B to
refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax
Allocation Refunding Bonds, Series C and D, and to satisfy the reserve requirement for the Bonds and
provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of
property, demolition, relocation, public improvements and funding the Low and Mod Income Housing
Project. The bonds consist of $7,995,000 serial bonds which mature from 2007 to 2021 in amounts ranging
from $290,000 to $735,000 and term bonds of $4,330,000 which mature in 2028. Interest is payable
semiannually on Apri11 and October 1 at interest rates ranging from 4.00% to 6.00%. The bonds are subject
to optional redemption on any interest payment date on or after October 1, 2012, at various redemption
prices. The bonds are payable solely from certain tax increment revenues of the Agency and other funds
held under the indenture. The balance outstanding at June 30, 2011 was $10,760,000.
1-~32
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the yeaz ended June 30, 2011
7. LONG-TERM DEBT, Continued
Tax Allocation Bonds, Continued
2006 Subordinate Tax Allocation Bonds, Series B
The annual debt service requirements for the 2006 Subordinate Tax Allocation Refunding Bonds, Series B
outstanding at June 30, 2011 were as follows:
Year Ending
June 30.
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2028
Total
2008 Tax Allocation Refunding Bonds
Principal Interest Total
$ 460,000 $ 531,384 $ 991,384
480,000 510,234 990,234
500,000 487,934 987,934
525,000 464,096 989,096
550,000 438,559 988,559
3,180,000 1,743,446 4,923,446
4,090,000 814,603 4,904,603
975,000 51,844 1,026,844
$ 10,760,000 $ 5,042,100 $ 15,802,100
In July 2008, the Agency issued the 2008 Tax Allocation Refunding Bonds in the amount of $21,625,000 to
refinance the Agency's outstanding Merged Redevelopment Project 2000 Tax Allocation Bonds, to satisfy
the reserve requirement for the Bonds, to provide for the costs of issuing the Bonds, and to provide funds to
finance or refinance redevelopment activities. The bonds consist of $11,570,000 serial bonds which mature
from 2014 to 2028 in amounts ranging from $575,000 to $1,020,000 and term bonds of $3,345,000 and
$6,710,000 which mature in 2031 and 2036 respectively. Interest is payable semiamlually on March 1 and
September 1 at interest rates ranging from 4.00% to 4.94%. The bonds are subject to optional redemption on
any interest payment date on or after September 1, 2019, at various redemption prices. The bonds are
payable solely from certain tax increment revenues of the Agency and other funds held under the
indenture. The balance outstanding at June 30, 2011 was $21,625,000.
1-~33
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
7. LONG-TERM DEBT, Continued
Tax Allocation Bonds, Continued
2008 Tax Allocation Re nding Bonds, Continued
The annual debt service requirements for the 2008 Tax Allocation Refunding Bonds outstanding at
June 30, 2011 were as follows:
Yeaz Ending
June 30.
Principal
Interest
Total
2012 $ - $ 963,636 $ 963,636
2013 - 963,636 963,636
2014 - 963,636 963,636
2015 575,000 952,136 1,527,136
2016 600,000 928,636 1,528,636
2017-2021 3,360,000 4,257,781 7,617,781
2022-2026 4,110,000 3,491,690 7,601,690
2027-2031 5,105,000 2,471,525 7,576,525
2032-2036 6,405,000 1,137,016 7,542,016
2037 1,470,000 34,913 1,504,913
Total $ 21,625,000 $ 16,164,605 $ 37,789,605
Pledged Revenues
The Agency has pledged tax revenues to the repayment of the Agency's debts through the final maturity of
the Bonds, or early retirement of the Bonds, whichever comes first.
