HomeMy WebLinkAbout2013/02/05 Item 09 Financial ReportComprehensive Annual Financial Report For The Fiscal Year Ended June 30, 2012 Compiled under the direction of Maria Kachadoorian Director of Finance/Treasurer State of California Mayor
Cheryl Cox City Council Rudy Ramirez Patricia Aguilar Pamela Bensoussan Steve Castaneda City Manager Jim Sandoval ??
City of Chula Vista Comprehensive Annual Financial Report For the year ended June 30, 2012 Table of Contents i Page INTRODUCTORY SECTION Table of Contents ............................................
......................................................................................................... i Letter of Transmittal .....................................................................
.......................................................................... v Principal Officials ......................................................................................................
.............................................. ix Organization Chart...................................................................................................................................
............... x Certificate of Achievement for Excellence in Financial Reporting -GFOA ...................................................... xi 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 ...........................................
................................................................................... 24 Statement of Activities and Changes in Net Assets...............................................................
................. 26 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet .................................................................................................
....................................... 32 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets ......................................................
................. 35 Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 36 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 .......................................................................
38 Proprietary Fund Financial Statements: Statement of Net Assets ........................................................................................................................
40 Statement of Revenues, Expenses and Changes in Net Assets ....................................................... 41 Statement of Cash Flows .......................................................
............................................................... 42 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets .............................................................
........................................ 44 Statement of Changes in Fiduciary Net Assets .................................................................................. 45 Notes to
Basic Financial Statements ............................................................................................................... 47
City of Chula Vista Comprehensive Annual Financial Report For the year ended June 30, 2012 Table of Contents, Continued ii Page FINANCIAL SECTION, Continued: Required Supplementary Information:
Budgetary Information ...................................................................................................................................... 104 Budgetary Comparison
Schedules: General Fund ................................................................................................................................................ 105 Sundry Grants
Special Revenue Fund ....................................................................................................... 106 Low & Moderate Income Housing Successor Special Revenue
Fund .................................................. 107 Schedules of Funding Progress: PERS .......................................................................................................
...................................................... 108 Other Post Employment Benefits .............................................................................................................
. 108 Supplementary Information: Non-Major Governmental Funds: Combining Balance Sheet ................................................................................................................
........... 113 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................... 118 Statement of Revenues, Expenditures and Changes in Fund Balances
– Budget and Actual: City Debt Service Fund ......................................................................................................................... 123 Transportation
Grants Special Revenue Fund ................................................................................... 124 Parking Meter Special Revenue Fund ................................................
................................................ 125 Traffic Safety Special Revenue Fund ...................................................................................................
126 Town Centre I Special Revenue Fund ................................................................................................. 127 Open Space Districts Special Revenue Fund
..................................................................................... 128 Housing Programs Special Revenue Fund .......................................................................
................. 129 Traffic Signals Special Revenue Fund ................................................................................................. 130 Transportation Sales
Tax Special Revenue Fund .............................................................................. 131 Storm Drain Special Revenue Fund ..........................................................
......................................... 132 Housing Authority Special Revenue Fund ........................................................................................ 133 RDA
Special Revenue Fund ................................................................................................................. 134 Public Financing Authority Debt Service Fund
................................................................................. 135 1994 POB Debt Service Fund ......................................................................................
......................... 136 Notes Payable Debt Service Fund ....................................................................................................... 137 Lease Payable
Debt Service Fund ........................................................................................................ 138 Redevelopment Agency Debt Service Fund .................................
.................................................... 139 Non-Major Enterprise Funds: Combining Statement of Net Assets ................................................................................
......................... 142 Combining Statement of Activities and Changes in Net Assets ............................................................ 143 Combining Statement of Cash
Flows ........................................................................................................ 144
City of Chula Vista Comprehensive Annual Financial Report For the year ended June 30, 2012 Table of Contents, Continued iii Page FINANCIAL SECTION, Continued: Supplementary Information,
Continued: Internal Service Funds: Combining Statement of Net Assets .......................................................................................................... 146 Combining
Statement of Activities and Changes in Net Assets ............................................................ 147 Combining Statement of Cash Flows ..................................................
..................................................... 148 Fiduciary Funds: Statement of Changes in Assets and Liabilities..............................................................................
......... 150 STATISTICAL SECTION Index ...............................................................................................................................................................
........... 151 Financial Trends: Net Assets by Component – Last Nine Fiscal Years ...................................................................................... 152 Changes
in Net Assets – Last Nine Fiscal Years ............................................................................................. 153 Fund Balances of Governmental Funds – Last Nine
Fiscal Years ................................................................ 154 Changes in Fund Balance of Governmental Fund – Last Nine Fiscal Years ..............................................
155 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ..................... 156 Direct and Overlapping Property Tax Rates – Last
Ten Fiscal Year ............................................................ 157 Principal Property Taxpayers – Current and Nine Years Ago ............................................................
........ 158 Property Tax Levies and Collections – Last Ten Fiscal Years ....................................................................... 159 Debt Capacity: Ratios of Outstanding
Debt by Type – Last Ten Fiscal Years ....................................................................... 160 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ....................
.................................... 161 Direct and Overlapping Debt ............................................................................................................................
162 Legal Debt Margin – Last Ten Fiscal Years ..................................................................................................... 163 Pledged-Revenue Coverage – Last
Ten Fiscal Years ..................................................................................... 165 Demographic and Economic Information: Demographic and Economic Statistics –
Last Ten Calendar Years .............................................................. 166 Principal Employers – Current and Nine Years Ago ...........................................................
......................... 168 Operating Information: Full-Time and Part-Time City Employees by Function – Last Ten Fiscal Years ........................................ 169 Operating
Indicators by Function – Last Ten Fiscal Years ............................................................................ 170 Capital Assets Statistics by Function – Last Ten Fiscal
Years ....................................................................... 172 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 ........................................ 175
iv
December 27, 2012 Honorable Mayor, Councilmembers and Citizens of Chula Vista Chula Vista City Hall Chula Vista, CA 91910 The audited Comprehensive Annual Financial Report (CAFR) of
the City of Chula Vista for the fiscal year ended June 30, 2012 is hereby submitted to you. The City compiles and prepares the annual financial report to provide interested parties with
reliable information concerning the financial condition and results of operations for the City. The basic financial statements are audited by an independent certified public accounting
firm. The purpose of the audit is to ensure that the financial statements present fairly, in all material respects, the financial position and the results of operations of the City.
Responsibility for both the accuracy of the information and the completeness and fairness of the presentation, including all disclosures, rests with City management. The financial statements
have been prepared in accordance with generally accepted accounting principles. This means that the statements have been prepared using guidelines that would allow the user to make a
meaningful comparison to the financial statements of other similar entities. All disclosures necessary to enable the reader to gain an understanding of the City of Chula Vista's activities
have been included. Generally accepted accounting principles 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). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Chula
Vista’s MD&A can be found immediately following the report of the independent auditors. The City of Chula Vista is required to undergo an annual single audit in conformity with the provisions
of the Revised Single Audit Act of 1996 and the United States Office of Management and Budget's Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information
related to this single audit, including a schedule of expenditures of federal awards, along with the independent auditors’ reports on internal controls and compliance with applicable
laws, can be found in a separately issued single audit report.
vi The Comprehensive Annual Financial Report for the City of Chula Vista includes the activities of the primary government (City of Chula Vista) along with several "component units."
A component unit is a legally separate organization or entity for which the elected officials of the primary government are financially accountable. Component units, although they are
legally separate entities, are in substance part of the primary government's operations and therefore included for financial reporting purposes. The component units included within the
City of Vista's financial statements are the Redevelopment Agency of the City of Chula Vista, the Chula Vista Public Financing Authority, the Chula Vista Industrial Development Authority
and the Chula Vista Housing Authority. Profile of the Government The City of Chula Vista is located in San Diego County with its western border adjacent to San Diego Bay, 8 miles south
of Downtown San Diego and 7 miles north of the Mexican border. The City encompasses 50 square miles. 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 and sewer services. Local Economy and Prospects for the Future 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 249,392, 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. 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. Long-Term Financial Planning: The City periodically
updates a 5-Year General Fund Financial Forecast. The purpose of this plan is to analyze current revenue sources to determine if relevant assumptions need to be updated when projecting
potential revenue growth over time. Operational expenditures are also examined to estimate cost increases over time due to inflation, increased service demands, and other factors. The
goal of the 5-year financial forecast is to match the availability of revenues to service demands over time, and make adjustments to budgetary and financial plans accordingly.
vii During fiscal year 2012, the Finance Department updated the General Fund 5-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. Internal Control The City has developed and put into place systems of internal controls over various accounting
and transaction processing functions. Management of the City is responsible for establishing and maintaining the internal control structure. This structure is designed to ensure that
the assets of the City are protected from loss, theft, or misuse. These controls are also in place to ensure that adequate accounting information is compiled to allow for the preparation
of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that
these objectives are met. The idea of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of cost
and benefits requires estimates and judgments by management. Budgetary Controls The City currently adopts a single-year operating and capital budget. The provisions of these budgets
are directly posted into the City's general ledger accounting system to help ensure compliance with the appropriations made by the City Council. Activities of the general fund, special
revenue funds, debt service funds and capital project funds are adopted in the operating budget. Budgetary control (which is the policy that expenditures may not exceed appropriations)
is at the Department/fund level within each fund. 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. Amounts appropriated for each year in the operating budget lapse at the end of each fiscal year, unless carried forward through the encumbrance process. The City
Council also adopts amounts in the operating budget for the proprietary and internal service funds to provide a a level of fiscal control.
viii Independent Audit Each year the City has an audit performed by an independent certified public accounting firm. This year the audit was performed by the firm of Pun & McGeady, LLP.
The auditors also conducted a "single audit" designed to meet the requirements of the federal Revised Single Audit Act of 1996 and the related U.S. Office of Management and Budget's
Circular A-133. The auditor’s report on the basic financial statements can be found in the financial section of this report. The auditor’s report on internal controls and compliance
with applicable laws and regulations can be found in a separately issued single audit report. Awards The Government Finance Officers Association (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 year ended June 30, 2011. This was the 12th consecutive year that
the City has received this prestigious award. In order to be awarded a Certificate of Achievement, Achievement, the City published 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 only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are again submitting
it to GFOA to determine its eligibility for another certificate. Acknowledgments The preparation of this Comprehensive Annual Financial Report could not have been accomplished without
the efficient and dedicated services of the entire finance staff throughout the fiscal year. We would like to thank all of those individuals who assisted and contributed to the preparation
of this report. Credit must also be given to the Mayor and City Council, along with the City Manager, for their continued interest in planning and conducting the operations of the City
of Chula Vista in a responsible and progressive manner. Respectfully submitted, Maria Kachadoorian Director of Finance/Treasurer
ix City of Chula Vista List of City Officials June 30, 2012 City Council Cheryl Cox Mayor Steve Castaneda Deputy Mayor Pamela Bensoussan Councilmember Rudy Ramirez Councilmember Patricia
Aguilar Councilmember Administration James Sandoval City Manager Gary Halbert Scott Tulloch Assistant City Manager 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
Fire Chief Richard Hopkins Director of Public Works Maria Kachadoorian Director of Finance/Treasurer Betty Waznis Director of Library & Recreation Michael Meacham Director of Economic
Development
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6265 Greenwich Drive Suite 220 San Diego, California 92122 Phone: (858) 242-5100 Fax: (858) 242-5150 www.pm-llp.com INDEPENDENT AUDITORS’ 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 businesstype 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, 2012, 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. As discussed in Note 16 to the Basic Financial Statements, on December 29, 2011, the Supreme Court of the State of California
upheld the enforceability of legislation that provides for the dissolution of California redevelopment agencies. Accordingly, the Chula Vista Redevelopment Agency, a component unit of
the City, was dissolved on February 1, 2012. On February 28, 2012, the City Council adopted a resolution and assumed the housing functions from the former Chula Vista Redevelopment Agency.
All housing assets, as defined by AB X1 26, were transferred to the City and reported in the Housing Successor Special Revenue Fund, and the remaining assets, net of liabilities, were
transferred to the Redevelopment Successor Agency on February 1, 2012. 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, 2012, and the
respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
To the Honorable Mayor and Members of the City Council of the City of Chula Vista Chula Vista, California Page Two 2 In accordance with Government Auditing Standards, we have also issued
our report dated December 27, 2012, 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. Accounting principles generally accepted in the United States of America require that
the Management’s Discussion and Analysis, the Budgetary Information, the Budgetary Comparison Schedules, the Schedules of Funding Progress for the Public Employee Retirement Systems
and Other Post Employment Benefits on pages 3 through 21 and 104 through 108 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 basic financial statements. 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 part of the basic financial
statements. The Combining and Individual Nonmajor Fund Financial Statements and the Budgetary Comparison Schedules are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and the Budgetary Comparison Schedules are fairly stated in all material
respects in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section 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. San Diego, California December 27, 2012
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 annual financial report a narrative overview
and analysis of the financial activities of the City of Chula Vista for the fiscal year ended June 30, 2012. 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, 2012 by $994.5 million (net assets). Of this amount, $176.1 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 $23.2 million higher than last
fiscal year, an increase of 15.2%. 3. The City’s total net assets increased by $13.4 million in fiscal year 2012. Net assets of governmental activities increased by $13.4 million, while
net assets of the business type activities increased by $4,853. 4. The City’s governmental funds reported combined ending fund balances of $117.7 million, a decrease of $7.9 million.
5. Total citywide liabilities decreased by $49.1 million. Liabilities for governmental activities decreased by $48.8 million and decreased by $0.3 million for business-type activities.
6. The City’s total long-term debt obligations had a net decrease of $47.3 million or -24.5% during fiscal year 2012. The decrease is composed of principal reductions ($8.4 million)
and transfer of the former Redevelopment Agency Tax Allocation Bonds ($43.0 million) and ERAF Loans ($0.8 million) to a Private-Purpose Trust Fund. In addition, the City issued notes
payable of $4.0 million for energy conservation projects financed through the California Energy Commission and San Diego Gas & Electric’s On-Bill Financing Program. 7. An Extraordinary
Gain – Government Wide of $28.7 million is recorded as a result of the dissolution of the City’s Redevelopment Agency. Please see Note 16 in the Notes to the Financial Statements section
for further information. 8. An Extraordinary Loss of $3.2 million is reported in the governmental funds due to the dissolution of the redevelopment agency. The loss is due primarily
to the removal of net assets at the fund financial statement level. See Note 16 in the Notes to the Financial Statements section for further information. 9. The unassigned fund balance
of the General Fund on June 30, 2012 was $12.0 million or 10.3 percent of fiscal year 2011-12 General Fund expenditures (excluding other financing uses).
4 10. The City continues 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 $4.3 million reduction in UUT revenues recognized in fiscal year 2011-12. Recognizing this revenue in the future will be contingent upon the outcome of lawsuits related to the Utility
User Tax. 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 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. The business-type activities of the City include the Sewer Funds and Transit Operations.
5 Discretely Presented Component Units -The City of Chula Vista has no discretely presented component units to report upon. 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 financerelated 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 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 twenty-seven governmental funds, of which six 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 activities. Internal service funds are used to accumulate and allocate costs internally among the City’s various
functions. The
6 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.
7 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 $994.5 million at the close of the fiscal year ending June 30, 2012. This is an increase of $13.4 million
when compared to the prior year. All of the increase occurred in the City’s governmental funds. The following is a summary schedule showing the components that make up the City’s net
assets at June 30, 2012 and 2011. 2012 2011 2012 2011 2012 2011 Current Assets $ 158,958,704 $ 155,963,987 $ 73,026,060 $ 67,255,297 $ 231,984,764 $ 223,219,284 Non-Current Assets 41,033,397
52,841,925 14,293,954 14,066,534 55,327,351 66,908,459 Capital Assets 782,926,138 809,473,731 140,248,319 146,550,585 923,174,457 956,024,316 Total Assets 982,918,239 1,018,279,643 227,568,333
227,872,416 1,210,486,572 1,246,152,059 Current Liabilities 38,453,919 42,016,104 603,803 916,773 39,057,722 42,932,877 Non-Current Liabilities 176,731,284 221,954,722 4 ,297,255 190,850
181,028,539 222,145,572 Total Liabilities 215,185,203 263,970,826 4 ,901,058 1,107,623 220,086,261 265,078,449 Net Assets Invested in Capital Assets, Net of Related Debt 655,182,727
634,409,385 140,248,319 146,550,585 795,431,046 780,959,970 Restricted 22,929,585 47,168,636 --22,929,585 47,168,636 Unrestricted 89,620,724 72,730,796 86,521,327 80,214,208 176,142,051
152,945,004 Total Net Assets $ 767,733,036 $ 754,308,817 $ 226,769,646 $ 226,764,793 $ 994,502,682 $ 981,073,610 Net Assets City of Chula Vista Fiscal Year Ending June 30 Governmental
Activities Business-Type Activities Total As the table shows, an amount of $795.4 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 ($22.9 million or 2.3%) and represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of
$176.1 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.
8 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 increased by $13.4 million or 1.3%, from the prior fiscal
year. The government activities account for all of the increase in total net assets. 2012 2011 2012 2011 2012 2011 Revenues: Program Revenues: Charges for Services 51,273,789 75,720,603
$ 39,591,997 $ 35,235,240 $ 90,865,786 $ 110,955,843 Operating Grants & Contributions 21,780,868 31,976,818 3,524,426 3,431,988 25,305,294 35,408,806 Capital Grants & Contributions 4,283,855
4,781,625 --4,283,855 4,781,625 General Revenues: Property Taxes 49,721,604 39,437,025 --49,721,604 39,437,025 Sales Taxes 27,275,753 26,702,443 --27,275,753 26,702,443 Franchise Taxes
8,400,178 8,260,411 --8,400,178 8,260,411 Utility User Taxes 3,465,136 4,943,679 --3,465,136 4,943,679 Business License Taxes 1,169,307 1,085,247 --1,169,307 1,085,247 Transient Occupancy
Taxes 2,295,675 2,058,878 --2,295,675 2,058,878 Property Transfer Taxes 779,981 777,016 --779,981 777,016 Construction Taxes 321,252 360,156 --321,252 360,156 Investment Earnings 3,615,266
9,108,662 1,273,689 1,288,478 4,888,955 10,397,140 Miscellaneous 1,530,568 5,193,653 2,326,442 1,013,733 3,857,010 6,207,386 Gain (Loss) Disposal of Capital Assets --10,905 -10,905 -Total
Revenues 175,913,232 210,406,216 46,727,459 40,969,439 222,640,691 251,375,655 Expenses General Government 22,508,977 46,457,112 --22,508,977 46,457,112 Public Safety 75,931,086 75,664,246
--75,931,086 75,664,246 Public Works 76,458,061 71,857,158 --76,458,061 71,857,158 Parks and Recreation 7,310,312 6,995,489 --7,310,312 6,995,489 Library 4,185,624 4,509,999 --4,185,624
4,509,999 Transit 63,021 ---63,021 -Interest on Long-Term Debt 8,904,275 11,538,707 --8,904,275 11,538,707 Sewer Funds --30,524,851 30,245,584 30,524,851 30,245,584 Transit --7,050,673
7,075,998 7,050,673 7,075,998 Bayfront Trolley Statioin --91,942 91,788 91,942 91,788 Sewer DIFs --129,351 123,629 129,351 123,629 Development Services Fund --4,730,599 -4,730,599 -Total
Expenses 195,361,356 217,022,711 42,527,416 37,536,999 237,888,772 254,559,710 Increase/(Decrease) in Net Assets Before Transfers (19,448,124) (6,616,495) 4,200,043 3,432,440 (15,248,081)
(3,184,055) Transfers 4,195,190 3,437,718 (4,195,190) (3,437,718) --Extraordinary Gain (Loss) 28,677,153 28,677,153 Change in Assets 13,424,219 (3,178,777) 4,853 (5,278) 13,429,072 (3,184,055)
Net Assets, Beginning of Year 754,308,817 757,487,594 226,764,793 226,770,071 981,073,610 984,257,665 Net Assets, End of Year $ 767,733,036 $ 754,308,817 $ 226,769,646 $ 226,764,793
$ 994,502,682 $ 981,073,610 City of Chula Vista Fiscal Year Ending June 30 Summary of Changes in Net Assets Governmental Activities Business-Type Activities Total
9 Further analysis is provided within the governmental and business-type activity sections below. Governmental Activities Governmental activities increased the City’s net assets by $13.4
million thereby accounting for all of the City’s increase in net assets. The City received a total of $77.3 million in Program Revenues for the year a decrease of $35.2 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. $-$10 $20 $30 $40 $50 $60 $70 $80 $90 General Government Parks and Recreat ion Public Safety
Library Public Works Millions Expenses and Program Revenues Governmental Activities Expenditures Program Revenues Charges for Services had a net decrease of $24.4 million for governmental
activities when compared to the previous year. Some of the more noteworthy changes in the charges for services category are explained below: ? General Government had a net decrease of
$23.8 million. The explanation for the majority of the large decrease is due to two main factors. One was reclassifying Motor Vehicle License Fees of $16.3 million from a Charge for
Service in FY 2010-11 to General Revenue in FY 2011-12. Secondly, the Development Services Fund is no longer a governmental fund but a proprietary fund for FY 2011-12 and accounts for
another $5.8 million of the decrease. Other factors include lower cell site revenues ($0.3 million), drop in code enforcement violations ($0.1 million) and a reduction in deposit-fee
based zoning fees ($0.2 million). Finally, General Government revenues were lower due to reduced staffing resulting in lower staff time reimbursements.
10 ? Public Safety had an increase of $0.6 million due to an increase in jail revenues from other jurisdictions ($0.8 million) for housing federal inmates, an increase in Police Reimbursements
($0.4 million) for School Resource Officers and reimbursed overtime from other law enforcement agencies. There were revenue reductions for Police Facility Development Impact Fee reimbursements
($0.4 million) and the Abandoned Vehicle Abatement Program ($0.2 million) was discontinued in April 2012 due to termination of State fee for the program. ? Public Works had a decrease
of $0.6 million due to a reduction in Public Works staffing resulting in lower reimbursements for staff time ($1.0 million) along with increased revenues for inspection fees ($0.1 million),
zoning fees ($0.2 million) and for the City’s Used Oil Recycling Program ($0.1 million). ? Parks and Recreation had a decrease of $0.5 million from the prior year due to the reduction
in hours at recreational facilities citywide resulting in reduced fees for recreation classes and other related activities. ? Library activities resulted in reduced revenues for the
Public Facilities Development Impact Fee fund because the city had fewer building permits issued. Operating Grants and Contributions for governmental activities showed a decrease of
$10.2 million from the previous fiscal year. The material items that make up most of the change are as follows. ? General Government had reduced revenues of $4.5 million due to decreases
in grant reimbursements from HUD. The primary reason for the reduction is due to American Recovery and Reinvestment Act funds that were spent in fiscal year 2010-11 thereby causing a
variance when compared to fiscal year 2011-12 when those funds were no longer available. In the previous fiscal year there were significant expenditures for an affordable housing project
and one-time monies for CDBG-R and Neighborhood Stabilization Program funds. HOME Partnership funds were reduced by $2.1 due to completion of Landings II, in the previous fiscal year.
CDBG entitlement fund reimbursements were reduced by $2.2 million in FY 2011-12 because one-time CDBGR and Neighborhood Stabilization Program funds were no longer available. ? Public
Safety increased by $0.9 million due to increased funding for the California Border Alliance Group that supports law enforcement activities along the U.S.–Mexico border. ? Public Works
category was reduced by $6.5 when compared to the prior year. The reduction is due to the expiration of the ARRA grant funds. ARRA monies were spent in fiscal year 2010-11 and those
funds were no longer available in fiscal year 2011-12. The reductions occurred in American Recovery and Reinvestment Act ($2.8 million) and energy conservation grants for various solar
projects on city owned facilities ($3.2 million). ? Parks and Recreation category saw a slight increase of $39,030 from the previous fiscal year. Much of this increase is due to various
donations ($33,500) received from community groups to keep certain recreation facilities open longer. ? Library category showed a decrease of $100,940. The library had received a Public
Library Act grant from the State in the amount of $81,270 in fiscal year 2010-11 that was not renewed in fiscal year 2011-12.
11 Capital Grants and Contributions for governmental activities had a decrease of $0.5 million. The major components of this change are made up of highlighted below. ? General Government
had reduced revenues of $0.2 million due to reduced funding for housing rehabilitation loans ($200,000) and a one-time grant received from the County of San Diego in fiscal year 2010-11
of $40,000. ? Public Safety realized 160,522 more in revenue when compared to the previous fiscal year due to receiving a federal grant that was used to upgrade the police department’s
crime lab. ? The Public Works component accounts for $0.4 million of the decrease. The City completed fewer transportation related projects thereby receiving fewer reimbursements. The
City’s General Revenues increased as a whole by $0.6 million when compared to the prior fiscal year. Despite the small overall increase in General Revenues there is good news in the
details. As seen in the chart below, many of the discretionary revenues saw increases indicating that the City is progressing in its recovery from the recession and housing crisis. The
City has prudently been recording deferred revenue for collections of the City’s Utility User Tax that is related to wireless telecommunications. Deferral of this revenue results in
a $4.3 million reduction in UUT revenues that would have been recognized in fiscal year 2011-12. The chart reflects a lesser amount because prior year deferrals did not begin until November
2010. Recognizing this revenue in the future will be contingent upon the outcome of lawsuits related to the Utility User Tax. Investment earnings were down due to the historically low
interest rate environment. Miscellaneous revenues are reduced because due to the creation of accounts describing the revenues in more detail thereby reducing the postings to miscellaneous
revenues. Increase/2012 2011 (Decrease) Property Taxes $ 49,721,604 $ 39,437,025 $ 10,284,579 Sales Taxes 27,275,753 26,702,443 573,310 Franchise Taxes 8,400,178 8,260,411 139,767 Utility
User User Taxes 3,465,136 4,943,679 (1,478,543) Business License Taxes 1,169,307 1,085,247 84,060 Transient Occupancy Taxes 2,295,675 2,058,878 236,797 Property Transfer Taxes 779,981
777,016 2,965 Construction Taxes 321,252 360,156 (38,904) Investment Earnings 3,615,266 9,108,662 (5,493,396) Miscellaneous 1,530,568 5,193,653 (3,663,085) Total General Revenues $ 98,574,720
$ 97,927,170 $ 647,550 General Revenues as of June 30
12 Total governmental activity type expenses were $195.3 million in fiscal year 2011-12. The largest expenses were incurred for Public Safety, Public Works and General Government. These
three activities combined account for 90% of all general activity expenses. These expenses do not include capital outlays, which are reflected in the City’s capital assets. General Government
11% Parks and Recreation 4% Public Safety 39% Library 2% Public Works 39% Interest on long-term debt 5% Governmental Expenses by Activity Total program revenues from governmental activities
were $77.3 million in fiscal year 2011-12. 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 $98.6 million in fiscal year 2011-12. The largest percentage of
general revenues received during the year for governmental activities were taxes of $93.4 million, which included Property Taxes of $49.7 million and Sales Taxes of $27.3 million. Business-Type
Activities Net assets for business-type activities were $226.8 million, an increase of $4,853 from the prior fiscal year. Overall expenses for the business-type activities showed a $5.0
million increase over the previous year. The increase is due largely to the first year reclassification of the Development Services Fund ($4.7 million) from a governmental fund type
to a proprietary fund. The Sewer Funds account for the remaining increase of $0.3 million.