Tax revenues consist of tax increment revenues allocated to the Agenc~s project areas pursuant to Section
33670 of the Redevelopment Law excluding that portion of such tax increment revenues required to be paid
under Tax-Sharing Agreements unless the payment of such amounts has been subordinated to payment of
debt services on the Bonds. Tax increment earned in 2010-2011 was $13,822,938 and total debt service of all
Tax Allocation Bonds paid was $3,650,802. The Bonds required 26% of net revenues. In future years,
annual principal and interest payments on the Tax Allocation Bonds are expected to require approximately
30% of tax increment revenues.
1-~84
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
8. DEFERRED REVENUES
A. Fund Financial Statements
Deferred revenue as of June 30, 2011 was reported as follows:
Loan receivable:
South Bay Couzntunity Services
Heritage (South Bay commuitity Villas L.P.)
Chula Vista Rehabilitafion CHIP Loans
Rancho Buena Vista Housing (Chelsea Investment Corporation)
St. Regis Park (Chelsea Investment Corporation)
Main Plaza (Alpha III Development Inc.)
Los Vecinos (Wakeland Housing and Development Corporation)
Advances to other funds
Total
Principal Interest Total
$ 887,994 $ 306,811 $ 1,194,805
4,400,000 1,261,710 5,661,710
153,076 153,076
1,000,000 192,655 1,192,658
1,387,152 917,415 2,304,567
1,500,000 292,479 1,792,479
5,680,000 953,937 6,633,937
246,094 1,518,370 1,764,464
$ 15,101,240 $ 5,596,456 $ 20,697,696
9. COMMTTMENTS AND CONTINGENCIES
A. Litigation
In addition, the Agency is a defendant in certain legal actions arising in the normal course of operations.
In the opinion of management, any liabilities resulting from actions, except for those already disclosed,
will not have a material adverse effect on the Agency's financial position.
B. Commitment to the City's General Fund
The City's General Fund has spent a cumulative amount of $913,429 on unreimbursed City staff time
rendered on behalf of the Agency. It is anticipated, however, not assured, that the Agency will repay
this amount from tax increment revenues. Currently, tax increment revenues are used to pay for related
debt service expenditures and possible future debt issuance. As a result, the Agency is uncertain if the
amount will be repaid to the City's General Fund. Accordingly, this contingent payable has not been
reported ul accompanying basic financial statements.
C. State Budget Crisis
In 2009, the State enacted legislation authorizing atwo-year takeaway of Redevelopment Agency funds.
The payment was $4,160,694 in 2009-2010 az1d another $856,613 for 2010-2011. These amounts were
assumed in the 2009-2011 Budgets. This action was litigated by the California Redevelopment
Association and other parties. This lawsuit challenges the constitutionality of ABX 4-26 and seeks to
prevent the State from taking redevelopment funds for non-development purposes. As of the date of
this report, the courts decision is currently being appealed and the results have not yet been
determined.
1-2~~5
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
10. RISK MANAGEMENT AND SELF INSURANCE PROGRAMS
The Agency participates in aself-insurance program for workers' compensation and general liability
coverage, which is administered by the City. The Agency pays an amount to the City representing an
estimate of amounts to be paid for reported claims incurred and unreported claims based upon past
experience, modified for current trends and information.
While the ultimate losses incurred through June 30, 2011, are dependent upon future developments, the
Agency's management believes that amounts paid are sufficient to cover such losses. Premiums paid by the
Agency for the year ended June 30, 2011, were $47,275.
Citywide information concerning risks, insurance policy limits, deductible and designation of general fund
balance for the year ended June 30, 2011, may be found in the notes of the City's basic financial statements.
11. DEFICIT FUND BALANCE
At June 30, 2011, the following funds had fund balance deficits:
Fund Fund Type Deficit
Town Centre II Dray Valley Southwest
Merged Projects Debt Service Major Governmental Fund $ (6,531,316)
Debt Service Fund -The Debt Service Fund for the Merged Project Area had an accumulated deficit of
$6,531,316, which resulted from insufficient revenues and transfers to the City for repayments of other
advances. The City expects the fund to be repaid via property tax increment.