13 Total program revenues for business-type activities were $43.1 million and are composed of sewer fees ($32.6 million), bus fares ($6.1 million) and development fees (4.3 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 business-type activities were $42.5 million and were for expenses related to Sewer ($30.5 million), Transit Operations ($7.1 million) and processing of development permits and
plans ($4.9). 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 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 $112.1 million in revenues and $116.2 million in expenditures, resulting in
revenues under expenditures in the amount of $4.1 million. After accounting for net other financing sources of $3.5 million, General Fund fund equity decreased by $7.7 million. Total
fund balance at June 30, 2012 was $28.0 million, composed
of $44.9 million in assets combined with $16.8 million in liabilities. Total fund balance included $8.8 million of nonspendable or restricted fund balance, which represents that portion
of fund balance that is not available for appropriation. Committed fund balance totaled $4.4 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 $2.9 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
$12.0 million, this is the portion of fund balance that is available for appropriation for any purpose. Unassigned fund balance represents 10.3% of total fiscal year 2011-12 General
Fund expenditures.
14 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, CDBG program income projects, HOME project, and Community Development Block grants. The Sundry Grants Fund had total revenues of
$12.9 million and expenditures of $17.7 million, resulting in revenues under expenditures in the amount of negative $4.8 million. Sundry Grants Fund equity decreased by $1.7 million
for the fiscal year after accounting for net other financing sources of $3.1 million. Fund equity decreased due to the use of Sundry Grants reserves that had been collected in previous
years but not spent until fiscal year 2011-12. Total fund balance at June 30, 2012 was $6.9 million composed of nonspendable ($3.2 million) and restricted ($3.7 million) fund balance.
Low and Moderate Income Housing Successor Special Revenue Fund -The California legislature voted to end redevelopment agencies on February 1, 2012. This fund was created mid-year as
a result of the dissolution process and was formerly known as the Low and Moderate Income Housing Fund. The City opted to become the Successor Agency to the Redevelopment Agency and
to the Low and Moderate Incone Housing. For the year, this fund received $5,058 made up primarily representing investment and other interest earnings. Housing expenditure activities
totaled $1,642 and were primarily for administrative costs. Due to the dissolution of redevelopment there was an Extraordinary Gain of $7.1 million incurred for the transfer of assets
from the former Low and Moderate Income Housing Fund. See Note 16 in the Notes to the Financial Statements for further information regarding the extraordinary item. Revenue, expenditures
and the extraordinary gain resulted in a year end fund balance total of $7.1 million. 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, 2012, this fund had a fund balance of negative $37.3 million. The unassigned fund balance decreased by $0.7 million due to the accrual of interest
($0.9 million) on interfund loan principal balances and net financial sources of $0.2 million. 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
for this fund totaled $5.3 million with $4.7 million attributable to building permit fees for new development and the remaining amount for investment and interest earnings. Expenditures
totaled $2.6 million comprised of mostly activity in the Transportation DIF in which $2.4 million was spent to widen Otay Lakes Road and the remaining $0.2 million for other transportation
planning and traffic calming projects.
15 Total fund equity increased by $2.8 million for the year. At June 30, 2012 this fund had a fund balance totaling $42.9 million, comprised of $45.3 million in assets, mostly cash ($33.7
million) and Advances to Other Funds ($11.4 million) and $2.4 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 $0.9 million with $0.7 million attributable to building permit fees for new development and the remaining amount for investment and interest earnings. Expenditures totaled $1.0
million comprised of the purchase of land ($0.9 million) for the Otay Valley River Park and $56,619 in capital expenditures. The capital improvements were for Otay Ranch Community Park
and the Otay Ranch Village 2 Neighborhood Park. Total fund equity increased by $2.8 million for the year. At June 30, 2012 this fund had a fund balance totaling $31.9 million, comprised
primarily of $32.5 million in assets, mostly cash ($22.4 million) and Advances to Other Funds ($10 million) and $.5 million 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. 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 fiscal year these
charges totaled $32.6 million. In addition, non-operating revenues totaling $1.2 million were realized. Nonoperating revenues are composed of investment income ($1.2 million) and a gain
on sale of assets ($10,905). Operating expenditures totaled $30.5 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 $18.5 million. After accounting for all revenues and expenses, both operating and nonoperating, net assets of the fund increased by $542,591 for the year, totaling $217.7
million as of June 30, 2012. Of total net assets, $136.6 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 $63.3 million comprised of cash and investments ($58.3 million) and accounts receivable
of $4.8 million. Fund liabilities at the end of the fiscal year were $623,258, of which $449,422 were considered current liabilities. The fund has no outstanding bonded debt.
16 GENERAL FUND BUDGETARY HIGHLIGHTS The final amended general fund budget totaled $131,872,205 including $2,106,651 in budget amendments to the originally adopted budget and encumbrances
of $5.2 million, which will fund contractual obligations and outstanding purchase orders. The General Fund’s budget amendments of $3,664,639 are summarized as follows: Resolution Budget
Amendments Appropriation 2011-130 Evidence Control Assist & 3 Hourly Latent Print Examiners $ 165,000 2011-148 Support for Historic Preservation Commission 2,825 2011-156 Goodrich Aerostructures
Donation for Rohr Park Trash Bins 12,000 2011-159 State Reimbursement for Upgrade of CAD Interface GIS Mapping 120,453 2011-185 Budget Amendments Approved For Public Works, Rec, HR and
Admin 101,402 2011-186 County of San Diego Grant for Centennial Celebration 20,000 2011-182 SD Regional Computer Forensics Laboratory + 4% Admin Fee 80,818 2011-188 Donation from Target
For Literacy Programming 2,000 2011-210 Administration Fee for CBAG Salary Increase -2011-210 Donation from the Friends of the Library for Books 45,000 2011-226 Animal Care Facility
Cattery Expansion Capital Project 150,000 2011-240 Additional Recreation Classes 390,030 2012-001 Donation from CV Library Foundation for Otay Ranch Library 50,000 2012-024 Undoing March
2011 RDA Actions (500,000) 2012-032 Donation for Bike Maps, Rohr Park Trash Bins and Interest Adjustment 3,200 2012-038 Valley Healthcare Systems -Jail Medical Services Contract 74,000
2012-039 Greenhouse Gas and Irrigation Incentives 7,500 2012-041 Bonita Canyon Repairs 466,000 2012-060 WalMart Donation to the Fire Department 500 2012-082 Third Quarter Financial Report
Budget Cleanup 678,673 2012-191 Fire Department Strike Teams/Fleet Maintenance and ACF Clinics 237,250 Total General Fund Budget Amendments $ 2,106,651 General Fund Budget Amendments
Per Council Resolutions Fiscal Year 2011-12 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, 2012, amounts to $923.2 million, net of accumulated depreciation of $428.6 million. This investment in capital assets includes land, buildings, improvements, machinery
and equipment, infrastructure and construction in progress.
17 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 change to the City’s investment in capital assets for the current fiscal year was a negative $20.9 million, net of accumulated depreciation. 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, 2012, the City had $145.5 million in debt outstanding
compared to the $192.8 million last year, a 24.9% net decrease. The majority of this debt is in the form of Certificates of Participation ($132.3 million) and a CDBG Section 108 Loan
($8.6 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. Tax allocation bonded debt ($43.0 million) has been transferred to the redevelopment agency successor agency and are
now reported in the fiduciary funds and accounts for much of the decrease in debt (see Note 16 in the Notes to the Financial Statements for more information). In addition, The City made
principal payments of $8.4 million and retired a pension obligation bond during the fiscal year. During the fiscal year there were four new debt issuances that totaled $4.0 for energy
conservation projects for City facilities. The City has maintained an “A-” rating by Standard & Poors for Certificates of Participation, which represents a “stable outlook. 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 2011-12 fiscal year was $21,893,699,349. This is
a decrease of $24,750,997 or 0.11% under the 2010-11 assessed valuation. It should be noted that assessed value was set as of January 1, 2011. Actual current secured property tax revenues
for the fiscal year totaled $22.8 million. This is the same amount that was collected in the prior fiscal year.
18 Building Activity. The valuation of all building and related permits totaled $158.6 million for the 2011-12 fiscal year. This is approximately 15.5% less than the valuation of $187.8
million for these permit categories in the prior fiscal year. The valuation of building permits issued for residential units totaled $121.1 million. This is $23.5 million less than the
valuation in the prior year. Permits issued for new non-residential buildings totaled $8.4 million a decrease of $10.1 million from the prior fiscal year. The valuation of permits issued
for alterations or additions to existing buildings totaled $26.8 million as compared to $24.2 million in the prior year. Local Economy. The USD Burnham-Moores Center for Real Estate’s
Index of Leading Economic Indicators for San Diego County rose in each month of the second quarter, with gains of 0.6, 0.7, and 0.1 percent respectively for April, May, and June. June’s
slight advance was led by a sharp increase in building permits along with moderate gains in consumer confidence and help wanted advertising. These outweighed moderate declines in initial
claims for unemployment insurance, local stock prices, and the outlook for the national economy to push the USD Index to its eighth consecutive monthly increase, albeit by the slimmest
of margins. Although June’s advance was weak and the up/down ratio of the components was the worst in nine months, the outlook remains for positive growth in the local economy. The most
encouraging news for the local economy was a solid jobs report for June. San Diego County added 24,000 more jobs in June compared to the same month in 2011. That was the best year-over-year
job growth in a month since 2005. Barring an international event (Europe, China, and the Middle East) that tips the national economy into a double dip recession, that job growth is expected
to last the rest of the year and into at least the first half of 2013.1 Although the county realized gains in the number of building permits authorized, the housing market continues
to show instability. June 2012 home prices in San Diego County were up 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 $335,500. Four of Chula Vista’s five zip codes saw decreases in the median price of single-family residences while two zip codes increased according to the
report. As most cities and counties across the nation, Chula Vista continues to move forward in its economic recovery. 1 University of San Diego, Burnham Institute, August 1, 2012 San
Diego Index of Leading Economic Indicators 85 90 95 100 105 110 115 120 125 130 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12
19 Data for June 2012 Compared to June 2011 Zip Code Locale 2011 2012 91910 North $305,000 $279,000 -8.5% 91911 South $223,000 $255,500 14.6% 91913 Eastlake $320,000 $295,500 -7.7% 91914
NE $510,000 $479,500 -6.0% 91915 SE $322,000 $314,000 -2.5% Median Price Percent Change Fiscal Year 2012-13 Budget. The City ended the 2011-12 fiscal year with unassigned fund balance
of $12.0 million. An amount of $3.0 million of committed fund balance (Economic Contingency Reserve) was budgeted to fund operations in fiscal year 2011-12. Fortunately, only $0.7 million
was needed and the Economic Contingency Reserve ended with a balance of $2.3 million. In June 2012, the Chula Vista City Council adopted the 2012-13 annual operating budget which provides
$274.5 million in appropriations to fund all City operating activities. The General Fund budget totaled $123.8 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 a one-year budget. The current national mortgage crisis
continues to impact overall property values and property tax growth. Based on information received from the San Diego County Assessor, Chula Vista’s change in net taxable assessed value
for fiscal year 2012-13 is negative 0.71%. This rate of change can be compared to the 2010-11 negative growth rate of 0.11%. 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 2012-13 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 9
1910. 20
BASIC FINANCIAL STATEMENTS 21
22
GOVERNMENT-WIDE FINANCIAL STATEMENTS 23
Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and investments $ 1 24,073,658 $ 6 7,691,717 $ 1 91,765,375 Receivables: Accounts 2 ,810,002 5 ,122,860
7 ,932,862 Taxes 1 0,401,807 -1 0,401,807 Interest 2 03,671 1 05,594 3 09,265 Other 3 86,219 6 8,264 4 54,483 Due from other governments 5 ,748,906 -5 ,748,906 Due from fiduciary 1 5,284,095
-1 5,284,095 Inventories and prepaid items 5 0,346 3 7,625 8 7,971 Total current assets 1 58,958,704 7 3,026,060 2 31,984,764 Noncurrent assets: Restricted cash and investments: Held
by city 4 ,014,986 -4 ,014,986 Held by fiscal agent 1 0,119,913 -1 0,119,913 Loans receivable 4 0,746,769 -4 0,746,769 Internal balances (14,293,954) 1 4,293,954 -Deferred charges, net
1 99,611 -1 99,611 Net pension assets 2 46,072 -2 46,072 Non-depreciable capital assets 9 2,292,571 1 ,849,675 9 4,142,246 Depreciable capital assets, net 6 90,633,567 1 38,398,644 8
29,032,211 Total noncurrent assets 8 23,959,535 1 54,542,273 9 78,501,808 Total assets 9 82,918,239 2 27,568,333 1 ,210,486,572 Primary Government City of Chula Vista June 30, 2012 Statement
of Net Assets See accompanying Notes to Basic Financial Statements. 24
Governmental Business-Type Activities Activities Total LIABILITIES Current liabilities: Accounts payable and accrued liabilities 9 ,407,475 4 66,803 9 ,874,278 Interest payable 2 ,503,540
-2 ,503,540 Unearned revenue 1 3,428,912 1 37,000 1 3,565,912 Compensated absences -due within one year 4 ,000,000 -4 ,000,000 Claims payable -due within one year 4 ,000,000 -4 ,000,000
Long-term debt -due within one year 5 ,113,992 -5 ,113,992 Total current liabilities 3 8,453,919 6 03,803 3 9,057,722 Noncurrent liabilities: Retention payable 2 49,025 -2 49,025 Developer
deposits 1 0,373,771 -1 0,373,771 Pollution Remediation Obligation 1 50,000 -1 50,000 Arbitrage liability 8 6,505 -8 6,505 Net OPEB liability 4 ,685,000 -4 ,685,000 Compensated absences
-due in more than one year 2 ,652,700 1 94,884 2 ,847,584 Claims payable -due in more than one year 1 8,189,864 -1 8,189,864 Long-term debt -due in more than one year 1 40,344,419 -1
40,344,419 Total noncurrent liabilities 1 76,731,284 1 94,884 1 76,926,168 Total liabilities 2 15,185,203 7 98,687 2 15,983,890 NET ASSETS Invested in capital assets, net of related
debt 6 55,182,727 1 40,248,319 7 95,431,046 Restricted: Community development 7 ,565,686 -7 ,565,686 Debt service 1 2,704,454 -1 2,704,454 Capital projects 2 ,659,445 -2 ,659,445 Total
restricted 2 2,929,585 -2 2,929,585 Unrestricted 8 9,620,724 8 6,521,327 1 76,142,051 Total net assets $ 7 67,733,036 $ 2 26,769,646 $ 9 94,502,682 Primary Government City of Chula Vista
Statement of Net Assets, Continued June 30, 2012 See accompanying Notes to Basic Financial Statements. 25
Operating Capital Total Charges for Grants and Grants and Program Functions/Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities:
General government $ 22,508,977 $ 5,955,849 $ 4,175,432 $ 36,979 $ 10,168,260 Public safety 75,931,086 8,658,579 9,332,716 160,522 18,151,817 Public works 76,458,061 32,767,261 8,131,554
4,086,354 44,985,169 Parks and recreation 7,310,312 3,051,842 47,198 -3,099,040 Library 4,185,624 840,258 93,968 -934,226 Transit 63,021 ----Interest on long-term debt 8,904,275 ----Total
governmental activities 195,361,356 51,273,789 21,780,868 4,283,855 77,338,512 Business-type activities: Sewer 30,524,851 32,571,135 --32,571,135 Transit 7,050,673 2,671,538 3,432,484
-6,104,022 Bayfront Trolley Station 91,942 -91,942 -91,942 Sewer DIFS 129,351 174,667 --174,667 Development Services Fund 4,730,599 4,174,657 --4,174,657 Total business-type activities
42,527,416 39,591,997 3,524,426 -43,116,423 Total primary government $ 237,888,772 $ 90,865,786 $ 25,305,294 $ 4,283,855 $ 120,454,935 Program Revenues Statement of Activities and Changes
in Net Assets City of Chula Vista For the year ended June 30, 2012 See accompanying Notes to Basic Financial Statements. 26
Governmental Business-type Functions/Programs Activities Activities Total Primary government: Governmental activities: General government $ (12,340,717) $ -$ (12,340,717) Public safety
(57,779,269) -(57,779,269) Public works (31,472,892) -(31,472,892) Parks and recreation (4,211,272) -(4,211,272) Library (3,251,398) -(3,251,398) Transit (63,021) -(63,021) Interest
on long-term debt (8,904,275) -(8,904,275) Total governmental activities (118,022,844) -(118,022,844) Business-type activities: Sewer -2,046,284 2,046,284 Transit -(946,651) (946,651)
Bayfront Trolley Station ---Sewer DIFS -45,316 45,316 Development Services Fund -(555,942) (555,942) Total business-type activities -589,007 589,007 Total primary government (118,022,844)
589,007 (117,433,837) General revenues: Taxes: Property taxes 49,721,604 -49,721,604 Sales taxes 27,275,753 -27,275,753 Property transfer taxes 779,981 -779,981 Franchise taxes 8,400,178
-8,400,178 Utilities user taxes 3,465,136 -3,465,136 Business license taxes 1,169,307 -1,169,307 1,169,307 Transient occupancy taxes 2,295,675 -2,295,675 Construction taxes 321,252 -321,252
Total taxes 93,428,886 -93,428,886 Investment earnings 3,615,266 1,273,689 4,888,955 Miscellaneous 1,530,568 2,326,442 3,857,010 Gain on disposal of capital assets -10,905 10,905 Transfers
4,195,190 (4,195,190) -Total general revenues and transfers 102,769,910 (584,154) 102,185,756 Extraordinary gain (Note 16) 28,677,153 -28,677,153 Change in net assets 13,424,219 4,853
13,429,072 Net assets -beginning of year 754,308,817 226,764,793 981,073,610 Net assets -end of year $ 767,733,036 $ 226,769,646 $ 994,502,682 Primary Government and Changes in Net Assets
Net (Expense) Revenue City of Chula Vista Statement of Activities and Changes in Net Assets, Continued For the year ended June 30, 2012 See accompanying Notes to Basic Financial Statements.
27
28
FUND FINANCIAL STATEMENTS 29
30
GOVERNMENTAL FUND FINANCIAL STATEMENTS 31
Low & Moderate Income Housing Sundry Grants Successor City General Special Revenue Special Revenue Debt Service Fund Fund Fund Fund ASSETS Cash and investments $ 17,403,991 $ 3,233,623
$ 19,114 $ -Receivables: Accounts 2,397,608 302,927 --Taxes 9,560,463 98,756 --Interest 26,988 5,113 10 -Loans 92,874 16,972,909 20,899,019 -Other 34,641 ---Due from other funds 3,006,662
---Due from other governments 505,049 2,860,063 --Due from Succesor Agency 10,207,797 -5,076,298 -Advances to other funds 1,581,814 ---Inventories and prepaid items 49,595 751 --Restricted
cash and investments: Held by City -3,369,578 645,408 -Held by fiscal agents ----Total assets $ 44,867,482 $ 26,843,720 $ 26,639,849 $ -LIABILITIES AND FUND BALANCES Liabilities: Accounts
payable and accrued liabilities $ 5,549,046 $ 1,159,860 $ 125 $ -Due to other funds -1,745,331 --Retention payable -17,550 --Advances from other funds ---37,323,149 Developer deposits
----Deferred revenue 11,279,378 16,983,468 19,582,145 -Total liabilities 16,828,424 19,906,209 19,582,270 37,323,149 Fund Balances: Nonspendable 8,799,026 3,223,851 6,393,172 -Restricted
-3,713,660 664,407 -Committed 4,375,207 ---Assigned 2,895,545 ---Unassigned 11,969,280 --(37,323,149) Total fund balances 28,039,058 6,937,511 7,057,579 (37,323,149) Total liabilities
and fund balances $ 44,867,482 $ 26,843,720 $ 26,639,849 $ -Major Funds City of Chula Vista June 30, 2012 Governmental Funds Balance Sheet See accompanying Notes to Basic Financial Statements.
32
Park Acquisition Other Total Development Development Governmental Governmental Impact Fund Fund Funds Funds ASSETS Cash and investments $ 33,677,637 $ 22,382,119 $ 42,466,343 $ 119,182,827
Receivables: Accounts --109,467 2,810,002 Taxes --742,588 10,401,807 Interest 80,326 36,097 52,177 200,711 Loans --2,781,967 40,746,769 Other 183,330 -126,050 344,021 Due from other
funds --72,231 3,078,893 Due from other governments --2,383,794 5,748,906 Due from Succesor Agency ---15,284,095 Advances to other funds 11,404,439 10,042,942 -23,029,195 Inventories
and prepaid items ---50,346 Restricted cash and investments: Held by City ---4,014,986 Held by fiscal agents --10,119,913 10,119,913 Total assets $ 45,345,732 $ 32,461,158 $ 58,854,530
$ 235,012,471 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 166,968 $ 427,227 $ 1,881,042 $ 9,184,268 Due to other funds --1,333,562 3,078,893
Retention payable --231,475 249,025 Advances from other funds ---37,323,149 Developer deposits --10,373,771 10,373,771 Deferred revenue 2,255,927 102,942 6,935,400 57,139,260 Total liabilities
2,422,895 530,169 20,755,250 117,348,366 Fund Balances: Nonspendable 10,535,338 9,940,000 671,385 39,562,772 Restricted 32,387,499 21,990,990 24,683,002 83,439,558 Committed --12,842,477
17,217,684 Assigned ---2,895,545 Unassigned -(1) (97,584) (25,451,454) Total fund balances 42,922,837 31,930,989 38,099,280 117,664,105 Total liabilities and fund balances $ 45,345,732
$ 32,461,158 $ 58,854,530 $ 235,012,471 Major Funds City of Chula Vista June 30, 2012 Governmental Funds Balance Sheet, Continued See accompanying Notes to Basic Financial Statements.
33
34
Total Fund Balances -Total Governmental Funds $ 117,664,105 Amounts reported for governmental 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.
199,611 Net pension assets were not available to pay for current period expenditures and therefore were not recorded in the governmental funds. 246,072 Capital assets used in governmental
activities were not financial resources and therefore were not reported in governmental funds. Government-Wide Financial Statements 782,926,138 Less: Internal Service Funds' Capital
Assets (427,780) Total capital assets 782,498,358 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. (2,503,540) Long-term liabilities were not due and payable in the current period and therefore were not reported in the governmental funds. Amount
reported in Government-Wide Statement of Net Assets: Compensated absences -due within one year (4,000,000) Compensated absences -due in more than one year (2,652,700) Claims payable
-due within one year (4,000,000) Claims payable -due in more than one year (18,189,864) Long-term debt -due within one year (5,113,992) Long-term debt -due in more than one year (140,344,419)
Pollution Remediation Obligation (150,000) Arbitrage liability (86,505) Net OPEB liability (4,685,000) Less: Amount reported in Internal Service Funds Compensated absences -due in more
than one year 62,763 Total long-term liabilities (179,159,717) Deferred revenues recorded in governmental 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 (13,428,912) Amounts
reported in Governmental Fund Financial Statements 57,139,260 Total adjustments on deferred revenues 43,710,348 Internal 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 governmental activities in the Government-Wide Statement of Net Assets.