12. UNRESTRICTED NET ASSET (DEFICIT)
The unrestricted net deficit of $43,086,896 is expected to be recovered from future property tax increment
revenues. The Agency, under State Law, is required to maintain certain indebtedness in order to be eligible
to receive tax increment.
1-~36
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
13. CLASSIFICATION OF FUND BALANCE
Nonspendable:
Advances to other funds
SERAF Loan
Mobile Home Assistance Program Loans
Civic Center Barrio Housing Improvement Program Loan
Community Housbrg Improvement Program Loazis
Total nonspendable
I
N
W
J
Restricted:
Key Marston Associates Inc. Consulthig for Annual Review of
Residual Receipts
Low and Moderate Income Housing
Debt Service
Capital Projects
Total restricted
Assigned:
Bayfront Groundwater Project
Bayfront/Town Center I Plan Amendments
Storefront Renovatimr Project
Auto Park Sign Project
Southwest Residential Revitalization Pilot Program
Total assigned
Unassigned
Total fund balances
Town Centre II Town Centre iI
Otay Valley Otay Valley
Low & Mod Bayfront/ Southwest Bayfront/ Southwest
Income Housing Town Centre [ Merged Projects Town Centre I Merged
Special Revenue Debt Service Debt Service Capital Projects', Capital Projects Total
$ _ $ _ $ - $ 3,213,7.50 $ - $ 3,213,150
5,017,307 - - - - 5,017,307
55,952 - - - - 55,952
204,531 - - - - 204,531
1,229,832 - - - - 1,229,832
6,507,622 - - 3,213,150 - 9,720,772
24,334 - - - - 24,334
5,551,600 - - - - 5,551,600
- 2,034,935 1,544,360 - - 3,579,295
_ - - 4,707,405 4,707,405
5,575,934 2,034,935 1,544,360 - 4,707,405 13,862,634
_ _ - 7,205 - 7,205
_ _ - 75,237 - '75,237
_ - - 113,620 25,500 139,120
_ _ _ - 1,043 1,043
_ - 30,000 30,000
_ - - 196,062 56,543 252,605
- (1,673,150) (8,075,676) (1,491,864) - (11,240,690)
$ 12,083,556 $ 361,785 $ (6,531,316) $ 1,917,345 $ 4,763,948 $ 12,595,321
40
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the yeaz ended June 30, 2011
14. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES
On June 29, 2011, the Governor of the State of California signed Assembly Bills Xl 26 and 27 as part of the
State's budget package. Assembly Bill Xl 26 requires each California redevelopment agency to suspend
nearly all activities except to implement existing contracts, meet already-incurred obligations, preserve its
assets and prepare for the impending dissolution of the agency. Assembly Bill X1 27 provides a means for
redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative
Redevelopment Program. Under this program, each city would adopt an ordinance agreeing to make
certain payments to the County Auditor Conholler in fiscal year 2011-12 and annual payments each fiscal
year thereafter. Assembly Bill Xl 26 indicates that the city "may use any available funds not otherwise
obligated for other uses' to make this payment. The City of Chula Vista intends to use available monies of
its redevelopment agency for this purpose and the City and Agency have approved a reimbursement
agreement to accomplish that objective. The amounts to be paid after fiscal yeaz• 2012-13 have yet to be
determined by the state legislature.
Assembly Bill Xl 26 directs the State Controller of the State of California to review the propriety of any
transfers of assets between redevelopment agencies and other public bodies that occurred after January 1,
201E If the public body that received such transfers is not contractually committed to a third party for the
expenditure or encumbrance of those assets, the State Controller is required to order the available assets to
be transferred to the public body designated as the successor agency by Assembly Bill Xl 26.
In the event that Assembly Bill Xl 26 is upheld, the interagency receivable recognized by funds of the City
that had previously loaned or advanced funds to the redevelopment agency may become uncollectible
resulting in a loss recognized by such funds. The City might additionally be impacted if reimbursements
previously paid by the redevelopment agency to the City for shared administrative services are reduced or
eliminated.
The League of California Cities and the California Redevelopment Association (the "CRA") filed a lawsuit
on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme
Court to overturn Assembly Bills Xl 26 and 27 on the grounds that these bills violate the California
Constitution. On August 11, 2011, the California Supreme Court issued a stay of all of Assembly Bill Xl 27
and most of Assembly Bill X1 26. The California Supreme Court stated in its order that "the briefing
schedule is designed to facilitate oral argument as early as possible in 2011, and a decision before January
15, 2012." A second order issued by the California Supreme Court on August 17, 2011 indicated that certain
provisions of Assembly Bills Xl 26 and 27 were still in effect and not affected by its previous stay, including
requirements to file an appeal of the determination of the community remittance payment by August 15,
the requirement to adopt an Enforceable Obligations Payment Schedule ("EOPS") by August 29, 2011, and
the requirement to prepare a preliminary draft of the initial Recognized Obligation Payment Schedule
("ROPS") by September 30, 2011.
Because the stay provided by Assembly Bill Xl 26 only affects enforcement, each agency must adopt an
Enforceable Obligation Payment Schedule and draft Recognized Obligation Payment Schedule prior to
September 30, as required by the statute. Enforceable obligations include bonds, loans and payments
required by the federal or State government; legally enforceable payments required in connection with
agency employees such as pension payments and unemployment payments, judgments or settlements;
legally binding and enforceable agreements or contracts; and contracts or agreements necessary for the
continued administration or operation of the agency that are permitted for purposes set forth in AB1X 26.
i-~~a
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2011
14. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES, Continued
On August 9, 2011, City Ordinance No. 3202 was adopted, indicating that the City will comply with the
Voluntary Alternative Redevelopment Program in order to permit the continued existence and operation of
the agency, in the event Assembly Bills Xl 26 and/or 27 are upheld as constitutional. The initial payment
by the City is estimated to be $4,084,827 for the year ended June 30, 2012. Thereafter, an estimated
$1,173,156 will be due annually. The amounts to be paid after fiscal year 2012-13 have yet to be determined
by the State Legislature. The semi-annual payments will be due on January 15 and May 15 of each year and
would increase or decrease with changes in tax increment. Additionally, an increased amount would be due
to schools if any "new debt" is incurred. Assembly Bill Xl 27 allows cone-year reprieve on the agency's
obligation to contribute 20% of tax increment to the low-and-moderate-income housing fund so as to permit
the Agency to assemble sufficient funds to make its initial payments. Failure to make these payments
would require agencies to be terminated under the provisions of ABXl 26.
Management believes that the Agency will have sufficient funds to pay its obligations as they become due
during the fiscal year ending June 30, 2012. The nature and extent of the operation of redevelopment
agencies in the State of California beyond that time frame are dependent upon the outcome of litigation
surrounding the actions of the state. In the event that Assembly Bills Xl 26 and/or 27 are specifically found
by the courts to be unconstitutional, there is a possibility that future legislative acts may create new
challenges to the ability of redevelopment agencies in the State of California to continue in view of the
California State Legislature's stated intent to eliminate California redevelopment agencies and to reduce
their funding.
15. RELATED PARTY TRANSACTIONS
Due to the significance of the Agency's operational and financial relationship with the City, related party
transactions consisted of the following for the year ended June 30, 2011:
A. Purchase and Sale Agreement with the City
On July 1, 2010, the Agency sold two parcels of lands .(14.41 acres) to the City located in the lower
Sweetwater Valley at the appraised value of $9,630,000. The parcels were originally purchased by the
Agency in June 1986 for $166,107.
B. Accounting and Financial Reporting
Government-Wide Financial Statements
At June 30, 2011, the Agency recorded the gain on sale of property of $ 9,463,893 and a decrease in capital
assets of $166,107.