5,077,799 Net Assets of Governmental Activities $ 767,733,036 City of Chula Vista June 30, 2012 to the Government-Wide
Statement of Net Assets Reconciliation of the Governmental Funds Balance Sheet See accompanying Notes to Basic Financial Statements. 35
Low & Moderate Income Housing Sundry Grants Successor City General Special Revenue Special Revenue Debt Service Fund Fund Fund (1) Fund REVENUES: Taxes $ 85,167,221 $ -$ -$ -Intergovernmental
2,029,529 11,170,227 --Licenses and permits 1,222,769 ---Developer fees ----Charges for services 7,794,981 1,033,479 25 -Fines and forfeitures 1,355,769 ---Use of money and property
2,916,631 56,654 5,033 -Other 11,587,469 677,429 --Total revenues 112,074,369 12,937,789 5,058 -EXPENDITURES: Current: General government 19,615,371 2,128,285 1,642 -Public safety 64,440,238
7,070,222 --Public works 25,219,618 4,017,488 --Parks and recreation 3,244,286 28,096 --Library 3,435,325 237,336 --Capital outlay 280,627 4,196,916 --Debt service: Principal ----Interest
and fiscal charges ---898,869 Total expenditures 116,235,465 17,678,343 1,642 898,869 REVENUES OVER (UNDER) EXPENDITURES (4,161,096) (4,740,554) 3,416 (898,869) OTHER FINANCING SOURCES
(USES): Issuance of debt -3,963,104 --Transfers in 9,850,345 157,330 -502,896 Transfers out (13,390,590) (1,049,648) -(310,000) Total other financing sources (uses) (3,540,245) 3,070,786
-192,896 EXTRAORDINARY ITEMS: Gain/(Loss) on dissolution of the Chula Vista Redevelopment Agency --7,054,163 -NET CHANGE IN FUND BALANCES (7,701,341) (1,669,768) 7,057,579 (705,973)
FUND BALANCE (DEFICIT): Beginning of year 35,740,399 8,607,279 -(36,617,176) End of year $ 28,039,058 $ 6,937,511 $ 7,057,579 $ (37,323,149) (1) This fund is for the five-month period
from February 1, 2012 to June 30, 2012. Major Funds City of Chula Vista For the year ended June 30, 2012 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance
See accompanying Notes to Basic Financial Statements. 36
Park Acquisition Other Total Development Development Governmental Governmental Impact Fund Fund Funds Funds REVENUES: Taxes $ -$ -$ 11,700,865 $ 96,868,086 Intergovernmental --8,661,255
21,861,011 Licenses and permits --31,037 1,253,806 Developer fees 4,738,400 705,759 8,522,655 13,966,814 Charges for services --12,078,845 20,907,330 Fines and forfeitures --709,477
2,065,246 Use of money and property 363,652 212,895 1,523,055 5,077,920 Other 241,521 -875,631 13,382,050 Total revenues 5,343,573 918,654 44,102,820 175,382,263 EXPENDITURES: Current:
General government 600 -2,087,113 23,833,011 Public safety --406,954 71,917,414 Public works 201,709 -18,472,290 47,911,105 Parks and recreation -939,827 3,434 4,215,643 Library ---3,672,661
Capital outlay 2,413,859 56,619 9,234,867 16,182,888 Debt service: Principal --8,423,156 8,423,156 Interest and fiscal charges --8,330,906 9,229,775 Total expenditures 2,616,168 996,446
46,958,720 185,385,653 REVENUES OVER (UNDER) EXPENDITURES 2,727,405 (77,792) (2,855,900) (10,003,390) OTHER FINANCING SOURCES (USES): Issuance of debt ---3,963,104 Transfers in 241,006
310,000 22,839,209 33,900,786 Transfers out (203,935) -(17,684,437) (32,638,610) Total other financing sources (uses) 37,071 310,000 5,154,772 5,225,280 EXTRAORDINARY ITEMS: Gain/(Loss)
on dissolution of the Chula Vista Redevelopment Agency --(10,245,203) (3,191,040) NET CHANGE IN FUND BALANCES 2,764,476 232,208 (7,946,331) (7,969,150) FUND BALANCE (DEFICIT): Beginning
of year 40,158,361 31,698,781 46,045,611 125,633,255 End of year $ 42,922,837 $ 31,930,989 $ 38,099,280 $ 117,664,105 Major Funds City of Chula Vista For the year ended June 30, 2012
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, Continued See accompanying Notes to Basic Financial Statements. 37
Net Change in Fund Balances -Total Governmental Funds $ (7,969,150) 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. 1 0,747,725 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. This amount did not include the depreciation expense for Internal Service Funds in the amount of $270,338. (25,173,004) The dissolution of the Chula Vista Redevelopment
Agency, effective January 31, 2012, resulted in an extraordinary loss in the fund financial statements of $2,637,699 (primarily from the removal of net assets at the fund financial statement
level). In addition, the extraordinary gain in the Statement of Activities has been adjusted as a result from the increase or decrease of long-term assets and liabilities which were
not reported in the governmental funds. See note 16 for more detail. 3 1,868,193 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins,
and donations) decreased net assets. (788,024) 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 (3,963,104) Principal payment of long-term debt 8 ,423,156 Amortization expenses were 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, amortization expenses were not reported as expenditures
in the Governmental Funds. Bond premium and discount (65,192) Deferred charges (246,056) Net pension assets (2,929,036) Certain long-term liabilities were 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, long-term liabilities were not reported as expenditures
in governmental funds. These amounts represented the changes in long-term liabilities from prior year. Changes in compensated absences 1 44,872 Changes in claims payable 2 42,229 Changes
in arbitrage liability (65,663) Changes in net OPEB liabilities (1,132,000) Interest expense on long-term 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. 7 02,411 Interest earned on long-term
receivables did not provide current financial resources were not reported as revenues in the Governmental Funds. 1 ,301,237 Internal service funds were used by management to charge the
costs of certain activities to individual funds. The net revenue of internal service funds was reported with governmental activities. 2 ,325,625 Change in Net Assets of Governmental
Activities $ 1 3,424,219 City of Chula Vista For the year ended June 30, 2012 in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets Reconciliation
of the Governmental Statement of Revenues, Expenditures, and Changes See accompanying Notes to Basic Financial Statements. 38
PROPRIETARY FUND FINANCIAL STATEMENTS 39
Governmental Major Fund Nonmajor Activities Sewer Enterprise Internal Fund Funds Total Service Funds ASSETS Current assets: Cash and investments $ 58,331,899 $ 9,359,818 $ 67,691,717
$ 4,890,831 Receivables: Accounts 4,792,131 330,729 5,122,860 -Interest 89,985 15,609 105,594 2,960 Other -68,264 68,264 42,198 Prepaid items 37,625 -37,625 -Total current assets 63,251,640
9,774,420 73,026,060 4,935,989 Noncurrent assets: Advances to other funds 18,396,325 -18,396,325 -Capital assets, net 136,645,034 3,603,285 140,248,319 427,780 Total noncurrent assets
155,041,359 3,603,285 158,644,644 427,780 Total assets 218,292,999 13,377,705 231,670,704 5,363,769 LIABILITIES AND NET ASSETS Liabilities: Current liabilities: Accounts payable and
accrued liabilities 449,422 17,381 466,803 223,207 Unearned revenue -137,000 137,000 -Total current liabilities 449,422 154,381 603,803 223,207 Noncurrent liabilities: Advances from
other funds -4,102,371 4,102,371 -Compensated absences 173,836 21,048 194,884 62,763 Total noncurrent noncurrent liabilities 173,836 4,123,419 4,297,255 62,763 Total liabilities 623,258
4,277,800 4,901,058 285,970 Net Assets: Invested in capital assets 136,645,034 3,603,285 140,248,319 427,780 Unrestricted 81,024,707 5,496,620 86,521,327 4,650,019 Total net assets $
217,669,741 $ 9,099,905 $ 226,769,646 $ 5,077,799 City of Chula Vista June 30, 2012 Proprietary Funds Statement of Net Assets See accompanying Notes to Basic Financial Statements. 40
Governmental Major Fund Nonmajor Activities Sewer Enterprise Internal Fund Funds Total Service Funds OPERATING REVENUES: Charges for services $ 32,571,135 $ 7,020,862 $ 39,591,997 $
6,362,160 Other 460,644 1,865,798 2,326,442 30,673 Total operating revenues 33,031,779 8,886,660 41,918,439 6,392,833 OPERATING EXPENSES: Operations and administration 23,957,943 11,035,263
34,993,206 6,750,777 Maintenance 1,067,799 -1,067,799 -Depreciation 5,499,109 904,375 6,403,484 270,338 Total operating expenses 30,524,851 11,939,638 42,464,489 7,021,115 OPERATING
INCOME (LOSS) 2,506,928 (3,052,978) (546,050) (628,282) NONOPERATING REVENUES (EXPENSES): Intergovernmental -3,524,426 3,524,426 -Interest income 1,182,093 91,596 1,273,689 17,756 Interest
expense -(62,927) (62,927) -Gain (loss) on disposal of capital assets 10,905 -10,905 3,137 Total nonoperating revenues (expenses) 1,192,998 3,553,095 4,746,093 20,893 INCOME (LOSS) BEFORE
TRANSFERS 3,699,926 500,117 4,200,043 (607,389) TRANSFERS: Transfers in -543,137 543,137 2,990,161 Transfers out (3,157,335) (1,580,992) (4,738,327) (57,147) Total transfers (3,157,335)
(1,037,855) (4,195,190) 2,933,014 CHANGE IN NET ASSETS 542,591 (537,738) 4,853 2,325,625 NET ASSETS: Beginning of year 217,127,150 9,637,643 226,764,793 2,752,174 End of year $ 217,669,741
$ 9,099,905 $ 226,769,646 $ 5,077,799 City of Chula Vista For the year ended June 30, 2012 Proprietary Funds Statement of Revenues, Expenses and Changes in Net Assets See accompanying
Notes to Basic Financial Statements. 41
Governmental Major Fund Nonmajor Activities Sewer Enterprise Internal Fund Funds Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 3 2,268,606
$ 6 ,562,006 $ 3 8,830,612 $ -Cash received from (payments to) other funds ( 290,350) 6 2,927 ( 227,423) 6 ,353,337 Cash payments to supplier and employees for goods and services ( 25,207,317)
( 11,033,745) ( 36,241,062) ( 6,837,870) Other operating revenues 4 60,644 1 ,865,798 2 ,326,442 3 0,673 Net cash provided (used) by operating activities 7 ,231,583 ( 2,543,014) 4 ,688,569
( 453,860) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets ( 130,710) 2 9,492 ( 101,218) 2 66,392 Proceeds received from disposal of capital assets
1 0,905 -1 0,905 3 ,137 Net cash provided (used) by capital and related financing activities ( 119,805) 2 9,492 ( 90,313) 2 69,529 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovernmental
-3,524,426 3 ,524,426 -Interest expense -(62,927) ( 62,927) -Transfers in -543,137 5 43,137 2,990,161 Transfers (out) (3,157,335) (1,580,992) ( 4,738,327) (57,147) Net cash provided
(used) by noncapital financing activities (3,157,335) 2,423,644 (733,691) 2,933,014 CASH FLOWS FROM INVESTING ACTIVITIES: Interest income 1,211,522 98,672 1,310,194 1 8,783 Net cash
provided (used) by investing activities 1,211,522 98,672 1,310,194 18,783 Net increase (decrease) in cash and cash equivalents 5,165,965 8,794 5,174,759 2,767,466 CASH AND CASH EQUIVALENTS:
Beginning of year 53,165,934 9,351,024 62,516,958 2,123,365 End of year $ 58,331,899 $ 9,359,818 $ 67,691,717 $ 4,890,831 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES: Operating income (loss) $ 2,506,928 $ (3,052,978) $ (546,050) $ (628,282) Adjustments to reconcile operating loss to net cash provided (used) by operating activities:
Depreciation 5,499,109 904,375 6,403,484 270,338 Changes in operating assets and liabilities: Accounts receivable (302,529) (330,729) (633,258) -Other receivable -(8,364) (8,364) (8,823)
Prepaid items (35,884) -(35,884) -Advances to other funds (290,350) -(290,350) -Accounts payable and accrued liabilities (149,776) 1,569 (148,207) (87,154) Unearned revenue -(119,763)
(119,763) -Advances from other funds -62,927 62,927 -Compensated absences 4,085 (51) 4,034 61 Total adjustments 4,724,655 509,964 5,234,619 174,422 Net cash provided (used) by operating
activities $ 7,231,583 $ (2,543,014) $ 4,688,569 $ (453,860) City of Chula Vista For the year ended June 30, 2012 Proprietary Funds Statement of Cash Flows See accompanying Notes to
Basic Financial Statements. 42
FIDUCIARY FUND FINANCIAL STATEMENTS Agency Fund – This 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. Successor Agency to the Chula Vista Redevelopment Agency Private Purpose Trust Fund – This fund is used to account for monies received from the San Diego County Auditor
Controller for the repayment of the enforceable obligations of the former Chula Vista Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an
approved Recognized Payment Obligation Schedule (ROPS). 43
Successor Agency to the Chula Vista Redevelopment Agency Agency Private-purpose Funds Trust Fund ASSETS Cash and investments $ 7,809,301 $ 16,205,862 Receivables: Interest -16,481 Loans
-179,961 Other 1 9,787 257,769 Restricted cash and investments 72,918,839 5,656,126 Land -9,502,300 Buildings, net -1,275,375 Total assets $ 80,747,927 33,093,874 LIABILITIES Accounts
payable $ 2,721 5,722,108 Advances from other funds -49,418 Deferred revenue -430,977 Long-term debt -58,999,095 Due to bondholders 8 0,712,162 -Refundable deposits 33,044 -Total liabilities
$ 80,747,927 65,201,598 NET ASSETS Held in trust (32,107,724) Total net assets $ (32,107,724) City of Chula Vista June 30, 2012 Fiduciary Funds Statement of Fiduciary Net Assets See
accompanying Notes to Basic Financial Statements. 44
Successor Agency to the Chula Vista Redevelopment Agency Private-purpose Trust Fund ADDITIONS: Property taxes $ 3,233,347 Investment income 132,515 Miscellaneous income 742,620 Total
additions 4,108,482 DEDUCTIONS: Dissolution payments to San Diego County 5,529,373 Enforceable Obligations 2,345,241 Depreciation 19,885 Administrative expenses 373,538 Total deductions
8,268,037 Change in net assets (4,159,555) NET ASSETS: Beginning of period -Transfer of Operations from the Dissolved Chula Vista Redevelopment Agency (Note 16) (28,677,153) Extraordinary
gain from dissolution (Note 16) 728,984 End of period $ (32,107,724) City of Chula Vista For the five months period ended June 30, 2012 Fiduciary Funds Statement of Changes in Fiduciary
Net Assets See accompanying Notes to Basic Financial Statements. 45
46
City of Chula Vista Notes to Basic Financial Statements For the year ended June 30, 2012 47 NOTE DESCRIPTION PAGE 1 Summary of Significant Accounting Policies 48 2 Cash, Cash Equivalents
and Investments 59 3 Receivables 65 4 Interfund Transactions 71 5 Capital Assets 74 6 Long-Term Debt 76 7 Unearned/Deferred Revenue 89 8 Compensated Absences 90 9 Other Required Fund
Disclosures 91 10 Self-Insurance Accrued Liabilities 91 11 Pension Plans 92 12 Other Postemployment Benefits 95 13 Pollution Remediation Obligations 98 14 Commitments and Contingencies
99 15 Classification of Fund Balances 100 16 Recent Changes in Legislation Affecting California Redevelopment Agencies 101
City of Chula Vista Notes to Basic Financial Statements For the year ended June 30, 2012 48 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 significant 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
the 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 Redevelopment Agency of the City of Chula Vista (the
“RDA”) The RDA 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 RDA has been included in the accompanying basic financial statements since the City Council acts as the RDA’s governing board and exerts significant
influence over its operations. The RDA’s operations are governmental in nature and, as such, have been included in the special revenue, capital projects, and debt service funds. The
RDA was dissolved due to the passage of Assembly Bill x1 26 which became effective on October 1, 2011. In accordance with Health and Safety code 34175(b), on February 1, 2012, all assets
liabilities and fund balance of the RDA were transferred to the Successor Agency to the Redevelopment Agency of the City of Chula Vista (“Successor Agency”). The financial statements
of the RDA can be obtained at the Finance Department or online at the City’s website at www.ci.chula-vista.ca.us.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 49 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 Authority (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 City’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 selfbalancing 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 in accordance with legal and managerial requirements.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation,
Measurement Focus and Basis of Accounting 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. These 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. Certain types of transactions are reported as program revenues for the City in three categories: ? Charges
for services ? Operating grants and contributions ? Capital grants and contributions Certain eliminations have been made 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 and due from other funds
? Advances to and advances from other funds ? Transfers in and transfers out Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are 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. Governments
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 privatesector guidance.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation,
Measurement Focus and Basis of Accounting 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. 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 (generally 60 days 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, franchise fees, special assessments, intergovernmental
revenues, other taxes, state and federal grants, 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation,
Measurement Focus and Basis of Accounting, Continued Governmental Fund Financial Statements, Continued The Low and Moderate Income Housing Successor Special Revenue Fund – This fund
was established pursuant to Health and Safety Code Section 34176(b)(2) and is used to fund low and moderate income housing and related expenditures. The Low and Moderate Income Housing
Successor Fund was created due to the dissolution of the Chula Vista RDA. In accordance with Health and Safety Code Section 34176(b)(2), on February 1, 2012, all rights, powers, assets,
liabilities, duties and obligations of the Low and Moderate Income Housing Fund were transferred to the Low and Moderate Income Housing Successor Agency special revenue fund. City Debt
Service 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 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. 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. A 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 governmentwide financial statements. The City’s internal
service funds include three individual funds which provide services directly to other City funds. These areas of service include Fleet and Vehicle Maintenance, Information Technology
Replacement and Workers Compensation. 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation,
Measurement Focus and Basis of Accounting, Continued Proprietary Fund Financial Statements, Continued 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 are reported as non-operating expenses. The City reports the following major proprietary funds: Sewer Enterprise Fund – This fund consists of several
subfunds 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. 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 facility participation fee received from owner or person 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 shall be 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 Sewer Facility Replacement 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. The Internal Service Funds
are funds used to charge other City funds for fleet management, technology replacement services and workers compensation.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation,
Measurement Focus and Basis of Accounting, Continued Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Assets and a Statement of Changes
in Fiduciary Net Assets. The City’s fiduciary funds represent agency funds and private purpose trust funds. Both agency funds and the private purpose trust funds are accounted for on
the full accrual basis of accounting. Fiduciary fund types are accounted for according to the nature of the fund. The City’s agency funds are 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. The City’s private purpose trust fund is a fiduciary fund type used
by the City to report assets, liabilities and activities of the Successor Agency to the Chula Vista Redevelopment Agency. Its results of operations are presented on the Statement of
Changes of Fiduciary Net Assets. The Successor Agency was created by the City of Chula Vista City Council (City Council) in August 2011. It was established pursuant to Assembly Bill
x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved RDA. The governing body of the Successor Agency is comprised of the members of the Oversight Board selected
by the County of San Diego, City of Chula Vista, school and special districts. The Successor Agency has been included in the accompanying basic financial statements as a private purpose
trust fund. 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. 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. 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 gain on investments amounted to $673,959 for the fiscal year ended June 30, 2012.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Cash, Cash Equivalents
and Investments, Continued 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. 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, Sundry Grants Special Revenue Fund and Sewer 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. G. Capital Assets Capital assets are valued at historical cost or estimated historical
cost if actual historical cost was not available. Donated capital 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 $20,000 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
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Capital Assets, Continued
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewer, and park lands. Each major infrastructure system can
be divided into subsystems. For example, the street system can be subdivided into pavement, curbs 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 for infrastructure reporting.
H. Compensated Absences Government-Wide Financial Statements For governmental and business-type activities, compensated absences are recorded as expenses and liabilities as incurred.
Fund Financial Statements In 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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 years 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. K. Public Facilities Financing 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 In governmental-wide and proprietary fund financial statements,
net assets are categorized as follows: Invested in Capital Assets, Net of 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 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 expenses 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, then unrestricted net assets as they are needed.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Fund Balances In 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. Restricted – 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 governments, 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 as in by passage of legislation, resolution, ordinance or by taking action via minute order. The City Council
is considered the highest authority for the City. Assigned – 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. Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. When expenditures 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. In November 2009, the City Council adopted a resolution amending the General Fund Reserve Policy to include the following distinct reserve categories: General Fund Operating
Reserve, minimum 15%, Economic Contingency Reserve, minimum 5%, and Catastrophic Event Reserves, 3%. The General Operating Reserve represents unrestricted resources available for appropriation
by the City Council to address extraordinary needs of an emergency nature. 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, etc. The Catastrophic Event Reserves are monies set aside to fund unanticipated
expense related to a major disaster in the City and are associated with the City’s Disaster Preparedness Program.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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, 2012: Fiduciary Funds Governmental Business-Type Statement of Activities Activities Total Net Assets Total Cash and investments $ 124,073,658 $ 67,691,717
$ 191,765,375 $ 24,015,163 $ 215,780,538 Restricted cash and investments: Held by City 4,014,986 -4,014,986 -4,014,986 Held by fiscal agents 10,119,913 -10,119,913 78,574,965 88,694,878
Total restricted cash and investments 14,134,899 -14,134,899 78,574,965 92,709,864 Total cash and investments $ 138,208,557 $ 67,691,717 $ 205,900,274 $ 102,590,128 $ 308,490,402 Government-Wide
Statement of Net Assets Cash, cash equivalents, and investments consisted of the following at June 30, 2012: Petty cash $ 6,050 Deposits with financial institution 15,819,789 Investments
203,969,685 Investments held by bond trustee 88,694,878-Total cash and investments $ 308,490,402 A. Cash Deposits The carrying amount of the City’s cash deposits were $15,819,789 at
June 30, 2012. Bank balances before reconciling items were $16,883,095 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 60 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued A. Cash Deposits, Continued
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 City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 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, except
for 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 various 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, 2012, the City had the following investments and maturities: Investment Type Fair Value 1 year or fewer 1 to 2 years 2-3 years 3-4 years 4-5 years Over 5 years LAIF $
49,946,605 $ 49,946,605 $ -$ -$ -$ -$ -Time Deposits 310,000 310,000 -----San Diego County Investment Pool 39,087,365 39,087,365 -----CalTrust Short-Term Fund 1,012,600 1,012,600 -----Corporate
Bonds -------Federal Home Loan Bank 11,042,250 2,008,620 3,000,060 3,033,450 3,000,120 --Federal National Mortgage Association 35,084,340 --6,010,560 13,015,160 16,058,620 -Federal Home
Loan Mortgage Corporation 35,411,946 --17,363,541 12,030,435 6,017,970 -Federal Farm Credit Bank 32,074,580 --16,032,460 7,011,790 9,030,330 -Held by bond trustee: U.S. Treasury 2,066,960
2,066,960 -----Investment Agreements 14,749,265 983,435 ----13,765,830 Mutual Funds 71,878,653 71,878,653 -----Total $ 292,664,563 $ 167,294,237 $ 3,000,060 $ 42,440,011 $ 35,057,505
$ 31,106,920 $ 13,765,830 Investment Maturities
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 61 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued B. Investments, Continued
Investments Authorized by the California Government Code and 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 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 Investment Type Maturity Portfolio* One Issuer Bankers' Acceptance 180 days 40% 30% Negotiable Certificates of Deposits 5 years 30% 5%
Commercial Paper 270 days 25% 10% State and Local Agency Bond Issues 5 years None 10% U.S. Treasury Obligations 5 years None None U.S. Agency Securitites 5 years None None Repurchase
Agreement 90 days None 10% Reverse-Purchase Agreements 92 days 20% 10% Medium-Term Corporate Notes 5 years 30% 10% Time Certificates of Deposits 3 years None 10% Money Market Funds N/A
15% 10% Local Agency Investment Fund (LAIF) N/A None $50 Million** Investment Trust of California (CalTrust) N/A None 10%
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 62 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued B. Investments, Continued
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 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 None
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 63 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued 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, 2012, the City’s pooled cash and investments had the following maturities: Maturity Percentage
of Investment Less than one year 45% One to two years 1% Two to three years 21% Three to four years 16% Four to five years 15% The weighted average maturity of the portfolio was 2.5
years. 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 City money, a bank, savings association, federal association, or federally insured industrial
loan company shall have 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. The City’s investments are rated by the nationally recognized statistical rating
organizations as follows: Standard Fair Value Moody's & Poor's LAIF $ 49,946,605 Not Rated Not Rated Time Deposits 310,000 Not Rated Not Rated San Diego County Investment Pool 39,087,365
Not Rated AAAf CalTrust Short-Term Fund 1,012,600 Not Rated Aaf Federal Home Loan Bank 11,042,250 Aaa AAA Federal National Mortgage Association 35,084,340 Aaa AAA Federal Home Loan Mortgage
Corporation 35,411,946 Aaa AAA Federal Farm Credit Bank 32,074,580 Aaa AAA $ 203,969,685 Investment Type
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 64 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risk Disclosures, Continued
Custodial Credit Risk 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 party. 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 City’s investment policy
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 City’s investments are as follows: Fair Value Federal Home Loan Bank $ 11,042,250 Federal National Mortgage Association 35,084,340 Federal Home Home Loan Mortgage Corporation
35,411,946 Federal Farm Credit Bank Federal Agency Securities 32,074,580 Issuer Investment Type Federal Agency Securities Federal Agency Securities Federal Agency Securities D. Investments
in Local 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 in LAIF at June 30, 2012 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 as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2012, the City had $49,946,605 invested in
LAIF, which had invested 3.47% of the pool investment funds in Medium-Term and Short-Term Structured Notes and Asset-Backed Securities.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 65 3. RECEIVABLES A. Accounts Receivable At June 30, 2012, the City had the following
accounts receivable: Governmental Business-Type Activities Activities Total Storm drain fees $ 69,586 $ 4,792,131 $ 4,861,717 Sewer service fees 143,543 -143,543 Staff time reimbursement
1,764,857 329,668 2,094,525 Parking meter 39,881 -39,881 Rentals 73,390 -73,390 Permit and other fees 509,190 -509,190 Fines and penalties 65,213 -65,213 Transit -1,061 1,061 Miscellaneous
144,342 -144,342 Total $ 2,810,002 $ 5,122,860 $ 7,932,862 B. Taxes Receivable At June 30, 2012, the City had the following taxes receivable: Governmental Activities Sales Tax $ 6,616,790
Highway Users Tax 685,518 Property Tax 386,088 Utilities Users Tax 983,748 Transient Occupancy Tax 332,519 Franchise Fee Tax 1,397,144 Total $ 10,401,807
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 66 3. RECEIVABLES, Continued C. Loans Receivable At June 30, 2012, the City had the
following loans receivable, including principal and accrued interest: Principal Deferred Interest Total South Bay Community Services $ 3,880,291 $ 2,105,823 $ 5,986,114 Heritage (South
Bay Community Villas L.P.) 4,400,000 1,393,710 5,793,710 Girls and Boys Club Construction Loan 81,250 -81,250 Rancho Vista Housing (Chelsea Investment Corporation) 1,500,000 353,220
1,853,220 St. Regis Park (Chelsea Investment Corp) 1,387,152 1,000,644 2,387,796 Chula Vista Rehabilitation CHIP Loans 2,066,670 159,802 2,226,472 Park Village Apts (Civic Center Barrio
Housing Corporation) 197,933 -197,933 Mobile Home Assistance Programs 42,382 -42,382 Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000 1,237,937 6,917,937 Main Plaza
(Alpha III Development Inc.) 1,800,000 390,813 2,190,813 Seniors on Broadway (MAAC Project) 3,511,194 647,786 4,158,980 The Landings (Chelsea Investment Corp) 5,500,000 368,490 5,868,490
First Time Home Buyers Program 1,375,503 -1,375,503 Neighborhood Stabilization First Time Home Buyer Program 531,000 -531,000 NSP Rental Housing Program 984,200 66,683 1,050,883 Community
Energy Retrofit Program 84,286 -84,286 Total $ 33,021,861 $ 7,724,908 $ 40,746,769 Governmental Activities South Bay Community Services In 1998, the RDA 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 RDA. Deeds of trust and assignments of rent 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 Low & Moderate Income Housing Successor Special Revenue
Fund. Interest accrues annually on the unpaid balance with rates ranging from 3% to 6%. At June 30, 2012, the outstanding balance of the loan was $5,986,114, which included a deferred
interest accrual of $2,105,823.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 67 3. RECEIVABLES, Continued C. Loans Receivable, Continued Heritage (South Bay Community
Villas, L.P.) In 2002, the RDA 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 RDA’s 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 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 developer fees, and reasonable operating expenses have been paid. Fund balance has been reserved in the
Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2012, the outstanding balance of the loan was $5,793,710 which included a deferred interest accrual of $1,393,710.
Girls and Boys 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, 2012, the outstanding balance of the loan was $81,250.