Fund Financial Statements
The Town Centre II Otay Valley Southwest Merged Capital Projects fund recorded the cash receipts as well
as a gain on sale of property of $ 9,463,893 in other financing sources.
1-~~39
REQUIRED SUPPLEMENTARY
INFORMATION
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Redevelopment Agency of the City of Chula Vista
Required Supplementary Information
For the year ended June 30, 2011
1. BUDGETARY INFORMATION
An annual budget is adopted by the Board of Directors prior to the first day of the fiscal year. The budget
process includes submittal of each department's budget request for the next fiscal year, a detailed review of
each department's proposed budget by the Executive Director, and a final Executive Director recommended
budget that is transmitted to the Board of Directors for its review before the required date of adoption.
Once transmitted to the Board of Directors, the proposed budget is made available for public inspection. A
public hearing is held to give the public the opportunity to comment upon the proposed budget. Notice of
such public hearing is given in a newspaper of general circulation.
The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of
budgetary control is at the department level. Any budget modification, which would result in an
appropriation increase, requires Board of Directors approval. The Executive Director and Finance Director
are jointly authorized to transfer appropriations within a departmental budget. Any appropriation
transfers between departments require Board of Directors approval.
Reported budget figures are as originally adopted or subsequently amended plus prior year continuing
appropriations. Such budget amendments during the year, including those related to supplemental
appropriations, did not cause these reported budget amounts to be significantly different than the originally
adopted budget amounts. All appropriations which are not obligated, encumbered or expended at the end
of the fiscal year lapse become a part of the unreserved fund balance which may be appropriated for the
next fiscal year.
An annual budget for the year ended June 30, 2011, was adopted and approved by the Board of Directors
for the special revenue and debt service funds. These budgets are prepared on the modified accrual basis of
accounting except that encumbrances outstanding at year-end are considered as expenditures. The budgets
of the capital projects funds are primarily long-term budgets, which emphasize major programs and capital
outlay plans extending over a number of years. Because of the long-term nature of these projects, annual
budget comparisons are not considered meaningful, and accordingly, no budgetary information for capital
projects funds is included in the accompanying basic financial statements.
1-2~1
Redevelopment Agency of the City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2011
1. BUDGETARY INFORMATION, Continued
BudQetarU Comparison Schedule Low-Moderate Income Housing Special Revenue Fund
Budget Actual Variance with
Origaial Final Amounts Fu1a1 Budget
Revenues:
900,763 $
$ 2 2,900,763 $ 2,764,588 $ (136,175)
Taxes ,
Use of money and property 17,885 17,885 89,340 71,455
- - 50 50
Other
Total revenues 2,918,645 2,918,648 2,853,978 (64,670)
Expenditures:
Current:
General government 4,672,456 4,679,704 557,096 4,122,608
Total expenditures 4,672,456 4,679,704 557,096 4,122,608
REVENUES OVER
(UNDER) EXPENDITURES (1,753,808) (1,761,056) 2,296,882 4,057,935
Other Financing Sources (Uses)
Transfers to City of Chula Vista
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
(144,500) (9,344,500) (4,394,500) 4,950,000
(144,500) (9,344,500) (4,394,500) 4,950,000
$ (1,898,308) $ (11,105,556)
(2,097,618) $ 9,007,938
14,181,174
$ 12,083,556
~-~~2
This page intenrionaQy left blank
1-~43
SUPPLEMENTARY INFORMATION
1-x'44
Redevelopment Agency of the City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Bayfront/Town Centre I Debt Service Fund
For the year ended June 30, 2011
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
Generalgovernntent
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Proceeds from advances from City of Chula Vista
Repayment of advances from City of Chula Vista
Traztsfers hi
Transfers out
Total other finazsing sources (uses)
Net change in fund balance
Fund balance:
Begiruting of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ - $ 97,802 $ 97,802
- 24 24
- 97,826 97,826
10,000 8,000 2,000
1,037,270 1,037,270 -
1,347,922 1,273,428 74,494
2,395,192 2,318,698 76,494
(2,395,192) (2,220,872) 174,320
157,695 157,695
- (500,000) (500,000)
2,650,204 2,553,046 (97,158)
(748,227) (279,256) 468,971
1,901,977 1,931,485 29,508
$ (493,215) (289,387) $ 203,828
651,172
$ 361,785
48
1-245
Redevelopment Agency of the City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Town Centre II Otay Valley Southwest Merged Projects Debt Service Fund
For the year ended June 30, 2011
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Proceeds from advazses from City of Chula Vista
Repayment of advances from City of Chula Vista
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ - $ (1,128) $ (1,128)
- 19 19
- (1,109) (1,109)
5,000 2,495 2,505
72,730 72,730 -
1,891,856 1,498,715 393,141
1,969,586 1,573,940 395,646
(1,969,586) (1,575,049) 394,537
- 277,673 277,673
- (11,630,000) (11,630,000)
13,164,546 13,164,419 (127)
(577,357) (577,357) -
12,587,189 1,234,735 (11,352,454)
$ 10,617,603 (340,314) $ (10,957,917)
(6,191,002)
$ (6,531,316)
1-946
Redevelopment Agency of the City of Chula Vista
Excess Surplus Computation
Low & Mod Income Housing Special Revenue Fund
July 1, 2010
Opening Fund Balance -July 1, 2010
Less Unavailable Amounts:
Land held for resale $
Long-term receivable (5,700,817)
Encumbrances (Section 33334.12 (g)(2)) (4,007,248)
Available Low and Moderate Income Housing Funds
Limitation (geater of $1,000,000 or four yeazs set-aside)
Set-Aside for current and last three years:
Prior Year 1 - FY 2010-11 2,776,925
Prior Year 2 - FY 2009-10 2,756,337
Prior Year 3 - FY 2008-09 2,758,666
Prior Year 4 - FY 2007-08 2,294,709
$ 10,586,640
Base limitarion $ 1,000,000
Greater amount
Computed Excess/Surplus
$ 14,181,174
(9,708,065)
4,473,109
$ 10,586,640
None
1-~47
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum r!P
CertifzedPublie Aeeouretan#
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
We have audited the basic financial statements of the Redevelopment Agency of the City of Chula Vista
(the "Agency°), a component unit of the City of Chula Vista, California (the "City"), as of and for the year
ended June 30, 2011, and have issued our report thereon dated December 21, 2011. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial RePOrtinQ
In plazming and performing our audit, we considered the Agency's internal control over financial reporting
in order to determine our auditing procedures for the purpose of expressing our opinion on the financial
statements but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Agency's intemal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing thew assigned functions, to prevent or detect misstatements
on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such
that there is a reasonable possibility that a material misstatement of the Agency's finazncial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in the Agency's internal
control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses.
We did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objecfive of our audit, and accordingly, we do not express such an opinion. The
result of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
nrnw.c-Icpa.mm
1-248
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
Page Two
This report is intended for the information and use of the management, the Board of Directors of the
Agency, others within the entity, and the California State Controller's Office, Division of Accounting and
Reporting and is not intended to be and should not be used by anyone other than these specified parties.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 21, 2011
1-~'4 9
C&L
Caporicci & Larson, Inc.
ASubsidiary of Marcum r/P
Certified PublicACCODUtants
INDEPENDENT AUDTTORS' REPORT ON COMPLIANCE
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
Compliance
We have audited the Redevelopment Agency of the City of Chula Vista's (the "Agency") compliance with
the California Health and Safety Code as required by Section 33080.1 for the year ended. June 30, 2011.