Rancho Vista Housing (Chelsea Investment Corporation) In 2000, the City and RDA 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 a deed of trust. The outstanding principal on the loan is to be repaid over fiftyfive (55) years
and interest accrues at the simple interest rate of three (3%) percent per annum on unpaid principal. Payment of principal and interest, or portions thereof, on the loan is made on an
an annual basis, out of a fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2012, the outstanding balance of the loan was $1,853,220 which included a
deferred interest accrual of $353,220. St. Regis Park (Chelsea Investment Corporation) In 2000, the RDA 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, 2012, the outstanding balance of
the loan was $2,387,796 which included a deferred interest accrual of $1,000,644.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 68 3. RECEIVABLES, Continued C. Loans Receivable, Continued Chula Vista Rehabilitation
CHIP Loans The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the direct control of the RDA. 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, Housing Program Special Revenue Fund and in the Low & Moderate Housing Successor Special Revenue Fund. At June 30, 2012, the outstanding
balance of the loan was $2,226,472 which included a deferred interest accrual of $159,802. Park Village Apartments (Civic Center Barrio Housing Corporation) In 1991, the RDA 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 Low and Moderate Income
Housing Successor Special Revenue Fund. At June 30, 2012, the outstanding balance of the loan was $197,933. Mobile Home Assistance Programs The RDA entered into agreements with eligible
residents of the Orange Tree Mobile home Park, whereby the RDA 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 Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2012, the outstanding balance of the loan was $42,382. Los Vecinos (Wakeland
Housing and Development Corporation) In 2008, the RDA 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 Low & Moderate Income Housing Successor 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 and 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 is
due and payable. The improvements were placed in service on February 7, 2008. At June 30, 2012, the outstanding balance of the loan was $6,917,937 which included a deferred interest
accrual of $1,237,937.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 69 3. RECEIVABLES, Continued C. Loans Receivable, Continued Main Plaza (Alpha III
Development Inc.) In 2003, the RDA entered into a loan agreement with Main Plaza, LP to assist in acquiring and improving certain real property for occupancy by very low, 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 RDA’s issuance of the Certificate of
Completion, which is in 2061. At June 30, 2012, the outstanding balance of the loan was $2,190,813 which included a deferred interest accrual of $390,813. Seniors on Broadway (MAAC Project)
The RDA entered into a loan agreement with Seniors on Broadway, Limited Partnership to assist in acquiring and improving certain real property for occupancy by very low, 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 RDA’s issuance of the Certificate of
Completion. At June 30, 2012, the outstanding balance of the loan was $4,158,980 which included a deferred interest accrual of $647,786. The Landings (Chelsea Investment Corporation)
The RDA 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, 2012, the outstanding balance of the loan was $5,868,490 which included a deferred
interest accrual of $368,490. First Time Home Buyers 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 and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants Special Revenue Fund. At June
30, 2012, the outstanding balance of the loan was $1,375,503.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 70 3. RECEIVABLES, Continued C. Loans Receivable, Continued Neighborhood Stabilization
First Time Home Buyers program The Chula Vista Neighborhood Stabilization First-Time Homebuyer Program and Neighborhood Stabilization Resale Program 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, 2012, the outstanding balance
of the loan was $531,000. NSP Rental Housing program The RDA entered into a loan agreement 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 a deed of trust. The outstanding principal and interest amount of the loan will be repaid over fifty-five
(55) years and shall accrue 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, 2012, the outstanding balance of the loan was
$1,050,883 which included deferred interest accrual of $66,683. Community Retrofit 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 except for loans funded by General fund. Fund balance
has been reserved in the General Fund and Sundry Grants Special Revenue Fund. At June 30, 2012, the outstanding balances of the loans were $11,624 and $72,662, respectively.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 71 4. INTERFUND TRANSACTIONS A. Due To/Due From Other Funds As of June 30, 2012, balances
were as follows: Sundry Grants Nonmajor Special Revenue Governmental Due From Other Funds Fund Funds Total General Fund $ 1,745,331 $ 1,261,331 $ 3,006,662 Nonmajor Governmental Funds
-72,231 72,231 Total $ 1,745,331 $ 1,333,562 $ 3,078,893 Due To Other Funds The amounts of due to and due from for all funds represent one day loans which were made to cover negative
cash balances at year end due to reimbursements not being received as of June 30, 2012. B. Long-Term Advances As of June 30, 2012, balances were as follows: City Nonmajor Debt Service
Enterprise Advances To Other Funds Fund Fund Total General Fund $ 1,581,814 $ -$ 1,581,814 Developer Impact Capital Projects Fund 11,404,439 -11,404,439 Park Acquisition Development
Fund 10,042,942 -10,042,942 Sewer Enterprise Fund 14,293,954 4,102,371 18,396,325 Total $ 37,323,149 $ 4,102,371 $ 41,425,520 Advances From Other Funds City Council authorized loans
to Public Facilities DIF for $12,950,160 and Western DIF for $36,094. 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 2013 at an interest rate of 0.56% based on the pooled investment rate.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 72 4. INTERFUND TRANSACTIONS, Continued B. Long-Term Advances, Continued City Council
authorized a 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
and $310,000 to acquire the 1.89 acre site located at Auto Park Place, Chula Vista. 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 $10,042,942 at June 30, 2012. The City Council authorized loans with indefinite terms from the Trunk Sewer fund to Salt Creek for $16,848,381, to
the Storm Drain fund for $744,612, and $803,331 from the Sewer Facility fund for capital improvement projects. C. Transfers In/Out Transfers for the year ended June 30, 2012, were as
follows: Park Sundry Grants Acquisition City Development Non-major Nonmajor Governmental General Special Development Debt Impact Governmental Enterprise Activities Transfers Out Fund
Revenue Fund Fund Service Fund Fund Funds Funds Internal Service Total General Fund $ -$ 157,330 $ -$ -$ -$ 9,772,037 $ 471,062 $ 2,990,161 $ 13,390,590 Sundry Grants Special Revenue
Fund 252,782 ----796,866 --1,049,648 City Debt Service Fund --310,000 -----310,000 Development Impact Fund ---152,894 -51,041 --203,935 Nonmajor Governmental Fund 5,192,892 --100,002
241,006 12,078,462 72,075 -17,684,437 Sewer Enterprise Fund 3,142,406 ----14,929 --3,157,335 Nonmajor Enterprise Funds 1,262,265 --250,000 -68,727 --1,580,992 Governmental Activities
Internal Service -----57,147 --57,147 Total $ 9,850,345 $ 157,330 $ 310,000 $ 502,896 $ 241,006 $ 22,839,209 $ 543,137 $ 2,990,161 $ 37,434,084 Transfers In General Fund -Operating support
to reimburse the General Fund for City staff services and equipment. Total amount of reimbursement was $9,850,343. Sundry Grants Special Revenue Fund– transferring the General Fund’s
matching contribution to the federal grants in the amount of $157,330. Development Impact Fund – Reimbursing capital improvement project expenditures in the amount of $241,006. Park
Acquisition Development Fund – Funding the acquisition of 1.89 acre site located at Auto Park Place, Chula Vista and borrowing the funds in the amount of $310,000 from the Eastern PAD
to the Western PAD.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 73 4. INTERFUND TRANSACTIONS, Continued C. Transfers In/Out, Continued City Debt Service
-Funding debt service funds for repayment of various long-term obligations amounted to $502,896. Non-major Governmental Funds -Funding debt service funds for repayment of various long-term
obligations and to fund various capital improvement projects amounted to $18,349,032. Other transfers were for operating support, staff services and capital improvement projects in the
amount of $9,000 from Home Program, $42,000 from CDBG, and $92,000 from Low and Moderate Income Housing to Chula Vista Housing Authority, $4,250,000 from Chula Vista Housing Authority
to Low and Moderate Income Housing, $27,543 and $912 from Other Transportation Program to TransNet and TDA respectively, $24,750 from Transit to Other Transportation Program, $43,977
from Development Services to Transportation Equity Program and $18,622,925 from Successor Agency to Redevelopment Agency Debt Service due to the dissolution of the latter.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 74 5. CAPITAL ASSETS Government-Wide Financial Statements A summary of changes in
governmental activities capital assets for the year ended June 30, 2012 is as follows: Transferred to Balance CIP Successor Balance July 1, 2011 Additions Deletions Transfers Agency
June 30, 2012 Capital assets, not being depreciated: Land $ 83,775,771 $ 940,000 $ -$ -$ (9,502,300) $ 75,213,471 Construction in progress 23,869,250 8,190,320 -(14,980,470) -17,079,100
Total capital assets, not being depreciated 107,645,021 9,130,320 -(14,980,470) (9,502,300) 92,292,571 Capital assets, being depreciated: Buildings 213,831,082 --257,638 (2,386,218)
211,702,502 Improvements other than buildings 126,115,525 --3,454,216 -129,569,741 Machinery and equipment 34,944,724 1,646,655 (8,709,986) --27,881,393 Infrastructure 636,448,076 --11,268,616
-647,716,692 Subtotal 1,011,339,407 1,646,655 (8,709,986) 14,980,470 (2,386,218) 1,016,870,328 Less accumulated depreciation Buildings (40,214,374) (4,260,428) --1,090,958 (43,383,844)
Improvements other than buildings (35,783,406) (2,522,007) ---(38,305,413) Machinery and equipment (30,764,223) (981,341) 7,626,320 --(24,119,244) Infrastructure (202,748,694) (17,679,566)
---(220,428,260) Subtotal (309,510,697) (25,443,342) 7,626,320 -1,090,958 (326,236,761) Total capital assets, being depreciated 701,828,710 (23,796,687) (1,083,666) 14,980,470 (1,295,260)
690,633,567 Total capital assets, net $ 809,473,731 $ (14,666,367) $ (1,083,666) $ -$ (10,797,560) $ 782,926,138 During the fiscal year ended June 30, 2012, the Redevelopment Agency
(RDA) was dissolved due to the passage of ABX1 26. The RDA’s capital assets transferred to the Successor Agency and were not included in the Government-Wide Statement of Net Assets.
Governmental activities depreciation expense for capital assets for the year ended June 30, 2012 is allocated as follows: General government $ 1,200,854 Public safety 2,237,512 Public
works 18,868,703 Parks and recreation 2,650,595 Library 215,340 Internal service 270,338 Total depreciation expense $ 25,443,342
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 75 5. CAPITAL ASSETS, Continued Government-Wide Financial Statements, Continued A
summary of changes in business-type activities capital assets for the year ended June 30, 2012 is as follows: Balance CIP Balance July 1, 2011 Additions Deletions Transfers June 30,
2012 Capital assets, not being depreciated: Construction in progress $ 2,702,040 $ 239,718 $ -$ (1,092,083) $ 1,849,675 Total capital assets, not being depreciated 2,702,040 239,718
-(1,092,083) 1,849,675 Capital assets, being depreciated: Machinery and equipment 13,620,272 -(612,706) -13,007,566 Infrastructure 226,651,065 -(24,865) 1,092,083 227,718,283 Subtotal
240,271,337 -(637,571) 1,092,083 240,725,849 Less accumulated depreciation Machinery and equipment (10,223,057) (1,219,840) 499,071 -(10,943,826) Infrastructure (86,199,735) (5,183,644)
--(91,383,379) Subtotal (96,422,792) (6,403,484) 499,071 -(102,327,205) Total capital assets, being depreciated 143,848,545 (6,403,484) (138,500) 1,092,083 138,398,644 Total capital
assets, net $ 146,550,585 $ (6,163,766) $ (138,500) $ -$ 140,248,319 Depreciation expense for business-type activities for the year ended June 30, 2012 is allocated as follows: Sewer
$ 5,499,109 Transit 844,375 Sewer DIFS 60,000 Total depreciation expense $ 6,403,484
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 76 6. LONG-TERM DEBT Governmental Activities Long-Term Debt A summary of changes in
governmental activities long-term debt for the year ended June 30, 2012 is as follows: Transferred Balance Debt Debt to RDA Balance Due within Due in More June 30, 2011 Issued Retired
Succesor Agency (1) June 30, 2012 One Year Than One Year Tax Allocation Bonds $ 43,985,000 $ -$ (980,000) $ (43,005,000) $ -$ -$ -Pension Obligation Bonds 2,655,000 -(2,655,000) ----Certificate
of Participation 136,060,000 -(3,770,000) -132,290,000 3,915,000 128,375,000 ERAF Loan 885,000 -(87,500) (797,500) ---Section 108 Loan 8,911,000 -(317,000) -8,594,000 332,000 8,262,000
Notes Payable 933,615 3,963,104 (201,619) -4,695,100 461,638 4,233,462 Capital Leases 1,097,304 -(412,037) -685,267 405,354 279,913 Bond Premium 27,169 -(1,181) -25,988 -25,988 Bond
Discount (1,774,742) -66,373 876,425 (831,944) -(831,944) Total $ 192,779,346 $ 3,963,104 $ (8,357,964) $ (42,926,075) $ 145,458,411 $ 5,113,992 $ 140,344,419 (1) See note 16 that describes
transfer of debt to RDA Successor Agency Classification A. Tax Allocation Bonds Transferred Balance Debt Debt to RDA Balance June 30, 2011 Issued Retired Succesor Agency (1) June 30,
2012 2006 Senior Tax Allocation Refunding Bonds, Series A $ 11,600,000 $ -$ (520,000) $ (11,080,000) $ -2006 Subordinate Tax Allocation Refunding Bonds, Series B 10,760,000 -(460,000)
(10,300,000) -2008 Tax Allocation Refunding Bonds 21,625,000 --(21,625,000) -Total $ 43,985,000 $ -$ (980,000) $ (43,005,000) $ -(1) See note 16 that describes transfer of debt to RDA
Successor Agency
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 77 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
A. Tax Allocation Bonds, Continued 2006 Senior Tax Allocation Refunding Bonds, Series A In July 2006, the RDA issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount
of $13,435,000 to refinance the RDA’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 Moderate 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 RDA and other funds held under the indenture. The principal balance of $11,080,000 was transferred to the Successor Agency on February 1, 2012.
2006 Subordinate Tax Allocation Refunding Bonds, Series B In July 2006, the RDA issued $12,325,000 2006 Subordinate Tax Allocation Refunding Bonds, Series B to refinance the RDA’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 Moderate 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 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 principal balance of $10,300,000 was transferred to the Successor Agency on February 1, 2012. 2008 Tax Allocation
Refunding Bonds In July 2008, the RDA issued the 2008 Tax Allocation Refunding Bonds in the amount of $21,625,000 to refinance the RDA’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 principal balance of $21,625,000 was transferred to the Successor Agency on February 1, 2012.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 78 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
A. Tax Allocation Bonds, Continued Pledged Revenues The Successor Agency has pledged tax revenues to the repayment of the RDA’s debts transferred to it on February 1, 2012 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 RDA’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 fiscal year 2012 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 the Tax Allocation Bonds are expected to require 25% of tax increment revenues.
B. Pension Obligation Bonds Balance Debt Debt Balance July 1, 2011 Issued Retired June 30, 2012 POB 1994 Series $ 2,655,000 $ -$ (2,655,000) $ -Total $ 2,655,000 $ -$ (2,655,000) $ -1994
Pension Obligation 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 which matured in 2006. The bonds are not limited as to payment by any special source of funds of the City. The accreted value
of the Pension Obligation Bonds at June 30, 2012 was $0.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 79 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
C. Certificates of Participation Balance Debt Debt Balance Due within Due in More June 30, 2011 Issued Retired June 30, 2012 One Year Than One Year 2002 COP Police Facility $ 52,790,000
$ -$ (1,400,000) $ 51,390,000 $ 1,460,000 $ 49,930,000 2003 Refunding COP 2,240,000 -(990,000) 1,250,000 1,030,000 220,000 2004 COP Civic Ctr Ph 1 33,180,000 -(885,000) 32,295,000 915,000
31,380,000 2006 COP Civic Ctr Ph 2 18,495,000 -(495,000) 18,000,000 510,000 17,490,000 2010 Refunding COP Corp Yard 29,355,000 --29,355,000 -29,355,000 Total $ 136,060,000 $ -$ (3,770,000)
$ 132,290,000 $ 3,915,000 $ 128,375,000 Classification 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 certificates mature in 2032 and principal is payable on August 1 each year commencing August 1, 2005. As of June 30, 2012 the outstanding balance
is $51,390,000. The annual debt service requirements for the 2002 Certificates of Participation outstanding at June 30, 2012 are as follows: Year Ending June 30, Principal Interest Total
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 1,735,000 2,186,706 3,921,706 2018-2022
10,020,000 9,616,841 19,636,841 2023-2027 12,890,000 6,807,250 19,697,250 2028-2032 16,650,000 3,133,750 19,783,750 2033 3,870,000 96,750 3,966,750 Total $ 51,390,000 $ 31,288,718 $
82,678,718
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 80 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
C. Certificates of Participation, Continued 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, 2012 the outstanding balance is $1,250,000. The annual debt service requirements for the 2003 Refunding Certificates of Participation outstanding at June 30, 2012 are as follows:
Year Ending June 30, Principal Interest Total 2013 $ 1,030,000 $ 24,438 $ 1,054,438 2014 220,000 3,850 223,850 Total $ 1,250,000 $ 28,288 $ 1,278,288 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, 2012 the outstanding balance is $32,295,000.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 81 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
C. Certificates of Participation, Continued 2004 Civic Center Project Phase I COP, Continued The annual debt service requirements for the 2004 Certificates of Participation Civic Center
Project Phase I outstanding at June 30, 2012 are as follows: Year Ending June 30, Principal Interest Total 2013 $ 915,000 $ 1,476,386 $ 2,391,386 2014 950,000 1,442,074 2,392,074 2015
985,000 1,406,449 2,391,449 2016 1,025,000 1,369,511 2,394,511 2017 1,065,000 1,328,511 2,393,511 2018-2022 6,025,000 5,943,970 11,968,970 2023-2027 7,470,000 4,493,388 11,963,388 2028-2032
9,410,000 2,555,275 11,965,275 2033-2034 4,450,000 336,500 4,786,500 Total $ 32,295,000 $ 20,352,064 $ 52,647,064 2006 Civic Center Project Phase II COP 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, 2012 the outstanding balance is $18,000,000.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 82 6. LONG-TERM DEBT, Continued Governmental Activities 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, 2012 are as follows: Year Ending June 30, Principal Interest Total 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 590,000 679,584 1,269,584 2018-2022 3,315,000 3,034,506 6,349,506 2023-2027 3,895,000 2,289,984 6,184,984 2028-2032 4,075,000 1,447,813
5,522,813 2033-2036 3,965,000 456,074 4,421,074 Total $ 18,000,000 $ 10,828,856 $ 28,828,856 2010 Refunding COP Corp Yard 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 Participation 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, 2012 the outstanding balance is $ 29,355,000.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 83 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
C. Certificates of Participation, Continued 2010 Refunding COP Corp Yard, Continued The annual debt service requirements for the 2010 Refunding Certificates of Participation Corp Yard
outstanding at June 30, 2012 are as follows: Year Ending June 30, Principal Interest Total 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 1,130,000 1,364,344 2,494,344 2018-2022 6,500,000 5,957,356 12,457,356 2023-2027 8,275,000 4,178,038 12,453,038 2028-2032 9,295,000
1,713,250 11,008,250 2033 1,000,000 55,000 1,055,000 Total $ 29,355,000 $ 19,061,325 $ 48,416,325 D. ERAF Loan Transferred Balance Debt Debt to RDA Balance June 30, 2011 Issued Retired
Succesor Agency (1) June 30, 2012 2005 ERAF $ 350,000 $ -$ (40,000) $ (310,000) $ -2006 ERAF 535,000 -(47,500) (487,500) -Total $ 885,000 $ -$ (87,500) $ (797,500) $ -(1) See note 16
that describes transfer of debt to RDA Successor Agency 2005 ERAF In May 2005, the RDA 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 principal balance of $310,000 was transferred to the Successor Agency on February 1, 2012.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 84 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
D. ERAF Loan, Continued 2006 ERAF In May 2006, the RDA participated in a $7930,000 Loan Agreement with the California Statewide Communities Development Authority to finance their 2006
share of ERAF Payments to the County Auditor. The principal balance of $487,500 was transferred to the Successor Agency on February 1, 2012. E. Section 108 Loan Balance Debt Debt Balance
Due within Due in More June 30, 2011 Issued Retired June 30, 2012 One Year Than One Year Section 108 Loan $ 8,911,000 $ -$ (317,000) $ 8,594,000 $ 332,000 $ 8,262,000 Total $ 8,911,000
$ -$ (317,000) $ 8,594,000 $ 332,000 $ 8,262,000 Classification 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 20 years, with interest payments beginning with fiscal year 2009. As of June 30, 2012, the outstanding balance is $8,594,000. The annual debt service
payments are as follows: Year Ending June 30, Principal Interest Total 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 404,000 355,858 759,858 2018-2022 2,347,000 1,468,100 3,815,100 2023-2027 2,994,000 793,573 3,787,573 2028-2029 1,416,000 77,476 1,493,476 Total $ 8,594,000 $ 4,278,249
$ 12,872,249
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 85 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
F. Notes Payable Balance Debt Debt Balance Due within Due in More June 30, 2011 Issued Retired June 30, 2012 One Year Than One Year The Adamo-Parking Structure Note $ 124,469 $ -$ (42,289)
$ 82,180 $ 47,523 $ 34,657 California Energy Commission (CEC) Loan #1 809,146 -(148,560) 660,586 154,566 506,020 California Energy Commission (CEC) Loan #2 -1,959,134 -1,959,134 63,789
1,895,345 California Energy Commission (CEC) Loan #3 -1,747,668 -1,747,668 160,223 1,587,445 SDG&E OBF Loan #1 (Parkway Boiler) -85,180 (8,518) 76,662 8,518 68,144 SDG&E OBF Loan #2
(Transit HVAC) -171,122 (2,252) 168,870 27,019 141,851 Total CEC Loans/SDG&E On-Bill Financing 809,146 3,963,104 (159,330) 4,612,920 414,115 4,198,805 Total $ 933,615 $ 3,963,104 $ (201,619)
$ 4,695,100 $ 461,638 $ 4,233,462 Classification The Adamo -Parking Structure Note In January January 1994, the City entered into a loan agreement with a private party in order to purchase
certain land acquisitions and improvements for the ultimate purpose of constructing a three-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, 2012, the outstanding balance is $82,180.
The annual debt service payments are as follows: Year Ending June 30, Principal Interest Total 2013 $ 47,523 $ 5,051 $ 52,574 2014 34,657 1,086 35,743 Total $ 82,180 $ 6,137 $ 88,317
California Energy Commission Loans/SDG&E On-Bill Financing 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, 2012, the outstanding balance is $4,612,920.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 86 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
F. Notes Payable, Continued California Energy Commission Loans/SDG&E On-Bill Financing, Continued The annual debt service requirements are as follows: Year Ending June 30, Principal
Interest Total 2013 $ 414,115 $ 162,629 $ 576,744 2014 486,910 89,836 576,746 2015 498,683 78,062 576,745 2016 510,668 66,077 576,745 2017 346,990 55,032 402,022 2017-2022 1,692,459
185,665 1,878,124 2023-2026 663,095 45,586 708,681 Total $ 4,612,920 $ 682,887 $ 5,295,807 G. Capital Leases Balance Debt Debt Balance Due within Due in More June 30, 2011 Issued Retired
June 30, 2012 One Year Than One Year SD County Regional Comm. System $ 795,641 $ -$ (250,780) $ 544,861 $ 264,948 $ 279,913 Medical Resuscitation Equipment 301,663 -(161,257) 140,406
140,406 -Total $ 1,097,304 $ -$ (412,037) $ 685,267 $ 405,354 $ 279,913 Classification SD County Regional Communication System The City has participated in the San Diego County Regional
Communications 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, 2012, the outstanding balance is $544,861.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 87 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
G. Capital Leases, Continued SD County Regional Communication System, Continued The future minimum lease obligation and the net present value of these minimum lease payments as of June
30, 2012, are as follows: Year Ending June 30, Principal Interest Total 2013 $ 264,948 $ 30,785 $ 295,733 2014 279,913 15,815 295,728 Total $ 544,861 $ 46,600 $ 591,461 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 is 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 future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2012, are as follows: Year Ending June 30, Principal Interest Total
2013 $ 140,406 $ 3,106 $ 143,512 Total $ 140,406 $ 3,106 $ 143,512 The carrying value of assets acquired through capital leases are as follows: Governmental Activities Assets: Machinery
& equipment $ 764,224 Less: Accumulated depreciation (254,742) Total $ 509,482
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 88 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
H. Special Assessment Debt – Non-City Obligations Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured
by liens against the assessed properties. 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, 2012, the special assessment debts outstanding are
as follows: Original Outstanding Amount June 30, 2012 CFD 06-1A Eastlake Woods, Vista, Land Swap $ 39,000,000 $ 33,750,000 CFD 06-1B Eastlake Woods, Vista, Land Swap 7,880,000 6,945,000
CFD 01-2 McMillin Otay Valley Ranch Village 6 10,250,000 8,805,000 CFD 08-I Otay Ranch Village 21,655,000 18,745,000 CFD 07-I Otay Ranch Village II 28,050,000 22,395,000 CFD 12-I McMillin
Otay Ranch Village 7 22,565,000 19,250,000 CFD 2001-1B San Miguel Ranch 2005 Improvement 12,230,000 11,195,000 CFD 13-I McMillin Otay Ranch Village 7 16,620,000 11,445,000 CFD 07-I McMillin
Otay Ranch Village I 16,950,000 14,185,000 2005 Revenue Refunding Bonds 93,930,000 77,710,000 AD 94-I Eastlake Greens Phase II 7,464,474 2,855,000 RAD 2001-1 Refunding Revenue Bonds
Residential 20,445,000 10,605,000 RAD 2001-2 Refunding Revenue Bonds Commercial 9,705,000 1,730,000 Industrial Development Revenue Bonds, 1992 Series A-D 250,000,000 150,000,000 Industrial
Development Revenue Bonds, 1996 Series A-B 98,900,000 98,900,000 Industrial Development Revenue Bonds, 1997 Series A 25,000,000 25,000,000 Industrial Development Revenue Bonds, 2004
2004 Series A-F 251,265,000 251,265,000 Industrial Development Revenue Bonds, 2006 Series A 161,240,000 161,240,000 Total $ 1,093,149,474 $ 926,020,000 I. Multi-Family Housing Bonds
– 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 89 6. LONG-TERM DEBT, Continued Governmental Activities Long-Term Debt, Continued
I. Multi-Family Housing Bonds – Non-City Obligations As of June 30, 2012, the total multifamily housing bonds outstanding are as follows: Original Outstanding Amount June 30, 2012 2000
A Pear Tree Manor Project $ 5,779,000 $ 4,659,000 1999 A Villa Serena Project 5,566,500 5,270,000 2007 A Oxford Terrace Apartments 2,276,000 1,851,000 2007 B Oxford Terrace Apartments
2,363,000 2,363,000 2006 A Teresina Apartment Projects 37,940,000 37,940,000 2007 C The Landing Apartment 16,670,000 5,904,011 Total $ 70,594,500 $ 57,987,011 J. Debt Compliance At June
30, 2012, 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, 2012, unearned revenue was reported as follows: Public Facilities Development Impact Fee Fee Prepayment $ 1,203,496 UTT Wireless 7,277,715 Grants 5,084,701 Total $ 13,565,912
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 90 7. UNEARNED/DEFERRED REVENUE, Continued B. Governmental Fund Financial Statements
At June 30, 2012, deferred revenue was reported as follows: Interest receivable on: Advances to other funds $ 10,760,970 Loans Receivable: South Bay Community Services 4,835,319 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 Invest Corp.) 1,500,000 Alpha III Development (Main Plaza) 1,800,000 The Landings (Chelsea Invest. Corp) 5,500,000 Long-term receivables 11,476,428 Public Facilities DIF 1,203,496
Grants 5,084,701 Total $ 57,139,260 8. COMPENSATED ABSENCES Government-Wide Financial Statements Summary of changes in governmental activities compensated absences for the year ended
June 30, 2012 is as follows: Balance Balance Due within Due in More July 1, 2011 Additions Deletions June 30, 2012 One Year Than One Year Compensated Absences $ 6,797,511 $ 4,827,849
$ (4,972,660) $ 6,652,700 $ 4,000,000 $ 2,652,700 Total $ 6,797,511 $ 4,827,849 $ (4,972,660) $ 6,652,700 $ 4,000,000 $ 2,652,700 Classification The City’s liability for vested and unpaid
compensated absences (accrued vacation) has been accrued and amounts to $6,652,700 at June 30, 2012. 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 funds as the benefits vest and are earned.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 91 8. COMPENSATED ABSENCES, Continued Governmental-Wide Financial Statements, Continued
Compensated absences at June 30, 2012 are obligations of the following funds: Governmental funds $ 6,589,937 Fleet Mangement internal service fund 62,763 $ 6,652,700 9. OTHER REQUIRED
FUND DISCLOSURES A. Deficit Fund Balances At June 30, 2012, the following funds had deficit fund equity: City Debt Service Fund $ (37,323,149) The City Debt Service fund has a deficit
fund balance due to the fund booking its long term advances. The City expects to repay the advances via transfers from other funds. 10. SELF-INSURANCE ACCRUED LIABILITIES 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
San 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 92 10. SELF-INSURANCE ACCRUED LIABILITIES, Continued Annual 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. 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, 2012, there are 160 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 City’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 Year Liability Estimates
Payments End 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 2011-2012 22,432,093 3,372,465 (3,614,694) 22,189,864
The liabilities for claims and judgments typically will be liquidated from the General Fund. 11. PENSION PLANS A. California Public Employees’ Retirement Plan Plan Description 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 93 11. PENSION PLANS, Continued A. California Public Employees’ Retirement Plan, Continued
Funding Policy 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 Chula Vista Employee Association (“CVEA”), 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, 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 actuarially determined rate of 22.702% of annual covered payroll for miscellaneous employees and 26.134% of annual covered payroll for safety
employees for the fiscal year ended June 30, 2012. Readers of this document are advised to to refer directly to the full disclosure of actuarial and funding practices of the multi-employer
CalPERS system, which this agency does not control. CalPERS 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 CalPERS. Annual Pension Cost For fiscal year 2012, the City’s annual pension
cost of $23,996,289 for PERS was equal to the City’s required and actual contributions. The required contribution was determined as part of the June 30, 2010, 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 3.55% to 14.45% for miscellaneous employees and 3.55% to 13.15% 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 Percentage of Net Net Miscellaneous Safety
APC Pension Pension Fiscal Year Employees Employees Total Contributed Obligation Asset 6/30/2010 $ 9,082,303 $ 8,783,315 $ 17,865,618 100% $ -$ 5,601,547 6/30/2011 9,952,829 9,139,398
19,092,227 100% -3,175,108 6/30/2012 12,563,479 11,432,810 23,996,289 100% -246,072 Annual Pension Cost (APC)
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 94 11. PENSION PLANS, Continued A. California Public Employees’ Retirement Plan, Continued
The City’s changes in net pension asset for the year ended June 30, 2012, are as follows: 2012 2011 2010 Annual required contribution $ (21,067,253) $ (16,665,788) $ (15,792,292) Interest
on net pension assets 246,071 434,120 594,803 Adjustment to the annual required contribution (3,175,107) (2,860,559) (2,668,129) Annual pension cost (23,996,289) (19,092,227) (17,865,618)
Contribution made 21,067,253 16,665,788 15,792,292 Decrease in net pension asset (2,929,036) (2,426,439) (2,073,326) Net pension asset, beginning of year 3,175,108 5,601,547 7,674,873
Net pension asset, end of year $ 246,072 $ 3,175,108 $ 5,601,547 The interest rate on the net pension obligation is 7.75%. Most Recent Actuarial Study – Schedule of Funding Progress
Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Assets Accrued Accrued Funded Covered Covered Date Value Liability
Liability Ratio Payroll Payroll Miscellaneous: 6/30/2011 $ 287,943,786 $ 381,582,655 $ 93,638,869 75.5% $ 41,109,611 227.78% Safety: 6/30/2011 $ 273,750,352 $ 319,838,087 $ 46,087,735
85.6% $ 34,000,483 135.55% 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 parttime 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, 2012, the City’s total payroll and covered payroll was $1,355,311. The City made employer contributions of $50,824 (3.75% of current covered payroll), and employees contributed $50,824
(3.75% of current covered payroll).
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 95 12. OTHER POSTEMPLOYMENT BENEFITS B. Defined Contribution Pension Plan, Continued
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 fiscal year 2011, the City entered into an agreement with various bargaining groups
eliminating the subsidized retiree health care rates for employees hired under the Second Tier CalPERS Retirement Plan. The postemployment benefit is a single-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 and June 5, 2008. On December 16, 2008,
the City Council approved a third resolution to pay the employees’ single premium until December 31, 2010 and December 31, 2009 if the employees retired between January 1, 2009 and March
27, 2009 or between March 28, 2009 and June 26, 2009. On July 14, 2009, the City Council approved a fourth resolution granting two years additional service credit for eligible International
Association of Fire Fighters (IAFF) employees only and a limited medical incentive program for safety employees who retire between July 15, 2009 and October 12, 2009. If an employee
takes advantage of the two year additional service credit, the City will pay the premium for the employee only for two calendar years and if the employee had already reached the 30 year
maximum years of service and cannot take advantage of the additional service credit, the City will pay the premium for employee only for four calendar years. Eligibility 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, 2012: Police Fire Miscellaneous Total Eligible active employee 206 116 558 880 Enrolled eligible
retirees 19 9 156 184 The information above does not reflect current retirees that are not yet enrolled in the healthcare plan but are eligible to enroll in the plan at a later date.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 96 12. OTHER POSTEMPLOYMENT BENEFITS, Continued B. Defined Contribution Pension Plan,
Continued Funding Policy 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 retire under the incentive plan. The City is contributing $452 in premium on behalf of one employee who retired under the incentive plan
in fiscal year 2012. Annual Other Postemployment Benefits (OPEB) Cost and Net OPEB Obligations The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based
on the annual required contribution (“ARC”) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 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 any unfunded actuarial liabilities (or funding excess) not to exceed thirty years. 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: 2012 2011
2010 Annual required contribution $ 1,803,000 $ 1,470,000 $ 1,423,000 Interest on net OPEB obligation 151,000 108,000 74,790 Adjustment to the annual required contribution (285,000)
--Net OPEB cost 1,669,000 1,578,000 1,497,790 Contribution made (537,000) (574,000) (702,598) Increase in net OPEB liability 1,132,000 1,004,000 795,192 Net OPEB liability, beginning
of the year 3,553,000 2,549,000 1,753,808 Net OPEB liability, end of year $ 4,685,000 $ 3,553,000 $ 2,549,000 The City’s annual OPEB cost, the percentage of annual OPEB cost contributed
to the plan, and the net OPEB obligation for 2010, 2011 and 2012 were as follows: Percentage of Increase in Net Annual Annual OPEB Net OPEB OPEB Fiscal Year OPEB Cost Cost Contributed
Obligation Obligation 6/30/2010 $ 1,497,790 53% $ 1,115,056 $ 2,549,000 6/30/2011 1,578,000 20% 795,192 3,553,000 6/30/2012 1,669,000 19% 1,132,000 4,685,000
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 97 12. OTHER POSTEMPLOYMENT BENEFITS, Continued B. Defined Contribution Pension Plan,
Continued Funding Status and Progress As of June 30, 2012, the most recent actuarial valuation date, the plan was not funded in its initial year of implementation. The actuarial accrued
liability for benefits was $13,617,000, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability (“UAAL”) of $13,617,000 and a funded ratio (actuarial value
of assets as a percentage of the actuarial liability) of 0%. Funding Status and Progress, Continued 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 actuarial accrued liabilities
for the benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purpose are based on the substantive 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 actuarial
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 8.4% (the increase in 2012 premiums over 2011) 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% a year for HMOs and 7.5% a year for PPOs a year for the next seven years
after 2012. 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 98 12. OTHER POSTEMPLOYMENT BENEFITS, Continued B. Defined Contribution Pension Plan,
Continued Most Recent Actuarial Study – Schedule of Funding Progress Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation
Assets Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Payroll 6/30/2011 $ -$ 13,617,000 $ (13,617,000) 0.00% $ 73,651,000 (18.49)% 13. 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. At
June 30, 2012, the City identified the following sites which met one of the above obligating events: Corp Yard The estimate installation costs of groundwater monitoring wells and monitoring
activity is approximately $150,000. This estimate is based on the installation of additional ground water monitoring wells and about five years 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 monitoring, 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 a self-insured retention amount of $100,000 per occurrence. At June 30, 2012, the City recorded pollution remediation obligations in the amount
of $150,000 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 99 13. POLLUTION REMEDIATION OBLIGATIONS, Continued The pollution remediation costs
for Corp Yard are not covered by this insurance, however, the City will be covered should there be claims against the City by third parties. 14. COMMITMENTS AND CONTINGENCIES The City
is presently involved in certain matters of litigation that have risen 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 City’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. The General Fund has loaned a cumulative amount of $913,429 to the Successor 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.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 100 15. CLASSIFICATION OF FUND BALANCES Sundry Grants RDA City Park Acquisition Nonmajor
General Special Revenue Special Revenue Debt Service Development Development Governmental Fund Fund Fund Fund Impact Fund Fund Funds Total Nonspendable Prepaid items $ 49,595 $ 751 $
-$ -$ -$ -$ -$ 50,346 Loans receivable 8,749,431 3,223,100 6,393,172 -10,535,338 9,940,000 671,385 39,512,426 Total nonspendable 8,799,026 3,223,851 6,393,172 -10,535,338 9,940,000 671,385
39,562,772 Restricted SLESF -law enforcement -178,257 -----178,257 Police grants -210,381 -----210,381 Asset forfeiture -drug enforcement and education -496,395 -----496,395 Library
services grant -190,883 -----190,883 Park and recreation grants -78,238 -----78,238 Federal grants -64,861 -----64,861 State grants -12,180 -----12,180 ARRA grants -( 104,882) -----(
104,882) Waste management, recycling and environ. grants -1,244,571 -----1,244,571 Community and and housing development -1,342,776 664,407 ---951,448 2,958,631 Public facilities ----8,578,169
--8,578,169 Otay Ranch Village ramp and bridge ----3,328,913 --3,328,913 Transportation improvements ----14,366,030 -1,864,407 16,230,437 Telegraph Canyon drainage ----6,114,387 -6,114,387
Park acquisitions and development -----21,990,990 21,990,990 Parking meter services ------605,038 605,038 Traffic signal and safety ------2,755,320 2,755,320 Storm drain ------253,995
253,995 Open space maintenance ------15,748,007 15,748,007 Assessment districts improvement ------2,504,787 2,504,787 Total restricted -3,713,660 664,407 -32,387,499 21,990,990 24,683,002
83,439,558 Committed Ecomonic contingency 2,298,088 -----138,023 2,436,111 Otay Valley Regional Park management cost 203,481 ------203,481 Capital projects 1,828,638 ------1,828,638
Public safety 45,000 ------45,000 Debt service ------12,704,454 12,704,454 Total committed 4,375,207 -----12,842,477 17,217,684 Assigned Economic development 75,000 ------75,000 IFAS
support 58,339 ------58,339 Fire equipment 31,911 ------31,911 Grafitti tracker services 11,650 ------11,650 Master fee update and cost allocation plan 23,732 ------23,732 Bayfront project
80,000 ------80,000 Supplies and services 54,378 ------54,378 Parking lot improvement 50,000 ------50,000 Damage to City property 40,000 ------40,000 Grants 12,106 ------12,106 Education
and training 15,000 ------15,000 Web design and development 2,112 ------2,112 Ballot initiative 160,000 ------160,000 Legal services 89,091 ------89,091 Social media marketing 107,750
------107,750 Public liability 2,084,476 ------2,084,476 Total assigned 2,895,545 ------2,895,545 Unassigned 11,969,280 --(37,323,149) -(1) ( 97,584) (25,451,454) Total fund balances
$ 28,039,058 $ 6,937,511 $ 7,057,579 $ (37,323,149) $ 42,922,837 $ 31,930,989 $ 38,099,280 $ 117,664,105 Major Funds
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 101 16. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES
On December 29, 2011, the Supreme Court of the State of California (the “Court”) upheld the enforceability of legislation that provides for the dissolution of California redevelopment
agencies, but struck down the Assembly Bill X1 27 which would have provided a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment
Program. As a result of the Court ruling, the dissolution of California Redevelopment Agencies was effective as of February 1, 2012. Assembly Bill X1 26 signed into law as part of the
State’s budget package on June 29, 2011, requires each California Redevelopment Agency to suspend nearly all activities except to complete existing contracts, meet already-incurred obligations,
preserve its assets, prepare for the impending dissolution of the agency, and transfer all of its assets to a Successor Agency that is governed by an oversight board representing the
various taxing jurisdictions in the community. Assembly Bill X1 26 also required each agency to adopt an Enforceable Obligation Payment Schedule and draft a Recognized Obligation Payment
Schedule prior to September 30, 2011. 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 Assembly Bill X1 26. Only the amount of tax revenues
necessary to fund the payments reflected on the Enforceable Obligation Payment Schedule will be allocated to the Successor Agencies. Assembly Bill X1 26 directs the Department of Finance
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 Controller is required to order the available
assets to be transferred to the public body designated as the Successor Agency as defined in Assembly Bill X1 26. On January 12, 2012, The City Council of the City of Chula Vista adopted
Resolution No. 2203 electing to retain the housing assets and functions previously performed by the dissolved Chula Vista Redevelopment Agency pursuant to Section 34176(a)(1) of the
California Health and Safety Code. On January 31, 2012, the former Chula Vista Redevelopment Agency had net assets (deficit) of $(21,622,990). Accordingly, the City has assumed the responsibility
of the housing assets and functions for the Low and Moderate Income Housing Funds and transferred housing assets and liabilities in the net amount of $7,054,163 to the Low and Moderate
Income Housing Successor Special Revenue Fund. All remaining assets and liabilities of the RDA under the RDA Debt Service Fund and RDA Capital Projects Fund in the net amount of $(28,677,153)
were transferred to the RDA Successor Agency and are reported in the Fiduciary Funds.
City of Chula Vista Notes to Basic Financial Statements, Continued For the year ended June 30, 2012 102 16. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES,
Continued Balance as of January 31, 2012 (Modified Accrual Basis): RDA Capital Projects Fund $ 7,664,325 RDA Debt Service Fund (15,043,573) RDA Special Revenue Fund 17,624,451 Reconciliation
to Accrual Basis: Deferred Charges 763,906 Capital Assets 10,797,560 Arbitrage Liability ( 3,584) Pollution Remediation (500,000) Long-Term Debt (42,926,075) Total adjustments (31,868,193)
Balance as of February 1, 2012 (Accrual Basis): (21,622,990) Less: Housing Assets Transfer to Low & Moderate Income Housing Successor Special Revenue Fund (7,054,163) Extraordinary Gain
-Government-wide $ (28,677,153) Due to nature of the private-purpose trust fund certain long-term items including deferred charges, arbitrage liability, pollution remediation and bond
discounts are written off and recorded when the expenditure takes place. Deferred revenue revenue on advances between funds that were combined has been recognized. Certain accounts payable
balances relating to AB1290 have been written off since they are no longer owed. These entries have been recorded as extraordinary items in the private-purpose trust fund. Deferred Charges
$ (763,906) Arbitrage Liability 3,584 Pollution Remediation 500,000 Bond Discount (876,425) Deferred Revenue 1,141,449 Accounts Payable 724,282 Extraordinary Gain -ROPS $ 728,984
103 REQUIRED SUPPLEMENTARY INFORMATION
City of Chula Vista Required Supplementary Information For the year ended June 30, 2012 104 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 year, 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, 2012, 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.
City of Chula Vista Required Supplementary Information, Continued For the year ended June 30, 2012 105 1. BUDGETARY INFORMATION, Continued Budgetary Comparison Schedule, General Fund
Actual Variance with Original Final Amounts Final Budget REVENUES: Taxes 84,032,418 84,032,418 $ 85,167,221 $ 1,134,803 Intergovernmental 1,539,171 2,663,127 2,029,529 (633,598) Licenses
and permits 825,630 1,015,630 1,222,769 207,139 Charges for services 6,712,128 7,334,984 7,794,981 459,997 Fines and forfeitures 2,199,885 2,199,885 1,355,769 (844,116) Use of money
and property 2,234,999 2,285,498 2,916,631 631,133 Other 13,841,680 14,651,506 11,587,469 ( 3,064,037) Total revenues 111,385,911 114,183,048 112,074,369 ( 2,108,679) EXPENDITURES: Current:
General government: City council 1,266,619 1,322,512 1,220,792 101,720 Boards and Commissions 40,076 40,076 4,314 35,762 City clerks 1,407,780 1,407,780 883,284 524,496 City attorney
2,255,035 2,275,279 2,022,299 252,980 Administration 1,731,761 1,710,163 1,696,156 14,007 Management and information 2,869,481 2,889,353 2,865,368 23,985 Human resources 3,737,073 3,910,075
2,969,100 940,975 Finance 3,213,689 3,193,464 3,153,005 40,459 Non-Departmental 2,364,150 2,632,024 2,084,852 547,172 Planning and building 2,737,685 2,977,654 2,716,201 261,453 Total
general government 21,623,349 22,358,380 19,615,371 2,743,009 Public safety: Police 41,621,625 42,061,896 41,992,883 69,013 Fire 21,686,275 22,395,666 22,447,355 (51,689) Total public
safety 63,307,900 64,457,562 64,440,238 17,324 Public works: Engineering 3,960,523 3,961,523 3,833,575 127,948 General services 21,618,653 22,017,712 21,386,043 631,669 Total public
works 25,579,176 25,979,235 25,219,618 759,617 Parks and recreation 2,872,381 3,316,951 3,244,286 72,665 Library 3,422,601 3,579,119 3,435,325 143,794 Capital outlay 70,000 1,855,932
280,627 1,575,305 Total expenditures 116,875,407 121,547,179 116,235,465 5,311,714 REVENUES OVER (UNDER) EXPENDITURES ( 5,489,496) ( 7,364,131) ( 4,161,096) 3,203,035 Other Financing
Sources (Uses) Uses) Transfers in 9,163,777 10,784,042 9,850,345 (933,697) Transfers out 6,034,507 11,879,003 ( 13,390,590) ( 25,269,593) Total other financing sources (uses) 15,198,284
22,663,045 ( 3,540,245) ( 26,203,290) Net change in fund balance $ 9,708,788 $ 15,298,914 ( 7,701,341) $ ( 23,000,255) Fund Balance: Beginning of year 35,740,399 End of year $ 28,039,058
Budgeted Amounts
City of Chula Vista Required Supplementary Information, Continued For the year ended June 30, 2012 106 1. BUDGETARY INFORMATION, Continued Budgetary Comparison Schedule, Sundry Grants
Special Revenue Fund Actual Variance with Orginal Final Amounts Final Budget REVENUES: Intergovernmental $ 15,440,519 $ 20,949,448 $ 11,170,227 $ ( 9,779,221) Charges for services 979,000
979,000 1,033,479 54,479 Use of money and property 20,000 20,000 56,654 36,654 Other 191,000 200,889 677,429 476,540 Total revenues 16,630,519 22,149,337 12,937,789 ( 9,211,548) EXPENDITURES:
Current: General government 3,694,537 5,653,840 2,128,285 3,525,555 Public safety 7,178,410 9,537,461 7,070,222 2,467,239 Public works 4,387,999 6,190,194 4,017,488 2,172,706 Parks and
recreation 1,200 28,696 28,096 600 Library 281,270 281,270 237,336 43,934 Capital outlay 2,625,222 10,459,991 4,196,916 6,263,075 Total expenditures 18,168,638 32,151,452 17,678,343
14,473,109 REVENUES OVER (UNDER) EXPENDITURES ( 1,538,119) ( 10,002,115) ( 4,740,554) 5,261,561 OTHER FINANCING SOURCES (USES): Issuance of debt --3,963,104 3,963,104 Transfers in 204,649
165,416 157,330 (8,086) Transfers out ( 1,083,246) ( 1,049,648) ( 1,049,648) -Total other financing sources (uses) (878,597) (884,232) 3,070,786 3,955,018 Net change in fund balance
$ ( 2,416,716) $ ( 10,886,347) ( 1,669,768) $ 9,216,579 Fund Balance: Beginning of year 8,607,279 End of year $ 6,937,511 Budgeted Amounts
City of Chula Vista Required Supplementary Information, Continued For the year ended June 30, 2012 107 1. BUDGETARY INFORMATION, Continued Budgetary Comparison Schedule, Low & Moderate
Income Housing Successor Special Revenue Fund Actual Variance with Orginal Final Amounts (1) Final Budget REVENUES: Charges for services $ -$ -$ 25 $ 25 Use of money and property --5,033
5,033 Total revenues --5,058 5,058 EXPENDITURES: Current: General government --1,642 (1,642) Total expenditures --1,642 (1,642) REVENUES OVER (UNDER) EXPENDITURES --3,416 3,416 EXTRAORDINARY
ITEMS: Gain on dissolution of the Chula Vista Redevelopment Agency --7,054,163 7,054,163 Net change in fund balance $ -$ -7,057,579 $ 7,057,579 Fund Balance: Beginning of year -End of
year $ 7,057,579 (1) Period is for the five months from February 1, 2012 to June 30, 2012. See Note 16. Budgeted Amounts
City of Chula Vista Required Supplementary Information, Continued For the year ended June 30, 2012 108 PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS) SCHEDULE OF FUNDING PROGRESS Miscellaneous
Employees Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Assets Accrued Accrued Funded Covered Covered Date Value
Liability Liability Ratio Payroll Payroll 6/30/2009 $ 258,234,202 $ 337,496,425 $ 79,262,223 76.51% $ 45,211,544 175.31% 6/30/2010 $ 271,275,031 $ 355,519,797 $ 84,244,766 76.30% $ 43,498,397
193.67% 6/30/2011 $ 287,943,786 $ 381,582,655 $ 93,638,869 75.46% $ 41,109,611 227.78% Safety Employees Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial
Actuarial Percentage of Valuation Assets Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Payroll 6/30/2009 $ 240,935,156 $ 279,516,735 $ 38,581,579
86.20% $ 34,149,134 112.98% 6/30/2010 $ 255,698,516 $ 295,764,402 $ 40,065,886 86.45% $ 34,298,135 116.82% 6/30/2011 $ 273,750,352 $ 319,838,087 $ 46,087,735 85.59% $ 34,000,483 135.55%
OTHER POST EMPLOYMENT BENEFITS SCHEDULE OF FUNDING PROGRESS Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial 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% 6/30/2011 $ -$ 13,617,000 $ 13,617,000 0.00% $ 73,651,000 18.49%
SUPPLEMENTARY INFORMATION 109
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 transportation 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. 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. This fund is closed on February 1, 2012. 110
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. 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. This fund is closed on February 1, 2012. CAPITAL PROJECTS 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. This fund is
closed on February 1, 2012. 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. 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. 111
NON-MAJOR GOVERNMENTAL FUNDS CAPITAL PROJECTS FUNDS, Continued: 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.