Compliance with the requirement refereed to above is the responsibility of the Agency's management. Our
responsibility is to express an opinion on the Agency's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and Guidelines for Compliance Audits of
California Redevelopment Agencies, June 2011, issued by the State Controller and as interpreted in the Auditing
Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, August 2011, issued by
the Governmental Accounting and Auditing Committee of the California Society of Certified Public
Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether noncompliance with the compliance requirements referred to above that could have a
material effect on the Agency has occurred. An audit includes examining, on a test basis, evidence about
the Agency's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the Agency's compliance with those requirements.
In our opinion, the Agency complied, in all material respects, with the compliance requirements referred to
above that are applicable for the yeaz ended June 30, 2011.
Internal Control Over Compliance
Management of the Agency is responsible for establishing and maintaining effective internal control over
compliance with the compliance requirements referred to above. In planning and performing our audit, we
considered the Agency's internal control over compliazue to determine the auditing procedures for the
purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Agency's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, noncompliance on a timely basis. A material weakness itt internal control over compliance is a
deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a compliance requirement will not be prevented, or detected
and corrected, on a timely basis.
wcw o-lcpxsom
1-250
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
Page Two
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal confrol that might be
deficiencies, significant deficiencies, or material weaknesses in internal control over compliance.
We did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of management, the Board of Directors of the
Agency, others within the entity, and the State Controller's Office, Division of Accounting and Reporting
and is not intended to be and should not be used by anyone other than these specified parties.
Caporicci & Larson, Inc
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 21, 2011
1-~1
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AUDIT
of the
City of Chula Vista
For The Year Ended June 30, 2011
Presentation to the City Council
January 12, 2012
Presented by:
Kenneth Pun, CPA
CAL
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1
Financial Statements
and
Reporting Responsibi lity
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1
Objectives of the Audit
Express an opinion as to whether the
financial statements are fairly
presented, in all material respects, in
conformity with generally accepted
accounting principles (GAAP) in the
United States.
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Objectives of the Audit
Review and evaluate internal control
related to the financial statements and
related to compliance with laws,
regulations, and the provisions of
- contracts or grant agreements.
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Management Responsibilities
^ Responsible for its financial statements.
^ Establishing and maintaining internal control for
financial statements and for compliance with the
provisions of applicable laws, regulations, contracts,
agreements, and grants.
^ Making all financial records and related information
available to audit.
. Designing and implementing programs and controls to
prevent and detect fraud, and communicating all known
or suspected fraud, if any.
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2011
Audit Results
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Audit Opinion
...
Unqualified Opinion issued
• Financial statements are fairly presented in all
material respects
• Significant accounting policies have been
consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the
financial statements
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Other Results of the Audit
• No disagreements with management
• No material errors or irregularities
discovered
•No indications of fraudulent or
inappropriate activities
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2011 City Net Assets
ACTIVITIES
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Governmental Business-Type
$ 634,409,385 $ 146,550,585
47,168,636 -
72,730,796 80,214,208
Total $ 754,308,817 $ 226,764,793
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Costs of Services to Tax Revenues
Governmental Activities
Expenses $ 217,022,711
Less Program Revenues (112,479,046)
Net Cost of Services for Governmental activities 104,543,665
Tax Revenues 83,624,855
Cost of Services to Tax Revenues 125%
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General Fund Change in Total Fund
Balance
Beginning fund balance $ 33,181,800
Results of operations 2,558,599
Ending fund balance $ 35,740,399
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General Fund Unassigned Fund
Balance to Annual Expenditures
Unassigned Fund Balance
Annual Expenditures
Unassigned Fund Balance
to Annual Expenditures
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$ 11,876,992
127,842,253
9%
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General Fund Economic Contingency
Committed Fund Balance to Annual
Expenditures
Contingency Commitment $ 3,044,286
Annual Expenditures 127,842,253
Contingency as percentage
of Annual Expenditures 2%
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Thank you for Allowing C&L to Provide
Professional Services
to the
City of Chula Vista
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