112
Transportation Parking Traffic Town Developer Open Space Grants Meter Safety Centre I Deposits Districts ASSETS Cash and investments $ 4 3,661 $ 7 26,651 $ 1 09,127 $ 5 0,876 $ 1 0,604,087
$ 1 6,518,468 Receivables: Accounts -3 9,881 ----Taxes 2 87,482 ----5 6,793 Interest 2 06 9 70 3 39 8 0 -2 2,931 Loans ------Other ------Due from other funds ------Due from other governments
------Restricted cash and investments: Held by fiscal agent ------Total assets $ 3 31,349 $ 7 67,502 $ 1 09,466 $ 5 0,956 $ 1 0,604,087 $ 1 6,598,192 LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable and accrued liabilities $ -$ 5 6,435 $ 6 ,372 $ -$ 2 30,316 $ 8 50,185 Due to other funds ------Retention payable ------Developer deposits ----1 0,373,771 -Deferred
revenue ------Total liabilities -5 6,435 6 ,372 -1 0,604,087 8 50,185 Fund Balances: Nonspendable ------Restricted 2 99,355 6 05,038 1 03,094 5 0,956 -1 5,748,007 Committed 3 1,994 1
06,029 ----Unassigned ------Total fund balances 3 31,349 7 11,067 1 03,094 5 0,956 -1 5,748,007 Total liabilities and fund balances $ 3 31,349 $ 7 67,502 $ 1 09,466 $ 5 0,956 $ 1 0,604,087
$ 1 6,598,192 June 30, 2012 Non-Major Governmental Funds Combining Balance Sheet City of Chula Vista Special Revenue 113
RDA Housing Traffic Transportation Housing Special Programs Signals Sales Tax Storm Drain Authority Revenue (1) ASSETS Cash and investments $ 2 1,084 $ 2 ,842,504 $ 7 39,722 $ 1 84,140
$ 5 83,606 $ -Receivables: Accounts ---6 9,586 --Taxes ---2 78 --Interest -5 ,211 4 82 2 20 4 ,468 -Loans 6 80,460 ---2 ,101,507 -Other ------Due from other funds --7 2,231 ---Due from
other governments 1 ,407 -6 84,630 ---Restricted cash and investments: Held by fiscal agent ------Total assets $ 7 02,951 $ 2 ,847,715 $ 1 ,497,065 $ 2 54,224 $ 2 ,689,581 $ -LIABILITIES
AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ -$ 1 08,348 $ 3 20,975 $ 2 29 $ 7 9,967 $ -Due to other funds ------Retention payable -8 7,141 1 4,309 ---Developer
deposits ------Deferred revenue 1 29,150 ---2 ,101,507 -Total liabilities 1 29,150 1 95,489 3 35,284 2 29 2 ,181,474 -Fund Balances: Nonspendable 6 71,385 -----Restricted -2 ,652,226
1 ,161,781 2 53,995 5 08,107 -Committed ------Unassigned (97,584) -----Total fund balances 5 5 73,801 2 ,652,226 1 ,161,781 2 53,995 5 08,107 -Total liabilities and fund balances $ 7
02,951 $ 2 ,847,715 $ 1 ,497,065 $ 2 54,224 $ 2 ,689,581 $ -(Continued) (1) This fund was closed on February 1, 2012. See Note 16. June 30, 2012 Non-Major Governmental Funds Special
Revenue Combining Balance Sheet, Continued City of Chula Vista 114
Capital Projects Public RDA Residential Financing 1994 Notes Lease Debt Construction Authority POB Payable Payable Service (1) Tax ASSETS Cash and investments $ 2 ,240,771 $ -$ 2 88,034
$ 3 89 $ -$ 3 80,542 Receivables: Accounts ------Taxes ------Interest 6 ,206 -2 1 1 4 -1 ,117 Loans ------Other 5 3,819 -----Due from other funds ------Due from other governments ------Restricted
cash and investments: Held by fiscal agent 1 0,119,913 -----Total assets $ 1 2,420,709 $ -$ 2 88,055 $ 4 03 $ -$ 3 81,659 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable
and accrued liabilities $ 3 75 $ -$ 4 ,338 $ -$ -$ -Due to other funds ------Retention payable ------Developer deposits ------Deferred revenue ------Total liabilities 3 75 -4 ,338 ---Fund
Balances: Nonspendable ------Restricted -----3 81,659 Committed 1 2,420,334 -2 83,717 4 03 --Unassigned ------Total fund balances 1 2,420,334 -2 83,717 4 03 -3 81,659 Total liabilities
and fund balances $ 1 2,420,709 $ -$ 2 88,055 $ 4 03 $ -$ 3 81,659 (Continued) (1) This fund was closed on February 1, 2012. See Note 16.City of Chula Vista Combining Balance Sheet,
Continued Debt Service Non-Major Governmental Funds June 30, 2012 115
Industrial RDA Assessment Highway Bicycle Development Capital District Transportation Safety Facility Authority Projects (1) Improvements Partnership ASSETS Cash and investments $ 6
71,730 $ -$ 1 0,709 $ -$ 2 ,504,057 $ 2 8,869 Receivables: Accounts ------Taxes ------Interest 2 ,157 -1 7 -3 ,644 4 5 Loans ------Other -7 2,231 ----Due from other funds ------Due from
other governments ------Restricted cash and investments: Held by fiscal agent ------Total assets $ 6 73,887 $ 7 2,231 $ 1 0,726 $ -$ 2 ,507,701 $ 2 8,914 LIABILITIES AND FUND BALANCES
Liabilities: Accounts payable and accrued liabilities $ -$ -$ -$ -$ 2 ,914 $ -Due to other funds -7 2,231 ----Retention payable 1 30,025 -----Developer deposits ------Deferred revenue
1 73,529 -----Total liabilities 3 03,554 7 2,231 --2 ,914 -Fund Balances: Nonspendable ------Restricted 3 70,333 -1 0,726 -2 ,504,787 2 8,914 Committed ------Unassigned ------Total fund
balances 3 70,333 -1 0,726 -2 ,504,787 2 8,914 Total liabilities and fund balances $ 6 73,887 $ 7 2,231 $ 1 0,726 $ -$ 2 ,507,701 $ 2 8,914 (Continued) (1) This fund was closed on February
1, 2012. See Note 16. Capital Projects City of Chula Vista Combining Balance Sheet, Continued Non-Major Governmental Funds June 30, 2012 116
Total Other Transportation Traffic Other Transportation Equity Congestion Governmental Program Act Relief Funds ASSETS Cash and investments $ -$ -$ 3 ,917,316 $ 4 2,466,343 Receivables:
Accounts ---1 09,467 Taxes --3 98,035 7 42,588 Interest --4 ,049 5 2,177 Loans ---2 ,781,967 Other ---1 26,050 Due from other funds ---7 2,231 Due from other governments 1 ,697,757 --2
,383,794 Restricted cash and investments: Held by fiscal agent ---1 0,119,913 Total assets $ 1 ,697,757 $ -$ 4 ,319,400 $ 5 8,854,530 LIABILITIES AND FUND BALANCES Liabilities: Accounts
payable and accrued liabilities $ 2 20,588 $ -$ -$ 1 ,881,042 Due to other funds 1 ,261,331 --1 ,333,562 Retention payable ---2 31,475 Developer deposits ---1 0,373,771 Deferred revenue
2 11,814 -4 ,319,400 6 ,935,400 Total liabilities 1 ,693,733 -4 ,319,400 2 0,755,250 Fund Balances: Nonspendable ---6 71,385 Restricted 4 ,024 --2 4,683,002 Committed ---1 2,842,477
Unassigned ---(97,584) Total fund balances 4 ,024 --3 8,099,280 Total liabilities and fund balances $ 1 ,697,757 $ -$ 4 ,319,400 $ 5 8,854,530 (Concluded) Capital Projects City of Chula
Vista Combining Balance Sheet, Continued Non-Major Governmental Funds June 30, 2012 117
Transportation Parking Traffic Town Developer Open Space Grants Meter Safety Centre I Deposits Districts REVENUES: Taxes $ -$ -$ -$ -$ -$ -Intergovernmental 3 ,567,954 -----Licenses
and permits -2 1,582 ----Developer fees ----8 ,522,655 -Charges for services -----1 1,306,685 Fines and forfeitures -2 38,925 4 23,487 ---Use of money and property 6 24 3 22,498 1 ,575
4 83 3 9,754 1 39,885 Other 1 ,781 -----Total revenues 3 ,570,359 5 83,005 4 25,062 4 83 8 ,562,409 1 1,446,570 EXPENDITURES: Current: General government ------Public safety -3 64,064
3 4,474 ---Public works ----8 ,562,409 9 ,630,960 Parks and recreation ------Capital outlay -6 50 ----Debt Service: Principal ------Interest and fiscal charges ------Total expenditures
-3 64,714 3 4,474 -8 ,562,409 9 ,630,960 REVENUES OVER (UNDER) EXPENDITURES 3 ,570,359 2 18,291 3 90,588 4 83 -1 ,815,610 OTHER FINANCING SOURCES (USES): Transfers in ------Transfers
out (3,561,418) -(534,140) ---Total other financing sources (uses) (3,561,418) -(534,140) ---EXTRAORDINARY ITEMS: Gain (Loss) on dissolution of the Chula Vista Redevelopment Agency ------NET
CHANGE IN FUND BALANCES 8 ,941 2 18,291 (143,552) 4 83 -1 ,815,610 FUND BALANCES: Beginning of year 3 22,408 4 92,776 2 46,646 5 0,473 -1 3,932,397 End of year $ 3 31,349 $ 7 11,067
$ 1 03,094 $ 5 0,956 $ -$ 1 5,748,007 For the year ended June 30, 2012 Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances City of
Chula Vista Special Revenue 118
RDA Housing Traffic Transportation Housing Special Programs Signals Sales Tax Storm Drain Authority Revenue (1) REVENUES: Taxes $ -$ -$ 3 ,485,185 $ -$ -$ 1 ,540,904 Intergovernmental
2 8,443 -9 89,803 ---Licenses and permits ---9 ,455 --Developer fees ------Charges for services 5 0 1 45,471 -5 55,497 7 1,092 5 0 Fines and forfeitures ---4 7,065 --Use of money and
property 1 ,810 2 9,996 3 ,546 1 ,428 3 0,004 6 1,664 Other 6 ,674 2 5,806 9 1,027 -6 22,058 5 0 Total revenues 3 6,977 2 01,273 4 ,569,561 6 13,445 7 23,154 1 ,602,668 EXPENDITURES:
Current: General government 4 1,854 ---8 56,690 2 18,891 Public safety ------Public works -2 ,117 -2 07,171 --Parks and recreation ------Capital outlay -8 62,751 4 ,466,175 ---Debt Service:
Principal ------Interest and fiscal charges ------Total expenditures 4 1,854 8 64,868 4 ,466,175 2 07,171 8 56,690 2 18,891 REVENUES OVER (UNDER) EXPENDITURES (4,877) (663,595) 1 03,386
4 06,274 (133,536) 1 ,383,777 OTHER FINANCING SOURCES (USES): Transfers in --2 7,543 -1 43,882 4 4 ,250,000 Transfers out ---(340,463) (4,460,227) (92,882) Total other financing sources
(uses) --2 7,543 (340,463) (4,316,345) 4 ,157,118 EXTRAORDINARY ITEMS: Gain (Loss) on dissolution of the Chula Vista Redevelopment Agency -----(17,624,451) NET CHANGE IN FUND BALANCES
(4,877) (663,595) 1 30,929 6 5,811 (4,449,881) (12,083,556) FUND BALANCES: Beginning of year 5 78,678 3 ,315,821 1 ,030,852 1 88,184 4 ,957,988 1 2,083,556 End of year $ 5 73,801 $ 2
,652,226 $ 1 ,161,781 $ 2 53,995 $ 5 08,107 $ -(1) Period is for seven months from July 1, 2011 to January 31, 2012. See Note 16. (Continued) For the year ended June 30, 2012 Non-Major
Governmental Funds Special Revenue Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued City of Chula Vista 119
Capital Projects Public RDA Residential Financing 1994 Notes Lease Debt Construction Authority POB Payable Payable Service (1) Tax REVENUES: Taxes $ -$ -$ -$ -$ -$ 2 61,252 Intergovernmental
------Licenses and permits ------Developer fees ------Charges for services ------Fines and forfeitures ------Use of money and property 2 86,419 -(5) 8 5 4 7,070 6 ,787 Other ----2 0
5 9,999 Total revenues 2 86,419 -(5) 8 5 4 7,090 3 28,038 EXPENDITURES: Current: General government 8 ,871 ---4 ,741 -Public safety 8 ,416 -----Public works ------Parks and recreation
------Capital outlay ------Debt Service: Principal 3 ,770,000 2 ,655,000 5 18,619 4 12,037 1 ,067,500 -Interest and fiscal charges 6 ,329,256 1 07,860 4 68,212 5 5,911 1 ,369,667 -Total
expenditures 1 0,116,543 2 ,762,860 9 86,831 4 67,948 2 ,441,908 -REVENUES OVER (UNDER) EXPENDITURES (9,830,124) (2,762,860) (986,836) (467,863) (2,394,818) 3 28,038 OTHER FINANCING
SOURCES (USES): Transfers in 5 ,094,288 2 ,762,834 1 ,194,476 4 67,949 6 ,128,598 2 00,000 Transfers out -----(642,173) Total other financing sources (uses) 5 ,094,288 2 ,762,834 1 ,194,476
4 67,949 6 ,128,598 (442,173) EXTRAORDINARY ITEMS: Gain (Loss) on dissolution of the Chula Vista Redevelopment Agency ----1 5,043,573 -NET CHANGE IN FUND BALANCES (4,735,836) (26) 2
07,640 8 6 1 8,777,353 (114,135) FUND BALANCES: Beginning of year 1 7,156,170 2 6 7 6,077 3 17 (18,777,353) 4 95,794 End of year $ 1 2,420,334 $ -$ 2 83,717 $ 4 03 $ -$ 3 81,659 (1)
Period is for seven months from July 1, 2011 to January 31, 2012. See Note 16. (Continued) City of Chula Vista Combining Statement of Revenues, Expenditures and Changes in Fund Balances,
Continued For the year ended June 30, 2012 Debt Service Non-Major Governmental Funds 120
Industrial RDA Assessment Highway Bicycle Development Capital District Transportation Safety Facility Authority Projects (1) Improvements Partnership REVENUES: Taxes $ -$ -$ -$ 6 ,413,524
$ -$ -Intergovernmental 1 ,498,959 3 0,208 ----Licenses and permits ------Developer fees ------Charges for services ------Fines and forfeitures ------Use of money and property 9 ,110
(614) 1 04 4 90,625 2 1,288 2 71 Other ---4 8,570 1 9,646 -Total revenues 1 ,508,069 2 9,594 1 04 6 ,952,719 4 0,934 2 71 EXPENDITURES: Current: General government ---9 56,066 --Public
safety ------Public works -4 ,930 ----Parks and recreation ----3 ,434 -Capital outlay 1 ,508,069 2 5,576 -2 97,109 -1 Debt Service: Principal ------Interest and fiscal charges ------Total
expenditures 1 ,508,069 3 0,506 -1 ,253,175 3 ,434 1 REVENUES OVER (UNDER) EXPENDITURES -(912) 1 04 5 ,699,544 3 7,500 2 70 OTHER FINANCING SOURCES (USES): Transfers in -9 12 -2 ,500,000
--Transfers out ---(7,216,515) --Total other financing sources (uses) -9 12 -(4,716,515) --EXTRAORDINARY ITEMS: Gain (Loss) on dissolution of the Chula Vista Redevelopment Agency ---(7,664,325)
--NET CHANGE IN FUND BALANCES --1 04 (6,681,296) 3 7,500 2 70 FUND BALANCES: Beginning of year 3 70,333 -1 0,622 6 ,681,296 2 ,467,287 2 8,644 End of year $ 3 70,333 $ -$ 1 0,726 $ -$
2 ,504,787 $ 2 8,914 (1) Period is for seven months from July 1, 2011 to January 31, 2012. See Note 16. (Continued) Capital Projects 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, 2012 121
Total Other Transportation Traffic Other Transportation Equity Congestion Governmental Program Act Relief Funds REVENUES: Taxes $ -$ -$ -$ 1 1,700,865 Intergovernmental 1 ,490,111 -1
,055,777 8 ,661,255 Licenses and permits ---3 1,037 Developer fees ---8 ,522,655 Charges for services ---1 2,078,845 Fines and forfeitures ---7 09,477 Use of money and property --2 8,648
1 ,523,055 Other ---8 75,631 Total revenues 1 ,490,111 -1 ,084,425 4 4,102,820 EXPENDITURES: Current: General government ---2 ,087,113 Public safety ---4 06,954 Public works 2 0,726
4 3,977 -1 8,472,290 Parks and recreation ---3 ,434 Capital outlay 1 ,490,111 -5 84,425 9 ,234,867 Debt Service: Principal ---8 ,423,156 Interest and fiscal charges ---8 ,330,906 Total
expenditures 1 ,510,837 4 3,977 5 84,425 4 6,958,720 REVENUES OVER (UNDER) EXPENDITURES (20,726) (43,977) 5 00,000 (2,855,900) OTHER FINANCING SOURCES (USES): Transfers in 2 4,750 4
3,977 -2 2,839,209 Transfers out (336,619) -(500,000) (17,684,437) Total other financing sources (uses) uses) (311,869) 4 3,977 (500,000) 5 ,154,772 EXTRAORDINARY ITEMS: Gain (Loss)
on dissolution of the Chula Vista Redevelopment Agency ---(10,245,203) NET CHANGE IN FUND BALANCES (332,595) --(7,946,331) FUND BALANCES: Beginning of year 3 36,619 --4 6,045,611 End
of year $ 4 ,024 $ -$ -$ 3 8,099,280 (Concluded) Capital Projects 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, 2012 122
Final Actual Variance with Budget Amounts Final Budget Expenditures: Debt service: Interest and fiscal charges $ 900,000 $ 898,869 $ 1,131
Total expenditures 900,000 898,869 1,131 REVENUES OVER (UNDER) EXPENDITURES (900,000) (898,869) 1,131 Other Financing Sources (Uses): Transfers in 502,894 502,896 2 Transfers out (310,000)
(310,000) -Total other financing sources (uses) 192,894 192,896 2 Net change in fund balance $ (707,106) (705,973) $ 1,133 Fund Balance: Beginning of year (36,617,176) End of year $
(37,323,149) For the year ended June 30, 2012 City Debt Service Fund -Major Governmental Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City
of Chula Vista 123
Final Actual Variance with Budget Amounts Final Budget Revenues: Intergovernmental $ 3,769,351 $ 3,567,954 $ (201,397) Use of money and property -624 624 Other -1,781 1,781 Total revenues
3,769,351 3,570,359 (198,992) REVENUES OVER (UNDER) EXPENDITURES 3,769,351 3,570,359 (198,992) Other Financing Sources (Uses): Transfers out (3,939,428) (3,561,418) 378,010 Total other
financing sources (uses) (3,939,428) (3,561,418) 378,010 Net change in fund balance $ (170,077) 8,941 $ 179,018 Fund Balance: Beginning of year 322,408 End of year $ 331,349 For the
year ended June 30, 2012 Transportation Grants Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 124
Final Actual Variance with Budget Amounts Final Budget Revenues: Licenses and permits $ 24,000 $ 21,582 $ (2,418) Fines and forfeitures 230,000 238,925 8,925 Use of money and property
376,000 322,498 (53,502) Total revenues 630,000 583,005 (46,995) Expenditures: Current: Public safety 430,203 364,064 66,139 Capital outlay 388,489 650 387,839 Total expenditures 818,692
364,714 453,978 REVENUES OVER (UNDER) EXPENDITURES (188,692) 218,291 406,983 Net change in fund balance $ (188,692) 218,291 $ 406,983 Fund Balance: Beginning of year 492,776 End of year
$ 711,067 For the year ended June 30, 2012 Parking Meter Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 125
Final Actual Variance with Budget Amounts Final Budget Revenues: Fines and forfeitures $ 534,140 $ 423,487 $ (110,653) Use of money and property -1,575 1,575 Total revenues 534,140 425,062
(109,078) Expenditures: Current: Public safety 41,500 34,474 7,026 Total expenditures 41,500 34,474 7,026 REVENUES OVER (UNDER) EXPENDITURES 492,640 390,588 (102,052) Other Financing
Sources (Uses): Transfers out (534,140) (534,140) -Total other financing sources (uses) (534,140) (534,140) -Net change in fund balance $ (41,500) (143,552) $ (102,052) Fund Balance:
Beginning of year 246,646 End of year $ 103,094 For the year ended June 30, 2012 Traffic Safety Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget
and Actual City of Chula Vista 126
Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ -$ 483 $ 483 Total revenues -483 483 Expenditures: Capital outlay 10,433 -10,433 Total expenditures
10,433 -10,433 REVENUES OVER (UNDER) EXPENDITURES (10,433) 483 10,916 Net change in fund balance $ (10,433) 483 $ 10,916 Fund Balance: Beginning of year 50,473 End of year $ 50,956 For
the year ended June 30, 2012 Town Centre I Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 127
Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 11,595,097 $ 11,306,685 $ (288,412) Use of money and property -139,885 139,885 Total revenues
11,595,097 11,446,570 (148,527) Expenditures: Current: Public works 11,842,413 9,630,960 2,211,453 Total expenditures 11,842,413 9,630,960 2,211,453 REVENUES OVER (UNDER) EXPENDITURES
(247,316) 1,815,610 2,062,926 Net change in fund balance $ (247,316) 1,815,610 $ 2,062,926 Fund Balance: Beginning of year 13,932,397 End of year $ 15,748,007 For the year ended June
30, 2012 Open Space Districts Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 128
Final Actual Variance with Budget Amounts Final Budget Revenues: Intergovernmental $ 93,256 $ 28,443 $ (64,813) Charges for services -50 50 Use of money and property -1,810 1,810 Other
-6,674 6,674 Total revenues 93,256 36,977 (56,279) Expenditures: Current: General government 114,498 41,854 72,644 Total expenditures 114,498 41,854 72,644 REVENUES OVER (UNDER) EXPENDITURES
(21,242) (4,877) 16,365 Net change in fund balance $ (21,242) (4,877) $ 16,365 Fund Balance: Beginning of year 578,678 End of year $ 573,801 For the year ended June 30, 2012 Housing
Programs Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 129
Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 250,000 $ 145,471 $ (104,529) Use of money and property -29,996 29,996 Other -25,806 25,806 Total
revenues 250,000 201,273 (48,727) Expenditures: Current: Public works 15,000 2,117 12,883 Capital outlay 3,241,704 862,751 2,378,953 Total expenditures 3,256,704 864,868 2,391,836 REVENUES
OVER (UNDER) EXPENDITURES (3,006,704) (663,595) 2,343,109 Other Financing Sources (Uses): Transfers in ---Total other financing sources (uses) ---Net change in fund balance $ (3,006,704)
(663,595) $ 2,343,109 Fund Balance: Beginning of year 3,315,821 End of year $ 2,652,226 For the year ended June 30, 2012 Traffic Signals Special Revenue Fund Schedule of Revenues, Expenditures
and Changes in Fund Balances -Budget and Actual City of Chula Vista 130
Final Actual Variance with Budget Amounts Final Budget Revenues: Taxes $ 4,347,000 $ 3,485,185 $ (861,815) Intergovernmental -989,803 989,803 Use of money and property -3,546 3,546 Other
-91,027 91,027 Total revenues 4,347,000 4,569,561 222,561 Expenditures: Capital outlay 14,650,358 4,466,175 10,184,183 Total expenditures 14,650,358 4,466,175 10,184,183 REVENUES OVER
(UNDER) EXPENDITURES (10,303,358) 103,386 10,406,744 Other Financing Sources (Uses): Transfers in 27,543 27,543 -Total other financing sources (uses) 27,543 27,543 -Net change in fund
balance $ (10,275,815) 130,929 $ 10,406,744 Fund Balance: Beginning of year 1,030,852 End of year $ 1,161,781 For the year ended June 30, 2012 Transportation Sales Tax Special Revenue
Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 131
Final Actual Variance with Budget Amounts Final Budget Revenues: Licenses and permits $ 25,000 $ 9,455 $ (15,545) Charges for services 525,000 555,497 30,497 Fines and forfeitures 5,000
47,065 42,065 Use of money and property -1,428 1,428 Total revenues 555,000 613,445 58,445 Expenditures: Current: Public works 262,619 207,171 55,448 Total expenditures 262,619 207,171
55,448 REVENUES OVER (UNDER) EXPENDITURES 292,381 406,274 113,893 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 $ 1,918 65,811 $ 63,893 Fund Balance: Beginning of year 188,184 End of year $ 253,995 For the year ended June 30, 2012 Storm Drain Special
Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 132
Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 71,000 $ 71,092 $ 92 Use of money and property -30,004 30,004 Other 817,101 622,058 (195,043)
Total revenues 888,101 723,154 (164,947) Expenditures: Current: General government 5,153,405 856,690 4,296,715 Total expenditures 5,153,405 856,690 4,296,715 REVENUES OVER (UNDER) EXPENDITURES
(4,265,304) (133,536) 4,131,768 Other Financing Sources (Uses): Transfers in 210,226 143,882 (66,344) Transfers out (4,460,227) (4,460,227) -Total other financing sources (uses) (4,250,001)
(4,316,345) (66,344) Net change in fund balance $ (8,515,305) (4,449,881) $ 4,065,424 Fund Balance: Beginning of year 4,957,988 End of year $ 508,107 For the year ended June 30, 2012
Housing Authority Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 133
Final Actual Variance with Budget (1) Amounts Final Budget Revenues: Taxes $ 2,821,470 $ 1,540,904 $ (1,280,566) Charges for services -50 50 Use of money and property 17,885 61,664 43,779
Other -50 50 Total revenues 2,839,355 1,602,668 (1,236,687) Expenditures: Current: General government 628,111 218,891 409,220 Total expenditures 628,111 218,891 409,220 REVENUES OVER
(UNDER) EXPENDITURES 2,211,244 1,383,777 (827,467) Other Financing Sources (Uses): Transfers in 4,250,000 4,250,000 -Transfers out (10,729,541) (92,882) 10,636,659 Total other financing
sources (uses) (6,479,541) 4,157,118 10,636,659 EXTRAORDINARY ITEM: Loss on dissolution of the Chula Vista Redevelopment Agency -(17,624,451) 10,636,659 Net change in fund balance $
(4,268,297) (12,083,556) $ (7,815,259) Fund Balance: Beginning of period 12,083,556 End of period $ -(1) The fund was closed on February 1, 2012. However, the budget was prepared based
on a 12-month period ended June 30, 2012. See Note 16. For the seven months ended January 31, 2012 2012 RDA Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund
Balances -Budget and Actual City of Chula Vista 134
Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ -$ 286,419 $ 286,419 Total revenues -286,419 286,419 Expenditures: Current: General government
10,650 8,871 1,779 Public safety 9,500 8,416 1,084 Debt service: Principal 3,761,853 3,770,000 (8,147) Interest and fiscal charges 6,337,428 6,329,256 8,172 Total expenditures 10,119,431
10,116,543 2,888 REVENUES OVER (UNDER) EXPENDITURES (10,119,431) (9,830,124) 289,307 Other Financing Sources (Uses): Transfers in 9,333,397 5,094,288 (4,239,109) Transfers out (4,134,580)
-4,134,580 Total other financing sources (uses) 5,198,817 5,094,288 (104,529) Net change in fund balance $ (4,920,614) (4,735,836) $ 184,778 Fund Balance: Beginning of year 17,156,170
End of year $ 12,420,334 For the year ended June 30, 2012 Public Financing Authority Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
City of Chula Vista 135
Final Actual Variance with Budget Amounts Final Budget Expenditures: Debt service: Principal $ 2,655,000 $ 2,655,000 $ -Interest and fiscal charges 107,860 107,860 -Total expenditures
2,762,860 2,762,860 -REVENUES OVER (UNDER) EXPENDITURES (2,762,860) (2,762,860) -Other Financing Sources (Uses): Transfers in 2,765,359 2,762,834 (2,525) Total other financing sources
(uses) 2,765,359 2,762,834 (2,525) Net change in fund balance $ 2,499 (26) $ (2,525) Fund Balance: Beginning of year 26 End of year $ -For the year ended June 30, 2012 1994 POB Debt
Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 136
Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ -$ (5) $ (5) Total revenues -(5) (5) Expenditures: Debt service: Principal 549,247 518,619
30,628 Interest and fiscal charges 645,229 468,212 177,017 Total expenditures 1,194,476 986,831 207,645 REVENUES OVER (UNDER) EXPENDITURES (1,194,476) (986,836) 207,640 Other Financing
Sources (Uses): Transfers in 1,194,476 1,194,476 -Total other financing sources (uses) 1,194,476 1,194,476 -Net change in fund balance $ -207,640 $ 207,640 Fund Balance: Beginning of
year 76,077 End of year $ 283,717 For the year ended June 30, 2012 Notes Payable Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
City of Chula Vista 137
Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ -$ 85 $ 85 Total revenues -85 85 Expenditures: Debt service: Principal 412,037 412,037 -Interest
and fiscal charges 55,913 55,911 2 Total expenditures 467,950 467,948 2 REVENUES OVER (UNDER) EXPENDITURES (467,950) (467,863) 87 Other Financing Sources (Uses): Transfers in 467,950
467,949 (1) Total other financing sources (uses) 467,950 467,949 (1) Net change in fund balance $ -86 $ 86 Fund Balance: Beginning of year 317 End of year $ 403 For the year ended June
30, 2012 Lease Payable Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista 138
Final Actual Variance with Budget (1) Amounts Final Budget Revenues: Use of money and property $ -$ 47,070 $ 47,070 Other -20 20 Total revenues -47,090 47,090 Expenditures: Current:
General government 15,000 4,741 10,259 Debt service: Principal 1,154,999 1,067,500 87,499 Interest and fiscal charges 3,344,112 1,369,667 1,974,445 Total expenditures 4,514,111 2,441,908
2,072,203 REVENUES OVER (UNDER) EXPENDITURES (4,514,111) (2,394,818) 2,119,293 Other Financing Sources (Uses): Transfers in 7,911,972 6,128,598 (1,783,374) Transfers out (7,275,214)
-7,275,214 Total other financing sources (uses) 636,758 6,128,598 5,491,840 EXTRAORDINARY ITEMS: Gain on dissolution of the Chula Vista Redevelopment Agency -15,043,573 5,491,840 Net
change in fund balance $ (3,877,353) 18,777,353 $ 22,654,706 Fund Balance: Beginning of year (18,777,353) End of year $ -For the year ended June 30, 2012 RDA Debt Service Fund Schedule
of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual City of Chula Vista (1) This fund was closed on February 1, 2012. However, the budget was prepared based on
a 12-month period ended June 30, 2012. See Note 16. 139
140
NON-MAJOR ENTERPRISE FUNDS Transit Fund -This fund is used to account for the maintenance and development of the transit related projects. Bayfront Trolley Station 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. Development Services Fund -This fund is a depository for a portion of the developer fees and other development related activities. 141
Bayfront Transit Trolley Sewer Development Fund Station Fund DIFS Fund Services Fund Total ASSETS Current assets: Cash and investments $ 498,693 $ 1,089 $ 8,777,728 $ 82,308 $ 9,359,818
Receivables: Accounts 1,061 --329,668 330,729 Interest 1,218 -14,391 -15,609 ACTOItVhIeTrIES: 68,264 ---68,264 Total current assets 569,236 1,089 8,792,119 411,976 9,774,420 Noncurrent
assets: Capital assets, net 1,441,898 -2,161,387 -3,603,285 Total noncurrent assets 1,441,898 -2,161,387 -3,603,285 Total assets 2,011,134 1,089 10,953,506 411,976 13,377,705 LIABILITIES
Current liabilities: Accounts payable and accrued liabilities 7,215 1,089 -9,077 17,381 Unearned revenues 137,000 ---137,000 Total current liabilities 144,215 1,089 -9,077 154,381 Noncurrent
liabilities: Advances from other funds --4,102,371 -4,102,371 Compensated absences 21,048 ---21,048 Total noncurrent liabilities 21,048 -4,102,371 -4,123,419 Total liabilities 165,263
1,089 4,102,371 9,077 4,277,800 NET ASSETS Invested in capital assets 1,441,898 -2,161,387 -3,603,285 Unrestricted 403,973 -4,689,748 402,899 5,496,620 Total net assets $ 1,845,871 $
-$ 6,851,135 $ 402,899 $ 9,099,905 June 30, 2012 Non-Major Enterprise Funds Combining Statement of Net Assets City of Chula Vista 142
Bayfront Transit Trolley Sewer Development Fund Station Fund DIFS Fund Services Fund Total OPERATING REVENUES: Charges for services $ 2,671,538 $ -$ 174,667 $ 4,174,657 $ 7,020,862 Other
124,554 --1,741,244 1,865,798 Total operating revenues 2,796,092 -174,667 5,915,901 8,886,660 OPERATING EXPENSES: CASH FLOWS FROM CAPITAL AND RELATED FINANCING Operation and administration
6,206,298 91,942 6,424 4,730,599 11,035,263 Depreciation 844,375 -60,000 -904,375 7,050,673 91,942 66,424 4,730,599 11,939,638 Operating income (loss) (4,254,581) (91,942) 108,243 1,185,302
(3,052,978) NONOPERATING REVENUES: Intergovernmental 3,432,484 91,942 --3,524,426 Interest revenue 6,543 -85,053 -91,596 Interest expenses --(62,927) -(62,927) Total nonoperating revenues
3,439,027 91,942 22,126 -3,553,095 Income (loss) before transfers (815,554) -130,369 1,185,302 500,117 TRANSFERS: Transfers in 57,147 --485,990 543,137 Transfers out (62,599) -(250,000)
(1,268,393) (1,580,992) Total transfers (5,452) -(250,000) (782,403) (1,037,855) Net increase (decrease) in net assets (821,006) -(119,631) 402,899 (537,738) NET ASSETS: Beginning of
year 2,666,877 -6,970,766 -9,637,643 End of year $ 1,845,871 $ -$ 6,851,135 $ 402,899 $ 9,099,905 For the year ended June 30, 2012 Non-Major Enterprise Funds Combining Statement of Revenues,
Expenses, and Changes in Net Assets City of Chula Vista 143
Bayfront Transit Trolley Sewer Development Fund Station Fund DIFS Fund Services Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 2,542,350 $ -$ 174,667
$ 3,844,989 $ 6,562,006 Cash received from other funds --62,927 -62,927 Cash payments to suppliers and employees for goods and services ( 6,214,946) (90,853) ( 6,424) ( 4,721,522) (
11,033,745) Other operating revenues 124,554 --1,741,244 1,865,798 Net cash provided (used) by operating activities ( 3,548,042) (90,853) 231,170 864,711 ( 2,543,014) CASH FLOWS FROM
CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets 29,492 ---29,492 Net cash provided by capital and related financing activities 29,492 ---29,492 CASH FLOWS FROM
NONCAPITAL FINANCING ACTIVITIES: Intergovernmental 3,432,484 91,942 --3,524,426 Interest expenses --(62,927) -(62,927) Transfer in 57,147 --485,990 543,137 Transfers (out) (62,599) -(250,000)
(1,268,393) ( 1,580,992) Net cash provided (used) by noncapital financing activities 3,427,032 91,942 (312,927) (782,403) 2,423,644 CASH FLOWS FROM INVESTING ACTIVITIES: Interest revenue
7,340 -91,332 -98,672 Net cash used by investing activities 7,340 -91,332 -98,672 Net increase (decrease) in cash and cash equivalents (84,178) 1,089 9,575 82,308 8,794 CASH AND CASH
EQUIVALENT: Beginning of year 582,871 -8,768,153 -9,351,024 End of year $ 498,693 $ 1,089 $ 8,777,728 $ 82,308 $ 9,359,818 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES: Operating income (loss) $ (4,254,581) $ (91,942) $ 108,243 $ 1,185,302 $ ( 3,052,978) Adjustments to reconcile operating loss to net cash provided (used) by
operating activities: Depreciation 844,375 -60,000 -904,375 Changes in operating assets and liabilities: Accounts receivable (1,061) --(329,668) ( 330,729) Other receivable (8,364) ---(
8,364) Accounts payable and accrued liabilities (8,597) 1,089 -9,077 1,569 Unearned revenue (119,763) ---( 119,763) Advances from other funds --62,927 -62,927 Compensated absences (51)
---( 51) Total adjustments 706,539 1,089 122,927 (320,591) 509,964 Net cash provided (used) by operating activities $ (3,548,042) $ (90,853) $ 231,170 $ 864,711 $ (2,543,014) For the
year ended June 30, 2012 Non-Major Enterprise Funds Combining Statement of Cash Flows City of Chula Vista 144
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. Workers Compensation -This fund is a depository for contributions made from the General Fund to
pay for annual costs related to worker’s compensation liabilities including the provision of an appropriate reserve to pay uninsured claim costs. The City is self-insured for the first
$1,000,000 per claim. The amount of the reserve and the required annual transfer is determined by the Director of Finance, based on experience and consultation with the Risk Manager.
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. 145
Fleet Technology Workers Management Replacement Compensation Total ASSETS Current assets: Cash and investments $ 1,867,282 $ 3,012 $ 3,020,537 $ 4,890,831 Receivables: Interest 2,960
--2,960 Other 42,198 --42,198 Total current assets 1,912,440 3,012 3,020,537 4,935,989 Noncurrent assets: Capital assets, net 427,780 --427,780 Total noncurrent assets 427,780 --427,780
Total assets 2,340,220 3,012 3,020,537 5,363,769 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2 23,207 --2 23,207 Total current liabilities 2 23,207 --2
23,207 Noncurrent liabilities: Compensated absences 62,763 --62,763 Total noncurrent liabilities 62,763 --62,763 Total liabilities 285,970 --285,970 NET ASSETS Invested in capital assets
427,780 --427,780 Unrestricted 1,626,470 3,012 3,020,537 4,650,019 Total net assets $ 2,054,250 $ 3,012 $ 3,020,537 $ 5,077,799 June 30, 2012 All Internal Service Funds Combining Statement
of Net Assets City of Chula Vista 146
Fleet Technology Workers Management Replacement Compensation Total OPERATING REVENUES: Charges for services $ 3,507,007 $ -$ 2,855,153 $ 6,362,160 Other 23,705 -6,968 30,673 Total operating
revenues 3,530,712 -2,862,121 6,392,833 OPERATING EXPENSES: Operation and administration 3,913,310 5,722 2,831,745 6,750,777 Depreciation 270,338 --270,338 Total operating expenses 4,183,648
5,722 2,831,745 7,021,115 Operating income (loss) (652,936) (5,722) 30,376 (628,282) NONOPERATING REVENUES: Interest revenue 17,756 --17,756 Gain on disposal of capital assets 3,137
--3,137 Total nonoperating revenues 20,893 --20,893 Income (loss) before transfers (632,043) (5,722) 30,376 (607,389) TRANSFERS: Transfers in --2,990,161 2,990,161 Transfers out (57,147)
--(57,147) Total transfers (57,147) -2,990,161 2,933,014 Net increase (decrease) in net assets (689,190) (5,722) 3,020,537 2,325,625 NET ASSETS: Beginning of year 2,743,440 8,734 -2,752,174
End of year $ 2,054,250 $ 3,012 $ 3,020,537 $ 5,077,799 For the year ended June 30, 2012 All Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets
City of Chula Vista 147
Fleet Technology Workers Management Replacement Compensation Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds $ 3 ,498,184 $ -$ 2 ,855,153 $ 6 ,353,337 Cash
payments to suppliers and employees for goods and services (4,000,403) (5,722) (2,831,745) (6,837,870) Other operating revenues 2 3,705 -6 ,968 3 0,673 Net cash provided (used) by operating
activities (478,514) (5,722) 3 0,376 (453,860) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets 266,392 --2 66,392 Proceeds received from disposal
of capital assets 3,137 --3 ,137 Net cash provided by capital and related financing activities 269,529 --269,529 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers (out) --2,990,161
2 ,990,161 Transfers (out) (57,147) --(57,147) Net cash provided (used) by noncapital financing activities (57,147) -2,990,161 2,933,014 CASH FLOWS FROM INVESTING ACTIVITIES: Interest
revenue 18,783 --1 8,783 Net cash used by investing activities 18,783 --18,783 Net increase (decrease) in cash and cash equivalents (247,349) (5,722) 3,020,537 2,767,466 CASH AND CASH
EQUIVALENT: Beginning of year 2,114,631 8,734 -2,123,365 End of year $ 1,867,282 $ 3,012 $ 3,020,537 $ 4,890,831 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES: Operating income (loss) $ (652,936) $ (5,722) $ 30,376 $ (628,282) Adjustments to reconcile operating loss to net cash provided (used) by operating activities: Depreciation
270,338 --2 70,338 Changes in operating assets and liabilities: Other receivable (8,823) --(8,823) Accounts payable and accrued liabilities (87,154) --(87,154) Compensated absences 61
--6 1 Total adjustments 174,422 --174,422 Net cash provided (used) by operating activities $ (478,514) $ (5,722) $ 30,376 $ (453,860) For the year ended June 30, 2012 All Internal Service
Funds Combining Statement of Cash Flows City of Chula Vista 148
AGENCY FUND 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. Miscellaneous Deposits -This fund accounts for all money collected to pay for certain deposits. FIDUCIARY FUNDS 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. 149
Balance Balance July 1, 2011 Additions Deletions June 30, 2012 Special Assessment District Assets: Cash and investments $ 7 ,701,829 $ 2 6,268,115 $ (26,173,900) $ 7,796,044 Restricted
cash and investments: Held by fiscal agents 7 2,923,442 1 3,808,544 (13,813,147) 72,918,839 Total assets $ 80,625,271 $ 40,076,659 $ (39,987,047) $ 80,714,883 Liabilities: Due to bondholders
$ 8 0,625,271 $ 3 9,627,817 $ (39,540,926) $ 80,712,162 Accounts Payable -2 ,721 -2,721 Total liabilities $ 80,625,271 $ 39,630,538 $ (39,540,926) $ 80,714,883 Miscellaneous Deposits
Assets: Cash and investments $ -$ 1 ,168,307 $ (1,155,050) $ 13,257 Other Receivables -1 9,787 -19,787 Total assets $ -$ 1,188,094 $ (1,155,050) $ 33,044 Liabilities: Refundable deposits
$ -$ 3 3,044 $ -$ 33,044 Total liabilities $ -$ 33,044 $ -$ 33,044 Total -All Agency Funds Assets: Cash and investments $ 7 ,701,829 $ 2 7,436,422 $ (27,328,950) $ 7 ,809,301 Restricted
cash and investments: Held by fiscal agents 7 2,923,442 1 3,808,544 (13,813,147) 7 2,918,839 Other Receivables -1 9,787 -1 9,787 Total assets $ 80,625,271 $ 41,264,753 $ (41,142,097)
$ 80,747,927 Liabilities: Accounts Payable $ -$ 2 ,721 $ -$ 2 ,721 Due to bondholders 8 0,625,271 3 9,627,817 (39,540,926) 8 0,712,162 Refundable Deposits -3 3,044 -3 3,044 Total liabilities
$ 80,625,271 $ 39,663,582 $ (39,540,926) $ 80,747,927 For the year ended June 30, 2012 Agency Fund Statement of Changes in Assets and Liabilities City of Chula Vista 150
Page No. Financial Trends 152-155 These schedules contain information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue
Capacity 156-159 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 160-165
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 166-168 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 169-173 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. CITY OF CHULA VISTA Statistical
Section Table of Contents June 30, 2012 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. 151
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental activities: Invested in capital assets, net of related debt $ 456,096,957 $ 537,716,998 $ 600,317,974 $ 662,230,041 $ 715,090,838
$ 621,878,119 $ 623,938,515 $ 634,377,842 $ 634,409,385 $ 655,182,727 Restricted 55,203,919 55,283,141 72,468,247 75,916,972 69,516,915 55,166,660 43,901,854 49,193,256 47,168,636 22,929,585
Unrestricted 1 03,843,928 1 10,825,189 111,448,751 95,782,921 126,026,156 91,683,171 89,235,419 73,916,496 72,730,796 89,620,724 Total governmental activities net assets 6 15,144,804
7 03,825,328 784,234,972 833,929,934 910,633,909 768,727,950 757,075,788 7 57,487,594 754,308,817 767,733,036 Business-type activities: Invested in capital assets, net of related debt
7,156,534 6,217,348 7,423,479
6,540,514 5,658,433 1 50,004,170 1 48,237,562 1 52,384,420 1 46,550,585 1 40,248,319 Restricted ----------Unrestricted 362,007 381,697 580,735 500,299 335,824 55,294,988 64,860,578
74,385,651 80,214,208 86,521,327 Total business-type activities net assets 7,518,541 6,599,045 8,004,214 7,040,813 5,994,257 205,299,158 213,098,140 2 26,770,071 226,764,793 226,769,646
Primary government: Invested in capital assets, net of related debt 4 63,253,491 5 43,934,346 6 07,741,453 6 68,770,555 7 20,749,271 7 71,882,289 7 72,176,077 7 86,762,262 7 80,959,970
7 95,431,046 Restricted 55,203,919 55,283,141 72,468,247 75,916,972 69,516,915 55,166,660 43,901,854 49,193,256 47,168,636 22,929,585 Unrestricted 1 04,205,935 1 11,206,886 112,029,486
96,283,220 126,361,980 146,978,159 154,095,997 1 48,302,147 152,945,004 176,142,051 Total primary government net assets $ 622,663,345 $ 710,424,373 $ 792,239,186 $ 840,970,747 $ 916,628,166
$ 974,027,108 $ 970,173,928 $ 984,257,665 $ 981,073,610 $ 994,502,682 CITY OF CHULA VISTA Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) The City of Chula
Vista implemented GASB 34 for the fiscal year ended June 30, 2002. Sewer funds were converted to an enterprise fund in fiscal year 2008. Fiscal Year 152
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: Governmental activities: General government $ 36,112,144 $ 37,542,162 $ 42,591,851 $ 53,566,425 $ 45,249,650 $ 51,609,403
$ 49,216,220 $ 51,136,412 $ 46,457,112 $ 22,508,977 Public safety 46,795,935 54,974,182 63,368,815 72,887,220 77,136,782 78,633,467 76,097,546 74,008,767 75,664,246 75,931,086 Public
works 60,981,126 71,482,668 79,723,824 102,122,564 103,117,608 86,410,082 72,509,779 69,524,903 71,857,158 76,458,061 Parks and recreation 7,213,329 5,854,495 7,757,251 8,085,160 9,353,280
9,650,399 9,805,893 7,849,907 6,995,489 7,310,312 Library 8,110,316 8,845,277 8,890,126 10,412,973 10,320,817 8,532,621 7,617,286 4,826,602 4,509,999 4,185,624 Transit ---------63,021
Interest on long-term debt 9,322,463 12,827,332 12,656,986 12,263,808 12,032,833 13,656,534 13,064,138 11,217,753 11,538,707 8,904,275 Total governmental activities expenses 168,535,313
191,526,116 214,988,853 259,338,150 257,210,970 248,492,506 228,310,862 218,564,344 217,022,711 195,361,356 Business-type activities: Transit 7,797,769 7,257,722 7,475,184 7,447,393
7,330,560 8,301,081 8,147,424 7,571,898 7,075,998 7,050,673 Bayfront Trolley Station 7 9,593 8 5,567 9 8,900 8 6,595 103,691 98,406 9 8,800 9 4,802 9 1,788 9 1,942 Sewer funds -----30,323,015
23,528,217 29,240,616 30,245,584 30,524,851 Sewer DIFs -----203,500 200,660 126,019 123,629 129,351 Development Services Fund ---------4,730,599 Interest on long-term debt -----62,927
----Total business-type activities expenses 7,877,362 7,343,289 7,574,084 7,533,988 7,434,251 38,988,929 31,975,101 37,033,335 37,536,999 42,527,416 Total primary government expenses
176,412,675 198,869,405 222,562,937 266,872,138 264,645,221 287,481,435 260,285,963 255,597,679 254,559,710 237,888,772 Program revenues: Governmental activities: Charges for services:
General government 29,530,624 25,937,307 23,523,277 33,955,790 45,255,716 38,563,085 35,959,181 32,419,505 29,785,079 5,955,849 Public safety 5,003,310 9,991,565 9,555,756 11,598,587
7,311,407 8,148,817 7,954,060 8,833,813 7,989,893 8,658,579 Public works 34,193,401 46,862,521 40,020,387 52,749,415 45,520,978 23,112,265 25,793,234 28,761,170 33,378,070 32,767,261
Parks and recreation 1,534,116 25,000,748 15,702,515 26,935,981 19,106,017 11,881,147 2,776,032 2,559,668 3,599,653 3,051,842 Library 603,136 2,751,059 2,220,368 2,693,087 818,285 561,948
326,116 505,044 967,908 840,258 Operating grants and contributions 23,272,659 17,426,744 22,226,690 19,464,389 16,646,713 34,498,639 18,957,467 17,984,120 31,976,818 21,780,868 Capital
grants and contributions 2,190,909 1,783,068 79,419,189 57,074,381 85,608,765 50,632,109 16,754,583 23,711,994 4,781,625 4,283,855 Total governmental activities program revenues 96,328,155
129,753,012 192,668,182 204,471,630 220,267,881 167,398,010 108,520,673 114,775,314 112,479,046 77,338,512 Business-type activities: Charges for services: Transit 2,319,322 2,525,349
2,425,531 2,526,487 2,433,008 1,660,821 3,679,761 3,335,334 2,534,385 2,671,538 Sewer funds -----29,138,449 29,138,449 31,046,180 36,284,081 32,257,256 32,571,135 Sewer DIFs -----539,136
232,430 166,303 443,599 174,667 Development Services Fund ---------4,174,657 Operating grants and contributions 3,610,307 3,805,056 4,231,445 --5,378,518 3,390,228 3,357,566 3,431,988
3,524,426 Capital grants and contributions --1,971,311 -------Total business-type activities program revenues 5,929,629 6,330,405 8,628,287 2,526,487 2,433,008 36,716,924 38,348,599
43,143,284 38,667,228 43,116,423 Total primary government program revenues 102,257,784 136,083,417 201,296,469 206,998,117 222,700,889 204,114,934 146,869,272 157,918,598 151,146,274
120,454,935 Net revenues (expenses): Governmental activities ( 72,207,158) ( 61,773,104) ( 22,320,671) ( 54,866,520) ( 36,943,089) ( 81,094,496) (119,790,189) (103,789,030) (104,543,665)
(118,022,844) Business-type activities ( 1,947,733) ( 1,012,884) 1,054,203 ( 5,007,501) ( 5,001,243) ( 2,272,005) 6,373,498 6,109,949 1,130,229 589,007 Total net revenues (expenses)
( 74,154,891) ( 62,785,988) ( 21,266,468) ( 59,874,021) ( 41,944,332) ( 83,366,501) (113,416,691) ( 97,679,081) (103,413,436) (117,433,837) General revenues and other changes in net
assets: Governmental activities: Taxes: Property taxes 22,472,649 26,674,527 27,074,211 32,597,672 38,882,122 43,388,023 43,319,156 41,798,577 39,437,025 49,721,604 Sales tax 19,612,779
21,421,090 23,600,000 30,915,515 32,817,351 29,062,355 26,263,317 23,674,601 26,702,443 27,275,753 Other taxes 14,844,449 25,826,828 23,373,749 41,578,824 21,400,961 21,922,357 21,643,366
21,927,677 17,485,387 16,431,529 Investment income 14,372,650 5,651,048 11,678,930 10,195,710 13,386,872 8,663,014 12,676,922 5,744,616 9,108,662 3,615,266 Other general revenues 155,683,692
68,050,147 18,828,693 4,256,385 7,137,140 8,343,946 355,175 7,581,794 5,193,653 1,530,568 Transfers 4 5,626 4 2,876 3 4,900 122,588 2 2,618 5,594,536 3,880,091 3,473,571 3,437,718 4,195,190
Total general revenues and transfers 227,031,845 147,666,516 104,590,483 119,666,694 113,647,064 116,974,231 108,138,027 104,200,836 101,364,888 102,769,910 Extraordinary gain ---------28,677,153
Total governmental activities 227,031,845 147,666,516 104,590,483 119,666,694 113,647,064 116,974,231 108,138,027 104,200,836 101,364,888 131,447,063 Business-type activities: Investment
income 118,056 20,715 5 6,485 7 8,605 167,734 6,740,155 2,090,311 1,785,660 1,288,478 1,273,689 Miscellaneous 1 7,907 115,549 329,381 4,088,083 3,809,571 670,170 3,215,264 9,249,893
1,013,733 2,337,347 Transfers (45,626) (42,876) (34,900) (122,588) (22,618) ( 5,594,536) ( 3,880,091) ( 3,473,571) ( 3,437,718) ( 4,195,190) Total business-type activities 9 0,337 9
3,388 350,966 4,044,100 3,954,687 1,815,789 1,425,484 7,561,982 ( 1,135,507) (584,154) Total primary government 227,122,182 147,759,904 104,941,449 123,710,794 117,601,751 118,790,020
109,563,511 111,762,818 100,229,381 130,862,909 Changes in net assets Governmental activities 154,824,687 85,893,412 82,269,812 64,800,174 76,703,975 35,879,735 ( 11,652,162) 411,806
( 3,178,777) 13,424,219 Business-type activities ( 1,857,396) (919,496) 1,405,169 (963,401) ( 1,046,556) (456,216) 7,798,982 13,671,931 (5,278) 4 ,853 Total primary government $ 152,967,291
$ 84,973,916 $ 83,674,981 $ 63,836,773 $ 75,657,419 $ 35,423,519 $ (3,853,180) $ 14,083,737 $ ( 3,184,055) $ 13,429,072 The City of Chula Vista implemented GASB 34 for the fiscal year
ended June 30, 2002. Sewer funds were converted to an enterprise fund in fiscal year 2008. Fiscal Year (accrual basis of accounting) Last Ten Fiscal Years Changes in Net Assets CITY
OF CHULA VISTA 153
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General fund: Nonspendable $ -$ -$ -$ -$ -$ -$ -$ -$ 11,258,150 $ 8 ,799,026 Restricted --------127,883 -Committed --------7,178,838
4,375,207 Assigned --------5,298,536 2,895,545 Unassigned --------1 1,876,992 1 1,969,280 Reserved 2 1,358,332 2 0,096,238 2 2,214,965 2 1,771,010 2 2,249,346 2 2,258,951 2 0,732,416
1 9,478,496 --Unreserved 2 8,694,894 2 5,191,333 1 9,287,213 1 8,114,943 1 3,252,911 1 1,817,191 1 2,417,105 1 3,703,304 --Total general fund 5 0,053,226 4 5,287,571 4 1,502,178 3 9,885,953
3 5,502,257 3 4,076,142 3 3,149,521 3 3,181,800 3 5,740,399 2 8,039,058 All other governmental funds: Nonspendable --------2 1,669,849 3 0,763,746 Restricted --------109,944,736 8 3,439,558
Committed --------1 7,370,613 1 2,842,477 Assigned --------(2,402,991) -Unassigned --------(59,092,342) (37,420,734) Reserved 106,439,367 9 8,145,262 9 8,226,224 6 4,859,111 6 5,710,718
2 6,305,432 3 3,197,517 6 1,852,404 --Unreserved, reported in: Debt service funds (28,318,787) (39,678,141) (40,817,038) (42,861,708) (44,404,278) (43,496,817) (46,692,600) (56,280,718)
--Capital projects funds 7 3,977,363 8 1,760,701 9 4,472,902 113,659,937 9 2,093,271 7 8,496,664 7 0,791,397 5 8,595,303 --Special revenue funds 3 8,423,739 4 1,395,612 4 8,987,258 5
7,893,321 6 4,843,684 4 8,690,364 4 2,565,836 2 7,334,131 --Total all other governmental funds $ 190,521,682 $ 181,623,434 $ 200,869,346 $ 193,550,661 $ 178,243,395 $ 109,995,643 $ 99,862,150
$ 91,501,120 $ 87,489,865 $ 8 9,625,047 Fiscal Year The City of Chula Vista implemented GASB 34 for the fiscal year ended June 30, 2002. Sewer funds were converted to an enterprise fund
in fiscal year 2008. CITY OF CHULA VISTA Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 154
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Revenues: Taxes $ 5 8,729,882 $ 7 2,842,579 $ 8 5,192,455 $ 86,509,678 $ 93,100,434 $103,543,735 $ 91,770,846 $ 87,263,934 $ 88,878,664
$ 96,868,086 Licenses and permits 4 ,596,975 5 ,533,743 3 ,946,733 3,441,613 2,870,424 2,767,850 2,041,721 2,274,964 2,887,150 1,253,806 Fines and forfeitures 1 ,507,652 1 ,568,585 1
,398,146 1,724,862 2,226,822 2,671,545 3,317,666 3,124,021 2,348,565 2,065,246 Investment income 1 3,874,221 5 ,113,371 1 0,199,902 7,946,878 13,570,315 10,890,132 10,103,986 6,299,595
8,716,624 5,077,920 Developer fees 2 5,613,027 4 4,032,302 2 2,625,331 50,551,528 24,058,397 17,318,134 9,252,547 11,700,991 16,498,744 13,966,814 Intergovernmental 3 1,868,289 2 4,600,541
4 3,647,460 41,847,938 36,107,073 43,962,835 39,497,983 41,965,596 48,177,707 21,861,011 Charges for services 3 8,994,778 4 4,940,117 4 1,850,292 43,823,886 52,694,312 15,679,753 12,435,955
11,877,763 11,743,505 20,907,330 Other 2 1,862,659 2 5,318,879 2 4,231,228 30,012,125 23,567,613 30,427,119 29,404,221 31,918,308 28,163,311 13,382,050 Total revenues 1 97,047,483 2
23,950,117 2 33,091,547 265,858,508 248,195,390 227,261,103 197,824,925 196,425,172 207,414,270 175,382,263 Expenditures Current: General government 3 5,884,084 3 8,239,086 4 6,054,981
49,628,483 46,904,990 49,596,883 43,640,514 45,966,934 39,701,396 23,833,011 Public safety 4 5,781,808 5 2,491,410 6 1,673,449 67,913,584 73,245,978 74,781,055 72,872,527 72,080,790
70,693,779 71,917,414 Public works 4 9,118,238 5 4,430,850 5 6,220,867 72,296,203 75,720,582 57,789,303 46,042,781 45,778,665 48,056,229 47,911,105 Parks and recreation 4 ,820,255 4
,824,714 5 ,369,192 6,210,040 7,503,259 6,869,089 6,969,924 5,255,812 4,030,767 4,215,643 Library 7 ,803,208 7 ,583,333 8 ,957,574 9,734,444 9,660,809 8,224,897 7,199,101 4,563,849 3,870,646
3,672,661 Capital outlay 6 6,522,243 5 6,039,237 6 1,134,157 72,988,853 36,472,182 29,525,186 19,305,564 27,628,148 34,215,021 16,182,888 Debt service: Principal retirement 7 ,046,207
1 3,362,073 4 ,936,247 6,054,618 30,892,802 7,884,493 7,686,525 7,301,362 7,911,995 8,423,156 Interest and fiscal charges 9 ,817,072 1 0,910,758 1 2,059,211 12,260,244 12,289,908 12,224,973
12,576,939 11,585,816 11,094,106 9,229,775 Bond issuance cost ----514,994 34,485 844,584 ---Total expenditures 2 26,793,115 2 37,881,461 2 56,405,678 297,086,469 293,205,504 246,930,364
217,138,459 220,161,376 219,573,939 185,385,653 Excess (deficiency) of revenues over (under) expenditures (29,745,632) (13,931,344) (23,314,131) (31,227,961) (45,010,114) (19,669,261)
(19,313,534) (23,736,204) (12,159,669) (10,003,390) Other financing sources (uses): Transfers in 4 3,317,265 2 6,894,272 8 4,773,947 55,698,112 53,900,545 26,104,914 50,502,425 61,296,934
56,989,583 33,900,786 Transfers out (43,178,867) (26,789,382) (84,678,601) (52,132,246) (53,835,509) (20,400,837) (46,589,803) (57,815,981) (53,551,865) (32,638,610) Proceeds from long-term
debt --7 65,000 ---665,884 29,355,000 42,286 3,963,104 Proceeds from bond sale 1 1,320,000 --3 7,240,000 21,255,000 25,760,000 10,264,224 21,625,000 207,372 --Payment to escrow agent
trust ------(15,110,000) (16,710,000) --Bond premium/(bond discount) --3 5,254 -(505,884) -(579,161) (925,872) --Proceeds from sale of capital assets -1 62,551 6 39,050 -----9,630,000
-Total other financing . . sources (uses) 1 1,458,398 2 67,441 3 8,774,650 24,820,866 25,319,152 15,968,301 10,514,345 15,407,453 13,110,004 5,225,280 Extraordinary item: Forgiveness
of debt (5,635,850) ---------Loss on dissolution of the Chula Vista Redevelopment Agency ---------(3,191,040) Total extraordinary item (5,635,850) --------(3,191,040) Net change in fund
balances $ (23,923,084) $ (13,663,903) $ 1 5,460,519 $ (6,407,095) $ (19,690,962) $ (3,700,960) $ (8,799,189) $ (8,328,751) $ 950,335 $ (7,969,150) Debt service as a percentage of noncapital
expenditures 10.3% 12.9% 8.4% 10.1% 16.7% 8.8% 10.2% 9.6% 9.4% 10.1% Fiscal Year The City of Chula Vista implemented GASB 34 for the fiscal year ended June 30, 2002. Sewer funds were
converted to an enterprise fund in fiscal year 2008. CITY OF CHULA VISTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 155
Fiscal Year Taxable Taxable Total Ended Less: Assessed Less: Assessed Direct Tax June 30 Secured Unsecured Exemptions Value 1 Secured Unsecured Exemptions 2 Value Rate 2003 1 1,489,756,820
3 59,527,956 (303,902,966) 11,545,381,810 5 78,332,766 9 2,744,520 671,077,286 0.144% 2004 1 3,186,377,450 3 87,657,132 (349,913,333) 13,224,121,249 5 48,945,714 8 4,234,008 633,179,722
0.144% 2005 1 5,390,029,359 4 02,366,184 (426,140,493) 15,366,255,050 6 17,179,700 8 2,759,507 699,939,207 0.144% 2006 1 8,481,902,606 4 42,863,514 (452,332,435) 18,472,433,685 7 35,529,147
8 2,456,175 817,985,322 0.144% 2007 2 1,254,352,374 5 82,720,155 (496,479,594) 21,340,592,935 8 46,124,571 2 02,760,284 1,048,884,855 0.144% 2008 2 4,381,647,068 5 44,113,016 (567,257,524)
24,358,502,560 1 ,058,205,677 9 4,614,761 1,152,820,438 0.144% 2009 2 4,861,548,900 5 65,347,815 (603,500,966) 24,823,395,749 1 ,061,746,125 1 05,702,620 1,167,448,745 0.144% 2010 2
2,168,954,872 6 10,945,054 (682,909,923) 22,096,990,003 1 ,094,004,250 1 31,944,885 1,225,949,135 0.144% 2011 2 1,341,397,693 5 77,214,653 (683,167,117) 21,235,445,229 1 ,042,561,908
1 30,433,921 1,172,995,829 0.144% 2012 2 1,280,088,193 6 13,792,400 (739,917,158) 21,153,963,435 1 ,054,772,168 1 57,330,744 1,212,102,912 0.144% 1 Includes redevelopment incremental
valuation 2 Redevelopment Agency exemptions are included in City exemption data as they are not reported separately NOTE: Source: County of San Diego Property Tax Services In 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 of 2%). With few exceptions, property is only re-assessed at the time that it
is sold to a new owner. At that point, the new assessed value is reassessed at the 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. CITY OF CHULA VISTA City Redevelopment Agency Assessed
Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years 156
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 City Direct Rates: City basic rate 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 0.026 0.027 0.028 0.027 0.027 0.020 0.018 0.025 0.026 0.026 District Bonds Sweetwater Union High School 0.022 0 .020 0.018 0.023 0.020 0.047 0.046 0.056 0.055 0.061 District Bonds
Southwestern Community 0.013 0.007 0 .013 0.015 0.014 0.013 0.013 0.034 0.036 0.033 College Bonds MWD D/S Remainder of 0.007 0.006 0.006 0.005 0.005 0.005 0.0043 0.0043 0.0037 0.0037
SDCWA 15019999 CWA South Bay Irrigation 0.001 0.001 --------Debt Service County of San Diego** 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Total Overlapping Rates 1.069
1.061 1.065 1.070 1.066 1.084 1.081 1.120 1.121 1.124 Breakdown of the County of San Diego 1.00 Rate:** County General Gen Elem Chula Vista High Sweetwater Union Southwestern Community
College County School Service County School Service -Capital Outlay Childrens Institutions Tuition Regional Occupational Centers Chula Vista Project (19/84601) Chula Vista Project (19/84602)
Educational Revenue Augmentation Fund Chula Vista City South Bay Irrigation CWA South Bay Irrigation San Diego Unified Port Total NOTE: Source: County of San Diego Property Tax Services
0.18823068 0.00000000 0.00757296 0.00000000 In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared 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 and other debt service. Overlapping rates may vary by tax rate area. The data listed in this table is representative of tax rate area 001001. Last Ten Fiscal Years CITY
OF CHULA VISTA Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) 0.15920355 0.29103670 1.00000000 0.00019695 0.00039390 0.14676995 0.14375071 0.05072194 0.00376946
0.00190859 0.00161434 0.00483027 157
Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value JPB Development $ 253,593,675
1 1.20% -San Diego Expressway Limited 189,100,000 2 0.89% -Rohr Inc 181,306,637 3 0.86% 208,305,662 1 1.80% GGP-Otay Ranch LP 176,655,960 4 0.84% -Equity Residential 119,057,451 5 0.56%
-Regulo Place Apartments Investor 100,505,618 6 0.48% -Chula Vista Center LLC 72,673,458 7 0.34% 61,952,493 5 0.54% Shea Homes LTD Partnership 70,332,644 8 0.33% -Camden USA Inc 62,974,684
9 0.30% -Corky McMillin Homes 56,546,264 10 0.27% -Duke Energy South Bay LLC --101,001,287 2 0.87% Bre Properties Inc --65,796,351 3 0.57% CA State Teachers --62,000,000 4 0.54% Gateway
Town Center --54,250,694 6 0.47% Scripps Health --54,078,377 7 0.47% Eastlake Co LLC --49,871,811 8 0.43% Price Reit Inc --44,419,751 9 0.38% TCR Sunbow Limited --37,349,862 10 0.32%
$ 1,282,746,391 6.06% 739,026,288 6.40% The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: MuniServices, LLC County of San Diego
Property Tax Services CITY OF CHULA VISTA 2012 2003 Current Year and Nine Years Ago Principal Property Tax Payers 158
CITY OF CHULA VISTA Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Taxes Levied Collections in Year Ended for the Percent Subsequent Percent June 30 Fiscal Year 1 Amount
of Levy Years 2 Amount of Levy 2003 1 4,293,880 1 4,061,319 98.37% 1 12,257 1 4,173,576 99.16% 2004 1 6,200,005 1 5,959,723 98.52% 1 16,784 1 6,076,507 99.24% 2005 1 8,652,193 1 8,324,623
98.24% 1 06,497 1 8,431,120 98.81% 2006 2 2,096,604 2 1,617,022 97.83% 1 62,806 2 1,779,829 98.57% 2007 2 5,159,692 2 4,409,063 97.02% 2 09,442 2 4,618,505 97.85% 2008 2 8,641,734 2
7,506,299 96.04% 4 60,875 2 7,967,173 97.64% 2009 2 9,304,771 2 8,147,698 96.05% 7 65,703 2 8,913,402 98.66% 2010 2 6,246,478 2 5,313,706 96.45% 5 38,429 2 5,852,135 98.50% 2011 2 5,325,126
2 4,773,002 97.82% 1 34,325 2 4,907,328 98.35% 2012 2 5,373,780 2 4,669,632 97.22% (35,474) 2 4,634,158 97.09% 1 Levy amounts do not include supplemental taxes. 2 Collection amounts
represent delinquencies collected for all prior years during the current tax year. Total delinquent collections are reduced by any refunds processed from prior year tax collections.
Source: County of San Diego Property Tax Services Collected within the Fiscal Year of Levy Total Collections to Date 159
Fiscal Year Pension Tax Total Percentage Debt Ended Obligation Allocation Certificates of Governmental of Personal Per June 30 Bonds Bonds Loans Participation Activities Income 1 Capita
1 2003 14,799,025 42,750,000 7,462,505 1 04,225,000 1 69,236,530 2.19% 882 2004 13,985,870 42,125,000 7,315,971 9 2,920,000 1 56,346,841 1.93% 774 2005 12,991,962 41,240,000 8,193,481
1 27,599,255 1 90,024,698 2.18% 901 2006 11,795,000 40,295,000 9,811,786 1 44,240,000 2 06,141,786 2.26% 937 2007 10,415,000 41,275,000 9,573,012 1 39,845,000 2 01,108,012 2.15% 887
2008 8,820,000 40,185,000 19,304,342 1 35,045,000 2 03,354,342 2.12% 878 2009 7,000,000 45,830,000 18,736,012 130,580,000 2 02,146,012 2.05% 857 2010 4,980,000 44,925,000 17,686,144
139,700,000 2 07,291,144 2.18% 866 2011 2,655,000 43,985,000 16,876,860 136,060,000 1 99,576,860 2.00% 818 2012 -43,005,000 19,673,344 132,290,000 1 94,968,344 2.00% 793 1 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.
Governmental Activities CITY OF CHULA VISTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years 160
Fiscal Year Pension Tax Percent of Ended Obligation Allocation Assessed Per June 30 Bonds Bonds Total Value 1 Capita 2003 1 4,799 42,750 57,549 0.50% 300 2004 1 3,986 42,125 56,111 0.42%
278 2005 1 2,992 41,240 54,232 0.35% 257 2006 1 1,795 40,295 52,090 0.28% 237 2007 1 0,415 41,275 51,690 0.24% 228 2008 8,820 4 0,185 49,005 0.20% 212 2009 7,000 4 5,830 52,830 0.21%
224 2010 4,980 4 4,925 49,905 0.23% 208 2011 2,655 4 3,985 46,640 0.22% 191 2012 -4 3,005 43,005 0.20% 175 1 Assessed value has been used because the actual value of taxable property
is not readily available in the State of California. Outstanding General Bonded Debt CITY OF CHULA VISTA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands,
except Per Capita) General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 161
2011-12 Assessed Valuation: $ 21,153,963,435 Redevelopment Incremental Valuation: 1,212,102,912 Adjusted Assessed Valuation: $ 19,941,860,523 Total Debt City's Share of OVERLAPPING TAX
AND ASSESSMENT DEBT: 6/30/12 % Applicable (1) Debt 6/30/12 Metropolitan Water District $ 196,545,000 1.104% $ 2,169,857 Otay Municipal Water District, I.D. No. 27 6,755,000 99.995 6,754,662
Southwestern Community College District 240,489,345 52.935 127,303,035 Sweetwater Union High School District 334,479,415 63.969 213,963,137 Chula Vista City School District 70,265,000
86.590 60,842,464 City of Chula Vista Community Facilities Districts 215,740,000 100. 215,740,000 Sweetwater Union High School District Community Facilities Districts 173,576,177 3.978-100.
162,241,907 Chula Vista City School District Community Facilities Districts 5,580,000 100. 5,580,000 City of Chula Vista 1915 Act Bonds 26,067,498 100. 26,067,498 TOTAL OVERLAPPING TAX
AND ASSESSMENT DEBT $ 8 20,662,560 Ratios to 2011-12 Assessed Valuation: Total Overlapping Tax and Assessment Debt…………………..3.88% DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Diego County
General Fund Obligations $ 395,115,000 5.786% $ 22,861,354 San Diego County Pension Obligations 787,112,618 5.786 45,542,336 San Diego County Superintendent of Schools Obligations 18,750,000
5.786 1,084,875 Southwestern Community College District Certificates of Participation 1,330,000 52.935 1 704,036 Sweetwater Union High School District Certificates of Participation 11,325,000
63.969 7,244,489 Chula Vista City School District Certificates of Participation 148,925,000 86.590 128,954,158 City of Chula Vista Certificates of Participation 132,290,000 100. 132,290,000
Otay Municipal Water District Certificates of Participation 58,245,000 62.560 36,438,072 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 375,119,320 Less: Otay Municipal Water
District Certificates of Participation 36,438,072 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 338,681,248 TOTAL DIRECT DEBT $ 132,290,000 TOTAL GROSS OVERLAPPING DEBT $ 1,063,491,880
TOTAL NET OVERLAPPING DEBT $ 1,027,053,808 GROSS COMBINED TOTAL DEBT $ 1,195,781,880 NET COMBINED TOTAL DEBT $ 1,159,343,808 (1) Percentage of overlapping agency'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-bonded capital lease obligations.
Qualified Zone Academy Bonds are included based on principal due at maturity. Ratios to Adjusted Assessed Valuation: Total Direct Debt ($132,290,000)……………...…….……………. 0.66% Gross Combined
Total Debt……...…………………………………… 6.00% Net Combined Total Debt…………....……...………………………… 5.81% STATE SCHOOL BUILDING AID REPAYABLE AS OF 06/30/12: $0 Source: California Municipal Statistics,
Inc. CITY OF CHULA VISTA Direct and Overlapping Debt June 30, 2012 162
2003 2004 2005 2006 2007 Assessed valuation $ 11,545,381,810 $ 13,224,121,249 $ 15,366,255,050 $ 18,472,433,685 $ 21,340,592,935 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed
valuation 2,886,345,453 3,306,030,312 3,841,563,763 4,618,108,421 5,335,148,234 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 432,951,818 495,904,547 576,234,564 692,716,263 800,272,235
Total net debt applicable to limit: Pension obligation bonds 14,799,025 13,985,870 12,991,962 11,795,000 10,415,000 Legal debt margin $ 418,152,793 $ 481,918,677 $ 563,242,602 $ 680,921,263
$ 789,857,235 Total debt applicable to the limit as a percentage of debt limit 3.4% 2.8% 2.3% 1.7% 1.3% Source: City Finance Department County of San Diego Property Tax Services The
Government Code of the State of California provides for a legal debt limit of 15% 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 governments located within the State. Fiscal Year CITY OF CHULA VISTA Last Ten Fiscal Years Legal Debt Margin Information
163
2008 2009 2010 2011 2012 Assessed valuation $ 24,358,502,560 $ 24,823,395,749 $ 22,096,990,003 $ 21,235,445,229 $ 21,153,963,435 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed
valuation 6,089,625,640 6,205,848,937 5,524,247,501 5,308,861,307 5,288,490,859 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 913,443,846 930,877,341 828,637,125 796,329,196 793,273,629
Total net debt applicable to limit: Pension obligation bonds 8,820,000 7,000,000 4,980,000 2,655,000 -Legal debt margin $ 904,623,846 $ 923,877,341 $ 823,657,125 $ 793,674,196 $ 793,273,629
Total debt applicable to the limit as a percentage of debt limit 1.0% 0.8% 0.6% 0.3% 0.0% Source: City Finance Department County of San Diego Property Tax Services Last Ten Fiscal Years
The Government Code of the State of California provides for a legal debt limit of 15% 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 governments located within the State. Fiscal Year CITY OF CHULA VISTA Legal Debt
Margin Information, Continued 164
Fiscal Year Ended Tax June 30 Increment Principal Interest Coverage 2003 7,822,428 580,000 2,943,058 2.22 2004 10,317,573 625,000 2,902,851 2.92 2005 8,939,444 885,000 2,855,288 2.39
2006 10,404,880 945,000 2,797,726 2.78 2007 11,935,618 995,000 2,735,150 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 2012 10,931,615 980,000 1,992,565 3.68 Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements. Debt Service Tax Allocation Bonds CITY OF CHULA VISTA Pledged-Revenue Coverage Last Ten Fiscal Years 165
Pct. of S.D. Pct. Change Avg. Total County from Previous Median Household Year Population Population Year Age Size 2002 191,922 7.0% 5.6% 33.3 3.00 2003 202,094 7.0% 5.3% 33.5 3.04 2004
211,018 7.0% 4.4% 33.7 3.07 2005 219,939 7.0% 4.2% 34.0 3.09 2006 226,838 8.0% 3.1% 33.9 3.12 2007 231,597 8.0% 2.1% 33.9 3.13 2008 235,767 8.0% 1.8% 33.8 3.16 2009 239,369 8.0% 1.5%
33.9 3.20 2010 243,916 8.0% 1.9% 33.5 3.21 2011 245,987 8.0% 0.8% 34.1 3.21 Source: SANDAG, Current Estimates (Oct. 2012) Notes: Dollar values are inflation-adjusted to 2011 dollars.
Year-to-year variation for socio-economic data (poverty, education, unemployment) is the result of both actual change and sampling error. CITY OF CHULA VISTA Demographic and Economic
Statistics Last Ten Calendar Years 166
Per % % Bachelor's Capita High School Degree Pct. Below Unemployment Personal Income Personal Year Graduate or Higher Poverty Rate (In Thousands) Income 2002 n/a n/a n/a 6.1% 7,745,300
40,400 2003 n/a n/a n/a 6.1% 8,097,600 40,100 2004 n/a n/a n/a 5.6% 8,707,200 41,300 2005 78.5% 24.7% 9.1% 5.1% 9,103,400 41,400 2006 81.7% 24.1% 11.0% 4.7% 9,370,300 41,300 2007 79.6%
25.4% 9.1% 5.3% 9,608,800 41,500 2008 81.0% 25.7% 8.5% 7.0% 9,848,900 41,800 2009 80.0% 25.5% 11.5% 11.2% 9,497,600 39,700 2010 83.0% 29.1% 8.4% 12.3% 9,960,800 40,800 2011 82.2% 25.7%
11.6% 11.6% 9,758,900 39,700 Source: SANDAG, Current Estimates (Oct. 2012) Notes: Dollar values are inflation-adjusted to 2011 dollars. CITY OF CHULA VISTA Demographic and Economic Statistics,
Continued Last Ten Calendar Years Year-to-year variation for socio-economic data (poverty, education, unemployment) is the result of both actual change and sampling error. Educational
Attainment 167
Percent of Percent of Number of Total Number of Total Employer 2 Employees Employment Employees Employment Sweetwater Union High School District 3,911 7.52% n/a n/a Chula Vista Elementary
School District 2,727 5.24% n/a n/a Rohr Inc/Goodrich Aerospace 2,167 4.17% n/a n/a Sharp Chula Vista Medical Center 1,735 3.34% n/a n/a Southwestern Community College 1,716 3.30% n/a
n/a Wal-Mart 1,239 2.38% n/a n/a Scripps Mercy Hospital Chula Vista 1,109 2.13% n/a n/a City of Chula Vista 1,106 2.13% n/a n/a Costco 538 1.03% n/a n/a 24 Hour Fitness 4 75 0.91% n/a
n/a 1 2003 data is not available. 2 Sharp Rees-Stealy falls within the top 10 employers category; however, the actual number of employees is unavailable. "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 Department Southwestern Community College Human Resources Department 2012 2003 1 CITY OF
CHULA VISTA Principal Employers Current Year and Nine Years Ago 168
Function 2003 2004 1 2005 2006 2007 2008 2009 2010 2011 2012 General government 225 465 193 380 324 302 272 273 258 269 Public safety 413 480 528 518 548 504 476 468 448 432 Public works/engr
295 249 335 198 237 188 181 175 155 159 Parks and recreation 162 -175 230 242 223 169 164 112 115 Library 216 182 217 252 227 196 189 73 41 76 Planning and building 92 99 91 97 83 68
63 62 54 55 Total 1,403 1,475 1,539 1,675 1,661 1,481 1,350 1,215 1,068 1,106 1 Parks and Recreation employee count included in General Government count Source: City Finance Department
CITY OF CHULA VISTA Full-time and Part-time City Employees Last Ten Fiscal Years Full-Time and Part-time Employees as of June 30 by Function 169
2003 2004 2005 2006 2007 Police: Citizen-initiated calls for service 71,268 71,000 74,106 73,075 74,277 Fire: Number of emergency calls 1 8,088 8,420 9,907 n/a 14,853 Inspections n/a
n/a n/a 1,780 2,119 Public works: Street resurfacing/maintenance 2 218,632 252,789 142,864 230,598 157,903 (square feet) Parks and recreation: Number of recreation classes 2,261 1,819
1,709 1,821 2,231 Number of facility rentals 897 402 680 610 855 Library: Circulation 1,308,148 1,308,709 1,414,295 1,467,799 1,344,115 Attendance 1,044,755 1,070,560 1,121,119 1,170,168
1,148,024 Sewer: New connections 2,652 2,480 1,934 488 529 Average daily sewage treatment 16.3 15.8 17.0 16.9 17.0 (millions of gallons) 1 Figure for 2005 represents the calendar year
instead of fiscal year. 2 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 Fiscal Year CITY
OF CHULA VISTA Operating Indicators Last Ten Fiscal Years by Function 170
2008 2009 2010 2011 2012 Police: Citizen-initiated calls for service 74,192 70,051 68,601 65,186 64,885 Fire: Number of emergency calls 1 14,548 14,983 11,490 11,319 12,863 Inspections
n/a 3,676 2,898 2,389 2,205 Public works: Street resurfacing/maintenance 2 77,507 108,745 84,276 99,978 55,398 (square feet) Parks and recreation: Number of recreation classes 2,575
2,149 2,301 2,008 1,914 Number of facility rentals 1,217 969 1,175 1,524 2,028 Library: Circulation 1,265,720 1,160,139 985,157 952,847 982,688 Attendance 1,296,245 820,243 605,979 614,841
722,310 Sewer: New connections 165 468 469 287 646 Average daily sewage treatment 16.8 16.5 16.2 16.3 15.9 (millions of gallons) 1 Figure for 2005 represents the calendar year instead
of fiscal year. 2 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 Fiscal Year CITY OF CHULA
VISTA Operating Indicators by Function, Continued Last Ten Fiscal Years 171
2003 2004 2005 2006 2007 Police: Stations 1 1 1 1 1 Fire: Fire stations 7 7 8 9 9 Public works: Streets (miles) 358.8 370.9 373.8 387.3 403.3 Streetlights 7,547 8,047 8,368 8,501 8,953
Traffic signals 170 188 199 220 238 Parks and recreation: Parks (acreage) 1 382.1 394.6 406.4 482.8 504.1 Recreation facilities 9 9 9 12 12 Library: Libraries 2 2 2 2 2 Sewer: Sewer
pipes (miles) 428.2 448.1 455.8 471.3 484.2 Storm drains (miles) 182.3 191.9 219.9 228.6 234.0 Maximum daily treatment capacity 19.8 19.8 20.9 20.9 20.9 (millions of gallons) 1 Includes
community, neighborhood, special purpose, mini, and urban parks. Source: City of Chula Vista by Function Fiscal Year CITY OF CHULA VISTA Capital Asset Statistics Last Ten Fiscal Years
172
2008 2009 2010 2011 2012 Police: Stations 1 1 1 1 1 Fire: Fire stations 9 9 9 9 9 Public works: Streets (miles) 416.9 421.0 429.5 429.5 429.5 Streetlights 9,013 9,026 9,052 9,054 9,066
Traffic signals 253 267 267 268 269 Parks and recreation: Parks (acreage) 1 504.1 504.1 504.1 523.1 530.7 Recreation facilities 12 11 11 11 11 Library: Libraries 2 2 2 2 3 Sewer: Sewer
pipes (miles) 493.8 496.5 505.0 505.0 505.0 Storm drains (miles) 244.7 245.3 248.9 248.9 249.0 Maximum daily treatment capacity 20.9 20.9 20.9 20.9 20.9 (millions of gallons) 1 Includes
community, neighborhood, special purpose, mini, and urban parks. Source: City of Chula Vista Fiscal Year CITY OF CHULA VISTA Capital Asset Statistics by Function, Continued Last Ten
Fiscal Years 173
174
6265 Greenwich Drive Suite 220 San Diego, California 92122 Phone: (858) 242-5100 Fax: (858) 242-5150 www.pm-llp.com 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 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 businesstype 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, 2012, which collectively comprise the City’s basic financial,
and have issued our report thereon dated December 27, 2012. 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 Reporting Management
of the City is responsible for establishing and maintaining effective internal control over financial reporting. 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 effectiveness’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.
To the Honorable Mayor and Members of the City Council of the City of Chula Vista Chula Vista, California Page Two 176 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. 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 anyone other than these specified parties. However, this report is a matter of public record and
its distribution is not limited. San Diego, California December 27, 2012